What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-12-09 compared with 2022-09-08 · 143 added, 106 removed, 369 unchanged (40% of the section changed)

28 unchanged sentences

Shareholders' equity:

Preference shares, $ 0.00045 par value per share, 20,000,000 shares authorized and no shares issued and outstanding at July 31, 2022 and January 31, 2022, respectively

Preference shares, $ 0.00045 par value per share, 20,000,000 shares authorized and no shares issued and outstanding at October 31, 2022 and January 31, 2022, respectively

Ordinary shares, $ 0.00045 par value per share, 200,000,000 shares authorized;

38,406,451 and 37,302,818 shares issued and outstanding at July 31, 2022 and January 31, 2022, respectively

38,746,179 and 37,302,818 shares issued and outstanding at October 31, 2022 and January 31, 2022, respectively

Additional paid-in capital

7 unchanged sentences

(in thousands, except share and per share data)

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

Cost of revenue

4 unchanged sentences

Loss from operations

Other income (expense), net

Other income, net

Loss before income taxes

Provision for income taxes

Net loss per share attributable to ordinary shareholders:

Weighted-average shares used to compute net loss per share attributable to ordinary shareholders:

Provision (benefit) for income taxes

Net income (loss)

Net income (loss) per share attributable to ordinary shareholders:

Weighted-average shares used to compute net income (loss) per share attributable to ordinary shareholders:

See accompanying notes to condensed consolidated financial statements.

AMBARELLA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited, in thousands)

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

Net income (loss)

Other comprehensive loss, net of tax:

Net unrealized losses on investments

Net change and reclassification of unrealized losses on investments

Other comprehensive loss, net of tax

Comprehensive loss

Comprehensive income (loss)

See accompanying notes to condensed consolidated financial statements.

12 unchanged sentences

Stock-based compensation expense

Net unrealized losses on investments - net of tax

Other comprehensive loss - net of tax

Balance--July 31, 2022

Issuance of shares through employee equity plans

Issuance of shares through employee stock purchase plan

Stock-based compensation expense

Other comprehensive loss - net of tax

Balance--October 31, 2022

Ordinary Shares

5 unchanged sentences

Stock-based compensation expense

Net unrealized losses on investments - net of tax

Other comprehensive loss - net of tax

Balance--April 30, 2021

1 unchanged sentence

Stock-based compensation expense

Net unrealized losses on investments - net of tax

Other comprehensive loss - net of tax

Balance--July 31, 2021

Issuance of shares through employee equity plans

Issuance of shares through employee stock purchase plan

Stock-based compensation expense

Other comprehensive loss - net of tax

Balance--October 31, 2021

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

(unaudited, in thousands)

Six Months Ended July 31,

Nine Months Ended October 31,

Cash flows from operating activities:

18 unchanged sentences

Purchase of investments

Escrow claim associated with business acquisition

Sales of investments

1 unchanged sentence

Purchase of tangible and intangible assets

Escrow claim associated with business acquisition

Net cash provided by (used in) investing activities

3 unchanged sentences

Net cash provided by financing activities

Net increase in cash, cash equivalents and restricted cash

Net increase (decrease) in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

15 unchanged sentences

The Company is currently addressing a broad range of human and computer vision applications, including video security, advanced driver assistance systems (ADAS), electronic mirrors, drive recorders, driver/cabin monitoring systems, autonomous driving, and industrial and robotic applications.

The Company sells its solutions to leading original design manufacturers, or ODMs, and original equipment manufacturers, or OEMs, globally.

The Company sells its solutions to leading original equipment manufacturers, or OEMs, who include the Company’s SoCs in their products, and original design manufacturers, or ODMs, who include the Company’s SoCs in the products that they supply to OEMs, globally.

Basis of Presentation

23 unchanged sentences

The Company has not experienced any losses on deposits of its cash.

In order to limit the exposure of each investment, the cash equivalents and marketable debt securities consist primarily of money market funds and debt securities of corporations which management assesses to be highly liquid.

In order to limit the exposure of each investment, the cash equivalents and marketable debt securities consist of money market funds, commercial paper, debt securities of corporations or corporate bonds, asset-backed securities and U.S.

government securities which management assesses to be highly liquid.

The Company does not hold or issue financial instruments for trading purposes.

3 unchanged sentences

Amounts included in restricted cash represent those required to be set aside to secure certain transactions in a foreign entity.

As of July 31, 2022 and January 31, 2022, restricted cash was immaterial, respectively .

