AUSTIN, Texas, May 15, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (NASDAQ:FTCI), a leading provider of solar tracker systems, software, and engineering services, announced new leadership appointments and an expanded sales leadership team designed to enhance customer experience and success while supporting global sales and strategic growth. The leadership appointments include: Patrick Cook, to Senior Vice President, Capital Markets and Business Development. Cook most recently served as FTC Solar's Chief Commer ...

3 Three Key Takeaways 2. Continued focus on advancing key initiatives to support growth and profitability 4 Recent Progress Bookings & Product Enhancements • Bookings remain healthy, POs ~$50m/mo • Improved customer engagement & enhanced product portfolio, first order for high-wind Pioneer • Contracted portion of backlog ~$485m May 10, 2024 First Quarter 2024 Earnings Results 2 Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains forward looking statements. These statements ...

Financial Performance - Total revenue for Q1 2024 was $12.6 million, a decrease of 69.2% compared to Q1 2023[4] - GAAP net loss for Q1 2024 was $8.8 million, or $0.07 per share, compared to a net loss of $11.8 million, or $0.11 per share in Q1 2023[8] - The company reported a net loss of $8,771,000 for the three months ended March 31, 2024, an improvement from a net loss of $11,762,000 in the same period of 2023, representing a 25.4% reduction in losses[22] - U.S. GAAP revenue decreased to $12,587,000 in Q1 2024, down 69.2% from $40,894,000 in Q1 2023[26] - Adjusted EBITDA loss for Q1 2024 was $10.7 million, compared to losses of $7.2 million in Q1 2023[8] - Adjusted EBITDA for Q1 2024 was a loss of $10,655,000, worsening from a loss of $7,152,000 in Q1 2023, reflecting increased operational challenges[27] - The company’s non-GAAP net loss per share for Q1 2024 was $(0.09), compared to $(0.07) in Q1 2023, indicating a worsening loss per share[27] Operational Metrics - Gross margin percentage for Q1 2024 was -16.7%, compared to 5.0% in the prior quarter[4] - Non-GAAP gross profit for Q1 2024 was a loss of $1,724,000, compared to a gross profit of $2,975,000 in Q1 2023, indicating a significant decline in profitability[26] - Non-GAAP operating expenses for Q1 2024 were $8.7 million, down from $10.1 million in the year-ago quarter[6] - Non-GAAP operating expenses decreased to $8,702,000 in Q1 2024 from $10,053,000 in Q1 2023, a reduction of 13.4%[26] - Stock-based compensation expenses were $1,639,000 in Q1 2024, down from $4,890,000 in Q1 2023, a decrease of 66.6%[26] Cash Flow and Assets - Cash and cash equivalents as of March 31, 2024, were $14.0 million, down from $25.2 million at the end of 2023[20] - Total assets decreased to $115.0 million as of March 31, 2024, from $123.1 million at the end of 2023[20] - Cash and cash equivalents at the end of the period were $15,937,000, down from $41,493,000 at the end of Q1 2023, a decrease of 61.7%[22] - The company experienced a net cash used in operations of $11,857,000 in Q1 2024, compared to $8,316,000 in Q1 2023, indicating increased cash outflow[22] Future Outlook - The company expects Q2 2024 revenue to be slightly up from Q1 2024, with a target of breakeven on an Adjusted EBITDA basis in Q3 2024[9] - The company aims to achieve quarterly profitability in 2024[7] - Total backlog now stands at approximately $1.8 billion[3] Investment Gains - The company recorded a gain from the disposal of an investment in an unconsolidated subsidiary amounting to $4,085,000 in Q1 2024, compared to a gain of $898,000 in Q1 2023[22]

AUSTIN, Texas, May 06, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (Nasdaq: FTCI), a leading provider of solar tracker systems, software, and engineering services, today announced it will report its first quarter financial results before market open on Friday, May 10, 2024. A conference call for members of the investment community will be held at 8:30 a.m. E.T. that same day, during which the Company will discuss its first quarter 2024 results, its outlook and other business items. This call will be webcast an ...

