Movella | Press room

Movella Reports Fourth Quarter and Full Year 2022 Financial Results

Written by Movella | Mar 31, 2023 8:35:00 PM
  • Achieved record quarterly revenue of $12.1 million in the fourth quarter

  • $60.3 million net proceeds from our Nasdaq listing in February 2023 expected to provide runway to expand sales & marketing, develop new products, and execute operations for future growth

  • Announced early access to new OBSKUR™ platform, providing user-friendly tools for livestreaming influencers to deliver interactive experiences

 

HENDERSON, Nevada, March 31, 2023 -- Movella Holdings Inc. (NASDAQ: MVLA) (“Movella”), a leading full-stack provider of sensors, software, and analytics that enable the digitization of movement, today reported its results for the fourth quarter and twelve months ended December 31, 2022.

 

“2022 was an exciting and transformative year for Movella as we positioned ourselves to become a publicly traded company at the forefront of developing and delivering new, cutting-edge movement digitization technologies and products to our customers,” said Movella CEO Ben Lee. “In addition to our established core business that continues to record strong growth, we believe we will remain well-positioned to provide critical enabling solutions for applications in emerging high-growth markets such as next-generation gaming, livestreaming, digital health, and autonomous robots. We are excited about the positive market response to our recently introduced products and our opportunities going forward.”

 

Fourth Quarter 2022

 

  • Net revenue in Q4 totaled $12.1 million, compared to $10.2 million in the same period in the previous year.

  • Gross Profit. GAAP gross profit in Q4 rose to $5.7 million compared to $5.6 million in the previous year. Non-GAAP gross profit totaled $6.9 million, compared to $6.8 million in the same period in the previous year.

  • Loss from Operations. GAAP loss from operations in Q4 was $10.8 million, compared to $5.5 million in the same period in the previous year. Non-GAAP loss from operations was $1.5 million, an improvement of $2.2 million from the same period in the previous year.

  • GAAP Net Loss. GAAP net loss attributable to common stockholders totaled $15.0 million, compared to $6.0 million in the same period in the previous year.

  • Adjusted EBITDA. Adjusted EBITDA loss in Q4 was $1.2 million, an improvement of $2.0 million compared to the same period in the previous year.

  • Cash and cash equivalents. Cash and cash equivalents at quarter end was $14.3 million, compared to $3.9 million at the end of Q3 2022.

 

Fiscal Year 2022

 

  • Net revenue for the full year totaled $40.5 million, compared to $34.4 million in the previous year.

  • Gross Profit. GAAP gross profit for the full year rose to $19.2 million, compared to $18.0 million previous year. Non-GAAP gross profit totaled $24.5 million, compared to $22.7 million in the previous year.

  • Loss from Operations. GAAP loss from operations for 2022 was $28.3 million, compared to $19.7 million previous year. Non-GAAP loss from operations was $12.3 million, compared to $12.3 million in the previous year.

  • GAAP Net Loss. GAAP net loss attributable to common stockholders for 2022 totaled $35.1 million, compared to $20.2 million in the previous year.

  • Adjusted EBITDA. Adjusted EBITDA loss for the full year was $10.9 million, compared to Adjusted EBITDA loss of $10.3 million in the previous year.

  • Cash and cash equivalents. Cash and cash equivalents at year end totaled $14.3 million compared to $11.2 million at the end of 2021.

 

“We succeeded in achieving several significant milestones in 2022 and in the fourth quarter, which was our strongest quarter ever,” said Movella CFO Steve Smith. “However, we are increasingly cautious given accelerating macro-environment challenges that may impact our revenue pipeline, including rising interest rates, escalations in the Ukraine conflict, rampant inflation, bank failures, and unprecedented layoffs in the tech sector, causing customer project delays that we expect will continue to add pressure to our top line this year. Fortunately, we are in a strong cash position due to our February 2023 Nasdaq listing which, through a series of transactions, raised $60.3 million net proceeds, and which we expect will allow us to weather this environment, maintain focus on new product introductions, and expansion of our global markets.”

