Transphorm Announces Fiscal 2024 Third Quarter Results and Provides Business Update
- Total revenue of $4.7 million for Q3 Fiscal 2024, up 4.0% YoY.
- Entered into a definitive agreement to be acquired by Renesas Electronics Corporation for about $339 million.
- Product revenue decreased, but government revenue increased significantly.
- Raised $3.0 million through warrants and $2.1 million of short-term debt.
- Continued leadership in GaN technology with new high power and low power devices.
- Product revenue decreased by 20% YoY and 11% QoQ.
- Gross margin was 1.6% impacted by a $250K Consumption tax adjustment and $170K in non-recurring scrap.
- Net loss for Q3 Fiscal 2024 was ($10.0) million, or ($0.20) per share.
Insights
The acquisition of Transphorm by a subsidiary of Renesas Electronics Corporation represents a significant consolidation within the semiconductor sector, particularly in the Gallium Nitride (GaN) space. The valuation of Transphorm at approximately $339 million underscores the strategic importance of GaN technology in powering next-generation systems. This acquisition could potentially enable Renesas to enhance its product offerings and market position in the high-power electronics segment.
Transphorm's reported revenue growth of 4.0% year-over-year, despite a sequential decrease, suggests resilience in its business model. However, the decline in product revenue by 20% from the previous year indicates potential challenges in market demand or competitive dynamics. The substantial increase in government revenue highlights the strategic alignment with public sector initiatives, possibly in areas of energy efficiency or defense.
The gross margin recovery from the previous year's negative figure is noteworthy, although it remains low at 1.6%. This could be indicative of pricing pressures or cost management issues that Transphorm needs to address to improve profitability. The raised capital through warrant exercises and short-term debt suggests liquidity maneuvers to support ongoing operations and investments.
Transphorm's financial performance, characterized by a net loss and negative adjusted EBITDA, raises concerns about its current profitability and cash flow sustainability. The reported net loss of ($10.0) million, compared to the previous year's ($10.5) million, shows a marginal improvement but still reflects a challenging financial position. The increase in operating expenses, driven largely by legal expenses associated with the acquisition, suggests one-off costs that may not recur post-acquisition.
Investors might view the acquisition as a positive move, given the potential for synergies and integration benefits with Renesas. However, the financial health of Transphorm, as indicated by its low cash reserves of $8.0 million, will be a critical factor in the post-acquisition phase. The lack of a conference call to discuss the results could be seen as a lack of transparency, but it may also be due to the pending acquisition.
The definitive agreement with Renesas Electronics Corporation is a pivotal event that will require regulatory approval and may involve antitrust considerations, given the size and impact of the companies in the semiconductor industry. The increased legal expenses reported in the financial results reflect the complexity and significance of such transactions.
It is important to note that the terms of the acquisition and the future integration plans will be subject to legal scrutiny. Shareholders and regulatory bodies will be interested in the details of the deal, including any potential impact on competition and market dynamics. The absence of a conference call post-announcement suggests a strategic decision, possibly to avoid premature disclosure of sensitive information during a sensitive negotiation phase.
-
On January 10, 2024, Transphorm announced that it entered into a definitive agreement to be acquired by a subsidiary of Renesas Electronics Corporation. The transaction values Transphorm at approximately
$339 million
Key Business Highlights
-
Reported total revenue of
$4.7 million 4.0% over the same quarter last year and a decrease of6.8% from the prior quarter. -
Product revenue was
$3.2 million 20% from the same quarter last year and a decrease of11% from the prior quarter, owing to short term demand pushouts. Government revenue was$1.5 million 180% from the same quarter last year and flat with the prior quarter. Gross margin in the quarter was1.6% , compared to (59.4)% in the same quarter last year and23.4% in the prior quarter - Margins in the current quarter were impacted by a$250 K$170 K -
Raised
$3.0 million $2.1 million
High Power Segment Update – Continued Leadership of Transphorm in GaN
-
Increased total design-ins for higher power (300 watt – 7.5 kilowatt) to over 120 (with over 35 in production), an increase of
20% from the Company’s previous update in November 2023. -
Announced two new SuperGaN devices in a 4-lead TO-247 package, a drop-in replacement for SiC FETs and offering a 35 mOhm and 50 mOhm on-resistance and a benefit of more efficient, switching capabilities with
25% lower energy losses in recent internal tests, increasing socket penetration opportunities with new and existing solutions. - Announced a collaboration with Allegro MicroSystem’s AHV85110 Isolated Gate Driver and Transphorm’s SuperGaN FETs to increase GaN power system performance for high power applications, using our just released 650V / 70 mOhm TOLL device.
