Financial Performance - Total revenue decreased by $5.1 million, or 32.5%, from $15.7 million during the three months ended June 30, 2023, to $10.6 million during the same period in 2024[63]. - Product sales accounted for $9.9 million, representing 93% of total revenue for the three months ended June 30, 2024, compared to $13.4 million or 85% in the same period of 2023[61]. - Gross profit for the three months ended June 30, 2024, was $5.2 million, a decrease from $9.2 million in the same period of 2023, resulting in a gross margin of 49% compared to 58%[61]. - Operating expenses increased to $8.0 million for the three months ended June 30, 2024, from $7.6 million in the same period of 2023, representing 76% of total revenue[61]. - Net loss for the three months ended June 30, 2024, was $2.5 million, compared to a net income of $3.9 million in the same period of 2023, reflecting a significant decline in profitability[61]. - Total revenue decreased by $5.5 million, or 18.1%, from $30.6 million in the first half of 2023 to $25.1 million in the first half of 2024[78]. - Product sales decreased by $6.4 million, or 23.7%, from $27.2 million in the first half of 2023 to $20.7 million in the first half of 2024[77]. - Gross margin for the first half of 2024 was 53.4%, down from 57.6% in the first half of 2023, due to decreased product sales[81]. - Cash provided by operating activities was $0.4 million for the six months ended June 30, 2024, compared to $7.5 million in the same period of 2023, reflecting a significant decrease[92][93]. Revenue Sources - The company generated 87% of its revenue from products sold to distributors for the three months ended June 30, 2024[63]. - Licensing, royalty, patent, and other revenue decreased to $749,000, or 7% of total revenue, down from $2.3 million, or 15%, in the same period of 2023[61]. - Licensing, royalty, patent, and other revenue decreased by $1.6 million, or 68.0%, from $2.3 million in Q2 2023 to $0.7 million in Q2 2024[65]. - Licensing, royalty, patent, and other revenue increased by $0.9 million, or 26.7%, from $3.4 million in the first half of 2023 to $4.3 million in the first half of 2024[79]. Expenses and Costs - Total cost of sales for the three months ended June 30, 2024, was $5.4 million, representing 51% of total revenue, compared to 42% in the same period of 2023[61]. - Cost of product sales decreased by $0.9 million, or 14.0%, from $6.1 million in Q2 2023 to $5.2 million in Q2 2024[70]. - Research and development expenses rose to $3.5 million, accounting for 33% of total operating expenses for the three months ended June 30, 2024, compared to 17% in the same period of 2023[61]. - Research and development expenses increased by $0.7 million, or 27.7%, from $2.7 million in Q2 2023 to $3.5 million in Q2 2024, driven by new xSPI product development[70]. - General and administrative expenses increased by $0.6 million, or 8.4%, from $6.7 million in the first half of 2023 to $7.3 million in the first half of 2024[85]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2024, were approximately $36.8 million, slightly down from $36.9 million at the end of 2023, with no outstanding debt[91][107]. - Cash used in investing activities was $1.2 million for the six months ended June 30, 2024, compared to $1.0 million in the same period of 2023[94]. - Cash provided by financing activities was $0.6 million for the six months ended June 30, 2024, while $2.5 million was used in financing activities in the same period of 2023[95]. - The company believes its existing cash and cash equivalents will be sufficient to meet anticipated cash requirements for at least the next 12 months[107]. - The company may need additional funding in the future, which could impact planned activities if not secured[106][108]. - The company has no committed sources of funding and there is no assurance that additional funding will be available on acceptable terms[107]. Market and Competitive Risks - The company faces risks related to competition and the ability to sustain profitability amid market uncertainties[110]. - The semiconductor industry is currently experiencing a worldwide shortage of components, which could lead to increased costs and extended lead times for Everspin's products[125]. - Increased competition in the semiconductor market is expected, which may lead to price pressure and reduced revenue[138]. - The company faces risks related to unpredictable revenue and increased expenses due to the