State of Israel |
3674 |
Not applicable | ||
(State or other jurisdiction of incorporation or organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification Number) | ||
Valens Semiconductor Ltd. 8 Hanagar St. POB 7152 Hod Hasharon 4501309 Israel +972 (9) 762-6900 |
||||
(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices) |
Cogency Global Inc. 122 East 42nd Street, 18th Floor New York, NY 10168 (800) 221-0102 |
(Name, address, including zip code, and telephone number, including area code, of agent for service) |
Michael Kaplan Brian Wolfe Davis Polk & Wardwell LLP 450 Lexington Avenue New York, New York 10017 Tel: (212) 450-4000 |
Dror Heldenberg Keren Shmueli Sidi Valens Semiconductor Ltd. 8 Hanagar St. POB 7152 Hod Hasharon 4501309 Israel Tel: +972 (9) 762-6900 |
Shachar Hadar Assaf Naveh Ran Camchy Elad Ziv Meitar | Law Offices 16 Abba Hillel Silver Rd. Ramat Gan 52506, Israel Tel: (+972) (3) 610-3100 |
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F-1 |
• | The cyclicality of the semiconductor industry; |
• | The effects of health epidemics, such as the recent global COVID-19 pandemic; |
• | The impact of the global pandemic caused by COVID-19 on our customers’ budgets and on economic conditions generally, as well as the length, severity of and pace of recovery following the pandemic; |
• | Competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; |
• | If Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers’ demand; |
• | Disruptions in relationships with any one of Valens’ key customers; |
• | Any difficulty selling Valens’ products if customers do not design its products into their product offerings; |
• | Valens’ dependence on winning selection processes; |
• | Even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; |
• | Sustained yield problems or other delays in the manufacturing process of products; |
• | Our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; |
• | Our ability to timely adjust product prices to customers following price increase by the supply chain; |
• | Our ability to adjust our inventory level due to sudden reduction in demand due to inventory buffers accrued by customers; |
• | Our expectations regarding the outcome of any future litigation in which we are named as a party; |
• | Our ability to adequately protect and defend our intellectual property and other proprietary rights; |
• | The market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; |
• | Political, economic, governmental and tax consequences associated with our incorporation and location in Israel; |
• | Political, economic and governmental consequences associated with the Russia-Ukraine conflict; and |
• | The other matters described in the section titled “Risk Factors”. |
• | The cyclicality of the semiconductor industry; |
• | The effects of health epidemics, such as the recent global COVID-19 pandemic; |
• | Competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; |
• | If Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers’ demand; |
• | Disruptions in relationships with any one of Valens’ key customers; |
• | Any difficulty selling Valens’ products if customers do not design its products into their product offerings; |
• | Valens’ dependence on winning selection processes; |
• | Even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; |
• | Sustained yield problems or other delays in the manufacturing process of products; and |
• | The other matters described in the section titled “ Risk Factors |
Securities offered by the Selling Shareholders | We are registering the resale by the Selling Shareholders named in this prospectus, or their permitted transferees, of an aggregate of 12,500,000 ordinary shares and up to 3,330,000 ordinary shares underlying private placement warrants issued in a private placement to the Sponsor. In addition, we are registering up to 5,750,000 ordinary shares issuable upon exercise of the public warrants that were previously registered. | |
Terms of the Offering | The Selling Shareholders will determine when and how they will dispose of the ordinary shares registered under this prospectus for resale. | |
Shares outstanding prior to the offering | As of April 1, 2022, we had 98,197,717 ordinary shares issued and outstanding. | |
Shares outstanding after the offering | 107,277,717 ordinary shares (assuming the exercise for cash of warrants to purchase 9,080,000 ordinary shares). | |
Use of proceeds | We will not receive any of the proceeds from the sale of the warrants or ordinary shares by the Selling Shareholders except with respect to amounts received by us due to the exercise of the warrants. We expect to use the proceeds received from the exercise of the warrants, if any, for working capital and general corporate purposes. | |
New York Stock Exchange ticker symbol | Our ordinary shares and warrants are listed on the New York Stock Exchange under the symbols “VLN” and “VLNW.” |
• | Audio-Video market COVID-19 pandemic on some of our Audio-Video customers’ demand, particularly with respect to end users’ audio-video and multimedia products that are used in public areas and for public events. However, at the same time, we did receive an increase in demand for high-speed connectivity products driven by a need for products and infrastructure to support trends that emerged from the impact of the COVID-19 pandemic such as working from home, hybrid work models, hybrid educational models and remote healthcare. |
• | Automotive market COVID-19 to be highly dependent on its duration and severity. The foregoing impacts and other adverse effects on the automotive industry could have a material adverse effect on our business, financial condition, and results of operations, as well as our ability to execute our growth strategy. |
• | the effects of catastrophic and other disruptive events at our customers’ offices or facilities including, but not limited to, natural disasters, telecommunications failures, cyber-attacks, terrorist attacks, pandemics, epidemics or other outbreaks of infectious disease, including the current COVID-19 pandemic, breaches of security or loss of critical data; |
• | increased costs associated with potential disruptions to our customers’ supply chain and other manufacturing and production operations; |
• | the deterioration of our customers’ financial condition; |
• | delays and project cancellations as a result of design flaws in the products developed by our customers; the inability of customers to dedicate the resources necessary to promote and commercialize their products; |
• | the inability of our customers to adapt to changing technological demands resulting in their products becoming obsolete; and |
• | the failure of our customers’ products to achieve market success and gain broad market acceptance. |
• | the rescheduling, increase, reduction or cancellation of significant customer orders; |
• | the timing of customer qualification of our products and commencement of volume sales by our customers of systems that include our products; |
• | the timing and amount of research and development and sales and marketing expenditures; |
• | the rate at which our present and future customers and end users adopt our technologies in our target end markets; |
• | the timing and success of the introduction of new products and technologies by us and our competitors, and the acceptance of our new products by our customers; |
• | our ability to anticipate changing customer product requirements; |
• | our gain or loss of one or more key customers; |
• | the availability, cost and quality of materials and components that we purchase from third-party vendors and any problems or delays in the manufacturing, testing or delivery of our products; |
• | the availability of production capacity at our third-party facilities or other third-party subcontractors and other interruptions in the supply chain, including as a result of materials shortages, bankruptcies or other causes; |
• | supply constraints for and changes in the cost of the other components incorporated into our customers’ products; |
• | our ability to reduce the manufacturing costs of our products; |
• | fluctuations in manufacturing yields; |
• | the changes in our product mix or customer mix; |
• | the timing of expenses related to the acquisition of technologies or businesses; |
• | product rates of return or price concessions in excess of those expected or forecasted; |
• | the emergence of new industry standards; |
• | product obsolescence; |
• | unexpected inventory write-downs or write-offs; |
• | costs associated with litigation over intellectual property rights and other litigation; |
• | the length and unpredictability of the purchasing and budgeting cycles of our customers; |
• | loss of key personnel or the inability to attract qualified engineers; |
• | the quality of our products and any remediation costs; |
• | adverse changes in economic conditions in various geographic areas where we or our customers do business; |
• | the general industry conditions and seasonal patterns in our target end markets, particularly the automotive market and the audio-video market; |
• | other conditions affecting the timing of customer orders or our ability to fill orders of customers subject to export control or economic sanctions; and |
• | geopolitical events, such as war, threat of war or terrorist actions, or the occurrence of pandemics, epidemics or other outbreaks of disease, including the current COVID-19 pandemic, or natural disasters, and the impact of these events on the factors set forth above. |
• | changing customer requirements, resulting in an extended development cycle for the product; |
• | delay in the ramp-up of volume production of the customer’s products into which our solutions are designed; |
• | delay or cancellation of the customer’s product development plans; |
• | competitive pressures to reduce our selling price for the product; |
• | the discovery of design flaws, defects, errors or bugs in the products; |
• | lower than expected customer acceptance of the solutions designed for the customer’s products; |
• | lower than expected acceptance of our customers’ products; and |
• | higher manufacturing costs than anticipated. |
• | discontinue selling, importing or using certain technologies that contain the allegedly infringing intellectual property which could cause us to stop manufacturing certain products; |
• | seek to develop non-infringing technologies, which may not be feasible; |
• | incur significant legal expenses; |
• | pay substantial monetary damages to the party whose intellectual property rights we may be found to be infringing; and/or |
• | seek licenses to the infringed technology that may not be available on commercially reasonable terms, if at all. |
• | negative economic developments in economies around the world and the instability of governments, currently for example the sovereign debt situation in certain European countries; |
• | Social and political instability in a number of countries around the world, including the recent developments in the Middle East, and also including the threat of war, terrorist attacks in the United States, in Europe, Middle East and Africa (EMEA), or Asia Pacific (APAC), epidemics or civil unrest; |
• | pandemics or national and international environmental, nuclear or other disasters, which may adversely affect our workforce, as well as our local suppliers and customers; |
• | adverse changes in governmental policies, especially those affecting trade and investment; |
• | foreign currency exchange, in particular with respect to the U.S. dollar, and transfer restrictions, in particular in Greater China; and |
• | threats that our operations or property could be subject to nationalization and expropriation. |
• | negative fluctuations in our quarterly revenues and earnings or those of our competitors; |
• | pending sales into the market due to the sale of large blocks of shares, due to, among other reasons, the expiration of contractual lock–up with respect to significant amounts of our ordinary shares; |
• | shortfalls in our operating results compared to levels forecast by us or securities analysts; |
• | changes in our senior management; |
• | mergers and acquisitions by us or our competitors; |
• | technological innovations; |
• | the introduction of new products; |
• | the conditions of the securities markets, particularly in the semiconductors sector; and |
• | political, economic and other developments in Israel and worldwide. |
• | Israeli corporate law regulates mergers and requires that a tender offer be effected when more than a specified percentage of shares in a company are purchased; |
• | Israeli corporate law requires special approvals for certain transactions involving directors, officers or significant shareholders and regulates other matters that may be relevant to these types of transactions; |
• | Israeli corporate law does not provide for shareholder action by written consent for public companies, thereby requiring all shareholder actions to be taken at a general meeting of shareholders; |
• | our amended and restated articles of association divide our directors into three classes, each of which is elected once every three years; |
• | our amended and restated articles of association generally require a vote of the holders of a majority of our outstanding ordinary shares entitled to vote present and voting on the matter at a general meeting of shareholders (referred to as simple majority), and the amendment of a limited number of provisions, such as the provision dividing our directors into three classes, requires a vote of the holders of 65% of the total voting power of our shareholders; |
• | our amended and restated articles of association do not permit a director to be removed except by a vote of the holders of at least 65% of the total voting power of our shareholders; and |
• | our amended and restated articles of association provide that director vacancies may be filled by our board of directors. |
• | the realization of any of the risk factors presented in this prospectus; |
• | actual or anticipated differences in Valens’ estimates, or in the estimates of analysts, for Valens’ revenues, earnings, results of operations, level of indebtedness, liquidity or financial condition; |
• | additions and departures of key personnel; |
• | failure to comply with the requirements of the NYSE; |
• | failure to comply with the Sarbanes-Oxley Act or other laws or regulations; |
• | publication of research reports about Valens; |
• | the performance and market valuations of other similar companies; |
• | failure of securities analysts to initiate or maintain coverage of Valens, changes in financial estimates by any securities analysts who follow Valens or Valens’ failure to meet these estimates or the expectations of investors; |
• | new laws, regulations, subsidies, or credits or new interpretations of existing laws applicable to Valens; |
• | commencement of, or involvement in, litigation involving Valens; |
• | broad disruptions in the financial markets, including sudden disruptions in the credit markets; |
• | speculation in the press or investment community; |
• | actual, potential or perceived control, accounting or reporting problems; |
• | changes in accounting principles, policies and guidelines; and |
• | other events or factors, including those resulting from infectious diseases, health epidemics and pandemics (including the ongoing COVID-19 public health emergency), natural disasters, war, acts of terrorism or responses to these events. |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Revenues |
70,684 | 56,910 | ||||||
% Gross margin |
71.6 | % | 76.4 | % | ||||
Net loss |
(26,534 | ) | (19,635 | ) | ||||
Net loss margin Adjusted |
(37.5 | )% | (34.5 | )% | ||||
EBITDA(1) Adjusted |
(16,098 | ) | (16,366 | ) | ||||
EBITDA Margin(1) |
(22.8 | )% | (28.8 | )% | ||||
Cash and cash equivalents and short-term deposits |
174,359 | 61,570 | ||||||
Book to bill |
1.7 | 1.1 |
(1) | Non-GAAP measure. Refer to “Non-GAAP Financial Measures” below for an explanation and reconciliation to closest equivalent GAAP metrics. |
• | Although depreciation expense is a non-cash charge, the assets being depreciated may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; |
• | Adjusted EBITDA excludes share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy; |
• | Adjusted EBITDA does not reflect, to the extent applicable for a period presented: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or if applicable principal payments on debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us; and the expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results. |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Net loss |
(26,534 | ) | (19,635 | ) | ||||
Adjusted to exclude the following: |
||||||||
Financial income, net |
(929 | ) | (3,300 | ) | ||||
Income Taxes |
407 | 164 | ||||||
Equity in earnings of investee |
(10 | ) | (17 | ) | ||||
Depreciation and amortization |
1,099 | 1,093 | ||||||
Stock-based compensation expenses |
9,869 | 5,329 | ||||||
Adjusted EBITDA |
(16,098 | ) | (16,366 | ) |
1. | The VA7000 chipset family product which is currently composed of two products: transmitter and receiver, is the first on the market to implement the MIPI A-PHYSM standard for in-vehicle sensor connectivity. Valens was the first in the automotive industry to ship engineering samples compliant with the new MIPI A-PHY standard, as early as in December 2021, to selected automotive OEMs and Tier 1s, prospective customers and partners. |
2. | The VS3000 product family, intended for the Audio-Video market, that enables faster implementation for the customer triggered by its rich features and higher level of integration. The research and development expenses were focused on the silicon design and fabrication, as well as the development of the firmware required for the product. Another phase of investment was the design of the evaluation and reference system that is necessary in order to ease our customers’ integration effort, helping to accelerate and shorten their development cycle, and Valens’ time to market; |
3. | The VA6003 product, which is the second generation of Valens’ 1GbE symmetric product family, a derivative of VA6000 that is currently in mass production. The VA6003 brings significant power reduction, with very efficient cost performance. It is designed to fit advanced infotainment use-cases and next generation of telecommunication units and smart antennas, requiring low power and resilient connectivity. In addition, Valens continues to develop, in collaboration with Stoneridge Inc., a vision solution for tractor-trailer connectivity, based on VA6000. |
4. | Investments in the VA6000 Audio-Video version. We customized the VA6000 automotive solution to tailor it to the Audio-Video market requirements. The expenses were focused on customizing the DSP firmware to achieve longer cable distance as well as building the necessary evaluation and reference boards to help customers embed this product more quickly into their products. |
• | Audio-Video plug-and-play |
• | Automotive in-vehicle connectivity for advanced car architectures, realizing the vision of connected and autonomous cars. |
Year Ended December 31, |
||||||||||||||||
2021 |
2020 |
$ Change |
% Change |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Revenues |
||||||||||||||||
Audio-Video |
62,801 | 54,843 | 7,958 | 14.5 | % | |||||||||||
Automotive |
7,883 | 2,067 | 5,816 | 281.4 | % | |||||||||||
Consolidated |
70,684 | 56,910 | 13,774 | 24.2 | % | |||||||||||
Cost of revenues |
(20,105 | ) | (13,432 | ) | (6,673 | ) | 49.7 | % |
Year Ended December 31, |
||||||||||||||||
2021 |
2020 |
$ Change |
% Change |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Gross profit (loss) |
||||||||||||||||
Audio-Video |
48,909 | 43,609 | 5,300 | 12.2 | % | |||||||||||
Automotive |
1,670 | (131 | ) | 1,801 | 1374.8 | % | ||||||||||
Consolidated |
50,579 | 43,478 | 7,101 | 16.3 | % | |||||||||||
Operating expenses |
||||||||||||||||
Research and development expenses: |
||||||||||||||||
Audio-Video |
(14,054 | ) | (13,116 | ) | (938 | ) | 7.2 | % | ||||||||
Automotive |
(32,821 | ) | (31,609 | ) | (1,212 | ) | 3.8 | % | ||||||||
Consolidated |
(46,875 | ) | (44,725 | ) | (2,150 | ) | 4.8 | % | ||||||||
Sales and marketing expenses |
||||||||||||||||
Audio-Video |
(6,944 | ) | (6,625 | ) | (319 | ) | 4.8 | % | ||||||||
Automotive |
(7,270 | ) | (7,032 | ) | (238 | ) | 3.4 | % | ||||||||
Consolidated |
(14,214 | ) | (13,657 | ) | (557 | ) | 4.1 | % | ||||||||
General and administrative expenses: |
||||||||||||||||
Audio-Video |
(8,322 | ) | (4,064 | ) | (4,258 | ) | 104.8 | % | ||||||||
Automotive |
(8,234 | ) | (3,820 | ) | (4,414 | ) | 115.5 | % | ||||||||
Consolidated |
(16,556 | ) | (7,884 | ) | (8,672 | ) | 110.0 | % | ||||||||
Total operating expenses |
(77,645 | ) | (66,266 | ) | (11,379 | ) | 17.2 | % | ||||||||
Operating income (loss) before financial income, net |
||||||||||||||||
Audio-Video |
19,589 | 19,804 | (215 | )% | (1.1 | )% | ||||||||||
Automotive |
(46,655 | ) | (42,592 | ) | (4,063 | ) | 9.5 | % | ||||||||
Consolidated |
(27,066 | ) | (22,788 | ) | (4,278 | ) | 18.8 | % | ||||||||
Financial income, net |
929 | 3,300 | (2,371 | ) | (71.8 | )% | ||||||||||
Loss before income taxes |
(26,137 | ) | (19,488 | ) | (6,649 | ) | 34.1 | % | ||||||||
Income taxes |
(407 | ) | (164 | ) | (243 | ) | 148.2 | % | ||||||||
Loss after income taxes |
(26,544 | ) | (19,652 | ) | (6,892 | ) | 35.1 | % | ||||||||
Equity in earnings of investee |
10 | 17 | (7 | ) | (41.2 | )% | ||||||||||
Net loss |
(26,534 | ) | (19,635 | ) | (6,899 | ) | 35.1 | % |
1. | Increase in the revenue contribution of the automotive segment that is characterized by a lower gross margin rate, compared to the audio-video segment. |
2. | The impact of product mix within the audio-video segment. i.e., the increase in revenues derived from the new Stello ™ chipset family, that its cost structure is still not optimized, compared to other legacy products sold by the audio-video business unit. |
3. | The impact of the cost increase by our supply-chain vendors and the time-gap until the application of respective price increase to our customers. |
1. | In light of the business opportunities created by the need for remote communication solutions in the audio-video segment, as well as the need for a wide-range of a product portfolio to comply with the new MIPI A-PHY standard and customers’ expectations, we accelerated projects’ execution which required more resources, such as additional engineers, development tools, tape outs, new IP blocks etc. |
2. | The increase in payroll expenses paid primarily to the research & development team, triggered by the shortage of skilled engineers and the highly competitive employment market. |
3. | In addition, the 2021 payroll expenses increased compared to 2020, due to the devaluation of the US dollar compared to the NIS, which is the currency used to pay our engineering staff in Israel. |
Year Ended December 31, |
||||||||
2021 |
2020 |
|||||||
(dollars in thousands) |
||||||||
Cash Flow Data: |
||||||||
Net cash used in operating activities |
(21,609 | ) | (19,606 | ) | ||||
Net cash provided by (used in) investing activities |
(84,163 | ) | 28,314 | |||||
Net cash provided by financing activities |
135,431 | 406 | ||||||
Effect of exchange rate changed on cash and cash equivalents |
816 | 1,646 | ||||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
30,475 | 10,760 |
2022 |
2023 |
2024 |
Thereafter |
|||||||||||||
Operating Leases |
$ | 1,821 | $ | 348 | $ | 30 | $ | 0 | ||||||||
Non-cancellable purchase obligations: |
||||||||||||||||
To supply chain vendors |
39,897 | 10,694 | 0 | 0 | ||||||||||||
To intellectual property vendors (including development tools) |
4,226 | 2,337 | 0 | 0 | ||||||||||||
Total contractual obligations |
$ | 45,944 | $ | 13,379 | $ | 30 | $ | 0 |
(i) | Identify the contract(s) with a customer; |
(ii) | Identify the performance obligations in the contract; |
(iii) | Determine the transaction price; |
(iv) | Allocate the transaction price to the performance obligations in the contract; |
(v) | Recognize revenue when (or as) the performance obligation is satisfied. |
• | We recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are included in sales and marketing expenses. |
• | When a contract with a customer includes a material right to acquire future goods or services that are similar to the original goods or services in the contract and are provided in accordance with the terms of the original contract, we allocate the transaction price to the optional goods or services by reference to the goods or services expected to be provided and the corresponding expected consideration. |
• | We apply the practical expedient of allowing us to disregard the effects of a financing component if the period between when we transfer the promised services to the customer and when the customer pays for the services will be one year or less. |
Year Ended December 31, | ||||
2021 |
2020 | |||
Volatility |
46.7%-50.7% |
48.2% | ||
Risk-free interest |
0.61%-1.74% |
0.42%-1.69% | ||
Dividend yield |
0% | 0% | ||
Expected Term (in years) |
6-10 |
6-10 | ||
Portion of Forfeited Options (based on management estimations) |
4.5% | 4.5% |
• | the prices, rights, preferences, and privileges of our preferred shares relative to our ordinary share; |
• | our operating and financial performance; |
• | current business conditions and projections; |
• | the likelihood of achieving a liquidity event, such as an initial public offering or sale of our company, including the timing of such events, given prevailing market conditions; |
• | any adjustment necessary to recognize a lack of marketability of the Valens Ordinary Shares underlying the granted options; and |
• | the market performance of comparable publicly traded companies. |
(1) | quantities of finished goods and work in process required for the fulfillment of customers’ demand. |
(2) | the date of manufacturing of the inventories (“date code”) and the Company’s ability to sell such inventories prior to their expiry date as well as their applicable net realizable value. In 2021 there was no inventory write-down, and in 2020, the inventory write-down totaled to $73 thousands (representing 0.54% of the 2020 cost of goods sold). |
(3) | potential schedule delays by customers may affect inventories valuation. |
(4) | the need to increase inventories due to the shortage in the global semiconductor market, as well as the increase of lead time from the supply chain, together with the need to maintain sufficient inventory levels to ensure competitive performance, are balanced against the risk of inventory obsolescence due to rapidly changing technology and customer requirements. |
• | Validated as baseline for different connectivity standards, primarily the MIPI A-PHY standard due to the technology’s superior performance. |
• | Multi-gigabit bandwidth with zero-latency and error-free links. |
• | Years ahead of competitors from a technical perspective. |
