Navitas Semiconductor (NVTS) - 2025 Q1 - Quarterly Report

Part I - Financial Information This section presents unaudited financial statements, management's analysis, market risks, and internal control procedures Item 1. Financial Statements (unaudited) Presents Navitas Semiconductor's unaudited consolidated financial statements, including balance sheets, operations, equity, cash flows, and notes Condensed Consolidated Balance Sheets Presents Navitas Semiconductor's condensed consolidated balance sheets for March 31, 2025, and December 31, 2024 | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Cash and cash equivalents | $75,132 | $86,737 | | Total current assets | $108,300 | $120,266 | | Total assets | $370,830 | $389,978 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Total current liabilities | $19,309 | $21,144 | | Total liabilities | $29,010 | $41,965 | | Total stockholders' equity | $341,820 | $348,013 | | Total liabilities and stockholders' equity | $370,830 | $389,978 | Condensed Consolidated Statements of Operations Details Navitas Semiconductor's condensed consolidated statements of operations for Q1 2025 and Q1 2024 | (In thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | NET REVENUES | $14,018 | $23,175 | | COST OF REVENUES | $8,711 | $13,660 | | Research and development | $12,668 | $20,229 | | Selling, general and administrative | $11,740 | $16,087 | | Amortization of intangible assets | $4,734 | $4,774 | | Restructuring expense | $1,469 | $— | | Total operating expenses | $30,611 | $41,090 | | LOSS FROM OPERATIONS | $(25,304) | $(31,575) | | Total other income, net | $8,837 | $27,964 | | LOSS BEFORE INCOME TAXES | $(16,467) | $(3,611) | | INCOME TAX PROVISION | $82 | $70 | | Equity method investment loss | $(280) | $— | | NET LOSS | $(16,829) | $(3,681) | | Basic net loss per share attributable to common stockholders | $(0.09) | $(0.02) | | Diluted net loss per share attributable to common stockholders | $(0.09) | $(0.02) | Condensed Consolidated Statements of Stockholders' Equity Presents Navitas Semiconductor's condensed consolidated statements of stockholders' equity for March 31, 2025 and 2024 | (In thousands, except shares) | Shares (March 31, 2025) | Total Stockholders' Equity (March 31, 2025) | Shares (March 31, 2024) | Total Stockholders' Equity (March 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Balance at December 31, 2024/2023 | 188,114 | $348,013 | 179,196 | $380,617 | | Issuance of common stock under employee stock option and stock award plans | 3,649 | $3,979 | 3,801 | $10,734 | | Costs for the issuance of common stock/At-the-market offering | — | $(346) | — | — | | Stock-based compensation expense | — | $7,003 | — | $10,247 | | Net loss | — | $(16,829) | — | $(3,681) | | Balance at March 31, 2025/2024 | 191,763 | $341,820 | 182,997 | $397,917 | Condensed Consolidated Statements of Cash Flow Presents Navitas Semiconductor's condensed consolidated statements of cash flow for Q1 2025 and Q1 2024 | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(13,533) | $(19,783) | | Net cash used in investing activities | $(41) | $(5,398) | | Net cash provided by financing activities | $949 | $2,024 | | NET INCREASE (DECREASE) IN CASH | $(12,625) | $(23,157) | | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $75,615 | $129,682 | Condensed Notes to Consolidated Financial Statements Provides detailed notes to Navitas Semiconductor's condensed consolidated financial statements, explaining key accounting policies 1. ORGANIZATION AND BASIS OF PRESENTATION Describes Navitas Semiconductor's business, fabless model, global operations, and recent At-The-Market Offering Agreement - Navitas Semiconductor Corporation designs, develops, and markets next-generation power semiconductors, including gallium nitride (GaN) power integrated circuits (ICs), silicon carbide (SiC) devices, and associated high-speed silicon system controllers and digital isolators, used in fast chargers, consumer electronics, data centers, solar products, and electric vehicles[24] - The Company operates a fabless business model, contracting manufacturing to partner suppliers globally, with operations across the US, Europe, and Asia[24] - On March 19, 2025, Navitas entered into an At-The-Market Offering Agreement with Jefferies LLC to sell up to $50.0 million of Class A common stock, with no shares sold as of March 31, 2025[26] 2. SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS Outlines Navitas Semiconductor's significant accounting policies and recent accounting pronouncements - The Company reclassified 'Dividend income' from 'interest income (expense), net' in prior period statements to conform to the current presentation, with no impact on net loss or retained earnings[30] - New accounting standards, ASU No. 2024-03 (expense disaggregation) and ASU 2023-09 (income tax disclosures), are being evaluated by the Company for future impact[31][32] - Navitas adopted ASC 2023-07, Segment Reporting, in 2024, requiring disclosure of segment profit/loss measures and significant segment expenses, as detailed in Note 14[33] 3. ACCOUNTS RECEIVABLE Details Navitas Semiconductor's accounts receivable, including gross amounts, unbilled receivables, and credit loss allowance | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Accounts receivable, gross | $11,970 | $12,578 | | Unbilled receivables | $938 | $1,539 | | Allowance for credit losses | $(481) | $(135) | | Accounts receivable, net | $12,427 | $13,982 | | (In thousands) | Allowance for Credit Losses | | :--- | :--- | | Balance at December 31, 2024 | $(135) | | Provision for credit losses | $(346) | | Accounts written-off | $— | | Balance at March 31, 2025 | $(481) | 4. INVENTORIES Presents Navitas Semiconductor's inventory breakdown, including raw materials, work-in-process, and finished goods | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | $2,545 | $2,422 | | Work-in-process | $12,979 | $10,465 | | Finished goods | $538 | $2,590 | | Total | $16,062 | $15,477 | 5. PROPERTY AND EQUIPMENT, NET Details Navitas Semiconductor's property and equipment, net, and associated depreciation expense | (In thousands) | March 31, 2