competitive nature of the semiconductor industry and macroeconomic factors[114]. - The company must continuously develop new products to remain competitive, and failure to market these effectively could materially impact its financial condition[129]. Operational Risks - Everspin relies on a single foundry, GLOBALFOUNDRIES, for higher density products, which may not have sufficient capacity to meet customer demand[116]. - The company faces risks related to manufacturing yields, which can significantly impact production costs and operating results[144]. - Transitioning to new wafer fabrication process technologies may result in reduced manufacturing yields and increased expenses[148]. - The loss of customers or reduced orders could significantly adversely affect Everspin's operations and financial results[135]. - Securing design wins is a lengthy and competitive process, and delays in this process could lead to revenue declines for Everspin[131]. Regulatory and Compliance Risks - The company may incur substantial costs related to compliance with environmental regulations, which could restrict business expansion[181]. - The semiconductor memory industry is subject to various governmental regulations that could impose additional compliance costs and risks[181]. - The company must comply with evolving industry standards and technical requirements, which could require significant redesign efforts[153]. - The company may face challenges in verifying the origins of conflict minerals used in its products, which could harm its reputation and customer relationships[185]. Strategic and Growth Risks - The company is seeking to expand international operations, which exposes it to various regulatory, economic, and political risks[159]. - The ability to attract and retain key employees is critical for the company's growth and execution of business strategies[155]. - Significant investments in new technologies and products may not achieve profitability or technological feasibility, potentially harming revenue growth[171]. Financial and Stock Risks - The market price of the company's common stock is expected to be highly volatile, influenced by various factors including product introductions and market conditions[187]. - The company has approximately $96.2 million in federal net operating loss carryforwards, with $55.8 million expiring between 2028 and 2037 if not utilized[186]. - The company has state net operating loss carryforwards of approximately $48.7 million, with $45.9 million expiring between 2028 and 2043 if not utilized[186]. - The company may incur significant additional costs if exclusive forum provisions in its amended certificate of incorporation are challenged in other jurisdictions[196]. - The company’s board has the authority to issue undesignated preferred stock, which could impede acquisition attempts[192]. External Risks - The military conflict in Ukraine has led to sanctions and tariffs that may cause inflationary pressures and supply chain disruptions for the company[198]. - Recent inflation rates in the United States have reached levels not seen in decades, prompting federal actions that affect capital markets[198]. - The company’s operations may be disrupted by natural disasters, industrial accidents, and public health issues, which could impair business continuity[199]. - The company may not have adequate insurance to cover losses from catastrophic events, which could seriously impair its financial condition[199]. - The company relies on a network of suppliers and distributors, and any financial difficulties faced by these partners could adversely affect its business[197].

Financial Performance - Q2 2024 total revenue was $10.6 million, down from $15.7 million in Q2 2023, aligning with guidance[1][2] - MRAM product sales were $9.9 million, compared to $13.4 million in Q2 2023, reflecting a decrease of approximately 26.1%[2] - Gross margin for Q2 2024 was 49.0%, down from 58.4% in Q2 2023[2] - GAAP net loss for Q2 2024 was $2.5 million, or $0.12 per basic share, compared to net income of $3.9 million, or $0.18 per diluted share in Q2 2023[2][3] - Adjusted EBITDA showed a loss of $0.2 million, a significant decline from $5.4 million in Q2 2023[2] - Net loss for six months ended June 30, 2024, was $2,704,000 compared to a net income of $4,646,000 for the same period in 2023[15] - Adjusted EBITDA for six months ended June 30, 2024, was $1,743,000, down from $7,746,000 in the same period of 2023[16] Cash Flow