What changed in this filing

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Item 1. Financial Statements

2024-10-31 compared with 2024-08-07 · 180 added, 138 removed, 505 unchanged (39% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 28,

dollars in millions

27 unchanged sentences

shares issued and outstanding:

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

99,548,127 as of September 28, 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 June 29, 2024 and December 30, 2023

711,500,000 as of September 28, 2024 and December 30, 2023

Additional paid-in capital

5 unchanged sentences

Three months ended

Six months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

dollars in millions, except per share amounts

3 unchanged sentences

General and administrative

Goodwill impairment

Total operating expenses

5 unchanged sentences

Earnings (loss) per share attributed to Class A and Class B stockholders:

Basic and diluted

Weighted-average number of shares used in computation of earnings (loss) per share attributed to Class A and Class B stockholders (in millions):

Basic and diluted

Net income (loss)

6 unchanged sentences

Shareholders’

dollars in millions, except per share amounts

dollars in millions, except number of shares

Income (Loss)

Three Months Ended

Balance as of March 30, 2024

Balance as of June 29, 2024

Net income (loss)

2 unchanged sentences

Issuance of common stock under employee share-based compensation plans

Balance as of June 29, 2024

Balance as of April 1, 2023

Balance as of September 28, 2024

Balance as of July 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 September 30, 2023

Nine Months Ended

Balance as of December 30, 2023

3 unchanged sentences

Issuance of common stock under employee share-based compensation plans

Balance as of June 29, 2024

Balance as of September 28, 2024

Balance as of December 31, 2022

5 unchanged sentences

Secondary offering

Balance as of July 1, 2023

Balance as of September 30, 2023

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

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six months ended

Nine months ended

September 28,

September 30,

dollars in millions

5 unchanged sentences

Amortization of intangible assets

Goodwill impairment

Exchange rate differences on cash and cash equivalents

1 unchanged sentence

Interest with related party, net

(Gains) losses on equity and debt investments, net

Changes in operating assets and liabilities:

11 unchanged sentences

Purchases of debt and equity investments

Maturities and sales of debt and equity investments

Net cash provided by (used in) investing activities

18 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 June 29, 2024, represents approximately 87.9 % of our outstanding common stock and 98.6 % 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 September 28, 2024, represents approximately 87.7 % of our outstanding common stock and 98.6 % of the voting power of our common stock.

Operations in Israel

On October 7, 2023, Hamas launched a series of attacks on civilian and military targets in Southern and Central Israel, to which the Israel Defense Forces have responded.

In addition, Hezbollah has attacked military and civilian targets in Northern Israel, to which Israel has responded.

Further, on April 13, 2024, Iran launched a series of drone and missile strikes against Israel, to which Israel has responded.

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 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.

In addition, both Hezbollah and the Houthi movement have attacked military and civilian targets in Northern Israel, to which Israel has responded, including through increased air and ground operations in Lebanon.

In addition, the Houthi movement has attacked international shipping lanes in the red sea.

Further, on April 13, 2024, and on October 1, 2024, Iran launched a series of drone and missile strikes against Israel, to which Israel has responded.

How long and how severe the current conflict in Gaza, Northern Israel, Lebanon 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 October 24, 2024 approximately 8.3 % of our employees have been called to reserve duty in the Israel Defense Forces.

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

However, since this is an event beyond our control, its continuation or cessation may affect our expectations.

4 unchanged sentences

As a result, this division has seen its revenues decline meaningfully, and in recent years has not positively contributed to Mobileye’s profitability.

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

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.

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

The termination costs are in the amount of approximately $ 4 million, which was recognized as an expense in the nine months ended September 28, 2024.

On September 9, 2024, the Company announced the winding down of the Lidar R&D Unit by the end of 2024 and the cessation of internal development of next-generation frequency modulated continuous wave (FMCW) lidars for use in autonomous and highly automated driving systems.

The decision was based on a variety of factors, including substantial progress on the Company’s EyeQ TM 6-based computer vision perception, increased clarity on the performance of the Company’s internally developed imaging radar, and continued better-than-expected cost reductions in third-party time-of-flight lidar units.

The plan for winding down of the Lidar R&D Unit includes a reduction in workforce of approximately 90 employees worldwide.

The affected employees are entitled to additional termination costs in the amount of approximately $ 4.6 million which was recognized as an R&D expense in the three months ended September 28, 2024.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

5 unchanged sentences

These condensed consolidated financial statements have been prepared on the same basis as the Company’s annual audited consolidated financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

We have a 52- or 53-week fiscal year that ends on the last Saturday in December.

1 unchanged sentence

fiscal year 2024 is also a 52 week fiscal year.

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 results of operations for the three and nine months ended September 28, 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.

