Enovix Corp
For the period ended Jun 29, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Jul 31, 2025
ENVX$2.76+15.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-05-02.
0001828318-25-000148
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-07-31.
0001828318-25-000275
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 97 previous paragraphs and 115 current paragraphs.
52 unchanged; 29 reworded; 30 added; 15 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (30)
Current report
•Revenue: Our revenue for the fiscal quarter ended June 29, 2025 was $7.5 million and nearly doubled from the prior year’s fiscal quarter ended June 30, 2024, which was primarily driven by strong customer demand for our defense products.
Current report
•Product Development: We launched our AI-1 product platform, a core battery architecture, defined by advanced materials, design rules, and manufacturing processes, that can be adapted into multiple product variants to serve different customers and end markets. As part of this platform, we produced the first smartphone battery achieving energy density of more than 900 Wh/L, superior to any commercially available alternative. Simultaneously this product meets all other best-in-class customer requirements, including fast charging at 3C rates— and now, based upon recent testing, projecting cycle life over 1,000.
Current report
In addition, we delivered samples of AI-1 smartphone batteries to our lead Original Equipment Manufacturer (“OEM”) customer to support their formal product qualification. Upon successful completion, we expect to receive initial purchase orders from this customer. In July, we expanded sampling to our second top-tier smartphone OEM customer. We expect to begin sampling AI-1 platform products to additional leading OEMs in the coming months.
Current report
•Manufacturing Readiness: During the fiscal quarter ended June 29, 2025, we made strong progress by accelerating customer qualification efforts and reducing custom product development timelines by approximately 50%. We also completed internal UN38.3 certification for our first AI-1 smartphone battery—an important milestone ahead of mass production. To support anticipated demand growth, we have also begun procuring long-lead equipment for a second high-volume manufacturing line at our production facility in Malaysia (“Fab2”).
Current report
•Warrant Dividend: In July, we declared and issued a warrant dividend to shareholders of record of our common stock as of the close of business on July 17, 2025 (the “Record Date”). Holders of Convertible Senior Notes as of the Record Date also participated in the warrant dividend as if their Convertible Senior Notes had been converted into our common stock. If all warrants that we distributed on July 21, 2025 were exercised, we would receive up to approximately $248.5 million of proceeds, net of estimated commissions and estimated offering expenses. We intend to use proceeds from the warrant exercises to support scale-up at Fab2 in Malaysia and for general corporate purposes. Please see Note 14 “Subsequent Events” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Current report
We met our top objectives for the quarter – achieving product and throughput milestones at Fab2 and shipping production samples from Fab2 to our lead smartphone OEM, marking the start of formal product qualification. We continue to be actively engaged with other smartphone OEMs to ensure a rapid ramp once we are established in the market.
Current report
Progress continues with our two marquee smart eyewear customers, one of which commenced product testing and validation of the AI-1 AR battery, and the other, a leading processor supplier in the AR market, received samples of the AI-1 AR battery in July. We are also expanding our engagements in the defense and industrial markets. For example, in the second quarter of 2025 we signed an agreement with a top-tier industrial devices manufacturer, with the potential to expand into adjacent market segments, such as logistics, retail and field services.
Current report
Cost of revenue for the fiscal quarter ended June 29, 2025 was $5.5 million, compared to $4.4 million during the fiscal quarter ended June 30, 2024. The increase in cost of revenue of $1.1 million, or 25%, was primarily attributable to an increase in production cost resulted from products mixed sold during the current fiscal quarter as compared to the same period last fiscal year.
Current report
Restructuring Plan”), partially offset by a $2.7 million increase in depreciation and increases in other miscellaneous expenses.
Current report
Restructuring Cost
Current report
In May 2024, we initiated the 2024 Restructuring Plan to relocate our Fab1 manufacturing operations in Fremont, California to Malaysia. As a result, we recorded pre-tax restructuring charges of $38.1 million for the fiscal quarter ended June 30, 2024, which consisted of 1) non-cash charges of $35.1 million of loss on disposals of Fab1 long-lived assets in Fremont and $1.1 million of stock-based compensation expense, and 2) cash charges of $1.3 million of severance and termination benefits and $0.6 million of other charges. There was no restructuring cost for the fiscal quarter ended June 29, 2025.
Current report
Gain on Bargain Purchase of Assets
Current report
In April 2025, we acquired battery cell manufacturing assets from SolarEdge Technologies, Inc., located in South Korea for total purchase consideration of $10.0 million in cash. As a result of this business acquisition, we recorded $4.8 million of gain on bargain purchase as the estimated fair value of the acquired assets exceeded the purchase consideration. There was no gain on bargain purchase for the fiscal quarter ended June 30, 2024.
