What changed in this filing

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Item 1. Financial Statements

2023-08-10 compared with 2023-05-11 · 179 added, 94 removed, 420 unchanged (39% of the section changed)

30 unchanged sentences

shares issued and outstanding :

51,912,143 as of April 1, 2023 and 51,911,905 as of December 31, 2022

94,162,090 as of July 1, 2023 and 51,911,905 as of December 31, 2022

Class B common stock:

2 unchanged sentences

shares issued and outstanding :

750,000,000 as of April 1, 2023 and as of December 31, 2022

711,500,000 as of July 1, 2023 and 750,000,000 as of December 31, 2022

Additional paid-in capital

6 unchanged sentences

Three months ended

Six months ended

dollars in millions, except per share amounts

6 unchanged sentences

Interest income with related party

Interest expense with related party

Other financial income (expense), net

18 unchanged sentences

Three Months Ended

Balance as of December 25, 2021

Balance as of April 1, 2023

Net income (loss)

Tax sharing agreement with Parent

Share-based compensation expense

Recharge to Parent for Share-based compensation

Issuance of common stock under employee share-based compensation plans

Secondary offering

Balance as of July 1, 2023

Balance as of April 2, 2022

Net income (loss)

Other comprehensive income (loss), net

Tax sharing agreement with Parent

Net transfer from (to) Parent

Balance as of April 2, 2022

Dividend Note with related party

Dividend distribution

Equity transaction in connection with the legal purchase of Moovit entities

Balance as of July 2, 2022

Six Months Ended

Balance as of December 31, 2022

1 unchanged sentence

Other comprehensive income (loss), net

Tax sharing agreement with Parent

Share-based compensation expense

Recharge to Parent for Share-based compensation

Balance as of April 1, 2023

Issuance of common stock under employee share-based compensation plans

Secondary offering

Balance as of July 1, 2023

Balance as of December 25, 2021

Net income (loss)

Other comprehensive income (loss), net

Equity transaction in connection with the legal purchase of Moovit entities

Dividend Note with related party

Dividend distribution

Tax sharing agreement with Parent

Net transfer from (to) Parent

Balance as of July 2, 2022

* Rounding of Class A and Class B share amounts due to Secondary offering.

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

1 unchanged sentence

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended

Six months ended

dollars in millions

7 unchanged sentences

Deferred income taxes

Interest on Dividend Note to related party, net

Interest with related party, net

12 unchanged sentences

Repayment of loan due from related party

Issuance of loan to related party

Net cash provided by (used in) investing activities

1 unchanged sentence

Net transfers from Parent

Dividend paid

Share-based compensation recharge

8 unchanged sentences

Non-cash share based compensation recharge

Unpaid offering costs

Tax sharing agreement with Parent

Dividend Note with related party

Equity transaction

Supplemental cash flow information:

Cash received (paid) for income taxes, net of refunds

Interest received from related party

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

11 unchanged sentences

and its subsidiaries (“Moovit”) and certain Intel employees mainly in research and development (the “Intel Aligned Groups”).

The Mobileye IPO

In December 2021, Intel announced plans to pursue an initial public offering of the Mobileye Group.

8 unchanged sentences

Prior to the completion of the Mobileye IPO, we were a wholly-owned business of Intel Corporation.

Upon the closing of the Mobileye IPO (after giving effect to the exercise of the underwriters’ over-allotment option), Intel continues to directly or indirectly hold all of the Class B common stock of Mobileye, which represents approximately 99.3 % of the voting power of our common stock.

Upon completion of the Mobileye IPO, we completed the legal entity reorganization (“Reorganization”) of the operations comprising the Mobileye Group business so that they are all under the single parent entity, Mobileye Global Inc., and the filing and effectiveness of our amended and restated certificate of incorporation.

The Reorganization was accomplished through a series of transactions and agreements with Intel, including the legal purchase of 100 % of the issued and outstanding equity interests of the Moovit entities from Intel.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Secondary Offering

On June 7, 2023, the Company announced the pricing of a public secondary offering of 38,500,000 shares of its Class A common stock (which shares were received upon the conversion of 38,500,000 shares of Class B common stock into Class A common stock) by Intel at a public offering price of $ 42.00 per share, which closed on June 12, 2023 (the “Secondary Offering”).