As of October 31, 2022 and January 31, 2022, restricted cash was immaterial, respectively.

The following table presents cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets, and the totals are presented on the condensed consolidated statements of cash flows:

5 unchanged sentences

Financial Instruments and Fair Value

In July 2022, the Company invested $100.0 million of cash in money market funds and debt securities of corporations after a full liquidation of its debt security investments in fiscal year 2022.

In the second quarter of fiscal year 2023, the Company resumed its investments in money market funds and debt securities after a full liquidation of its investments in fiscal year 2022 to finance the acquisition of Oculii Corporation, or Oculii.

The debt security investment portfolio consists of commercial paper, debt securities of corporations or corporate bonds, asset-backed securities and U.S.

government securities.

All of the investments are denominated in United States dollars and reported at fair value as available-for-sale securities in the condensed consolidated balance sheets as follows:

As of July 31, 2022

As of October 31, 2022

Amortized Cost

3 unchanged sentences

Money market funds

Commercial paper

Corporate bonds

Asset-backed securities

government securities

Total cash equivalents and marketable debt securities

6 unchanged sentences

Total cash equivalents and marketable debt securities

As of July 31, 2022, there were no debt securities with unrealized losses for more than twelve months.

July 31, 2022

As of October 31, 2022, there were no debt securities with unrealized losses for more than twelve months.

October 31, 2022

January 31, 2022

3 unchanged sentences

Total cash equivalents and marketable debt securities

The contractual maturities of the investments at July 31, 2022 and January 31, 2022 were as follows:

July 31, 2022

The contractual maturities of the investments at October 31, 2022 and January 31, 2022 were as follows:

October 31, 2022

January 31, 2022

(in thousands)

Due within one year

Due within one to three years

Less than one year

Due in 1 - 5 years

Total cash equivalents and marketable debt securities

3 unchanged sentences

Measurement of Credit Losses on Financial Instruments, the Company estimates the expected losses at an individual security level whenever a security’s fair value is below its amortized cost basis using the discounted cash flow method.

The credit-related portion of the loss is recognized in other income (expense), net in the condensed consolidated statements of operations but is limited to the difference between the fair value and the amortized cost basis of the security, adjusted for accrued interest.

The credit-related portion of the loss is recognized in other income, net in the condensed consolidated statements of operations but is limited to the difference between the fair value and the amortized cost basis of the security, adjusted for accrued interest.

The non-credit-related portion of the loss is recognized in accumulated other comprehensive loss in the condensed consolidated balance sheets.

The credit-related losses were not material for the three and six months ended July 31, 2022, and 2021, respectively.

The credit-related losses were not material for the three and nine months ended October 31, 2022, and 2021, respectively.

Interest income, including amortization of premiums and accretion of discounts related to the investments, as well as realized gains and losses from sales of the investments are recorded in other income, net, in the condensed consolidated statements of operations.

For the three months ended October 31, 2022 and 2021, interest income and realized gains, net, was approximately $ 0.7 million and $ 0.7 million, respectively.

For the nine months ended October 31, 2022 and 2021, interest income and realized gains, net, were approximately $ 0.8 million and $ 1.7 million, respectively.

The following fair value hierarchy is applied for disclosure of the inputs used to measure fair value.

6 unchanged sentences

The fair value of the Company’s investments in other debt securities are obtained based on quoted prices for similar assets in active markets and are classified within Level 2.

The following tables present the fair value of the financial instruments measured on a recurring basis as of July 31, 2022 and January 31, 2022, respectively:

As of July 31, 2022

The following tables present the fair value of the financial instruments measured on a recurring basis as of October 31, 2022 and January 31, 2022, respectively:

As of October 31, 2022

(in thousands)

Money market funds

Commercial paper

Corporate bonds

Asset-backed securities

government securities

Total cash equivalents and marketable debt securities

3 unchanged sentences

Total cash equivalents and marketable debt securities

Inventories at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

Inventories at October 31, 2022 and January 31, 2022 consisted of the following:

October 31, 2022

January 31, 2022

3 unchanged sentences

Property and Equipment, Net

Depreciation expense was approximately $ 0.9 million and $ 0.6 million for the three months ended July 31, 2022 and 2021, respectively, and was approximately $ 1.8 million and $ 1.2 million for the six months ended July 31, 2022 and 2021, respectively.

Property and equipment at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

Depreciation expense was approximately $ 1.0 million and $ 0.7 million for the three months ended October 31, 2022 and 2021, respectively, and was approximately $ 2.8 million and $ 1.9 million for the nine months ended October 31, 2022 and 2021, respectively.

