Aeva Technologies Inc

Previous wording

Additionally, the macroeconomic conditions in the industry, the growing emergence of competition in advanced assisted driving sensing and software technologies globally can negatively impact pricing, margins and market share. If Aeva does not generate the margins we expect upon commercialization of our perception solutions, Aeva may be required to raise additional debt or equity capital, which may not be available or may only be available on terms that are onerous or highly dilutive to our stockholders.

Current wording

Additionally, the macroeconomic conditions in the industry, the growing emergence of competition in advanced assisted driving sensing and software technologies globally can negatively impact pricing, margins and market share. Our business is impacted by various macroeconomic factors, including inflation, interest rates, levels of consumer confidence and consumer debt, fuel and energy costs, and other economic conditions. In addition, we are susceptible to supply chain disruptions, which may be exacerbated by changes to tariffs and trade policies. Given the nature of these macroeconomic factors, we cannot predict whether or for how long certain trends will continue, nor can we predict to what degree these trends will impact us in the future. If we do not generate the margins we expect upon commercialization of our perception solutions, we may be required to raise additional debt or equity capital, which may not be available or may only be available on terms that are onerous to Aeva’s stockholders.

Previous wording

Commercialization of LiDAR-based Applications. We expect that our results of operations, including revenue and gross margins, will fluctuate on a quarterly basis for the foreseeable future as our customers continue on research and development projects and begin to commercialize advanced driver assist, autonomous and industrial automation solutions that rely on LiDAR technology. As more customers reach the commercialization phase and as the market for LiDAR solutions matures, these fluctuations in our operating results may become less pronounced.

Current wording

Commercialization of LiDAR-based Applications. We expect that our results of operations, including revenue and gross margins, will fluctuate on a quarterly basis for the foreseeable future as our customers continue on research and development projects and begin to commercialize advanced driver assist, autonomous and industrial automation solutions that rely on LiDAR technology. The development cycles of our products with new customers varies widely depending on the application, market, customer and the complexity of the product, and can vary from several months to seven or more years depending on the industry. These development cycles result in us investing our resources prior to realizing any revenue from the commercialization or obtaining any firm commitments of pricing, volume or timing of purchases of our products by our customers. As customers reach the commercialization phase and as the market for LiDAR solutions matures, these fluctuations in our operating results may become less pronounced.

Previous wording

Revenue increased by $1.4 million or 178% during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023. The increase was primarily due to an increase in the total number of units sold and an increase in non-recurring engineering revenue recognized during the current period, which is dependent upon the timing of the work performed for our customers. This increase was partially offset by a decrease in the per unit average selling price of the units sold.

Current wording

Revenue increased by $1.3 million or 60% during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was primarily due to an increase in the total number of units sold and an increase in non-recurring engineering revenue recognized during the current period, which is dependent upon the timing of the work performed for our customers.

Previous wording

Cost of revenue increased by $0.4 million or 18%, during the three months ended September 30, 2024, from the three months ended September 30, 2023. The increase was primarily due to an increase in the cost of revenue related to units sold and an increase in non-recurring engineering revenue recognized during the current period as compared to the prior period.

Current wording

Cost of revenue decreased by $0.4 million or 13%, during the three months ended March 31, 2025, from the three months ended March 31, 2024. The decrease was primarily due to a decrease in the production cost related to units sold during the current period as compared to the prior period.

Previous wording

Research and development expenses increased by $3.3 million, or 14%, to $27.1 million for the three months ended September 30, 2024, from $23.8 million for the three months ended September 30, 2023. Research and development expenses increased primarily due to an increase of $2.8 million in material expenses related to product development, a $0.4 million increase in software subscription expense, a $0.3 million increase in facility and other related expense and a $0.2 million increase in depreciation expense, partially offset by a $0.1 million decrease in payroll related expense, a $0.1 million decrease in legal expense, a $0.1 million decrease in lab supplies, and a $0.1 million decrease in travel expense.

Current wording

Research and development expenses decreased by $3.4 million, or 14%, to $21.6 million for the three months ended March 31, 2025, from $25.0 million for the three months ended March 31, 2024. Research and development expenses decreased primarily due to a $2.2 million decrease in payroll related expense, a $1.0 million decrease in stock based compensation expense, a $0.2 million decrease in research and development material expense, a $0.3 million decrease in consulting expense, and a $0.1 million decrease in travel expense, partially offset by a $0.4 million increase in software license expense.

