Aeva(US:AEVA)2025-11-07 01:19Financial Performance - Revenue increased by $1.3 million, or 59%, to $3.579 million for the three months ended September 30, 2025, compared to $2.250 million for the same period in 2024[139] - Revenue increased by $6.1 million, or 96%, to $12.5 million for the nine months ended September 30, 2025, compared to the same period in 2024[151] - Net income for the three months ended September 30, 2025, was $107.495 million, a significant increase compared to a net loss of $37.396 million for the same period in 2024[139] - Net loss increased by $3.999 million, or 3%, to $120.1 million for the nine months ended September 30, 2025[150] Cost and Expenses - Cost of revenue increased by $0.2 million, or 6%, to $3.149 million for the three months ended September 30, 2025, from $2.971 million for the same period in 2024[141] - Cost of revenue increased by $5.1 million, or 55%, to $14.4 million for the nine months ended September 30, 2025, primarily due to a $3.8 million loss on a joint development agreement[152] - Research and development expenses decreased by $5.0 million, or 18%, to $22.1 million for the three months ended September 30, 2025, from $27.1 million for the same period in 2024[142] - Research and development expenses decreased by $11.8 million, or 15%, to $66.5 million for the nine months ended September 30, 2025[153] - General and administrative expenses increased by $1.2 million, or 14%, to $9.6 million for the three months ended September 30, 2025, compared to $8.5 million for the same period in 2024[143] - General and administrative expenses decreased by $0.7 million, or 3%, to $24.8 million for the nine months ended September 30, 2025[154] - Selling and marketing expenses increased by $0.2 million, or 14%, to $1.8 million for the three months ended September 30, 2025, from $1.6 million for the same period in 2024[144] Fair Value and Liabilities - Change in fair value of warrant liability showed an increase of $69.787 million, resulting in a value of $68.524 million for the three months ended September 30, 2025, compared to a loss of $1.263 million in the same period in 2024[139] - Fair value gain on settlement of share subscription liability was $1.7 million during the nine months ended September 30, 2025[158] - The company assesses whether equity-linked instruments should be classified as liabilities or equity based on specific terms and applicable guidance under ASC 480 and ASC 815-40[173] - Equity-linked instruments classified as liabilities are recognized and measured at fair value at inception and each reporting period, with changes in fair value recorded as a component of fair value loss on share subscription liability[176] Cash Flow and Investments - Cash used in operating activities was $92.9 million for the nine months ended September 30, 2025[166] - Net cash provided by investing activities was $77.7 million for the nine months ended September 30, 2025[167] - As of September 30, 2025, the company had cash and cash equivalents and marketable securities totaling $48.9 million[164] - The company issued 3,509,719 shares of common stock at a price of $9.26 per share, resulting in gross proceeds of $32.5 million from the private placement closed on August 20, 2025[178] Market and Operational Outlook - The company anticipates fluctuations in revenue and gross margins as customers continue their research and development projects and begin to commercialize advanced driver assist and autonomous solutions[124] - Aeva is expanding its manufacturing capacity through third-party manufacturers to meet anticipated demand for its products[118] Risk Factors - The company is exposed to market risk primarily due to fluctuations in interest rates, with no material change in exposure reported since the previous disclosure[181] - The company evaluates anticipated losses on contracts when estimated contract costs exceed expected consideration, recognizing a provision for the entire anticipated losses as soon as the loss becomes evident[177]