What changed in this filing

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Item 1. Financial Statements

2024-08-07 compared with 2024-05-08 · 233 added, 97 removed, 410 unchanged (45% of the section changed)

25 unchanged sentences

Total non-current liabilities

Contingencies (see note 11)

TOTAL LIABILITIES

3 unchanged sentences

shares issued and outstanding :

94,731,407 as of March 30, 2024 and 94,652,348 as of December 30, 2023

97,736,898 as of June 29, 2024 and 94,652,348 as of December 30, 2023

Class B common stock:

2 unchanged sentences

shares issued and outstanding:

711,500,000 as of March 30, 2024 and December 30, 2023

711,500,000 as of June 29, 2024 and December 30, 2023

Additional paid-in capital

5 unchanged sentences

Three months ended

Six months ended

dollars in millions, except per share amounts

14 unchanged sentences

Net income (loss)

Other comprehensive income (loss), net of tax

Other comprehensive income (loss)

TOTAL COMPREHENSIVE INCOME (LOSS)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Accumulated Other

Comprehensive

2 unchanged sentences

Income (Loss)

(Accumulated Deficit)

Three Months Ended

Balance as of December 31, 2022

Balance as of March 30, 2024

Net income (loss)

Other comprehensive income (loss), net

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

Balance as of June 29, 2024

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

Six Months Ended

Balance as of December 30, 2023

2 unchanged sentences

Recharge to Parent for Share-based compensation

Balance as of March 30, 2024

Issuance of common stock under employee share-based compensation plans

Balance as of June 29, 2024

Balance as of December 31, 2022

Net income (loss)

Other comprehensive income (loss), net

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

*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

8 unchanged sentences

Interest with related party, net

(Gains) losses on equity and debt investments, net

Changes in operating assets and liabilities:

6 unchanged sentences

Decrease (increase) in other long term assets

Increase (decrease) in long-term liabilities

Net cash provided by operating activities

Increase (decrease) in other long term liabilities

Net cash provided by (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment

Net cash used in investing activities

Purchases of debt and equity investments

Net cash provided by (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Share-based compensation recharge

Net cash used in financing activities

Net cash provided by (used in) financing activities

Effect of foreign exchange rate changes on cash and cash equivalents

Increase in cash, cash equivalents and restricted cash

Increase (decrease) in cash, cash equivalents and restricted cash

Balance of cash, cash equivalents and restricted cash, at beginning of year

3 unchanged sentences

Non-cash share based compensation recharge

Tax sharing agreement with Parent

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.

4 unchanged sentences

(“Mobileye”, “the Company” or “we”) is a leader in the development and deployment of advanced driver assistance systems (“ADAS”) and autonomous driving technologies and solutions, aimed to provide the capabilities required for the future of autonomous driving, leveraging a comprehensive suite of purpose-built software and hardware technologies.

Intel Corporation (“Intel” or the “Parent”) directly or indirectly hold all of the Class B common stock of Mobileye, which as of March 30, 2024, represents approximately 88.3 % of our outstanding common stock and 98.7 % of the voting power of our common stock.

Intel Corporation (“Intel” or the “Parent”) directly or indirectly hold all of the Class B common stock of Mobileye, which as of June 29, 2024, represents approximately 87.9 % of our outstanding common stock and 98.6 % of the voting power of our common stock.

Operations in Israel

3 unchanged sentences

How long and how severe the current conflict in Gaza, Northern Israel or the broader region becomes is unknown at this time and any continued clash among Israel, Hamas, Hezbollah, Iran or other countries or militant groups in the region may escalate in the future into a greater regional conflict.

To date our operations and financial results have not been materially affected, although as of May 1, 2024 approximately 4 % of our employees have been called to reserve duty in the Israel Defense Forces.

To date our operations and financial results have not been materially affected, although as of July 31, 2024 approximately 3.6 % of our employees have been called to reserve duty in the Israel Defense Forces.

We expect that the current conflict in the Gaza Strip and the security escalation in Israel will not have a material impact on our business results in the short term.

6 unchanged sentences

The plan for winding down of the Aftermarket Solutions Unit includes a reduction in workforce of over 100 employees worldwide.