• | Significant first-mover advantage, setting the industry standard in the two large and growing markets—audio-video and automotive. We set the standard for long-range connectivity in the audio-video market with our HDBaseT technology and intend to repeat this success in the even larger automotive industry with our A-PHY compliant chipsets. Our solution utilizes the technology that underpins the MIPI A-PHY standard for in-car video connectivity, which has also been adopted by the IEEE standard association extending our potential market reach. In December 2021, we were the first to ship MIPI A-PHY standard chipsets to leading automotive OEMs and Tier 1s. |
• | Established technological leadership, strong intellectual property, and system-level expertise. We believe our technology leadership is based on our strong intellectual property portfolio. Our core competence is in our superior physical (PHY) layer that enables us to provide the most optimized connectivity solution for any application at any speed. Additionally, we believe our integration capabilities coupled with our system-level knowledge, resulting from close customer collaboration, enables us to understand our customers’ specific system requirements and more quickly and effectively develop advanced solutions to meet their long-term needs. |
• | Leading market position in audio-video connectivity. We currently serve the major players in the audio-video connectivity space. These companies drive the market trends and we are there to support them in leading the change. COVID-19 has created new trends, which we believe are here to stay. It has increased society’s reliance on audio- video connectivity through remote work, education and healthcare. We believe that our leading market position strengthens our ability to continue serving this core market and capitalize on growing demand for connectivity solutions, also in adjacent markets that have risen, such as industrial and transportation, and that will emerge in the future. |
• | Our ability to leverage technologies and products from the two business units. Re-purposing of automotive solutions in the audio-video markets. We are seeing a growing demand from our non-automotive customers for the advanced connectivity products that we designed for automotive applications, allowing us to rapidly expand into new lucrative verticals (such as industrial, enterprise, medical, smart city and smart home), that require high-bandwidth, and zero latency connectivity. We are doing so with minimal R&D investment, by re-purposing our existing automotive and audio-video products to new applications. This expands our offering to an even wider range of customers and applications, and thereby accelerates the return on our development investment. Our ability to leverage technologies and products from the two business units will accelerate our expansion efficiently. |
• | Strong relationships with leading automotive OEMs and Tier 1 suppliers. We currently supply components in mass volume to Daimler, a leading automotive OEM, which embeds our chipsets in multiple platforms across Mercedes-Benz cars, through various Tier 1 suppliers such as Bosch, Continental, Harman, and Molex, and we continue to strengthen these relationships. As ADAS and ADS systems become mainstream, we believe that our strong connections in the automotive space will enable us to achieve success and grow our automotive business. We have also partnered with Stoneridge, a leading truck technology manufacturer to solve a tractor trailer connectivity challenge. |
• | Proven management team: We have a strong track record of execution and an experienced management team. Our executive management team’s experience in effectively guiding companies through various industry cycles and technology transitions provides us with steady, reliable leadership, uniquely capable of identifying strong investments, executing through change, and maintaining stability during market uncertainty. |
• | Expand our addressable market, in large, growing, and disruptive industries, by introducing our technology, creating and becoming the de facto choice of the new industry standards, thereby attracting dominant industry players, to establish a broad echo system and ultimately increase the overall addressable market. |
• | Valens’ HDBaseT technology is a leading standard for long-reach, high performance connectivity. The HDBaseT Alliance now boasts approximately 200 member companies promoting the use of this technology in the audio-video market. Valens helps the HDBaseT Alliance to strengthen its relationships with end customers, safeguard the quality of HDBaseT-enabled products, and educate the market on the technology by generating continuous awareness and demand for these products. HDBaseT provides the most optimized solution for a myriad of verticals and applications, addressing the needs of the audio-video market, including long distance transmission, convergence, low-cost and simplicity. |
• | Expand into other audio-video adjacent markets. We intend to continue expanding our offerings in audio-video adjacent markets including the industrial (camera sensors and computer vision systems), remote healthcare (medical imaging, diagnostic and surgical equipment, operating room video) and transportation spaces. We believe that as the need for higher connectivity bandwidth and lower cost alternatives for these applications increases, there will be significant opportunity to expand our business and customer base. |
• | The MIPI A-PHY standard, announced in September 2020, was developed to address a need for higher bandwidth and performance requirements. Existing analog-based technologies can no longer meet these requirements as they lack digital signal processing (DSP) capabilities, are not scalable, and are incapable of increasing speed over longer cables. The MIPI A-PHY standard is optimized for the implementation of in- |
vehicle connectivity for high bandwidth applications. The specification reduces wiring cost and weight, as high- speed data, control data, and power all share the same physical wiring. This enables designers to optimize systems for performance, cost, and complexity required by their use cases and provides scalability and flexibility to meet a broad range of speed and design needs. The MIPI A-PHY standard serves as the foundation of “software defined vehicle” architectures and systems designed to decouple software stacks form the hardware infrastructure and simplify the integration of various sensors and displays, while also incorporating functional safety and security. |
• | The new MIPI A-PHY standard was developed by the MIPI A-PHY Working Group; Valens was a key contributor to the definition of this standard, which is largely based upon Valens technology. We believe that the adoption of this connectivity standard by OEMs and Tier 1s, as well as other automotive technology suppliers will position A-PHY-based A-PHY will be driven in part by the fact that available legacy solutions for in-vehicle video connectivity are proprietary, while the market is looking to deploy standard-based products. |
• | Valens’ second automotive generation, the VA7000 product family, is the first on the market to comply with the recent MIPI A-PHY standard, positioning us to capture automotive opportunities for ADAS, ADS and other surround-sensor applications, including cameras, RADARs, and LIDARs. The VA7000 product family is a hardware-based solution, optimized for asymmetric links with no software stack. It guarantees a high-performing, simplified architecture, leading to a reduction in wire harness complexity and lower total system costs. The current VA7000 family has been designed to support a wide range of bandwidth levels as defined in the MIPI A-PHY standard. |
• | Grow our audio-video and automotive market offerings. In the audio-video market, we are continuously increasing the silicon integration of key features required to simplify the total solution we offer. Valens intends to support higher video resolutions (e.g. 8K) and develop extension products for advanced USB generations (USB 3.2), advanced network topologies and a variety of new interfaces in our next generation products. In automotive, we intend to continue to provide solutions as the market undergoes powerful structural change in favor of greater electronic and data-processing capabilities, particularly in the application of our products to ADAS and ADS systems. We believe our focus on meeting or exceeding industry standards as the baseline for product development increases our opportunity in the automotive market as customers look for trusted suppliers to deliver standard- backed, highly reliable, safety-focused solutions for this rapidly growing market. We intend to introduce complimentary products to support end-to-end |
• | Continue to improve our gross margins through product innovation and cost optimization. We strive to improve our profitability by rapidly introducing new products with value-added features (e.g. the Valens Stello ™ (VS3000), that captures more of the customers’ products “silicon budget” by higher level of features integration within our product, and reducing our manufacturing costs through our asset-light manufacturing model. We will continue to improve our product mix by developing new products for growth markets where we believe we can generate higher ASPs and/or gross margins. We believe we can reduce our manufacturing costs by leveraging the advanced manufacturing capabilities of our strategic supply chain suppliers, implementing more cost- effective packaging technologies, and leveraging both internal and external assembly and test capacity to lower our operating costs, enhance reliability of supply, and support our continued growth. |
• | Expand our global presence. We sell our products globally, both directly and through a wide range of local distributors. We intend to continue strengthening our relationships with our existing customers and distributors, while also enabling our channel partners to support demand creation and fulfillment for smaller customers. We believe we can efficiently scale our business to accelerate growth by enabling our channels to become an extension of our demand generation and customer support efforts. Our operations are global and we intend to continue expanding our presence worldwide to serve the needs of customers in additional geographies. We are currently investing in select regions in North America, Europe and multiple countries in the APAC region. |
Audio-Video |
Automotive | |||
CHIPSETS | • VS100 ™ family – Valens’ first chipsets, which revolutionized the audio-video market by enabling transmission of uncompressed ultra-high-definition video, audio, control and power, with near-zero latency, over a single LAN cable, according to the HDBaseT Alliance’s Spec 1.0.• VS2000 ™ family (Colligo™ )—Second generation of HDBaseT chipsets (Spec 2.0), supporting the transmission of ultra-HD video & audio, Ethernet, controls, USB 2.0, and power, over either a LAN cable or fiber cable, with near- zero latency. The family enables point-to-point, • VS3000 ™ family (Stello™ )—The first and only ASIC in the industry that enables the long-distance transmission of uncompressed 4K@60Hz 4:4:4. It enables transmission of HDMI 2.0 (18Gbps) including HDCP, based on Spec 3.0 of HDBaseT technology, convergence of audio & video, 1Gbps Ethernet, USB 2.0, controls and power, with near- zero latency, over a category cable (e.g. Cat 6A).• VA6000 ™ family—Small-form factor chipset; a cost- effective and flexible solution that enables the convergence of multiple interfaces, including audio (I2S, S/PDIF), Ethernet, USB 2.0 and controls with near-zero latency, over a single unshielded twisted pair cable. |
• VA6000 ™ family – Valens’ first generation of chipsets for Automotive. The highest bandwidth long-reach symmetric solution deployed in vehicles today, supporting the aggregation of multiple interfaces for feature-rich infotainment and telematics systems. The chipsets are designed to deliver resilient, multi-gig, long-distance connectivity over the simplest wiring and connector infrastructure. During December 2021, we taped out VA6003, a derivative product of the VA6000, which brings significant power reduction, with a very efficient cost performance. It is designed to fit advanced infotainment use-cases and next generation of telecommunication units and smart antennas, requiring low power and resilient connectivity.• VA7000 ™ family – Second generation of Valens’ automotive chipsets, which supports connectivity of CSI-2-based in-vehicle wires for up to 15 meters (50 feet), with 4 inline connectors. First product on the market that complies with the new MIPI A-PHY standard, and first to support multi-gig connectivity over low- cost unshielded cables and connectors. | ||
APPLICATIONS | • Signage – distribution from content source to large high-resolution displays, projectors, video walls. • Collaboration hubs and cameras used in video conferencing systems. |
• AD & ADAS systems (e.g. RADARs, LIDARs, Cameras, Sensor hubs, zonal controllers, Driver monitoring systems, etc.). • Body & chassis, door, truck and trailer connectivity. | ||
USE CASES | • Distribution—video and audio distribution products such as matrixes, switches, extenders used in Enterprise, Government, and Education, etc. applications. • Remote healthcare, including high resolution medical imaging and video distribution of medical equipment to large displays. • Transportation—Infotainment displays in mass transportation like train and bus platforms as well as inside the train/bus. • Education – typically distribution of teacher laptop to projector; can also include USB extension for web camera, portable storage, etc. • Remote operation, such as KVM (Keyboard, Video, Mouse) extension; very popular in data centers, and industrial machinery operations, enabling a remote operator to a control PC/machine. |
• Infotainment: display and multimedia box, digital cockpit controllers. • ECU to ECU connectivity. • Internal cameras. |
• | Risk Averse and accurate planning – Even before the shortage, Valens took a conservative approach to inventory management. The trigger for the purchase of inventory for Valens has not exclusively been based on customer purchase orders, but rather on a combination of our assessments of demand based on purchase orders and forecasts of demand from our sales teams. |
• | Capturing capacity allocation from the supply chain vendors – Amid the shortage, we have made necessary adjustments to our supply and demand planning, with the goal of capturing capacity allocation within the supply chain vendors. In order to do so, during 2021, we have placed longer- term purchase orders for raw materials and manufacturing services, even into 2022. We believe that the inventory levels incurred as of the end of 2021 will be consumed during 2022. |
Name |
Age |
Position | ||
Executive Officers |
||||
Gideon Ben Zvi | 61 | Chief Executive Officer and Director | ||
Dror Heldenberg | 53 | Chief Financial Officer | ||
Gabi Shriki | 52 | SVP, Head of Audio Video Business | ||
Gideon Kedem | 61 | SVP, Head of Automotive Business | ||
Eyran Lida | 56 | Chief Technology Officer and Co-Founder | ||
Directors |
||||
Peter Mertens | 60 | Chairman of the Board | ||
Yahal Zilka | 64 | Director | ||
Dr. Eyal Kishon | 62 | Director | ||
Dror Jerushalmi | 60 | Director | ||
Moshe Lichtman | 63 | Director | ||
Michael Linse | 47 | Director | ||
Ker Zhang | 57 | Director | ||
Adi Toledano Yarel | 47 | Director | ||
Gideon Ben-Zvi |
61 | Chief Executive Officer and Director |
• | the Class I directors will be Eyal Kishon, Moshe Lichtman and Dror Jerushalmi, their terms will expire at the annual general meeting of shareholders to be held in 2022; |
• | the Class II directors, will Yahal Zilka, Michael Linse and Gideon Ben Zvi, their terms will expire at our annual meeting of shareholders to be held in 2023; and |
• | the Class III directors will be Adi Yarel Toledano, Ker Zhang and Peter Mertens, their term will expire at our annual meeting of shareholders to be held in 2024. |
• | retaining and terminating our independent auditors, subject to ratification by the board of directors, and in the case of retention, subject to ratification by the shareholders; |
• | pre-approving audit and non-audit services to be provided by the independent auditors and related fees and terms; |
• | overseeing the accounting and financial reporting processes of our company; |
• | managing audits of our financial statements; |
• | preparing all reports as may be required of an audit committee under the rules and regulations promulgated under the Exchange Act; |
• | reviewing with management and our independent auditor our annual and quarterly financial statements prior to publication, filing, or submission to the SEC; |
• | recommending to the board of directors the retention and termination of the internal auditor, and the internal auditor’s engagement fees and terms, in accordance with the Companies Law, as well as approving the yearly or periodic work plan proposed by the internal auditor; |
• | reviewing with our general counsel and/or external counsel, as deemed necessary, legal and regulatory matters that may have a material impact on the financial statements; |
• | identifying irregularities in our business administration, inter alia, by consulting with the internal auditor or with the independent auditor, and suggesting corrective measures to the board of directors; |
• | reviewing policies and procedures with respect to transactions (other than transactions related to compensation or terms of services) between the Company and officers and directors, affiliates of officers or directors, or transactions that are not in the ordinary course of the Company’s business and deciding whether to approve such acts and transactions if so required under the Companies Law; and |
• | establishing procedures for handling employee complaints relating to the management of our business and the protection to be provided to such employees. |
• | making recommendations to the board of directors with respect to the approval of the compensation policy for office holders and, once every three years, with respect to any extensions to a compensation policy that was adopted for a period of more than three years; |
• | reviewing the implementation of the compensation policy and periodically making recommendations to the board of directors with respect to any amendments or updates to the compensation policy; |
• | resolving whether to approve arrangements with respect to the terms of office and employment of office holders; and |
• | exempting, under certain circumstances, a transaction with our Chief Executive Officer from the approval of our shareholders. |
• | recommending to our board of directors for its approval a compensation policy, in accordance with the requirements of the Companies Law, as well as other compensation policies, incentive-based compensation plans, and equity-based compensation plans, overseeing the development and implementation of such policies, and recommending to our board of directors any amendments or modifications the committee deems appropriate, including as required under the Companies Law; |
• | reviewing and approving the granting of options and other incentive awards to our Chief Executive Officer and other executive officers, including reviewing and approving corporate goals and objectives relevant to the compensation of our Chief Executive Officer and other executive officers, including evaluating their performance in light of such goals and objectives; |
• | approving and exempting certain transactions regarding office holders’ compensation pursuant to the Companies Law; and |
• | administering our equity-based compensation plans, including without limitation, approving the adoption of such plans, amending and interpreting such plans, and the awards and agreements issued pursuant thereto, and making and determining the terms of awards to eligible persons under the plans. |
• | the majority of such Valens ordinary shares is comprised of shares held by shareholders who are not controlling shareholders and shareholders who do not have a personal interest in such compensation policy; or |
• | the total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in the compensation policy voting against the policy does not exceed two percent (2%) of the aggregate voting rights in the company. |
• | the education, skills, experience, expertise, and accomplishments of the relevant office holder; |
• | the office holder’s position and responsibilities; |
• | prior compensation agreements with the office holder; |
• | the ratio between the cost of the terms of employment of an office holder and the cost of the employment of other employees of the company, including employees employed through contractors who provide services to the company; in particular the ratio between such cost to the average and median salary of such employees of the company, as well as possible impacts of compensation disparities between them on the work relationships in the company; |
• | if the terms of employment include variable components, the possibility of reducing variable components at the discretion of the board of directors and setting a limit on the value of non-cash variable equity-based components; and |
• | if the terms of employment include severance compensation, the term of employment or office of the office holder, the terms of the office holder’s compensation during such period, the company’s performance during such period, the office holder’s individual contribution to the achievement of the company goals and the maximization of its profits, and the circumstances under which the office holder is leaving the company. |
• | with regards to variable components: |
• | with the exception of office holders who report to the chief executive officer, a means of determining the variable components on the basis of long-term performance and measurable criteria; provided that the company may determine that an immaterial part of the variable components of the compensation package of an office holder shall be awarded based on non-measurable criteria, or if such amount is not higher than three months’ salary per annum, taking into account such office holder’s contribution to the company; or |
• | the ratio between variable and fixed components, as well as the limit of the values of variable components at the time of their payment, or in the case of equity-based compensation, at the time of grant. |
• | a condition under which the office holder will refund to the company, according to conditions to be set forth in the compensation policy, any amounts paid as part of the office holder’s terms of employment, if such amounts were paid based on information later to be discovered to be wrong, and such information was restated in the company’s financial statements; |
• | the minimum holding or vesting period of variable equity-based components to be set in the terms of office or employment, as applicable, while taking into consideration long-term incentives; and |
• | a limit to retirement grants. |
• | overseeing and assisting our board in reviewing and recommending nominees for election of directors; |
• | assessing the performance of the members of our board; |
• | overseeing the Company’s ESG policies, programs, and strategies; and |
• | establishing and maintaining effective corporate governance policies and practices, including, but not limited to, developing and recommending to our board a set of corporate governance guidelines applicable to our business. |
• | at least a majority of the shares held by all shareholders who are not controlling shareholders and do not have a personal interest in such matter, present and voting at such meeting, vote in favor of the inconsistent provisions of the compensation package, excluding abstentions; or |
• | the total number of shares of non-controlling shareholders and shareholders who do not have a personal interest in such matter voting against the inconsistent provisions of the compensation package does not exceed two percent (2%) of the aggregate voting rights in the Company. |
Information Regarding the Covered Executive (1) |
||||||||||||||||||||
(thousands of dollars) | ||||||||||||||||||||
Name and Principal Position (2) |
Base Salary |
Benefits and Perquisites (3) |
Bonus Payments |
Equity-Based Compensation (4) |
Total |
|||||||||||||||
Gideon Ben Zvi (5) |
368 | 72 | 798 | 5,539 | 6,777 | |||||||||||||||
Dror Heldenberg |
260 | 56 | 784 | 398 | 1,498 | |||||||||||||||
Gideon Kedem |
238 | 51 | 31 | 387 | 707 | |||||||||||||||
Gabi Shriki |
240 | 53 | 76 | 103 | 472 | |||||||||||||||
Eyran Lida |
232 | 48 | 30 | 158 | 468 |
(1) | In accordance with Israeli law, all amounts reported in the table are in terms of cost to our company, as recorded in our financial statements. |
(2) | All current executive officers listed in the table are full-time employees. Cash compensation amounts denominated in currencies other than the U.S. dollar were converted into U.S. dollars at the average conversion rate for the year ended December 31, 2021. |
(3) | Amounts reported in this column include benefits and perquisites, including those mandated by applicable law. Such benefits and perquisites may include, to the extent applicable to each executive, payments, contributions and/or allocations for savings funds, pension, severance, vacation, car or car allowance, medical insurances and benefits, risk insurances (such as life, disability and accident insurances), convalescence pay, payments for social security, tax gross-up payments and other benefits and perquisites consistent with our guidelines. |
(4) | Amounts reported in this column represent the expense recorded in our financial statements for the year ended December 31, 2021 with respect to equity-based compensation. Assumptions and key variables used in the calculation of such amounts are described in Note 12 to our audited consolidated financial statements, which are included in this prospectus. The relevant amounts underlying the equity awards granted to our officers during 2021, will continue to be expensed in our financial statements over a four-year period during the years 2022-2025 on account of the 2021 grants in similar annualized amounts. All equity-based compensation grants to our Covered Executives were approved by the company’s compensation committee and board of directors. |
(5) | Gideon Ben-Zvi’s Equity-Based Compensation includes an amount related to the acceleration of Ordinary Shares in the total amount of 3,396 thousand Dollars, with respect to the listing of the Company as a public Company in the New York Stock Exchange (NYSE). |
• | 1% of the outstanding Ordinary Shares as of the last day of the immediately preceding fiscal year, determined on a fully diluted basis; or |
• | such smaller amount as our board of directors may determine. |
• | information on the business advisability of a given action brought for the office holder’s approval or performed by virtue of the office holder’s position; and |
• | all other important information pertaining to such action. |
• | refrain from any act involving a conflict of interest between the performance of the office holder’s duties in the company and the office holder’s other duties or personal affairs; |
• | refrain from any activity that is competitive with the business of the company; |