Current report
Income Tax Benefit
Current report
Income tax benefit for the fiscal quarter ended June 29, 2025 was $0.9 million, compared to $4.6 million for the fiscal quarter ended June 30, 2024. The tax benefit was calculated based on the estimated annualized effective tax rate. The decrease of $3.7 million or 81% in tax benefit was primarily attributable to a decrease in our estimated annualized effective tax rate for the current year resulting in a lower income tax benefit on the losses generated from certain foreign jurisdictions.
Current report
Comparison of Fiscal Year-to-date Ended June 29, 2025 to Prior Fiscal Year-to-date Ended June 30, 2024
Current report
N/M – Not meaningful
Current report
Revenue
Current report
$2.4 million decrease in material costs, partially offset by a $1.1 million increase in tooling and equipment and increases in other miscellaneous expenses.
Current report
Selling, general and administrative expenses for the fiscal year-to-date periods ended June 29, 2025 was $34.4 million, comparing to $40.4 million for the prior fiscal year-to-date periods ended June 30, 2024. The decrease of $6.0 million, or 15%, was primarily attributable to a $6.4 million net decrease in salaries, employee benefits and stock-based compensation expenses, which was mainly due to lower headcount in U.S. resulted from the 2024 Restructuring Plan last fiscal year. In addition, there was a $1.1 million decrease in professional fees, partially offset by a $1.0 million increase in depreciation expense, $1.0 million increase in repair and maintenance costs and increases in other miscellaneous expenses.
Current report
Restructuring Cost
Current report
In May 2024, we initiated the 2024 Restructuring Plan to relocate our Fab1 manufacturing operations in Fremont, California to Malaysia. As a result, we recorded pre-tax restructuring charges of $38.1 million for the fiscal year-to-date ended June 30, 2024, which consisted of 1) non-cash charges of $35.1 million of loss on disposals of Fab1 long-lived assets in Fremont and $1.1 million of stock-based compensation expense, and 2) cash charges of $1.3 million of severance and termination benefits and $0.6 million of other charges. There was no restructuring cost for the fiscal year-to-date ended June 29, 2025.
Current report
The change in fair value of common stock warrants of $9.9 million for the fiscal year-to-date ended June 29, 2025 was attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants. The decrease in fair value of Private Placement Warrants was primarily due to a decrease in our common stock price during the fiscal year-to-date ended June 29, 2025.
Current report
The change in fair value of common stock warrants of $12.5 million for the fiscal year-to-date ended June 30, 2024 was attributable to an increase in the fair value of the Private Placement Warrants. The increase in fair value of Private Placement Warrants was primarily due to an increase in our common stock price during the fiscal year-to-date ended June 30, 2024.
Current report
Gain on Bargain Purchase of Assets
Current report
In April 2025, we acquired battery cell manufacturing assets from SolarEdge Technologies, Inc., located in South Korea for total purchase consideration of $10.0 million in cash. As a result of this business acquisition, we recorded $4.8 million of gain on bargain purchase as the estimated fair value of the acquired assets exceeded the purchase consideration. There was no gain on bargain purchase for the fiscal year-to-date ended June 30, 2024.
Current report
Income Tax Benefit
Current report
Income tax benefit for the fiscal year-to-date ended June 29, 2025 was $1.0 million, compared to $4.7 million for the fiscal year-to-date ended June 30, 2024. The tax benefit was calculated based on the estimated annualized effective tax rate. The decrease of $3.7 million or 78% in tax benefit was primarily attributable to a decrease in our estimated annualized effective tax rate for the current year resulting in a lower income tax benefit on the losses generated from certain foreign jurisdictions.
Current report
In July, we declared and issued a warrant dividend to the holders of record of our common stock as of the close of business on July 17, 2025 (the “Record Date”). Holders of our Convertible Senior Notes as of the Record Date also participated in the warrant dividend distribution as if their Convertible Senior Notes had been converted into our common stock. Assuming that all distributed warrants are fully exercised, we would receive approximately $248.5 million of proceeds, net of estimated commissions and estimated offering expenses. We intend to use the proceeds from the warrant exercises to support Fab2 scale-up and for general corporate purposes. Please see Note 14 “Subsequent Events” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Current report
Additionally, on June 30, 2025, our board of directors authorized a repurchase plan to repurchase up to $60.0 million worth of shares of our common stock, effective immediately (the “Repurchase Plan”). We may make repurchases from time to time through open market purchases or through privately negotiated transactions and the Repurchase Plan will expire on December 31, 2026. Since we established the Repurchase Plan, no repurchases had been made under the program. For more details, please see Note 14 “Subsequent Events” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Removed paragraphs (15)
Previous report
•Revenue: Our revenue for the fiscal quarter ended March 30, 2025 was $5.1 million. We also secured bookings on defense orders from customers in South Korea which support revenue growth into the second half of 2025.