The affected employees will be entitled to additional termination costs in the amount of approximately $ 4 million, which was recognized as an expense in the three months ended March 30, 2024.

The affected employees are entitled to additional termination costs in the amount of approximately $ 4 million, which was recognized as an expense in the six months ended June 29, 2024.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

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fiscal year 2024 is also a 52 week fiscal year.

The results of operations for the three months ended March 30, 2024 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2024.

The results of operations for the three and six months ended June 29, 2024 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2024.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 30, 2023.

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 30, 2023.

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 30, 2023, except as detailed below regarding accounting for investments.

For further detail, see Note 2 in the audited consolidated financial statements for the fiscal year ended December 30, 2023.

6 unchanged sentences

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

Debt Investments

Marketable debt securities consist of highly liquid U.S.

government bonds with maturities of up to six months when purchased.

These debt investments are classified as Available For Sale investments and measured at fair value with unrealized gains and losses, net of tax, recorded in accumulated other comprehensive income (loss).

We consider all highly liquid debt investments that are readily convertible into cash and have an original maturity of three months or less at the time of purchase to be cash equivalents.

Debt investments with original maturities of greater than three months and less than one year, are classified within other current assets.

Available for sale debt investments are subject to a periodic impairment review.

For investments in an unrealized loss position, we determine whether a credit loss exists.

We recognize an allowance for credit losses, up to the amount of the unrealized loss when appropriate, and write down the amortized cost basis of the investment if it is more likely than not we will be required or we intend to sell the investment before recovery of its amortized cost basis.

Equity Investments

Equity investments consist of investments in marketable equity securities.

Equity investments are measured and recorded at fair value with changes in fair value, whether realized or unrealized, recorded in the statement of operations.

Equity investments are classified within other current assets.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Cash, cash equivalents and restricted cash

The following is a reconciliation of the cash, cash equivalents and restricted cash as of each period end:

The following is a reconciliation of cash, cash equivalents and restricted cash as of each period end:

dollars in millions

March 30, 2024

June 29, 2024

December 30, 2023

1 unchanged sentence

Money market funds

Government bonds

Restricted cash (within other current and other long-term assets)

Cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows

Fair value measurement

1 unchanged sentence

The Company’s investment in money market funds is measured at fair value within Level 1 of the fair value hierarchy because they consist 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 March 30, 2024 and April 1, 2023, amounted to $ 12 million and $ 8 million respectively.

Interest income related to money market funds for the three months ended June 29, 2024 and July 1, 2023 amounted to $ 12 million and $ 12 million, respectively;

and $ 24 million and $ 20 million for the six months ended June 29, 2024 and July 1, 2023, respectively.

The Company’s investment in U.S.

government bonds is measured at fair value within Level 1 of the fair value hierarchy because they consist of U.S.

government bonds for which quoted prices are available in an active market.

The Company’s marketable equity investments are measured at fair value within Level 1 of the fair value hierarchy because they consist of investments in marketable equity securities for which quoted prices are available in an active market.

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

1 unchanged sentence

Research and development expenses are expensed as incurred, and consist primarily of personnel, facilities, equipment, and supplies for research and development activities.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company occasionally enters into best-efforts nonrefundable, non-recurring engineering (“NRE”) arrangements pursuant to which the Company is reimbursed for a portion of the research and development expenses attributable to specific development programs.

3 unchanged sentences

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 $ 36 million and $ 17 million were offset against research and development costs in the three months ended March 30, 2024 and April 1, 2023, respectively.

Research and development reimbursements of $ 12 million and $ 16 million were offset against research and development costs in the three months ended June 29, 2024 and July 1, 2023, respectively;

and $ 48 million and $ 33 million were offset in the six months ended June 29, 2024 and July 1, 2023, respectively.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Derivatives and hedging

8 unchanged sentences

Three Months Ended

Six Months Ended

dollars in millions

March 30, 2024

April 1, 2023

June 29, 2024

Amounts reclassified out of accumulated other comprehensive income (loss)

5 unchanged sentences

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 provision or benefit for those jurisdictions is recorded separately.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

domestic income tax return filed by the Company’s Parent.

