Exhibit 99.1
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
JUNE 30, 2023
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
AS OF JUNE 30, 2023
CONTENTS
Page | |
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)- IN U.S. DOLLARS ($): | |
Balance sheets | 3-4 |
Statements of operations | 5 |
Statements of changes in shareholder’s equity | 6 |
Statements of cash flows | 7 |
Notes to consolidated financial statements | 8-18 |
2
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, 2023 | December 31, 2022 | |||||||
U.S. dollars in thousands | ||||||||
Assets | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | ||||||||
Short-term deposits | ||||||||
Trade accounts receivable | ||||||||
Prepaid expenses and other current assets | ||||||||
Inventories | ||||||||
TOTAL CURRENT ASSETS | ||||||||
LONG-TERM ASSETS: | ||||||||
Property and equipment, net | ||||||||
Operating lease right-of-use assets | ||||||||
Other assets | ||||||||
TOTAL LONG-TERM ASSETS | ||||||||
TOTAL ASSETS |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
3
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (continued)
June 30, 2023 | December 31, 2022 | |||||||
U.S. dollars in thousands | ||||||||
Liabilities and Shareholders’ Equity | ||||||||
CURRENT LIABILITIES: | ||||||||
Trade accounts payable | ||||||||
Accrued compensation | ||||||||
Current maturities of operating leases liabilities | ||||||||
Other current liabilities | ||||||||
TOTAL CURRENT LIABILITIES | ||||||||
LONG-TERM LIABILITIES: | ||||||||
Forfeiture Shares, | ||||||||
Non-current operating leases liabilities | ||||||||
Other long-term liabilities | ||||||||
TOTAL LONG-TERM LIABILITIES | ||||||||
TOTAL LIABILITIES | ||||||||
COMMITMENTS AND CONTINGENT LIABILITIES (note 5) | ||||||||
SHAREHOLDERS’ EQUITY: | ||||||||
Ordinary shares, | ||||||||
Additional paid-in capital | ||||||||
Accumulated deficit | ( | ) | ( | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
4
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six months ended June 30 | Three months ended June 30 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
U.S. dollars in thousands, except share and per share amounts | ||||||||||||||||
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 | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Change in fair value of Forfeiture Shares | ||||||||||||||||
Financial income (expenses), net | ( | ) | ( | ) | ||||||||||||
LOSS BEFORE INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
LOSS AFTER INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Equity in earnings of an investee | ||||||||||||||||
NET LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
( | ) | ( | ) | ( | ) | ( | ) | |||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
5
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
Six months ended June 30, 2023 | ||||||||||||||||||||
Ordinary shares | Additional paid-in | Accumulated | ||||||||||||||||||
Shares | Amount | capital | deficit | Total | ||||||||||||||||
Balance as of January 1, 2023 | (*) | ( | ) | |||||||||||||||||
Exercise of options and vesting of RSUs | ||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||
Net loss for the period | - | ( | ) | ( | ) | |||||||||||||||
Balance as of June 30, 2023 | (*) | ( | ) |
Six months ended June 30, 2022 | ||||||||||||||||||||
Ordinary shares | Additional paid-in | Accumulated | ||||||||||||||||||
Shares | Amount | capital | deficit | Total | ||||||||||||||||
Balance as of January 1, 2022 | (*) | ( | ) | |||||||||||||||||
Exercise of options | ||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||
Net loss for the period | - | ( | ) | ( | ) | |||||||||||||||
Balance as of June 30, 2022 | (*) | ( | ) |
Three months ended June 30, 2023 | ||||||||||||||||||||
Ordinary shares | Additional paid-in | Accumulated | ||||||||||||||||||
Shares | Amount | capital | deficit | Total | ||||||||||||||||
Balance as of April 1, 2023 | (*) | ( | ) | |||||||||||||||||
Exercise of options and vesting of RSUs | ||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||
Net loss for the period | - | ( | ) | ( | ) | |||||||||||||||
Balance as of June 30, 2023 | (*) | ( | ) |
Three months ended June 30, 2022 | ||||||||||||||||||||
Ordinary shares | Additional paid-in | Accumulated | ||||||||||||||||||
Shares | Amount | capital | deficit | Total | ||||||||||||||||
Balance as of April 1, 2022 | (*) | ( | ) | |||||||||||||||||
Exercise of options | ||||||||||||||||||||
Stock-based compensation | - | |||||||||||||||||||
Net loss for the period | - | ( | ) | ( | ) | |||||||||||||||
Balance as of June 30, 2022 | (*) | ( | ) |
(*) |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
6
VALENS SEMICONDUCTOR LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six months ended June 30 | Three months ended June 30 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
U.S. dollars in thousands | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
Net loss for the period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Income and expense items not involving cash flows: | ||||||||||||||||
Depreciation | ||||||||||||||||
Stock-based compensation | ||||||||||||||||
Exchange rate differences | ||||||||||||||||
Interest on short-term deposits | ( | ) | ( | ) | ( | ) | ||||||||||