The Company did not receive any proceeds from this offering.

The Company paid the costs associated with the registration of shares in connection with the Secondary Offering in the amount of $ 1 million, other than underwriting discounts, fees and commissions.

These costs were expensed as incurred within general and administrative expenses.

Upon the completion of the Secondary Offering, Intel continues to directly or indirectly hold all of the Class B common stock of Mobileye, which represents approximately 88.3 % of our outstanding common stock and 98.7 % of the voting power of our common stock.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

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GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Certain information and footnote disclosures normally included in the financial statements prepared in accordance with U.S.

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The additional week in fiscal year 2022 was added in the first quarter, which consisted of 14 weeks.

The results of operations for the three months ended April 1, 2023 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2023.

The results of operations for the three and six months ended July 1, 2023 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2023.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 31, 2022.

6 unchanged sentences

Following the completion of the Mobileye IPO, the condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 31, 2022.

7 unchanged sentences

The most significant estimates and assumptions relate to useful lives of intangible assets, impairment assessment of goodwill and income taxes.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Cash, cash equivalents and restricted cash

1 unchanged sentence

dollars in millions

April 1, 2023

December 31, 2022

4 unchanged sentences

Fair value measurement

The Company measures its investment in short term deposits classified as cash equivalents at fair value on a recurring basis.

The carrying value of short term deposits classified as cash equivalents approximates their fair value due to the short maturity of these items.

The Company’s investment in money market funds is measured at fair value and consists of financial assets for which quoted prices are available in an active market.

Interest income related to money market funds for the three months ended April 1, 2023, amounted to $ 8 million.

Interest income related to money market funds for the three and six months ended July 1, 2023 amounted to $ 12 million and $ 20 million, respectively.

The carrying amounts of trade accounts receivable and accounts payable approximate fair value because of their generally short maturities.

5 unchanged sentences

All intellectual property generated from these arrangements is exclusively owned by the Company.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Participation in expenses for research and development projects are recognized on the basis of the costs incurred and are netted against research and development expenses in the condensed consolidated statements of operations and comprehensive income (loss).

Research and development reimbursements of $ 17 million and $ 14 million were offset against research and development costs in the three months ended April 1, 2023 and April 2, 2022, respectively.

Research and development reimbursements of $ 16 million, and $ 11 million were offset against research and development costs in the three months ended July 1, 2023 and July 2, 2022, respectively;

and $ 33 million and $ 25 million were offset in the six months ended July 1, 2023 and July 2, 2022, respectively.

Derivatives and hedging

Beginning in 2021, as part of Intel’s corporate hedging program, Intel hedges forecasted cash flows denominated in Israeli Shekels (“ILS”) related to the Company.

Beginning in 2021, as part of Intel’s corporate hedging program, Intel hedges forecasted cash flows denominated in Israel Shekels (“ILS”) related to the Company.

ILS is the largest operating expense currency of the Company.

1 unchanged sentence

Derivative gains and losses attributed to these condensed consolidated financial statements are recorded under accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects the statement of operations.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the fourth quarter of 2022, the Company de-designated its remaining cash flow hedges for forecasted operating expenses denominated in ILS.

1 unchanged sentence

Any subsequent changes in the fair value of the outstanding derivative instruments after the de-designation and termination of hedge accounting were immediately reflected in operating expenses.

As of April 1, 2023, there are no outstanding hedging instruments and all of the related accumulated other comprehensive income (loss) was reclassified into the statement of operations and comprehensive income (loss).

As of July 1, 2023, there are no outstanding hedging instruments and all of the related accumulated other comprehensive income (loss) was reclassified into the statement of operations and comprehensive income (loss).