6 unchanged sentences

As a result, there are inherent differences between the Company’s separate tax return method approach and certain actual tax returns filed on a consolidated basis with Intel.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Concentration of credit risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, which include short-term deposits and money market funds, and also trade accounts receivable.

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, which include:

short-term deposits, money market funds and U.S.

government bonds;

and also trade accounts receivable.

The majority of the Company’s cash and cash equivalents are invested in banks domiciled in the U.S.

2 unchanged sentences

Short term bank deposits are held in the aforementioned banks.

The money market funds consist of institutional investors money market funds and are readily redeemable to cash.

Accordingly, management believes that these bank deposits and money market funds, have minimal credit risk.

The money market funds consist of institutional investor money market funds and are readily redeemable to cash, and the U.S.

government bonds are also highly liquid.

Accordingly, management believes that these bank deposits, money market funds and U.S.

government bonds, have minimal credit risk.

The Company’s accounts receivables are derived primarily from sales to Tier 1 suppliers to the automotive manufacturing industry located mainly in the U.S., Europe, and China.

7 unchanged sentences

Expected credit losses are recorded as general and administrative expenses in the Company’s condensed consolidated statement of operations and comprehensive income.

As of March 30, 2024 and December 30, 2023, the credit loss allowance of trade accounts receivable was not material.

For the three months ended March 30, 2024 and April 1, 2023 , the charge-offs and recoveries in relation to the credit losses were not material.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of June 29, 2024 and December 30, 2023, the credit loss allowance of trade accounts receivable was not material.

For the three and six months ended June 29, 2024 and July 1, 2023, the charge-offs and recoveries in relation to the credit losses were not material.

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 experienced during 2021 and 2022 and may experience in the future, including in ECUs for SuperVision™ and other components for our products.

See below regarding a shortage in EyeQ™ SoCs that the Company experienced during 2021 and 2022 and may experience in the future, including in ECUs for SuperVision™ and other components for our products.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Supply chain risk

During the fiscal years 2022 and 2021, 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.

Starting in late 2022 and early 2023, such supply chain constraints and shortage abated and during 2023, we successfully increased levels of EyeQ™ SoC inventory on hand, mitigating the potential for future supply constraints to cause a shortfall.

During the fiscal years 2022 and 2021, the semiconductor industry experienced widespread shortages of substrates and other components and available foundry manufacturing capacity.

Furthermore, STMicroelectronics, the Company’s sole supplier, was not able to meet our demand for EyeQ™ SoCs during 2022, causing a significant reduction in the Company’s inventory levels.

Starting in late 2022 and early 2023, such supply chain disruptions, raw material shortages and manufacturing limitations abated and during 2023, we successfully increased levels of EyeQ™ SoC inventory on hand, mitigating the potential for future supply constraints to cause a shortfall of chips.

However, in the event of a reoccurrence of supply chain constraints, and subject to the duration and severity thereof, we may be required to operate with minimal or no inventory of EyeQ™ SoCs or SuperVision™ ECUs on hand.

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 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.

Sustaining the Company’s production trajectory 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 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.

As a result, we are substantially reliant on timely shipments of EyeQ TM SoCs from STMicroelectronics and ECUs from Quanta Computer (or other suppliers) to fulfill customer orders and if such a shortfall of chips of ECUs were to occur, we may be unable to offset future supply constraints through the use of inventory on hand.

Our results of operations in the three and six months ended June 29, 2024 have not been impacted by any shortfall of chips.

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 our current supply chain constraints would materially adversely affect our results of operations, capital resources, sales, profits, and liquidity on a long-term basis.

New Accounting pronouncements

5 unchanged sentences

The Company is evaluating the potential impact of this guidance on its consolidated financial statements.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In November 2023, the FASB issued ASU No.

7 unchanged sentences

dollars in millions

March 30, 2024

June 29, 2024

December 30, 2023

3 unchanged sentences

Total inventories

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

Inventory write-downs and write-offs totaled $ 1 million for the three and six months ended June 29, 2024 and were not material for the three and six months ended July 1, 2023.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Property and equipment

dollars in millions

March 30, 2024

June 29, 2024

December 30, 2023

5 unchanged sentences

Total property and equipment, net

Depreciation expenses totaled $ 14 million and $ 7 million for the three months ended March 30, 2024 and April 1, 2023, respectively.

