Aeva Technologies, Inc.

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. 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 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.

Current wording

Commercialization of LiDAR-based Applications. We expect that our results of operations, including revenues 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 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 consists of sales of perception solutions or sensing systems and non-recurring engineering services.

Current wording

Revenues consists of sales of perception solutions or sensing systems and non-recurring engineering services.

Previous wording

Cost of revenue principally includes direct material, direct labor and allocation of overhead associated with manufacturing operations, including inbound freight charges and depreciation expense. Cost of revenue also includes the direct cost and appropriate allocation of overhead involved in execution of non-recurring engineering services. Aeva’s gross profit equals total revenue less total cost of revenue.

Current wording

Cost of revenues principally includes direct material, direct labor and allocation of overhead associated with manufacturing operations, including inbound freight charges and depreciation expense. Cost of revenues also includes the direct cost and appropriate allocation of overhead involved in execution of non-recurring engineering services. Aeva’s gross profit equals total revenues less total cost of revenues.

Previous wording

Fair value of warrant liability consist of changes in the fair value of Series A warrants and fair value oft private placement warrants which expired in March 2026. The change in fair value of the warrants is due to the change in the stock price of the Company.

Current wording

Fair value of warrant liability consists of changes in the fair value of Series A warrants and fair value of private placement warrants which expired in March 2026. The change in fair value of the warrants is due to the change in the stock price of the Company between the end of each period.

Previous wording

Other income and expense primarily consist of and foreign currency transaction gains and losses, as well as realized gains and losses on marketable securities.

Current wording

Other income and expense primarily consist of foreign currency transaction gains and losses, as well as realized gains and losses on marketable securities.

Previous wording

Product revenue decreased by $1.7 million, or 39%, to $2.5 million during the three months ended June 30, 2026, from $4.2 million for the three months ended June 30, 2025. This decrease was primarily due to a lower average selling price of units sold in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, partially offset by higher number of units sold in the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.

Current wording

Product revenue increased by $1.8 million, or 107%, to $3.5 million during the three months ended September 30, 2026, from $1.7 million for the three months ended September 30, 2025. This increase was primarily due to a higher number of units sold in the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, partially offset by a lower average selling price of units sold in the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.

Previous wording

Professional services revenue increased by $2.3 million, or 174%, to $3.6 million during the three months ended June 30, 2026, from $1.3 million for the three months ended June 30, 2025. The increase was primarily due to a higher development activity for non-recurring engineering services during the three months ended June 30, 2026.

Current wording

Professional services revenue increased by $1.3 million, or 68%, to $3.2 million during the three months ended September 30, 2026, from $1.9 million for the three months ended September 30, 2025. The increase was primarily due to a higher development activity for non-recurring engineering services during the three months ended September 30, 2026.

Previous wording

Cost of product revenue decreased by $0.9 million, or 14%, during the six months ended June 30, 2026, from the six months ended June 30, 2025. The decrease was primarily due to a lower material cost and manufacturing overheads related to the units sold.

Current wording

Cost of product revenue increased by $0.7 million, or 27%, during the three months ended September 30, 2026, from the three months ended September 30, 2025. The increase was primarily due to the material cost and manufacturing overheads related to the higher number of units sold.

Previous wording

Cost of professional service revenues decreased by $2.9 million, or 69%, during the three months ended June 30, 2026, from the three months ended June 30, 2025. The decrease was primarily due to a $3.8 million loss recognized on a joint development agreement during three months ended June 30, 2025, partially offset by an increase in the non recurring engineering revenue during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025.

Current wording

Cost of professional service revenue increased by $0.6 million, or 112%, during the three months ended September 30, 2026, from the three months ended September 30, 2025. The increase was primarily due to an increase in the activities related to non-recurring engineering services for the three months ended September 30, 2026.

Previous wording

Research and development expenses increased by $3.3 million, or 7%, to $47.7 million for the six months ended June 30, 2026, from $44.4 million for the six months ended June 30, 2025. The increase was primarily due to a $2.6 million increase in stock based compensation expense, a $2.5 million increase in research and development service expense, a $0.9 million increase in software license subscription expense, a $0.4 million increase in consulting expense, partially offset by a $3.1 million decrease in payroll related expense.

Current wording

Research and development expenses increased by $6.7 million, or 30%, to $28.9 million for the three months ended September 30, 2026, from $22.1 million for the three months ended September 30, 2025. The increase was primarily due to a $3.4 million increase in payroll related costs, a $2.1 million increase in research and development material and service expense, a $0.8 million increase in software license subscription expense, a $0.2 million increase in depreciation and a $0.2 million increase in consulting expenses.