 

Business Highlights

 

Since the beginning of the fourth quarter, Movella has introduced several new cutting-edge products, pioneering new use cases with high-profile visibility, and achieved milestones in our partner engagement.

 

New Products

 

  • Opened early access application window for OBSKUR, Movella’s all-in-one broadcast software platform that provides content creators with user-friendly tools to deliver interactive experiences, including real-time human movements for digital avatars during livestreams on well-known streaming sites such as Twitch.

  • Introduced and shipped Xsens Vision Navigator in partnership with Fixposition expanding centimeter-level accurate movement positioning for autonomous robot applications operating in a variety of GNSS challenged environments.

  • Launched MTi-8, a miniature form factor and cost-effective motion sensor module, for a wide range of embedded outdoor movement tracking applications, saving users development time, and the expense of integrating gyroscopes, accelerometers, and other sensors.

 

High-Profile Market Engagement and Visibility

 

  • Demonstrated MotionPrint technology with iconic athletes Steve Young and Jayson Tatum, digitized their unique signature movements, and created monetizable “Motion IP.”

  • Made Wall Street history when Movella CEO, Ben Lee, rang Nasdaq’s Opening Bell while being digitized with Movella Xsens motion capture technology, alongside football legend Steve Young.

  • Formed strategic partnership with Euleria Health, a Movella DOT digital health developer, for affordable rehabilitation and physical therapy solutions.

 

Partnership Engagement

 

  • Announced revolutionary integration with 3D avatar creator, Ready Player Me, enabling users to seamlessly add movement to their avatars in real-time, bringing entire body movements into virtual worlds.

  • Grew channel partner network to 125 globally, adding 31 distributors and value-added resellers since the start of 2022, expanding the global availability of Movella products.

  • Increased Movella DOT app developer network to over 800 independent third party developers.

 

 

 

 

About Movella Holdings Inc.

 

Movella is a leading full-stack provider of sensors, software, and analytics that enable the digitization of movement. Movella serves the entertainment, health & sports, and automation & mobility markets. Our innovations enable customers to capitalize on the value of movement by transforming data into meaningful and actionable insights. Partnering with leading global brands such as Electronic Arts, EPIC Games, 20th Century Studios, Netflix, Toyota, Siemens and over 500 sports organizations, Movella is creating extraordinary outcomes that move humanity forward. To learn more, please visit www.movella.com.

 

This press release contains “forward-looking statements” within the meaning of federal securities laws. The words “accelerate,” “anticipate,” “believe,” “continue,” “could,” “enable,” “estimate,” “expect,” “extend,” “fuel,” “future,” “growth,” “intend,” “may,” “might,” “opportunity,” “outlook,” “plan,” “position,” “possible,” “potential,” “predict,” “progress,” “project,” “realize,” “see,” “seem,” “should,” “will,” “would,” and similar expressions, or the negative of such expressions, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding the following: our belief that we will remain well-positioned to provide critical enabling solutions for applications in emerging high-growth markets; our opportunities going forward; macro-environment challenges and their potential impact on our revenue pipeline and top line; our cash position and ability to weather such challenges; the anticipated or potential features, benefits, use cases and applications for Movella’s products and technology and timing thereof; the anticipated benefits of non-GAAP financial measures; the market opportunity for Movella’s products and technology; or other characterizations of future events or circumstances, including any underlying assumptions. These statements are based on the current expectations of Movella’s management and are not predictions of actual performance and as such, are provided for illustrative purposes only. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Movella’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: (i) failure to realize the anticipated benefits of the business combination; (ii) general economic and macro-economic conditions and Movella’s financial performance and factors affecting the same; (iii) changes adversely affecting the businesses and target markets in which Movella is engaged; (iv) Movella’s ability to execute on its business strategy and plans and to manage growth; and (v) risks related to regulatory matters, as well as the factors described under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” and under similar headings in the final prospectus filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b)(3) by Pathfinder on January 17, 2023, the Company’s annual report on Form 10-K for the year ended December 31, 2022 and current reports on Form 8-K filed on February 13, 2023 and March 31, 2023, and in future filings Movella may file with the SEC in the future. If any of these risks materialize or the underlying assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Movella presently knows or currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect expectations, plans or forecasts of future events and views as of the date of this press release. Movella anticipates that subsequent events and developments will cause its assessments to change. However, Movella specifically disclaims any obligation to update any forward-looking statements, except to the extent required by applicable law. These forward-looking statements should not be relied upon as representing Movella’s assessments as of any date subsequent to the date of this press release and are not intended to serve as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Accordingly, undue reliance should not be placed upon the forward-looking statements.