Previous report
•Manufacturing Readiness: Our high-volume production facility (“Fab2”) in Penang, Malaysia completed an ISO 9001:2015 audit with minor findings. In addition, we concluded first customer audits of both Fab2 and our Korea facility.
Previous report
•Product Development: We commenced development of smartphone battery cells using the planned commercial product design early this year and scheduled to have the first delivery of samples for product qualifications in the second quarter of this year.
Previous report
•Product Samples: We delivered a significant larger quantity of XR battery samples to one of our lead customers for extended testing and system-level integration. These battery packs, assembled in our South Korea facility using custom cells produced from Fab2, will support the customer’s ongoing evaluation ahead of volume qualification.
Previous report
We met our top objectives for the quarter – passing the third milestone for our lead smartphone customer agreement, finalizing the chemistry, obtaining the precise smartphone cell dimensions, and commencing development of the final samples to be used in the qualification process this summer.
Previous report
We continue to be actively engaged with other smartphone original equipment manufacturers (“OEMs”) to ensure a rapid ramp once we are established in the market. Progress continues with our two marquee smart glasses customers, one of which received their unique battery samples this quarter, aligned with their product development schedules.
Previous report
In the EV space, we achieved key milestones that we believe significantly improved the likelihood of expanding our commercial agreement with one of our two OEM partners, who are highly committed to electrification, later this year.
Previous report
Cost of Revenue
Previous report
Research and Development Expenses
Previous report
Selling, General and Administrative Expenses
Previous report
Cost of Revenue
Previous report
Research and Development Expenses
Previous report
Selling, General and Administrative Expenses
Previous report
Other income, net
Previous report
Other income, net for the fiscal quarter fiscal ended March 30, 2025 was $2.4 million, compared to $0.5 million for the fiscal quarter ended March 31, 2024. The increase of $1.9 million was primarily due to the fact that we had a one-time import duty forgiveness of $2.4 million in the current quarter, partially offset by higher foreign currency loss resulting from the weakening of the U.S. dollar as compared to the fiscal quarter ended March 31, 2024.
Reworded paragraphs (29)
Previous wording
The following discussion and analysis provide information that the management of Enovix Corporation (referred as to “we,” “us,” “our” and “Enovix”) believes is relevant to an assessment and understanding of Enovix’s condensed consolidated results of operations and financial condition as of March 30, 2025 and for the fiscal quarter ended March 30, 2025 and should be read together with the condensed consolidated financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis contain forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis provide information that the management of Enovix Corporation (referred as to “we,” “us,” “our” and “Enovix”) believes is relevant to an assessment and understanding of Enovix’s condensed consolidated results of operations and financial condition as of June 29, 2025 and for the fiscal quarter and fiscal year-to-date ended June 29, 2025 and should be read together with the condensed consolidated financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis contain forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
We design, develop and have started to commercially manufacture an advanced silicon-anode lithium-ion battery using our proprietary cell architecture that increases energy density and maintains high cycle life. This enables us to use silicon as the only active lithium cycling material in the anode whereas industry incumbents have historically combined only a modest amount of silicon with graphite. We have applied an equally innovative approach to develop proprietary roll-to-stack production tools for existing lithium-ion battery manufacturing lines and increase megawatt hour capacity. Our silicon anode battery architecture allows lithium-ion batteries to be produced smaller, cheaper and more efficiently at scale than current alternatives. With our acquisition of Routejade, Inc. (“Routejade”) in 2023, we also offer conventional lithium-ion batteries, which expands our suite of battery offerings to our customers.
Current wording
We design, develop and have started to commercially manufacture an advanced silicon-anode lithium-ion battery using our proprietary cell architecture that increases energy density and maintains high cycle life. This enables us to use silicon as the only active lithium cycling material in the anode whereas industry incumbents have historically combined only a modest amount of silicon with graphite. We have applied an equally innovative approach to develop proprietary roll-to-stack production tools for existing lithium-ion battery manufacturing lines and increase megawatt hour capacity. Our silicon anode battery architecture allows lithium-ion batteries to be produced smaller, cheaper and more efficiently at scale than current alternatives. With our acquisition of Routejade, Inc. in 2023, we also offer conventional lithium-ion batteries, which expands our suite of battery offerings to our customers. In April 2025, we acquired assets from SolarEdge located in close proximity to Routejade in South Korea, which expands our manufacturing facilities and this acquisition is expected to help position us to meet growing demand in the defense industry.