Property and equipment at October 31, 2022 and January 31, 2022 consisted of the following:

October 31, 2022

January 31, 2022

8 unchanged sentences

Intangible Assets, Net

As of July 31, 2022, intangible assets primarily consist of software licenses as well as developed technology, customer relationships and trade name that were acquired from business combinations.

As of October 31, 2022, intangible assets primarily consist of software licenses as well as developed technology, customer relationships and trade name that were acquired from business combinations.

The Company enters into certain software license agreements with third parties from time-to-time.

1 unchanged sentence

The licenses have been capitalized as intangible assets, and the corresponding future payments have been recorded as liabilities at net present value.

As of July 31, 2022, $ 4.0 million was recorded in accrued and other current liabilities and $ 0.6 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The components of intangible assets as of July 31, 2022 and January 31, 2022 were as follows :

As of July 31, 2022

As of October 31, 2022, $ 2.3 million was recorded in accrued and other current liabilities and $ 1.0 million was recorded in other long-term liabilities in the condensed consolidated balance sheets.

The components of intangible assets as of October 31, 2022 and January 31, 2022 were as follows :

As of October 31, 2022

As of January 31, 2022

10 unchanged sentences

Total intangible assets, net

During the six months ended July 31, 2022, there were approximately $ 8.9 million of software licenses purchased and approximately $ 0.4 million of software licenses retired.

The amortization expense associated with software licenses was approximately $

1.6 million and $ 1.5 million for the three months ended July 3 1 , 202 2 and 20 2 1 , respectively , and was approximately $ 3.2 million and $ 3.0 million for the six months ended July 31, 202 2 and 202 1 , respectively .

The amortization expense associated with acquisition-related intangible assets, including developed technology, customer relationships and trade name, was approximately $ 1.2 million for the three months ended July 31, 2022 and $ 2.4 million for the six months ended July 31, 2022.

There was no acquisition-related amortization expense for the three and six months ended July 31, 2021.

T he expected future amortization expense related to these intangible assets as of July 3 1 , 202 2 is as follows:

July 31, 2022

During the nine months ended October 31, 2022, there were approximately $ 10.0 million of software licenses purchased and approximately $ 0.9 million of software licenses retired.

The amortization expense associated with software licenses was approximately $ 2.0 million and $ 1.6 million for the three months ended October 31, 2022 and 2021, respectively, and was approximately $ 5.2 million and $ 4.6 million for the nine months ended October 31, 2022 and 2021, respectively.

The amortization expense associated with acquisition-related intangible assets, including developed technology, customer relationships and trade name, was approximately $ 1.2 million and $ 0.1 million for the three months ended October 31, 2022 and 2021, respectively, and was $ 3.6 million and $ 0.1 million for the nine months ended October 31, 2022 and 2021, respectively.

The expected future amortization expense related to these intangible assets as of October 31, 2022 is as follows:

October 31, 2022

(in thousands)

2 unchanged sentences

Intangible assets are tested for impairment at least annually, in the fourth fiscal quarter, or more frequently if events or changes in circumstances indicate that the assets may be impaired.

There were no intangible asset impairments for the three and six months ended July 31, 2022 and 2021, respectively.

There were no intangible asset impairments for the three and nine months ended October 31, 2022 and 2021, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

Accrued and other current liabilities at October 31, 2022 and January 31, 2022 consisted of the following:

October 31, 2022

January 31, 2022

10 unchanged sentences

For the lease extensions, the Company recorded an increase to the operating lease right-of-use (ROU) assets and corresponding operating lease liabilities of approximately $ 0.8 million in the condensed consolidated balance sheets.

Operating lease expense was approximately $ 0.9 million and $ 0.8 million for the three months ended July 31, 2022 and 2021, respectively, and was approximately $ 1.8 million and $ 1.6 million for the six months ended July 31, 2022 and 2021, respectively.

The Company's short-term leases and finance leases were not material as of July 31, 2022 and January 31, 2022, respectively .

For the three months ended October 31, 2022, the Company modified a lease liability for its Italy office lease and recorded a reduction to the ROU assets and corresponding operating lease liabilities of approximately $ 0.2 million in the condensed consolidated balance sheets.

Operating lease expense was approximately $ 1.0 million and $ 0.9 million for the three months ended October 31, 2022 and 2021, respectively, and was approximately $ 2.8 million and $ 2.5 million for the nine months ended October 31, 2022 and 2021, respectively.