 

Non-GAAP Financial Measures

 

Movella Holdings has provided financial information in this news release that has not been prepared in accordance with GAAP. Adjusted EBITDA, non-GAAP gross profit, and non-GAAP operating loss exclude net loss attributable to non-controlling interests, preferred stock dividends, share-based compensation expense, loss from discontinued operations, loss on debt extinguishments related to the consummation of the business combination agreement, debt issuance costs, fair value adjustments on debt instruments for which we elected the fair value option under ASC 825, and impairment of acquired intangible assets. Adjusted EBITDA also excludes interest, taxes, depreciation and amortization, and other income (expense).

 

Adjusted EBITDA, non-GAAP gross profit, and non-GAAP operating loss are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures have limitations as an analytical tool and are not intended to be used in isolation or as a substitute for net loss, gross profit, operating loss or any other performance measure determined in accordance with GAAP. We present these non-GAAP financial measures because we consider each to be an important supplemental measure of our performance.

 

We use these non-GAAP financial measures to make operational decisions, evaluate our performance, prepare forecasts and determine compensation. Further, we believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. Share-based compensation expenses are expected to vary depending on the number of new incentive award grants issued to both current and new employees, the number of such grants forfeited by former employees, and changes in our stock price, stock market volatility, expected option term and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP financial measures, we exclude certain non-cash and one-time items in order to facilitate comparability of our operating performance on a period-to-period basis because such expenses are not, in our view, related to our ongoing operating performance. We use this view of our operating performance for purposes of comparison with its business plan and individual operating budgets and in the allocation of resources.

 

We further believe that these non-GAAP financial measures are useful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that the use of these non-GAAP financial measures also facilitates a comparison of our underlying operating performance with that of other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

 

In the future, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent or non-recurring. Investors and potential investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. The limitations of relying on non-GAAP financial measures include, but are not limited to, the fact that other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative tool.

 

Investors and potential investors are encouraged to review the reconciliation of our non-GAAP financial measures contained within this news release with our GAAP financial results.

 

Media

media@movella.com

 

Investors

investors@movella.com

 

 

 

MOVELLA HOLDINGS INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

 

 

As of

December 31,

 

2022

 

2021

Current assets

 

 

 

Cash and cash equivalents

$             14,334

 

$             11,166

Accounts receivable, net of allowance for doubtful accounts of $144 and $20 at December 31, 2022 and 2021

                 6,690

 

                 4,478

Inventories

                 5,164

 

                 4,535

Prepaid expenses and other current assets

                 3,274

 

                 2,308

Current assets from discontinued operations

                      —

 

                    291

Total current assets

               29,462

 

               22,778

Property and equipment, net

                 2,361

 

                 2,734

Goodwill

               36,381

 

               38,584

Intangible assets, net

                 5,807

 

               20,902

Non-marketable equity securities

               25,285

 

               25,000

Capitalized equity issuance costs and other assets

                 4,265

 

                    110

Right-of-use assets

                 3,281

 

                      —

Deferred tax assets

                      86

 

                      —

Total assets

$           106,928

 

$           110,108

Liabilities, mezzanine equity and stockholders’ deficit

 

 

 

Current liabilities

 

 

 

Accounts payable

$               5,967

 

$               2,528

Accrued expenses and other current liabilities

                 7,944

 

                 5,622

Line of credit and current portion of long-term debt

                    148

 

                 1,353

Current portion of deferred revenue

                 3,334

 

