What changed in this filing

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Item 1. Financial Statements

2025-04-24 compared with 2024-10-31 · 200 added, 325 removed, 360 unchanged (59% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

September 28,

dollars in millions

dollars in millions, except share and per share data

Current assets

26 unchanged sentences

shares issued and outstanding:

99,548,127 as of September 28, 2024 and 94,652,348 as of December 30, 2023

100,496,663 as of March 29, 2025 and 100,226,477 as of December 28, 2024

Class B common stock:

2 unchanged sentences

shares issued and outstanding:

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

711,500,000 as of March 29, 2025 and December 28, 2024

Additional paid-in capital

Accumulated other comprehensive income (loss)

Retained earnings (accumulated deficit)

TOTAL LIABILITIES AND EQUITY

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

MOBILEYE GLOBAL INC.

1 unchanged sentence

Three months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

dollars in millions, except per share amounts

dollars in millions, except share and per share data

Cost of revenue

2 unchanged sentences

General and administrative

Goodwill impairment

Total operating expenses

Operating income (loss)

Other financial income (expense), net

Financial income (expense), net

Income (loss) before income taxes

2 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)

Other comprehensive income (loss)

Other comprehensive income (loss), net of tax

TOTAL COMPREHENSIVE INCOME (LOSS)

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

MOBILEYE GLOBAL INC.

2 unchanged sentences

Shareholders’

dollars in millions, except number of shares

dollars in millions, except share and per share data

Income (Loss)

Three Months Ended

Balance as of June 29, 2024

Net income (loss)

Share-based compensation expense

Recharge to Parent for Share-based compensation

Issuance of common stock under employee share-based compensation plans

Balance as of September 28, 2024

Balance as of July 1, 2023

Net income (loss)

Share-based compensation expense

Recharge to Parent for Share-based compensation

Balance as of September 30, 2023

Nine Months Ended

Balance as of December 30, 2023

2 unchanged sentences

Recharge to Parent for Share-based compensation

Issuance of common stock under employee share-based compensation plans

Balance as of September 28, 2024

Balance as of March 30, 2024

Balance as of December 28, 2024

1 unchanged sentence

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

Secondary offering

Balance as of September 30, 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.

Balance as of March 29, 2025

MOBILEYE GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine months ended

September 28,

September 30,

Three months ended

dollars in millions

5 unchanged sentences

Amortization of intangible assets

Goodwill impairment

Exchange rate differences on cash and cash equivalents

Deferred income taxes

Interest with related party, net

Changes in operating assets and liabilities:

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Decrease (increase) in other long term assets

Increase (decrease) in other long term liabilities

Net cash provided by (used in) operating activities

Increase (decrease) in long-term liabilities

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

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Maturities and sales of debt and equity investments

Net cash provided by (used in) investing activities

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

2 unchanged sentences

Effect of foreign exchange rate changes on cash and cash equivalents

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

Increase 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.

MOBILEYE GLOBAL INC.

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(“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 September 28, 2024, represents approximately 87.7 % 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 March 29, 2025, represents approximately 87.6 % 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, 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.

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

In addition, both Hezbollah and the Houthi movement have attacked military and civilian targets in 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, to which both Israel and the United States have responded.

Further, on April 13, 2024 and 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.

To date, our operations have not been materially affected, although as of April 15, 2025 approximately 3.8 % 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 broader region as well as 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.

We continue to monitor political and military developments closely and examine the consequences for our business, results of operations and financial condition.

Other events during the reporting period

On March 18, 2024, the Company announced the winding down of the Aftermarket Solutions Unit that provides retrofitted advanced driver assistance technology.

This decision was made following a thorough review of this unit’s business prospects and investment needs showing that since automakers and other vehicle manufacturers have steadily increased the rate at which integrated ADAS solutions are installed on new vehicles, the demand and future addressable market for retrofitted ADAS solutions has declined.

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 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

We continue to monitor political and military developments closely and examine the consequences for our operations and assets.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

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

Fiscal year 2023 was a 52 week fiscal year;

fiscal year 2024 is also a 52 week fiscal year.

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.

Fiscal year 2025 is a 52-week fiscal year;

fiscal year 2024 was also a 52-week fiscal year.