The notional amount and fair value of derivatives outstanding at Intel on behalf of Mobileye were:

dollars in millions

April 1, 2023

December 31, 2022

3 unchanged sentences

Three Months Ended

Six Months Ended

dollars in millions

April 1, 2023

April 2, 2022

Other comprehensive income (loss) before reclassifications

1 unchanged sentence

Other comprehensive income (loss), net

* Less than $ 1 million

The provision for income tax consists of income taxes in the various jurisdictions where the Company is subject to taxation, primarily the United States and Israel.

2 unchanged sentences

The overall effective tax rate is influenced by valuation allowances on tax assets for which no benefit can be recognized due to the Company’s recent history of pretax losses sustained.

Tax jurisdictions with forecasted pretax losses for the year for which no benefit can be recognized are excluded from the calculation of the worldwide estimated annual effective tax rate, and any associated tax expense or benefit for those jurisdictions is recorded separately.

Tax jurisdictions with forecasted pretax

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

losses for the year for which no benefit can be recognized are excluded from the calculation of the worldwide estimated annual effective tax rate, and any associated tax expense or benefit for those jurisdictions is recorded separately.

During the periods presented in the consolidated financial statements, certain components of the Company’s business operations were included in the consolidated U.S.

6 unchanged sentences

Such tax attributes may not be benefited in the same period as the Company’s Parent on a consolidated tax return.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Loss contingencies

15 unchanged sentences

The Company establishes credit losses for accounts receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history from such customers, and the customers’ current ability to pay its obligation to the Company.

As of April 1, 2023 and December 31, 2022, the credit losses for accounts receivable were not material.

As of July 1, 2023 and December 31, 2022, the credit losses for accounts receivable were not material.

The Company writes off accounts receivable when they are deemed uncollectible.

For the three months ended April 1, 2023 and April 2, 2022, the charge-offs and recoveries in relation to the credit losses accounts were not material.

For the three and six months ended July 1, 2023 and July 2, 2022, the charge-offs and recoveries in relation to the credit losses accounts were not material.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Customer concentration risk

8 unchanged sentences

Any issues that occur and persist in connection with the manufacture, delivery, quality, or cost of the assembly and testing of inventory could have a material adverse effect on the Company’s business, results of operations and financial condition.

See below regarding a shortage in EyeQ® SoC that the Company has been experiencing during 2022 and may experience during 2023, including in components of our other products.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

See below regarding a shortage in EyeQ® SoCs that the Company experienced during 2022 and may experience in the future, including in ECUs for SuperVision™ and other components for our products.

Supply chain risk

During the fiscal year ended December 31, 2022, due to global supply chain constraints and shortage of semiconductors, the Company’s sole supplier was not able to meet demand of the Company for EyeQ® SoCs, causing a significant reduction in the Company’s inventory levels.

We may continue to experience a shortfall of EyeQ® SoCs and may experience a shortfall in components of our other products, which has already caused certain delays and may continue to cause further delays in our ability to fulfil customers’ orders.

Continued shortages and supply chain constraints in EyeQ® SoCs and in components of our other products, may impair the Company’s ability to meet its customers’ requirements in a timely manner and may adversely affect the Company’s business, results of operations and financial condition.

Moreover, to the extent that the global semiconductor shortage results in reduced production or production delays by automakers, those delays could result in reduced or delayed demand for the Company products.

In addition, issues relating to the COVID-19 pandemic have led to port congestion and intermittent supplier shutdowns and delays in the delivery of critical components, resulting in additional expenses to expedite delivery of critical parts.

Sustaining the Company’s production trajectory will require the readiness and solvency of its suppliers and vendors, a stable and motivated production workforce and ongoing government cooperation, including for travel and visa allowances, which many governments have restricted in connection with efforts to address the COVID-19 pandemic.

Although we cannot fully predict the length and the severity of the impact these pressures will have on a long-term basis, we do not anticipate that our current supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity.

We may experience a shortfall of EyeQ® SoCs, ECUs for SuperVision™ and other components for our products.

The reoccurrence of shortages and supply chain constraints in EyeQ® SoCs and ECUs for SuperVision™ and in components of our other products, may impair the Company’s ability to meet its customers’ requirements in a timely manner and may adversely affect the Company’s business, results of operations and financial condition.