The Company's short-term leases and finance leases were not material as of October 31, 2022 and January 31, 2022, respectively .

Supplemental cash flow information related to the operating leases is as follows:

Three Months Ended

Six Months Ended

July 31, 2022

Nine Months Ended

October 31, 2022

(in thousands)

1 unchanged sentence

Supplemental non-cash information related to lease liabilities arising from obtaining right-of-use assets

Leased assets obtained in exchange for operating lease liabilities arising from lease modifications

As of July 31, 2022, the weighted average remaining lease term is 3.09 years, and the weighted average discount rate is 3.57 percent.

Leased assets changes arising from lease modifications

As of October 31, 2022, the weighted average remaining lease term is 2.85 years, and the weighted average discount rate is 3.59 percent.

Future minimum lease payments for the lease liabilities are as follows :

July 31, 2022

October 31, 2022

(in thousands)

3 unchanged sentences

Other Long-Term Liabilities

Other long-term liabilities at July 31, 2022 and January 31, 2022 consisted of the following:

July 31, 2022

Other long-term liabilities at October 31, 2022 and January 31, 2022 consisted of the following:

October 31, 2022

January 31, 2022

8 unchanged sentences

After completion of the Company’s initial public offering in 2012, a total of 20,000,000 preference shares, with a $ 0.00045 par value per share, were authorized.

There were no preference shares issued and outstanding as of July 31, 2022 and January 31, 2022, respectively.

There were no preference shares issued and outstanding as of October 31, 2022 and January 31, 2022, respectively.

Ordinary shares

As of July 31, 2022 and January 31, 2022, a total of 200,000,000 ordinary shares were authorized.

As of October 31, 2022 and January 31, 2022, a total of 200,000,000 ordinary shares were authorized.

In the first quarter of fiscal year 2023, the Company added 466,285 ordinary shares to the ordinary shares reserved for issuance, pursuant to an “evergreen” provision contained in the Amended and Restated 2012 Employee Stock Purchase Plan, or ESPP.

Pursuant to such provision, for each fiscal year, the number of ordinary shares reserved for issuance under the ESPP is automatically increased by a number equal to the lesser of (i) 1,500,000 ordinary shares, (ii) one and one quarter percent ( 1.25 %) of the aggregate number of ordinary shares outstanding on February 1 st of each fiscal year, or (iii) an amount determined by the Company’s Board of Directors or a duly authorized committee of the Board of Directors.

As of July 31, 2022 and January 31, 2022, the following ordinary shares were reserved for future issuance under the Company’s equity plans and ESPP:

July 31, 2022

As of October 31, 2022 and January 31, 2022, the following ordinary shares were reserved for future issuance under the Company’s equity plans and ESPP:

October 31, 2022

January 31, 2022

4 unchanged sentences

On May 27, 2022 , the Company ’ s Board of Directors approved an extension of the current share repurchase program for an additional twelve months ending June 30, 2023 .

There were no ordinary shares repurchased in the six months ended July 31, 2022.

As of July 31, 2022, there was approximately $ 49.0 million available for repurchases under the current repurchase program through June 30, 2023.

There were no ordinary shares repurchased in the nine months ended October 31, 2022.

As of October 31, 2022, there was approximately $ 49.0 million available for repurchases under the current repurchase program through June 30, 2023.

Repurchases may be made from time-to-time through open market purchases, 10b5-1 plans or privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors.

3 unchanged sentences

The following table presents the classification of stock-based compensation for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

4 unchanged sentences

Total stock-based compensation

As of July 31, 2022, approximately $ 1.7 million of stock-based compensation expense was accrued and reflected under accrued and other current liabilities in the condensed consolidated balance sheets.

Total unrecognized compensation cost related to unvested stock options at July 31, 2022 was $ 21.7 million and is expected to be recognized over a weighted-average period of 2.20 years.

Total unrecognized compensation cost related to unvested restricted stock units at July 31, 2022 was $ 189.2 million and is expected to be recognized over a weighted-average period of 2.30 years.

As of October 31, 2022, approximately $ 2.4 million of stock-based compensation expense was accrued and reflected in accrued and other current liabilities in the condensed consolidated balance sheets.

Total unrecognized compensation cost related to unvested stock options at October 31, 2022 was $ 18.7 million and is expected to be recognized over a weighted-average period of 2.02 years.

Total unrecognized compensation cost related to unvested restricted stock units at October 31, 2022 was $ 213.7 million and is expected to be recognized over a weighted-average period of 2.59 years.