The results of operations for the three months ended March 29, 2025 shown in this report are not necessarily indicative of the results to be expected for the full year ending 2025.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the fiscal year ended December 28, 2024.

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.

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the fiscal year ended December 28, 2024.

For further detail, see Note 2 in the audited consolidated financial statements for the fiscal year ended December 28, 2024.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Use of estimates

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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

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

Cash, cash equivalents and restricted cash

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

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

dollars in millions

September 28, 2024

March 29, 2025

December 28, 2024

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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 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.

Interest income related to money market funds for the three months ended March 29, 2025, and March 30, 2024, amounted to $ 10 million and $ 12 million, respectively.

The Company’s investment in U.S.

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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 Company's derivative instruments designated as hedging instruments, are measured at fair value within Level 2 of the fair value hierarchy.

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

Research and development, net

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

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.

Research and development costs 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 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.

The Company does not receive any additional compensation or royalties upon completion of such projects and the potential customer does not commit to purchase the resulting product in the future.

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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 $ 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.

Research and development reimbursements of $ 26 million and $ 36 million were offset against research and development costs in the three months ended March 29, 2025 and March 30, 2024, 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.

ILS is the largest operating expense currency of the Company.

Intel combines all of its ILS exposures, and as part of Intel’s hedging program enters into hedging contracts to hedge Intel’s combined ILS exposure.

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.

During the fourth quarter of 2022, the Company de-designated its remaining cash flow hedges for forecasted operating expenses denominated in ILS and no longer participates in the hedging services agreement with Intel.

As the hedged transactions and cash flows related to the outstanding instruments were expected to occur as originally forecasted, the associated gains and losses deferred in accumulated other comprehensive income (loss) on the Company’s consolidated balance sheet were reclassified into earnings in the same period or periods during which the originally hedged transactions affect earnings.

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.

During the fourth quarter of 2024 the Company initiated a foreign currency cash flow hedging program, designed to hedge the Company's foreign exchange rate risk, resulting from ILS payroll expenses.

The Company hedges portions of its forecasted payroll payments denominated in ILS for a period of up to 12 months, using forward contracts that are designated as cash flow hedges, as defined by ASC 815.

These derivative instruments are measured at fair value within Level 2 of the fair value hierarchy.

Derivative instruments are recorded as other current assets or other current liabilities, according to the timing of settlement.

For these derivative instruments, designated as a cash flow hedge, gains and losses are reported as a component of other comprehensive income (loss) and reclassified into earnings in the same line item associated with the hedged transaction and in the same period or periods during which the hedged transaction affects the statement of operations.

As of March 29, 2025, the Company expects to reclassify all of its unrealized gains and losses from accumulated other comprehensive income (loss) to earnings during the next twelve months.

The cash flows associated with these derivatives are classified in the consolidated statements of cash flows consistently with the classification of the underlying hedged transaction, within cash flows from operating activities.

The notional amount and fair value of outstanding derivatives at the end of each period were:

dollars in millions

March 29, 2025

December 28, 2024

Notional amount of derivative contracts

Fair value of derivative assets, net

Fair value of derivative liabilities, net

The change in accumulated other comprehensive income (loss) relating to gains (losses) on derivatives used for hedging was as follows:

Three Months Ended

Nine Months Ended

dollars in millions

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

March 29, 2025

March 30, 2024

Other comprehensive income (loss) before reclassifications

Amounts reclassified out of accumulated other comprehensive (income) loss **

Other comprehensive income (loss), net

* Less than $1 million.

** Amounts of gains (losses) reclassified from other comprehensive income (loss) into profit or loss are recorded in cost of revenue and operating expenses.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

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The Company has entered into a Tax Sharing Agreement with its Parent that establishes the amount of cash payable for the Company's share of the tax liability owed on consolidated tax return filings with its Parent.

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

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

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

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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.

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

government bonds, derivative financial instruments, and also trade accounts receivable.

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

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Short term bank deposits are held in the aforementioned banks.

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

The money market funds consist of institutional investors 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.

Concentration of credit risk with respect to accounts receivables is mitigated by credit limits, ongoing credit evaluation, and account monitoring procedures.

Derivative financial instruments are forward contracts entered into with major banks in Israel to hedge the Company's foreign exchange rate risk.

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

government bonds and derivative financial instruments have minimal credit risk.