Moreover, to the extent that a global semiconductor shortage results in reduced production or production delays by automakers, those delays could result in reduced or delayed demand for the Company’s products.

In addition, issues relating to the COVID-19 pandemic led to port congestion and intermittent supplier shutdowns and delays in the delivery of critical components, which resulted in additional expenses to expedite delivery of critical parts.

Sustaining the Company’s production trajectory requires the readiness and solvency of its suppliers and vendors, a stable and motivated production workforce and ongoing government cooperation, including for travel and visa allowances, which governments may restrict.

Although we cannot fully predict the length and the severity of the impact these pressures would have on a long-term basis, we do not anticipate that short-term supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity.

NOTE 3 - OTHER FINANCIAL STATEMENT DETAILS

dollars in millions

April 1, 2023

December 31, 2022

Raw materials

Work in process

Finished goods

Total inventories

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Inventory write-downs and write-offs were not material for the periods presented in these condensed consolidated financial statements.

1 unchanged sentence

dollars in millions

April 1, 2023

December 31, 2022

6 unchanged sentences

Total property and equipment, net

Depreciation expenses totaled $ 7 million and $ 5 million for the three months ended April 1, 2023 and April 2, 2022, respectively.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Depreciation expenses totaled $ 8 million and $ 5 million for the three months ended July 1, 2023 and July 2, 2022, respectively;

and $ 15 million and $ 10 million for the six months ended July 1, 2023 and July 2, 2022, respectively.

NOTE 4 - EQUITY

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Restricted Stock Units

The RSUs activity for the three months ended April 1, 2023 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

The RSUs activity for the six months ended July 1, 2023 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

Weighted average grant

2 unchanged sentences

Outstanding as of December 31, 2022

Outstanding as of July 1, 2023

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The RSUs activity for the three months ended July 1, 2023 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

Weighted average grant

Number of RSUs

date fair value

Outstanding as of April 1, 2023

* Less than 1000

As of April 1, 2023, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $ 180 million, which is expected to be recognized as expense over a weighted-average period of 1.5 years.

Outstanding as of July 1, 2023

As of July 1, 2023, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $ 169 million, which is expected to be recognized as expense over a weighted-average period of 2.4 years.

Prior to the Mobileye IPO, since 2017, employees of the Company had been incentivized and rewarded through the grant of Intel equity awards under Intel’s equity incentive plan which contains only a service condition.

The equity awards granted generally vest over the course of three years from the grant date.

Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of April 1, 2023 were as follows:

Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of July 1, 2023 were as follows:

Weighted average

6 unchanged sentences

$ 22.4 - 26.9

The option activity for the six months ended July 1, 2023 for options granted to the Company’s employees for Intel’s common stock was as follows:

Weighted average

contractual Life

exercise price

dollars in millions

Options outstanding as of December 31, 2022

Options outstanding as of July 1, 2023

Options exercisable as of July 1, 2023

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The options activity for the three months ended April 1, 2023 for options granted to the Company’s employees for Intel’s common stock was as follows:

The option activity for the three months ended July 1, 2023 for options granted to the Company’s employees for Intel’s common stock was as follows:

Weighted average

Number of options

contractual Life

intrinsic value(1)

exercise price

dollars in millions

Options outstanding as of December 31, 2022

Options outstanding as of April 1, 2023

Options exercisable as of April 1, 2023

(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of Intel’s ordinary shares.

On April 1, 2023, the share price was $ 32.7 .

Options outstanding as of July 1, 2023

Options exercisable as of July 1, 2023

(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of Intel’s ordinary share.

On July 1, 2023, Intel’s ordinary share price was $ 33.4 .

This represents the potential pre-tax amount receivable by the option holders had all option holders exercised their options as of such date.

(2) The remaining options expected to vest as of April 1, 2023 are 10.5 thousand options with an average weighted exercise price of $ 21.6 .