- Launched three Transphorm FETs in surface mount devices (SMD) TOLL packages supporting higher power applications for power hungry AI applications, server power, energy and industrial markets, positioning GaN as optimal devices for these kilo-watt class power hungry applications and proving its high voltage-high power dynamic reliability.
- Launched the SuperGaN TOLT FET, the industry’s first top-sided cooled surface mount GaN device in the JEDEC-standard (MO-332) TOLT Package delivering superior thermal and electrical performance for computing, AI, energy, and automotive power systems.
- Released two battery charger reference designs for electric vehicle (“EV”) charging applications, ideal for two- and three-wheeled EVs.
- On track for 1200V engineering samples by middle of calendar year 2024.
Low Power Segment Update – Transphorm Enables Superior Performance
-
Increased total design-ins for power adapters and fast chargers (< 300 watt) to over 125 (with over 30 in production), an increase in ongoing design-ins of
8% from the Company’s previous update in November 2023. -
Announced with Weltrend Semiconductor Inc., a 100-watt USB-C PD power adapter reference design, using Transphorm’s SuperGaN System-in-Package, WT7162RHUG24A, to achieve
92.7% efficiency in a Quasi-resonant flyback topology.
Primit Parikh, Transphorm’s CEO and Co-Founder, commented, “While our third quarter product revenue decreased marginally on a sequential basis, we continued to experience strong momentum in building our revenue pipeline and securing design-ins. During the third quarter, we successfully launched several new high power products and two key reference designs targeted for EV two- and three-wheeler market.”
Q3 Fiscal 2024 Financial Results
Revenue was
Operating expenses were
Net loss for Q3 Fiscal 2024 was
Cash, cash equivalents and restricted cash as of December 31, 2023, were
Conference Call
Given the announcement made on January 10, 2024 regarding Transphorm’s entry into a definitive agreement to be acquired by a subsidiary of Renesas Electronics Corporation, Transphorm will not host a conference call to discuss its financial results for Q3 Fiscal 2024. For further detail and discussion of the Company's financial performance, please refer to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2023, which will be filed today with the Securities and Exchange Commission.
About Transphorm
Transphorm, Inc., a global leader in the GaN revolution, designs and manufactures high performance and high reliability GaN semiconductors for high voltage power conversion applications. Having one of the largest Power GaN IP portfolios of more than 1,000 owned or licensed patents, Transphorm produces the industry’s leading JEDEC and AEC-Q101 qualified high voltage GaN semiconductor devices. The Company’s vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support. Transphorm’s innovations move power electronics beyond the limitations of silicon to achieve over
Additional Information and Where to Find It
Transphorm, Inc., its directors and certain executive officers are participants in the solicitation of proxies from stockholders in connection with the pending acquisition of Transphorm (the “Transaction”). Transphorm plans to file a proxy statement (the “Transaction Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies to approve the Transaction.
Primit Parikh, Julian Humphreys, Katharina McFarland, Umesh Mishra, Cynthia (Cindi) Moreland, Kelly Smales, and Eiji Yatagawa, all of whom are members of Transphorm’s Board of Directors, and Cameron McAulay, Transphorm’s Chief Financial Officer, are participants in Transphorm’s solicitation. The beneficial ownership of each such person, as of the date specified, appears in the table below. Additional information regarding such participants, including their direct or indirect interests in the Transaction, by security holdings or otherwise, will be included in the Transaction Proxy Statement and other relevant documents to be filed with the SEC in connection with the Transaction. The Transaction Proxy Statement will also include information on any payments that may be owed to Transphorm’s named executive officers in a change of control of Transphorm.