                 2,422

Payable to Kinduct sellers – current

                 4,303

 

                 5,954

Current liabilities from discontinued operations

                      —

 

                    357

Total current liabilities

               21,696

 

               18,236

Long-term portion of term debt

               25,649

 

                 8,396

Convertible notes, net – related party

                 6,186

 

                      —

Deferred revenue, net of current portion

                 1,344

 

                 1,170

Deferred tax liabilities, net

                      —

 

                    222

Operating lease liabilities and other non-current liabilities

                 3,088

 

                    371

Total liabilities

               57,963

 

               28,395

Commitments and contingencies

 

 

 

Mezzanine equity

 

 

 

Series D-1 convertible preferred stock, $0.0001 par value. 6,562,724 shares authorized, and issued and outstanding at December 31, 2022 and 2021; liquidation preference of $30,000 as of December 31, 2022 and 2021

               41,991

 

               39,307

Series A convertible preferred stock, $0.0001 par value. 10,000,000 shares authorized, and issued and outstanding at December 31, 2022 and 2021; liquidation preference of $10,000 as of December 31, 2022 and 2021

                 9,950

 

                 9,950

Series B convertible preferred stock, $0.0001 par value. 11,791,929 shares authorized; 8,747,602 and 8,741,929 shares issued and outstanding at December 31, 2022 and 2021; liquidation preference of $24,816 and $24,800 as of December 31, 2022 and 2021

               24,680

 

               24,680

Series C convertible preferred stock, $0.0001 par value. 13,122,055 shares authorized, and issued and outstanding at December 31, 2022 and 2021; liquidation preference of $37,226 as of December 31, 2022 and 2021

               37,032

 

               37,032

Series D convertible preferred stock, $0.0001 par value. 7,470,088 shares authorized, and issued and outstanding at December 31, 2022 and 2021; liquidation preference of $31,043 as of December 31, 2022 and 2021

               30,780

 

               30,780

Series E convertible preferred stock, $0.0001 par value. 18,024,809 shares authorized; 10,458,755 shares issued and outstanding at December 31, 2022 and 2021; liquidation preference of $43,463 as of December 31, 2022 and 2021

               40,750

 

               40,750

Total mezzanine equity

             185,183

 

             182,499

Stockholders’ deficit

 

 

 

Common stock, $0.0001 par value. 95,000,000 shares authorized, 12,751,023 and 9,184,092 shares issued and outstanding at December 31, 2022 and 2021

                        1

 

                        1

Additional paid-in capital

                    692

 

                      —

Accumulated other comprehensive (loss) income

               (1,646)

 

                 1,431

Accumulated deficit

           (142,016)

 

           (109,601)

Total Movella stockholders’ deficit

           (142,969)

 

           (108,169)

Non-controlling interest in subsidiaries

                 6,751

 

                 7,383

Total stockholders’ deficit

           (136,218)

 

           (100,786)

Total liabilities, mezzanine equity and stockholders’ deficit

$           106,928

 

$           110,108

 

MOVELLA HOLDINGS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(Unaudited)

 

 

Three Months Ended
December 31,

 

Twelve Months Ended
December 31,

 

2022

 

2021

 

2022

 

2021

Revenues

 

 

 

 

 

 

 

Product

$           10,068

 

$              8,951

 

$           34,283

 

$           28,848

Service

                2,049

 

                1,258

 

                6,183

 

                5,566

Total revenues

              12,117

 

              10,209

 

              40,466

 

              34,414

Cost of revenues

 

 

 

 

 

 

 

Product

                4,509

 

                3,414

 

              15,223

 

              12,049

Service

                1,873

 

                1,151

 

                6,071

 

                4,412

Total cost of revenues

                6,382

 

                4,565

 

              21,294

 

              16,461

Gross profit

                5,735

 

                5,644

 

              19,172

 

              17,953

Operating expenses

 

 

 

 

 

 

 

Research and development

                2,471

 

                4,131

 

              13,258

 

              14,014

Sales and marketing

                2,445

 

                3,081

 

              12,324

 

              10,710

General and administrative

                4,467

 