The RSUs activity for the three months ended April 1, 2023 for RSUs granted to the Company’s employees for Intel’s common stock was as follows:

(2) The remaining options expected to vest as of July 1, 2023 are 7 thousand options with an average weighted exercise price of $ 21.6 .

The RSUs activity for the six months ended July 1, 2023 for RSUs granted to the Company’s employees for Intel’s common stock was as follows:

Weighted average

2 unchanged sentences

Outstanding as of December 31, 2022

Outstanding as of July 1, 2023

The RSUs activity for the three months ended July 1, 2023 for RSUs granted to the Company’s employees for Intel’s common stock was as follows:

Weighted average

Number of RSUs

grant date fair value

Outstanding as of April 1, 2023

Outstanding as of July 1, 2023

Unrecognized expenses

As of April 1, 2023, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $ 165 million, which will be recognized over a weighted average period of 0.9 years.

As of July 1, 2023, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $ 137 million, which will be recognized over a weighted average period of 1.4 years.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Share-based compensation expense summary (for both Mobileye and Intel Plans)

1 unchanged sentence

Three months ended

Six months ended

dollars in millions

April 1, 2023

April 2, 2022

Cost of revenue

3 unchanged sentences

Total share-based compensation

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 - EARNINGS (LOSS) PER SHARE

2 unchanged sentences

Concurrently, we issued to Intel an additional 749,999,900 shares of our Class B common stock pursuant to an agreement with Intel.

Accordingly, as of the completion of the Mobileye IPO, we have 750,000,000 Class B shares, all held by Intel.

Accordingly, as of the completion of the Mobileye IPO, we had 750,000,000 Class B shares, all held by Intel.

Per ASC 260-10-55-12, this share amount is being retroactively utilized for the calculation of basic and diluted earnings (loss) per share (“EPS”) for all periods presented.

3 unchanged sentences

In accordance with ASC 260, the Class A shares issued in connection with the Mobileye IPO are included in earnings (loss) per share calculations for periods subsequent to the closing of the Mobileye IPO and are not included in the earnings (loss) per share calculations for periods prior to the closing of the Mobileye IPO.

For the three months ended April 1, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 7.1 million potential common shares, based on treasury stock method, related to restricted stock units granted under the 2022 Plan to the Company’s employees, as the effect of their inclusion would have been anti-dilutive.

On June 12, 2023, we completed the Secondary Offering, pursuant to which 38,500,000 shares of Class B common stock held by Intel were converted into an equal number of shares of Class A common stock.

Accordingly, as of July 1, 2023, we have 711,500,000 Class B shares, all held by Intel, and 94,162,090 Class A shares, both of which are utilized for the calculation of basic and diluted EPS.

The outstanding Class A shares also include shares issued upon vesting of outstanding RSUs, see note 4.

For the three and six months ended July 1, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 6.2 million and 6.7 million potential common shares, respectively, based on the treasury stock method, related to restricted stock units granted under the 2022 Plan to the Company’s employees, as the effect of their inclusion would have been anti-dilutive.

The following table summarizes the calculation of basic earnings (loss) per share for the periods presented:

Three months ended

Six months ended

In millions, except per share amounts

3 unchanged sentences

Basic and diluted

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 - INCOME TAXES

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Any differences between taxes currently payable to the Company’s Parent under the Tax Sharing Agreement and the current tax provision computed on a separate return basis, is reflected as adjustments to additional paid-in capital (see also Note 2).

The adjustment to additional paid-in capital for the three months ended April 1, 2023 was an aggregate decrease of $ 5 million because amounts payable under the Tax Sharing Agreement in respect of the three-month period exceeded amounts calculated under the separate return method.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The tax expense for the three months ended April 1, 2023 and April 2, 2022, was unfavorably impacted by a valuation allowance for certain jurisdictions.

A withholding tax expense of $ 14 million related to a dividend distribution between entities within the Mobileye Group was recorded in the three months ended April 2, 2022.

The adjustment to additional paid-in capital for the three and six months ended July 1, 2023 was an increase of $ 5 million and $ 0 million, respectively, based on estimates of forecasted 2023 US taxes payable under the separate return method for those periods.

