Aeva(AEVA) - 2023 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION Financial Statements (Unaudited) Aeva reported total assets of $265,700 thousand, a $104,400 thousand net loss for nine months, and increased cash used in operations, with recent financing bolstering liquidity Condensed Consolidated Balance Sheets Aeva's balance sheet shows total assets decreased to $265,658 thousand, driven by reduced cash and marketable securities, with corresponding declines in liabilities and equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $40,550 | $67,420 | | Marketable securities | $193,141 | $256,392 | | Total current assets | $242,772 | $335,123 | | Total assets | $265,658 | $356,632 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $14,729 | $21,827 | | Total liabilities | $19,252 | $26,706 | | Total stockholders' equity | $246,406 | $329,926 | | Total liabilities and stockholders' equity | $265,658 | $356,632 | Condensed Consolidated Statements of Operations Aeva's statements of operations show Q3 2023 revenue decreased 41% to $810 thousand with a $33,238 thousand net loss, and a $104,367 thousand net loss for the nine-month period Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $810 | $1,374 | $2,701 | $4,004 | | Gross Loss | $(1,715) | $(1,391) | $(5,014) | $(1,127) | | Operating Loss | $(35,496) | $(37,802) | $(110,943) | $(107,560) | | Net Loss | $(33,238) | $(36,503) | $(104,367) | $(104,631) | | Net Loss Per Share | $(0.15) | $(0.17) | $(0.47) | $(0.48) | Condensed Consolidated Statements of Stockholders' Equity Stockholders' equity decreased to $246,406 thousand, primarily due to a $104,367 thousand net loss, partially offset by stock-based compensation - Total stockholders' equity decreased by $83,500 thousand during the first nine months of 2023, from $329,900 thousand to $246,400 thousand[16] - The primary drivers of the change in equity were a net loss of $104,400 thousand and stock-based compensation of $18,200 thousand for the nine months ended September 30, 2023[16][59] Condensed Consolidated Statements of Cash Flows Cash flow statements show net cash used in operating activities increased to $91,492 thousand, with a net decrease in cash and cash equivalents of $26,870 thousand for the nine-month period Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(91,492) | $(83,093) | | Net cash provided by investing activities | $64,532 | $134,479 | | Net cash (used in) provided by financing activities | $90 | $(311) | | Net (decrease) increase in cash | $(26,870) | $51,075 | | Ending cash and cash equivalents | $40,550 | $117,885 | Notes to the Condensed Financial Statements (Unaudited) Notes detail Aeva's FMCW 4D LiDAR technology, liquidity assessment, revenue concentration, and subsequent financing events including a $21,400 thousand private placement and $125,000 thousand standby equity agreement - The company designs a 4D LiDAR-on-chip using Frequency Modulated Continuous Wave (FMCW) sensing technology for applications in automated driving, industrial automation, and consumer electronics[22] - Management believes existing cash, cash equivalents, and marketable securities of $233,700 thousand are sufficient to fund operations and capital expenditures for at least 12 months from the financial statement issuance date[29] - In Q3 2023, two customers accounted for 40% and 11% of revenue, respectively. For the nine-month period, two customers accounted for 27% and 13% of revenue[36][37] - In November 2023, the company raised $21,400 thousand through a private placement of common stock with Sylebra Capital and Adage Capital Management[69] - The company entered into a Standby Equity Purchase Agreement with Sylebra, providing the right to sell up to $125,000 thousand of preferred stock, contingent on achieving certain commercial milestones[70][73] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses a 41% Q3 2023 revenue decline due to reduced engineering services, widened gross loss, and slightly lower operating expenses, with liquidity bolstered by $233,700 thousand in cash and recent financing Results of Operations Q3 2023 revenue decreased 41% to $810 thousand due to reduced engineering services, while the nine-month gross loss widened significantly to $5,014 thousand due to increased cost of revenue Q3 2023 vs Q3 2022 Financial Comparison (in thousands) | Account | Q3 2023 | Q3 2022 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenue | $810 | $1,374 | $(564) | (41)% | | Gross Loss | $(1,715) | $(1,391) | $(324) | 23% | | R&D Expenses | $23,787 | $26,123 | $(2,336) | (9)% | | Net Loss | $(33,238) | $(36,503) | $3,265 | (9)% | - The Q3 revenue decrease was primarily due to a reduction in activity related to non-recurring engineering services, partially offset by an increase in prototype unit sales[100] Nine Months 2023 vs 2022 Financial Comparison (in thousands) | Account | Nine Months 2023 | Nine Months 2022 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenue | $2,701 | $4,004 | $(1,303) | (33)% | | Cost of Revenue | $7,715 | $5,131 | $2,584 | 50% | | Gross Loss | $(5,014) | $(1,127) | $(3,887) | 345% | | Operating Loss | $(110,943) | $(107,560) | $(3,383) | 3% | - The increase in cost of revenue for the nine-month period was primarily due to higher manufacturing overhead costs from scaling third-party contract manufacturing and an increase in prototype sales[109] Liquidity and Capital Resources Aeva's liquidity includes $233,700 thousand in cash and marketable securities, an accumulated deficit of $414,600 thousand, and recent financing of $21,400 thousand private placement and $125,000 thousand standby equity - As of September 30, 2023, Aeva had cash, cash equivalents, and marketable securities totaling $233,700 thousand[116] - The company has an accumulated deficit of $414,600 thousand as of September 30, 2023, and expects to continue incurring operating losses due to investments in the business[118] - In November 2023, Aeva entered into agreements for a $21,400 thousand private placement and a standby equity purchase agreement for up to $125,000 thousand of preferred stock[119] - Net cash used in operating activities for the nine months ended September 30, 2023, was $91,500 thousand[120][121] Quantitative and Qualitative Disclosures About Market Risk No material changes to the company's market risk exposure, primarily interest rate fluctuations, have occurred since the 2022 Form 10-K filing - There has been no material change in the company's exposure to market risks since the 2022 Form 10-K[128] Controls and Procedures Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting - Based on an evaluation as of September 30, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[129] - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[130] PART II. OTHER INFORMATION Legal Proceedings The company is subject to ordinary course legal proceedings, recording liabilities when losses are probable and estimable - The company is subject to legal proceedings from time to time in the ordinary course of business and records liabilities for loss contingencies when probable and estimable[134] Risk Factors No material changes have occurred to the company's risk factors since the 2022 Form 10-K filing - No material changes have been made to the company's risk factors since the filing of the 2022 Form 10-K[135] Unregistered Sales of Equity Securities and Use of Proceeds Recent issuances of common stock, preferred stock, and warrants are exempt from Securities Act registration under Section 4(a)(2) and Regulation D - The issuance and sale of securities related to the recent private placement and financing agreements are exempt from registration under the Securities Act[136] Other Information No other information was reported for this item - None[139] Exhibits This section lists exhibits filed with the Form 10-Q, including corporate documents and officer certifications