                3,916

 

              14,697

 

              12,943

Impairment of intangible assets

                7,164

 

                      —

 

                7,164

 

                      —

Operating expenses

              16,547

 

              11,128

 

              47,443

 

              37,667

Loss from operations

            (10,812)

 

              (5,484)

 

            (28,271)

 

            (19,714)

Other income (expense)

 

 

 

 

 

 

 

Loss on debt extinguishment

                 (646)

 

                      —

 

                 (646)

 

                      —

Debt issuance costs

              (2,389)

 

                      —

 

              (2,389)

 

                      —

Revaluation of debt

                 (300)

 

                      —

 

                 (300)

 

                      —

Interest expense, net

                 (524)

 

                 (937)

 

              (2,167)

 

              (1,965)

Other income, net

                   251

 

                   249

 

                   613

 

                2,148

Total other income (expense)

              (3,608)

 

                 (688)

 

              (4,889)

 

                   183

Loss from continuing operations before income taxes

            (14,420)

 

              (6,172)

 

            (33,160)

 

            (19,531)

Income tax benefit

                    (24)

 

                 (535)

 

                 (113)

 

                 (728)

Net loss from continuing operations

            (14,396)

 

              (5,637)

 

            (33,047)

 

            (18,803)

Loss from discontinued operations (net of tax)

                      —

 

                      —

 

                      —

 

                 (156)

Net loss

            (14,396)

 

              (5,637)

 

            (33,047)

 

            (18,959)

Net loss attributable to non-controlling interests

                    (62)

 

                 (275)

 

                 (632)

 

              (1,300)

Net loss attributable to Movella Inc.

$          (14,334)

 

$            (5,362)

 

$          (32,415)

 

$          (17,659)

Deemed dividend from accretion of Series D-1 preferred stock

                 (677)

 

                 (630)

 

              (2,684)

 

              (2,511)

Net loss attributable to common stockholders

$          (15,011)

 

$            (5,992)

 

$          (35,099)

 

$          (20,170)

Net loss per share from continuing operations, basic and diluted

$              (1.18)

 

$              (0.66)

 

$              (3.11)

 

$              (2.20)

Net loss per share from discontinued operations, basic and diluted

$                   —

 

$                   —

 

$                   —

 

$              (0.02)

Net loss per share, basic and diluted

$              (1.18)

 

$              (0.66)

 

$              (3.11)

 

$              (2.22)

Weighted average shares outstanding, basic and diluted

      12,741,655

 

        9,147,604

 

      11,285,170

 

        9,101,819



MOVELLA HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

   Three Months Ended

December 31,

 

   Twelve Months Ended December 31,

 

2022

 

2021

 

2022

 

2021

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$           (14,396)

 

$             (5,637)

 

$           (33,047)

 

$           (18,959)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

Depreciation and amortization

                 1,806

 

                 1,825

 

                 7,919

 

                 7,280

Stock-based compensation expense

                    569

 

                    211

 

                 1,699

 

                    786

Provision for excess and obsolete inventories

                  (372)

 

                      —

 

                    265

 

                      —

Impairment of intangible assets

                 7,164

 

                      —

 

                 7,164

 

                      —

Loss on disposals of property and equipment

                      —

 

                      11

 

                      —

 

                      24

Unrealized loss (gain) on marketable securities

                      —

 

                        8

 

                      58

 

                    (67)

Accretion of convertible notes, net

                    121

 

                    543

 

                    371

 

                    543

Accretion of Kinduct deferred payout

                    145

 

                  (244)

 

                    451

 

                      —

Amortization of debt discount and debt issuance costs

                    150

 

                    107

 

                    369

 

                    249

Gain on change in fair value of embedded derivative

                  (160)

 

                      —

 

                  (396)

 

                      —

Deferred income taxes

                  (308)

 

               (1,149)

 

                  (308)

 

               (1,037)

Loss on revaluation of debt

                    300

 

                      —

 

                    300

 

                      —

Loss on debt extinguishment

                    646

 

                      —

 

                    646

 