In April 2022, the Company’s Compensation Committee of the Board of Directors approved the acceleration of vesting of 35,703 shares of unvested equity awards associated with the departure of Mr.

Casey Eichler, who was the Company’s Chief Financial Officer until March 2022.

As a result, there was approximately $ 1.7 million of additional stock-based compensation expense, net related to the departure recognized in fiscal year 2023.

As a result, there was approximately $ 1.7 million of additional stock-based compensation expense, net recognized in fiscal year 2023.

The following table sets forth the weighted-average assumptions used to estimate the fair value of stock options and employee stock purchase plan awards for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

Stock Options:

13 unchanged sentences

Outstanding at January 31, 2022

Outstanding at July 31, 2022

Exercisable at July 31, 2022

Outstanding at October 31, 2022

Exercisable at October 31, 2022

The intrinsic value of options outstanding and exercisable is calculated based on the difference between the fair market value of the Company’s ordinary shares on the reporting date and the exercise price.

The closing price of the Company’s ordinary shares on July 29, 2022 was $ 86.55 , as reported by The NASDAQ Global Market.

The closing price of the Company’s ordinary shares on October 31, 2022 was $ 54.73 , as reported by The NASDAQ Global Market.

The intrinsic value of exercised options is calculated based on the difference between the fair market value of the Company’s ordinary shares on the exercise date and the exercise price.

1 unchanged sentence

Unvested at January 31, 2022

Unvested at July 31, 2022

As of July 31, 2022, the aggregate intrinsic value of unvested restricted stock units was $ 199.3 million.

Net Loss Per Ordinary Share

The following table sets forth the computation of basic and diluted loss per ordinary share for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Unvested at October 31, 2022

As of October 31, 2022, the aggregate intrinsic value of unvested restricted stock units was $ 154.0 million.

Net Income (Loss) Per Ordinary Share

The following table sets forth the computation of basic and diluted income (loss) per ordinary share for the periods indicated:

Three Months Ended

Nine Months Ended

(in thousands, except share and per share data)

Net income (loss)

Weighted-average ordinary shares - basic

Effect of potentially dilutive securities:

Employee stock options

Restricted stock units

Employee stock purchase plan

Weighted-average ordinary shares - diluted

Net loss per ordinary share:

The following weighted-average potentially dilutive securities were excluded from the computation of diluted loss per ordinary share as their effect would have been antidilutive:

Three Months Ended July 31,

Six Months Ended July 31,

Net income (loss) per ordinary share:

The following weighted-average potentially dilutive securities were excluded from the computation of diluted income (loss) per ordinary share as their effect would have been antidilutive:

Three Months Ended October 31,

Nine Months Ended October 31,

Options to purchase ordinary shares

2 unchanged sentences

The following table provides details of income taxes for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended October 31,

Nine Months Ended October 31,

(in thousands)

Loss before income taxes

Provision for income taxes

Provision (benefit) for income taxes

Effective tax rate

The Company recorded an income tax provision of $ 3.4 million and $ 1.4 million for the three months ended July 31, 2022 and 2021, and $ 3.8 million and $ 2.7 million for the six months ended July 31, 2022 and 2021, respectively.

The increase in income tax expense for the three and six months ended July 31, 2022 was primarily due to a decrease in the U.S.

federal research tax credit, a decrease in tax benefits from excess stock-based compensation deductions as well as an increase in non-deductible stock-based compensation, partially offset by a decrease in the proportion of profits generated in higher tax jurisdictions.

The Company recorded an income tax provision of $ 1.1 million and an income tax benefit $ 1.6 million for the three months ended October 31, 2022 and 2021, respectively.

The Company recorded an income tax provision of $ 5.0 million and $ 1.1 million for the nine months ended October 31, 2022 and 2021, respectively.

The increase in income tax expense for the three and nine months ended October 31, 2022 was primarily due to a decrease in the U.S.

federal research tax credit, a decrease in tax benefits from excess stock-based compensation deductions, and an increase in non-deductible stock-based compensation, partially offset by a decrease in the proportion of profits generated in higher tax jurisdictions.

The Company files federal and state income tax returns in the United States and in various foreign jurisdictions.

9 unchanged sentences

These assessments can require considerable estimates and judgments.

As of July 31, 2022, the gross amount of unrecognized tax benefits was approximately $ 31.3 million.

As of October 31, 2022, the gross amount of unrecognized tax benefits was approximately $ 31.5 million.

If the estimates of income tax liabilities prove to be less than the ultimate assessment, then a further charge to expense could be required.