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

Concentration of credit risk with respect to accounts receivable is mitigated by credit limits, ongoing credit evaluation, and account monitoring procedures.

Credit is granted based on an evaluation of a customer’s financial condition and, generally, collateral is not required.

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

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.

As of March 29, 2025 and December 28, 2024, the credit loss allowance for trade accounts receivable was not material.

For the three months ended March 29, 2025 and March 30, 2024, the charge-offs and recoveries in relation to the credit losses were not material.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Customer concentration risk

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The loss of one or more key customers, a reduction in sales to any key customer or the Company’s inability to attract new significant customers could negatively impact revenue and adversely affect the Company’s business, results of operations, and financial condition.

See Note 9 related to customers that accounted for more than 10% of the Company’s total revenue and more than 10% of the total accounts receivable balance for each of the periods presented in these condensed consolidated financial statements.

Dependence on a single supplier risk

See Note 9 Segment Information related to customers that accounted for more than 10% of the Company’s total revenue and more than 10% of the total accounts receivable balance for each of the periods presented in these condensed consolidated financial statements.

Dependence on a single supplier or limited suppliers risk

The Company purchases all its System on Chip (“EyeQ™ SoC”) from a single supplier.

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.

For certain materials, equipment, and services, we, and/or our suppliers and vendors, rely on a single or a limited number of direct and indirect suppliers and vendors.

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

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 2021 and 2022, 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.

During 2021 and 2022, STMicroelectronics, our sole supplier of EyeQ™ SoCs, was not able to meet our demand for EyeQ™ SoCs, causing a significant reduction in the Company's inventory levels.

Starting in late 2022 and early 2023, such supply 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.

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.

As a result, we are substantially reliant on timely shipments of EyeQ™ 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.

Since our EyeQ™ SoC is the core of our ADAS and autonomous driving solutions, continued, acute shortages in the supply of sufficient EyeQ™ SoCs to meet our production needs would impair our ability to meet our customers’ requirements in a timely manner, and would affect our business, results of operations, and financial condition potentially in an adverse manner.

New Accounting pronouncements

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

In November 2023, the FASB issued ASU No.

2023-07 Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The ASU improves reportable segments disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40):

Disaggregation of Income Statement Expense and ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date.

The ASU improves the disclosures about a public business entity’s expenses and provides more detailed information about the types of expenses in commonly presented expense captions.

The amendments require that at each interim and annual reporting period an entity will, inter alia, disclose amounts of purchases of inventory, employee compensation, depreciation and amortization included in each relevant expense caption (such as cost of sales, general and administrative, and research and development).

The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

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

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

NOTE 3 - OTHER FINANCIAL STATEMENT DETAILS

dollars in millions

September 28, 2024

March 29, 2025

December 28, 2024

3 unchanged sentences

Total inventories

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.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Inventory write-downs and write-offs totaled $ 1 million for the three months ended March 29, 2025 and were not material for the three months ended March 30, 2024.

Property and equipment

dollars in millions

September 28, 2024

March 29, 2025

December 28, 2024

5 unchanged sentences

Total property and equipment, net

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.

Depreciation expenses totaled $ 18 million and $ 14 million for the three months ended March 29, 2025 and March 30, 2024, respectively.

During the three months ended March 29, 2025 and March 30, 2024, the Company derecognized the cost and accumulated depreciation of fully depreciated assets in the amount of $ 1 million and $ 6 million, respectively.

NOTE 4 - EQUITY

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Mobileye Plan

Following the Mobileye IPO in October 2022, the Company’s employees are incentivized and rewarded through the grant of the Company’s equity awards under the Mobileye Global Inc.

2022 Equity Incentive Plan (“the 2022 Plan”), which are granted for Class A shares and vest upon the satisfaction of a service-based vesting condition, mostly over service periods of three years .

Restricted Stock Units

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

Number of RSUs

date fair value

Outstanding as of December 30, 2023

Outstanding as of September 28, 2024

In connection with the Mobileye IPO in October 2022, the Company approved the Mobileye Global Inc.

2022 Equity Incentive Plan ("the 2022 Plan").

Equity awards under the 2022 Plan are granted for Class A shares and vest upon the satisfaction of a service-based vesting condition, mostly over service periods of three years .

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:

Restricted Stock Units

The RSUs activity for the three months ended March 29, 2025 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 June 29, 2024

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.

Outstanding as of December 28, 2024

Outstanding as of March 29, 2025

As of March 29, 2025, the unrecognized compensation cost related to all unvested RSUs granted under the 2022 Plan, was $ 339 million, which is expected to be recognized as expense over a weighted-average period of 1.85 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 September 28, 2024 were as follows:

Weighted average

Exercise price

contractual life

exercise price

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

exercise price

dollars in millions

Options outstanding as of December 30, 2023

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

exercise price

dollars in millions

Options outstanding 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 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 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

Number of RSUs

grant date fair value

Outstanding as of December 30, 2023

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

Number of RSUs

grant date fair value

Outstanding as of June 29, 2024

Outstanding as of September 28, 2024

Unrecognized expenses

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

The activity of the Company's employees for Intel's options and RSUs was immaterial for the current period.

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

Share-based compensation expenses included in the condensed consolidated statements of operations and comprehensive income (loss) was as follows:

Expenses recognized

Share-based compensation expenses included in the condensed consolidated statements of operations and comprehensive income (loss) were as follows:

Three months ended

Nine months ended

dollars in millions

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

Cost of revenue

March 29, 2025

March 30, 2024

Research and development, net

5 unchanged sentences

Three 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

Dilutive effect of equity incentive awards

Weighted average common shares - diluted

Weighted average common shares - basic and diluted

Earnings (loss) per share:

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.

Basic and diluted

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended March 29, 2025 and March 30, 2024, the computation of diluted earnings (loss) per share attributable to common stockholders does not include 21.4 million and 15.1 million potential common shares, 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.

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.

Provision for income tax in the three months ended March 29, 2025, was $( 3 ) million compared to a benefit for income tax of $ 3 million for the three months ended March 30, 2024.

This $ 6 million increase was primarily due to a decrease in loss before income taxes in the three months ended March 29, 2025 compared to the prior year period.

NOTE 7 - RELATED PARTIES TRANSACTIONS

3 unchanged sentences

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 $ 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.

The reimbursement amounts recorded as an adjustment to additional paid-in capital in the condensed consolidated statement of changes in equity were $ 1 million and $ 5 million for the three months ended March 29, 2025 and March 30, 2024, 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 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.

The leasing costs for the three months ended March 29, 2025 and March 30, 2024, were $ 0.7 million and $ 0.6 million, 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 $ 0.3 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.

The Company reimbursed its Chief Executive Officer for reasonable travel related expenses incurred while conducting business on behalf of the Company as well as paid for certain security related costs.

For the three months ended March 29, 2025 and March 30, 2024, travel related reimbursements and security related costs were $ 1.1 million and $ 0.7 million, 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 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

The costs incurred under this agreement for the three months ended March 29, 2025 and March 30, 2024 were $ 0.9 million and $ 1.5 million, respectively.

Technology and Services Agreement

The Technology and Services Agreement provides a framework for the collaboration on technology projects and services between the Company and Intel (“Technology Projects”), and sets out the licenses granted by each party to its respective technology for the conduct of the Technology Projects, provisions relating to the ownership of certain existing technology, the allocation of rights in any new technology created in the course of the Technology Projects, and certain provisions applicable to the development of a certain radar product of the Company.

The Technology and Services Agreement will not apply to projects for the development and manufacture of a Lidar sensor system for automobiles, for which the LiDAR Product Collaboration Agreement will apply.

The Technology and Services Agreement does not apply to projects for the development and manufacture of a lidar sensor system for automobiles, which the LiDAR Product Collaboration Agreement previously covered.

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 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 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.

The amount incurred under this agreement for the three months ended March 29, 2025 and March 30, 2024 were $ 0.5 million and $ 1.0 million, respectively.

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.

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

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of March 29, 2025 and December 28, 2024, the related party payable to Intel, pursuant to the Tax Sharing Agreement, were $ 0 million and $ 3 million, respectively.

NOTE 8 - IDENTIFIED INTANGIBLE ASSETS

September 28, 2024

March 29, 2025

December 28, 2024

4 unchanged sentences

Three months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

dollars in millions

5 unchanged sentences

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9 - SEGMENT INFORMATION

5 unchanged sentences

Operating segments do not record inter-segment revenue.

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/(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.

The measure of assets has not been disclosed for each segment as it is not regularly reviewed by the CODM.

Mobileye is presented as a reportable operating segment and Moovit, which is a mobility-as-a-service company, is presented within “Other” as per ASC 280, Segment Reporting.

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

Segment performance is the operating income (loss) reported excluding the amortization of acquisition-related intangible assets, share based compensation expense and impairment of goodwill.

Starting in 2025, the measure of segment performance used by the CODM changed and as a result, the Company's segment performance measure was updated to also exclude share-based compensation expenses (that were previously included in segment performance).

The change aligns with segment information that is now regularly provided to the CODM and reflects how the CODM assesses segment performance and makes strategic decisions about the business.

Prior period amounts have been recast as a result of the change in segment measure.

The measure of assets has not been disclosed for each segment as it is not regularly provided to the CODM.

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 28, 2024.

2 unchanged sentences

The following are segment results for each period as follows:

Three months ended September 28, 2024

Three months ended March 29, 2025

dollars in millions

3 unchanged sentences

General and administrative

Goodwill impairment

Segment performance

Other financial income (expense), net

Income (loss) before taxes on income

Amortization of intangible assets

Share-based compensation

Depreciation of property and equipment

Three months ended September 30, 2023

dollars in millions

Cost of revenues

Research and development, net

Sales and marketing

General and administrative

Segment performance

Other financial income (expense), net

Financial income (expense), net

Income (loss) before taxes on income

Share-based compensation

Depreciation of property and equipment

Nine months ended September 28, 2024

Three months ended March 30, 2024

dollars in millions

3 unchanged sentences

General and administrative

Goodwill impairment

Segment performance

Other financial income (expense), net

Income (loss) before taxes on income

Amortization of intangible assets

Share-based compensation

Depreciation of property and equipment

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Nine months ended September 30, 2023

dollars in millions

Cost of revenues

Research and development, net

Sales and marketing

General and administrative

Segment performance

Other financial income (expense), net

Financial income (expense), net

Income (loss) before taxes on income

Share-based compensation

Depreciation of property and equipment

1 unchanged sentence

Three months ended

Nine months ended

September 28,

September 30,

September 28,

September 30,

dollars in millions

2 unchanged sentences

Rest of World

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 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.

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

EyeQ TM SoC sales represented approximately 94 % and 72 % of our revenue for each of the three months ended March 29, 2025 and March 30, 2024, respectively.

MOBILEYE GLOBAL INC.

3 unchanged sentences

Three 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:

7 unchanged sentences

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

September 28, 2024

dollars in millions

March 29, 2025

Cash and cash

Other current

dollars in millions

Amortized cost

3 unchanged sentences

Money market funds

dollars in millions

December 28, 2024

1 unchanged sentence

Other current

dollars in millions

Amortized cost

1 unchanged sentence

Unrealized loss

government bonds

Money market funds

2 unchanged sentences

Equity Investments

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.

Non-marketable equity securities

In 2024, the Company entered into a series of investment agreements with a privately held company, pursuant to which the Company agreed to purchase up to $ 25 million of Preferred Stock.

In October 2024, the Company purchased $ 10 million of Preferred Stock in the privately held company.

The Company no longer has an obligation to purchase additional Preferred Stock pursuant to the terms of the applicable Preferred Stock investment agreements.

However, the Company has begun negotiation of amendments to the relevant Preferred Stock investment agreements that would provide the Company the right to purchase up to $ 15 million of additional Preferred Stock at subsequent closings at the Company's discretion.

Final commercial terms for this amendment remain subject to further negotiation.

The investment does not provide the Company the ability to control or have significant influence over the operations of the privately held company.

We have accounted for the investment using the measurement alternative because the securities are not publicly traded and do not have a readily determinable fair value.

Under the measurement alternative, the equity investment is initially recorded at its cost, but the carrying value may be adjusted through earnings upon an impairment or when there is an observable price change involving the same or a similar investment with the same issuer.

As of March 29, 2025 and December 28, 2024, we recorded $ 10 million for our investment as other long-term assets.

There was no impairment or other change to the value of the investment as of March 29, 2025 and December 28, 2024.