Promptly after filing the definitive Transaction Proxy Statement with the SEC, Transphorm will mail the definitive Transaction Proxy Statement and a WHITE proxy card to each stockholder entitled to vote at the special meeting to consider the Transaction. STOCKHOLDERS ARE URGED TO READ THE TRANSACTION PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT TRANSPHORM WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, the preliminary and definitive versions of the Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by Transphorm with the SEC in connection with the Transaction at the SEC’s website (http://www.sec.gov). Copies of Transphorm’s definitive Transaction Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by Transphorm with the SEC in connection with the Transaction will also be available, free of charge, at the “Investors” section of Transphorm’s website (https://ir.transphormusa.com/), or by writing to Transphorm, Inc., Attention: Corporate Secretary, 75 Castilian Drive,
Beneficial Ownership as of February 6, 2024 |
||
Individual |
|
Shares Beneficially Owned (#) |
Primit Parikh |
|
566,849 |
Julian Humphreys |
|
104,921 |
Katharina McFarland |
|
97,424 |
Umesh Mishra |
|
611,210 |
Cynthia (Cindi) Moreland |
|
73,232 |
Kelly Smales |
|
81,597 |
Eiji Yatagawa |
|
Nil |
Cameron McAulay |
|
224,670 |
The amounts specified above are determined in accordance with the rules of the SEC and include securities that may be acquired within 60 days of February 6, 2024. Mr. Yatagawa is a member of the Board of Directors and serves as an executive of one or more affiliates of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”). KKR beneficially owns 24,724,468 shares of Transphorm’s common stock (which includes warrants exercisable for 312,500 shares of Transphorm’s common stock); Mr. Yatagawa is not deemed to beneficially own such shares.
Non-GAAP Financial Measures
This press release includes and makes reference to certain non-GAAP financial measures. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
Transphorm believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations. Transphorm believes that these non-GAAP financial measures provide additional insight into Transphorm’s ongoing performance and core operational activities and has chosen to provide these measures for more consistent and meaningful comparison between periods. These measures should only be used to evaluate Transphorm’s results of operations in conjunction with the corresponding GAAP measures. The non-GAAP results exclude the effect of stock-based compensation, depreciation, amortization, provision for doubtful accounts and other [non-recurring] income and expenses.
A reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this press release.
Forward-Looking Statements
This press release contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning the Transaction; the Company’s 5-year pipeline and anticipated future growth; and the Company’s expectations for future products, design-ins and market acceptance. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “plan,” “believe,” “intend,” “look forward,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: (i) the Transaction may not be completed on anticipated terms or timing, including obtaining stockholder and regulatory approvals and satisfying other conditions to the completion of the Transaction; (ii) the Transaction may involve unexpected costs, liabilities or delays; (iii) potential litigation and the outcome of any legal proceedings related to the Transaction; (iv) Transphorm’s ability to implement its business strategy; (v) significant transaction