Change in fair value of Forfeiture Shares | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Reduction in the carrying amount of ROU assets | ||||||||||||||||
Equity in earnings of investee, net of dividend received | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Trade accounts receivable | ( | ) | ( | ) | ( | ) | ||||||||||
Prepaid expenses and other current assets | ||||||||||||||||
Inventories | ( | ) | ( | ) | ||||||||||||
Other assets | ( | ) | ||||||||||||||
Trade accounts payable | ( | ) | ( | ) | ||||||||||||
Accrued compensation | ( | ) | ||||||||||||||
Other current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Change in operating lease liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other long-term liabilities | ||||||||||||||||
Net cash provided by (used in) operating activities | ( | ) | ( | ) | ( | ) | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
Investment in short-term deposits | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Maturities of short-term deposits | ||||||||||||||||
Purchase of property and equipment | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net cash provided by investing activities | ||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
Exercise of stock options | ||||||||||||||||
Net cash provided by financing activities | ||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ) | ||||||||||||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | ||||||||||||||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | ||||||||||||||||
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION - | ||||||||||||||||
Cash paid for taxes | ||||||||||||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||||||
Trade accounts payable on account on property and equipment | - | |||||||||||||||
Operating lease liabilities arising from obtaining operating right-of-use assets |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
7
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
NOTE 1 - GENERAL:
Valens Semiconductor Ltd. (hereafter “Valens”, and together with its wholly owned subsidiaries, the “Company”), was incorporated in Israel in 2006.
As of September 30, 2021, the Company began trading on the New York Stock Exchange under the Symbol “VLN”.
Please also refer to Note 1(c) in the consolidated financial statement for the year ended December 31, 2022.
Valens is a leading provider of semiconductor products (chips), operates in the Audio-Video and Automotive industries, renowned for its Physical Layer (PHY) technology, 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 digital connectivity between ultra-HD video sources and remote displays. In the automotive domain, Valens’ product offering includes both symmetric and asymmetric connectivity technology for high bandwidth transmission of native interfaces over a single low-cost wires and connectors. Valens’ advanced PHY technology 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.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
a. |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, cash flows, and shareholders’ equity. All such adjustments are of a normal, recurring nature.
The results of operations for the six and three months ended June 30, 2023, shown in these financial statements are not necessarily indicative of the results to be expected for the full year ending December 31, 2023. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022.
The carrying value of cash and cash equivalents, accounts receivables, deposits and accounts payable (included in the condensed consolidated balance sheets) approximates their fair value because of their generally short maturities.
There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the year ended December 31, 2022, other than as stated below.
8
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
b. |
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’s accounts receivables accounting policy from January 1, 2023, following the adoption of the new CECL standard:
The Company estimates CECL on trade receivables at inception for estimated losses resulting from the inability of the Company’s customers to make required payments, based on estimated current expected credit losses. The allowance represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable considering historical information, current market conditions and reasonable and supportable forecasts when appropriate. The estimate is a result of the Company’s ongoing evaluation of collectability, customer creditworthiness, historical levels of credit losses, and future expectations.
There were no write-offs of accounts receivable for the six and three months ended June 30, 2023, and 2022, respectively. There are no expected credit losses recorded as of June 30, 2023, and December 31, 2022.
The Company’s accounts receivables accounting policy until December 31, 2022, prior to the adoption of the new CECL standard:
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.
c. |
Recently Adopted accounting Standards:
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. The guidance is effective for the Company for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Early application is permitted. The Company adopted ASC 326 on January 1, 2023, and there was no material impact on the Company’s consolidated balance sheet and the consolidated statements of operations upon adoption.