NOTE 11 - CONTINGENCIES

On January 16, 2024, a putative class action captioned McAuliffe v.

Mobileye Global Inc., et al., 1:24-CV-00310 (S.D.N.Y.), was filed in the United States District Court for the Southern District of New York against Mobileye and certain of its current and former officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with defendants’ alleged misstatements and omissions concerning the build-up of excess inventory by certain Tier 1 Mobileye customers.

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.

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.

Following the consolidation of the action with a substantively identical case, Le v.

Mobileye Global Inc., et al., 1:24-CV-01390 (S.D.N.Y.), and the appointment of a lead plaintiff, an amended complaint was filed on September 13, 2024.

In response to the defendants’ motion to dismiss, filed on October 25, 2024, lead plaintiff filed a second amended complaint on November 22, 2024.

The second amended complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in connection with defendants’ alleged misstatements and omissions concerning the build-up of excess inventory by certain Tier 1 Mobileye customers, and 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 August 8, 2024.

The second amended complaint also includes claims asserted by an additional plaintiff under Sections 11 and 15 of the Securities Act of 1933 on behalf of putative purchasers of Mobileye Class A common stock offered in Mobileye’s June 5, 2023 secondary public offering.

Mobileye and the individual defendants filed a motion to dismiss the second amended complaint on December 20, 2024.

On January 24, 2025, the lead plaintiff filed a brief in opposition to Mobileye's and the other named defendants' motion to dismiss.

On February 21, 2025, Mobileye and the other named defendants jointly filed a brief in reply to the lead plaintiff's opposition brief.

On April 16, 2025 the Court granted the defendants’ motion and dismissed the second amended complaint in full without leave to amend, closing the case.

The lead plaintiff has thirty days from the date of the Court's order to file a notice of appeal with the U.S.

Court of Appeals for the Second Circuit.

We intend to defend the matter vigorously.

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

No provision was recorded in the condensed consolidated financial statements as of March 29, 2025.

Derivative Action

5 unchanged sentences

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.

MOBILEYE GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

1 unchanged sentence

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.

Following dismissal of the consolidated securities action, the Court ordered the parties to jointly propose a schedule for further proceedings by April 24, 2025.

We intend to defend the derivative claims vigorously.

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.

No provision for the consolidated derivative action was recorded in the condensed consolidated financial statements as of March 29, 2025.

Patent Litigation

On January 26, 2024, Facet Technology Corp.

(“Facet”) sued Mobileye in the U.S.

District Court for the Eastern District of Texas for allegedly infringing two patents.

Captioned Facet Technology Corp.

Mobileye Global, Inc., the complaint alleges that certain Mobileye products directly and indirectly infringe both patents.

The complaint seeks unspecified damages, a permanent injunction, and attorneys’ fees and costs.

On November 4, 2024, Mobileye filed a motion to dismiss asserting improper venue, which the court dismissed without prejudice to refile in view of an amended complaint filed by Facet, adding Mobileye Vision Technologies Ltd.

and Mobileye Inc., each wholly-owned indirect subsidiaries of Mobileye Global Inc., as additional defendants.

On November 7, 2024, Mobileye Vision Technologies Ltd.

and Mobileye Inc sued Facet Technology Corp.

District Court of Minnesota seeking a declaratory judgement that the Mobileye plaintiffs do not infringe either patent.

On March 5, 2025, the Patent Trial and Appeal Board of the US Patent and Trademark Office instituted two Inter Parte Review (IPR) proceedings filed by Mobileye Vision Technologies Ltd.

against the patents asserted by Facet.

On March 15, 2025, the parties agreed and the relevant courts entered orders staying all litigation pending the outcome of both IPRs.

On March 19, 2025, Facet filed requests for reconsideration of both institution decisions.

On April 22, 2025, the Patent Trial and Appeal Board denied Facet's request for reconsideration in respect of one of the institution decisions.

The other request for reconsideration remains pending.

We intend to defend the matter vigorously.

No provision was recorded in the condensed consolidated financial statements as of March 29, 2025.

NOTE 12 - SUBSEQUENT EVENTS

In April 2025, the Company's compensation committee approved the issuance of restricted stock units to be issued under our 2022 Plan.

The total aggregate fair value of RSUs granted was $ 21.4 million, which consisted of 1,621 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