AUSTIN, Texas, May 06, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (NASDAQ:FTCI), a leading provider of solar tracker systems, software, and engineering services, today announced it will report its first quarter financial results before market open on Friday, May 10, 2024. A conference call for members of the investment community will be held at 8:30 a.m. E.T. that same day, during which the Company will discuss its first quarter 2024 results, its outlook and other business items. This call will be webcast and ...

Financial Performance - The company reported a net loss of $50.3 million for the year ended December 31, 2023, with an accumulated deficit of $299.1 million[79]. - During the three-year period ended December 31, 2023, the company used $240.0 million of cash to fund its operating activities, leaving $25.2 million in cash and cash equivalents at year-end[79]. - A $7.1 million credit loss provision was recognized in 2023 due to expectations of a specific customer being unable to fully satisfy payment obligations[93]. - The company recognized a loss of approximately $0.7 million for its equity share of the net operating loss of Alpha Steel during 2023[102]. - The company had $25.2 million in cash and cash equivalents as of December 31, 2023, with no outstanding debt[361]. Market Competition - The company faces significant competition in the solar tracker market, with competitors like Array Technologies, Inc. and Nextracker Inc. posing challenges due to their larger resources and market presence[82]. - The market for solar energy products is highly competitive, with low barriers to entry, leading to potential pricing pressures and revenue declines[82]. - The solar industry is rapidly evolving, and the company may not achieve profitability if demand for solar energy does not continue to grow[76]. Regulatory Risks - The company has encountered risks related to government regulations, including changes in incentives and tariffs that could adversely affect demand for its products[74]. - Changes in government incentives and regulations could adversely affect demand for solar energy systems, impacting the company's financial performance[108]. - The U.S. trade environment, including tariffs on solar products from China, may adversely affect revenue and operational results[123]. - The expiration of the moratorium on solar module imports from certain Southeast Asian countries on June 6, 2024, introduces uncertainty regarding supply and pricing[131]. Customer Concentration - Four customers accounted for approximately 23%, 19%, 17%, and 13% of total revenue for the year ended December 31, 2023, indicating a high customer concentration risk[92]. - Four customers accounted for approximately 42%, 20%, 13%, and 11% of total accounts receivable as of December 31, 2023[362]. Supply Chain and Manufacturing - The company relies on a limited number of contract manufacturers, with 42% of spending in the U.S., 23% in Hong Kong, 19% in China, and 12% in India, making it vulnerable to supply chain disruptions[134]. - The company is currently disputing tariff assessments from CBP related to imports from Thailand, which could materially affect financial results[129][130]. - The company has entered partnerships with manufacturers in the U.S., Hong Kong, India, Mexico, Canada, Spain, Brazil, Turkey, Saudi Arabia, Thailand, Vietnam, and Korea to optimize costs and reduce reliance on China[131]. Intellectual Property - The company has 61 patents granted and 4 pending as of December 31, 2023, with U.S. patents expected to expire between 2024 and 2043[147]. - The company’s ability to protect its intellectual property is crucial for maintaining a competitive advantage in the market[149]. - The company reached a settlement in December 2022, agreeing to pay $1.5 million and issue 797,396 shares valued at $2.0 million to resolve a patent infringement claim[151]. Operational Challenges - The company has experienced delays in project timelines, negatively impacting revenue and cash flows in 2022 and 2023, with potential continued effects into 2024[93]. - The commercial contracting and bidding process for solar project development is lengthy and uncertain, affecting the conversion of project leads into binding purchase orders[94]. - The company has experienced delays and price increases in international transportation and logistics markets, impacting product delivery timelines[146]. Workforce and Management - The company has made workforce reductions in December 2022 and August 2023, impacting key personnel and potentially hindering future growth[107]. - The company’s ability to attract and retain key personnel is critical for growth, with intense competition for skilled individuals in the industry[107]. Compliance and Legal Risks - The company is subject to various risks related to compliance with federal, state, local, and foreign laws regarding privacy and data protection, which could lead to regulatory sanctions[161]. - The company may face significant costs related to cybersecurity incidents, including potential litigation and regulatory penalties[158]. - The company may incur additional costs due to evolving regulatory requirements related to data protection and privacy[160]. Stock Performance - The company's common stock was notified by Nasdaq on December 22, 2023, for not maintaining a minimum closing bid price of $1.00 per share for 30 consecutive business days[166]. - The trading price of the company's common stock fluctuated between a high of $3.870 and a low of $0.282 per share from January 3, 2023, to December 28, 2023, closing at $0.693 per share[169]. - The company is classified as an "emerging growth company," allowing it to take advantage of reduced disclosure requirements, which may make its common stock less attractive to investors[182].