During the three months ended March 30, 2024, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $ 6 million.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Depreciation expenses totaled $ 16 million and $ 8 million for the three months ended June 29, 2024 and July 1, 2023, respectively;

and $ 30 million and $ 15 million for the six months ended June 29, 2024 and July 1, 2023, respectively.

During the six months ended June 29, 2024, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $ 7 million.

NOTE 4 - EQUITY

4 unchanged sentences

Restricted Stock Units

The RSUs activity for the three months ended March 30, 2024 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

The RSUs activity for the six months ended June 29, 2024 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

Weighted average grant

2 unchanged sentences

Outstanding as of December 30, 2023

Outstanding as of June 29, 2024

The RSUs activity for the three months ended June 29, 2024 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 March 30, 2024

As of March 30, 2024, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $ 291 million, which is expected to be recognized as expense over a weighted-average period of 1.96 years.

Outstanding as of June 29, 2024

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of June 29, 2024, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $ 274 million, which is expected to be recognized as expense over a weighted-average period of 1.95 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 March 30, 2024 were as follows:

Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of June 29, 2024 were as follows:

Weighted average

5 unchanged sentences

exercise price

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The options activity for the three months ended March 30, 2024 for options granted to the Company’s employees for Intel’s common stock was as follows:

The option activity for the six months ended June 29, 2024 for options granted to the Company’s employees for Intel’s common stock was as follows:

Weighted average

3 unchanged sentences

Options outstanding as of December 30, 2023

Options outstanding as of June 29, 2024

Options exercisable as of June 29, 2024

The option activity for the three months ended June 29, 2024 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 March 30, 2024

Options exercisable as of March 30, 2024

(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 March 30, 2024 and December 30, 2023, the share price was $ 44.17 and $ 50.25 .

Options outstanding as of June 29, 2024

Options exercisable as of June 29, 2024

(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 June 29, 2024, Intel’s ordinary share price was $ 31.0 .

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 March 30, 2024 are 7 thousand options with an average weighted exercise price of $ 21.6 .

The RSUs activity for the three months ended March 30, 2024 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 June 29, 2024 are 7 thousand options with an average weighted exercise price of $ 21.6 .

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The RSUs activity for the six months ended June 29, 2024 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 30, 2023

Outstanding as of June 29, 2024

The RSUs activity for the three months ended June 29, 2024 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 March 30, 2024

Outstanding as of June 29, 2024

Unrecognized expenses

As of March 30, 2024, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $ 59 million, which will be recognized over a weighted average period of 0.8 years.

As of June 29, 2024, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $ 38 million, which will be recognized over a weighted average period of 0.6 years.

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

1 unchanged sentence

Three months ended

Six months ended

dollars in millions

March 30, 2024

April 1, 2023

June 29, 2024

Cost of revenue

8 unchanged sentences

Three months ended

Six months ended

In millions, except per share amounts

3 unchanged sentences

Basic and diluted

For the three months ended March 30, 2024 and April 1, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include potential common shares, 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 due to a net loss in the three months ended March 30, 2024 and April 1, 2023.

For the three months ended June 29, 2024 and July 1, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 15.4 million and 6.2 million potential common shares, respectively;

and 15.2 million and 6.7 million potential common shares for the six months ended June 29, 2024 and July 1, 2023, respectively, 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.

NOTE 6 - INCOME TAXES

3 unchanged sentences

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.

Benefit for income tax in the three months ended March 30, 2024, was $ 3 million compared to a provision for income tax of $( 6 ) million in the three months ended April 1, 2023, mainly due to a higher loss before income taxes in the three months ended March 30, 2024 compared to prior year period.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Provision for income tax in the six months ended June 29, 2024 was $ 2 million compared to a provision of $ 16 million in the six months ended July 1, 2023, mainly due to a higher loss before income taxes in the six months ended June 29, 2024 compared to prior year period.

Similarly, the provision for income tax in the three months ended June 29, 2024, was $ 5 million compared to a provision for income tax of $ 10 million in the three months ended July 1, 2023, mainly due to a greater loss before income taxes in the three months ended June 29, 2024 compared to prior year period.