costs associated with the proposed Transaction; (vi) the risk that disruptions from the Transaction will harm Transphorm’s business, including current plans and operations; (vii) Transphorm’s ability to retain and hire key personnel; (viii) potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction; (ix) legislative, regulatory and economic developments affecting the Company’s business; (x) general economic and market developments and conditions; (xi) potential business uncertainty, including changes to existing business relationships, during the pendency of the merger that could affect Transphorm’s financial performance; (xii) restrictions during the pendency of the Transaction that may impact Transphorm’s ability to pursue certain business opportunities or strategic transactions; (xiii) that the Company’s current forecasted cash runway, without any additional financing, may not last as long as anticipated (xiv) risks related to the Company’s operations, such as additional financing requirements, access to capital and market acceptance of its current and future products; (xv) competition; (xvi) the Company’s ability to protect its intellectual property rights; and (xvii) other risks set forth in the Company’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” and elsewhere therein. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Transphorm, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
December 31, 2023 |
|
March 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
7,951 |
|
|
$ |
15,527 |
|
Restricted cash |
|
— |
|
|
|
500 |
|
Accounts receivable |
|
1,721 |
|
|
|
4,396 |
|
Inventory |
|
10,005 |
|
|
|
8,406 |
|
Prepaid expenses and other current assets |
|
1,275 |
|
|
|
1,859 |
|
Total current assets |
|
20,952 |
|
|
|
30,688 |
|
Property and equipment, net |
|
7,679 |
|
|
|
7,890 |
|
Operating lease right-of-use assets |
|
2,311 |
|
|
|
3,033 |
|
Goodwill |
|
1,020 |
|
|
|
1,079 |
|
Intangible assets, net |
|
99 |
|
|
|
321 |
|
Investment in joint venture |
|
— |
|
|
|
715 |
|
Other assets |
|
601 |
|
|
|
726 |
|
Total assets |
$ |
32,662 |
|
|
$ |
44,452 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
9,306 |
|
|
$ |
7,895 |
|
Deferred revenue |
|
10 |
|
|
|
— |
|
Accrued interest |
|
— |
|
|
|
180 |
|
Unfunded commitment in joint venture |
|
1,296 |
|
|
|
— |
|
Accrued payroll and benefits |
|
1,430 |
|
|
|
1,458 |
|
Operating lease liabilities |
|
368 |
|
|
|
404 |
|
Revolving credit facility |
|
— |
|
|
|
12,000 |
|
Total current liabilities |
|
12,410 |
|
|
|
21,937 |
|
Operating lease liabilities, net of current portion |
|
2,002 |
|
|
|
2,670 |
|
Other liabilities |
|
— |
|
|
|
230 |
|
Total liabilities |
|
14,412 |
|
|
|
24,837 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
6 |
|
|
|
6 |
|
Additional paid-in capital |
|
262,319 |
|
|
|
230,272 |
|
Accumulated deficit |
|
(242,146 |
) |
|
|
(209,236 |
) |
Accumulated other comprehensive loss |
|
(1,929 |
) |
|
|
(1,427 |
) |
Total Stockholders’ equity |
|
18,250 |
|
|
|
19,615 |
|
Total liabilities and stockholders’ equity |
$ |
32,662 |
|
|
$ |
44,452 |
|
Transphorm, Inc. |
|||||||||||||||||||
Condensed Consolidated Statements of Operations (unaudited) |
|||||||||||||||||||
(in thousands except share and per share data) |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||||||||
Revenue, net |
$ |
4,670 |
|
|
$ |
5,010 |
|
|
$ |
4,493 |
|
|
$ |
15,563 |
|
|
$ |
13,319 |
|
Cost of goods sold |
|
4,595 |
|
|
|
3,836 |
|
|
|
7,162 |
|
|
|
12,226 |
|
|
|
14,444 |
|
Gross profit (loss) |
|
75 |
|
|
|
1,174 |
|
|
|
(2,669 |
) |
|
|
3,337 |
|
|
|
(1,125 |
) |
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