Previous wording
Following is a summary of the activities in the first quarter of 2025:
Current wording
Following is a summary of the activities in the second quarter of 2025:
Previous wording
•Acquisition in South Korea: We entered into an asset transfer agreement for the acquisition of battery cell manufacturing assets from SolarEdge in South Korea for a cash purchase consideration of $10.0 million on April 1, 2025. We believe this acquisition will expand our manufacturing footprint, expedite scaled production and better position us to meet growing demand in the defense industry. Please see Note 13 “Subsequent Event” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Current wording
•Acquisition in South Korea: We acquired battery cell manufacturing assets from SolarEdge in South Korea for a cash purchase consideration of $10.0 million on April 1, 2025. As result of this acquisition, we recorded $4.8 million gain on bargain purchase during the fiscal quarter ended June 29, 2025. We believe this acquisition will further expand our manufacturing footprint, expedite scaled production, better position us to meet growing demand in the defense industry and support the material coating for our battery production. Please see Note 3 “Business Acquisition” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Previous wording
We prioritize large, high-value markets, such as smartphones and smart eyewear, where the need for higher energy density commands a premium. We believe that the surge in AI-enabled smartphones and the emerging AI-enabled smart eyewear market have validated our strategy and driven significant pull for our products. We are confident that our go-to-market strategy positions us on an expedient path to profitability while maintaining a competitive edge in innovation.
Current wording
We prioritize large, high-value markets, such as smartphones and smart eyewear, where the need for higher energy density commands a premium. We believe that the surge in AI-powered devices has validated our strategy and driven significant pull for our products. We believe that our go-to-market strategy positions us on an expedient path to profitability while maintaining a competitive edge in innovation.
Previous wording
We approach our commercialization strategy by identifying customer requirements and determining where our battery architecture will offer the greatest value.
Current wording
We approach our commercialization strategy by identifying customer requirements and determining where our battery architecture will offer the greatest value, and pursuing customer engagements that meet our reference design strategy — to partner with leading suppliers and establish our AI-1 battery products as the baseline design for hardware platforms, enabling broader adoption across multiple device makers that follow the same reference architecture.
Previous wording
Our product development strategy is tightly aligned with the goals of meeting the market needs of higher energy density, cycle life, and fast charge while maintaining safety.
Current wording
We finalized the AI-1 platform in the second quarter of 2025, with the AI-1 battery for smartphones achieving an energy density level superior to any commercially available alternative, and while meeting all other best-in-class customer requirements. The AI-1 product platform incorporates elements of our EX-1M and EX-2M technology nodes. The AI-1 battery architecture is purpose-built for AI-enabled smartphones and wearables, combining energy density, strong safety performances and compatibility with high-speed automated assembly. Our product development strategy is tightly aligned with the goals of meeting the market needs of higher energy density, cycle life, and fast charge while maintaining safety.
Previous wording
We advanced our own electrochemistry with the EX-2M silicon battery product, a follow on to the EX-1M product with greater energy density and fast charge potential, which we believe will solidify our leadership position through 2026. To further extend what we believe is our established leadership position, we finalized the design specification of EX-3M, which incorporates a significant architectural enhancement projected to deliver more than a 30% capacity advantage compared to premium solutions available today. We anticipate a similar performance leap with the development of our EX-4M silicon battery product.
Current wording
We advanced our own electrochemistry with the AI-1 smartphone battery, which incorporates elements of our EX-1M and EX-2M silicon battery technology nodes, with greater energy density and fast charge potential, which we believe will solidify our leadership position through 2026. To further extend what we believe is our established leadership position, we have finalized the design of our next battery technology node, which will unlock further improvements in energy density over our previous technologies.
Previous wording
Assuming we experience no significant delays in the research and development and manufacture of our battery nor any deterioration in capital efficiency, we believe we will meet longer-term expected future cash requirements and obligations through a combination of available cash, cash equivalents and future debt financings, projected revenues and access to other public or private equity offerings as well as potential strategic arrangements.