AUSTIN, Texas, March 15, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (NASDAQ:FTCI), a leading provider of solar tracker systems, software and engineering services, today announced that it is scheduled to present at the 36th Annual Roth Conference on March 18, 2024 at 9:00 a.m. Pacific Time. A live webcast and replay of this event will be accessible from the Events section of FTC Solar's website at www.ftcsolar.com. The company will also participate in meetings with investors that day. About FTC Solar Inc.Found ...

FTC Solar (FTCI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -14.29%. A quarter ago, it was expected that this solar tracking systems maker would post a loss of $0.06 per share when it actually produced a loss of $0.08, delivering a surprise of -33.33%.Over the last four quarters, the com ...

Fourth quarter revenue of $23.2 millionContinue to improve cost structure to lower break-even revenue levelAdded approximately $213 million to backlog1 since Nov. 8; acceleration in contracted projectsAnthony Carroll appointed Chairman of Customer Advisory Board AUSTIN, Texas, March 13, 2024 (GLOBE NEWSWIRE) -- FTC Solar, Inc. (NASDAQ:FTCI), a leading provider of solar tracker systems, software and engineering services, today announced financial results for the fourth quarter ended December 31, 2023. Fourth ...

[Executive Summary & Recent Developments](index=1&type=section&id=Executive%20Summary%20%26%20Recent%20Developments) FTC Solar's Q4 2023 results align with targets, marked by substantial backlog growth, key strategic initiatives, and a CEO search [Fourth Quarter Highlights and Recent Developments](index=1&type=section&id=Fourth%20Quarter%20Highlights%20and%20Recent%20Developments) FTC Solar announced Q4 2023 results in line with targets, highlighted by significant additions to its backlog and ongoing progress in key strategic initiatives, including the search for a new CEO - Approximately **$213 million** has been added to backlog since November 8, bringing the total backlog to approximately **$1.7 billion**[3](index=3&type=chunk)[5](index=5&type=chunk) - The Board has initiated a search for a new CEO, focusing on highly qualified candidates from within and adjacent industries, with a shortlist already identified[3](index=3&type=chunk) - Anthony Carroll has been appointed Chairman of the Customer Advisory Board[5](index=5&type=chunk) [Summary Financial Performance: Q4 2023 vs Q4 2022](index=1&type=section&id=Summary%20Financial%20Performance%3A%20Q4%202023%20vs%20Q4%202022) FTC Solar's Q4 2023 revenue decreased by 11.5% year-over-year to $23.2 million, while gross margin significantly improved from a prior-year loss to positive figures Q4 2023 vs Q4 2022 Summary Financial Performance | Metric | Q4 2023 (GAAP) | Q4 2022 (GAAP) | Q4 2023 (Non-GAAP) | Q4 2022 (Non-GAAP) | | :---------------------- | :------------- | :------------- | :----------------- | :----------------- | | Revenue (in thousands) | $23,201 | $26,220 | $23,201 | $26,220 | | Gross margin percentage | 3.0% | (7.3%) | 4.8% | (3.4%) | | Total operating expenses (in thousands)| $12,428 | $17,947 | $10,848 | $9,971 | | Loss from operations (in thousands)| $(11,736) | $(19,861) | $(10,050) | $(10,976) | | Net loss (in thousands)| $(11,177) | $(20,501) | $(9,657) | $(11,499) | | Diluted loss per share | $(0.09) | $(0.20) | $(0.08) | $(0.11) | [Key Initiatives and Strategic Focus](index=1&type=section&id=Key%20Initiatives%20and%20Strategic%20Focus) The company is actively pursuing several strategic initiatives to drive future growth and profitability, including accelerating project execution, enhancing product margins, and improving operational efficiency and customer satisfaction - Accelerating contracted projects through improved customer engagement and an enhanced product portfolio[6](index=6&type=chunk) - Improving