The adjustment to additional paid-in capital for the three and six months ended July 2, 2022 was an aggregate decrease of $ 7 million, because amounts payable under the Tax Sharing Agreement in respect of the three and six months periods, exceeded the amounts calculated under the separate return method.

The tax expense for the three and six months ended July 1, 2023 and July 2, 2022, was unfavorably impacted by a valuation allowance for certain jurisdictions.

A withholding tax expense of $ 14 million related to a dividend distribution between entities within the Mobileye Group was recorded in the six months ended July 2, 2022.

As the Company has jurisdictions that have sustained recent losses based on the separate return method, a valuation allowance is required for deferred tax assets for which no benefit can be currently realized.

1 unchanged sentence

The Company has entered into a series of related party arrangements with Intel.

For further description of the arrangements refer to Note 9 of the notes to the consolidated financial statements for the year ended December 31, 2022.

For further description of the arrangements refer to Note 9 of the notes to consolidated financial statement for the year ended December 31, 2022.

Stock Compensation Recharge Agreement

The Company entered into a stock compensation recharge agreement with Intel, which requires the Company to reimburse Intel for certain amounts relating to the value of share-based compensation provided to the Company’s employees for RSUs or stock options exercisable in Intel stock.

The liability associated with the stock compensation recharge agreement that is reflected on the condensed consolidated balance sheets, under related party payable was approximately $ 1 million and $ 1 million as of April 1, 2023 and December 31, 2022, respectively.

The reimbursement amounts recorded as an adjustment to additional paid-in capital (and to parent net investment prior to the Mobileye IPO) in the condensed consolidated statement of changes in equity were $ 4 million and $ 29 million for the three months ended April 1, 2023 and April 2, 2022, respectively.

The liability associated with the stock compensation recharge agreement that is reflected on the condensed consolidated balance sheets, under related party payable was approximately $ 10 million and $ 1 million as of July 1, 2023 and December 31, 2022, respectively.

The reimbursement amounts recorded as an adjustment to additional paid-in capital (and to parent net investment prior to the Mobileye IPO) in the condensed consolidated statement of changes in equity were $ 18 million and $ 11 million for the three months ended July 1, 2023 and July 2, 2022, respectively and $ 22 million and $ 40 million for the six months ended July 1, 2023 and July 2, 2022, respectively.

Lease agreements

1 unchanged sentence

The costs are included in the condensed consolidated statements of operations and comprehensive income (loss) primarily on a specific and direct attribution basis.

The leasing costs for the three months ended April 1, 2023 and April 2, 2022, were $ 1.3 million and $ 0.4 million, respectively.

The leasing costs for the three months ended July 1, 2023 and July 2, 2022, were $ 1.1 million and $ 0.3 million, respectively and $ 2.4 million and $ 0.7 million for the six months ended July 1, 2023 and July 2, 2022, respectively.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Other services to a related party

The Company reimbursed its Chief Executive Officer for reasonable travel related expenses incurred while conducting business on behalf of the Company.

Travel related reimbursements totaled $ 0.7 million and zero for three months ended April 1, 2023 and April 2, 2022, respectively.

Travel related reimbursements totaled $ 0.5 million and $ 0.3 million for the three months ended July 1, 2023 and July 2, 2022, respectively and $ 1.2 million and $ 0.3 million for the six months ended July 1, 2023 and July 2, 2022, respectively.

Administrative Services Agreement

1 unchanged sentence

The Company pays fees to Intel for the services rendered based on pricing per service agreed between the Company and Intel.

The costs incurred under this agreement for the three months ended April 1, 2023 were $ 0.4 million.

The costs incurred under this agreement for the three and six months ended July 1, 2023 were $ 0.8 million and $ 1.2 million, respectively.

Technology and Services Agreement

2 unchanged sentences

Pursuant to the Technology and Services Agreement, the Company and Intel will agree to statements of work with additional terms for Technology Projects.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The amount incurred under this agreement for the three months ended April 1, 2023 was $ 1 million.