• | refrain from exploiting any business opportunity of the company for the purpose of gaining a personal advantage for the office holder or others; and |
• | disclose to the company any information or documents relating to the company’s affairs which the office holder received as a result of the office holder’s position. |
• | an amendment to the company’s articles of association; |
• | an increase of the company’s authorized share capital; |
• | a merger; or |
• | interested party transactions that require shareholder approval. |
• | a financial liability imposed on him or her in favor of another person pursuant to a judgment, including a settlement or arbitrator’s award approved by a court. However, if an undertaking to indemnify an office holder with respect to such liability is provided in advance, then such an undertaking must be limited to events which, in the opinion of the board of directors, can be foreseen based on the company’s activities when the undertaking to indemnify is given, and to an amount or according to criteria determined by the board of directors as reasonable under the circumstances, and such undertaking shall detail the above mentioned events and amount or criteria; |
• | reasonable litigation expenses, including legal fees, incurred by the office holder (1) as a result of an investigation or proceeding instituted against him or her by an authority authorized to conduct such investigation or proceeding, provided that (i) no indictment was filed against such office holder as a result of such investigation or proceeding; and (ii) no financial liability, such as a criminal penalty, was imposed upon him or her as a substitute for the criminal proceeding as a result of such investigation or proceeding or, if such financial liability was imposed, it was imposed with respect to an offense that does not require proof of criminal intent; and (2) in connection with a monetary sanction; |
• | reasonable litigation expenses, including legal fees, incurred by the office holder or imposed by a court in proceedings instituted against him or her by the company, on its behalf or by a third-party or in connection with criminal proceedings in which the office holder was acquitted or as a result of a conviction for an offense that does not require proof of criminal intent; and |
• | expenses, including reasonable litigation expenses and legal fees, incurred by an office holder in relation to an administrative proceeding instituted against such office holder, or certain compensation payments made to an injured party imposed on an office holder by an administrative proceeding, pursuant to certain provisions of the Israeli Securities Law, 5728-1968 (the “Israeli Securities Law”); and |
• | expenses, including reasonable litigation expenses and legal fees, incurred by an office holder in relation to an administrative proceeding instituted against such office holder pursuant to certain provisions of the Israeli Economic Competition Law, 5748-1988. |
• | a breach of the duty of loyalty to the company, to the extent that the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice the Company; |
• | a breach of the duty of care to the company or to a third-party, including a breach arising out of the negligent conduct of the office holder; |
• | a financial liability imposed on the office holder in favor of a third-party; |
• | a financial liability imposed on the office holder in favor of a third-party harmed by a breach in an administrative proceeding; and |
• | expenses, including reasonable litigation expenses and legal fees, incurred by the office holder as a result of an administrative proceeding instituted against him or her, pursuant to certain provisions of the Israeli Securities Law. |
• | An Israeli company may not indemnify or insure an office holder against any of the following: |
• | a breach of the duty of loyalty, except to the extent that the office holder acted in good faith and had a reasonable basis to believe that the act would not prejudice the company; |
• | a breach of the duty of care committed intentionally or recklessly, excluding a breach arising out of the negligent conduct of the office holder; |
• | an act or omission committed with intent to derive illegal personal benefit; or |
• | a fine, monetary sanction, or forfeit levied against the office holder. |
• | amendments to the articles of association; |
• | appointment, terms of service and termination of services of auditors; |
• | appointment of directors, including external directors (if applicable); |
• | approval of certain related party transactions; |
• | increases or reductions of authorized share capital; |
• | a merger; and |
• | the exercise of the board of director’s powers by a general meeting, if the board of directors is unable to exercise its powers and the exercise of any of its powers is required for proper management of the company. |
• | at any time while the warrants are exercisable; |
• | upon not less than 30 days’ prior written notice of redemption to each warrant holder; |
• | if, and only if, the reported last sale price of the Valens ordinary shares equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations), for any 20 trading days within a 30-day trading period ending on the third business day prior to the notice of redemption to warrant holders (the “Force-Call Provision”), and |
• | if, and only if, there is a current registration statement in effect with respect to the Valens ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. |
• | each person who is, or is expected to be, the beneficial owner of more than 5% of the outstanding shares of any series of our voting ordinary shares; |
• | each of our current executive officers and directors; |
• | all executive officers and directors of the Company, as a group, upon the closing of the Business Combination. |
Number of Shares Beneficially Owned |
Percentage of Outstanding Shares |
|||||||
5% Holders: |
||||||||
Genesis Partners III L.P. (1) |
14,683,299 | 14.95 | % | |||||
Magma Venture Capital (2) |
19,140,612 | 19.49 | % | |||||
Linse Capital LLC (3) |
11,190,619 | 11.40 | % | |||||
GIC Private Limited (4) |
5,000,000 | 5.09 | % | |||||
PTK Holdings LLC (5) |
6,605,000 | 6.73 | % | |||||
Name and Address of Beneficial Owners Executive Officers and Directors |
||||||||
Gideon Ben-Zvi (6) |
2,035,677 | 2.07 | % | |||||
Dror Heldenberg (7) |
755,517 | ( | *) | |||||
Gabi Shriki (8) |
383,088 | ( | *) | |||||
Gideon Kedem (9) |
139,132 | ( | *) | |||||
Eyran Lida (10) |
1,512,530 | 1.54 | % | |||||
Peter Mertens (11) |
192,743 | ( | *) | |||||
Yahal Zilka (12) |
19,147,792 | 19.50 | % | |||||
Eyal Kishon (13) |
16,189,358 | 16.49 | % | |||||
Dror Jerushalmi (14) |
2,912,210 | 2.97 | % | |||||
Moshe Lichtman (15) |
3,497,024 | 3.56 | % | |||||
Michael Linse (16) |
11,197,853 | 11.40 | % | |||||
Ker Zhang (17) |
8,441 | ( | *) | |||||
Adi Toledano Yarel (18) |
8,441 | ( | *) | |||||
All Executive Officers and Directors as a Group |
57,979,806 |
* Less than 1%. |
(1) | Based on information reported on a Schedule 13G filed on February 9, 2022, consists of 14,683,299 ordinary shares held by Genesis Partners III L.P. Genesis Partners III L.P. is controlled by Eyal Kishon. Kishon otherwise disclaims beneficial ownership over the shares beneficially owned by Genesis Partners III L.P. The address for Genesis Partners III L.P. is Ackerstein Towers, Bldg B, 4th Flr., Herzliya, Israel, 46733. |
(2) | Based on information reported on a Schedule 13G filed on February 8, 2022, consists of 2,526,281 ordinary shares held by Magma Venture Capital II (Israel), L.P., 12,817,180 ordinary shares held by Magma Venture Capital II L.P., 293,001 ordinary shares held by Magma Venture Capital II CEO Fund, L.P. and 3,504,096 ordinary shares held by Valens Co Investment Fund L.P. Magma Venture Capital II (Israel), L.P., Magma Venture Capital II L.P. and Magma Venture Capital II CEO Fund, L.P. are controlled by their general partner, Magma Venture Capital Management II LP. Valens Co Investment Fund L.P. is controlled by its co-general partner, Magma Venture Capital Management II L.P. Magma Venture Capital Management II LP is controlled by Magma Venture Partners General Partner Ltd, the directors of which are Yahal Zilka and Modi Rosen. The address for Magma Venture Capital II (Israel), L.P, Magma Venture Capital II L.P., Magma Venture Capital II CEO Fund, L.P. and Valens Co Investment Fund L.P. is 22 Rothschild Blvd., Tel Aviv, 6688218. |
(3) | Based on information reported on a Schedule 13G filed on February 11, 2022, consists of 11,190,619 shares held by Linse Capital VAL, LLC (“Linse VAL”). Linse Capital LLC (“Linse Capital”) is the manager of Linse VAL. Michael Linse (“Linse”) is the managing director of Linse Capital. Mr. Linse otherwise disclaims beneficial ownership over the shares beneficially owned by Linse Capital. The address for Linse Capital LLC is 53 Calle Palmeras, Suite 601, San Juan, Puerto Rico 00901. |
(4) | Based on information reported on a Schedule 13G filed on October 12, 2021, GIC Private Limited (“GIC”) is a private limited company incorporated in Singapore. GIC is wholly-owned by the Government of Singapore (“GoS” and was set up with the sole purpose of managing Singapore’s foreign reserves for GoS and the Monetary Authority of Singapore (“MAS”). Under the investment management agreement with GoS, GIC has been given the sole discretion to exercise the voting rights attached to, and the disposition of, any shares managed on behalf of GoS. As such, GIC has the sole power to vote and power to dispose of the 3,666,271 securities beneficially owned by it. GIC shares power to vote and dispose of 1,333,729 securities beneficially owned by it with MAS. The Government of Singapore disclaims beneficial ownership of such shares. The address for GIC Private Limited is 168, Robinson Road, #37-01, Capital Tower, Singapore 068912. |
(5) | Based on information reported on a Schedule 13G filed on January 31, 2021, consists of 6,605,000 Ordinary Shares. The address of PTK Holdings LLC (the “Sponsor”) is 4601 Wilshire Boulevard Suite 240, Los Angeles, CA 90010-3883. |
(6) | Consists of 2,035,677 Ordinary Shares underlying options to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(7) | Consists of 755,517 Ordinary Shares underlying options to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(8) | Consists of 383,088 Ordinary Shares underlying options to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(9) | Consists of 139,132 Ordinary Shares underlying options to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(10) | Consists of 852,413 Ordinary Shares and 660,117 Ordinary Shares underlying options to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(11) | Consists of 192,743 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(12) | Consists of 7,234 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. In addition, Yahal Zilka is Managing Partner of Magma Venture Capital and may be deemed to share voting and dispositive power of the shares held by Magma Venture Capital described above. Furthermore, Mr. Zilka is a General Partner of Valens Co-Investment Fund and may be deemed to share voting and dispositive power of the 3,504,096 shares held by Valens Co-Investment Fund. Mr. Zilka otherwise disclaims beneficial ownership over the shares beneficially owned by Magma Venture Capital and Valens Co-Investment Fund L.P. |
(13) | Consists of 7,234 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. In addition, Eyal Kishon is a General Partner of Genesis Partners III L.P. and may be deemed to share voting and dispositive power of the shares held by Genesis Partners III L.P. described above. Furthermore, Mr. Kishon is a General Partner of Valens S.P.V. and may be deemed to share voting and dispositive power of the 1,498,825 shares held by Valens S.P.V. Mr. Kishon otherwise disclaims beneficial ownership over the shares beneficially owned by Genesis Partners III L.P. and Valens S.P.V. |
(14) | Consists of 1,106,428 Ordinary Shares and 1,805,782 Ordinary Shares underlying options to acquire Ordinary Shares exercisable with 60 days of April 1, 2022. |
(15) | Consists of 7,234 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. In addition, MR. Moshe Lichtman is Managing Partner of IGP Connectivity Solutions and may be deemed to share voting and dispositive power of the 3,489,790 shares held by IGP Connectivity Solutions described above. Mr. Lichtman otherwise disclaims beneficial ownership over the shares beneficially owned by Magma Venture Capital and Valens Co-Investment Fund L.P. |
(16) | Consists of 7,234 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. In addition, Michael Linse is the founder and Managing Director of Linse Capital LLC and may be deemed to share voting and dispositive power of the shares held by Linse Capital LLC described above. Mr. Linse otherwise disclaims beneficial ownership over the shares beneficially owned by Linse Capital described above. |
(17) | Consists of 8,441 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
(18) | Consists of 8,441 Ordinary Shares underlying options and RSUs to acquire Ordinary Shares exercisable within 60 days of April 1, 2022. |
• | 1% of the total number of Valens ordinary shares then outstanding; or |
• | the average weekly reported trading volume of the Valens ordinary shares during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. Sales by affiliates of Valens under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information about Valens. |
Ordinary Shares |
||||||||||||||||
Name |
Number Beneficially Owned Prior to Offering |
Number Registered for Sale Hereby |
Number Beneficially Owned After Offering |
Percent Owned After Offering |
||||||||||||
Atman Fund II LP(1) |
500,000 | 500,000 | — | — | ||||||||||||
Capital TEN II Inc.(2) |
125,000 | 125,000 | — | — | ||||||||||||
Capital TEN Inc.(3) |
125,000 | 125,000 | — | — | ||||||||||||
Chicony Overseas Inc.(4) |
300,000 | 300,000 | — | — | ||||||||||||
Cypress Frontline Venture Fund LP(5) |
350,000 | 350,000 | — | — | ||||||||||||
GIC Private Limited(6) |
5,000,000 | 5,000,000 | — | — | ||||||||||||
Hang Zhou Jiu Zhou Shun Chuang(7) |
550,000 | 550,000 | — | — | ||||||||||||
Holman Sharp Investment Corp.(8) |
100,000 | 100,000 | — | — | ||||||||||||
Jih Sun Securities Co., Ltd.(9) |
300,000 | 300,000 | — | — | ||||||||||||
M&F Fund I LP(10) |
300,000 | 300,000 | — | — | ||||||||||||
Ming-Shan Lee(11) |
300,000 | 300,000 | — | — | ||||||||||||
Mivtach Shamir Technologies (2000) Ltd.(12) |
150,000 | 150,000 | — | — | ||||||||||||
MTKC Global Holdings Co. Limited(13) |
1,846,010 | 1,000,000 | — | — | ||||||||||||
Multi-Dimensional Connectivity Limited(14) |
100,000 | 100,000 | — | — | ||||||||||||
Ondine Victory Limited(15) |
100,000 | 100,000 | — | — | ||||||||||||
PTK Holdings LLC(16) |
6,605,000 | 3,730,000 | — | — | ||||||||||||
Right Chance Inc.(17) |
400,000 | 400,000 | — | — | ||||||||||||
Rony Lerner(18) |
150,000 | 150,000 | — | — | ||||||||||||
Superior Intent Co. Ltd(19) |
50,000 | 50,000 | — | — | ||||||||||||
T&M Investment Company(20) |
150,000 | 150,000 | — | — | ||||||||||||
Waldo Holdings 2(21) |
300,000 | 300,000 | — | — | ||||||||||||
Yelin Lapidot Provident Funds Management(22) |
300,000 | 300,000 | — | — | ||||||||||||
Yue Feng Investment Holding Limited(23) |
1,000,000 | 1,000,000 | — | — | ||||||||||||
Yuyao Yangming Zhixing Investment(24) |
250,000 | 250,000 | — | — | ||||||||||||
Ziv Aviram(25) |
200,000 | 200,000 | — | — |
(1) | The address of Atman Fund II LP is 44F, Champion Tower, 3 Garden Road, Central, Hong Kong. |
(2) | The address of Capital Ten II Inc. is Room 2, 13F., No. 76, Sec. 2, Dunhua S. Road., Da’an District, Taipei City, China Republic of Taiwan. |
(3) | The address of Capital Ten Inc. is Room 2, 13F., No. 76, Sec. 2, Dunhua S. Road., Da’an District, Taipei City, China Republic of Taiwan. |
(4) | The address of Chicony Overseas Inc. is P.O. Box 3152, Road Town Tortola, Road Town, British Virgin Islands. |
(5) | The address of Cypress Frontline Venture Fund LP is Room 1401A, 14/F, Lee Garden, 18 Hysan Avenue, Cayseway Bay, Hong Kong. |
(6) | The address of GIC Private Limited is 168, Robinson Road, #37-01, Capital Tower, Singapore, 068912. |
(7) | The address of Hang Zhou Jiu Zhou Shun Chuang Investment Fund LLP is No.27-29, Shunke Road, Yuyao, Zhejiang, China. |
(8) | The address of Holman Sharp Investment Corp. is 23 Floor -1, No. 2, Sec. 3, Roosevelt Road, Taipei City, China Republic of Taiwan. |
(9) | The address of Jih Sun Securities Co., Ltd. is Kaia Capital, 16F, No. 316, Sec. 6, Civic Boulevard, Xinyi District, Taipei City, China Republic of Taiwan. |
(10) | The address of M&F Fund I LP is 4F, No.13-19, Sec. 6, Min-Quan East Road, Neihu District, Taipei City, China Republic Of Taiwan. |
(11) | The address of Ming-Shan Lee is 3F., No. 308, Sec. 2, Bade Road, Taipei, China Republic of Taiwan. |
(12) | The address of Mivtach Shamir Technologies (2000) Ltd. is 27 Habarzel Street, Tel Aviv, Israel. |
(13) | Consists of 846,010 held by Cloud Ranger Limited, a subsidiary of MTKC Global Holdings Co. Limited and 1,000,000 ordinary shares issued in a private placement. The address of MTKC Global Holdings Co. Limited is No. 1. Dusing 1st Road, Hsinchu Science Park, Hsinchu City, China Republic of Taiwan. |
(14) | The address of Multi-Dimensional Connectivity Limited is 17/F, Winsan Tower, 98 Thomson Road, Wanchai, Hong Kong. |
(15) | The address of Ondine Victory Limited is #2228, Shui On Plaza, No. 333 Huaihai Middle Road, Shanghai, China. |
(16) | Consists of 2,875,000 ordinary shares, 400,000 ordinary shares issued in a private placement and 3,330,000 ordinary shares underlying warrants to purchase ordinary shares. The address of PTK Holdings LLC is 4601 Wilshire Boulevard Suite 240, Los Angeles, CA 90010-3883. |
(17) | The address of Right Chance Inc. is No. 1. Dusing 1st Rd., Hsinchu Science Park, Hsinchu City, China Republic of Taiwan. |
(18) | The address of Rony Lerner is 5B Oscar Shindler Street (Apt. #10), Tel Aviv, Israel. |
(19) | The address of Superior Intent Co. Ltd is Room 2, 13F., No. 76, Sec. 2, Dunhua S. Road., Da’an District, Taipei City, China Republic of Taiwan. |
(20) | The address of T&M Investment Company is 15F.-4, No. 142, Sec. 3, Minquan E. Road, Songshan Dist., Taipei City, China Republic of Taiwan. |
(21) | The address of Waldo Holdings 2 is 33 Hashoshanim, 36056 Kiryat Tivon, Israel. |
(22) | The address of Yelin Lapidot Provident Funds Management Ltd. is 50 Dizingof Street, Tel Aviv, Israel. |
(23) | The address of Yue Feng Investment Holding Limited is Room 2002, 20F, Block A, Truth Plaza, 7th Zhichun Road, Haidian District, Beijing, China. |
(24) | The address of Yuyao Yangming Zhixing Investment Center (Limited Partnership) is No.27-29, Shunke Road, Yuyao, Zhejiang, China. |
(25) | The address of Ziv Aviram is 36 Rothschild Street, Tel Aviv, Israel |
• | banks, insurance companies, and certain other financial institutions; |
• | regulated investment companies and real estate investment trusts; |
• | brokers, dealers or traders in securities that use a mark to market method of accounting; |
• | tax-exempt organizations or governmental organizations; |
• | U.S. expatriates and former citizens or long-term residents of the United States; |
• | persons holding Valens ordinary shares as part of a hedge, straddle, constructive sale, or other risk reduction strategy or as part of a conversion transaction or other integrated investment; |
• | persons subject to special tax accounting rules as a result of any item of gross income with respect to Valens ordinary shares being taken into account in an applicable financial statement; |
• | persons that actually or constructively own 5% or more (by vote or value) of the outstanding Valens ordinary shares; |
• | “controlled foreign corporations,” “passive foreign investment companies,” and corporations that accumulate earnings to avoid U.S. federal income tax; |
• | S corporations, partnerships or other entities or arrangements treated as partnerships or other flow-through entities for U.S. federal income tax purposes (and investors therein); |
• | U.S. Holders having a functional currency other than the U.S. dollar; |
• | persons who hold or received Valens ordinary shares pursuant to the exercise of any employee stock option or otherwise as compensation; and |
• | tax-qualified retirement plans. |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity taxable as a corporation) created or organized under the laws of the United States, any state thereof, or the District of Columbia; |
• | an estate, the income of which is subject to U.S. federal income tax regardless of its source; or |
• | a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more “United States persons” (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a “United States person” (within the meaning of Section 7701(a)(30) of the Code) for U.S. federal income tax purposes. |
• | either (a) the ordinary shares are readily tradable on an established securities market in the United States (such as the NYSE, where the Valens ordinary shares are listed), or (b) Valens is eligible for the benefits of a qualifying income tax treaty with the United States that includes an exchange of information program; |
• | Valens is neither a PFIC (as discussed below under below under “— Passive Foreign Investment Company Rules |
• | the U.S. Holder satisfies certain holding period requirements; and |
• | the U.S. Holder is not under an obligation to make related payments with respect to positions in substantially similar or related property. |
• | at least 75% of its gross income for such year is passive income; or |
• | at least 50% of the value of its assets (generally based on an average of the quarterly values of the assets) during such year is attributable to assets that produce passive income or are held for the production of passive income (including cash). |
• | the excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the Valens ordinary shares; |
• | the amount allocated to the current taxable year, and any taxable years in the U.S. Holder’s holding period prior to the first taxable year in which Valens is a PFIC, will be treated as ordinary income; and |
• | the amount allocated to each other taxable year will be subject to the highest tax rate in effect for individuals or corporations, as applicable, for each such year and the interest charge generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. |
• | Amortization of the cost of purchased patent, rights to use a patent, and know-how, which are used for the development or advancement of the Industrial Enterprise, over an eight-year period, commencing on the year in which such rights were first exercised; |
• | Under limited conditions, an election to file consolidated tax returns with controlled Israeli Industrial Companies; 137 Expenses related to a public offering are deductible in equal amounts over three years commencing on the year of the offering. Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental authority. |
• | The expenditures are approved by the relevant Israeli government ministry, determined by the field of research; |
• | The research and development must be for the promotion of the company; and |
• | The research and development is carried out by or on behalf of the company seeking such tax deduction. |
• | the company’s average R&D expenses in the three years prior to the current tax year must be greater than or equal to the average of 7% of its total revenue or exceed NIS 75 million per year; and |
• | the company must also satisfy one of the following conditions: (1) the full salary of the lowest between at least 20% of the company’s overall workforce, or at least 200 employees, was recorded and paid as R&D expenses in the company’s financial statements; (2) a venture capital investment of an amount of at least NIS 8 million was previously made in the company; or (3) a growth in sales by an average of 25% over the three years preceding the tax year (provided transactions revenue of over NIS 10 million for the said years); (4) a growth in workforce by an average of 25% over the three years preceding the tax year (provided that the company employed at least 50 employees in the said years) |
• | ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers; |
• | block trades in which the broker-dealer will attempt to sell the shares as agent, but may position and resell a portion of the block as principal to facilitate the transaction; |
• | purchases by a broker-dealer as principal and resale by the broker-dealer for their account; |
• | an exchange distribution in accordance with the rules of the applicable exchange; |
• | privately negotiated transactions; |
• | short sales effected after the date the registration statement of which this prospectus is a part is declared effective by the SEC; |
• | through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise; |
• | broker-dealers may agree with the Selling Shareholders to sell a specified number of such shares at a stipulated price per share; |
• | a combination of any such methods of sale; and |
• | any other method permitted by applicable law. |
Page |
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2 | ||||
AUDITED CONSOLIDATED FINANCIAL STATEMENTS |
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3 | ||||
5 | ||||
6 | ||||
7 | ||||
8 |
Tel-Aviv, Israel |
/s/ Kesselman & Kesselman | |
March 2, 2022 |
Certified Public Accountants (Isr.) | |
A member firm of PricewaterhouseCoopers International Limited |
December 31 |
||||||||||||
Note |
2021 |
2020 |
||||||||||
Assets |
||||||||||||
CURRENT ASSETS: |
||||||||||||
Cash and cash equivalents |
||||||||||||
Short-term deposits |
||||||||||||
Trade accounts receivable |
||||||||||||
Prepaid expenses |
||||||||||||
Other current assets |
||||||||||||
Inventories |
3 | |||||||||||
|
|
|
|
|||||||||
TOTAL CURRENT ASSETS |
||||||||||||
LONG-TERM ASSETS: |
||||||||||||
Property and equipment, net |
4 | |||||||||||
Other assets |
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|
|
|
|
|||||||||
TOTAL LONG-TERM ASSETS |
||||||||||||
|
|
|
|
|||||||||
TOTAL ASSETS |
||||||||||||
|
|
|
|
December 31 |
||||||||||||
Note |
2021 |
2020 |
||||||||||
Liabilities, redeemable convertible preferred shares and Shareholders’ Equity (Deficit) |
||||||||||||
CURRENT LIABILITIES: |
||||||||||||
Trade accounts payable |
||||||||||||
Accrued compensation |
||||||||||||
Other current liabilities |
5 | |||||||||||
|
|
|
|
|||||||||
TOTAL CURRENT LIABILITIES |
||||||||||||
LONG-TERM LIABILITIES: |
||||||||||||
Warrants liability |
7 | — | ||||||||||
Forfeiture Shares, |
8 | — | ||||||||||
Other long-term liabilities |
||||||||||||
|
|
|
|
|||||||||
TOTAL LONG-TERM LIABILITIES |
||||||||||||
COMMITMENTS AND CONTINGENT LIABILITIES |
6 | |||||||||||
|
|
|
|
|||||||||
TOTAL LIABILITIES |
||||||||||||
REDEEMABLE CONVERTIBLE PREFERRED SHARES |
9 | |||||||||||
Series A Preferred Shares, NIS par value: |
— | |||||||||||
Series B-1 Preferred Shares, NIS |
— | |||||||||||
Series B-2 Preferred Shares, NIS |
— | |||||||||||
Series C Preferred Shares, NIS |
— | |||||||||||
Series D Preferred Shares NIS |
— | |||||||||||
Series E Preferred Shares, NIS |
— | |||||||||||
|
|
|
|
|||||||||
TOTAL REDEEMABLE CONVERTIBLE PREFERRED SHARES |
— |
|||||||||||
SHAREHOLDERS’ EQUITY (DEFICIT): |
||||||||||||
Ordinary shares, |
9 | |||||||||||
Additional paid-in capital |
||||||||||||
Accumulated deficit |
( |
) | ( |
) | ||||||||
|
|
|
|
|||||||||
TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) |
( |
) | ||||||||||
|
|
|
|
|||||||||
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
||||||||||||
|
|
|
|
Year ended December 31 |
||||||||||||||||
Note |
2021 |
2020 |
2019 |
|||||||||||||
REVENUES |
||||||||||||||||
COST OF REVENUES |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
GROSS PROFIT |
||||||||||||||||
OPERATING EXPENSES: |
||||||||||||||||
Research and development expenses |
( |
) | ( |
) | ( |
) | ||||||||||
Sales and marketing expenses |
( |
) | ( |
) | ( |
) | ||||||||||
General and administrative expenses |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL OPERATING EXPENSES |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
OPERATING LOSS |
( |
) | ( |
) | ( |
) | ||||||||||
Financial income, net |
12 | |||||||||||||||
|
|
|
|
|
|
|||||||||||
LOSS BEFORE INCOME TAXES |
( |
) | ( |
) | ( |
) | ||||||||||
INCOME TAXES |
14 | ( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||||
LOSS AFTER INCOME TAXES |
( |
) | ( |
) | ( |
) | ||||||||||
Equity in earnings of investee |
||||||||||||||||
|
|
|
|
|
|
|||||||||||
NET LOSS |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|||||||||||
Basic and diluted net loss per Ordinary Share |
13 | ( |
) | ( |
) | ( |
) | |||||||||
|
|
|
|
|
|
|||||||||||
Weighted average number of shares used in computing net loss per Ordinary Share |
||||||||||||||||
|
|
|
|
|
|
Ordinary shares |
Additional paid- in capital |
Accumulated deficit |
Total |
|||||||||||||||||
Shares |
Amount |
|||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2018 |
( |
) | ( |
) | ||||||||||||||||
CHANGE DURING 2019: |
||||||||||||||||||||
Exercise of options |
— | |||||||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||||||
Net loss |
— | — | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BALANCE AS OF DECEMBER 31, 2019 |
( |
) | ( |
) | ||||||||||||||||
CHANGE DURING 2020: |
||||||||||||||||||||
Exercise of options |
— | |||||||||||||||||||
Stock-based compensation |
— | — | ||||||||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BALANCE AS OF DECEMBER 31, 2020 |
( |
) | ( |
) | ||||||||||||||||
CHANGE DURING 2021: |
||||||||||||||||||||
Exercise of options |
— | |||||||||||||||||||
Stock-based compensation |
— | — | — | |||||||||||||||||
Conversion of Redeemable Convertible Preferred Shares |
— | — | ||||||||||||||||||
Merger transaction, net (Note 1(d)) |
(*) |
— | — | |||||||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
BALANCE AS OF DECEMBER 31, 2021 |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(*) | Excluding |
Year ended December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||
Net loss |
( |
) | ( |
) | ( |
) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||||||
Depreciation |
||||||||||||
Stock-based compensation |
||||||||||||
Exchange rate differences |
( |
) | ( |
) | ( |
) | ||||||
Interest from short-term deposits |
||||||||||||
Change in fair value of warrant liability |
— | — | ||||||||||
Change in fair value of Forfeiture Shares |
— | — | ||||||||||
Equity in earnings of investee, net of dividend received |
||||||||||||
Changes in operating assets and liabilities: |
||||||||||||
Trade accounts receivable |
( |
) | ||||||||||
Prepaid expenses |
( |
) | ( |
) | ||||||||
Other current assets |
( |
) | ( |
) | ||||||||
Inventories |
( |
) | ( |
) | ( |
) | ||||||
Long-term assets |
( |
) | ( |
) | ( |
) | ||||||
Trade accounts payable |
( |
) | ( |
) | ||||||||
Accrued compensation |
( |
) | ||||||||||
Other current liabilities |
||||||||||||
Other long-term liabilities |
— | |||||||||||
|
|
|
|
|
|
|||||||
Net cash used in operating activities |
( |
) | ( |
) | ( |
) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||||||
Investment in short-term deposits |
( |
) | ( |
) | ( |
) | ||||||
Maturities in short-term deposits |
||||||||||||
Purchase of property and equipment |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) investing activities |
( |
) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES - |
||||||||||||
Proceeds from Transactions related to the Merger, net |
— | — | ||||||||||
Exercise of options |
||||||||||||
|
|
|
|
|
|
|||||||
Net cash provided by financing activities |
||||||||||||
Effect of exchange rate changes on cash and cash equivalents |
||||||||||||
INCREASE IN CASH AND CASH EQUIVALENTS |
( |
) | ||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
||||||||||||
|
|
|
|
|
|
|||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR |
||||||||||||
|
|
|
|
|
|
|||||||
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION - |
||||||||||||
Cash paid for taxes |
||||||||||||
|
|
|
|
|
|
|||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |
||||||||||||
Trade accounts payable o account on f property and equipment |
— | — | ||||||||||
Unpaid issuance costs |
— | — | ||||||||||
Conversion of Redeemable Convertible Preferred Shares |
— | — | ||||||||||
Issuance of Forfeiture Shares |
— | — |
a. |
Valens Semiconductor Ltd. (hereafter “Valens”, and together with its wholly owned subsidiaries, the “Company”), was incorporated in Israel in 2006. |
b. |
On March 11, 2020, the World Health Organization designated the outbreak of a novel strain of coronavirus (“COVID-19”) as a global pandemic. Governments and businesses around the world have taken unprecedented actions to mitigate the spread of COVID-19, including imposing restrictions on movement and travel such as quarantines and shelter-in-place COVID-19 pandemic. Although there are effective vaccines for COVID-19 that have been approved for use, not all the Company’s employees are vaccinated and specifically not with the booster vaccination. In addition, new strains of the virus have appeared (primarily, and most recently the Omicron variant), which may complicate treatment and vaccination programs. Accordingly, concerns remain regarding additional surges of the pandemic or the expansion of the economic impact thereof, and the extent to which the COVID-19 pandemic may impact the Company’s future results of operations and financial condition. |
c. |
As of December 31, 2021, and 2020, the Company has wholly owned subsidiaries in the United States, Japan, China, and Germany primarily for the |
d. |
On September 29, 2021 (the “Closing Date”), the Company consummated a merger transaction (referred to as the “Merger Agreement Closing”) pursuant to a merger agreement, dated May 25, 2021 (the “Merger Agreement”), by and among the Company, PTK Acquisition Corp., a Delaware corporation whose common stock and warrants were then traded on the New York Stock Exchange (“PTK” or “SPAC”) and Valens Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”). |
a. |
Basis of Presentation |
b. |
Use of estimates in preparation of financial statements |
c. |
Principles of consolidation |
d. |
Functional Currency |
e. |
Cash and cash equivalents |
f. |
Short term deposits |
g. |
Fair Value of Financial Instruments |
h. |
Trade Accounts Receivable and Allowances for Doubtful Accounts |
i. |
Inventories |
j. |
Property and equipment |
% | ||
Computers and software |
||
Electronic and laboratory equipment |
||
Furniture and office equipment |
||
Production equipment |
k. |
Impairment of long-lived assets |
l. |
Severance Pay |
m. |
Revenue recognition |
(i) | Identify the contract(s) with a customer; |
(ii) | Identify the performance obligations in the contract; |
(iii) | Determine the transaction price; |
(iv) | Allocate the transaction price to the performance obligations in the contract; |
(v) | Recognize revenue when (or as) the performance obligation is satisfied. |
• | The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in sales and marketing expenses. |
• | When a contract with a customer includes a material right to acquire future goods or services that are similar to the original goods or services in the contract and are provided in accordance with the terms of the original contract, the Company allocates the transaction price to the optional goods or services by reference to the goods or services expected to be provided and the corresponding expected consideration. |
• | The Company applies the practical expedient of allowing it to disregard the effects of a financing component if the period between when the Company transfers the promised services to the customer and when the customer pays for the services will be one year or less. |
n. |
Cost of Revenues |
o. |
Research and development costs |
p. |
Sales Commissions |
q. |
Leases |
r. |
Equity investee |
s. |
Segment reporting |
1) | Audio-Video: The Company’ HDBaseT technology for the Audio-Video market deliver superior, plug-and-play |
2) | Automotive: Valens Automotive delivers safe & resilient high-speed in-vehicle connectivity for advanced car architectures, realizing the vision of connected and autonomous cars. |
t. |
Net income (loss) per Ordinary Share |
u. |
Stock-based compensation |
1) | With respect to stock options, the Company uses the Black-Scholes option-pricing model to determine the fair value of stock options. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding number of complex and subjective variables. These variables include the estimated stock price volatility over the term of the awards; actual and projected employee stock option exercise behaviors, which is referred to as expected term; risk-free interest rate and expected dividends. |
2) | With respect to RSUs, the Company uses the stock market price as of the grant date to determine the fair value of such RSUs. |
v. |
Redeemable Convertible Preferred Shares |
w. |
Concentrations of credit risk |
x. |
Income tax |
y. |
Forfeiture shares |
z. |
Public and Private Warrants |
aa. |
New Accounting Pronouncements |
December 31 |
||||||||
2021 |
2020 |
|||||||
|
|
|
|
|||||
U.S. dollars in thousands |
||||||||
Work in process |
||||||||
Finished goods |
||||||||
|
|
|
|
|||||
|
|
|
|
December 31 |
||||||||
2021 |
2020 |
|||||||
|
|
|
|
|||||
U.S. dollars in thousands |
||||||||
Cost: |
||||||||
Electronic and laboratory equipment |
||||||||
Furniture and office equipment |
||||||||
Leasehold improvements |
||||||||
Production equipment |
||||||||
Computers and software |
||||||||
|
|
|
|
|||||
Less: accumulated depreciation |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Property and equipment, net |
||||||||
|
|
|
|
December 31 |
||||||||
2021 |
2020 |
|||||||
|
|
|
|
|||||
U.S. dollars in thousands |
||||||||
Accrued vacation |
||||||||
Taxes payable |
||||||||
Accrued expenses- related party |
||||||||
Accrued expenses - other |
||||||||
|
|
|
|
|||||
|
|
|
|
a. |
Lease agreements: |
U.S. dollars in thousands |
||||
2022 |
||||
2023 |
||||
2024 |
||||
|
|
|||
Total |
||||
|
|
b. |
Royalties: |
c. |
The Israel Innovation Authority (formerly known as “Office Of Chief Scientist”) |
d. |
Noncancelable Purchase Obligations |
e. |
Legal proceedings |
f. |
Indemnifications |
a. |
On February 16, 2011, following a loan agreement signed between the Company and a third party, the Company granted to the lender warrants to purchase B-1 Preferred Shares of NIS B-1 Preferred Shares warrants were exercised into 145,195 Series B-1 Preferred Shares on a cashless basis. These Series B-1 Preferred Shares were converted to Ordinary Shares as part of the Recapitalization, see also note 1(d). |
2020 |
2019 |
|||||||
Stock price |
||||||||
Exercise price |
||||||||
Expected term (years) |
||||||||
Expected volatility |
% | % | ||||||
Risk-free interest rate |
% | % | ||||||
Expected dividend rate |
% | % |
b. |
The table below sets forth a summary of the changes in the fair value of the warrants liability classified as Level 3: |
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Balance at beginning of year |
||||||||||||
Exercise of warrants |
( |
) | — | — | ||||||||
Changes in fair value |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance at end of year |
||||||||||||
|
|
|
|
|
|
a. |
On the Closing Date, |
December 31, 2021 |
||||
Stock price |
||||
Expected term (years) |
||||
Expected volatility |
% | |||
Risk-free interest rate |
% |
b. |
The table below sets forth a summary of the changes in the fair value of the Forfeiture Shares classified as Level 3: |
2021 |
2020 |
|||||||
|
|
|
|
|||||
U.S. dollars in thousands |
||||||||
Balance at beginning of year |
||||||||
Issuance of Forfeiture Shares |
||||||||
Changes in fair value |
||||||||
|
|
|
|
|||||
Balance at end of year |
||||||||
|
|
|
|
Aggregate Liquidation Preference |
||||||||
2021 |
2020 |
|||||||
|
|
|
|
|||||
U.S. dollars in thousands |
||||||||
Series A |
||||||||
Series B-1 |
||||||||
Series B-2 |
||||||||
Series C |
||||||||
Series D |
||||||||
Series E |
||||||||
|
|
|
|
|||||
Total convertible preferred shares |
||||||||
|
|
|
|
a. |
Conversion and conversion price adjustment |
b. |
Mandatory Conversion : As-Converted Basis (voting together as a single class |
c. |
Anti-Dilution Protection : |
d. |
Special Adjustment for Conversion Price upon an Initial Public Offering: |
1) | |
2) | |
3) | |
e. |
Dividend Preference: |
f. |
Liquidation Preference : in any Liquidation Event (as defined below) the Distributable Assets shall be distributed to the Redeemable convertible preferred shares according to their preference, in each case, minus the sum of the aggregate amount of all Distributable Assets (e.g. dividends) previously paid in respect of any such Series of Preferred Shares. |
a. |
Ordinary Shares confer to holders the right to receive notice to participate and vote in the general meetings of the Company, to appoint directors and the right to receive dividends if declared. |
b. |
Warrants: Following the Merger Agreement Closing, each warrant of PTK entitled the holder to purchase share of PTK common stock per warrant at a price of $ share of Valens Ordinary Shares, with the number of Valens Ordinary Shares underlying the Valens warrants. |
December 31, 2021 |
||||||||
Number of Options |
Weighted- Average Exercise price |
|||||||
Options outstanding at the beginning of the year |
$ | |||||||
Granted during the year |
$ | |||||||
Exercised during the year |
( |
) | $ | |||||
Forfeited during the year |
( |
) | $ | |||||
|
|
|||||||
Outstanding at the end of the year |
$ | |||||||
|
|
|||||||
Options exercisable at year-end |
$ | |||||||
|
|
Outstanding as of December 31, 2021 |
Exercisable as of December 31, 2021 |
|||||||||||||||||||||||||||||||
Range of exercise prices |
Number outstanding |
Weighted average remaining contractual term |
Weighted average exercise price |
Aggregate intrinsic value (U.S. dollars in thousands) |
Number Exercisable |
Weighted average remaining contractual term |
Weighted Average exercise price |
Aggregate intrinsic value (U.S. dollars in thousands) |
||||||||||||||||||||||||
$ |
$ | $ | ||||||||||||||||||||||||||||||
$ |
$ | — | — | — | — | |||||||||||||||||||||||||||
$ |
$ | $ | ||||||||||||||||||||||||||||||
$ |
$ | — | $ | — |
2021 |
2020 |
|||||||
Expected term |
||||||||
Expected volatility |
% | |||||||
Expected dividend rate |
% | % | ||||||
Risk-free rate |
% | % |
Year Ended December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Cost of revenue |
||||||||||||
Research and development |
||||||||||||
Selling, general and administrative |
||||||||||||
|
|
|
|
|
|
|||||||
Total stock-based compensation -Stock Options |
||||||||||||
|
|
|
|
|
|
December 31, 2021 | ||||||||||||||||||
Number of RSUs |
Weighted- Average Grant Date Fair Value | |||||||||||||||||
RSUs outstanding at the beginning of the year |
||||||||||||||||||
Granted during the year |
$ | |||||||||||||||||
Exercised during the year |
||||||||||||||||||
Forfeited during the year |
||||||||||||||||||
|
|
|||||||||||||||||
Outstanding at the end of the year |
$ | |||||||||||||||||
|
|
|||||||||||||||||
RSUs exercisable at year-end |
$ | |||||||||||||||||
|
|
Outstanding as of December 31, 2021 |
Exercisable as of December 31, 2021 |
|||||||||||||||||||||||||||||||||
Range of exercise prices |
Number outstanding |
Weighted average remaining contractual term |
Weighted average exercise price |
Aggregate intrinsic value (U.S. dollars in thousands) |
Number Exercisable |
Weighted average remaining contractual term |
Weighted Average exercise price |
Aggregate intrinsic value (U.S. dollars in thousands) |
||||||||||||||||||||||||||
$ | $ | $ | $ | ( | *) |
Year Ended December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Cost of revenue |
— | — | ||||||||||
Research and development |
— | — | ||||||||||
Selling, general and administrative |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total stock-based compensation-RSUs |
— |
— |
||||||||||
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Foreign currency exchange differences |
||||||||||||
Issuance costs attributed to Forfeiture Shares |
( |
) | — | — | ||||||||
Interest income |
||||||||||||
Change in fair value of Warrants liability |
— | ( |
) | — | ||||||||
Change in fair value of Forfeiture shares |
( |
) | — | — | ||||||||
Other |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total financial income, net |
||||||||||||
|
|
|
|
|
|
Year Ended December 31 |
||||||||||||
2021(*) |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Basic net loss per Ordinary Share |
||||||||||||
Numerator: |
||||||||||||
Net loss from continuing operations |
( |
) | ( |
) | ( |
) | ||||||
Dividend on Series E Redeemable Preferred |
( |
) | ( |
) | ( |
) | ||||||
Dividend on Series D Redeemable Preferred |
( |
) | ( |
) | ( |
) | ||||||
Dividend on Series C Redeemable Preferred |
( |
) | ( |
) | ( |
) | ||||||
Dividend on Series B-2 Redeemable Preferred |
( |
) | ( |
) | ( |
) | ||||||
Dividend on Series B-1 Redeemable Preferred |
( |
) | ( |
) | ( |
) | ||||||
Dividend on Series A Redeemable Preferred |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Numerator for basic and diluted net loss per common share net loss attributable to common stockholders |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Denominator: |
||||||||||||
Denominator for basic and dilutive net loss per common share- adjusted weighted-average share |
||||||||||||
|
|
|
|
|
|
|||||||
Basic and dilutive net loss per common share |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
(*) | Dividend on Redeemable Preferred Shared referred to the period that started on January 1, 2021 and ended on September 29, 2021 (Recapitalization Closing Date, refer to note 1(d)). |
2021 |
2020 |
2019 |
||||||||||
Options |
||||||||||||
Warrants liability |
||||||||||||
Private Warrants |
— | — | ||||||||||
Public Warrants |
— | — | ||||||||||
Forfeiture Shares |
— | — | ||||||||||
Redeemable Convertible Preferred A shares |
||||||||||||
Redeemable Convertible Preferred B-1 shares |
||||||||||||
Redeemable Convertible Preferred B-2 shares |
||||||||||||
Redeemable Convertible Preferred C shares |
||||||||||||
Redeemable Convertible Preferred D shares |
||||||||||||
Redeemable Convertible Preferred E shares |
a. |
Basis of taxation |
b. |
Income (loss) Before Income Taxes: |
Year Ended December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Domestic (Israel) |
( |
) | ( |
) | ( |
) | ||||||
Foreign |
||||||||||||
|
|
|
|
|
|
|||||||
Loss before income taxes |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
c. |
Income tax expenses consisted of the following for the periods indicated: |
Year Ended December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Domestic (Israel) |
||||||||||||
Foreign |
||||||||||||
|
|
|
|
|
|
|||||||
Income tax expenses |
||||||||||||
|
|
|
|
|
|
d. |
Taxes on Income: |
December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Current: |
||||||||||||
Domestic |
||||||||||||
Foreign |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Deferred: |
||||||||||||
Domestic |
||||||||||||
Foreign |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
||||||||||||
|
|
|
|
|
|
|||||||
Provision for income taxes |
||||||||||||
|
|
|
|
|
|
December 31 |
||||||||||||
2021 |
2020 |
2019 |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Loss before taxes on income and before Equity in earnings of investee |
( |
) | ( |
) | ( |
) | ||||||
Statutory tax rate in Israel |
% | % | % | |||||||||
|
|
|
|
|
|
|||||||
Theoretical tax benefit |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Increase (decrease) in taxes resulting from: |
||||||||||||
Effect of different tax rates applicable in foreign jurisdictions |
||||||||||||
Operating losses and other temporary differences for which valuation allowance was provided |
||||||||||||
Permanent differences |
||||||||||||
Tax prepayment |
||||||||||||
|
|
|
|
|
|
|||||||
Actual taxes on income |
||||||||||||
|
|
|
|
|
|
e. |
Deferred Tax Assets and Liabilities |
December 31 |
||||||||
2021 |
2020 |
|||||||
|
|
|
|
|||||
U.S. dollars in thousands |
||||||||
Deferred tax assets: |
||||||||
Tax loss carryforwards |
||||||||
Research and development |
||||||||
Issuance costs |
— | |||||||
Employee and payroll accrued expenses |
||||||||
Other |
||||||||
|
|
|
|
|||||
Total deferred tax assets |
||||||||
Less valuation allowance for deferred tax assets |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Deferred tax assets |
||||||||
|
|
|
|
f. |
Uncertain tax positions |
g. |
Tax assessments |
a. |
For the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues, gross profit and operating loss by the |
Year ended December 31, 2021 |
||||||||||||
Audio- Video |
Automotive |
Consolidated |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Revenues |
||||||||||||
Gross profit |
||||||||||||
Research and development expenses |
||||||||||||
Sales and marketing expenses |
||||||||||||
General and administrative expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Segment operating profit (loss) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Financial income, net |
||||||||||||
|
|
|||||||||||
Loss before taxes on income |
( |
) | ||||||||||
|
|
|||||||||||
Depreciation expenses |
||||||||||||
|
|
|
|
|
|
Year ended December 31, 2020 |
||||||||||||
Audio- Video |
Automotive |
Consolidated |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
Revenues |
||||||||||||
Gross profit (loss) |
( |
) | ||||||||||
Research and development expenses |
||||||||||||
Sales and marketing expenses |
||||||||||||
General and administrative expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Segment operating profit (loss) |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Financial income, net |
||||||||||||
|
|
|||||||||||
Loss before taxes on income |
( |
) | ||||||||||
|
|
|||||||||||
Depreciation expenses |
||||||||||||
|
|
|
|
|
|
Year ended December 31, 2019 |
||||||||||||
Audio- Video |
Automotive |
Consolidated |
||||||||||
|
|
|
|
|
|
|||||||
U.S. dollars in thousands |
||||||||||||
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a. |
During the years ended December 31, 2021, 2020 and 2019, the Company granted |
b. |
In February 2020, the Company changed the employment terms of one of its executives, who is also a member of the Board of directors of the Company, into a fixed term employment of |
c. |
On September 30, 2021, the vesting of |
d. |
With respect of the execution of the Merger Agreement Closing and the listing as a public Company in the NYSE, certain of the Company’s executives received cash bonus in the amount of $ |
e. |
As of December 31, 2021, and 2020, the Company accrued $ |
f. |
As of December 31, 2021, and 2020, the Company accrued $ |
• | On September 29, 2021, we issued 12,500,000 shares of common stock to certain qualified institutional buyers and accredited investors that agreed to purchase such shares in connection with the Business Combination for aggregate consideration of $125,000,000. |
• | Since April 1, 2019, we have issued 6,054,353 stock options. All these stock options have been issued to employees, executive officers and consultants of the Company under Rule 701, Section 4(a)(2) or Regulation S of the Securities Act. |
Exhibit Number |
Description | |
23.3 | Consent of Meitar | Law Offices (incorporated by reference to Exhibit 5.1 to Valens Semiconductor Ltd.’s Form F-1 filed with the SEC on October 20, 2021). | |
24.1 | Power of Attorney (included on signature page of the Registration Statement). | |
107* | Filing Fee table (incorporated by reference to Form F-1 Filed with the SEC on October 20, 2021). | |
101.INS* | Inline XBRL Instance Document. | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | Inline XBRL Taxonomy Definition Linkbase Document. | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
† | Schedules and exhibits to this Exhibit omitted pursuant to Regulation S-K Item 601(b)(2). The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
†† | Certain confidential portions (indicated by brackets and asterisks) have been omitted from this exhibit. |
††† | Indicates a management contract or compensatory plan. |
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
(i) | To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended; |
(ii) | To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(iii) | To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. |
(2) | That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(4) | That, for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
(5) | To file a post-effective amendment to the registration statement to include any financial statements required by Item 8.A of Form 20-F at the start of any delayed offering or throughout a continuous offering. Financial statements and information otherwise required by Section 10(a)(3) of the Act need not be furnished, provided that the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required pursuant to this paragraph (a)(4) and other information necessary to ensure that all other information in the prospectus is at least as current as the date of those financial statements. |
(6) | That, for the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
VALENS SEMICONDUCTOR LTD. | ||
By: |
/s/ Gideon Ben-Zvi | |
Chief Executive Officer |
Name |
Position | |
/s/ Gideon Ben-Zvi |
Chief Executive Officer and Director | |
Gideon Ben-Zvi |
(Principal Executive Officer) | |
* | Chief Financial Officer | |
Dror Heldenberg | (Principal Financial Officer and Principal Accounting Officer) | |
* | Director | |
Peter Mertens | ||
* | Director | |
Yahal Zilka | ||
* | Director | |
Eyal Kishon | ||
* | Director | |
Dror Jerushalmi | ||
* | Director | |
Moshe Lichtman | ||
* | Director | |
Michael Linse | ||
* | Director | |
Ker Zhang | ||
* | Director | |
Adi Yarel Toledano |
By: |
/s/ Gideon Ben-Zvi | |
Attorney-in-fact |
Authorized U.S. Representative-Cogency Global Inc. | ||
/s/ Colleen A. De Vries | Authorized Representative in the United States | |
Colleen A. De Vries Senior Vice President on behalf of Cogency Global Inc. |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in this Registration Statement on Form F-1 of Valens Semiconductor Ltd. of our report dated March 2, 2022 relating to the financial statements of Valens Semiconductor Ltd., which appears in this Registration Statement. We also consent to the reference to us under the heading Experts in such Registration Statement.
Tel-Aviv, Israel | /s/ Kesselman & Kesselman | |
April 11, 2022 | Certified Public Accountants (lsr.) | |
A member firm of PricewaterhouseCoopers International Limited |
Kesselman & Kesselman, 146 Derech Menachem Begin St. Tel-Aviv 6492103, Israel,
P.O Box 7187 Tel-Aviv 6107120, Telephone: +972 -3- 7954555, Fax:+972 -3- 7954556, www.pwc.com/il
Kesselman & Kesselman is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity
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Cover Page |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Document Information [Line Items] | |
Document Type | POS AM |
Amendment Flag | true |
Entity Registrant Name | Valens Semiconductor Ltd. |
Entity Central Index Key | 0001863006 |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Description | This Post-Effective Amendment No. 1 to the Registration Statement on Form F-1 (File No. 333-260390) (as amended, the “Registration Statement”) of Valens Semiconductor Ltd. (the “Registrant”), as originally declared effective by the Securities and Exchange Commission (the “SEC”) on October 27, 2021, is being filed pursuant to the undertakings in Item 9 of the Registration Statement to update the information in the Registration Statement to reflect the Company’s results for the year ended December 31, 2021. The information included in this filing amends the Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment No. 1. All applicable registration fees were paid at the time of the original filing of the Registration Statement. |
Consolidated Statements of Operations - USD ($) $ in Thousands |
12 Months Ended | ||
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Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Income Statement [Abstract] | |||
REVENUES | $ 70,684 | $ 56,910 | $ 60,041 |
COST OF REVENUES | (20,105) | (13,432) | (12,585) |
GROSS PROFIT | 50,579 | 43,478 | 47,456 |
OPERATING EXPENSES: | |||
Research and development expenses | (46,875) | (44,725) | (52,704) |
Sales and marketing expenses | (14,214) | (13,657) | (17,616) |
General and administrative expenses | (16,556) | (7,884) | (5,120) |
TOTAL OPERATING EXPENSES | (77,645) | (66,266) | (75,440) |
OPERATING LOSS | (27,066) | (22,788) | (27,984) |
Financial income, net | 929 | 3,300 | 2,443 |
Loss before income taxes | (26,137) | (19,488) | (25,541) |
INCOME TAXES | (407) | (164) | (414) |
LOSS AFTER INCOME TAXES | (26,544) | (19,652) | (25,955) |
Equity in earnings of investee | 10 | 17 | 21 |
NET LOSS | $ (26,534) | $ (19,635) | $ (25,934) |
Basic and diluted net loss per Ordinary Share | $ (1.15) | $ (3.25) | $ (4.13) |
Weighted average number of shares used in computing net loss per Ordinary Share | 33,031,205 | 10,448,218 | 9,522,608 |
Consolidated Statements of Changes in Shareholders' Equity (Deficit) (Parenthetical) - shares |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Common stock, shares outstanding | 97,122,405 | 10,795,372 |
Forfeiture Shares [Member] | ||
Common stock, shares outstanding | 1,006,250 | 0 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (26,534) | $ (19,635) | $ (25,934) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 1,099 | 1,093 | 1,038 |
Stock-based compensation | 9,869 | 5,329 | 2,864 |
Exchange rate differences | (496) | (2,821) | (429) |
Interest from short-term deposits | 87 | 524 | 188 |
Change in fair value of warrant liability | 109 | ||
Change in fair value of Forfeiture Shares | 173 | ||
Equity in earnings of investee, net of dividend received | 18 | 11 | 2 |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | 1,584 | (944) | 2,457 |
Prepaid expenses | (4,583) | (902) | 304 |
Other current assets | (703) | 161 | (161) |
Inventories | (6,163) | (449) | (1,728) |
Long-term assets | (411) | (1) | (119) |
Trade accounts payable | 2,633 | (1,470) | (545) |
Accrued compensation | 633 | (1,555) | 158 |
Other current liabilities | 1,184 | 944 | 243 |
Other long-term liabilities | 1 | 45 | |
Net cash used in operating activities | (21,609) | (19,606) | (21,617) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Investment in short-term deposits | (121,947) | (86,861) | (90,000) |
Maturities in short-term deposits | 39,227 | 116,036 | 102,000 |
Purchase of property and equipment | (1,443) | (861) | (1,431) |
Net cash provided by (used in) investing activities | (84,163) | 28,314 | 10,569 |
CASH FLOWS FROM FINANCING ACTIVITIES - | |||
Proceeds from Transactions related to the Merger, net | 134,185 | ||
Exercise of options | 1,246 | 406 | 132 |
Net cash provided by financing activities | 135,431 | 406 | 132 |
Effect of exchange rate changes on cash and cash equivalents | 816 | 1,646 | 429 |
INCREASE IN CASH AND CASH EQUIVALENTS | 30,475 | 10,760 | (10,487) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 26,316 | 15,556 | 26,043 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 56,791 | 26,316 | 15,556 |
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION - | |||
Cash paid for taxes | 417 | $ 139 | $ 433 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Trade accounts payable on account of property and equipment | 44 | ||
Unpaid issuance costs | 41 | ||
Conversion of Redeemable Convertible Preferred Shares | 150,179 | ||
Issuance of Forfeiture Shares | $ 4,485 |
General |
12 Months Ended | ||||||||||||
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Dec. 31, 2021 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
General | NOTE 1 - GENERAL:
Valens is a leading provider of semiconductor products (chips), operates in the Audio-Video and Automotive industries, renowned for its Physical Layer (PHY) technologies, enabling resilient high-speed connectivity over simple, low-cost infrastructure. Valens is the inventor of the HDBaseT Technology, which enables the converged delivery of ultra-high-definition digital video and audio, Ethernet, control signals, USB and power through a single cable. In the audio-video space, Valens’ HDBaseT technology enables plug-and-play ultra-HD video sources and remote displays. In the automotive domain, Valens’ product offering includes both symmetric and asymmetric connectivity solutions for high bandwidth transmission of native interfaces over a single low-cost wires and connectors. Valens’ advanced PHY technologies for the auto industry provides the safety and resilience required to handle the noisy automotive environment, addressing the needs of Advanced driver-assistance systems (ADAS), Automotive Data Solutions (ADS), infotainment, telematics and backbone connectivity. As of September 30, 2021, the Company began trading on the New York Stock Exchange under the Symbol “VLN”; refer also to 1(d) below.
The Company has taken precautionary measures intended to help minimize the risk of the virus to its employees, including requiring some of the employees to work remotely and suspended all non-essential travels. The Company’s business and operations have been and could in the future be adversely affected by the global COVID-19 pandemic. The COVID-19 pandemic and efforts to control its spread have curtailed the movement of people, goods and services worldwide, including in the regions in which we and our customers and partners operate, and are significantly impacting economic activity and financial markets. During 2020 and 2021, the Company noticed a negative impact from COVID-19 on some of its customers’ demand, particularly with respect to end users’ audio-video and multimedia products that are used in public areas and for public events. Yet, the Company did receive an increase in demand for its high-speed connectivity products driven by a need for products and infrastructure to support the world’s developed trends derived from COVID-19 such as working from home, hybrid educational models and remote healthcare. On the product supply side, as the shortage in the semiconductor industry increases, the Company continues to face the impact of extended lead times from its suppliers as well as cost increases for certain raw materials that are in short supply, which may impact the Company’s revenues and gross margins. Overall, considering the changing nature and continuing uncertainty around the COVID-19 pandemic, the Company’s ability to predict the impact of COVID-19 on its business in future periods remains limited. The effects of the pandemic on the Company’s business is unlikely to be fully realized, or reflected in its financial results, until future periods.
In March 2010, the Company incorporated, together with Samsung Electronics, LG Electronics and Sony Pictures Technologies Inc., the HDBaseT Licensing LLC (the “LLC’) in Oregon, USA. The Company holds 25% of interest in the LLC. The LLC’s purposes are (i) to hold, obtain, license and/or acquire rights to certain intellectual property associated with or connected to or related to technical specifications developed by the HDBaseT Alliance, an Oregon nonprofit mutual benefit corporation (hereafter the “Alliance”), to enter into licensing arrangements for such intellectual property as required by the intellectual property rights policy of the Alliance; and (ii) to engage in any other lawful act or activity for which limited liability companies may be formed under the Act, and to do all things incidental to such purposes.
As a result of the Merger Agreement Closing, and upon consummation of other transactions contemplated by the Merger Agreement Closing (the “Transactions”), PTK became a wholly owned subsidiary of the Company, and (a) each of the PTK Warrants (total of 18,160,000 warrants (composed of 11,500,000 Public Warrants (“Public Warrants”) and 6,660,000 Private Warrants as both further disclosed in Note 10(b) below) convertible into ,ooo PTK common stock), automatically became a Company Warrant and all rights with respect to the PTK common stock underlying the PTK Warrants were automatically converted into rights with respect to Company Ordinary Shares and thereupon assumed by the Company, and (b) each PTK common stock issued and outstanding immediately prior to the Merger Agreement Closing was converted automatically into one Company Ordinary Share (for total of 7, 763 Ordinary Shares including the Ordinary Shares subject to forfeiture). The total proceeds received by the Company as part of the above Transactions totaled to $29.9 million. In connection therewith, the Company issued to the PTK’s sponsor: (a) 2,875,000 Ordinary Shares; and (b) 6,660,000 warrants, each of which entitles the holder thereof to purchase f (1/2 ) of a Company Ordinary Share (the “Private Warrants”, refer also to Note 10(b) below) ((a) and (b) together, the “Sponsor Equity”). The Sponsor Equity is subject to certain terms and conditions, as set forth in the Merger Agreement. 35% of the Valens Ordinary Shares that the PTK sponsor received in respect of its PTK common stock (i.e., 1,006,250 Ordinary Shares), are subject to forfeiture if certain price targets for the Valens Ordinary Shares are not achieved within a certain period of time after the Closing Date or if an M&A Transaction (as defined in the Merger Agreement), does not occur at a certain minimum price (the “Forfeiture Shares”). Such Forfeiture Shares are classified as a liability and presented at fair value, although they are considered outstanding shares and are entitled to voting rights and distributions. Please refer in addition to Note 2(y). Concurrently with the execution of the Merger Agreement, Valens and certain accredited investors (the “PIPE Investors”), entered into a series of subscription agreements, providing for the purchase by the PIPE (Private Investment in Public Equity) Investors at the Closing Date of an aggregate of 12,500,000 Valens Ordinary Shares (“PIPE Shares”) at a price per share of $10.00, for gross proceeds to Valens of $125.0 million (collectively, the “PIPE Financing”). Pursuant to the Merger Agreement Closing, and immediately prior to the consummation of the Merger and the PIPE Financing, the Company effected a recapitalization transaction whereby (i) all of the Company Preferred Shares were converted on a one-to-one 0.662531-to-one As a result, all Ordinary Shares, options exercisable for Ordinary Shares, exercise prices and income (loss) per share amounts have been adjusted on a retroactive basis, for all periods presented in these consolidated financial statements, to reflect such Reverse Stock Split. The number of Preferred Shares has not been retrospectively adjusted in these consolidated financial statements since the conversion to Ordinary Shares occurred simultaneously with the Reverse Stock Split. The conversion of the Redeemable Convertible Preferred Shares was reflected on the Closing Date. The total number of Preferred Shares converted into Ordinary Shares on September 29, 2021, was 67,242,640 after giving effect of the Reverse Stock Split. The net proceeds received by the Company as part of the Merger Agreement Closing and the PIPE Financing totaled to $131.6 million; underwriting fees and issuance costs (which consist of certain legal, accounting and other costs) amounted to $23.4 million, out of which an amount of $20.8 million was recorded as a reduction to Shareholders’ Equity, and an amount of $2.6 million was recorded within Statements of Operations ($2.1 million in the General and administrative expenses and $0.5 million was recorded in the Financial income, net). In addition, and as part of the Merger Agreement Closing and the PIPE Financing, i) the Company booked within the General and Administrative expenses an amount of approximately $3.4 million, due to options vesting acceleration resulted from the Merger Agreement Closing (refer also to note 11); and ii) the Company recorded the Forfeiture Shares liability of $4.5 million against the Additional Paid In Capital (refer also to note 2(y)).
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Summary of Significant Accounting Policies |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date, amounts of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or circumstances. On an ongoing basis, management evaluates its estimates, including those related to write-down for excess and obsolete inventories, the valuation of stock-based compensation awards, fair value of warrants liability and forfeiture shares liability. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter-company transactions, balances, income, and expenses are eliminated in the consolidated financial statements.
The currency of the primary economic environment in which Valens and each of its subsidiaries conducts its operations is the U.S. dollar (“dollar”). Accordingly, the Company uses the dollar as its functional and reporting currency. Foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period non-monetary assets and liabilities, which are remeasured at historical exchange rates. Expenses in foreign currency (mainly payroll to Israeli employees and overhead expenses of the Israeli office), are remeasured at the exchange rate in effect during the period the transaction occurred, except for those expenses related to balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency transactions are included in the consolidated statements of income (loss) as part of “financial income, net”.
Cash and cash equivalents consist of cash and demand deposits in banks and other short-term, highly liquid investments with original maturities of less than three months at the time of purchase.
Short-term deposits are bank deposits with maturities over three months and of up to one year. As of December 31, 2021, and 2020, the short-term deposits were denominated in U.S. dollars and bore interest of 0.6% and 1.2%, respectively. Short-term deposits are presented on the balance sheet at their cost, including accrued interest.
The FASB ASC Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under Topic 820 are described below: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. The Company’s financial instruments consist of cash, cash equivalents, short-term bank deposits, trade accounts receivable and trade accounts payable as well as warrants liability and forfeiture shares liability. Other than the warrants liability and the forfeiture shares liability (see below), the recorded amounts approximate their respective fair value because of the liquidity and short period of time to maturity, receipt or payment of these instruments. The Company’s financial instruments which are considered as a Level 3 measurement are warrants liability and forfeiture shares liability (refer also to note 7 and 8).
Trade accounts receivable are recorded at the invoiced amount and do not include finance charges. The Company performs ongoing credit evaluation of its customers and generally requires no collateral. The Company assesses the need for allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments by considering factors such as historical collection experience, credit quality, aging of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. There were no write-offs of accounts receivable for the fiscal years ended December 31, 2021, 2020 and 2019, respectively. There is no allowance for doubtful accounts recorded as of December 31, 2021 and 2020, respectively.
Inventories are comprised of finished goods as well as work in process that is planned to be sold to the Company’s customers and is presented at the lower of cost or net realizable value, based on the “first-in, first-out” basis. Most inventories are stored at the last production sites and are distributed from these locations. Inventories are reduced for write-downs based on periodic reviews for evidence of slow-moving or obsolete parts. Once written down, inventories write-downs are not reversed until the inventories are sold or scrapped.
Property and equipment are stated at cost less accumulated depreciation that is calculated using the straight-line method over the estimated useful lives of the related assets, as follows:
Leasehold improvements are depreciated by the straight-line method over the shorter of the term of the lease or the estimated useful life of such improvements.
The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow is less than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount over the fair value of the asset, using the expected future discounted cash flows. For the years ended December 31, 2021, 2020 and 2019, the Company did not recognize an impairment loss on its long-lived assets.
Valens: one-month’s salary for each year of employment, or a portion thereof. The employees of Valens Ltd. elected to be included under section 14 of the Israeli Severance Compensation Act, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies and/or pension funds. Payments in accordance with section 14 release Valens Ltd. from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees. The aforementioned deposits are not recorded as an asset in the Company’s balance sheet as they are not under the Company’s control. Chinese subsidiary:
The Company applies ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps:
Upon adoption of ASC 606 on January 1, 2019, the Company analyzed the contracts that were signed and not yet completed before the effective date and found no material impact on its consolidated financial statements as a result of the transition into the new accounting standard. No cumulative adjustment to accumulated deficit was recorded as a result of ASC 606 implementation. The Company uses the following practical expedients that are permitted under the rules:
The Company generates revenues from selling semiconductor products (chips). Revenues are recognized when the customer (which includes distributors) obtains control over the Company’s product, typically upon shipment to the customer. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company does not grant a right of return, refund, cancelation or termination. From time to time, the Company provides certain distributors with the right to free or discounted goods products in future periods that provides a material right to the customer. In such cases, such right is accounted for as a separate performance obligation. As of December 31, 2021, and 2020, the deferred revenues for such material rights were $54 thousand and $76 thousand, respectively. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $76 and $0 thousand for the years ended December 31, 2021, and December 31, 2020, respectively. The Company generally provides to its customers a limited warranty assurance that the sold products are in compliance with the applicable specifications at the time of delivery. Under the Company’s standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective items.
Cost of revenues includes cost of materials, such as the cost of wafers, costs associated with packaging, assembly and testing costs, as well as royalties, shipping cost, depreciation cost of production equipment, cost of personnel (including stock-based compensation), costs of logistics and quality assurance and other expenses associated with manufacturing support.
Research and development costs are expensed as incurred. Research and development expenses consists of costs incurred in performing research and development activities including cost of personnel (including stock-based compensation), pre-production engineering mask costs, engineering services, development tools cost, third parties’ intellectual property license fees, depreciation of development equipment, prototype wafers, packaging and test development costs as well as overhead costs. Development of a product is deemed complete when it is qualified through reviews and tests for performance and reliability. Subsequent to product qualification, product costs are included in cost of goods sold.
Internal sales commissions are recorded within sales and marketing expenses. Sales commissions for the years ended December 31, 2021, 2020 and 2019 were $790 thousand, $412 thousand and $509 thousand, respectively.
The Company leases cars and offices for use in its operations, which are classified as operating leases. Rentals (excluding contingent rentals) for operating leases are charged to expense using the straight-line method. If rental payments are not made on a straight-line basis, rental expenses nevertheless are recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis is used. The Company will adopt the requirements of ASC 842 on January 1, 2022, using the modified retrospective approach, at the effective date, without adjusting the comparative periods, please refer to note 2(aa).
Investment in which the Company exercises significant influence and which is not considered a subsidiary is accounted for using the equity method, whereby the Company recognizes its proportionate share of the investee’s net income or loss after the date of investment, see Note 1c. The equity investee is included within Other assets and totaled to $17 thousand and $35 thousand as of December 31, 2021 and 2020, respectively.
The chief operating decision maker is the Company’s Chief Executive Officer (the “CODM”), who makes resource allocation decisions and assesses performance based on financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments. The Company’s business includes two operating segments based on the two markets the Company serves:
Net income (loss) per Ordinary Share is computed by adjusting net income (loss) by the amount of dividends on redeemable convertible preferred shares, if applicable. Basic net income (loss) per Ordinary Share is computed by dividing net income (loss) by the weighted-average number of Ordinary Shares outstanding during the year. Diluted net income (loss) per Ordinary Share is computed by dividing net income (loss) by the weighted-average number of Ordinary Shares outstanding during the period, while giving effect to all potentially dilutive Ordinary Shares to the extent they are dilutive. Net income (loss) per Ordinary Share is calculated and reported under the “two-class” method. For periods where there is a net loss, no loss is allocated to participating securities (redeemable convertible Preferred Shares and Forfeiture Shares) because they have no contractual obligation to share in the losses. Net income (loss) per Ordinary Share calculations for all periods presented have been retrospectively adjusted to reflect the Reverse Stock Split, as discussed in Note 1(d). The Ordinary Shares issued as a result of the Redeemable Convertible Preferred Shares conversion on the Closing Date were included in the basic net loss per share calculation on a prospective basis.
The Company accounts for share-based compensation in accordance with ASC 718-10. Under ASC 718-10, stock-based awards, including stock options and Restricted Share Units (“RSUs”), are recorded at fair value as of the grant date and recognized to expense over the employee’s, directors and consultants’ requisite service period (generally the vesting period) which the Company has elected to amortize on a straight-line basis. ASC 718-10 also requires forfeitures to be estimated at the time of grant and revised if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures.
The expected term is calculated using the simplified method, as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis to estimate the expected option term. The Company estimates the volatility of its common stock by using the volatility rates of its peer companies. The Company bases the risk-free interest rate used in its option-pricing models on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term to maturity of its equity awards. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in its option-pricing models.
When the Company issued preferred shares, it considered the provisions of ASC 480 in order to determine whether the preferred share should be classified as a liability. If the instrument was not within the scope of ASC 480, the Company further analyzed the instrument’s characteristics in order to determine whether it should be classified within temporary equity (mezzanine) or within permanent equity in accordance with the provisions of ASC 480-10-S99.
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments in short-term deposits and trade accounts receivable. As of December 31, 2021 and 2020, the Company had cash and cash equivalents totaling $56,791 thousand and $26,316 thousand, respectively, as well as short-term deposits of $117,568 thousand and $35,254 thousand as of December 31, 2021 and 2020, respectively, which are deposited in major Israeli, U.S, Japanese, German and Chinese financial institutions. The Company’s management believes that these financial institutions are financially sound. The Company extends different levels of credit to customers and does not require collateral deposits. As of December 31, 2021, and 2020, the Company did not have allowances for doubtful accounts.
The Company accounts for income taxes using the asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and the deferred tax liabilities and assets for the future tax consequences of events that we have recognized in our financial statements or tax returns. The Company measures current and deferred tax liabilities and assets based on provisions of the relevant tax law. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance. The Company classifies interest and penalties relating to uncertain tax positions within income taxes.
Shares issued to PTK’s sponsor that are subject to forfeiture (“Forfeiture Shares”) are evaluated as equity-linked contracts rather than as outstanding shares. In accordance with ASC 815-40, the Forfeiture Shares are not solely indexed to the Company’s Ordinary Shares and therefore were accounted for as a liability on the consolidated balance sheet at the Closing Date. This liability is subject to re-measurement at each balance sheet date until the contingency settlement, and any change in fair value is recognized in the Company’s statement of operations.
The Company accounts for the warrants in accordance with the guidance contained in Accounting Standards Codification 815 (“ASC 815”), “Derivatives and Hedging”. Accordingly, both the Public and the Private Warrants are considered indexed to the entity’s own stock and are classified within equity.
Recently issued accounting pronouncements, not yet adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC 842”), on the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use The guidance is effective for the Company for annual periods beginning after December 15, 2021 and interim periods within annual periods beginning after December 15, 2022. The Company will adopt the requirements of ASC 842 on January 1, 2022, using the modified retrospective approach, at the effective date, without adjusting the comparative periods. The Company elected to utilize the available package of practical expedients permitted under the transition guidance within ASC 842 which does not require it to reassess the prior conclusions about lease identification, lease classification and initial direct costs. In addition, the new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize ROU assets or lease liabilities, including ROU assets or lease liabilities for existing short-term leases of assets in transition, but recognizes lease expenses over the lease term on a straight-line basis. The Company also elected the practical expedient to not separate lease and non-lease components for all of the Company’s leases. The Company currently expects to recognize on January 1, 2022 operating lease liabilities of approximately $5 million, with corresponding ROU assets. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASC 326”): Measurement of Credit Losses on Financial Instruments to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 is effective for the Company for the annual period beginning after December 15, 2022, including interim periods within that reporting period. The Company is currently evaluating the impact of adoption of the new standard on its consolidated financial statements. In December 2019, the FASB issued ASU
No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU No. 2019-12 is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | NOTE 3 – INVENTORIES:
Inventories write-downs totaled to $0 thousand, $73 thousand and $170 thousand during the years ended December 31, 2021, 2020 and 2019, respectively.
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Property and Equipment, Net |
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Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT, NET:
Depreciation expenses were $1,099 thousand, $1,093 thousand and $1,038 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. During the years ended December 31, 2021, 2020 and 2019, there were no impairments of property and equipment.