Current wording
Assuming we experience no significant delays in the research and development and manufacture of our battery nor any deterioration in capital efficiency, we believe we will meet longer-term expected future cash requirements and obligations through a combination of available cash, cash equivalents and future debt financings, projected revenues and access to other public or private equity offerings, as well as expected proceeds from our July 2025 warrant dividend distribution, and potential strategic arrangements.
Previous wording
We recognize revenue within the scope of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Our revenue consists of product revenue, resulting from the sale of lithium-ion batteries. and battery pack products (“Product Revenue”), and service revenue, resulting from payments received from our customers based on executed engineering revenue contracts for the development of lithium-ion battery technology (“Service
Current wording
We recognize revenue within the scope of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Our revenue consists of product revenue, resulting from the sale of lithium-ion batteries. and battery pack products (“Product Revenue”), and service revenue, resulting from payments received from our customers based on executed engineering revenue contracts for the development of lithium-ion battery technology (“Service Revenue”). We did not recognize any Service Revenue during either of the fiscal quarters ended June 29, 2025 and June 30, 2024.
Previous wording
Other income and expense primarily consists of dividend income, interest income, interest expense, foreign currency transaction gain or loss, one-time income resulting from import duty forgiveness, and fair value adjustments for outstanding common stock warrants.
Current wording
Other income and expense primarily consists of dividend income, interest income, interest expense, foreign currency transaction gain or loss, one-time income resulting from import duty forgiveness, one-time gain from bargain purchase of assets resulting from a business acquisition, and fair value adjustments for outstanding common stock warrants.
Previous wording
Revenue for the fiscal quarter ended March 30, 2025 was $5.1 million, which remained relatively flat as compared to $5.3 million of revenue in the same period last year. Our revenues were primarily generated from our product shipments to South Korea defense contractors and consumer electronics customers. Of the total revenue recognized for the fiscal quarters March 30, 2025 and March 31, 2024, $2.1 million and $1.9 million of revenue, respectively, resulted from sales to one South Korean defense contractor.
Current wording
Revenue for the fiscal quarter ended June 29, 2025 was $7.5 million, which increased nearly double as compared to $3.8 million of revenue for the prior fiscal quarter ended June 30, 2024. Our revenues were primarily generated from our product shipments to South Korea defense contractors and consumer electronics customers. The increase in revenue of $3.7 million was primarily attributable to an increase in our sales to South Korea defense contractors. Of the total revenue recognized for the fiscal quarters ended June 29, 2025 and June 30, 2024, $4.8 million and $1.2 million of revenue, respectively, resulted from sales to one South Korean defense contractor.
Previous wording
Selling, general and administrative expenses for the fiscal quarter ended March 30, 2025 were $16.9 million, compared to $19.5 million during the fiscal quarter ended March 31, 2024. The decrease of $2.7 million, or 14%, was primarily attributable to a $2.3 million net decrease in salaries, employee benefits and stock-based compensation expenses, which was mainly due to lower headcount in U.S. resulted from the 2024 Restructuring Plan last fiscal year.
Current wording
Selling, general and administrative expenses for the fiscal quarter ended June 29, 2025 were $17.5 million, compared to $20.9 million during the fiscal quarter ended June 30, 2024. The decrease of $3.4 million, or 16%, was primarily attributable to a $4.3 million net decrease in salaries, employee benefits and stock-based compensation expenses, which was mainly due to lower headcount in U.S. resulted from the 2024 Restructuring Plan last fiscal year, partially offset by increases in other miscellaneous expenses.
Previous wording
The changes in fair value of common stock warrants of $15.8 million and $21.1 million for the fiscal quarters ended March 30, 2025 and March 31, 2024, respectively, were attributable to a decrease in the fair value of the outstanding Private Placement Warrants. The decrease in fair value of Private Placement Warrants was primarily due to a decrease in our common stock price at the end of each respective quarter.
Current wording
The changes in fair value of common stock warrants of $9.9 million and $12.5 million for the fiscal quarters ended June 29, 2025 and June 30, 2024, respectively, were attributable to an increase in the fair value of the outstanding Private Placement Warrants. The increase in fair value of Private Placement Warrants was primarily due to an increase in our common stock price for each respective quarter.
Previous wording
Cost of revenue for the fiscal quarter ended March 30, 2025 was $4.8 million, compared to $7.1 million during the fiscal quarter ended March 31, 2024. The decrease in cost of revenue of $2.2 million, or 32%, was primarily attributable to the non-recurring inventory step-up amortization of $1.9 million, which was recorded in the first quarter of 2024 in connection with the acquisition of Routejade. There was no similar charge in the first fiscal quarter of 2025. The remainder of the decrease was a result of lower manufacturing costs associated with the products sold in the fiscal quarter ended March 30, 2025 as compared to the fiscal quarter ended March 31, 2024.