gross margin potential by reducing product cost[6](index=6&type=chunk) - Further lowering the breakeven revenue level through continued operating efficiencies[6](index=6&type=chunk) - Improving business processes across the business with particular emphasis on customer engagement, customer satisfaction, and purchase orders[6](index=6&type=chunk) [Financial Results - Fourth Quarter 2023 Detailed Analysis](index=2&type=section&id=Financial%20Results%20-%20Fourth%20Quarter%202023%20Detailed%20Analysis) This section provides a detailed analysis of FTC Solar's Q4 2023 financial performance, covering revenue, gross profit, operating expenses, and net loss [Revenue Performance](index=4&type=section&id=Revenue%20Performance) For Q4 2023, total revenue was $23.2 million, with product revenue showing a slight increase year-over-year, while service revenue experienced a significant decline Q4 2023 Revenue Breakdown | Revenue Type | Q4 2023 (in thousands) | Q4 2022 (in thousands) | YoY Change | | :----------- | :--------------------- | :--------------------- | :--------- | | Product | $20,945 | $20,083 | +4.3% | | Service | $2,256 | $6,137 | -63.2% | | Total Revenue| $23,201 | $26,220 | -11.5% | [Gross Profit and Margin](index=2&type=section&id=Gross%20Profit%20and%20Margin) GAAP gross profit for Q4 2023 was $0.7 million (3.0% of revenue), a substantial improvement from a gross loss in the prior-year period. Non-GAAP gross profit also turned positive at $1.1 million (4.8% of revenue), driven by better product direct margins and reduced indirect costs - GAAP gross profit was **$0.7 million (3.0% of revenue)** in Q4 2023, compared to a gross loss of **$1.9 million** in Q4 2022[7](index=7&type=chunk)[18](index=18&type=chunk) - Non-GAAP gross profit was **$1.1 million (4.8% of revenue)** in Q4 2023, a significant improvement from a non-GAAP gross loss of **$0.9 million** in the prior-year period[7](index=7&type=chunk) - The improvement was primarily driven by significantly improved product direct margins and lower warranty, retrofit, and other indirect costs[7](index=7&type=chunk) [Operating Expenses](index=2&type=section&id=Operating%20Expenses) GAAP operating expenses decreased to $12.4 million in Q4 2023 from $17.9 million in Q4 2022, mainly due to a significant reduction in general and administrative expenses. Non-GAAP operating expenses were $10.8 million Q4 2023 Operating Expenses (GAAP) | Expense Type | Q4 2023 (in thousands) | Q4 2022 (in thousands) | YoY Change | | :----------- | :--------------------- | :--------------------- | :--------- | | R&D | $1,450 | $2,411 | -39.8% | | Selling & Marketing | $4,924 | $1,766 | +178.8% | | G&A | $6,054 | $13,770 | -56.0% | | Total Operating Expenses | $12,428 | $17,947 | -30.7% | - Non-GAAP operating expenses were **$10.8 million** in Q4 2023, compared to **$10.0 million** in the year-ago quarter[8](index=8&type=chunk) [Net Loss and Adjusted EBITDA](index=2&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) GAAP net loss improved significantly to $11.2 million ($0.09 per share) in Q4 2023 from $20.5 million ($0.20 per share) in Q4 2022. Adjusted EBITDA loss also narrowed to $10.1 million from $11.0 million in the prior-year quarter - GAAP net loss was **$(11.2) million** or **$(0.09) per share** in Q4 2023, an improvement from **$(20.5) million** or **$(0.20) per share** in Q4 2022[9](index=9&type=chunk)[18](index=18&type=chunk) - Adjusted EBITDA loss was **$(10.1) million** in Q4 2023, compared to **$(11.0) million** in the year-ago quarter[9](index=9&type=chunk) - Adjusted diluted loss per share was **$(0.08)** in Q4 2023, compared to **$(0.11)** in Q4 2022[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) This section outlines FTC Solar's financial projections for Q1 and full year 2024, including revenue expectations and targets for Adjusted EBITDA