The amount incurred under this agreement for the three and six months ended July 1, 2023 were $ 1.4 million and $ 2.4 million, respectively.

LiDAR Product Collaboration Agreement

4 unchanged sentences

In addition, the agreement also includes a profit-sharing model under which Mobileye will pay Intel a share of the gross profit for each LiDAR sensor system or components thereof, based on Intel technology, sold by Mobileye.

There were no amounts received or receivable from Intel under this agreement for the three months ended April 1, 2023.

There were no amounts received or receivable from Intel under this agreement for the three and six months ended July 1, 2023.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Tax Sharing Agreement

The Tax Sharing Agreement establishes the respective rights, responsibilities and obligations of the Company and Intel after the completion of the Mobileye IPO with respect to tax matters, including the amount of cash the Company will pay to Intel for its share of the tax liability owed on the consolidated filings in which the Company or any of the Company’s subsidiaries are included, audit or other tax proceedings.

As of April 1, 2023 and December 31, 2022, the related party payable to Intel, pursuant to the Tax Sharing Agreement, was $ 39 million and $ 34 million, respectively.

As of July 1, 2023 and December 31, 2022, the related party payable to Intel, pursuant to the Tax Sharing Agreement, was $ 34 million.

NOTE 8 - IDENTIFIED INTANGIBLE ASSETS

dollars in millions

April 1, 2023

December 31, 2022

3 unchanged sentences

Three months ended

Six months ended

dollars in millions

2 unchanged sentences

Total amortization expenses

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company expects future amortization expenses for the next five years and thereafter to be as follows:

dollars in millions

Remainder of 2023

Future amortization expenses

13 unchanged sentences

The following are segment results for each period as follows:

Three months ended April 1, 2023

Three months ended July 1, 2023

dollars in millions

8 unchanged sentences

Depreciation of property and equipment

Three months ended April 2, 2022

Three months ended July 2, 2022

dollars in millions

4 unchanged sentences

Segment performance

Interest income (expense) with related party

Interest income (expense) with related party, net

Other financial income (expense), net

Income before taxes on income

Share-based compensation

Depreciation of property and equipment

Six months ended July 1, 2023

dollars in millions

Cost of revenues

Research and development, net

Sales and marketing

General and administrative

Segment performance

Other financial income (expense), net

Loss before taxes on income

1 unchanged sentence

Depreciation of property and equipment

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Six months ended July 2, 2022

dollars in millions

Cost of revenues

Research and development, net

Sales and marketing

General and administrative

Segment performance

Interest income (expense) with related party, net

Other financial income (expense), net

Loss before taxes on income

Share-based compensation

Depreciation of property and equipment

Total revenues based on the country that the product was shipped to were as follows:

Three months ended

Six months ended

dollars in millions

2 unchanged sentences

Rest of World

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

We generate the majority of our revenue from the sale of our EyeQ® SoCs to OEMs through sales to Tier 1 automotive suppliers.

EyeQ® SoC sales represented approximately 88 % and 92 % of our revenue for each of the three months ended April 1, 2023 and April 2, 2022, respectively.

EyeQ® SoC sales represented approximately 92 % and 92 % of our revenue for each of the three months ended July 1, 2023 and July 2, 2022, respectively and 90 % and 92 % of our revenue for each of the six months ended July 1, 2023 and July 2, 2022, respectively.

Major Customers

1 unchanged sentence

Three months ended

Six months ended

Percent of total revenues:

*Less than 10%

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Accounts receivable balances of major customers that amount to 10% or more of total accounts receivable balance:

Percent of total accounts receivables balance:

*Less than 10%

NOTE 10 - SUBSEQUENT EVENTS

In April 2023, the Company’s compensation committee approved the issuance of restricted stock units to be issued under our 2022 Equity Incentive Plan.

In July 2023, the Company’s compensation committee approved the issuance of restricted stock units to be issued under our 2022 Equity Incentive Plan.

The total aggregate fair value of RSUs granted was $ 223.4 million, which consisted of 5,524 thousand RSUs, which will vest over a service period of three years.

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