Current wording
Cost of revenue for the fiscal year-to-date ended June 29, 2025 was $10.4 million, compared to $11.5 million during the prior fiscal year-to-date ended June 30, 2024. The decrease in cost of revenue of $1.1 million, or 10%, was primarily attributable toa non-recurring inventory step-up amortization of $1.9 million recorded for the fiscal year-to-date ended June 30, 2024 in connection with the acquisition of Routejade. There was no similar charge for the current fiscal year-to date ended June 29, 2025. This decrease was partially offset by an increase in production costs in connection with an increase in revenue.
Previous wording
Research and development (“R&D”) expenses for the fiscal quarter ended March 30, 2025 were $25.9 million, compared to $48.8 million during the fiscal quarter ended March 31, 2024. The decrease of $22.9 million, or 47%, was primarily attributable to $18.3 million of a one-time accelerated depreciation in connection with the 2023 restructuring plan, which was recorded in the first quarter of 2024. There was no similar expense recorded in the fiscal quarter ended March 30, 2025. In addition, there was a $6.0 million net decrease in salaries, employee benefits and stock-based compensation expenses primarily due to lower headcount in the U.S resulting from cost reduction initiatives in 2024, the 2024 Restructuring Plan, and a $1.8 million decrease in materials and tooling, partially offset by a $1.4 million increase in machinery and equipment charges, $1.0 million increase in technology and facilities costs and increases in other miscellaneous expenses.
Current wording
Research and development expenses for the fiscal year-to-date ended June 29, 2025 were $54.1 million, compared to $77.9 million during the prior fiscal year-to-date ended June 30, 2024. The decrease of $23.8 million, or 31%, was primarily attributable to $15.2 million a net decrease in depreciation expense, which included a $18.3 million of a one-time accelerated deprecation recorded in the fiscal year-to-date ended June 30, 2024 in connection with the 2023 restructuring plan. In addition, there were a $7.8 million net decrease in salaries, employee benefits and stock-based compensation expenses primarily due to lower headcount in the U.S resulting from the 2024 Restructuring Plan and a
Previous wording
Interest income for the fiscal quarter ended March 30, 2025 was $2.4 million, compared to $3.6 million for the fiscal quarter ended March 31, 2024. The decrease of $1.1 million was primarily due to the fact that we received lower dividend income and interest income as a result of lower interest rates and lower cash balance for the fiscal quarter ended March 30, 2025 as compared to the fiscal quarter ended March 31, 2024.
Current wording
Interest income for the fiscal year-to-date ended June 29, 2025 was $4.9 million, compared to $6.9 million for the fiscal year-to-date ended June 30, 2024. The decrease of $2.0 million or 29% was primarily due to the fact that we had lower cash balance for the fiscal year-to-date ended June 29, 2025 as compared to the fiscal year-to-date ended June 30, 2024 together with lower interest rate for the current year.
Previous wording
As of March 30, 2025, we had cash, cash equivalents, restricted cash, and short-term investments of $250.0 million, working capital of $212.4 million and an accumulated deficit of $844.6 million. Our cash equivalents and short-term investments primarily consist of U.S. government agency securities, U.S. Treasuries, money market mutual funds, and corporate notes and debt securities.
Current wording
As of June 29, 2025, we had cash, cash equivalents, restricted cash, and short-term investments of $205.5 million, working capital of $176.1 million and an accumulated deficit of $889.1 million. Our cash equivalents and short-term investments primarily consist of U.S. government agency securities, U.S. Treasuries, money market mutual funds, and corporate notes and debt securities.
Previous wording
For the fiscal quarter ended March 30, 2025, we used $6.3 million of our cash to fund our acquisitions of property and equipment. We will continue to increase our property and equipment purchases in the near future to support the build-out of our manufacturing facilities and our battery manufacturing production. For more information regarding our purchase commitments, please see the contractual obligations and commitments section below.
Current wording
For the fiscal year-to-date ended June 29, 2025, we used $14.2 million of our cash to fund our acquisitions of property and equipment and $10.0 million of payment for an acquisition of battery cell manufacturing assets in South Korea. We will continue to increase our property and equipment purchases in the near future to support the build-out of our manufacturing facilities and our battery manufacturing production. For more information regarding our purchase commitments, please see the contractual obligations and commitments section below.