2,839 |
|
|
|
3,022 |
|
|
|
2,325 |
|
|
|
8,730 |
|
|
|
5,895 |
|
Sales and marketing |
|
1,745 |
|
|
|
1,708 |
|
|
|
1,447 |
|
|
|
4,935 |
|
|
|
3,596 |
|
General and administrative |
|
4,412 |
|
|
|
2,942 |
|
|
|
3,457 |
|
|
|
11,870 |
|
|
|
9,818 |
|
Total operating expenses |
|
8,996 |
|
|
|
7,672 |
|
|
|
7,229 |
|
|
|
25,535 |
|
|
|
19,309 |
|
Loss from operations |
|
(8,921 |
) |
|
|
(6,498 |
) |
|
|
(9,898 |
) |
|
|
(22,198 |
) |
|
|
(20,434 |
) |
Interest expense |
|
— |
|
|
|
— |
|
|
|
184 |
|
|
|
8 |
|
|
|
550 |
|
Loss in joint venture |
|
978 |
|
|
|
721 |
|
|
|
799 |
|
|
|
2,559 |
|
|
|
2,065 |
|
Other expense (income), net |
|
102 |
|
|
|
(90 |
) |
|
|
(421 |
) |
|
|
(188 |
) |
|
|
(1,241 |
) |
Loss before tax expense |
|
(10,001 |
) |
|
|
(7,129 |
) |
|
|
(10,460 |
) |
|
|
(24,577 |
) |
|
|
(21,808 |
) |
Tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
$ |
(10,001 |
) |
|
$ |
(7,129 |
) |
|
$ |
(10,460 |
) |
|
$ |
(24,577 |
) |
|
$ |
(21,808 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deemed dividend related to warrant modification and issuance of Inducement Warrants |
|
2,721 |
|
|
|
— |
|
|
|
— |
|
|
|
8,333 |
|
|
|
— |
|
Net loss attributable to common stockholders |
$ |
(12,722 |
) |
|
$ |
(7,129 |
) |
|
$ |
(10,460 |
) |
|
$ |
(32,910 |
) |
|
$ |
(21,808 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loss per share - basic and diluted |
$ |
(0.20 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.38 |
) |
Weighted average common shares outstanding - basic and diluted |
|
62,183,843 |
|
|
|
61,138,691 |
|
|
|
56,739,450 |
|
|
|
61,458,945 |
|
|
|
55,926,828 |
|
Transphorm, Inc. |
|||||||||||||||||||
Reconciliation of GAAP and Non-GAAP Financial Information (unaudited) |
|||||||||||||||||||
(in thousands except per share data) |
|||||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
||||||||||
GAAP net loss |
$ |
(10,001 |
) |
|
$ |
(7,129 |
) |
|
$ |
(10,460 |
) |
|
$ |
(24,577 |
) |
|
$ |
(21,808 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation |
|
1,509 |
|
|
|
914 |
|
|
|
1,123 |
|
|
|
4,425 |
|
|
|
2,342 |
|
Depreciation |
|
225 |
|
|
|
269 |
|
|
|
180 |
|
|
|
691 |
|
|
|
497 |
|
Amortization |
|
74 |
|
|
|
74 |
|
|
|
74 |
|
|
|
222 |
|
|
|
222 |
|
Provision for doubtful accounts |
|
— |
|
|
|
263 |
|
|
|
— |
|
|
|
263 |
|
|
|
— |
|
Impairment of long-lived assets |
|
208 |
|
|
|
— |
|
|
|
— |
|
|
|
208 |
|
|
|
— |
|
Total other expense, net |
|
1,080 |
|
|
|
631 |
|
|
|
562 |
|
|
|
2,379 |
|
|
|
1,374 |
|
Total adjustments to GAAP net loss |
|
3,096 |
|
|
|
2,151 |
|
|
|
1,939 |
|
|
|
8,188 |
|
|
|
4,435 |
|
Non-GAAP adjusted EBITDA |
$ |
(6,905 |
) |
|
$ |
(4,978 |
) |
|
$ |
(8,521 |
) |
|
$ |
(16,389 |
) |
|
$ |
(17,373 |
) |
GAAP net loss per share - basic and diluted |
$ |
(0.20 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.38 |
) |
Adjustment |
|
0.09 |
|
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.27 |
|
|
|
0.07 |
|
Non-GAAP adjusted EBITDA per share - basic and diluted |
$ |
(0.11 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.31 |
) |
Weighted average common shares outstanding - basic and diluted |
|
62,183,843 |
|
|
|
61,138,691 |
|
|
|
56,739,450 |
|
|
|
61,458,945 |
|
|
|
55,926,828 |
|
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
December 31, 2023 |
|
December 31, 2022 |
|||||
GAAP operating expenses |
$ |
8,996 |
|
$ |
7,672 |
|
$ |
7,229 |
|
$ |
25,535 |
|
$ |
19,309 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|||||
Stock-based compensation |
|
1,312 |
|
|
819 |
|
|
1,035 |
|
|
3,997 |
|
|
2,161 |
Depreciation |
|
53 |
|
|
98 |
|
|
102 |
|
|
250 |
|
|
293 |