and Assets - The company reported a cash flow from operations of $1.7 million for the quarter, maintaining a debt-free balance sheet[3] - Cash provided by operating activities for six months ended June 30, 2024, was $428,000, a significant decrease from $7,531,000 in the prior year[15] - Cash and cash equivalents at the end of the period were $36,764,000, up from $30,830,000 at the end of June 30, 2023[15] - Total current assets decreased to $55.4 million as of June 30, 2024, from $57.9 million at the end of 2023[10] - Total liabilities decreased to $9.1 million as of June 30, 2024, down from $13.4 million at the end of 2023[11] Future Projections - For Q3 2024, Everspin expects total revenue between $11.5 million and $12.5 million, with GAAP net loss per basic share projected to be between $0.05 and $0.10[3] Operational Changes - Everspin is experiencing increased design activity in the European and Asia Pacific regions, particularly with its PERSYST STT-MRAM product family[1] Inventory and Liabilities - Accounts receivable increased by $1,440,000 for six months ended June 30, 2024, compared to an increase of $1,639,000 in the same period of 2023[15] - Inventory changes resulted in a $404,000 increase for six months ended June 30, 2024, compared to a decrease of $662,000 in the same period of 2023[15] - Accrued liabilities increased by $2,628,000 for six months ended June 30, 2024, compared to an increase of $701,000 in the same period of 2023[15] Stock-Based Compensation - Stock-based compensation increased to $3,576,000 for six months ended June 30, 2024, compared to $2,420,000 for the same period in 2023[15] Debt Management - Payments on long-term debt were $0 for the six months ended June 30, 2024, compared to $2,790,000 in the same period of 2023[15]

Revenue Performance - Total revenue decreased by $0.4 million, or 2.8%, from $14.8 million in Q1 2023 to $14.4 million in Q1 2024, primarily due to a $2.9 million decrease in product sales[73]. - Product sales accounted for $10.9 million, or 75% of total revenue in Q1 2024, down from $13.8 million, or 93% in Q1 2023[69]. - Licensing, royalty, patent, and other revenue increased by $2.5 million, or 234%, from $1.1 million in Q1 2023 to $3.6 million in Q1 2024, driven by RAD-Hard projects[74]. Expenses - Research and development expenses rose by $0.2 million, or 6.8%, from $3.2 million in Q1 2023 to $3.4 million in Q1 2024, primarily related to the new xSPI family of STT-MRAM products[79]. - General and administrative expenses increased by $0.8 million, or 25.3%, from $3.2 million in Q1 2023 to $4.0 million in Q1 2024, mainly due to stock-based compensation and professional services[81]. - Operating expenses increased to $8.76 million in Q1 2024, up from $7.73 million in Q1 2023, representing 61% of total revenue[69]. - Sales and marketing expenses remained consistent at $1.3 million for both Q1 2024 and Q1 2023, representing 9% of revenue[83]. Profitability - The net loss for Q1 2024 was $202,000 compared to a net income of $761,000 in Q1 2023[69]. - Gross margin slightly decreased from 56.8% in Q1 2023 to 56.5% in Q1 2024 due to reduced product sales and increased supplier pricing[77]. Cash Flow and Financial Position - As of March 31, 2024, cash and cash equivalents totaled $34.8 million, down from $36.9 million as of December 31, 2023, with no outstanding debt[86]. - Cash used in operating activities was $1.3 million in Q1 2024, compared to cash provided of $1.2 million in Q1 2023[89][90]. - Cash used in investing activities was $1.2 million in Q1 2024, reflecting purchases of manufacturing equipment, compared to $1.0 million in Q1 2023[91]. - Cash provided by financing activities was $0.4 million in Q1 2024, consisting of proceeds from the exercise of employee stock options, compared to cash used of $2.8 million in Q1 2023[92]. Other Financial Metrics - Total cost of sales decreased by $0.146 million, or 2.3%, from $6.416 million in Q1 2023 to $6.270 million in Q1 2024[75]. - Interest expense decreased by $0.1 million, or 100%, from $0.1 million in Q1 2023 to $0 in Q1 2024 due to the full repayment of the 2019 Credit Facility[84]. - Other income, net increased by $0.3 million, or 210.9%, from $0.4 million in Q1 2023 to $0.7 million in Q1 2024, primarily due to increased interest income[85]. Operational Challenges - The company continues to navigate the impacts of COVID-19, particularly in some Asian countries, while monitoring supply chain constraints[66].