Previous wording
Net cash used in operating activities was $16.9 million for the fiscal quarter ended March 30, 2025. Net cash used in operating activities consisted of net loss of $23.5 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of the Private Placement Warrants of $15.8 million, stock-based compensation expense of $12.0 million, and depreciation and amortization expense, net of accretion of $8.4 million.
Current wording
Net cash used in operating activities was $42.8 million for the fiscal year-to-date ended June 29, 2025. Net cash used in operating activities consisted of net loss of $67.8 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of the Private Placement Warrants of $9.9 million, stock-based compensation expense of $26.1 million, depreciation and amortization expense, net of accretion of $17.3 million, and gain on bargain purchase of assets of $4.8 million resulted from the acquisition of assets in Korea.
Previous wording
Net cash used in operating activities was $35.0 million for the fiscal quarter ended March 31, 2024. Net cash used in operating activities consisted of net loss of $46.5 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of Private Placement Warrants of $21.1 million, stock-based compensation expense of $12.8 million, and depreciation and amortization expense, net of accretion of $25.0 million.
Current wording
Net cash used in operating activities was $62.0 million for the fiscal year-to-date ended June 30, 2024. Net cash used in operating activities consisted of net loss of $162.4 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of Private Placement Warrants of $12.5 million, stock-based compensation expense of $31.8 million, and depreciation and amortization expense, net of accretion of $30.9 million and impairment and disposals of Fab1 long-lived assets of $35.1 million.
Previous wording
Our cash flows used in investing activities to date have been primarily comprised of purchases of property and equipment, as well as short-term investment activities. We expect the costs to acquire property and equipment to increase in the future as we continue to build-out and develop our battery manufacturing production capabilities in Malaysia, including our Fab2 facility in Malaysia, and in South Korea. Net cash used in investment activities was $64.4 million for the fiscal quarter ended March 30, 2025, which primarily consisted of $6.3 million of equipment purchases and $58.1 million of short-term investment purchases.
Current wording
Our cash flows used in investing activities to date have been primarily comprised of purchases of property and equipment, as well as short-term investment activities. We expect the costs to acquire property and equipment to increase in the future as we continue to build-out and develop our battery manufacturing production capabilities in Malaysia, including our Fab2 facility in Malaysia, and in South Korea. Net cash used in investment activities was $91.1 million for the fiscal year-to-date ended June 29, 2025, which primarily consisted of $14.2 million of equipment purchases, $85.5 million of short-term investment purchases and $10.0 million of payment for an acquisition of assets in South Korea, partially offset by maturities of $18.6 million of short-term investments.
Previous wording
In April 2025, we paid $10.0 million in cash in connection with the recent purchase of battery cell manufacturing assets from SolarEdge. Please see Note 13 “Subsequent Event” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for additional information regarding this acquisition.
Current wording
For additional information regarding the acquisition of assets in Korea, please see Note 3 “Business Acquisition” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q.
Previous wording
Net cash provided by investing activities for the fiscal quarter ended March 31, 2024 was $19.1 million, which primarily consisted of maturities of $51.3 million of short-term investments, which was partially offset by $15.1 million of equipment purchases and $17.1 million of short-term investment purchases.
Current wording
Net cash provided by investing activities for the fiscal year-to-date ended June 30, 2024 was $19.5 million, which primarily consisted of maturities of $91.6 million of short-term investments, partially offset by $40.3 million of equipment purchases and $31.8 million of short-term investment purchases.
Previous wording
Net cash used in financing activities was $1.5 million for the fiscal quarter ended March 30, 2025, which primarily consisted of $1.8 million of payroll tax payments for shares withheld upon vesting of restricted stock units and $0.5 million of transaction costs related to a secondary offering in the fourth quarter of 2024, partially offset by $0.8 million of proceeds from the exercise of stock options to purchase our common stock.
Current wording
Net cash used in financing activities was $2.7 million for the fiscal year-to-date ended June 29, 2025, which primarily consisted of $2.9 million of payroll tax payments for shares withheld upon vesting of restricted stock units and $0.8 million of loan payments, partially offset by $1.5 million of proceeds from the exercise of stock options and employee stock purchase plan (“ESPP”) to purchase our common stock.
Previous wording
Net cash used in financing activities was $5.4 million for the fiscal quarter ended March 31, 2024, which primarily consisted of $1.8 million of gross proceeds from the borrowings of loans, $5.9 million of proceeds from the issuance of our common stock through an ATM offering and proceeds from exercise of stock options to purchase our common stock, partially offset by $2.2 million of payroll tax payments for shares withheld upon vesting of restricted stock units.