NOTE 7 - RELATED PARTIES TRANSACTIONS

1 unchanged sentence

For further description of the arrangements refer to Note 9 of the notes to the consolidated financial statements for the year ended December 30, 2023.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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, net of any related withholding tax, relating to the value of share-based compensation provided to the Company’s employees for RSUs or stock options exercisable in Intel stock.

The reimbursement amounts recorded as an adjustment to additional paid-in capital in the condensed consolidated statement of changes in equity were $ 5 million and $ 4 million for the three months ended March 30, 2024 and April 1, 2023, respectively.

The reimbursement amounts recorded as an adjustment to additional paid-in capital in the condensed consolidated statement of changes in equity were $ 20 million and $ 18 million for the three months ended June 29, 2024 and July 1, 2023, respectively and $ 25 million and $ 22 million for the six months ended June 29, 2024 and July 1, 2023, 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 March 30, 2024 and April 1, 2023, were $ 0.6 million and $ 1.3 million, respectively.

The leasing costs for the three months ended June 29, 2024 and July 1, 2023, were $ 0.6 million and $ 1.1 million, respectively and $ 1.2 million and $ 2.4 million for the six months ended June 29, 2024 and July 1, 2023, respectively.

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 $ 0.6 million and $ 0.7 million for three months ended March 30, 2024 and April 1, 2023, respectively.

Travel related reimbursements totaled $ 0.5 million and $ 0.5 million for the three months ended June 29, 2024 and July 1, 2023, respectively and $ 1.1 million and $ 1.2 million for the six months ended June 29, 2024 and July 1, 2023, 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 March 30, 2024 and April 1, 2023 were $ 1.5 million and $ 0.4 million, respectively.

The costs incurred under this agreement for the three months ended June 29, 2024 and July 1, 2023 were $ 0.2 million and $ 0.8 million, respectively and $ 1.7 million and $ 1.2 million for the six months ended June 29, 2024 and July 1, 2023, 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.

The amount incurred under this agreement for the three months ended March 30, 2024 and April 1, 2023 was $ 1 million.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The amount incurred under this agreement for the three months ended June 29, 2024 and July 1, 2023 were $ 1.1 million and $ 1.4 million, respectively and $ 2.2 million and $ 2.4 million for the six months ended June 29, 2024 and July 1, 2023, respectively.

LiDAR Product Collaboration Agreement

1 unchanged sentence

On some of the LiDAR programs joint funding will apply between Intel and Mobileye until the end of 2027 whereby Mobileye will bear its own Lidar sensor system development costs up to the first $ 40 million per year and Intel will bear up to $ 20 million per year of Mobileye’s Lidar sensor system development costs that are greater than $ 40 million per year.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The LiDAR Product Collaboration Agreement further provides that Intel will manufacture certain components for the Company to market and sell as part of a FMCW (frequency-modulated continuous wave) lidar sensor system solely for external environment sensing for ADAS and AV in automobiles.

5 unchanged sentences

Final commercial terms for this amendment remain subject to further negotiation by Mobileye and Intel.

There were no amounts received or receivable from Intel under this agreement for the three months ended March 30, 2024 and April 1, 2023.

There were no amounts received or receivable from Intel under this agreement for the three and six months ended June 29, 2024.

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 March 30, 2024 and December 30, 2023, the related party payable to Intel, pursuant to the Tax Sharing Agreement, was $ 37 million.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of June 29, 2024 and December 30, 2023, the related party payable to Intel, pursuant to the Tax Sharing Agreement was $ 37 million.

Intel Sublicense

In June 2024, Intel and its affiliates, including Mobileye, were granted a sublicense to certain patents relating to network-on-chip and other technologies (the “Sublicense”).

In connection with Mobileye’s use of the Sublicense, Intel and Mobileye agreed that Mobileye would pay to Intel $ 0.3 million as Mobileye’s allocation of the consideration paid by Intel for the Sublicense.

NOTE 8 - IDENTIFIED INTANGIBLE ASSETS

dollars in millions

March 30, 2024

June 29, 2024

December 30, 2023

dollars in millions

Developed technology

2 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:

13 unchanged sentences

The accounting policies of the individual segments are the same as those described in the summary of significant accounting policies in Note 2 to the audited consolidated financial statements for the fiscal year ended December 30, 2023.