Financial Data and Key Metrics Changes - The company reported revenue of $14.4 million for Q1 2024, slightly down from $14.8 million in Q1 2023, but near the high end of the guidance range of $13.5 million to $14.5 million [7][48] - Adjusted EBITDA was $1.9 million compared to $2.3 million in Q1 2023 [8] - GAAP gross margin was 56.5%, relatively flat compared to 56.8% in Q1 2023 [75] - Operating expenses increased to $8.8 million from $7.7 million in Q1 2023, resulting in a net loss of $0.2 million or $0.01 per diluted share, compared to a net income of $0.8 million or $0.04 per diluted share in Q1 2023 [75] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT-MRAM revenue, were $10.9 million, down from $13.8 million in Q1 2023 [51] - Licensing, royalty, patent, and other revenue increased to $3.6 million from $1.1 million in Q1 2023 [51] Market Data and Key Metrics Changes - The company noted continued economic weakness in the Asia Pacific region, impacting customer demand and project schedules [6][72] - The STT data center product bookings in 2024 are expected to exceed those of 2023, indicating a positive trend in this segment [15] Company Strategy and Development Direction - The company expects a ramp in Toggle and STT-MRAM design wins in the second half of 2024, with revenue recognition anticipated from these design wins [5][30] - The company is pursuing funding under the CHIPS and Science Act to enhance its manufacturing capabilities for Toggle and STT-MRAM products [73] - The company is focused on growing its Toggle, MRAM, and DRAM products while recognizing revenue from STT-MRAM technology [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2024, expecting to recognize revenue from design wins despite a slower start to the year due to macroeconomic challenges [6][30] - The company is encouraged by recent traction and leads generated from industry events, indicating potential growth opportunities [50] Other Important Information - The company ended the quarter with cash and cash equivalents of $34.8 million, down from $36.9 million in the previous quarter, attributed to investments in new products and facilities [8] - The company is currently engaged in two radiation hard programs using STT-MRAM technology, with expectations for continued revenue recognition from these projects [49] Q&A Session Summary Question: What gives confidence on the second half ramp? - Management noted that bookings for STT data center products are expected to exceed 2023 levels, contributing to confidence in the second half ramp [15] Question: What drove the miss in Q2 guidance? - The decline in guidance was attributed to lower RAD-Hard revenue not being incorporated into Q2, as no new RAD-Hard projects have been signed yet [35] Question: Can you elaborate on the Toggle MRAM reliability project? - Management confirmed that they expect to continue the project in Q2, pending funding from the US government agency [60] Question: What is the visibility on product gross margins? - Management indicated that product gross margins have been healthy, with expectations for improvement as new products ramp up [90] Question: Are lead times back to pre-pandemic levels? - Lead times have returned to pre-pandemic levels, approximately 26 to 27 weeks [108]

Financial Performance - Q1 2024 revenue was $14.4 million, close to the high end of guidance, compared to $14.8 million in Q1 2023[6] - MRAM product sales totaled $10.9 million, down from $13.8 million in the same quarter last year[6] - Licensing, royalty, patent, and other revenue increased to $3.6 million from $1.1 million in Q1 2023[6] - Gross margin for Q1 2024 was 56.5%, slightly down from 56.8% in Q1 2023[6] - GAAP net loss was $0.2 million, or $(0.01) per diluted share, compared to net income of $0.8 million, or $0.04 per diluted share, in Q1 2023[6] - The company reported an Adjusted EBITDA of $1.9 million, down from $2.3 million in Q1 2023[6] Future Outlook - For Q2 2024, Everspin expects total revenue between $10.0 million and $11.0 million, with a GAAP net loss per share between $(0.14) and $(0.09)[4] - Everspin has secured design wins with IBM for its PERSYST STT-MRAM solution, expected to ramp in the second half of 2024[2] Assets and Liabilities - Total current assets decreased to $56.4 million as of March 31, 2024, from $57.9 million at the end of 2023[16] - Total liabilities decreased to $10.4 million as of March 31, 2024, from $13.4 million at the end of 2023[16]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Washington, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-37900 Everspin Technologies, Inc. (Exact name of Registrant as specified in its Charter) (State or other jurisdicti ...