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Other Current Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | NOTE 5 - OTHER CURRENT LIABILITIES:
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Commitments and Contingent Liabilities |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingent Liabilities | NOTE 6 - COMMITMENTS AND CONTINGENT LIABILITIES:
Vehicles: The Company rents motor vehicles for use by some of its employees under operating lease agreements with lease terms of three years. As collateral for the cars’ lease agreements, the Company pays in advance the fee for the last month under the lease agreement. Offices: The Company’s corporate headquarters are located in Hod Hasharon, Israel, consisting of approximately 5,500 square meters of facility space under lease that expires in February 2023. This facility accommodates the Company’s principal operations, including sales, marketing, research and development, finance, and administration activities. Valens and its subsidiaries have entered into various operating leases for office buildings and research and development facilities in their respective territories. On July 21, 2015, the Company signed an extension of the lease agreement for its office space in Hod Hasharon, Israel that was due to expire in February 2021. On August 9, 2020, the Company signed an amendment to the lease agreement, regarding 5,500 square meters. According to that amendment, the lease term started on March 1, 2021 and will last through February 28, 2023. This amendment also provides the Company with an option to extend the lease period by additional two years until February 28, 2025. As of December 31, 2021 and 2020, the rented space of the Company’s offices in Israel is 5,500 square meters and 6,295 respectively Long-term lease deposits that are recorded within other assets totaled to $433 thousand and $336 thousand as of December 31, 2021 and 2020, respectively. As of December 31, 2021, the minimum future rental payments applicable to non-cancelable operating leases are as follows:
The table above does not include future rental payments of future extension periods of 10 thousand, 1,457 thousand, 1,689 thousand and 281 thousand for the years ended on December 31, 2022, 2023, 2024 and 2025. Operating lease expenses for the years ended December 31, 2021, 2020 and 2019 were $2,670 thousand, $2,527 thousand and $2,368 thousand, respectively.
In addition to its own intellectual property, the Company also embeds certain off the shelf technologies (Intellectual Property (“IP”)) licensed from third parties in its chip technology. These are typically non-exclusive contracts provided under royalty-accruing and/or paid-up licenses. Once deployed in the Company’s products, such licenses for commercial use are generally perpetual. Royalty arrangements with certain vendors are vary between 1%-3.5% of net revenues per chip plus additional royalties of up to $0.1 per chip. The royalties’ expenses totaled to $844 thousand, $711 thousand and $389 thousand for the years ended December 31, 2021, 2020 and 2019, respectively. The royalties were recorded as part of cost of revenues.
In previous years, the Company received grants from the Israel Innovation authority (“IIA”) for participation in research and development costs of the Company’s. The IIA grants were recognized when grants were received and presented as a deduction from research and development expenses. As of December 31, 2019, the Company repaid the IIA all its liability for the received grant. A repayment in an amount of $2,028 thousand was included in the Company’s research and development expenses for 2019. While the Company has no outstanding obligation to the IIA, the Company is still subject to the provisions of the Research and Development law in Israel.
The Company depends upon third party subcontractors for manufacturing of wafers, packaging and final tests. As of December 31, 2021, and 2020, the total value of open purchase orders for such manufacturing contractors was approximately $50,591 thousand and $12,417 thousand, respectively. The Company has noncancelable purchase agreements for certain IP embedded in the Company products as well as certain agreement for the license of development tools used by the development team. As of December 31, 2021, and 2020, the total value of non-paid amounts related to such agreements totaled $6,563 thousand and $3,614 thousand, respectively.
As of December 31, 2021, and 2020, the Company is not a party to, or subject to the provisions of any order, writ, injunction, judgment or decree of any court or governmental agency or instrumentality. There is no material action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate.
In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third-parties. These indemnifications (especially with respect to confidentiality with third party related to IP) may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnifications. As of December 31, 2021, and 2020 the Company has no liabilities recorded for these agreements.
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Warrants Liability |
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Warrants Liability [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants Liability | NOTE 7 - WARRANTS LIABILITY:
The Preferred B-1 warrants were classified as liabilities in accordance with ASC 480-10-35-5, B-1 preferred shares, which were redeemable upon certain events that represent “Deemed Liquidation Events” (see also Note 1(g)). Accordingly, until their exercise, the Preferred B-1 warrants were measured at fair value each reporting period, and changes in their fair value were recognized in the consolidated statement of operations as part of financial income, net. The fair value of the warrants was computed using the following key assumptions:
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Forfeiture Shares |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture Shares | NOTE 8 - FORFEITURE SHARES
The Company performed a Monte-Carlo simulation to calculate the fair value. As of the Closing Date, the fair value was $4,485 using the following assumptions: stock price of $7.4, expected term of 3- 4 years, expected volatility of 47.74%-50.31% and risk-free interest rate of return of 0.53%-0.76%. The fair value of the Forfeiture Shares was computed using the following key assumptions:
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Redeemable Convertible Preferred Shares |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Convertible Preferred Shares | NOTE 9 - REDEEMABLE CONVERTIBLE PREFERRED SHARES: Rights of redeemable convertible preferred shares:
With respect to the conversion of redeemable convertible preferred shares, please refer to note 1(d) – Recapitalization. As of the December 31, 2020 the Company had issued Ordinary Shares and six classes of Preferred Shares. The rights, preferences and privileges with respect to the Preferred Shares are stipulated in the Company’s Articles of Association (“AoA”) and a summary of significant provisions are as follows:
“Conversion Price” as of the time of creation of any series or class of Preferred Shares, the conversion price per share for each share of such series of Preferred Share shall initially be the Original Issue Price thereof (subject to customary adjustments).
or by consent of such required majority), including the Series D Consent and the Series E Consent, and (iii) immediately prior to the consummation of an IPO (as defined below) (that does not constitute a Qualified IPO) on the New York Stock Exchange, NASDAQ, London Stock Exchange or the main list in the Hong Kong Stock Exchange, effected with the consent (by vote or written consent) of the holders of at least seventy percent (70%) of the voting power underlying the then outstanding Series D Preferred Shares on an As-Converted Basis (voting together as a single class or by consent of such required majority) and the holders of at least fifty percent (50%) of the voting power underlying the then outstanding Series D Preferred Shares and Series E Preferred Shares on an As-Converted Basis (voting together as a single class or by consent of such required majority). “Qualified IPO” means the closing of the sale of Ordinary Shares in an initial firm-commitment underwritten public offering with net proceeds to the Company of at least $100 Million. “IPO” means the closing of the sale of Ordinary Shares in an initial firm-commitment underwritten public offering, pursuant to applicable securities law(s) and regulations, covering the offer and sale of Ordinary Shares to the public.
“Additional Shares” means all Equity Securities issued by the Company following its Series E Preferred financing round (excluding customary exclusions). “Equity Securities” means any Ordinary Shares, Preferred Shares, any securities evidencing an ownership interest in the Company, or any securities (including, inter alia, options, warrants, convertible securities, convertible debentures, bonds or capital notes) convertible, exchangeable or exercisable into any of the aforesaid securities, any agreement, undertaking, instrument or certificates conferring a right to acquire any Ordinary Shares, Preferred Shares or any other securities of the Company.
Upon declaration of dividend by the Company’s Board of directors, the holders of the Preferred Shares shall be entitled to cumulative dividends as of their applicable issuance at an annual rate of 7% of the applicable Original Issue Price (compounded annually) since the issuance of each series Preferred Shares, prior to and in preference to the holders of the Ordinary Shares and any preceding Series of Preferred Shares, see also note f below. To date, no dividends have been declared. Cumulative dividends in arrears as of December 31, 2020, for all the preferred shares are, $64,578 thousand.
After payment has been made to the holders of the Series E Preferred Shares, Series D Preferred Shares, the Preferred C Shares, Preferred B Shares and Series A Preferred Shares of the full Preferential Amount, the holders of Preferred Shares and Ordinary Shares shall be entitled to receive any remaining Distributable Assets, if any, on a pro rata basis based upon the number of Ordinary Shares and Ordinary Shares into which such Preferred Shares could be converted into at the time of distribution until with respect to holders of the Preferred Shares, such holders have received an aggregate of three (3) times the applicable Original Issue Price of the Preferred Shares held thereby (including any paid Preferential Amounts); Thereafter, any remaining Distributable Assets shall be distributed to the holders of Ordinary Shares, pro rata based on the number of Ordinary Shares held by each. ”Liquidation Event” means (i) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary; (ii) any Acquisition or (iii) Asset Transfer. For the purposes of this note, “Acquisition” shall mean (A) any consolidation, merger or reorganization of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in which the shareholders of the Company immediately prior to such consolidation, merger or reorganization, own less than 50% of the voting power of the surviving entity (or in the event stock or ownership interests of an affiliated entity are issued in such transaction, less than 50% of the voting power of such affiliated entity) immediately after such consolidation, merger or reorganization; or (B) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of the Company’s outstanding voting power is transferred (e.g. by way of the sale of all or substantially all of the Company’s share capital); and “Asset Transfer” means the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Company. With respect to the conversion of redeemable convertible preferred shares, please refer to note 1(d) – Recapitalization. |
Shareholders Equity |
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Statement of Stockholders' Equity [Abstract] | |||||||
Stockholders Equity | NOTE 10 - SHAREHOLDERS EQUITY
Public Warrants: Each of the 11,500,000 public warrants entitles its holder to purchase (1/2) Valens Ordinary Share (i.e. exercisable in total to 5,750,000 Ordinary Shares), at a price of $11.50 per one share, at any time commencing on the Closing Date. Under certain conditions, Valens may call the outstanding public warrants for redemption, in whole and not in part, at a price of $0.01 per warrant, but only if: (i) the reported last sale price of the Valens ordinary shares equals or exceeds $18.00 per share for any 20 trading days within a 30-day trading period; and (ii) there is a current registration statement in effect covering the Valens ordinary shares underlying such warrants. If Valens calls the warrants for redemption as described above, Valens will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis”. The exercise price and number of Valens Ordinary Shares issuable on exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or a recapitalization, reorganization, merger or consolidation. The warrants will expire on September 29, 2026. Private Warrants: Each of the 6,660,000 Private Warrants will not be redeemable by Valens, regardless of the holder’s identity. The holders have the option to exercise the Private Warrants on a cashless basis at any time into Valens ordinary shares. Except as described above, the Private Warrants have terms and provisions that are identical to those of the Public Warrants, including as to exercise price, exercisability and exercise period. Both the Public Warrants and Private Warrants, are publicly-traded as of the Closing Date.
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Stock-based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | NOTE 11 - STOCK-BASED COMPENSATION: In September 2021, the Company adopted the “Valens Semiconductor Ltd. 2021 Share Incentive Plan”. The Company’s stock options and Restricted Stock Units (RSUs) have a term of up to 10 years from grant date unless extended by the Board of Directors. Options and RSUs generally vest as follows: 25% on the first anniversary from the “Vesting Start Date” as defined in the grant agreement and remainder vest ratably over the following 12 quarters. During 2021, the Company added 8,370,000 Ordinary Shares to the Ordinary Shares pool reserved for issuance (2,318,860 in 2020). As of December 31, 2021, and 2020, the number of ordinary shares included in the Company’s stock incentive plans totaled to 28,383,788 and 20,013,788, respectively. Stock Options On September 30, 2021 the vesting of 814,272 options of one of the Company’s executives were accelerated. The Company expensed $3,396 thousand in the general and administrative expenses due to such vesting acceleration. The following is a summary of the status of the Company’s share option plan as of December 31, 2021, as well as changes during the years:
The following table summarizes information about share options outstanding as of December 31, 2021:
The following assumptions were used for options granted during the year in order to estimate the fair value of stock-based compensation awards:
During 2021, 2020 and 2019, 321,777, 3,347,705 and 1,003,185 options respectively, were granted to several related parties (please refer to Note 16 regarding Related Parties). As of December 31, 2021, the unrecognized compensation costs related to unvested stock options totaled to $13,853 thousand, which are expected to be expensed over a weighted-average period of 2.7 years. 2,300,980 out of the outstanding options that have not yet vested as of December 31, 2021, have acceleration mechanisms according to certain terms set forth in the grant agreements primarily in the case of a M&A Transaction which constitutes a Liquidation Event (as defined in Note 9). The unrecognized compensation costs related to those unvested stock options are $7,281 thousand, which are expected to be recognized over a weighted-average period of 2.3 years. The following table presents the classification of the stock options expenses for the periods indicated:
Restricted Stock Units The following is a summary of the status of the Company’s RSU’s as of December 31, 2021, as well as changes during the year:
(*) Less than $1 thousand As of December 31, 2021, the unrecognized compensation cost related to unvested RSUs totaled to approximately $914 thousand and is expected to be expensed over a weighted-average recognition period of approximately 3.8 years. During 2021, 2020 and 2019, 7,398, 0 and 0 RSU’s respectively, were granted to several related parties (please refer to Note 17 regarding Related Parties). The following table presents the classification of RSU’s expenses for the periods indicated:
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Financial Income, Net |
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Finance Income Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Income, Net | NOTE 12 - FINANCIAL INCOME, NET:
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Net Income (loss) Per Ordinary Shares |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (loss) Per Ordinary Shares | NOTE 13 - NET INCOME (LOSS) PER ORDINARY SHARE: The following table sets forth the computation of basic and diluted net income (loss) per ordinary share for the periods indicated. Net income (loss) per ordinary share calculations for all periods presented have been retrospectively adjusted to reflect the Reverse Stock Split, as discussed in Note 1(d).
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Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | NOTE 14 - INCOME TAXES:
Current tax is calculated with reference to the profit of the Company and its subsidiaries in their respective countries of operation. Set out below are details in respect of the significant jurisdictions where the Company and its subsidiaries operate and the factors that influenced the current and deferred taxation in those jurisdictions: Israel Valens is taxed under the laws of the State of Israel at a corporate tax rate of 23%. In 2021, 2020 and 2019, Valens is at a losses position and therefore has no corporate tax liability. As of December 31, 2021, 2020 and 2019, Valens has a carry forward loss of approximately $ 88 million, $85 million and $65 million, respectively. Such carry forward loss has no expiration date. United States The principal federal tax rate applicable to the U.S. subsidiaries is 21%. With respect to Valens Semiconductor Inc., is also subject to state taxes at the following rates: 8.84% in California and 0.75% in Texas. As of December 31, 2021, Valens Merger Sub, Inc. (formerly PTK) has a carry forward loss of approximately $5 million and is subject to state taxes at a rate of 8.84% in California. Such carry forward loss is subject to the 382 limitation and has no expiration date. Japan The effective principal corporate tax rate applicable to the Japanese subsidiary is 36%. Germany The effective principal corporate tax rate applicable to the German subsidiary is 30%. China The effective principal corporate tax rate applicable to the Chinese subsidiary for is 5%.
Income (loss) before income taxes consisted of the following for the periods indicated:
Taxes on income for the years ended December 31, 2021, 2020 and 2019 were comprised of the following:
A reconciliation our theoretical income tax expense to actual income tax expense is as follows:
The components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows:
Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income, and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. As of December 31, 2021, and 2020, the Company has recorded a full valuation allowance of $(31,892) and $(22,297) thousand with regard to its deferred taxes (which is mainly tax loss carryforwards) generated in Israel, respectively. The change in valuation allowance for the years ended December 31, 2021, 2020 and 2019 was $(9,595), $(4,500) thousand and $(7,931) thousand, respectively.
The Company implement a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. We do not have any material liabilities in any reported periods regarding uncertain tax positions. We classify interest and penalties recognized related to our uncertain tax positions within income taxes on the consolidated statements of operations.
The Israeli entity’s’ income tax assessments are considered final through 2015. The US subsidiary’s income tax assessments are considered final through 2016.
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Segment and Revenue by Geography and by Major Customer |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 15- SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER
The following table shows revenue by geography, based on the customers’ “bill to” location:
The following table summarizes the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:
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Related Party Transactions |
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Dec. 31, 2021 | |||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||
Related Party Transactions | NOTE 16 - RELATED PARTY TRANSACTIONS:
The fair value of the stock options that were granted during the year ended December 31, 2021 is $1,266 thousand, which is expected to be recognized over a 3-4-years 3-years vesting period.
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Basis of Presentation |
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
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Use of estimates in preparation of financial statements |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date, amounts of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates under different assumptions or circumstances. On an ongoing basis, management evaluates its estimates, including those related to write-down for excess and obsolete inventories, the valuation of stock-based compensation awards, fair value of warrants liability and forfeiture shares liability. Such estimates often require the selection of appropriate valuation methodologies and models, and significant judgment in evaluating ranges of assumptions and financial inputs. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
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Principles of consolidation |
The consolidated financial statements include the financial statements of the Company and its subsidiaries. All inter-company transactions, balances, income, and expenses are eliminated in the consolidated financial statements.
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Functional Currency |
The currency of the primary economic environment in which Valens and each of its subsidiaries conducts its operations is the U.S. dollar (“dollar”). Accordingly, the Company uses the dollar as its functional and reporting currency. Foreign currency assets and liabilities are remeasured into U.S. dollars at the
end-of-period non-monetary assets and liabilities, which are remeasured at historical exchange rates. Expenses in foreign currency (mainly payroll to Israeli employees and overhead expenses of the Israeli office), are remeasured at the exchange rate in effect during the period the transaction occurred, except for those expenses related to balance sheet amounts, which are remeasured at historical exchange rates. Gains or losses from foreign currency transactions are included in the consolidated statements of income (loss) as part of “financial income, net”. |
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Cash and cash equivalents |
Cash and cash equivalents consist of cash and demand deposits in banks and other short-term, highly liquid investments with original maturities of less than three months at the time of purchase.
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Short term deposits |
Short-term deposits are bank deposits with maturities over three months and of up to one year. As of December 31, 2021, and 2020, the short-term deposits were denominated in U.S. dollars and bore interest of 0.6% and 1.2%, respectively. Short-term deposits are presented on the balance sheet at their cost, including accrued interest.
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Fair Value of Financial Instruments |
The FASB ASC Topic 820, Fair Value Measurements and Disclosures (“Topic 820”), establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under Topic 820 are described below: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair values of the assets or liabilities. The Company’s financial instruments consist of cash, cash equivalents, short-term bank deposits, trade accounts receivable and trade accounts payable as well as warrants liability and forfeiture shares liability. Other than the warrants liability and the forfeiture shares liability (see below), the recorded amounts approximate their respective fair value because of the liquidity and short period of time to maturity, receipt or payment of these instruments. The Company’s financial instruments which are considered as a Level 3 measurement are warrants liability and forfeiture shares liability (refer also to note 7 and 8).
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Trade Accounts Receivable and Allowances for Doubtful Accounts |
Trade accounts receivable are recorded at the invoiced amount and do not include finance charges. The Company performs ongoing credit evaluation of its customers and generally requires no collateral. The Company assesses the need for allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments by considering factors such as historical collection experience, credit quality, aging of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. There were no write-offs of accounts receivable for the fiscal years ended December 31, 2021, 2020 and 2019, respectively. There is no allowance for doubtful accounts recorded as of December 31, 2021 and 2020, respectively.
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Inventories |
Inventories are comprised of finished goods as well as work in process that is planned to be sold to the Company’s customers and is presented at the lower of cost or net realizable value, based on the
“first-in, first-out” basis. Most inventories are stored at the last production sites and are distributed from these locations. Inventories are reduced for write-downs based on periodic reviews for evidence of slow-moving or obsolete parts. Once written down, inventories write-downs are not reversed until the inventories are sold or scrapped. |
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Property and equipment |
Property and equipment are stated at cost less accumulated depreciation that is calculated using the straight-line method over the estimated useful lives of the related assets, as follows:
Leasehold improvements are depreciated by the straight-line method over the shorter of the term of the lease or the estimated useful life of such improvements. |
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Impairment of long-lived assets |
The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Recoverability of long-lived assets is measured by comparing the carrying amount of the long-lived asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the sum of the expected undiscounted cash flow is less than the carrying amount of the asset, the Company recognizes an impairment loss, which is the excess of the carrying amount over the fair value of the asset, using the expected future discounted cash flows. For the years ended December 31, 2021, 2020 and 2019, the Company did not recognize an impairment loss on its long-lived assets. |
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Severance Pay |
Valens: one-month’s salary for each year of employment, or a portion thereof. The employees of Valens Ltd. elected to be included under section 14 of the Israeli Severance Compensation Act, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies and/or pension funds. Payments in accordance with section 14 release Valens Ltd. from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees. The aforementioned deposits are not recorded as an asset in the Company’s balance sheet as they are not under the Company’s control. Chinese subsidiary: |
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Revenue recognition |
The Company applies ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the entity performs the following five steps:
Upon adoption of ASC 606 on January 1, 2019, the Company analyzed the contracts that were signed and not yet completed before the effective date and found no material impact on its consolidated financial statements as a result of the transition into the new accounting standard. No cumulative adjustment to accumulated deficit was recorded as a result of ASC 606 implementation. The Company uses the following practical expedients that are permitted under the rules:
The Company generates revenues from selling semiconductor products (chips). Revenues are recognized when the customer (which includes distributors) obtains control over the Company’s product, typically upon shipment to the customer. Taxes collected from customers relating to product sales and remitted to governmental authorities are excluded from revenues. The Company does not grant a right of return, refund, cancelation or termination. From time to time, the Company provides certain distributors with the right to free or discounted goods products in future periods that provides a material right to the customer. In such cases, such right is accounted for as a separate performance obligation. As of December 31, 2021, and 2020, the deferred revenues for such material rights were $54 thousand and $76 thousand, respectively. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $76 and $0 thousand for the years ended December 31, 2021, and December 31, 2020, respectively. The Company generally provides to its customers a limited warranty assurance that the sold products are in compliance with the applicable specifications at the time of delivery. Under the Company’s standard terms and conditions of sale, liability for certain failures of product during a stated warranty period is usually limited to repair or replacement of defective items.
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Cost of Revenues |
Cost of revenues includes cost of materials, such as the cost of wafers, costs associated with packaging, assembly and testing costs, as well as royalties, shipping cost, depreciation cost of production equipment, cost of personnel (including stock-based compensation), costs of logistics and quality assurance and other expenses associated with manufacturing support.
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Research and development costs |
Research and development costs are expensed as incurred. Research and development expenses consists of costs incurred in performing research and development activities including cost of personnel (including stock-based compensation),
pre-production engineering mask costs, engineering services, development tools cost, third parties’ intellectual property license fees, depreciation of development equipment, prototype wafers, packaging and test development costs as well as overhead costs. Development of a product is deemed complete when it is qualified through reviews and tests for performance and reliability. Subsequent to product qualification, product costs are included in cost of goods sold. |
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Sales Commissions |
Internal sales commissions are recorded within sales and marketing expenses. Sales commissions for the years ended December 31, 2021, 2020 and 2019 were $790 thousand, $412 thousand and $509 thousand, respectively.
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Leases |
The Company leases cars and offices for use in its operations, which are classified as operating leases. Rentals (excluding contingent rentals) for operating leases are charged to expense using the straight-line method. If rental payments are not made on a straight-line basis, rental expenses nevertheless are recognized on a straight-line basis unless another systematic and rational basis is more representative of the time pattern in which use benefit is derived from the leased property, in which case that basis is used. The Company will adopt the requirements of ASC 842 on January 1, 2022, using the modified retrospective approach, at the effective date, without adjusting the comparative periods, please refer to note 2(aa).
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Equity investee |
Investment in which the Company exercises significant influence and which is not considered a subsidiary is accounted for using the equity method, whereby the Company recognizes its proportionate share of the investee’s net income or loss after the date of investment, see Note 1c. The equity investee is included within Other assets and totaled to $17 thousand and $35 thousand as of December 31, 2021 and 2020, respectively.