The following are segment results for each period as follows:

Three months ended June 29, 2024

dollars in millions

Cost of revenues

Research and development, net

Sales and marketing

General and administrative

Segment performance

Other financial income (expense), net

Income (loss) before taxes on income

Share-based compensation

Depreciation of property and equipment

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following are segment results for each period as follows:

Three months ended March 30, 2024

Three months ended July 1, 2023

dollars in millions

8 unchanged sentences

Depreciation of property and equipment

Three months ended April 1, 2023

Six months ended June 29, 2024

dollars in millions

8 unchanged sentences

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

Income (loss) before taxes on income

Share-based compensation

Depreciation of property and equipment

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Three months ended

Six months ended

dollars in millions

3 unchanged sentences

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

EyeQ TM SoC sales represented approximately 72 % and 88 % of our revenue for each of the three months ended March 30, 2024 and April 1, 2023, respectively.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

EyeQ TM SoC sales represented approximately 86 % and 92 % of our revenue for each of the three months ended June 29, 2024 and July 1, 2023, respectively and 81 % and 90 % of our revenue for each of the six months ended June 29, 2024 and July 1, 2023, respectively.

Major Customers

1 unchanged sentence

Three months ended

Six months ended

Percent of total revenues:

3 unchanged sentences

*Less than 10%

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 - INVESTMENTS

Debt Investments

Debt investments include U.S.

government bonds and money market funds.

government bonds are for original maturities of up to six months and are classified as available for sale and measured at fair value with the related unrealized gains and losses included in other comprehensive income (expense), net.

Money market funds, measured at fair value, consist of institutional investors money market funds and are readily redeemable to cash.

The following tables summarize the Company’s marketable debt securities:

June 29, 2024

Cash and cash

Other current

dollars in millions

Amortized cost

Unrealized gain

Unrealized loss

government bonds

Money market funds

December 30, 2023

Cash and cash

Other current

dollars in millions

Amortized cost

Unrealized gain

Unrealized loss

Money market funds

Equity Investments

The fair value of equity investments which were purchased during the period and classified within other current assets, was $ 9 million as of June 29, 2024.

Unrealized gains and losses recorded in other financial income (expense), net for the three and six months ended June 29, 2024 amounted to $( 1 ) million.

NOTE 11 - CONTINGENCIES

2 unchanged sentences

The complaint seeks unspecified damages and other relief on behalf of all persons and entities who purchased or otherwise acquired Mobileye securities between January 26, 2023 and January 3, 2024.

On July 12, 2024, the court consolidated the McAuliffe case with a substantively identical case, Le v.

Mobileye Global Inc., et al., 1:24-CV-01390 (S.D.N.Y.), appointed a lead plaintiff, and set an initial schedule for the consolidated case.

We intend to defend the matter vigorously.

No provision was recorded in the financial statements as of March 30, 2024.

No provision was recorded in the financial statements as of June 29, 2024.

MOBILEYE GLOBAL INC.

6 unchanged sentences

The complaint seeks unspecified damages and other relief.

We intend to defend the matter vigorously.

No provision was recorded in the financial statements as of March 30, 2024.

Since May 24, 2024, the derivative action has been stayed by the court pending resolution of the anticipated motion to dismiss in the consolidated securities action.

On June 27, 2024, an additional derivative lawsuit was filed in the United States District Court for the Southern District of New York against certain members of the Mobileye Board of Directors, certain of Mobileye’s current and former officers, and Intel Corporation, in its capacity as Mobileye’s controlling shareholder.

Mobileye was also named as a nominal defendant.

On July 9, 2024, this derivative action was consolidated with the derivative action originally filed on April 12, 2024 and the consolidated derivative action was stayed by the court pending resolution of the anticipated motion to dismiss in the consolidated securities action.

We intend to defend the derivative claims vigorously.

No provision for the consolidated derivative action was recorded in the financial statements as of June 29, 2024.

NOTE 12 - SUBSEQUENT EVENTS

In April 2024, the Company’s compensation committee approved the issuance of restricted stock units to be issued under our 2022 Equity Incentive Plan.

In July 2024, 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 $ 278 million, which consisted of 10,391 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