                      —

Debt issuance costs

                 2,389

 

                      —

 

                 2,389

 

                      —

Gain on non-marketable equity securities

                  (285)

 

                      —

 

                  (285)

 

                      —

Gain from dissolution of TDI entity

                      —

 

                      —

 

                      —

 

                  (665)

Gain on forgiveness of PPP loan

                      —

 

                      —

 

                      —

 

                  (612)

Changes in operating assets and liabilities, net of acquisition

 

 

 

 

 

 

 

Accounts receivable

               (2,196)

 

                  (441)

 

               (2,351)

 

               (1,100)

Inventories

                    182

 

                  (971)

 

               (1,330)

 

               (2,185)

Government subsidy receivable

               (1,416)

 

                      —

 

               (1,416)

 

                      —

Prepaid expenses and other assets

                      21

 

                 3,688

 

                    182

 

                 3,342

Other assets

                      81

 

                    (89)

 

                    (31)

 

                      28

Other receivables

                      —

 

                    (27)

 

                      —

 

                 1,086

Accounts payable

                 1,725

 

                 1,738

 

                    564

 

                 1,157

Accrued expenses and other liabilities

                 1,184

 

               (1,263)

 

                    793

 

               (1,189)

Deferred revenue

                 1,017

 

                    229

 

                 1,431

 

                    401

Other liabilities

                      64

 

                    172

 

                      13

 

                    159

Net cash used in operating activities

               (1,569)

 

               (1,289)

 

             (14,550)

 

             (10,759)

Cash flows from investing activities

 

 

 

 

 

 

 

Purchase of intangibles

                      —

 

                      —

 

                  (153)

 

                      —

Proceeds from licensing of IP—MEMSIC

                      —

 

                      —

 

                      —

 

                 9,686

Purchases of property and equipment

                  (241)

 

                  (882)

 

                  (600)

 

               (1,877)

Net cash provided by (used in) investing activities

                  (241)

 

                  (882)

 

                  (753)

 

                 7,809

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from term loans and revolving line of credit, net

                    (69)

 

                 8,298

 

                    547

 

                 8,298

Proceeds from FP Pre-Close Note

               25,000

 

                      —

 

               25,000

 

                      —

Payment of debt issuance costs

               (1,534)

 

                  (118)

 

               (1,534)

 

                  (118)

Repayment of loans using proceeds from Pre-Close Note

               (9,549)

 

                      —

 

               (9,549)

 

                      —

Proceeds from issuance of convertible notes

                      —

 

                      —

 

                 4,873

 

                      —

Principal payments of loans

                    (66)

 

               (6,108)

 

                  (346)

 

             (14,893)

Payment of deferred payout to Kinduct sellers

               (1,000)

 

                      —

 

               (1,000)

 

                      —

Payment of debt extinguishment costs

                  (470)

 

                      —

 

                  (470)

 

                      —

Payment of equity issuance costs in advance of offering

                  (990)

 

                      —

 

                  (990)

 

                      —

Proceeds from the exercise of stock options

                      16

 

                      33

 

                 1,659

 

                      58

Costs incurred on issuance of Series E preferred stock

                      —

 

                      —

 

                      —

 

                    (30)

Net cash provided by (used in) financing activities

               11,338

 

                 2,105

 

               18,190

 

               (6,685)

Effect of foreign exchange rate changes on cash and equivalents

                    924

 

                    159

 

                    281

 

                    (40)

Net increase (decrease) in cash and cash equivalents

               10,452

 

                      93

 

                 3,168

 

               (9,675)

Cash and cash equivalents

 

 

 

 

 

 

 

Beginning of period

                 3,882

 

               11,073

 

               11,166

 

               20,841

End of period

$             14,334

 

$             11,166

 

$             14,334

 

$             11,166

Supplemental disclosures of cash flow information

 

 

 

 

 

 

 

Cash paid for interest

$                  251

 

$                  158

 

$               1,051

 

$                  863

Cash paid for taxes, net of refunds

                    115

 

                    156

 

                    217

 

                    956

Supplemental disclosure of non-cash financing activity

 