8 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.

A change in estimates, including a change in the overall market value of the Company, could require reassessments of the items noted above.

Debt Investments

7 unchanged sentences

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Equity Investments

2 unchanged sentences

Equity investments are classified within other current assets.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Cash, cash equivalents and restricted cash

1 unchanged sentence

dollars in millions

June 29, 2024

September 28, 2024

December 30, 2023

1 unchanged sentence

Money market funds

Government bonds

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

3 unchanged sentences

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 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.

Interest income related to money market funds for the three months ended September 28, 2024 and September 30, 2023 amounted to $ 12 million and $ 15 million, respectively;

and $ 36 million and $ 35 million for the nine months ended September 28, 2024 and September 30, 2023, respectively.

The Company’s investment in U.S.

9 unchanged sentences

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

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 $ 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

Research and development reimbursements of $ 24 million and $ 24 million were offset against research and development costs in the three months ended September 28, 2024 and September 30, 2023, respectively;

and $ 72 million and $ 57 million were offset in the nine months ended September 28, 2024 and September 30, 2023, respectively.

Derivatives and hedging

8 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

dollars in millions

June 29, 2024

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

Amounts reclassified out of accumulated other comprehensive income (loss)

11 unchanged sentences

Any differences between taxes 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 in the condensed consolidated statement of changes in equity and financing activities within the condensed consolidated statement of cash flows (see also Note 7).

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company reflects tax loss and tax credit carry-forward attributes under the separate return method approach.

1 unchanged sentence

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

20 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 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.

As of September 28, 2024 and December 30, 2023, the credit loss allowance of trade accounts receivable was not material.

For the three and nine months ended September 28, 2024 and September 30, 2023, the charge-offs and recoveries in relation to the credit losses were not material.

Customer concentration risk

16 unchanged sentences

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.

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.

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 or ECUs were to occur, we may be unable to offset future supply constraints through the use of inventory on hand.

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.

15 unchanged sentences

dollars in millions

June 29, 2024

September 28, 2024

December 30, 2023

3 unchanged sentences

Total inventories

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.

Inventory write-downs and write-offs totaled $ 1 million and $ 2 million for the three and nine months ended September 28, 2024 and were not material for the three and nine months ended September 30, 2023.

MOBILEYE GLOBAL INC.

2 unchanged sentences

dollars in millions

June 29, 2024

September 28, 2024

December 30, 2023

5 unchanged sentences

Total property and equipment, net

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.

Depreciation expenses totaled $ 16 million and $ 9 million for the three months ended September 28, 2024 and September 30, 2023, respectively;

and $ 46 million and $ 24 million for the nine months ended September 28, 2024 and September 30, 2023, respectively.

During the nine months ended September 28, 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 six months ended June 29, 2024 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

The RSUs activity for the nine months ended September 28, 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:

Outstanding as of September 28, 2024

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The RSUs activity for the three months ended September 28, 2024 for RSUs granted to Company’s employees under the 2022 Plan was as follows:

Weighted average grant

1 unchanged sentence

date fair value

Outstanding as of March 30, 2024

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.

Outstanding as of September 28, 2024

As of September 28, 2024, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $ 454 million, which is expected to be recognized as expense over a weighted-average period of 2.22 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 June 29, 2024 were as follows:

Outstanding and exercisable options for Intel’s common stock under Intel’s plan as of September 28, 2024 were as follows:

Weighted average

5 unchanged sentences

exercise price

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

The option activity for the nine months ended September 28, 2024 for options granted to the Company’s employees for Intel’s common stock was as follows:

contractual Life

2 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

Options outstanding as of September 28, 2024

Options exercisable as of September 28, 2024

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The option activity for the three months ended September 28, 2024 for options granted to the Company’s employees for Intel’s common stock was as follows:

contractual Life

1 unchanged sentence

dollars in millions

Options outstanding as of March 30, 2024

Options outstanding as of June 29, 2024

Options exercisable as of June 29, 2024

Options outstanding as of September 28, 2024

Options exercisable as of September 28, 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 .

On September 28, 2024, Intel’s ordinary share price was $ 23.9 .

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 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:

(2) The remaining options expected to vest as of September 28, 2024 are 3 thousand options with an average weighted exercise price of $ 21.6 .

The RSUs activity for the nine months ended September 28, 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:

Outstanding as of September 28, 2024

The RSUs activity for the three months ended September 28, 2024 for RSUs granted to the Company’s employees for Intel’s common stock was as follows:

Weighted average

1 unchanged sentence

grant date fair value

Outstanding as of March 30, 2024

Outstanding as of June 29, 2024

Outstanding as of September 28, 2024

Unrecognized expenses

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.

