Aeva(AEVA) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for Q1 2025, reporting $3.4 million revenue, a $34.9 million net loss, and $114.5 million total assets, alongside key disclosures Condensed Consolidated Financial Statements The company reported Q1 2025 revenue of $3.4 million and a net loss of $34.9 million, with total assets decreasing to $114.5 million and $30.8 million net cash used in operations Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $21,211 | $28,864 | | Marketable securities | $59,785 | $83,143 | | Total current assets | $91,780 | $123,300 | | Total assets | $114,549 | $147,489 | | Total current liabilities | $31,904 | $39,159 | | Total liabilities | $45,737 | $48,137 | | Total stockholders' equity | $68,812 | $99,352 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Revenue | $3,368 | $2,107 | | Gross profit (loss) | $310 | $(1,392) | | Operating loss | $(30,418) | $(37,344) | | Net loss | $(34,867) | $(35,326) | | Net loss per share, basic and diluted | $(0.64) | $(0.67) | Condensed Consolidated Statements of Cash Flows (in thousands) | Account | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Net cash used in operating activities | $(30,792) | $(30,962) | | Net cash provided by investing activities | $23,322 | $22,036 | | Net cash provided by (used in) financing activities | $(183) | $(16) | | Net decrease in cash and cash equivalents | $(7,653) | $(8,942) | | Ending cash and cash equivalents | $21,211 | $29,605 | Notes to the Condensed Financial Statements These notes detail accounting policies, a 1-for-5 reverse stock split, liquidity assertions including $81.0 million in cash and a $125 million equity agreement, revenue concentration, a $14.0 million litigation accrual, and a subsequent $32.5 million private placement - The company designs 4D LiDAR-on-chip technology; management believes existing cash, marketable securities ($81.0M total), and a Standby Equity Purchase Agreement will fund operations for at least 12 months, despite an accumulated deficit of $646.7 million[27][35] - In March 2024, the company completed a 1-for-5 reverse stock split; all historical share and per-share data have been retroactively adjusted[32] Revenue by Geography (in thousands) | Region | Q1 2025 Revenue (USD) | % of Revenue | | :--- | :--- | :--- | | North America | $3,157 | 94% | | EMEA | $52 | 2% | | Asia | $159 | 5% | | Total | $3,368 | 100% | - Revenue is highly concentrated, with two customers accounting for 59% and 19% of total revenue for the three months ended March 31, 2025[43] - The company has a Standby Equity Purchase Agreement with Sylebra, providing the right to sell up to $125 million of preferred stock; all conditions to request an advance were met as of March 31, 2025[56][59] - A settlement for the Delaware Stockholder Litigation resulted in an accrued liability of $14.0 million, with an expected insurance recovery of $2.5 million[86] - Subsequent to quarter-end, on May 13, 2025, the company agreed to sell 3,509,719 shares of common stock in a private placement for aggregate gross proceeds of approximately $32.5 million[93] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) This MD&A details Q1 2025 financial performance, showing 60% revenue growth to $3.4 million, a 15% decrease in operating expenses to $30.7 million, and a reduced operating loss, supported by $81.0 million in liquidity and a $125 million equity facility Results of Operations Q1 2025 revenue increased 60% to $3.4 million, gross profit turned positive, and total operating expenses decreased 15% to $30.7 million, narrowing the operating loss by 19% to $30.4 million Comparison of Results of Operations (in thousands) | Metric | Q1 2025 (USD) | Q1 2024 (USD) | Change ($) (USD) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $3,368 | $2,107 | $1,261 | 60% | | Gross Profit (Loss) | $310 | $(1,392) | $1,702 | (122)% | | Operating Expenses | $30,728 | $35,952 | $(5,224) | (15)% | | Loss from Operations | $(30,418) | $(37,344) | $6,926 | (19)% | | Net Loss | $(34,867) | $(35,326) | $459 | (1)% | - The $1.3 million (60%) increase in revenue was primarily due to an increase in the total number of units sold and an increase in non-recurring engineering revenue[119] - Research and development expenses decreased by $3.4 million (14%) due to lower payroll, stock-based compensation, and material expenses[121] - General and administrative expenses decreased by $1.2 million (14%) due to lower payroll, professional fees, and legal fees[122] - Other expense increased by $5.0 million, primarily due to an increase in the fair value of Series A warrant liabilities[125] Liquidity and Capital Resources As of March 31, 2025, the company held $81.0 million in cash and marketable securities, and with access to a $125 million equity facility, management believes liquidity is sufficient for at least 12 months, despite $30.8 million cash used in operations - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $81.0 million[129] - The company has a Standby Equity Purchase Agreement allowing it to sell up to $125.0 million of preferred stock to Sylebra until November 2026; conditions to draw from this facility were met as of March 31, 2025[127][129] - Management believes that current liquidity, including the financing facility, will be sufficient to fund operating and capital expenditures for at least 12 months from the report's issuance date[129] Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | Cash used in operating activities | $(30,792) | $(30,962) | | Cash provided by investing activities | $23,322 | $22,036 | | Cash provided by (used in) financing activities | $(183) | $(16) | Quantitative and Qualitative Disclosures About Market Risk The company's primary market risk exposure stems from interest rate fluctuations affecting cash and marketable securities, with no material changes reported since the 2024 Form 10-K filing - The company's primary market risk exposure is from interest rate fluctuations[138] - No material changes to market risk exposure were reported since the last annual report (2024 Form 10-K)[138] Controls and Procedures Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting identified - Based on an evaluation as of March 31, 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[139] - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[140] PART II. OTHER INFORMATION Legal Proceedings The company refers to Note 15 for legal proceedings, detailing a $14.0 million settlement for the Delaware Stockholder Litigation with an expected $2.5 million insurance recovery - For details on legal proceedings, the report refers to Note 15 of the Condensed Consolidated Financial Statements[144] - Note 15 discloses a $14.0 million settlement for the Delaware Stockholder Litigation, for which the company has accrued a liability and expects a $2.5 million insurance recovery[86] Risk Factors No material changes to the company's risk factors have been reported since the filing of its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes to the company's risk factors since the 2024 Form 10-K was filed[145] Other Items (Items 2, 3, 4, 5) The company reported no unregistered equity sales, no defaults on senior securities, no mine safety disclosures, and no Section 16 trading plan changes during the quarter - The company reported no unregistered sales of equity securities or use of proceeds during the quarter[146] - No defaults upon senior securities were reported[147] - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter[149]