Amortization |
|
74 |
|
|
74 |
|
|
74 |
|
|
222 |
|
|
222 |
Provision for doubtful accounts |
|
— |
|
|
263 |
|
|
— |
|
|
263 |
|
|
— |
Impairment of long-lived assets |
|
208 |
|
|
— |
|
|
— |
|
|
208 |
|
|
— |
Total adjustments to GAAP operating expenses |
|
1,647 |
|
|
1,254 |
|
|
1,211 |
|
|
4,940 |
|
|
2,676 |
Non-GAAP operating expenses |
$ |
7,349 |
|
$ |
6,418 |
|
$ |
6,018 |
|
$ |
20,595 |
|
$ |
16,633 |
Transphorm, Inc. |
|||||||
Condensed Consolidated Statements of Cash Flows (unaudited) |
|||||||
(in thousands) |
|||||||
|
Nine Months Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(24,577 |
) |
|
$ |
(21,808 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Provision for inventory |
|
332 |
|
|
|
2,810 |
|
Depreciation and amortization |
|
913 |
|
|
|
719 |
|
Reduction in the carrying amount of right-of-use assets |
|
396 |
|
|
|
425 |
|
Provision for doubtful accounts |
|
263 |
|
|
|
— |
|
Impairment of long-lived assets |
|
208 |
|
|
|
— |
|
Stock-based compensation |
|
4,425 |
|
|
|
2,342 |
|
Interest cost |
|
— |
|
|
|
4 |
|
Gain on sale of equipment |
|
(48 |
) |
|
|
(110 |
) |
Loss in joint venture |
|
2,559 |
|
|
|
2,065 |
|
Changes in fair value of derivative instruments |
|
169 |
|
|
|
75 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
2,404 |
|
|
|
(1,221 |
) |
Inventory |
|
(2,047 |
) |
|
|
(3,956 |
) |
Prepaid expenses and other current assets |
|
613 |
|
|
|
401 |
|
Other assets |
|
146 |
|
|
|
(504 |
) |
Accounts payable, accrued expenses, and other liabilities |
|
300 |
|
|
|
428 |
|
Deferred revenue |
|
10 |
|
|
|
(346 |
) |
Accrued payroll and benefits |
|
(20 |
) |
|
|
486 |
|
Operating lease liabilities |
|
(406 |
) |
|
|
(392 |
) |
Net cash used in operating activities |
|
(14,360 |
) |
|
|
(18,582 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(623 |
) |
|
|
(5,633 |
) |
Proceeds from sale of equipment |
|
48 |
|
|
|
110 |
|
Investment in joint venture |
|
(807 |
) |
|
|
(2,569 |
) |
Net cash used in investing activities |
|
(1,382 |
) |
|
|
(8,092 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from stock option exercise |
|
— |
|
|
|
709 |
|
Proceeds from issuance of common stock |
|
9,936 |
|
|
|
16,000 |
|
Cost associated with issuance of common stock |
|
(123 |
) |
|
|
(280 |
) |
Payment for taxes related to net share settlement of restricted stock units |
|
(374 |
) |
|
|
(6 |
) |
Proceeds from exercise of stock warrants |
|
10,257 |
|
|
|
— |
|
Loan repayment |
|
(12,000 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
7,696 |
|
|
|
16,423 |
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
(30 |
) |
|
|
(35 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
(8,076 |
) |
|
|
(10,286 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
16,027 |
|
|
|
33,935 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
7,951 |
|
|
$ |
23,649 |
|
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|
|
|
||||
Cash and cash equivalents |
$ |
7,951 |
|
|
$ |
23,149 |
|
Restricted cash |
|
— |
|
|
|
500 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
7,951 |
|
|
$ |
23,649 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220184959/en/
Investor Contacts:
David
KCSA Strategic Communications
transphorm@kcsa.com
Company Contact:
Cameron McAulay
Chief Financial Officer
1-805-456-1300 ext. 140
cmcaulay@transphormusa.com
Source: Transphorm, Inc.
FAQ
What is the total revenue reported for Q3 Fiscal 2024?
Who is acquiring Transphorm?
How much did Transphorm raise through warrants and short-term debt?
What caused the decrease in product revenue for the quarter?
What was the gross margin for the quarter and what impacted it?