As of September 28, 2024, the unrecognized compensation cost related to stock options and RSUs granted under the Intel 2006 Plan was $ 19 million, which will be recognized over a weighted average period of 0.3 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

Nine months ended

dollars in millions

June 29, 2024

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

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

1 unchanged sentence

Three months ended

Six months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

In millions, except per share amounts

Net income (loss)

Weighted average common shares - basic and diluted

Weighted average common shares - basic

Dilutive effect of equity incentive awards

Weighted average common shares - diluted

Earnings (loss) per share:

Basic and diluted

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.

For the three months ended September 28, 2024 and September 30, 2023, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 20.4 million and 5.5 million potential common shares, respectively;

and 17.0 million and 14.9 million potential common shares for the nine months ended September 28, 2024 and September 30, 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.

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Benefit for income tax in the nine months ended September 28, 2024 was $ 76 million compared to a provision of $ 22 million in the nine months ended September 30, 2023, mainly due to the deferred tax effect of goodwill impairment to the Mobileye reporting unit and a higher loss before income taxes in the nine months ended September 28, 2024 compared to prior year period.

The benefit for income tax in the three months ended September 28, 2024, was $ 78 million compared to a provision for income tax of $ 6 million in the three months ended September 30, 2023, mainly due to the deferred tax effect of goodwill impairment to the Mobileye reporting unit.

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 $ 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.

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 $ 7 million for the three months ended September 28, 2024 and September 30, 2023, respectively and $ 30 million and $ 29 million for the nine months ended September 28, 2024 and September 30, 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 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.

The leasing costs for the three months ended September 28, 2024 and September 30, 2023, were $ 0.9 million and $ 1.2 million, respectively and $ 2.1 million and $ 3.6 million for the nine months ended September 28, 2024 and September 30, 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 $ 0.5 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.

Travel related reimbursements totaled $ 0.3 million and $ 0.5 million for the three months ended September 28, 2024 and September 30, 2023, respectively and $ 1.4 million and $ 1.7 million for the nine months ended September 28, 2024 and September 30, 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 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.

The costs incurred under this agreement for the three months ended September 28, 2024 and September 30, 2023 were $ 0.6 million and $ 1.7 million, respectively and $ 2.3 million and $ 2.9 million for the nine months ended September 28, 2024 and September 30, 2023, respectively.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 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.

The amount incurred under this agreement for the three months ended September 28, 2024 and September 30, 2023 were $ 1.1 million and $ 1.4 million, respectively and $ 3.3 million and $ 3.8 million for the nine months ended September 28, 2024 and September 30, 2023, respectively.

LiDAR Product Collaboration Agreement

The LiDAR Product Collaboration Agreement, provides the terms that will apply to the Company’s collaboration with Intel for the development and manufacture of a Lidar sensor system for ADAS and AV in automobiles (“LiDAR Projects”).

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.

The price for the components Intel will manufacture for the Company will be based on a cost-plus model.

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.

In 2023, Mobileye opted to pursue a different lidar technology, and as a result, Mobileye and Intel are no longer actively working on developing the LiDAR Project under the LiDAR Product Collaboration Agreement.

Mobileye and Intel have begun negotiation of an amendment to the LiDAR Product Collaboration Agreement which contemplates the parties’ cessation of lidar development work and Mobileye’s potential, continued use of certain licenses granted by Intel under the LiDAR Product Collaboration Agreement.

In connection with the foregoing, Mobileye would no longer be obligated to share its profits associated with the LiDAR Project with Intel, and Intel would no longer be obligated to provide development services for the LiDAR Project and fund Mobileye’s lidar investments beyond the $ 40 million per year threshold set forth in the LiDAR Product Collaboration Agreement.

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 and six months ended June 29, 2024.

The LiDAR Product Collaboration Agreement provided the terms that applied to the Company’s collaboration with Intel for the development and manufacture of a Lidar sensor system for ADAS and AV in automobiles (“LiDAR Projects”).

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

The LiDAR Product Collaboration Agreement further provided that Intel would 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.

The price for the components Intel would manufacture for the Company would have been based on a cost-plus model.

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

On September 9, 2024, Mobileye announced the cessation of further internal development of FMCW lidar and the wind down of the Lidar R&D Unit.

In connection with Mobileye’s decision, Mobileye and Intel terminated the LiDAR Product Collaboration Agreement as of October 2, 2024.

There were no amounts received or receivable from Intel under this agreement for the three and nine months ended September 28, 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 June 29, 2024 and December 30, 2023, the related party payable to Intel, pursuant to the Tax Sharing Agreement was $ 37 million.