9
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 3 – INVENTORIES:
June 30, 2023 | December 31, 2022 | |||||||
U.S. dollars in thousands | ||||||||
Work in process | ||||||||
Finished goods | ||||||||
Inventories write-downs amounted to
$
NOTE 4 - COMMITMENTS AND CONTINGENT LIABILITIES:
a. | Noncancelable Purchase Obligations |
The Company depends upon third party
subcontractors for manufacturing of wafers, packaging and final tests. As of June 30, 2023, and December 31, 2022, the total value of
open purchase orders for such manufacturing contractors was approximately $
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 June 30, 2023, and December 31, 2022, the value of non-paid amounts related to such agreements totaled to $
b. | Legal proceedings |
As of June 30, 2023, and to date, 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 action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate.
NOTE 5 - OTHER CURRENT LIABILITIES:
June 30, 2023 | December 31, 2022 | |||||||
U.S. dollars in thousands | ||||||||
Accrued vacation | ||||||||
Taxes payable | ||||||||
Contract liabilities | ||||||||
Accrued expenses- related party | ||||||||
Other Accrued expenses | ||||||||
The amounts of revenues that were included
in the contract liabilities’ balance as of December 31, 2022 and December 31, 2021 and were recognized in the period of six months
ended June 30, 2023, and June 30, 2022, were $
10
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 6 - FORFEITURE SHARES:
a. | On September 29, 2021 (the “Closing Date”, please refer to note 1c of the financial statements as of December 31, 2022), |
The Company performed
a
June 30, 2023 | December 31, 2022 | |||||||
Stock price | ||||||||
Expected term (years) | ||||||||
Expected volatility | % | % | ||||||
Risk-free interest rate | % | % |
b. |
Six months ended June 30, 2023 | Year ended December 31, 2022 | |||||||
U.S. dollars in thousands | ||||||||
Balance at beginning of period | ||||||||
Changes in fair value | ( | ) | ( | ) | ||||
Balance at end of the period |
NOTE 7 - STOCK-BASED COMPENSATION:
Stock Options
As of June 30, 2023, and December 31,
2022, the number of ordinary shares included in the Company’s option plans totaled to
As of June 30, 2023, the unrecognized compensation costs
related to those unvested stock options are $
11
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 7 - STOCK-BASED COMPENSATION (continued):
Six months ended | ||||||||
June 30, 2023 | ||||||||
Number of Options | Weighted-Average Exercise price | |||||||
Options outstanding as of December 31, 2022 | $ | |||||||
Granted during the period | $ | |||||||
Exercised during the period | ( | ) | $ | |||||
Expired during the period | ( | ) | $ | |||||
Forfeited during the period | ( | ) | $ | |||||
Options outstanding as of June 30, 2023 | $ | |||||||
Options exercisable as of June 30, 2023 | $ |
Outstanding as of June 30, 2023 | Exercisable as of June 30, 2023 | |||||||||||||||||||||||||||||||||
Range of exercise prices | Number outstanding | Weighted average remaining contractual term | Weighted average exercise price | Aggregate intrinsic value | Number Exercisable | Weighted average remaining contractual term | Weighted Average exercise price | Aggregate intrinsic value | ||||||||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||||||||||||
$ | $ | - | - | - | - | - | ||||||||||||||||||||||||||||
$ | $ | - | $ | - | ||||||||||||||||||||||||||||||
$ | $ | - | $ | |||||||||||||||||||||||||||||||
$ | $ | $ | ||||||||||||||||||||||||||||||||
$ | $ | $ |
For the Six months ended on June 30, 2023 | For the six months ended on June 30, 2022 | |||||||
Expected term | ||||||||
Expected volatility | % | % | ||||||
Expected dividend rate | % | % | ||||||
Risk-free rate | % | % |
During the six months period ended
on June 30, 2023,
As of June 30, 2023, the unrecognized compensation costs
related to unvested stock options was $
The weighted-average fair value of the options that were
granted during the period ended June 30, 2023 was $
12
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 7 - STOCK-BASED COMPENSATION (continued):
The total intrinsic value of options exercised during the
period of six months ended June 30, 2023 was $
Six months ended June 30 | Three months ended June 30 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Cost of revenue | ||||||||||||||||
Research and development | ||||||||||||||||
Sales and marketing | ||||||||||||||||
General and administrative | ||||||||||||||||
Total stock-based compensation |
Restricted Stock Units
Number of RSUs | Weighted-Average Grant Date Fair Value | |||||||
RSUs outstanding at the beginning of the year | $ | |||||||
Granted during the period | $ | |||||||
Vested during the period | ( | ) | $ | |||||
Forfeited during the period | ( | ) | $ | |||||
Outstanding at the end of the period | $ | |||||||
RSUs exercisable as of June 30, 2023 | $ |
As of June 30, 2023, the unrecognized compensation cost
related to unvested RSUs totaled to approximately $