Current wording
Net cash provided by financing activities was $45.1 million for the fiscal year-to-date ended June 30, 2024, which primarily consisted of $4.6 million of gross proceeds from the borrowings of loans, $42.8 million of proceeds from the issuance of our common stock through an ATM offering and proceeds from exercise of stock options to purchase our common stock and $1.1 million of proceeds from our ESPP to purchase our common stock, partially offset by $3.3 million of payroll tax payments for shares withheld upon vesting of restricted stock units.
Previous wording
As of March 30, 2025, we had $172.5 million aggregate principal amount of 3.0% Convertible Senior Notes outstanding, which will mature on May 1, 2028 unless earlier converted, redeemed or repurchased. In addition, we had $10.8 million of asset secured loans, of which $10.4 million are classified as short-term debt on our Condensed Consolidated Balance Sheet as of March 30, 2025. Please see Note 7 “Borrowings” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Current wording
As of June 29, 2025, we had $172.5 million aggregate principal amount of 3.0% Convertible Senior Notes outstanding, which will mature on May 1, 2028 unless earlier converted, redeemed or repurchased. In addition, we had $10.9 million of asset secured loans, of which $10.4 million are classified as short-term debt on our Condensed Consolidated Balance Sheet as of June 29, 2025. Please see Note 8 “Borrowings” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Previous wording
We expect to enter into other commitments to support our product development, the build-out of our manufacturing facilities, and our business development, which are generally cancellable upon notice. Additionally, from time to time, we enter into agreements in the normal course of business with various vendors, which are generally cancellable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation. As of March 30, 2025, our commitments included approximately $3.5 million of our open purchase orders, including equipment purchase orders, and contractual obligations that occurred in the ordinary course of business. For contractual obligations, please See Note 8 “Commitments and Contingencies” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Current wording
We expect to enter into other commitments to support our product development, the build-out of our manufacturing facilities, and our business development, which are generally cancellable upon notice. Additionally, from time to time, we enter into agreements in the normal course of business with various vendors, which are generally cancellable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation. As of June 29, 2025, our commitments included approximately $5.6 million of our open purchase orders, including equipment purchase orders, and contractual obligations that occurred in the ordinary course of business. For contractual obligations, please See Note 9 “Commitments and Contingencies” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.
Previous wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. These estimates and assumptions include but are not limited to: depreciable lives for property and equipment, the valuation allowance on deferred tax assets, valuation of goodwill and intangible assets, assumptions used in stock-based compensation and estimates to fair value of the Private Placement Warrants. Certain accounting policies have a more significant impact on our condensed consolidated financial statements due to the size of the financial statement elements and prevalence of their application.
Current wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. These estimates and assumptions include but are not limited to: depreciable lives for property and equipment and intangible assets, valuation for assets acquired in business acquisition, valuation for inventory, valuation allowance on deferred tax assets, assumptions used in income tax provisions, valuation of goodwill and intangible assets, assumptions used in stock-based compensation, assumptions used in the calculation of earnings per share related to the warrant dividend, incremental borrowing rate for operating right-of-use assets and lease liabilities and estimates to fair value common stock warrants. Certain accounting policies have a more significant impact on our condensed consolidated financial statements due to the size of the financial statement elements and prevalence of their application.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Research and development (“R&D”) expenses for the fiscal quarter ended June 29, 2025 were $28.1 million, compared to $29.1 million during the fiscal quarter ended June 30, 2024. The decrease of $0.9 million, or 3%, was primarily attributable to a $4.1 million net decrease in salaries, employee benefits and stock-based compensation expenses primarily due to lower headcount in the U.S resulting from cost reduction initiatives in 2024 (the “2024
Current report — wording carried from elsewhere
The following table sets forth our condensed consolidated operating results for the periods presented below (in thousands):
Current report — wording carried from elsewhere
Revenue for the fiscal year-to-date ended June 29, 2025 was $12.6 million, compared to $9.0 million for the prior fiscal year-to-date ended June 30, 2024. Our revenues were primarily generated from our product shipments to South Korea defense contractors and consumer electronics customers. The increase in revenue of $3.5 million was primarily attributable to an increase in our sales to South Korea defense contractors. Of the total revenue recognized for the fiscal years-to-date ended June 29, 2025 and June 30, 2024, $6.9 million and $3.1 million of revenue, respectively, resulted from sales to one South Korean defense contractor.
Current report — wording carried from elsewhere
Change in Fair Value of Common Stock Warrants
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Revenue”). We did not recognize any Service Revenue during either of the fiscal quarters ended March 30, 2025 and March 31, 2024.