breakeven and profitability [Q1 2024 and Full Year Guidance](index=2&type=section&id=Q1%202024%20and%20Full%20Year%20Guidance) FTC Solar anticipates Q1 2024 revenue to be the lowest point for the year, with expectations of sequential revenue growth thereafter, heavily weighted towards the second half. The company targets Adjusted EBITDA breakeven in Q3 and profitability in Q4 2024 - First quarter 2024 revenue is expected to be between **$10.0 million and $15.0 million**, representing the trough for the year[10](index=10&type=chunk)[11](index=11&type=chunk) - Beyond Q1, the company expects continued sequential revenue growth for the remainder of the year, with revenue weighted toward the second half[10](index=10&type=chunk) - FTC Solar expects to approximate breakeven on an Adjusted EBITDA basis in the third quarter and achieve profitability in the fourth quarter of 2024[10](index=10&type=chunk) Q1 2024 Guidance vs Q4 2023 Actual | Metric (in millions) | Q4 2023 Actual | Q1 2024 Guidance | | :------------------- | :------------- | :--------------- | | Revenue | $23.2 | $10.0 – $15.0 | | Non-GAAP Gross Profit| $1.1 | $(3.8) – $(1.8) | | Non-GAAP Gross Margin| 4.8% | (38%) – (12%) | | Non-GAAP operating expenses | $10.8 | $8.0 – $8.9 | | Non-GAAP adjusted EBITDA | $(10.1) | $(12.6) – $(9.8) | [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of FTC Solar Inc., details investor relations, and includes important disclaimers regarding forward-looking statements [About FTC Solar Inc.](index=2&type=section&id=About%20FTC%20Solar%20Inc.) FTC Solar, founded in 2017 by renewable energy veterans, is a leading provider of solar tracker systems, technology, software, and engineering services. Their innovative tracker designs significantly boost energy production and offer a competitive installation cost-per-watt advantage - FTC Solar is a leading provider of solar tracker systems, technology, software, and engineering services[13](index=13&type=chunk) - Solar trackers increase energy production by dynamically optimizing solar panel orientation to the sun[13](index=13&type=chunk) - The company's innovative tracker designs provide compelling performance, reliability, and an industry-leading installation cost-per-watt advantage[13](index=13&type=chunk) [Investor Relations](index=2&type=section&id=Investor%20Relations) Information regarding the Q4 2023 earnings conference call and investor contact details are provided for stakeholders - A webcast of the Q4 2023 earnings conference call is available on FTC Solar's Investor Relations website, with a replay available for 30 days[12](index=12&type=chunk) - Investor contact is Bill Michalek, Vice President, Investor Relations[16](index=16&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section clarifies that the press release contains forward-looking statements based on current expectations, which are subject to risks, uncertainties, and assumptions. Actual results may differ materially, and the company disclaims any obligation to update these statements unless legally required - Statements are predictions, not guarantees of future performance, and involve risks, uncertainties, and assumptions that are difficult to predict[15](index=15&type=chunk) - Actual results may differ materially from those in forward-looking statements due to factors described in SEC filings, including the 'Risk Factors' section[15](index=15&type=chunk) - FTC Solar undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events, or changes in its expectations, except as required by law[15](index=15&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents FTC Solar's unaudited condensed consolidated financial statements, including statements of comprehensive loss, balance sheets, and cash flows [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This unaudited statement provides a detailed