Financial Data and Key Metrics Changes - The company reported record annual revenue of $63.8 million for 2023, a 6% increase year-over-year [10][34] - Fourth quarter revenue was $16.7 million, exceeding guidance of $15.4 million to $16.4 million [10][34] - Gross margin for Q4 2023 was 58.1%, up from 51.4% in Q4 2022, while the full year gross margin was 58.4%, an increase from 56.6% in 2022 [10][36] - Net income for 2023 was $9.1 million, with Q4 net income at $2 million or $0.09 per diluted share, compared to $0.6 million or $0.03 per diluted share in Q4 2022 [34][38] - The company ended the year with a cash balance of $36.9 million, the highest in its history [10][39] Business Line Data and Key Metrics Changes - MRAM product sales in Q4 2023 were $12.4 million, down from $14.6 million in Q4 2022 [35] - Licensing royalties and other revenue increased to $4.3 million in Q4 2023, compared to $1.1 million in Q4 2022 [35] Market Data and Key Metrics Changes - The company noted weakness in the industrial and automotive sectors, particularly in APAC regions like Japan and China [15][21] - The first half of 2024 is expected to be muted due to economic challenges in China and inventory digestion among customers [15][40] Company Strategy and Development Direction - The company aims to maintain its leadership in MRAM technology, focusing on design wins and new product qualifications [12][42] - A key focus is on distributed MRAM (DMRAM), which is expected to enhance energy efficiency and scaling [14] - The company is optimistic about the second half of 2024, anticipating revenue growth from design wins in STT and Toggle MRAM products [25][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while maintaining profitability [38][42] - The company expects to recognize revenue from design wins in the second half of 2024, despite a slower start to the year [33][41] Other Important Information - The company achieved positive cash flow from operations, totaling $13.1 million for the full year, up from $9.5 million in 2022 [39] - The company has entered into new radiation hard program agreements to develop reliability models and license technology for strategic applications [13] Q&A Session Summary Question: About the gross margin number in the fourth quarter - The management provided insights on the year-over-year change in gross margin and discussed the sequential decline despite strong licensing revenue [45][46] Question: Weakness in industrial automation in China - Management confirmed that challenges in the industrial and automotive sectors persisted, particularly in APAC regions, affecting revenue guidance [20][21][24] Question: Guidance for revenue across segments - The company expects Q1 revenue to be between $13.5 million and $14.5 million, with a strong outlook for licensing but a decline in product revenue due to APAC challenges [23][24]

[Financial Highlights and Overview](index=1&type=section&id=Financial%20Highlights%20and%20Overview) Everspin Technologies achieved strong, record-breaking financial performance in Q4 and full year 2023, marked by increased revenue, profitability, and cash reserves [Q4 2023 and Full Year 2023 Performance Summary](index=1&type=section&id=Q4%202023%20and%20Full%20Year%202023%20Performance%20Summary) Everspin Technologies achieved strong, record-breaking financial performance in Q4 and full year 2023, marked by increased revenue, profitability, and cash reserves - The company's Q4 2023 performance exceeded expectations across the board, primarily driven by strong product and RAD Hard revenue[2](index=2&type=chunk) - Full year 2023 achieved **record revenue and profitability**, with improved gross margin through operational excellence[2](index=2&type=chunk) - The company achieved its **11th consecutive profitable quarter**, maintaining a strong financial position with no debt and a **record-high cash balance**[5](index=5&type=chunk) [Q4 2023 Highlights](index=1&type=section&id=Q4%202023%20Highlights) In Q4 2023, the company exceeded guidance for total revenue and diluted EPS, achieved a significant increase in gross margin, and reached a record-high cash balance Key