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Segment reporting |
The chief operating decision maker is the Company’s Chief Executive Officer (the “CODM”), who makes resource allocation decisions and assesses performance based on financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments. The Company’s business includes two operating segments based on the two markets the Company serves:
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Net income (loss) per Ordinary Share |
Net income (loss) per Ordinary Share is computed by adjusting net income (loss) by the amount of dividends on redeemable convertible preferred shares, if applicable. Basic net income (loss) per Ordinary Share is computed by dividing net income (loss) by the weighted-average number of Ordinary Shares outstanding during the year. Diluted net income (loss) per Ordinary Share is computed by dividing net income (loss) by the weighted-average number of Ordinary Shares outstanding during the period, while giving effect to all potentially dilutive Ordinary Shares to the extent they are dilutive. Net income (loss) per Ordinary Share is calculated and reported under the “two-class” method. For periods where there is a net loss, no loss is allocated to participating securities (redeemable convertible Preferred Shares and Forfeiture Shares) because they have no contractual obligation to share in the losses. Net income (loss) per Ordinary Share calculations for all periods presented have been retrospectively adjusted to reflect the Reverse Stock Split, as discussed in Note 1(d). The Ordinary Shares issued as a result of the Redeemable Convertible Preferred Shares conversion on the Closing Date were included in the basic net loss per share calculation on a prospective basis. |
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Stock-based compensation |
The Company accounts for share-based compensation in accordance with ASC 718-10. Under ASC 718-10, stock-based awards, including stock options and Restricted Share Units (“RSUs”), are recorded at fair value as of the grant date and recognized to expense over the employee’s, directors and consultants’ requisite service period (generally the vesting period) which the Company has elected to amortize on a straight-line basis. ASC 718-10 also requires forfeitures to be estimated at the time of grant and revised if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures.
The expected term is calculated using the simplified method, as the Company has concluded that its historical share option exercise experience does not provide a reasonable basis to estimate the expected option term. The Company estimates the volatility of its common stock by using the volatility rates of its peer companies. The Company bases the risk-free interest rate used in its option-pricing models on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term to maturity of its equity awards. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in its option-pricing models.
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Redeemable Convertible Preferred Shares |
When the Company issued preferred shares, it considered the provisions of ASC 480 in order to determine whether the preferred share should be classified as a liability. If the instrument was not within the scope of ASC 480, the Company further analyzed the instrument’s characteristics in order to determine whether it should be classified within temporary equity (mezzanine) or within permanent equity in accordance with the provisions of ASC 480-10-S99. |
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Concentrations of credit risk |
Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, investments in short-term deposits and trade accounts receivable. As of December 31, 2021 and 2020, the Company had cash and cash equivalents totaling $56,791 thousand and $26,316 thousand, respectively, as well as short-term deposits of $117,568 thousand and $35,254 thousand as of December 31, 2021 and 2020, respectively, which are deposited in major Israeli, U.S, Japanese, German and Chinese financial institutions. The Company’s management believes that these financial institutions are financially sound. The Company extends different levels of credit to customers and does not require collateral deposits. As of December 31, 2021, and 2020, the Company did not have allowances for doubtful accounts. |
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Income tax |
The Company accounts for income taxes using the asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and the deferred tax liabilities and assets for the future tax consequences of events that we have recognized in our financial statements or tax returns. The Company measures current and deferred tax liabilities and assets based on provisions of the relevant tax law. The Company records a valuation allowance to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance. The Company classifies interest and penalties relating to uncertain tax positions within income taxes. |
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Forfeiture shares |
Shares issued to PTK’s sponsor that are subject to forfeiture (“Forfeiture Shares”) are evaluated as equity-linked contracts rather than as outstanding shares. In accordance with ASC 815-40, the Forfeiture Shares are not solely indexed to the Company’s Ordinary Shares and therefore were accounted for as a liability on the consolidated balance sheet at the Closing Date. This liability is subject to re-measurement at each balance sheet date until the contingency settlement, and any change in fair value is recognized in the Company’s statement of operations. |
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Public and Private Warrants |
The Company accounts for the warrants in accordance with the guidance contained in Accounting Standards Codification 815 (“ASC 815”), “Derivatives and Hedging”. Accordingly, both the Public and the Private Warrants are considered indexed to the entity’s own stock and are classified within equity. |
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New Accounting Pronouncements |
Recently issued accounting pronouncements, not yet adopted: In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASC 842”), on the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use The guidance is effective for the Company for annual periods beginning after December 15, 2021 and interim periods within annual periods beginning after December 15, 2022. The Company will adopt the requirements of ASC 842 on January 1, 2022, using the modified retrospective approach, at the effective date, without adjusting the comparative periods. The Company elected to utilize the available package of practical expedients permitted under the transition guidance within ASC 842 which does not require it to reassess the prior conclusions about lease identification, lease classification and initial direct costs. In addition, the new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize ROU assets or lease liabilities, including ROU assets or lease liabilities for existing short-term leases of assets in transition, but recognizes lease expenses over the lease term on a straight-line basis. The Company also elected the practical expedient to not separate lease and non-lease components for all of the Company’s leases. The Company currently expects to recognize on January 1, 2022 operating lease liabilities of approximately $5 million, with corresponding ROU assets. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASC 326”): Measurement of Credit Losses on Financial Instruments to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 is effective for the Company for the annual period beginning after December 15, 2022, including interim periods within that reporting period. The Company is currently evaluating the impact of adoption of the new standard on its consolidated financial statements. In December 2019, the FASB issued ASU
No. 2019-12, Income Taxes (“Topic 740”): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU No. 2019-12 is effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The adoption of this guidance will not have a significant impact on the Company’s consolidated financial statements. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||
Schedule Of Property And Equipment | Property and equipment are stated at cost less accumulated depreciation that is calculated using the straight-line method over the estimated useful lives of the related assets, as follows:
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Inventories (Tables) |
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories |
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Property and Equipment, Net (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Property And Equipment |
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Other Current Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Liabilities |
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Commitments And Contingent Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of the Minimum Future Rental Payments Applicable to Non-Cancelable Operating Leases (Detail) | As of December 31, 2021, the minimum future rental payments applicable to non-cancelable operating leases are as follows:
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Warrants Liability (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants Liability [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of the Warrants | The fair value of the warrants was computed using the following key assumptions:
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Schedule of the Changes in the Fair Value of the Warrants Liability |
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Forfeiture Shares (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Forfeited Shares | The following assumptions were used for options granted during the year in order to estimate the fair value of stock-based compensation awards:
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Schedule of Changes in Fair Value of Forfeited Shares |
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Forfeited Ordinary Shares [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Forfeited Shares | The fair value of the Forfeiture Shares was computed using the following key assumptions:
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Schedule of Changes in Fair Value of Forfeited Shares |
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Redeemable Convertible Preferred Shares (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Right of Redeemable Convertible Preferred Shares | Rights of redeemable convertible preferred shares:
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Stock-based Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Share Option Plan | The following is a summary of the status of the Company’s share option plan as of December 31, 2021, as well as changes during the years:
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Summary of Share Options Outstanding | The following table summarizes information about share options outstanding as of December 31, 2021:
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Summary of Options Granted Estimate the Fair Value of Stock-Based Compensation Award | The following assumptions were used for options granted during the year in order to estimate the fair value of stock-based compensation awards:
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Summary of Stock Options Expenses | The following table presents the classification of the stock options expenses for the periods indicated:
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Summary of the RSU's | The following is a summary of the status of the Company’s RSU’s as of December 31, 2021, as well as changes during the year:
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Summary of Share-based Payment Arrangement, Restricted Stock Units Exercise Price Range |
(*) Less than $1 thousand
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Summary of Classification of RSU's Expenses | The following table presents the classification of RSU’s expenses for the periods indicated:
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Financial Income Net (Table) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Income Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Finance Income Net |
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Net Income (loss) Per Ordinary Shares (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted net income (loss) per ordinary share | The following table sets forth the computation of basic and diluted net income (loss) per ordinary share for the periods indicated. Net income (loss) per ordinary share calculations for all periods presented have been retrospectively adjusted to reflect the Reverse Stock Split, as discussed in Note 1(d).
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Schedule of weighted-average Ordinary shares of securities | The following weighted-average Ordinary Shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:
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Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Income (loss) before income taxes consisted of the following for the periods indicated:
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Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] |
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Schedule of Taxes on Income | Taxes on income for the years ended December 31, 2021, 2020 and 2019 were comprised of the following:
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Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation our theoretical income tax expense to actual income tax expense is as follows:
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Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of the Company’s deferred tax assets and liabilities as of December 31, 2021 and 2020 were as follows:
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Segment and Revenue by Geography and by Major Customer (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | General and administrative expenses which cannot be attributed directly, are allocated evenly between segments. Other operating expenses are allocated to segments based on headcount ratio.
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Geographic Revenues | The following table shows revenue by geography, based on the customers’ “bill to” location:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental data - Major Customers | The following table summarizes the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:
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|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment by Geography |
|
General - Additional Information (Detail) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Sep. 29, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
shares
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Limited liability company or Limited partnership, Business, Formation state | Oregon, USA | |||
Class of warrant or right, Number of securities called by each warrant or right | 0.5 | 1.5 | ||
Adjustments to additional paid in capital, Stock issued, Issuance costs | $ | $ 9,869 | $ 5,329 | $ 2,864 | |
Adjustments to additional paid in capital, Forfeiture shares liability | $ | $ 4,500 | |||
LLC [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Limited liability company or Limited partnership, Members or limited partners, Ownership interest | 25.00% | |||
General and Administrative Expense [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Options vesting acceleration and Listing expenses | $ | $ 3,400 | |||
Recapitalization [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Preferred stock, Conversion basis | a one-to-one basis | |||
Recapitalization [Member] | Redeemable Convertible Preferred Stock [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Conversion of stock, Shares converted | 67,242,640 | |||
Merger Agreement Closing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Common Stock, Conversion Basis | one | |||
Proceeds from merger | $ | $ 29,900 | |||
Merger Agreement Closing [Member] | PIPE Financing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Proceeds from merger and issuance of common stock | $ | 131,600 | |||
Payments for underwriting fees and issuance costs | $ | $ 23,400 | |||
Adjustments to additional paid in capital, Stock issued, Issuance costs | $ | $ 20,800 | |||
Noncash merger related costs | $ | 2,600 | |||
Merger Agreement Closing [Member] | PIPE Financing [Member] | General and Administrative Expense [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Noncash merger related costs | $ | 2,100 | |||
Merger Agreement Closing [Member] | PIPE Financing [Member] | Financial Income Net [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Noncash merger related costs | $ | $ 500 | |||
PTK [Member] | Merger Agreement Closing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right, Outstanding | 18,160,000 | |||
Common Stock [Member] | Recapitalization [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Share Price | $ / shares | $ 10.00 | |||
Stockholders equity, Reverse stock split, Conversion ratio | 0.662531 | |||
Common Stock [Member] | Merger Agreement Closing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Conversion of stock, Shares converted | 5,867,763 | |||
Common Stock [Member] | Merger Agreement Closing [Member] | PTK Sponsor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Stock issued during period, Shares, Issued for services | 2,875,000 | |||
Equity method investment, Ownership percentage | 35.00% | |||
Common Stock [Member] | PTK [Member] | Merger Agreement Closing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right, Number of securities called by each warrant or right | 9,080,000 | |||
Common Stock [Member] | PTK [Member] | Merger Agreement Closing [Member] | PTK Sponsor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Common Stock, Conversion Basis | 1,006,250 | |||
PIPE Shares [Member] | Private Investment In Public Equity Investors [Member] | PIPE Financing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Stock issued during period, Shares | 12,500,000 | |||
Shares issued, Price per share | $ / shares | $ 10.00 | |||
Proceeds from issuance of common stock | $ | $ 125,000 | |||
Public Warrants [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right, Outstanding | 11,500,000 | |||
Class of warrant or right, Number of securities called by each warrant or right | 1.5 | |||
Public Warrants [Member] | PTK [Member] | Merger Agreement Closing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right, Outstanding | 11,500,000 | |||
Private Warrants [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right, Outstanding | 6,660,000 | |||
Private Warrants [Member] | Merger Agreement Closing [Member] | PTK Sponsor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right issued during period, Warrants | 6,660,000 | |||
Private Warrants [Member] | PTK [Member] | Merger Agreement Closing [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Class of warrant or right, Outstanding | 6,660,000 | |||
Subsidiaries [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Equity method investment, Description of principal activities | marketing of and support for the Company’s products |
Summary of Significant Accounting Policies - Summary Of Property And Equipment (Detail) |
Dec. 31, 2021 |
---|---|
Computers And Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Salvage Value, Percentage | 33.00% |
Electronic and Laboratory Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Salvage Value, Percentage | 33.00% |
Electronic and Laboratory Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Salvage Value, Percentage | 15.00% |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Salvage Value, Percentage | 7.00% |
Exploration and Production Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Salvage Value, Percentage | 50.00% |
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2021
USD ($)
Segment
Integer
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jan. 01, 2022
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Short term deposits, Interest rate | 0.60% | 1.20% | |||
Accounts receivable, Allowance for credit loss, Writeoff | $ 0 | $ 0 | $ 0 | ||
Accounts receivable, Allowance for credit loss, Current | 0 | 0 | |||
Impairement Loss On Long-Lived Assets | $ 0 | 0 | 0 | ||
Monthly Deposits Of Employees(In%) | 8.33% | ||||
Severance Payment Calculation, Description | The Chinese subsidiary liability for severance pay for its local employees is calculated in accordance with the Chinese law. The severance payment is calculated as the product of A x B, where A is the lower of a) most recent monthly salary paid to employees or b) cap of RMB 24,633 (approximately $3,900), and B is the length of employment in the Company (years). | ||||
Deferred Revenue Recognized During Period | $ 76 | 0 | |||
Equity Investment, Amount | $ 17 | 35 | |||
Number Of Operating Segments | Segment | 2 | ||||
Number Of Market | Integer | 2 | ||||
No Loss Allocated To Participating Securities | $ 0 | ||||
Cash and Cash Equivalents | 56,791 | 26,316 | 15,556 | $ 26,043 | |
Short term Deposits, Value | 117,568 | 35,254 | |||
Accounting Standards Update 2016-02 [Member] | Subsequent Event [Member] | |||||
Operating Lease Liability | $ 5,000 | ||||
Selling and Marketing Expense [Member] | |||||
Internal Sales Commissions Recorded In Sales And Marketing Expense | 790 | 412 | $ 509 | ||
Material Rights [Member] | |||||
Deferred Revenue for Material Rights | $ 54 | $ 76 | |||
Greater Than Twelve Month [Member] | |||||
Contractual term of right of use asset | 12 months | ||||
Equal To Or Less Than Twelve Month [Member] | |||||
Contractual term of operating leases | 12 months | ||||
Less Than Twelve Month [Member] | |||||
Contractual term of Short term lease | 12 months | ||||
Maximum [Member] | |||||
Short term deposits, Maturity term | 1 year | ||||
Minimum [Member] | |||||
Short term deposits, Maturity term | 3 months |
Inventories - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Inventory Disclosure [Abstract] | |||
Inventory write down | $ 0 | $ 73 | $ 170 |
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Work in process | $ 4,718 | $ 1,400 |
Finished goods | 4,604 | 1,759 |
Inventories | $ 9,322 | $ 3,159 |
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,099 | $ 1,093 | $ 1,038 |
Impairments of property and equipment | $ 0 | $ 0 | $ 0 |
Property and Equipment, Net - Summary Of Property Plant and Equipment (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 8,114 | $ 6,627 | |
Less: accumulated depreciation | (5,373) | (4,274) | |
Property and equipment, net | 2,741 | 2,353 | $ 2,585 |
Electronic and laboratory equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 4,045 | 3,779 | |
Furniture and office equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 407 | 404 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 657 | 427 | |
Production equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 308 | 181 | |
Computers and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $ 2,697 | $ 1,836 |
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Accrued vacation | $ 3,464 | $ 2,989 |
Taxes payable | 40 | 37 |
Accrued expenses- related party | 142 | 0 |
Accrued expenses - other | 2,977 | 2,401 |
Other current liabilities | $ 6,623 | $ 5,427 |
Commitments and Contingent Liabilities - Summary of the Minimum Future Rental Payments Applicable to Non-Cancelable Operating Leases (Detail) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 1,821 |
2023 | 348 |
2024 | 30 |
Total | $ 2,199 |
Commitments and Contingent Liabilities - Additional Information (Detail) |
12 Months Ended | ||||
---|---|---|---|---|---|
Aug. 09, 2020
m²
|
Jul. 15, 2015 |
Dec. 31, 2021
USD ($)
m²
|
Dec. 31, 2020
USD ($)
m²
|
Dec. 31, 2019
USD ($)
|
|
Operating leases, Future minimum payments due, Next twelve months | $ 1,821,000 | ||||
Operating leases, Future minimum payments, Due in two years | 348,000 | ||||
Operating leases, Future minimum payments, Due in three years | 30,000 | ||||
Operating leases, Rent expense | 2,670,000 | $ 2,527,000 | $ 2,368,000 | ||
Additional royalty per chip | 0.1 | ||||
Total value of open purchase orders | 50,591,000 | 12,417,000 | |||
Purchase obligation | 6,563,000 | 3,614,000 | |||
Indemnification Agreement [Member] | |||||
Guarantor obligations, Current carrying value | 0 | 0 | |||
Research and Development Arrangement [Member] | |||||
Contractual obligation | 0 | ||||
Cost of Sales [Member] | |||||
Royalty expense | $ 844,000 | $ 711,000 | 389,000 | ||
Research and Development Expense [Member] | |||||
Repayment of liability for the received grant | $ 2,028,000 | ||||
Minimum [Member] | |||||
Percentage of net revenues per chip paid as royalty | 1.00% | ||||
Maximum [Member] | |||||
Percentage of net revenues per chip paid as royalty | 3.50% | ||||
Future Extension Periods [Member] | |||||
Operating leases, Future minimum payments due, Next twelve months | $ 10,000 | ||||
Operating leases, Future minimum payments, Due in two years | 1,457,000 | ||||
Operating leases, Future minimum payments, Due in three years | 1,689,000 | ||||
Operating leases, Future minimum payments, Due in four years | $ 281,000 | ||||
Vehicles [Member] | |||||
Lessee, Operating lease, Term of contract | 3 years | ||||
Office Building [Member] | |||||
Net rentable area | m² | 5,500 | 5,500 | 6,295 | ||
Lessee, Operating lease, Expiration period | 2023-02 | ||||
Lessee, Operating lease, Amended lease terms | According to that amendment, the lease term started on March 1, 2021 and will last through February 28, 2023 | ||||
Lessee, Operating lease, Option to extend | This amendment also provides the Company with an option to extend the lease period by additional two years until February 28, 2025 | ||||
Lessee, Operating lease, Option to extend, End date | Feb. 28, 2025 | ||||
Office Building [Member] | Before Extension [Member] | |||||
Lessee, Operating lease, Expiration period | 2021-02 | ||||
Office Building [Member] | Other Noncurrent Assets [Member] | |||||
Security deposit, Non current | $ 433,000 | $ 336,000 |
Warrants Liability - Summary of Fair Value Of The Warrants (Detail) - Fair Value, Inputs, Level 3 [Member] - Warrant [Member] |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Stock price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 3.2128 | 3.97 |
Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 0.40171 | 0.40171 |
Expected term (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 1.13 | 0.13 |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 45.85 | 48.15 |
Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 1.59 | |
Risk-free interest rate | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 0.1 | |
Risk-free interest rate | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 0.17 | |
Expected dividend rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability, Measurement Input | 0 | 0 |
Warrants Liability - Summary of the Changes in the Fair Value of the Warrants Liability (Detail) - Derivative Financial Instruments, Liabilities [Member] - Warrant [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance at beginning of year | $ 568 | $ 459 | $ 459 |
Exercise of warrants | (568) | ||
Changes in fair value | 109 | ||
Balance at end of year | $ 568 | $ 459 |
Warrants Liability - Additional information (Detail) - Series B1 Redeemable Convertible Preferred Stock Warrants [Member] |
Feb. 16, 2011
$ / shares
shares
|
---|---|
Class of warrant or right, Date from which warrants or rights exercisable | Feb. 16, 2021 |
Class of warrant or right, Annual anniversary following the closing of an IPO from which warrants or rights exercisable | 5 years |
Series B1 Redeemable Convertible Preferred Stock [Member] | |
Class of warrant or right, Number of securities called by warrants or rights | shares | 161,808 |
Temporary equity par or stated value per share | $ / shares | $ 0.01 |
Class of warrant or right, Exercise price of warrants or rights | $ / shares | $ 0.40171 |
Class of warrant or right, Warrants exercised during period | shares | 161,808 |
Forfeiture Shares - Summary Of Fair Value of Forfeited Shares (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility range, Minimum | 46.71% | ||
Expected volatility range, Maximum | 50.70% | ||
Risk-free rate range, Minimum | 0.61% | 0.42% | |
Risk-free rate range, Maximum | 1.74% | 1.69% | |
Forfeited Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock price | $ 7.7 | $ 7.7 | |
Expected volatility range, Minimum | 48.77% | ||
Expected volatility range, Maximum | 48.92% | ||
Risk-free rate range, Minimum | 0.91% | ||
Risk-free rate range, Maximum | 1.08% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 4 years | 10 years | 10 years |
Maximum [Member] | Forfeited Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years 9 months | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 3 years | 6 years | 6 years |
Minimum [Member] | Forfeited Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 2 years 9 months |