 

 

 

 

 

 

Accretion of Series D-1 convertible preferred Stock

$                  677

 

$                  630

 

$               2,684

 

$               2,511

Issuance of convertible notes in exchange for Kinduct deferred payout

                      —

 

                      —

 

                 1,148

 

                      —

Distribution of equity shares to TDI NCI

                      —

 

                      —

 

                      —

 

                    499

Issuance of warrants to lender

                      —

 

                    225

 

                      18

 

                    225

Right-of-use assets obtained in exchange for operating lease liabilities

                      —

 

                      —

 

                 4,280

 

                      —

Debt and equity issuance costs financed through accrued expenses and other current liabilities

                 3,178

 

                      —

 

                 3,989

 

                      —

 

 

MOVELLA HOLDINGS INC.

Reconciliation of GAAP Net Loss Attributable to Common Shareholders to Non-GAAP Net Loss

(In thousands)

(Unaudited)

 

Three Months Ended
December 31, 2022

 

Twelve Months Ended

December 31, 2022

 

Net Loss

 

Net Loss Per Share

 

Net Loss

 

Net Loss Per Share

GAAP net loss attributable to common shareholders

$          (15,011)

 

$              (1.18)

 

$          (35,099)

 

$              (3.11)

Deemed dividends from accretion of Series D-1 Preferred Stock

                   677

 

                  0.05

 

                2,684

 

                  0.24

Stock-based compensation

                   569

 

                  0.04

 

                1,699

 

                  0.15

Loss on debt extinguishment

                   646

 

                  0.05

 

                   646

 

                  0.06

Debt issuance costs

                2,389

 

                  0.19

 

                2,389

 

                  0.21

Revaluation of debt

                   300

 

                  0.02

 

                   300

 

                  0.03

Impairment of intangible assets

                7,164

 

                  0.57

 

                7,164

 

                  0.63

Non-GAAP net loss

$            (3,266)

 

$              (0.26)

 

$          (20,217)

 

$              (1.79)

 

 

MOVELLA HOLDINGS INC.

Reconciliation of GAAP Cost of Revenues and Operating Costs and Expenses to Non-GAAP Cost of Revenues and Operating Costs and Expenses

Three Months Ended December 31, 2022

(In thousands)

(Unaudited)

 

 

 

Adjustments

 

 

 

GAAP

Financials

 

Stock-Based

Compensation

 

Amortization

of Intangibles

 

Impairment of

Intangibles

 

Non-

GAAP

Financials

Revenues

 

 

 

 

 

 

 

 

 

Product

$      10,068    

 

                    —

 

                    —

 

                    —

 

$       10,068    

Service

          2,049    

 

                    —

 

                    —

 

                    —

 

           2,049    

Total revenues

        12,117    

 

                    —

 

                    —

 

                    —

 

         12,117    

Cost of revenues

 

 

 

 

 

 

 

 

                         

Product

          4,509    

 

                    —

 

                 530

 

                    —

 

           3,979    

Service

          1,873    

 

                    —

 

                 633

 

                    —

 

           1,240    

Total cost of revenues

          6,382    

 

                    —

 

              1,163

 

                    —

 

           5,219    

Gross profit

 

 

 

 

 

 

 

 

                         

Product

          5,559    

 

 

 

 

 

 

 

           6,089    

Service

              176    

 

 

 

 

 

 

 

               809    

Total gross profit

          5,735    

 

 

 

 

 

 

 

           6,898    

Gross margin

 

 

 

 

 

 

 

 

 

Product

55.2 %

 

 

 

 

 

 

 

60.5 %

Service

8.6 %

 

 

 

 

 

 

 

39.5 %

Total gross margin

47.3 %

 

 

 

 

 

 

 

56.9 %

Operating expenses

 

 

 

 

 

 

 

 

 

Research and development

          2,471    

 

                 150

 

                    —

 

                    —

 

           2,321    

Sales and marketing

          2,445    

 

                 151

 

                 345

 

                    —

 

           1,949    

General and administrative

          4,467    

 

                 268

 

                    84

 

                    —

 

           4,115    

Impairment of intangible assets

          7,164    

 

                    —

 

                    —

 

              7,164

 

                 —    

Total operating expenses

$      16,547    

 

$               569

 

$               429

 

$            7,164

 

$         8,385    

Total

 

 

$               569

 

$            1,592

 

$            7,164

 

 

Loss from operations

$    (10,812)  

 

 

 

 

 

 

 

$       (1,487)   

 

 

MOVELLA HOLDINGS INC.