breakdown of FTC Solar's revenue, cost of revenue, gross profit/loss, operating expenses, and net loss for the three months and full year ended December 31, 2023 and 2022 Condensed Consolidated Statements of Comprehensive Loss (Selected Data) | Metric (in thousands) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------- | :------ | :------ | :------ | :------ | | Total revenue | $23,201 | $26,220 | $127,002| $123,066| | Gross profit (loss) | $692 | $(1,914)| $8,307 | $(27,228)| | Total operating expenses | $12,428 | $17,947 | $59,084 | $72,344 | | Loss from operations | $(11,736)| $(19,861)| $(50,777)| $(99,572)| | Net loss | $(11,177)| $(20,501)| $(50,290)| $(99,613)| | Diluted loss per share| $(0.09) | $(0.20) | $(0.44) | $(0.98) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The unaudited condensed consolidated balance sheets as of December 31, 2023, and 2022, show a decrease in total assets to $123.1 million in 2023 from $134.4 million in 2022, reflecting changes in cash, receivables, and inventories Condensed Consolidated Balance Sheets (Selected Data) | Metric (in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :-------------------- | :----------- | :----------- | | Cash and cash equivalents | $25,235 | $44,385 | | Total current assets | $108,508 | $118,690 | | Total assets | $123,070 | $134,398 | | Total current liabilities | $54,665 | $60,340 | | Total liabilities | $60,599 | $67,948 | | Total stockholders' equity | $62,471 | $66,450 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This unaudited statement details the cash flows from operating, investing, and financing activities for the years ended December 31, 2023, and 2022. Net cash used in operations remained substantial, while financing activities provided a significant cash inflow in 2023 Condensed Consolidated Statements of Cash Flows (Selected Data) | Metric (in thousands) | FY 2023 | FY 2022 | | :-------------------- | :------ | :------ | | Net cash used in operations | $(52,656)| $(54,510)| | Net cash provided by (used in) investing activities | $(397) | $(4,247)| | Net cash provided by financing activities | $33,950 | $903 | | Decrease in cash and cash equivalents | $(19,150)| $(57,800)| | Cash and cash equivalents at end of period | $25,235 | $44,385 | [Non-GAAP Financial Measures Reconciliation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides definitions and reconciliations of FTC Solar's Non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS, to their most directly comparable GAAP measures [Non-GAAP Definitions and Purpose](index=7&type=section&id=Non-GAAP%20Definitions%20and%20Purpose) This section defines FTC Solar's Non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Loss, and Adjusted EPS, explaining their role as supplemental performance indicators. These measures aim to provide investors and analysts with a clearer view of core operating performance by excluding certain non-recurring or non-cash items - Adjusted EBITDA is defined as net loss plus (i) provision for (benefit from) income taxes, (ii) interest expense, net (iii) depreciation expense, (iv) amortization of intangibles, (v) stock-based compensation, and (vi) non-routine legal fees, severance and certain other costs (credits), less contingent gains from the disposal of investment[23](index=23&type=chunk) - These non-GAAP measures are presented to assist investors and analysts in comparing performance across reporting periods on an ongoing basis by excluding items not indicative of core operating performance[24](index=24&type=chunk) - Non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP[25](index=25&type=chunk) [Non-GAAP Gross Profit (Loss) Reconciliation](index=7&type=section&id=Non-GAAP%20Gross%20Profit%20%28Loss%29%20Reconciliation) This table reconciles GAAP gross profit (loss) to Non-GAAP gross profit (loss) for the three