Forfeiture Shares - Summary of Changes In Fair Value Of Forfeited Shares (Detail) - Changes Measurement [Member] - Forfeited Shares [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of year | $ 0 | $ 0 |
Issuance of Forfeiture Shares | 4,485 | 0 |
Changes in fair value | 173 | 0 |
Balance at end of year | $ 4,658 | $ 0 |
Forfeiture Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Method Used For Calculating Fair Value , Monte-Carlo Simulation | Monte-Carlo simulation | ||
Fair value Of shares | $ 4,485 | ||
Expected volatility range, Minimum | 46.71% | ||
Expected volatility range, Maximum | 50.70% | ||
Risk-free rate range, Minimum | 0.61% | 0.42% | |
Risk-free rate range, Maximum | 1.74% | 1.69% | |
Monte Carlo simulation [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Stock price per share | $ 7.4 | $ 7.4 | |
Expected volatility range, Minimum | 47.74% | ||
Expected volatility range, Maximum | 50.31% | ||
Risk-free rate range, Minimum | 0.53% | ||
Risk-free rate range, Maximum | 0.76% | ||
Maximum [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Expected Term In years | 4 years | 10 years | 10 years |
Minimum [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Expected Term In years | 3 years | 6 years | 6 years |
PTK Sponsor [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Number Of Shares Issued With Respect To Forfeiture On Failure Of Targets | 1,006,250 |
Redeemable Convertible Preferred Shares - Summary Of Right Of Redeemable Convertible Preferred Shares (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | $ 0 | $ 219,037 |
Series A Preferred Stock [Member] | ||
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | 0 | 34,609 |
SeriesB1PreferredStock [Member] | ||
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | 0 | 7,613 |
Series B2 Preferred Stock [Member] | ||
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | 0 | 19,029 |
Series C Preferred Stock [Member] | ||
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | 0 | 27,586 |
Series D Preferred Stock [Member] | ||
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | 0 | 77,806 |
Series E Preferred Stock [Member] | ||
Disclosure of REDEEMABLE CONVERTIBLE PREFERRED SHARES [Line Items] | ||
Preferred Stock, Liquidation Preference, Value | $ 0 | $ 52,394 |
Redeemable Convertible Preferred Shares - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2019 |
|
Class of Stock [Line Items] | |||
Conversion Rate Of Preferred Shares To Ordinary Shares | $ 1 | $ 1 | |
Redeemable Convertible Preferred Stock Voting Rights | 65 | ||
Preferred Stock, Amount of Preferred Dividends in Arrears | $ 64,578 | ||
Preferred Stock, Dividend Rate, Percentage | 7.00% | ||
Series C Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Convertible, Terms | If the IPO closing price, is less than 1.2 times the then applicable Conversion Price of the Preferred C Shares, then, immediately prior to closing of such initial public offering (and, for the avoidance of doubt, prior to the conversion of the Preferred C Shares into Ordinary Shares) the then applicable Conversion Price of the Preferred C Shares shall be automatically reduced so as to be equal to the IPO Closing Price divided by 1.2. | ||
Series D Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Convertible, Terms | If the IPO closing price, is less than 1.2 times the then applicable Conversion Price of the Series D Preferred Shares, then, immediately prior to closing of such initial public offering (and, for the avoidance of doubt, prior to the conversion of the Series D Preferred Shares into Ordinary Shares) the then applicable Conversion Price of the Series D Preferred Shares shall be automatically reduced so as to be equal to the IPO closing price divided by 1.2. | ||
Series E Preferred Stock [Member] | |||
Class of Stock [Line Items] | |||
Preferred Stock, Convertible, Terms | If the IPO closing price, is less than 1.5 times the then applicable Conversion Price of the Series E Preferred Shares, then, immediately prior to closing of such initial public offering (and, for the avoidance of doubt, prior to the conversion of the Series E Preferred Shares into Ordinary Shares) the then applicable Conversion Price of the Series E Preferred Shares shall be automatically reduced so as to be equal to the IPO closing price divided by 1.5. | ||
By vote or written consent [Member] | |||
Class of Stock [Line Items] | |||
Redeemable Convertible Preferred Stock Voting Rights | 70 | ||
Voting together as a single class or by consent of such required majority [Member] | |||
Class of Stock [Line Items] | |||
Redeemable Convertible Preferred Stock Voting Rights | 50 | ||
Qualified IPO [Member] | |||
Class of Stock [Line Items] | |||
Net Proceeds | $ 100 |
Shareholders Equity - Additional Information (Detail) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Sep. 29, 2021 |
|
Number of Shares Purchased Against Each Warrant | 1.5 | 0.5 |
PTK Acquisition Corp [Member] | ||
Number of Shares Purchased Against Each Warrant | 1.5 | |
Price per Common Share per Warrant | $ 11.50 | |
Public Warrants [Member] | ||
Number of Shares Purchased Against Each Warrant | 1.5 | |
Price per Common Share per Warrant | $ 11.50 | |
Number of Public Warrants outstanding | 11,500,000 | |
Total Number of Shares Purchased Against Each Warrant | 5,750,000 | |
Public Warrants [Member] | Warrants and Rights Subject to Mandatory Redemption Share Price Exceeds Eighteen Dollars [Member] | ||
Class of Warrants or Rights Redemption Price Per Warrant | 0.01 | |
Share price | $ 18.00 | |
Number of Trading Days for Determining the Share Price | 20 days | |
Number of Consecutive Trading Days for Determining the Share Price | 30 days | |
Private Warrants [Member] | ||
Number of Public Warrants outstanding | 6,660,000 |
Stock-based Compensation - Summary of Share Option Plan (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options outstanding, Beginning balance | shares | 15,955,892 |
Number of Options, Granted | shares | 1,662,897 |
Number of Options, Exercised | shares | (1,722,880) |
Number of Options, Forfeited | shares | (446,396) |
Number of Options outstanding, Ending balance | shares | 15,449,513 |
Number of Options, exercisable | shares | 11,449,733 |
Weighted- Average Exercise price, Beginning balance | $ / shares | $ 0.71 |
Weighted- Average Exercise price, Granted | $ / shares | 0.90 |
Weighted- Average Exercise price, Exercised | $ / shares | 0.72 |
Weighted- Average Exercise price, Forfeited | $ / shares | 0.84 |
Weighted- Average Exercise price, Ending balance | $ / shares | 0.73 |
Weighted- Average Exercise price, exercisable | $ / shares | $ 0.68 |
Stock-based Compensation - Summary of Share Options Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number outstanding | 15,449,513 | 15,955,892 |
Weighted average exercise price | $ 0.73 | $ 0.71 |
Number of Options, exercisable | 11,449,733 | |
Weighted- Average Exercise price, exercisable | $ 0.68 | |
Aggregate intrinsic value | $ 1 | |
Range Of Exercise Price One [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Lower Range Limit | $ 0.15 | |
Upper Range Limit | $ 0.86 | |
Number outstanding | 15,403,350 | |
Weighted average remaining contractual term | 6 years 1 month 13 days | |
Weighted average exercise price | $ 0.72 | |
Aggregate intrinsic value | $ 107,517 | |
Number of Options, exercisable | 11,416,017 | |
Weighted average remaining contractual term | 5 years 3 months 14 days | |
Weighted- Average Exercise price, exercisable | $ 0.67 | |
Aggregate intrinsic value | $ 80,243 | |
Range Of Exercise Price Two [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Upper Range Limit | $ 1.87 | |
Number outstanding | 5,963 | |
Weighted average remaining contractual term | 9 years 10 days | |
Weighted average exercise price | $ 1.87 | |
Aggregate intrinsic value | $ 35 | |
Range Of Exercise Price Three [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Upper Range Limit | $ 2.10 | |
Number outstanding | 33,126 | |
Weighted average remaining contractual term | 2 years 8 months 8 days | |
Weighted average exercise price | $ 2.10 | |
Aggregate intrinsic value | $ 186 | |
Number of Options, exercisable | 33,126 | |
Weighted average remaining contractual term | 2 years 8 months 8 days | |
Weighted- Average Exercise price, exercisable | $ 2.10 | |
Aggregate intrinsic value | $ 186 | |
Range Of Exercise Price Four [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Upper Range Limit | $ 9.07 | |
Number outstanding | 7,074 | |
Weighted average remaining contractual term | 9 years 11 months 12 days | |
Weighted average exercise price | $ 9.07 | |
Number of Options, exercisable | 590 | |
Weighted average remaining contractual term | 9 years 11 months 12 days | |
Weighted- Average Exercise price, exercisable | $ 9.07 |
Stock-based Compensation - Summary of Options Granted Estimate the Fair Value of Stock-Based Compensation Award (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Expected volatility range, Minimum | 46.71% | ||
Expected volatility range, Maximum | 50.70% | ||
Expected volatility | 48.15% | ||
Expected dividend rate | 0.00% | 0.00% | |
Risk-free rate range, Minimum | 0.61% | 0.42% | |
Risk-free rate range, Maximum | 1.74% | 1.69% | |
Minimum [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Expected term | 3 years | 6 years | 6 years |
Maximum [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Expected term | 4 years | 10 years | 10 years |
Stock-based Compensation - Summary of Stock Options Expenses (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation -Stock Options | $ 9,823 | $ 5,329 | $ 2,864 |
Cost of revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation -Stock Options | 158 | 178 | 180 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation -Stock Options | 1,684 | 1,267 | 1,266 |
Selling, general and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation -Stock Options | $ 7,981 | $ 3,884 | $ 1,418 |
Stock-based Compensation - Summary of the RSU's (Detail) - Restricted Stock Units (RSUs) [Member] |
12 Months Ended |
---|---|
Dec. 31, 2021
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Options outstanding, Beginning balance | 0 |
Number of Options, Granted | 133,384 |
Number of Options, Exercised | 0 |
Number of Options, Forfeited | 0 |
Number of Options outstanding, Ending balance | 133,384 |
Number of Options, exercisable | 616 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 0 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | $ 7.89 |
Weighted-Average Grant Date Fair Value, Exercised | 0 |
Weighted-Average Grant Date Fair Value, Exercised | $ / shares | $ 0 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | 7.89 |
Weighted-Average Grant Date Fair Value, Exercisable | $ / shares | $ 7.89 |
Stock-based Compensation - Summary of Share-based Payment Arrangement, Restricted Stock Units Exercise Price Range (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Schedule Of Share Based Compensation Shares Authorized Under Equity Instruments Other Than Options By Exercise Price Range [Line Items] | ||
Outstanding, Number outstanding | 133,384 | 0 |
Outstanding, Weighted average exercise price | $ 7.89 | $ 0 |
Exercisable, Number Exercisable | 616 | |
Exercisable, Weighted Average exercise price | $ 7.89 | |
Range Of Exercise Price One [Member] | ||
Schedule Of Share Based Compensation Shares Authorized Under Equity Instruments Other Than Options By Exercise Price Range [Line Items] | ||
Outstanding, Range Of Exercise Prices | $ 7.89 | |
Outstanding, Number outstanding | 133,384 | |
Outstanding, Weighted average remaining contractual term | 9 years 11 months 15 days | |
Outstanding, Weighted average exercise price | $ 7.89 | |
Outstanding, Aggregate intrinsic value | $ 76 | |
Exercisable, Number Exercisable | 616 | |
Exercisable, Weighted average remaining contractual term | 9 years 11 months 15 days | |
Exercisable, Weighted Average exercise price | $ 7.89 |
Stock-based Compensation - Summary of Share-based Payment Arrangement, Restricted Stock Units Exercise Price Range (Parenthetical) (Detail) $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Share-based Payment Arrangement [Abstract] | |
Aggregate intrinsic value | $ 1 |
Stock-based Compensation - Summary of Classification of RSU's Expenses (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation-RSUs | $ 9,869 | $ 5,329 | $ 2,864 |
Cost of revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation-RSUs | 6 | ||
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation-RSUs | 22 | ||
Selling, general and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation-RSUs | 18 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total stock-based compensation-RSUs | $ 46 |
Stock-Based Compensation - Additional Information (Detail) |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
shares
|
Dec. 31, 2021
USD ($)
Quarters
shares
|
Dec. 31, 2020
shares
|
Dec. 31, 2019
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options, Granted | 1,662,897 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award equity instruments granted | 133,384 | |||
Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ | $ 914,000 | |||
Cost Expected to be Expensed, Weighted Average Period | 3 years 9 months 18 days | |||
Restricted Stock Units (RSUs) [Member] | Related Parties [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award equity instruments granted | 7,398 | 0 | 0 | |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number | 814,272 | |||
Unrecognized Compensation Costs | $ | $ 13,853,000 | |||
Cost Expected to be Expensed, Weighted Average Period | 2 years 8 months 12 days | |||
Share-based Payment Arrangement, Option [Member] | Merger and Acquisition Transaction [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized Compensation Costs | $ | $ 7,281,000 | |||
Cost Expected to be Expensed, Weighted Average Period | 2 years 3 months 18 days | |||
Number Of Outstanding Options Unvested | 2,300,980 | |||
Share-based Payment Arrangement, Option [Member] | Related Parties [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Options, Granted | 321,777 | 3,347,705 | 1,003,185 | |
Share-based Payment Arrangement, Option [Member] | General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Payment Arrangement, Accelerated Cost | $ | $ 3,396,000 | |||
Valens Semiconductor Ltd. 2021 Share Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based Payment Award, Expiration Period | 10 years | |||
Sharebased Payment Award, Vesting Rights Percentage | 25.00% | |||
Share based Payment Award, Vesting Rights Remaining Spread In Quarters | Quarters | 12 | |||
Common stock capital shares reserved for future issuance additions | 8,370,000 | 2,318,860 | ||
Ordinary Shares, Reserved For Issuance | 28,383,788 | 20,013,788 |
Financial Income Net - Summary Of Finance Income Net (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Finance Income Net [Abstract] | |||
Foreign currency exchange differences | $ 1,295 | $ 2,592 | $ 378 |
Issuance costs attributed to Forfeiture Shares | (473) | ||
Interest income | 311 | 849 | 2,174 |
Change in fair value of Warrant liability | (109) | ||
Change in fair value of Forfeiture shares | (173) | ||
Other | (31) | (32) | (109) |
Total financial income, net | $ 929 | $ 3,300 | $ 2,443 |
Net Income (loss) Per Ordinary Shares - Summary of Basic And Diluted Net Income (Loss) Per Ordinary Share (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Basic net loss per Ordinary Share | |||
Net loss from continuing operations | $ (26,534) | $ (19,635) | $ (25,934) |
Numerator for basic and diluted net loss per common share net loss attributable to common stockholders | $ (37,864) | $ (33,965) | $ (39,325) |
Denominator for basic and dilutive net loss per common share- adjusted weighted-average share | 33,031,205 | 10,448,218 | 9,522,608 |
Basic and dilutive net loss per common share | $ (1.15) | $ (3.25) | $ (4.13) |
Series E Redeemable Preferred Stock [Member] | |||
Basic net loss per Ordinary Share | |||
Redeemable Preferred Stock Dividends | $ (2,710) | $ (3,428) | $ (3,203) |
Series D Redeemable Preferred Stock [Member] | |||
Basic net loss per Ordinary Share | |||
Redeemable Preferred Stock Dividends | (4,023) | (5,090) | (4,757) |
Series C Redeemable Preferred Stock [Member] | |||
Basic net loss per Ordinary Share | |||
Redeemable Preferred Stock Dividends | (1,426) | (1,805) | (1,687) |
Series B-2 Redeemable Preferred Stock [Member] | |||
Basic net loss per Ordinary Share | |||
Redeemable Preferred Stock Dividends | (985) | (1,245) | (1,163) |
Series B-1 Redeemable Preferred Stock [Member] | |||
Basic net loss per Ordinary Share | |||
Redeemable Preferred Stock Dividends | (394) | (498) | (465) |
Series A Redeemable Preferred Stock [Member] | |||
Basic net loss per Ordinary Share | |||
Redeemable Preferred Stock Dividends | $ (1,792) | $ (2,264) | $ (2,116) |
Net Income (loss) Per Ordinary Shares - Summary of Weighted Average Ordinary Shares of Securities (Detail) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Series A Redeemable Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 24,584,645 | 32,901,384 | 32,901,384 |
Series B-1 Redeemable Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,524,342 | 9,957,400 | 9,957,400 |
Series B-2 Redeemable Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 13,950,841 | 18,670,270 | 18,670,270 |
Series C Redeemable Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 7,042,522 | 9,424,938 | 9,424,938 |
Series D Redeemable Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 14,431,585 | 19,313,646 | 19,313,646 |
Series E Redeemable Preferred Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 8,279,726 | 11,080,674 | 11,080,674 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 16,028,893 | 15,257,902 | 14,157,546 |
Warrant Liability [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 41,351 | 161,808 | 161,808 |
Public Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,683,500 | ||
Private Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,906,944 | ||
Forfeilture Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 508,715 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Line Items] | |||
Applicable statutory tax rate | 23.00% | 23.00% | 23.00% |
Deferrred tax asset valuation allowance | $ (31,892) | $ (22,297) | |
Change in valuation allowance | $ (9,595) | (4,500) | $ (7,931) |
Israel Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable statutory tax rate | 23.00% | ||
Operating Loss Carryforwards | $ 88,000 | $ 85,000 | $ 65,000 |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable statutory tax rate | 21.00% | ||
California Franchise Tax Board [Member] | Valens Semiconductor Inc [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable state tax rate | 8.84% | ||
California Franchise Tax Board [Member] | Valens Merger Sub, Inc [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable state tax rate | 8.84% | ||
Operating Loss Carryforwards | $ 5,000 | ||
Operating Loss Carryforwards, Limitations on Use | carry forward loss is subject to the 382 limitation and has no expiration date | ||
Texas State Tax Authority [Member] | Valens Semiconductor Inc [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable state tax rate | 0.75% | ||
National Tax Agency, Japan [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable statutory tax rate | 36.00% | ||
Federal Ministry of Finance, Germany [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable statutory tax rate | 30.00% | ||
State Administration of Taxation, China [Member] | |||
Income Tax Disclosure [Line Items] | |||
Applicable statutory tax rate | 5.00% |
Income Taxes - Summary of Income loss Before Income Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Domestic (Israel) | $ (26,549) | $ (19,935) | $ (26,083) |
Foreign | 412 | 447 | 542 |
Loss before income taxes | $ (26,137) | $ (19,488) | $ (25,541) |
Income Taxes - Summary of Current and Deferred Portions of Income Tax Benefits (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Domestic (Israel) | $ 306 | $ 97 | $ 281 |
Foreign | 101 | 67 | 133 |
Income tax expenses | $ 407 | $ 164 | $ 414 |
Income Taxes - Summary of Taxes on Income (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Current Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Domestic | $ 0 | $ 0 | $ 0 |
Foreign | 40 | 37 | 25 |
Total | 40 | 37 | 25 |
Deferred Federal, State and Local, Tax Expense (Benefit) [Abstract] | |||
Domestic | 0 | 0 | 0 |
Foreign | 0 | 0 | 0 |
Total | 0 | 0 | 0 |
Provision for income taxes | $ 40 | $ 37 | $ 225 |
Income Taxes - Summary of Reconciliation of Theoretical Income Tax Expense to Actual Income Tax Expense (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income Tax Disclosure [Abstract] | |||
Loss before taxes on income and before Equity in earnings of investee | $ (26,137) | $ (19,488) | $ (25,541) |
Statutory tax rate in Israel | 23.00% | 23.00% | 23.00% |
Theoretical tax benefit | $ (6,011) | $ (4,482) | $ (5,874) |
Increase (decrease) in taxes resulting from [Abstract] | |||
Effect of different tax rates applicable in foreign jurisdictions | 1 | 4 | 5 |
Operating losses and other temporary differences for which valuation allowance was provided | 3,773 | 3,224 | 5,203 |
Permanent differences | 2,338 | 1,321 | 799 |
Tax prepayment | 306 | 97 | 281 |
Income tax expenses | $ 407 | $ 164 | $ 414 |
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Deferred Tax Assets, Net of Valuation Allowance [Abstract] | ||
Tax loss carryforwards | $ 21,221 | $ 19,477 |
Research and development | 7,526 | 2,124 |
Issuance costs | 2,338 | |
Employee and payroll accrued expenses | 763 | 654 |
Other | 44 | 42 |
Total deferred tax assets | 31,892 | 22,297 |
Less valuation allowance for deferred tax assets | (31,892) | (22,297) |
Deferred tax assets | $ 0 | $ 0 |
Segment and Revenue by Geography and by Major Customer - Summary of Segment Reporting Information, by Segment (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Segment Reporting Information [Line Items] | |||
Revenues | $ 70,684 | $ 56,910 | $ 60,041 |
Gross profit (Loss) | 50,579 | 43,478 | 47,456 |
Research and development expenses | (46,875) | (44,725) | (52,704) |
Sales and marketing expenses | (14,214) | (13,657) | (17,616) |
General and administrative expenses | (16,556) | (7,884) | (5,120) |
Segment operating profit (loss) | (27,066) | (22,788) | (27,984) |
Financial income, net | 929 | 3,300 | 2,443 |
Loss before taxes on income | (26,544) | (19,652) | (25,955) |
Depreciation expenses | 1,099 | 1,093 | 1,038 |
consolidated [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 70,684 | 56,910 | 60,041 |
Gross profit (Loss) | 50,579 | 43,478 | 47,456 |
Research and development expenses | 46,875 | 44,725 | 52,704 |
Sales and marketing expenses | 14,214 | 13,657 | 17,616 |
General and administrative expenses | 16,556 | 7,884 | 5,120 |
Segment operating profit (loss) | (27,066) | (22,788) | (27,984) |
Financial income, net | 929 | 3,300 | 2,443 |
Loss before taxes on income | (26,137) | (19,488) | (25,541) |
Depreciation expenses | 1,099 | 1,093 | 1,038 |
Audio Video [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 62,801 | 54,843 | 59,053 |
Gross profit (Loss) | 48,909 | 43,609 | 47,699 |
Research and development expenses | 14,054 | 13,116 | 20,257 |
Sales and marketing expenses | 6,944 | 6,625 | 8,046 |
General and administrative expenses | 8,322 | 4,064 | 2,569 |
Segment operating profit (loss) | 19,589 | 19,804 | 16,827 |
Depreciation expenses | 371 | 419 | 505 |
Automotive [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,883 | 2,067 | 988 |
Gross profit (Loss) | 1,670 | (131) | (243) |
Research and development expenses | 32,821 | 31,609 | 32,447 |
Sales and marketing expenses | 7,270 | 7,032 | 9,570 |
General and administrative expenses | 8,234 | 3,820 | 2,551 |
Segment operating profit (loss) | (46,655) | (42,592) | (44,811) |
Depreciation expenses | $ 728 | $ 674 | $ 533 |
Segment and Revenue by Geography and by Major Customer - Summary of Geographic Revenues (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | $ 70,684 | $ 56,910 | $ 60,041 |
Israel | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | 1,670 | 1,028 | 1,470 |
China | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | 15,574 | 11,989 | 7,268 |
Hong Kong | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | 13,964 | 9,780 | 11,267 |
United States | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | 10,842 | 7,969 | 12,189 |
Mexico | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | 2,381 | 7,708 | 9,065 |
Japan | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | 7,669 | 6,802 | 8,895 |
Other | |||
Geographic Areas Revenues From External Customers [Line Items] | |||
Revenues | $ 18,584 | $ 11,634 | $ 9,887 |
Segment and Revenue by Geography and by Major Customer - Summary of Supplemental data - Major Customers (Detail) - Customer Concentration Risk [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenue Benchmark [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 36.00% | |
Revenue Benchmark [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 16.00% | 20.00% | |
Revenue Benchmark [Member] | Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 14.00% | |
Revenue Benchmark [Member] | Customer D [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.00% | 3.00% | |
Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 9.00% | 10.00% | 12.00% |
Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 17.00% | 18.00% |
Accounts Receivable [Member] | Customer D [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 12.00% | 14.00% |
Segment and Revenue by Geography and by Major Customer - Summary of Property and Equipment by Geography (Detail) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Geographic Areas Long Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | $ 2,741 | $ 2,353 | $ 2,585 |
Domestic (Israel) | |||
Geographic Areas Long Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | 2,259 | 1,543 | 1,939 |
Taiwan | |||
Geographic Areas Long Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | 199 | 344 | 349 |
China | |||
Geographic Areas Long Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | 210 | 312 | |
USA | |||
Geographic Areas Long Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | $ 73 | 151 | 290 |
Other | |||
Geographic Areas Long Lived Assets [Line Items] | |||
Property, Plant and Equipment, Net | $ 3 | $ 7 |
Segment and Revenue by Geography and by Major Customer - Additional Information (Detail) |
12 Months Ended |
---|---|
Dec. 31, 2021
segments
| |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Related Party Transactions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Related Party Transaction [Line Items] | ||||
Share-based compensation arrangement by share-based payment award options grants in period gross | 1,662,897 | |||
Share-based compensation arrangement by share-based payment award options grants in period Weighted average exercise price | $ 0.90 | |||
Meger Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Due to Related Parties | $ 142 | $ 0 | ||
Share-based Payment Arrangement, Option [Member] | ||||
Related Party Transaction [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, accelerated vesting, number | 814,272 | |||
Non Executive Officers and Board Members [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Related Party Transaction [Line Items] | ||||
Share-based compensation arrangement by share-based payment award options grants in period gross | 321,777 | 3,347,705 | 1,089,195 | |
Share-based compensation arrangement by share-based payment award options grants in period Weighted average exercise price | $ 1.04 | $ 0.86 | $ 0.86 | |
Share Based Compensation Arrangement by Share Based Payment Award Options Granted in Period Fair Value | $ 1,266 | |||
Non Executive Officers and Board Members [Member] | Share-based Payment Arrangement, Option [Member] | Minimum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nonvested award cost not yet recognized period for recognition | 3 years | |||
Non Executive Officers and Board Members [Member] | Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Related Party Transaction [Line Items] | ||||
Nonvested award cost not yet recognized period for recognition | 4 years | |||
Board Members [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Share-based compensation arrangement by share-based payment award non option equity instruments granted | 7,398 | |||
Nonvested award cost not yet recognized period for recognition | 3 years | |||
dummy | $ 55 | |||
Executive [Member] | ||||
Related Party Transaction [Line Items] | ||||
Accrued Bonuses | 179 | $ 92 | ||
Executive [Member] | Cash Bonus [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 1,545 | |||
Executive [Member] | Share-based Payment Arrangement, Option [Member] | ||||
Related Party Transaction [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, accelerated vesting, number | 814,272 | |||
Share-based Payment Arrangement, Accelerated Cost | $ 3,396 | |||
Executive or Member of Board of Directors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Term Of Employment | 5 years | |||
Term Of Employment Ending Month Year | 2025-01 |
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