Previous wording

Interest income decreased by $0.4 million, or 20%, during the three months ended September 30, 2024, as compared to the three months ended September 30, 2023. The decrease was due to a decrease in the overall balance of interest-bearing cash equivalents and marketable securities for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023.

Current wording

Interest income decreased by $1.5 million, or 59%, during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. The decrease was due to a decrease in the overall balance of interest-bearing cash equivalents and marketable securities for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.

Previous wording

Other income decreased by $1.3 million for the three months ended September 30, 2024 primarily due to an increase in the fair value of Series A warrants during three months ended September 30, 2024.

Current wording

Other income (expense), net changed by $5.0 million for the three months ended March 31, 2025 primarily due to an increase in the fair value of Series A warrants.

Previous wording

On November 8, 2023, we entered into Subscription Agreements providing for the purchase of common stock resulting in net proceeds of $20.6 million (“November PIPE”). Also on November 8, 2023, we entered into a Standby Equity Purchase Agreement (as amended from time to time, the “Facility Agreement”) with entities affiliated with Sylebra. Pursuant to the Facility Agreement, we have the right, but not the obligation, to sell to Sylebra up to $125.0 million of shares of preferred stock, at our request until November 8, 2026, subject to the terms of the Facility Agreement and the satisfaction of certain conditions as described in Note 10 to our condensed consolidated financial statements. Each sale we request under the Facility Agreement may be for a number of shares of preferred stock with an aggregate value of at least $25.0 million but not more than $50.0 million (except with Sylebra’s consent). We paid Sylebra a facility fee in the amount of $2.5 million, an origination fee in the amount of $0.6 million, and an administrative fee in the amount of $0.3 million and reimbursed $0.4 million to Sylebra for its fees and expenses. In addition, we issued to Sylebra Series A warrants to purchase 3,000,000 shares of common stock at an exercise price of $5.00.

Current wording

On November 8, 2023, we entered into subscription agreements providing for the purchase of common stock resulting in net proceeds of $20.6 million. Also on November 8, 2023, we entered into a Standby Equity Purchase Agreement (as amended from time to time, the “Facility Agreement”) with entities affiliated with Sylebra. Pursuant to the Facility Agreement, we have the right, but not the obligation, to sell to Sylebra up to $125.0 million of shares of preferred stock, at our request until November 8, 2026, subject to the terms of the Facility Agreement and the satisfaction of certain conditions as described in Note 10 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Each sale we request under the Facility Agreement may be for a number of shares of preferred stock with an aggregate value of at least $25.0 million but not more than $50.0 million (except with Sylebra’s consent). We paid Sylebra a facility fee of $2.5 million, an origination fee of $0.6 million, and an administrative fee of $0.3 million and reimbursed $0.4 million to Sylebra for its fees and expenses. In addition, we issued to Sylebra Series A warrants to purchase 3,000,000 shares of common stock at an exercise price of $5.00.

Previous wording

On July 2, 2024, Aeva and the parties to the Delaware Stockholder Litigation entered into a term sheet, which is being memorialized into a formal settlement agreement and which will be subject to court approval, to fully and finally resolve the Delaware Stockholder Litigation. In connection with the settlement, we have agreed to pay a total settlement cost of $14.0 million in exchange for a release of all claims related to the business combination and expect to recover $2.5 million from insurance carrier. The settlement is being paid pursuant to our indemnification obligations and from available director and officer insurance policies. As of September 30, 2024, we have accrued a contingent liability of $14.0 million connection with the settlement of the Delaware Stockholder Litigation, and a $2.5 million insurance recovery. See Note 15 to our condensed consolidated financial statements for more information about the Delaware Stockholder Litigation.

Current wording

On July 2, 2024, Aeva and the parties to the Delaware Stockholder Litigation entered into a term sheet, and on December 6, 2024 entered into a formal settlement agreement, which will be subject to court approval, to fully and finally resolve the Delaware Stockholder Litigation. In connection with the settlement, we have agreed to pay a total settlement cost of $14.0 million in exchange for a release of all claims related to the business combination and expect to recover $2.5 million from insurance carrier. The settlement is being paid pursuant to our indemnification obligations and from available director and officer insurance policies. As of December 31, 2024, we have accrued a contingent liability of $14.0 million connection with the settlement of the Delaware Stockholder Litigation, and a $2.5 million insurance recovery. See Note 15 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information about the Delaware Stockholder Litigation.