Previous wording

General and administrative expenses increased by $2.2 million, or 28%, to $10.2 million for the three months ended June 30, 2026, from $8.0 million for the three months ended June 30, 2025. The increase was primarily due to a $0.8 million increase in payroll related expense, a $0.6 million increase in stock based compensation expense and a $0.8 million increase in professional service expense.

Current wording

General and administrative expenses increased by $1.2 million, or 13%, to $10.9 million for the three months ended September 30, 2026, from $9.6 million for the three months ended September 30, 2025. The increase was primarily due to a $1.8 million increase in payroll related expense, partially offset by a $0.6 million decrease in professional service expense.

Previous wording

Interest income increased by $0.3 million, or 44%, during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. The increase was due to an increase in the overall balance of interest-bearing cash equivalents and marketable securities.

Current wording

Interest income increased by $1.1 million, or 286%, during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025. The increase was due to an increase in the interest rates and overall balance of interest-bearing cash equivalents and marketable securities.

Previous wording

The change during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025, was due to change in the fair value of Series A warrants resulting from change in the stock price of the company at the end of the each period.

Current wording

The change during the three months ended September 30, 2026, as compared to the three months ended September 30, 2025, was due to change in the fair value of Series A warrants resulting from change in the stock price of the company between the end of each period.

Previous wording

The fair value loss on share subscription liability of $70.0 million during the three months ended June 30, 2025 was a non cash charge due to change in fair value of common stock to be issued under the LG Subscription Agreement.

Current wording

The fair value gain on share subscription liability of $71.6 million during the three months ended September 30, 2025 was a non cash charge due to change in fair value of common stock to be issued under the LG Subscription Agreement.

Previous wording

Product revenue decreased by $1.7 million, or 26%, to $5.0 million during the six months ended June 30, 2026, from $6.7 million for the six months ended June 30, 2025. This decrease was primarily due to a lower average selling price of units sold in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, partially offset by higher number of units sold in the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

Current wording

Product revenue increased by $0.1 million, or 1%, to $8.5 million during the nine months ended September 30, 2026, from $8.4 million for the nine months ended September 30, 2025. Revenue remained relatively consistent with the prior period, presenting a nominal increase in product sales. This increase was primarily due to a higher number of units sold, partially offset by a lower average selling price of units sold in the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

Professional services revenue increased by $5.2 million, or 238%, to $7.4 million during the six months ended June 30, 2026, from $2.2 million for the six months ended June 30, 2025. The increase was primarily due to a higher development activity for non-recurring engineering services during the six months ended June 30, 2026 for a new development agreement signed in second half of year ended December 31, 2025.

Current wording

Professional services revenue increased by $6.5 million, or 160%, to $10.6 million during the nine months ended September 30, 2026, from $4.1 million for the nine months ended September 30, 2025. The increase was primarily due to a higher development activity for non-recurring engineering services during the nine months ended September 30, 2026.

Previous wording

Cost of product revenue decreased by $1.4 million, or 35%, during the three months ended June 30, 2026, from the three months ended June 30, 2025. The decrease was primarily due to a lower material cost and manufacturing overheads related to the units sold.

Current wording

Cost of product revenue decreased by $0.2 million, or 2%, during the nine months ended September 30, 2026, from the nine months ended September 30, 2025. The decrease was primarily due to a lower material cost and manufacturing overheads related to the units sold.

Previous wording

Cost of professional service revenues decreased by $2.1 million, or 44%, during the six months ended June 30, 2026, from the six months ended June 30, 2025. The decrease was primarily due to a $3.8 million loss recognized on a joint development agreement during six months ended June 30, 2025, partially offset by increase in the non recurring engineering revenue during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025.

Current wording

Cost of professional service revenue decreased by $1.5 million, or 29%, during the nine months ended September 30, 2026, from the nine months ended September 30, 2025. The decrease was primarily due to a $3.8 million loss recognized on a joint development agreement during nine months ended September 30, 2025, partially offset by increase in the non recurring engineering revenue during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.

Previous wording

Research and development expenses increased by $2.0 million, or 9%, to $24.9 million for the three months ended June 30, 2026, from $22.8 million for the three months ended June 30, 2025. The increase was primarily due to a $1.5 million increase in stock based compensation expense, a $0.9 million increase in research and development expense, a $0.8 million increase in software license subscription expense, a $0.3 million increase in consulting expense, partially offset by a $1.4 million decrease in payroll related expense.