Financial Metrics for Q4 2023 | Metric | Q4 2023 (USD) | Q4 2022 (USD) | Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :---------- | | Total Revenue | $16.7 million | $15.7 million | +6% | | Diluted EPS (GAAP) | $0.09 | $0.03 | +200% | | Gross Margin | 58.1% | 51.4% | +6.7 pp | | Adjusted EBITDA | $3.6 million | $2.1 million | +71.4% | | Cash and Cash Equivalents (End of Period) | $36.9 million | - | Record High | - MRAM product sales were **$12.4 million**, compared to $14.6 million in Q4 2022[4](index=4&type=chunk) - Licensing, royalties, patent, and other revenue totaled **$4.3 million**, up from $1.1 million in Q4 2022[4](index=4&type=chunk) [Full Year 2023 Highlights](index=1&type=section&id=Full%20Year%202023%20Highlights) For the full year 2023, the company achieved growth in both revenue and profitability, with significant improvements in gross margin and Adjusted EBITDA, alongside 217 design wins Key Financial Metrics for Full Year 2023 | Metric | Full Year 2023 (USD) | Full Year 2022 (USD) | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :---------- | | Total Revenue | $63.8 million | $60.0 million | +6% | | Diluted EPS (GAAP) | $0.42 | $0.29 | +44.8% | | Gross Margin | 58.4% | 56.6% | +1.8 pp | | Adjusted EBITDA | $15.3 million | $11.8 million | +29.7% | - **217 design wins** were achieved for the full year 2023[2](index=2&type=chunk) - MRAM product sales were **$53.1 million**, compared to $55.0 million in 2022[4](index=4&type=chunk) - Licensing, royalties, patent, and other revenue totaled **$10.6 million**, up from $5.0 million in 2022[4](index=4&type=chunk) [Detailed Financial Results](index=1&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of Everspin's financial performance for Q4 and full year 2023, highlighting key revenue and profitability metrics [Fourth Quarter 2023 Results](index=1&type=section&id=Fourth%20Quarter%202023%20Results) In Q4 2023, Everspin achieved year-over-year growth in total revenue, significant improvements in gross margin and net income, and a substantial increase in Adjusted EBITDA Q4 2023 Financial Data | Metric | Q4 2023 (Millions USD) | Q4 2022 (Millions USD) | Change (YoY) | | :-------------------------------- | :-------------------------- | :-------------------------- | :---------- | | Total Revenue | 16.7 | 15.7 | +6% | | MRAM Product Sales | 12.4 | 14.6 | -15.1% | | Licensing, Royalties & Other Revenue | 4.3 | 1.1 | +290.9% | | Gross Margin | 58.1% | 51.4% | +6.7 pp | | GAAP Operating Expenses | 8.1 | 7.5 | +8% | | GAAP Net Income | 2.0 | 0.6 | +233.3% | | Diluted EPS (GAAP) | 0.09 | 0.03 | +200% | | Adjusted EBITDA | 3.6 | 2.1 | +71.4% | - Cash and cash equivalents balance reached a **record $36.9 million** at the end of Q4 2023[4](index=4&type=chunk) [Full Year 2023 Results](index=1&type=section&id=Full%20Year%202023%20Results) For the full year 2023, Everspin demonstrated robust growth in total revenue and net income, alongside notable enhancements in gross margin and Adjusted EBITDA, reflecting improved operational efficiency Full Year 2023 Financial Data | Metric | Full Year 2023 (Millions USD) | Full Year 2022 (Millions USD) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :---------- | | Total Revenue | 63.8 | 60.0 | +6% | | MRAM Product Sales | 53.1 | 55.0 | -3.5% | | Licensing, Royalties & Other Revenue | 10.6 | 5.0 | +112% | | Gross Margin | 58.4% | 56.6% | +1.8 pp | | GAAP Operating Expenses | 31.4 | 27.7 | +13.4% | | GAAP Net Income | 9.1 | 6.1 | +49.2% | | Diluted EPS (GAAP) | 0.42 | 0.29 | +44.8% | | Adjusted EBITDA | 15.3 | 11.8 | +29.7% | [Business Outlook](index=2&type=section&id=Business%20Outlook) Everspin provides its financial guidance for Q1 2024 and includes cautionary statements regarding the inherent risks and uncertainties of forward-looking statements [Q1 2024 Guidance](index=2&type=section&id=Q1%202024%20Guidance) Everspin projects Q1 2024 total revenue to range between $13.5 million and $14.5 million, with diluted earnings per share expected to be between break-even and $0.05 Q1 2024 Performance Guidance | Metric | Q1 2024 Guidance | | :--------------------- | :------------------- | | Total Revenue | $13.5 