Previous wording

To date, we have incurred negative cash flows from operating activities and incurred losses from operations as reflected in our accumulated deficit of $575.7 million as of September 30, 2024. We expect to continue to incur operating losses due to continued investments that we intend to make in our business, including development of products. As of September 30, 2024, Aeva had cash and cash equivalents and marketable securities totaling $134.8 million. Aeva also has the ability to draw on the Facility Agreement up to $125.0 million through November 8, 2026 in exchange for the issuance of preferred shares, and we intend to draw down on the Facility Agreement if and as required by our capital needs. We believe that our liquidity, including financing available to us through the Facility Agreement, will be sufficient for Aeva to fund operating and capital expenditure for at least 12 months from the date of issuance of these unaudited condensed consolidated financial statements.

Current wording

To date, we have incurred negative cash flows from operating activities and incurred losses from operations as reflected in our accumulated deficit of $646.7 million as of March 31, 2025. We expect to continue to incur operating losses due to continued investments that we intend to make in our business, including development of products. As of March 31, 2025, we had cash and cash equivalents and marketable securities totaling $81.0 million. We also have the ability to draw on the Facility Agreement up to $125.0 million through November 8, 2026 in exchange for the issuance of preferred shares, and we intend to draw down on the Facility Agreement if and as required by our capital needs. As of March 31, 2025, all conditions to draw under the Facility Agreement were met. We believe that our liquidity, including financing available to us through the Facility Agreement, will be sufficient to fund our operating and capital expenditure for at least 12 months from the date of issuance of the condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

For the nine months ended September 30, 2024, net cash used in operating activities was $86.0 million, attributable to a net loss of $116.1 million and a net change in net operating assets and liabilities of $9.9 million, partially offset by non-cash charges of $20.2 million. Non-cash charges primarily consisted of $17.1 million in stock-based compensation, $4.0 million in depreciation and amortization expense, $2.6 million in amortization of right of use assets and $1.2 million in inventory reserves and others, partially offset by $1.8 million change in the fair value of warrant liability and by a $2.9 million in accretion of discount on available for sale securities. The change in net operating assets and liabilities was primarily due to a $15.6 million increase in other current liabilities arising from a $14.0 million accrual for litigation settlement cost, a $0.3 million decrease in other non-current assets, and a $2.0 million increase in accrued liabilities, partially offset by a $1.6 million decrease in accrued employee cost, a $2.6 million increase in other current assets, a $2.7 million decrease in lease liability, a $0.6 million increase in inventories and a $0.6 million decrease in accounts payable.

Current wording

For the three months ended March 31, 2025, net cash used in operating activities was $30.8 million, attributable to a net loss of $34.9 million and a net change in net operating assets and liabilities of $7.7 million, partially offset by non-cash charges of $11.8 million. Non-cash charges primarily consisted of $4.6 million in stock-based compensation, $1.4 million in depreciation and amortization expense, $0.9 million in amortization of right of use assets and $5.4 million change in the fair value of warrant liability, partially offset by a $0.5 million in accretion of discount on available for sale securities. The change in net operating assets and liabilities was primarily due to a $3.2 million decrease in other current liabilities, a $2.5 million decrease in accounts payable, a $1.6 million increase in inventories, a $1.1 million decrease in accrued employee costs, a $1.0 million decrease in lease liability, a $0.4 million decrease in accrued liabilities, and $0.2 million increase in other non-current assets, partially offset by a $1.6 million decrease in other current assets and a $0.4 million decrease in accounts receivable.

Previous wording

For the nine months ended September 30, 2024, net cash provided by investing activities was $78.3 million, attributable to maturity of available-for-sale investments of $144.1 million, partially offset by purchase of investments of $62.8 million and purchase of property, plant and equipment of $3.0 million.

Current wording

For the three months ended March 31, 2025, net cash provided by investing activities was $23.3 million, attributable to maturity of available-for-sale investments of $40.0 million, partially offset by purchase of investments of $16.0 million and purchase of property, plant and equipment of $0.5 million.

Previous wording

For the nine months ended September 30, 2024, net cash used in financing activities wasattributable to payment of taxes withheld on net settled vesting of restricted stock units.

Current wording

For the three months ended March 31, 2025, net cash used in financing activities wasattributable to payment of taxes withheld on net settled vesting of restricted stock units.

Previous wording

For the nine months ended September 30, 2024 there were no significant changes to our critical accounting policies and estimates. For a more detailed discussion of our critical accounting policies and estimates, please refer to our 2023 Form 10-K and Note 1 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

For the three months ended March 31, 2025 there were no significant changes to our critical accounting policies and estimates. For a more detailed discussion of our critical accounting policies and estimates, please refer to our 2024 Form 10-K and Note 1 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.