Navitas Semiconductor Corp

Current report

We depend on a few key distributors and the loss of one or more of these distributors could have a material adverse effect on our business, financial condition and results of operations.

Current report

We cannot assure that any of our current or future distributors will not cease purchasing products from us in favor of products of other suppliers, significantly reduce orders or seek price reductions in the future, and any such event could have a material adverse effect on our revenue, profitability, and results of operations.

Current report

Furthermore, a significant portion of our revenue and accounts receivable is derived from one distributor. See Note 11, Significant Customers and Credit Concentrations, included in this Form 10-Q for the percentages of revenues and accounts receivable attributable to this one distributor. A downturn in the industry or lower sales could materially adversely affect our business and results of operations.

Current report

We employ modeling techniques to support the valuation of our accounts receivable and to project the timing and amount of expected collections. While these models are designed to provide reliable insights, they involve certain inherent risks, especially if any assumptions or inputs prove inaccurate, incomplete, or less indicative of future outcomes than anticipated.

Current report

As part of our risk management efforts, we use a discounted cash flow model for certain accounts receivable, informed by historical trends and robust assumptions. However, should these assumptions or historical patterns deviate from actual results, there is potential for variance in the model’s accuracy, which could affect decisions based on these forecasts.

Current report

On September 25, 2024, we issued 24,000 shares of our common stock to a professional advisor in exchange for consulting services provided to a subsidiary. The issuance was made in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions by an issuer not involving a public offering. The Company did not receive any cash proceeds from the issuance. The advisor represented its intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof. Appropriate legends have been applied to the book-entry positions reflecting the shares issued in the transaction.