Odyssey Semiconductor Technologies Reports Second Quarter 2023 Financial Results
ITHACA, NY / ACCESSWIRE / August 7, 2023 / Odyssey Semiconductor Technologies, Inc. (OTCQB:ODII), a semiconductor device company developing innovative high-voltage power switching components based on proprietary Gallium Nitride ("GaN") processing technology, today reported its second quarter 2023 results.
CEO Commentary
"Two letters of intent with customers were signed this quarter for the early access sampling program with at least one additional signed letter of intent expected by September due to summer holidays in Europe," said Mark Davidson, Odyssey's Chief Executive Officer. "Lead customers have collaborated along the way and have remained committed to product evaluations. Feedback on products delivered in Q1 2023 validated the performance metrics expected from vertical GaN for power applications. While we develop improvements to the products, we are actively engaged in multiple product definition conversations with leading EV automotive customers, as well as industrial motor and renewable energy customers. There is no doubt that these products will be successful in the market."
Davidson continued, "We must show additional customer traction in Q3 as we need to raise money by the end of the quarter. We remain confident in the product development problems getting solved, the quantity and quality of intellectual property being created and the patience and interest that remains from customers."
We are continuing to take product sample requests. Customers can request information and samples of the 650 and 1200 volt vertical GaN power devices at info@odysseysemi.com.
Significant Recent Advancements and Milestones
- Vertical GaN product samples were delivered to customers in Q1 2023 as planned; results validated the leadership performance expected from vertical GaN power devices vs. competing technologies. Additional product samples will be delivered no later than Q4 2023.
- Two letters of intent were signed this quarter for the early access sampling program. A third letter of intent is in process and is expected to be signed by September.
- Foundry on-boarded two new customers in Q2. While only
$8 k has been invoiced, these initial product runs will be completed in Q3 with invoicing of approximately +$100 k. More importantly, each customer represents large opportunities with recurring revenue from multiple fabrication runs. Converting$2 million pipeline for foundry services to new business as the Company continues to pursue new opportunities.
Odyssey Uniquely Positioned in High Growth Megatrend Movement to High Voltage.
With industry-leading innovation, Odyssey's approach to vertical GaN will offer even greater commercial advantages over silicon than silicon carbide or lateral GaN. Vertical GaN offers a 10x advantage over silicon carbide (SiC) at performance enabling smaller and lighter power systems and cost levels unattainable by the competing technologies. The market the Company is pursuing is large and fast growing. The 650 volt segment is the larger market today, expected to grow at a
Conference Call and Webcast: Q2 2023 Results
The Company will hold a conference call and webcast scheduled to begin at 5:00 PM ET (2:00 PM PT) on Monday, August 7, 2023. The conference call and webcast will consist of prepared remarks by CEO Mark Davidson. Following the prepared remarks, CEO Mark Davidson and Chairman of the Board John Edmunds will answer questions. Analysts and investors may pose questions to Odyssey during the live webcast on August 7, 2023.
Interested persons may access the live conference call by dialing 888-506-0062 (U.S./Canada callers) or 973-528-0011 (international callers), using passcode 573444. It is recommended that participants call or login 10 minutes ahead of the scheduled start time to ensure proper connection. An audio replay will be available one hour after the live call until Midnight on August 21, 2023, by dialing 877-481-4010 using passcode 48911.
The live webcast and interactive Q&A will be accessible on the Company's Investor Relations website under the Events tab at https://www.odysseysemi.com/investors/ir-calendar. The webcast will be archived on the website for future viewing.
About Odyssey Semiconductor Technologies, Inc.
Odyssey Semiconductor Technologies, Inc. has developed a proprietary technology that is designed to allow for GaN to replace SiC as the emerging high-voltage power switching semiconductor material. Based in Ithaca, NY, the Company owns and operates a 10,000 sq. ft. semiconductor wafer manufacturing facility complete with a mix of class 1,000 and class 10,000 clean space as well as tools for advanced semiconductor development and production. Odyssey Semiconductor also offers a world-class semiconductor device development and foundry service.
For more information, visit the Company's website at www.odysseysemi.com and LinkedIn.
Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, forecasts, representations and contentions and are not historical facts and typically are identified by use of terms such as "may," "will," "should," "could," "expect," "plan," "forecast", "anticipate," "believe," "estimate," "predict," "potential," "continue" and similar words, although some forward-looking statements are expressed differently. These forward-looking statements are based on management's current expectations and assumptions and are subject to risks and uncertainties described more fully in the company's filings on Forms 10-K and 10-Q and other periodic filings with the Securities and Exchange Commission. Factors that could cause actual results to differ materially from those currently anticipated include, without limitation, risks relating to the results of our research and development activities, including uncertainties relating to semiconductor process manufacturing; the early stage of our GaN-based technology presently under development; our ability to protect our intellectual property rights that are valuable to our business, including patent and other intellectual property rights; our ability to successfully market and sell our technologies; the ability to achieve high volume manufacturing and the size and growth of the potential markets for any of our technologies, the rate and degree of market acceptance of any of our technologies and our ability to raise funding to support operations and the continued development and qualification of our technology.
In light of these risks, uncertainties and assumptions, the forward-looking statements regarding future events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements included herein speak only as of the date hereof, and we undertake no obligation to update publicly or privately any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.
Investor Relations Contact
Jeff Christensen
Darrow Associates Investor Relations
jchristensen@darrowir.com
(703) 297-6917
Consolidated Financial Results
All financials referenced in this release are unaudited and intended to conform with U.S. Generally Accepted Accounting Principles ("GAAP") and comparisons in this release are to the same period in the prior year unless otherwise noted.
| ODYSSEY SEMICONDUCTOR TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| June 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
Assets | ||||||||
Current Assets: | ||||||||
Cash | $ | 632,425 | $ | 2,428,289 | ||||
Contract assets | $ | - | - | |||||
Accounts receivable | $ | - | 50,750 | |||||
Deferred expenses | $ | 36,925 | - | |||||
Prepaid expenses and other current assets | $ | 116,589 | 68,204 | |||||
Total Current Assets | $ | 785,939 | 2,547,243 | |||||
Restricted cash | $ | 103,255 | 103,240 | |||||
Property and equipment, net | $ | 890,961 | 989,246 | |||||
Deferred Offering Costs | $ | 25,000 | ||||||
Operating ROU Asset | $ | 448,596 | 532,953 | |||||
Total Assets | $ | 2,253,751 | $ | 4,172,682 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 374,436 | $ | 382,905 | ||||
Loan payable - short term | $ | 75,248 | 72,424 | |||||
Lease Liability - Short Term | $ | 177,144 | 171,496 | |||||
Deferred revenue | $ | 77,500 | - | |||||
Total Current Liabilities | $ | 704,328 | 626,825 | |||||
Long-Term Lease Liability | $ | 271,452 | 361,457 | |||||
Bridge Note Related Party | $ | 4,824,000 | 4,442,000 | |||||
Accrued Interest Bridge note | $ | 230,110 | 51,983 | |||||
Loans payable - long term | $ | 224,857 | 264,729 | |||||
Total liabilities | $ | 6,254,747 | 5,746,994 | |||||
Commitments and contingencies | - | - | ||||||
Stockholders' Equity: | ||||||||
Preferred stock, 0 shares issued and outstanding as of Mar, 31 2022 and December 31, 2022 | - | - | ||||||
Common stock, | 1,272 | 1,272 | ||||||
Additional paid-in capital | 11,206,329 | 10,776,181 | ||||||
Accumulated deficit | (15,208,597 | ) | (12,351,765 | ) | ||||
Total Stockholders' Equity | (4,000,996 | ) | (1,574,312 | ) | ||||
Total Liabilities and Stockholders' Equity | $ | 2,253,751 | $ | 4,172,682 | ||||
