Navitas Semiconductor (US:NVTS)2023-04-03 15:10Financial Performance - Net revenues for the year ended December 31, 2022, were $37.9 million, an increase of 60% from $23.7 million in 2021, driven by the GeneSiC acquisition and increased unit sales in the home appliance market [341]. - The company reported a net income of $72.9 million for 2022, a significant turnaround from a net loss of $152.7 million in 2021, reflecting a change of $225.6 million [340]. - The company incurred a net loss of $72,887,000 in 2022, compared to a net loss of $152,685,000 in 2021, indicating an improvement in financial performance [399]. - The company’s basic net income per share attributable to common stockholders was $0.55 in 2022, compared to a loss of $3.90 in 2021 [399]. - The company reported net revenues of $37,943,000 for the year ended December 31, 2022, an increase of 60% compared to $23,736,000 in 2021 [399]. Expenses - Cost of revenues for 2022 was $26.0 million, a 99% increase from $13.1 million in 2021, primarily due to significant revenue growth and inventory charges of $2.8 million [342]. - Research and development expenses for 2022 totaled $50.3 million, an increase of 83% compared to $27.5 million in 2021, driven by higher stock-based compensation and increased headcount [344]. - Selling, general and administrative expenses for 2022 were $78.4 million, up 53% from $51.4 million in 2021, due to increased stock-based compensation and transaction expenses related to the GeneSiC acquisition [345]. - The company reported stock-based compensation expense of $63,288,000 in 2022, up from $41,404,000 in 2021 [407]. - Rent expense, including short-term lease costs, increased to $2.1 million in fiscal year 2022 from $1.3 million in 2021, representing a 61.5% increase [492]. Cash Flow and Assets - As of December 31, 2022, cash and cash equivalents totaled $110.3 million, a decrease of $157.9 million or 59% compared to the previous year [358]. - Net cash used in operating activities for the year ended December 31, 2022, was $44.5 million, reflecting a net income of $72.9 million adjusted for non-cash items [360]. - Net cash used in investing activities for the year ended December 31, 2022, was $107.6 million, primarily due to $96.4 million in business acquisitions [362]. - The company reported total stockholders' equity of $384,760,000 as of December 31, 2022, significantly up from $65,536,000 in 2021 [397]. - The company's total assets increased to $425,262,000 as of December 31, 2022, up from $295,601,000 in 2021, representing a growth of 43.8% [397]. Acquisitions and Investments - The acquisition of GeneSiC was valued at $246.2 million, including $146.3 million in equity and $99.3 million in cash [325]. - The company acquired VDDTech for $1.9 million and GeneSiC for $246.2 million in cash and stock in 2022 [420]. - Business acquisitions in 2022 included shares issued for transaction fees totaling $1,000,000 [408]. Intellectual Property and Market Position - The company has over 185 patents issued or pending, reinforcing its industry-leading IP position in GaN Power ICs [323]. - Navitas is in mass production with 9 of the top 10 mobile OEMs, indicating strong market traction and demand for its GaN technology [322]. Future Outlook - Navitas expects continued growth in research and development expenses as it diversifies into new applications, particularly in home appliances, solar, data centers, and electric vehicles [344]. - The company expects to continue incurring net operating losses and negative cash flows, with anticipated increases in research and development, general and administrative expenses, and capital expenditures [355]. Accounting and Financial Reporting - The company has elected to use an extended transition period under the JOBS Act for complying with new accounting standards, which may affect comparability with other public companies [385]. - The company accounts for business combinations using the acquisition method, recognizing identifiable assets and liabilities at fair value [438]. - The company recognizes stock-based compensation expense based on the grant date fair value of the awards [446]. Liabilities and Debt - As of December 31, 2022, the company had no outstanding debt, compared to $6.9 million of total debt at the end of 2021 [358]. - The total lease liabilities as of December 31, 2022 amounted to $6.568 million, with current liabilities of $1.305 million and noncurrent liabilities of $5.263 million [495].