million - $14.5 million | | Diluted EPS (GAAP) | Break-even - $0.05 | - This outlook is based on Everspin's current expectations and may be influenced by external conditions[6](index=6&type=chunk) [Cautionary Statement Regarding Outlook](index=2&type=section&id=Cautionary%20Statement%20Regarding%20Outlook) The company advises investors that forward-looking statements involve risks and uncertainties, with actual results potentially differing materially from expectations due to various external factors - The outlook relies on Everspin's current expectations and may be impacted by external conditions such as COVID-19 and its variants, supply chain disruptions, the military conflict in Ukraine, Middle East instability, market volatility, and a semiconductor industry downturn[6](index=6&type=chunk) - Actual results may differ materially from forward-looking statements due to risk factors described in the company's 10-K and 10-Q reports filed with the SEC[13](index=13&type=chunk) - Everspin undertakes no obligation to update or revise these forward-looking statements in the future, except as required by law[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Adjusted EBITDA as a non-GAAP financial metric, explaining its calculation and management's use for performance evaluation and planning [Adjusted EBITDA Reconciliation and Definition](index=2&type=section&id=Adjusted%20EBITDA%20Reconciliation%20and%20Definition) Everspin utilizes Adjusted EBITDA as a non-GAAP financial metric to assess operational performance, trends, and for budgeting and planning, derived by adjusting net income for specific non-cash and non-operating items - Adjusted EBITDA is defined as net income adjusted for interest expense, taxes, depreciation and amortization, stock-based compensation expense, and restructuring costs, if any[7](index=7&type=chunk) - Management and the Board of Directors use Adjusted EBITDA to understand and evaluate operating performance and trends, prepare and approve annual budgets, and develop short-term and long-term operating and financing plans[8](index=8&type=chunk) - Adjusted EBITDA is a non-GAAP financial measure, intended to supplement, not substitute, GAAP net income, and its definition may vary across companies, limiting comparability[8](index=8&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Everspin Technologies as a leading MRAM provider and details for the upcoming analyst and investor conference call [About Everspin Technologies](index=2&type=section&id=About%20Everspin%20Technologies) Everspin Technologies is a leading global provider of Magnetoresistive Random Access Memory (MRAM), offering high-performance non-volatile memory solutions for critical applications - Everspin Technologies, Inc. is the **world's leading provider of Magnetoresistive Random Access Memory (MRAM)**[11](index=11&type=chunk) - Everspin MRAM offers the most robust and highest-performance non-volatile memory for industrial IoT, data centers, and other mission-critical applications where data persistence is crucial[11](index=11&type=chunk)[12](index=12&type=chunk) - Headquartered in Chandler, Arizona, the company provides commercial MRAM solutions to a broad and diverse customer base[12](index=12&type=chunk) [Conference Call and Investor Relations](index=2&type=section&id=Conference%20Call%20and%20Investor%20Relations) Everspin will host an analyst and investor conference call on February 28, 2024, providing details for dial-in, webcast access, and investor relations contacts - Everspin will host an analyst and investor conference call on **February 28, 2024, at 5:00 PM ET**[9](index=9&type=chunk) - A live webcast of the conference call will be accessible on the company's website at investor.everspin.com, with an archived replay available approximately two hours after the live broadcast for twelve months[10](index=10&type=chunk) - Investor Relations contact: Monica Gould, The Blueshirt Group, Phone: 212-871-3927, Email: ir@everspin.com[14](index=14&type=chunk) [Unaudited Financial Statements](index=4&type=section&id=Unaudited%20Financial%20Statements) This section presents Everspin's unaudited balance