| ODYSSEY SEMICONDUCTOR TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For The 3 Months Ended Jun 30, | For The Six Months Ended Jun 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenues | $ | 8,400 | $ | 20,581 | $ | 36,900 | $ | 50,519 | ||||||||
Cost of Revenues | 2,450 | 23,097 | 24,433 | 54,096 | ||||||||||||
Gross Profit | 5,950 | (2,516 | ) | 12,467 | (3,577 | ) | ||||||||||
| - | ||||||||||||||||
Operating Expenses: | ||||||||||||||||
Research and development | 507,618 | 647,705 | 1,082,794 | 1,016,889 | ||||||||||||
Write off of fixed asset deposit | - | - | - | - | ||||||||||||
Selling, general, and administrative | 598,579 | 677,847 | 1,230,214 | 1,435,774 | ||||||||||||
| - | - | |||||||||||||||
Total Operating Expenses | 1,106,197 | 1,325,552 | 2,313,008 | 2,452,663 | ||||||||||||
Loss From Operations | (1,100,247 | ) | (1,328,068 | ) | (2,300,541 | ) | (2,456,240 | ) | ||||||||
Other Income: | ||||||||||||||||
Forgiveness of PPP loan and other income | 11,258 | 11 | 11,258 | 2,024 | ||||||||||||
Interest expense | (93,316 | ) | (3,668 | ) | (185,549 | ) | (7,484 | ) | ||||||||
Change in Fair Value of Contingent Liability | (189,000 | ) | - | (382,000 | ) | - | ||||||||||
Net Loss | $ | (1,371,305 | ) | $ | (1,331,725 | ) | $ | (2,856,832 | ) | (2,461,700 | ) | |||||
Net (Loss) Income Per Share: | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | (0.10 | ) | $ | (0.22 | ) | $ | (0.19 | ) | ||||
Diluted | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.15 | ) | $ | (0.19 | ) | ||||
Weighted Average Number of Common Shares Outstanding: | ||||||||||||||||
Basic | 12,726,911 | 12,726,911 | 12,726,911 | 12,726,911 | ||||||||||||
Diluted | 18,955,745 | 12,726,911 | 18,955,745 | 12,726,911 | ||||||||||||
| ODYSSEY SEMICONDUCTOR TECHNOLOGIES, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| For the Six Months Ended | ||||||||
| June 30, | ||||||||
| 2023 | 2022 | |||||||
Cash Flows From Operating Activities: | ||||||||
Net loss | $ | (2,856,832 | ) | $ | (2,461,700 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
used in operating activities: | ||||||||
Stock-based compensation | 430,148 | 509,799 | ||||||
FMV adjustment to Derivatives | $ | 382,000 | ||||||
Accrued Interest | $ | 178,127 | ||||||
Depreciation and amortization | 98,285 | 91,392 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 50,750 | 6,000 | ||||||
Prepaid expenses and other current assets | (48,385 | ) | (13,448 | ) | ||||
Deferred expenses | (36,925 | ) | (54,089 | ) | ||||
Accounts payable and accrued expenses | (8,469 | ) | 205,423 | |||||
Deferred revenue | 77,500 | 65,000 | ||||||
Total Adjustments | 1,123,031 | 810,077 | ||||||
Net Cash Used In Operating Activities | (1,733,801 | ) | (1,651,623 | ) | ||||
Cash Flows Used In Investing Activities: | ||||||||
Purchases of property and equipment | - | (288,883 | ) | |||||
Lease of property | - | (16,665 | ) | |||||
Net Cash Used In Investing Activities | - | (305,548 | ) | |||||
Cash Flows From Financing Activities: | ||||||||
Repayment of government loans | (37,048 | ) | (36,764 | ) | ||||
Proceeds from exercise of stock options | - | |||||||
Payment of deferred offering costs | (25,000 | ) | ||||||
Payment of deferred loan costs | ||||||||
Net Cash Provided By (Used In) Financing Activities | (62,048 | ) | (36,764 | ) | ||||
Net Increase (Decrease) In Cash and Restricted Cash | (1,795,849 | ) | (1,993,935 | ) | ||||
Cash and Restricted Cash - Beginning Of Period | 2,531,529 | 2,701,414 | ||||||
Cash and Restricted Cash - End Of Period | $ | 735,680 | $ | 707,479 | ||||
Cash and Restricted Cash Consisted of the Following: | ||||||||
Cash | $ | 632,425 | $ | 604,255 | ||||
Restricted cash | 103,255 | 103,224 | ||||||
| $ | 735,680 | $ | 707,479 | |||||
Supplemental Disclosures of Cash Flow Information: | ||||||||
Cash paid during the year for: | ||||||||
Interest | $ | - | $ | 7,027 | ||||
Income taxes | $ | - | $ | - | ||||
Non-cash investing and financing activities: | ||||||||
Operating Lease ROU Asset | $ | 680,683 | $ | 680,683 | ||||
SOURCE: Odyssey Semiconductor Technologies, Inc.
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