Reconciliation of GAAP Cost of Revenues and Operating Costs and Expenses to Non-GAAP Cost of Revenues and Operating Costs and Expenses

Twelve Months Ended December 31, 2022

(In thousands)

(Unaudited)

 

 

 

Adjustments

 

 

 

GAAP

Financials

 

Stock-Based

Compensation

 

Amortization

of Intangibles

 

Impairment of

Intangibles

 

Non-

GAAP

Financials

Revenues

 

 

 

 

 

 

 

 

 

Product

$     34,283    

 

                    —

 

                    —

 

                    —

 

$       34,283    

Service

          6,183    

 

                    —

 

                    —

 

                    —

 

            6,183    

Total revenues

        40,466    

 

                    —

 

                    —

 

                    —

 

         40,466    

Cost of revenues

 

 

 

 

 

 

 

 

                          

Product

        15,223    

 

                    —

 

              2,191

 

                    —

 

         13,032    

Service

          6,071    

 

                    —

 

              3,093

 

                    —

 

            2,978    

Total cost of revenues

        21,294    

 

                    —

 

              5,284

 

                    —

 

         16,010    

Gross profit

 

 

 

 

 

 

 

 

                          

Product

        19,060    

 

 

 

 

 

 

 

         21,251    

Service

             112    

 

 

 

 

 

 

 

            3,205    

Total gross profit

        19,172    

 

 

 

 

 

 

 

         24,456    

Gross margin

 

 

 

 

 

 

 

 

 

Product

55.6 %

 

 

 

 

 

 

 

62.0 %

Service

1.8 %

 

 

 

 

 

 

 

51.8 %

Total gross margin

47.4 %

 

 

 

 

 

 

 

60.4 %

Operating expenses

 

 

 

 

 

 

 

 

 

Research and development

        13,258    

 

                 398

 

                    —

 

                    —

 

         12,860    

Sales and marketing

        12,324    

 

                 468

 

              1,441

 

                    —

 

         10,415    

General and administrative

        14,697    

 

                 833

 

                 352

 

                    —

 

         13,512    

Impairment of intangible assets

          7,164    

 

                    —

 

                    —

 

              7,164

 

                 —    

Total operating expenses

$     47,443    

 

$            1,699

 

$            1,793

 

$            7,164

 

$       36,787    

Total

 

 

$            1,699

 

$            7,077

 

$            7,164

 

 

Loss from operations

$    (28,271)  

 

 

 

 

 

 

 

$     (12,331)  

 

 

MOVELLA HOLDINGS INC.

Reconciliation of GAAP Net Loss Attributable to Common Shareholders to Adjusted EBITDA

(In thousands)

(Unaudited)

 

Three Months Ended
December 31, 2022

 

Twelve Months Ended
December 31, 2022

GAAP net loss attributable to common shareholders

$                  (15,011)

 

$                    (35,099)

Deemed dividends from accretion of Series D-1 Preferred Stock

                            677

 

                           2,684

Interest expense, net

                            524

 

                           2,167

Income tax benefit

                            (24)

 

                            (113)

Depreciation and amortization

                        1,806

 

                           7,919

Stock-based compensation

                            569

 

                           1,699

Impairment of intangible assets

                        7,164

 

                           7,164

Loss on debt extinguishment

                            646

 

                              646

Debt issuance costs

                        2,389

 

                           2,389

Revaluation of debt

                            300

 

                              300

Other expenses (income), net

                          (251)

 

                            (613)

Adjusted EBITDA

$                    (1,211)

 

$                    (10,857)