sheets, income statements, cash flow statements, and Adjusted EBITDA reconciliation for the specified periods [Balance Sheets](index=4&type=section&id=Balance%20Sheets) As of December 31, 2023, Everspin's balance sheet shows significant growth in cash and cash equivalents, an increase in total assets and stockholders' equity, and a decrease in total liabilities Key Balance Sheet Data (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :----------------------- | :------- | :------- | :---------- | | Cash and Cash Equivalents | 36,946 | 26,795 | +37.9% | | Total Current Assets | 57,879 | 44,747 | +29.3% | | Total Assets | 67,303 | 55,333 | +21.6% | | Total Current Liabilities | 8,778 | 10,875 | -19.3% | | Total Liabilities | 13,382 | 16,669 | -19.7% | | Total Stockholders' Equity | 53,921 | 38,664 | +39.4% | [Statements of Income and Comprehensive Income](index=5&type=section&id=Statements%20of%20Income%20and%20Comprehensive%20Income) In 2023, Everspin experienced growth in total revenue, gross profit, and net income, with a notable increase in diluted earnings per share, reflecting enhanced profitability Key Statements of Income and Comprehensive Income Data (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :-------------------------------- | :------- | :------- | :---------- | | Product Sales | 53,123 | 55,032 | -3.5% | | Licensing, Royalties & Other Revenue | 10,642 | 4,953 | +114.9% | | Total Revenue | 63,765 | 59,985 | +6.3% | | Cost of Sales | 26,520 | 26,040 | +1.8% | | Gross Profit | 37,245 | 33,945 | +9.7% | | Operating Expenses | 31,360 | 27,718 | +13.1% | | Operating Income | 5,885 | 6,227 | -5.5% | | Net Income | 9,052 | 6,129 | +47.7% | | Diluted EPS | 0.42 | 0.29 | +44.8% | - Stock-based compensation expense totaled **$5,005 thousand** in 2023, up from $4,408 thousand in 2022[18](index=18&type=chunk) [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) In 2023, Everspin saw a significant increase in cash flow from operating activities, reduced cash outflow from investing activities, and a substantial rise in net cash and cash equivalents Key Statements of Cash Flows Data (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :--------------------------- | :------- | :------- | :---------- | | Net Cash from Operating Activities | 13,128 | 9,493 | +38.3% | | Net Cash Used in Investing Activities | (1,385) | (2,586) | -46.4% | | Net Cash Used in Financing Activities | (1,592) | (1,521) | +4.7% | | Net Increase in Cash & Equivalents | 10,151 | 5,386 | +88.5% | | Cash and Cash Equivalents, End of Period | 36,946 | 26,795 | +37.9% | - Purchases of property and equipment were **$1,404 thousand** in 2023, down from $2,788 thousand in 2022[20](index=20&type=chunk) - Repayments of long-term debt were **$2,790 thousand** in 2023, up from $2,400 thousand in 2022[20](index=20&type=chunk) [Reconciliation of Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) In 2023, Everspin's Adjusted EBITDA, reconciled from GAAP net income, showed significant growth, reflecting the core profitability of the company's operations Reconciliation of Adjusted EBITDA (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :----------------------- | :------- | :------- | :---------- | | Net Income | 9,052 | 6,129 | +47.7% | | Depreciation and Amortization | 1,205 | 982 | +22.7% | | Stock-based Compensation Expense | 5,005 | 4,408 | +13.5% | | Interest Expense | 63 | 274 | -77.0% | | Income Tax (Benefit) Expense | (16) | 14 | -214.3% | | Adjusted EBITDA | 15,309 | 11,807 | +29.7% |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37900 Everspin Technologies, Inc. (Exact name of Registrant as specified in its Charter) Delaware 26-26406 ...

Everspin Technologies, Inc. (NASDAQ:MRAM) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Sanjeev Aggarwal - President & Chief Executive Officer Anuj Aggarwal - Chief Financial Officer Conference Call Participants Shadi Mitwalli - Craig-Hallum Nick Doyle - Needham Orin Hirschman - AIG Operator Good afternoon, and welcome to the conference call to discuss Everspin Technologies Third Quarter 2023 Financial Results. At this time, all participants are in a listen-only mode. At ...