During the six months ended on June
30, 2023,
Six months ended June 30 | Three months ended June 30 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Cost of revenue | ||||||||||||||||
Research and development | ||||||||||||||||
Sales and marketing | ||||||||||||||||
General and administrative | ||||||||||||||||
Total stock-based compensation-RSUs |
13
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 8 - NET INCOME (LOSS) PER ORDINARY SHARE:
Six months ended | Three months ended | |||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
Basic net loss per ordinary share | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Denominator: | ||||||||||||||||
( | ) | ( | ) | ( | ) | ( | ) |
Six months ended | Three months ended | |||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||||||||||||
Options | ||||||||||||||||
Restricted Stock Units | ||||||||||||||||
Private Warrants | ||||||||||||||||
Public Warrants | ||||||||||||||||
Forfeiture Shares |
NOTE 9 - FINANCIAL INCOME (EXPENSES), NET:
Six months ended June 30 | Three months ended June 30 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Foreign currency exchange differences | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Interest income on short-term deposits | ||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Total financial income (expenses), net | ( | ) | ( | ) |
14
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 10 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER:
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 two identified reportable segments, to make decisions about resources to be allocated to the segments and assess their performance. Assets information is not provided to the CODM and is not being reviewed. Revenues and cost of goods sold are directly associated with the activities of a specific segment. Direct operating expenses, including general and administrative expenses, associated with the activities of a specific segment are charged to that 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. |
Six months ended on June 30, 2023 | ||||||||||||
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) | ( | ) | ( | ) | ||||||||
Change in fair value of Forfeiture Shares | ||||||||||||
Financial expenses, net | ||||||||||||
Loss before taxes on income | ( | ) | ||||||||||
Depreciation expenses | ||||||||||||
Stock-based compensation |
Six months ended on June 30, 2022 | ||||||||||||
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) | ( | ) | ( | ) | ||||||||
Change in fair value of Forfeiture Shares | ||||||||||||
Financial expenses, net | ( | ) | ||||||||||
Loss before taxes on income | ( | ) | ||||||||||
Depreciation expenses | ||||||||||||
Stock-based compensation |
15
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 10 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):
Three months ended on June 30, 2023 | ||||||||||||
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) | ( | ) | ( | ) | ||||||||
Change in fair value of Forfeiture Shares | ||||||||||||
Financial expenses, net | ||||||||||||
Loss before taxes on income | ( | ) | ||||||||||
Depreciation expenses | ||||||||||||
Stock-based compensation |
Three months ended on June 30, 2022 | ||||||||||||
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) | ( | ) | ( | ) | ||||||||
Change in fair value of Forfeiture Shares | ||||||||||||
Financial expenses, net | ( | ) | ||||||||||
Loss before taxes on income | ( | ) | ||||||||||
Depreciation expenses | ||||||||||||
Stock-based compensation |
16
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 10 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):
b. | Geographic Revenues |
Six months ended June 30 | Three months ended June 30 | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
U.S. dollars in thousands | ||||||||||||||||
Israel | ||||||||||||||||
China | ||||||||||||||||
United States | ||||||||||||||||
Hong Kong | ||||||||||||||||
Hungary | ||||||||||||||||
Japan | ||||||||||||||||
Germany | ||||||||||||||||
Taiwan | ||||||||||||||||
Other | ||||||||||||||||
c. | Supplemental data - Major Customers: |
June 30, 2023 | December 31, 2022 | |||||||
Accounts Receivable | % of accounts receivable | |||||||
Customer A | % | % | ||||||
Customer B | % | % | ||||||
Customer C | % | % |
Six months ended June 30, | Three months ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | % of revenues | % of revenues | ||||||||||||||
Customer A | % | % | % | % | ||||||||||||
Customer B | % | % | % | % | ||||||||||||
Customer D | % | % | % | % | ||||||||||||
Customer E | % | % | % | % |
17
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 10 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):
d. | Long-lived assets by Geography: |
June 30, 2023 | December 31, 2022 | |||||||
U.S. dollars in thousands | ||||||||
Domestic (Israel) | ||||||||
Taiwan | ||||||||
China | ||||||||
USA | ||||||||
Singapore | ||||||||
Other | ||||||||
NOTE 11 - RELATED PARTY TRANSACTIONS
During the six months ended June 30,
2023, the Company granted
18