and twelve months ended December 31, 2023 and 2022, detailing adjustments for depreciation expense, stock-based compensation, severance, and other costs Non-GAAP Gross Profit (Loss) Reconciliation | Metric (in thousands) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------- | :------ | :------ | :------ | :------ | | U.S. GAAP gross profit (loss) | $692 | $(1,914)| $8,307 | $(27,228)| | Depreciation expense | 139 | 117 | 478 | 389 | | Stock-based compensation | 283 | 771 | 1,596 | 3,292 | | Severance | — | 145 | 252 | 145 | | Other costs | — | — | — | 102 | | Non-GAAP gross profit (loss) | $1,114 | $(881) | $10,633 | $(23,300)| | Non-GAAP gross margin percentage | 4.8% | (3.4%) | 8.4% | (18.9%) | [Non-GAAP Operating Expenses Reconciliation](index=7&type=section&id=Non-GAAP%20Operating%20Expenses%20Reconciliation) This table provides a reconciliation of GAAP operating expenses to Non-GAAP operating expenses for the three and twelve months ended December 31, 2023 and 2022, highlighting adjustments for non-cash and non-routine items such as stock-based compensation and severance Non-GAAP Operating Expenses Reconciliation | Metric (in thousands) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------- | :------ | :------ | :------ | :------ | | U.S. GAAP operating expenses | $12,428 | $17,947 | $59,084 | $72,344 | | Depreciation expense | (99) | (67) | (355) | (242) | | Amortization expense | (133) | (134) | (542) | (269) | | Stock-based compensation | 1,032 | (4,277) | (6,699) | (17,011)| | Non-routine legal fees | (33) | (2,753) | (214) | (8,495) | | Severance | (2,347) | (296) | (4,170) | (1,333) | | Other (costs) credits | — | (449) | (3,241) | (2,251) | | Non-GAAP operating expenses | $10,848 | $9,971 | $43,863 | $42,743 | [Non-GAAP Adjusted EBITDA and Adjusted Net Loss Reconciliation](index=8&type=section&id=Non-GAAP%20Adjusted%20EBITDA%20and%20Adjusted%20Net%20Loss%20Reconciliation) This section provides comprehensive reconciliations of GAAP loss from operations to Adjusted EBITDA, and GAAP net loss to Adjusted EBITDA and Adjusted Net Loss for the three and twelve months ended December 31, 2023 and 2022, detailing all specific adjustments and their impact on per-share figures Adjusted EBITDA Reconciliation to GAAP Loss from Operations | Metric (in thousands) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :-------------------- | :------ | :------ | :------ | :------ | | U.S. GAAP loss from operations | $(11,736)| $(19,861)| $(50,777)| $(99,572)| | Depreciation expense | 238 | 184 | 833 | 631 | | Amortization expense | 133 | 134 | 542 | 269 | | Stock-based compensation | (749) | 5,048 | 8,295 | 20,303 | | Non-routine legal fees | 33 | 2,753 | 214 | 8,495 | | Severance | 2,347 | 441 | 4,422 | 1,478 | | Other costs | — | 449 | 3,241 | 2,353 | | Other income (expense), net | 8 | (124) | (257) | (373) | | Loss from unconsolidated subsidiary | (324) | — | (660) | — | | Adjusted EBITDA | $(10,050)| $(10,976)| $(34,147)| $(66,416)| Adjusted Net Loss Reconciliation to GAAP Net Loss | Metric (in thousands) | Q4 2023 (Adj. Net Loss) | Q4 2022 (Adj. Net Loss) | | :-------------------- | :---------------------- | :---------------------- | | Net loss per U.S. GAAP | $(11,177) | $(20,501) | | Amortization of debt issue costs in interest expense | 177 | 177 | | Amortization of intangibles | 133 | 134 | | Stock-based compensation | (749) | 5,048 | | Gain from disposal of investment in unconsolidated subsidiary | (421) | — | | Non-routine legal fees | 33 | 2,753 | | Severance | 2,347 | 441 | | Other costs | — | 449 | | Adjusted Non-GAAP net loss | $(9,657) | $(11,499) | | Adjusted Non-GAAP net loss per share (Adjusted EPS) | $(0.08) | $(0.11) | - Severance costs in 2023 and 2022 were incurred due to restructuring changes, including executive turnover and headcount reductions[29](index=29&type=chunk)