Current wording

Research and development expenses increased by $10.0 million, or 15%, to $76.6 million for the nine months ended September 30, 2026, from $66.5 million for the nine months ended September 30, 2025. The increase was primarily due to a $4.2 million in research and development material and service expense, a $3.2 million increase in payroll related costs, a $1.7 million increase in software license subscription expense, a $0.6 million increase in consulting expense, a $0.3 million increase in travel expense.

Previous wording

General and administrative expenses increased by $7.4 million, or 49%, to $22.6 million for the six months ended June 30, 2026, from $15.2 million for the six months ended June 30, 2025. The increase was primarily due to a $4.3 million increase in stock based compensation expense, a $1.3 million increase in payroll related expense, a $1.7 million increase in legal and professional expense and a $0.1 million increase in consulting expense.

Current wording

General and administrative expenses increased by $8.6 million, or 35%, to $33.4 million for the nine months ended September 30, 2026, from $24.8 million for the nine months ended September 30, 2025. The increase was primarily due to a $7.4 million increase in payroll related expense, a $1.0 million increase in legal and professional expense.

Previous wording

Interest income increased by $0.1 million, or 9%, during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The increase was due to an increase in the overall balance of interest-bearing cash equivalents and marketable securities.

Current wording

Interest income increased by $1.2 million, or 62%, during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increase was due to an increase in the interest rates and overall balance of interest-bearing cash equivalents and marketable securities.

Previous wording

The change during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, was due to an increase in the fair value of the Series A warrants issued in connection with the Facility Agreement.

Current wording

The change during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, was due to an increase in the fair value of the Series A warrants issued in connection with the Facility Agreement.

Previous wording

Interest expense increased by $2.4 million during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, due to interest expense related to the convertible notes.

Current wording

Interest expense increased by $3.6 million during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, due to interest expense related to the convertible notes.

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. 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.

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 on November 3, 2026, for two more years through November 8, 2028, 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, 2028, 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

To date, we have incurred negative cash flows from operating activities and incurred losses from operations as reflected in our accumulated deficit of $871.9 million as of June 30, 2026. 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 June 30, 2026, we had cash and cash equivalents and marketable securities totaling $177.9 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 June 30, 2026, all conditions to draw under the Facility Agreement were met. We believe that our sources of 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.

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 $867.4 million as of September 30, 2026. 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, 2026, we had cash and cash equivalents and marketable securities totaling $147.5 million. We also have the ability to draw on the Facility Agreement up to $125.0 million (as amended on November 3, 2026, for two more years through November 8, 2028, the “Facility Agreement”) 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 September 30, 2026, all conditions to draw under the Facility Agreement were met. We believe that our sources of 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 six months ended June 30, 2026, net cash used in operating activities was $57.0 million, attributable to a net loss of $114.6 million and a net change in operating assets and liabilities of $9.7 million, partially offset by non-cash charges of $67.3 million. Non-cash charges primarily consisted of a $44.3 million change in the fair value of warrant liability, $17.9 million in stock-based compensation, $2.3 million for issuance of shares for convertible note interest payment, $2.6 million in depreciation and amortization expense, $1.1 million in amortization of right of use assets and $0.2 million in accretion for convertible notes, partially offset by a $1.0 million in accretion of discount on available for sale securities. The change in net operating assets and liabilities was primarily due to a $10.0 million decrease in accrued employee costs, a $0.8 million decrease in lease liability, a $2.6 million decrease in accrued liabilities, and a $0.4 million increase in accounts receivable, partially offset by a $2.0 increase in accounts payable, a $0.7 million increase in other current liabilities, a $0.6 million decrease in other current asset and a $0.6 million decrease in other noncurrent assets.

