Innoviz Technologies .(US:INVZ)2023-03-09 21:36Financial Position - As of December 31, 2022, the company had approximately $186.2 million in cash and cash equivalents, short-term deposits, short-term restricted cash, and marketable securities[339]. - For the year ended December 31, 2022, the company reported a net cash used in operating activities of approximately $93.4 million, primarily due to a net loss of approximately $126.9 million[341]. - The company experienced a cash inflow from investing activities of approximately $125.4 million in 2022, mainly from the withdrawal of bank deposits of approximately $230.0 million[344]. - Cash provided by financing activities in 2022 was approximately $0.6 million, resulting from the exercise of employee stock options[346]. - The company funded its operations primarily from the proceeds of the Business Combination, amounting to approximately $370 million, during 2021 and 2022[339]. Future Outlook - The company expects to incur higher losses in future periods due to increased costs associated with ongoing research and development and commercialization efforts[349]. - The company plans to expand production capabilities for its LiDAR solutions and increase investment in research and development[352]. Revenue Recognition - As of December 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $9.6 million, expected to be recognized as revenue in future years[350]. - Approximately 98% of the company's revenues for the year ended December 31, 2022, were denominated in USD, with a 13.2% appreciation of the USD against the ILS during the same period[332][333]. - Revenue is recognized under ASC Topic 606, reflecting the consideration expected to be received for products and services upon transfer of control[372]. Research and Development - As of December 31, 2022, the research and development team comprised 297 employees, making it the largest department in the company[353]. - The company is developing a solid-state, eye-safe and cost-efficient ~905nm wavelength LiDAR solution, requiring expertise in various fields including optics and software engineering[354]. - The management's estimates for accrued research and development expenses are based on historical experience and known trends, with periodic confirmations for accuracy[361]. Supply Chain and Inventory - The supply chain is currently under strain due to high demand and capacity constraints, leading to decreased availability and increased prices for certain components[357]. - The company has sufficient component inventory to meet near-term customer demands and is procuring additional stock to mitigate future supply chain issues[358]. - Inventories are stated at the lower of cost or estimated net realizable value, with write-downs for obsolete inventory based on marketability and demand forecasts[376]. Competitive Position - The company owns a portfolio of intellectual property, including registered patents and trademarks, which is crucial for maintaining competitive advantage in LiDAR technology[355]. - The company relies on design and manufacturing know-how, technological innovations, and licensing opportunities to strengthen its competitive position[356]. Dividend Policy - The company does not anticipate paying any dividends in the foreseeable future, using 0% as the expected dividend yield[368].