On August 14, 2024, Mobileye and Intel entered into an Amended and Restated Tax Sharing Agreement, which incorporated certain clarifying amendments into the original Tax Sharing Agreement.

As of September 28, 2024 and December 30, 2023, the related party payable to Intel, pursuant to the Tax Sharing Agreement was $ 37 million.

Intel Sublicense

1 unchanged sentence

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 8 - IDENTIFIED INTANGIBLE ASSETS

June 29, 2024

September 28, 2024

December 30, 2023

4 unchanged sentences

Three months ended

Six months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

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:

1 unchanged sentence

Future amortization expenses

During the third quarter of 2024, we performed an impairment assessment of intangible assets and concluded that the sum of the expected future undiscounted cash flows expected to be generated by the intangible assets is substantially above their carrying amount and therefore no impairment was identified.

NOTE 9 - SEGMENT INFORMATION

6 unchanged sentences

Mobileye is the Company’s only reportable operating segment and Moovit is presented within “Other” as per ASC 280, Segment Reporting.

Segment performance is the operating income reported excluding the amortization of acquisition-related intangible assets.

Segment performance is the operating income/(loss) reported excluding the amortization of acquisition-related intangible assets and impairment of goodwill.

The CODM uses segment performance to allocate resources (including employees and financial resources) to segments in the annual budget and forecasting process and also uses that measure to assess the segment performance.

1 unchanged sentence

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following are segment results for each period as follows:

Three months ended June 29, 2024

Three months ended September 28, 2024

dollars in millions

3 unchanged sentences

General and administrative

Goodwill impairment

Segment performance

3 unchanged sentences

Depreciation of property and equipment

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three months ended July 1, 2023

Three months ended September 30, 2023

dollars in millions

8 unchanged sentences

Depreciation of property and equipment

Six months ended June 29, 2024

Nine months ended September 28, 2024

dollars in millions

3 unchanged sentences

General and administrative

Goodwill impairment

Segment performance

3 unchanged sentences

Depreciation of property and equipment

Six months ended July 1, 2023

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Nine months ended September 30, 2023

dollars in millions

8 unchanged sentences

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

Nine months ended

September 28,

September 30,

September 28,

September 30,

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 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.

EyeQ TM SoC sales represented approximately 86 % and 89 % of our revenue for each of the three months ended September 28, 2024 and September 30, 2023, respectively and 83 % and 90 % of our revenue for each of the nine months ended September 28, 2024 and September 30, 2023, respectively.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Major Customers

1 unchanged sentence

Three months ended

Six months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

Percent of total revenues:

1 unchanged sentence

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

September 28,

Percent of total accounts receivables balance:

*Less than 10%

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 10 - INVESTMENTS

5 unchanged sentences

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

June 29, 2024

September 28, 2024

Cash and cash

14 unchanged sentences

Money market funds

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

The fair value of equity investments which were purchased during the period and classified within other current assets, was $ 10 million as of September 28, 2024.

Unrealized gains recorded in other financial income (expense), net for the three and nine months ended September 28, 2024 amounted to $ 1 million and zero million, respectively.

NOTE 11 - CONTINGENCIES

4 unchanged sentences

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.

On September 13, 2024, the lead plaintiff filed an amended complaint, which among other actions named another current officer as a defendant and modified the class period to January 26, 2023 until August 8, 2024.

On October 25, 2024, Mobileye and the other named defendants jointly filed a motion to dismiss.

We intend to defend the matter vigorously.

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

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

No provision was recorded in the financial statements as of September 28, 2024.

Derivative Action

9 unchanged sentences

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 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 .

No provision for the consolidated derivative action was recorded in the financial statements as of September 28, 2024.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12 - GOODWILL

The following table presents the carrying amount of goodwill by segment as of September 28, 2024 and December 30, 2023.

dollars in millions

December 30, 2023

September 28, 2024

During the third quarter of 2024, the Company performed an interim quantitative goodwill impairment analysis for the “Mobileye” reporting unit, due to a recent decline (from August) in the price of the Company’s Class A common stock, and corresponding market capitalization, as well as macroeconomic and industry factors.

The quantitative assessment was performed by measuring the reporting unit’s fair value (which substantially constitutes the entire value of the Company) using the income approach, based on the expected present value of estimated future cash flows.

The fair value measurement is categorized as Level 3 within the fair value hierarchy due to the use of unobservable inputs such as financial projections, terminal growth rate, and discount rate.

The results of the impairment analysis indicated that the carrying value of the Mobileye reporting unit was in excess of its fair value.

Therefore, the Company has recorded a non-cash impairment loss of $ 2,695 million ($ 2,613 million, net of tax), under “goodwill impairment” in the Condensed Consolidated Statements of Operations.

No impairment was identified for the “other” reporting unit.

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