Current wording

For the nine months ended September 30, 2026, net cash used in operating activities was $87.4 million, attributable to a net loss of $110.2 million and a net change in operating assets and liabilities of $14.3 million, partially offset by non-cash charges of $37.1 million. Non-cash charges primarily consisted of a $29.3 million in stock-based compensation, $1.0 million change in the fair value of warrant liability, $2.3 million for issuance of shares for convertible note interest payment, $3.9 million in depreciation and amortization expense, $1.7 million in amortization of right-of-use assets, $0.4 million in impairment of inventories, and $0.3 million in accretion for convertible notes, partially offset by a $1.8 million in amortization of premium on available for sale securities. The change in net operating assets and liabilities was primarily due to a $8.9 million decrease in accrued employee costs, a $1.4 million decrease in lease liability, a $1.4 million decrease in accrued liabilities, a $3.8 million increase in accounts receivable, a $1.5 million increase in other current asset and a $1.4 million increase in inventories, partially offset by a $3.1 million increase in other current liabilities, a $0.6 million decrease in other noncurrent assets, and a $0.4 increase in accounts payable,

Previous wording

For the six months ended June 30, 2026, net cash used in investing activities was $86.5 million, attributable to purchase of investments of $148.1 million and purchase of property, plant and equipment of $2.4 million, partially offset by proceeds from maturities of available-for-sale investments of $64.0 million.

Current wording

For the nine months ended September 30, 2026, net cash used in investing activities was $78.8 million, attributable to purchase of investments of $188.9 million and purchase of property, plant and equipment of $2.6 million, partially offset by proceeds from maturities of available-for-sale investments of $112.7 million.

Previous wording

For the six months ended June 30, 2026, net cash provided by financing activities was $114.5 million, attributable to $109.2 million of cash received in from public offering net of expense paid and $5.5 million of cash received in connection with our joint development agreement with LGIT, partially offset by a $0.3 million payment of issuance cost for convertible notes.

Current wording

For the nine months ended September 30, 2026, net cash provided by financing activities was $114.1 million, attributable to $108.8 million of cash received in from public offering net of expense paid and $5.5 million of cash received in connection with our joint development agreement with LGIT, partially offset by a $0.3 million payment of issuance cost for convertible notes.

Previous wording

We prepare our financial statements in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates, assumptions and judgments that can significantly impact the amounts Aeva reports as assets, liabilities, revenue, costs and expenses and the related disclosures. We base our estimates on historical experience and other assumptions that we believe are reasonable under the circumstances. Aeva’s actual results could differ significantly from these estimates under different assumptions and conditions. We believe that the accounting policies discussed below are critical to understanding our historical and future performance as these policies involve a greater degree of judgment and complexity.

Current wording

We prepare our financial statements in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates, assumptions and judgments that can significantly impact the amounts Aeva reports as assets, liabilities, revenues, costs and expenses and the related disclosures. We base our estimates on historical experience and other assumptions that we believe are reasonable under the circumstances. Aeva’s actual results could differ significantly from these estimates under different assumptions and conditions. We believe that the accounting policies discussed below are critical to understanding our historical and future performance as these policies involve a greater degree of judgment and complexity.

Previous wording

For the three months ended June 30, 2026 there were no significant changes to our critical accounting estimates as noted below. For a more detailed discussion of our critical accounting policies and estimates, refer to our Annual Report on Form 10-K for the year ended December 31, 2025 and Note 1 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Current wording

For the nine months ended September 30, 2026 there were no significant changes to our critical accounting estimates as noted below. For a more detailed discussion of our critical accounting policies and estimates, refer to our Annual Report on Form 10-K for the year ended December 31, 2025 and Note 1 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Previous wording

605-35”). If ASC 605-35 applies, we recognize a provision for the entire anticipated losses on contracts as soon as the loss becomes evident. In determining the anticipated losses, we consider the principles in ASC 606-10-32-2 through 32-27 (except for the guidance in paragraphs 606-10-32-11 through 32-13 on constraining estimates of variable consideration) to determine the transaction price, adjusted to reflect the effects of the customer's credit risk. The costs used in arriving at the estimated loss on a contract shall include all costs of the type allocable to contracts under paragraphs 340-40-25-5 through 25-8.

Current wording

When estimated contract costs exceed expected consideration under contracts with a customer, we evaluate whether the nature of the contract is in the scope of Accounting Standards Codification (“ASC”) 605-35, Revenue Recognition - Construction-Type and Production-Type Contracts(“ASC 605-35”). If ASC 605-35 applies, we recognize a provision for the entire anticipated losses on contracts as soon as the loss becomes evident. In determining the anticipated losses, we consider the principles in ASC 606-10-32-2 through 32-27 (except for the guidance in paragraphs 606-10-32-11 through 32-13 on constraining estimates of variable consideration) to determine the transaction price, adjusted to reflect the effects of the customer's credit risk. The costs used in arriving at the estimated loss on a contract shall include all costs of the type allocable to contracts under paragraphs 340-40-25-5 through 25-8.