1 unchanged sentence

The Company does not anticipate significant changes to its uncertain tax positions during the next twelve months.

The Inflation Reduction Act of 2022 (“IRA”) was enacted on August 16, 2022.

The IRA applies to tax years beginning after December 31, 2022 and introduces a 15 % minimum tax for corporations whose average annual adjusted financial statement income for any consecutive three-tax-year period preceding the tax year exceeds $ 1 billion.

The tax also applies to U.S.

members of a non-U.S.

parented group if the group satisfies the $ 1 billion threshold and the U.S.

members have adjusted financial statements income of $ 100 million or more.

It also introduced a 1 % excise tax on the fair market value of stock repurchases made by certain corporations after December 31, 2022 and several tax credits and incentives.

The Company does not expect a material impact to its financial statements from these new tax laws.

Commitments and Contingencies

4 unchanged sentences

These manufacturing purchase commitments typically provide the Company with flexibility to cancel, reschedule or adjust requirements based upon business needs but the Company may incur certain costs depending on the production stage of the products.

As of July 31, 2022 and January 31, 2022, total manufacturing purchase commitments were approximately $ 68.3 million and $ 71.5 million, respectively.

As of October 31, 2022 and January 31, 2022, total manufacturing purchase commitments were approximately $ 47.9 million and $ 71.5 million, respectively.

The Company also reviews and assesses the need for any expected loss liabilities on quarterly basis for all products that it does not expect to sell for which it has committed purchases from suppliers.

As of July 31, 2022, an approximately $ 1.9 million loss was recognized in the condensed consolidated balance sheets from adverse purchase commitments.

As of October 31, 2022, an approximately $ 2.5 million loss was recognized in the condensed consolidated balance sheets from adverse purchase commitments.

There were no material loss liabilities recorded in the condensed consolidated balance sheets from adverse purchase commitments as of January 31, 2022.

4 unchanged sentences

It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim.

The Company has no t made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of July 31, 2022 and January 31, 2022, respectively.

The Company has no t made payments under these obligations, and no liabilities have been recorded for these obligations in the condensed consolidated balance sheets as of October 31, 2022 and January 31, 2022, respectively.

Other Matters

8 unchanged sentences

The following table sets forth the Company’s revenue by geographic region based on bill-to location for the periods indicated:

Three Months Ended July 31,

Six Months Ended July 31,

Three Months Ended

Nine Months Ended

(in thousands)

2 unchanged sentences

Total revenue

As of July 31, 2022, substantially all of the Company’s property and equipment were located in the Asia Pacific region, United States and Europe with approximate net amounts of $ 5.3 million, $ 3.6 million and $ 1.6 million, respectively.

As of October 31, 2022, substantially all of the Company’s property and equipment were located in the Asia Pacific region, United States and Europe with approximate net amounts of $ 5.3 million, $ 3.9 million and $ 1.6 million, respectively.

Major Customers

For the three and six months ended July 31, 2022, the customers representing 10% or more of revenue and accounts receivable were WT and Chicony, which accounted for approximately 59.4 % and 12.9 % of total revenue for the three months ended July 31, 2022, respectively, and accounted for approximately 57.9 % and 12.1 % of total revenue for the six months ended July 31, 2022, respectively.

For the three and six months ended July 31, 2021, the customers representing 10% or more of revenue and accounts receivable were WT and Chicony, which accounted for approximately 61.6 % and 15.8 % of total revenue for the three months ended July 31, 2021, respectively, and accounted for approximately 62.4 % and 15.8 % of total revenue for the six months ended July 31, 2021, respectively.

Accounts receivable with WT and Chicony were approximately $ 16.2 million and $ 10.5 million, respectively, as of July 31, 2022.

For the three and nine months ended October 31, 2022, the customers representing 10% or more of revenue and accounts receivable were WT and Chicony, which accounted for approximately 61.6 % and 10.7 % of total revenue for the three months ended October 31, 2022, respectively, and accounted for approximately 59.1 % and 11.6 % of total revenue for the nine months ended October 31, 2022, respectively.

For the three and nine months ended October 31, 2021, the customers representing 10% or more of revenue and accounts receivable were WT and Chicony, which accounted for approximately 63.1 % and 13.4 % of total revenue for the three months ended October 31, 2021, respectively, and accounted for approximately 62.7 % and 14.9 % of total revenue for the nine months ended October 31, 2021, respectively.

Accounts receivable with WT and Chicony were approximately $ 25.4 million and $ 8.9 million, respectively, as of October 31, 2022.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements