What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-05-09 compared with 2024-11-05 · 85 added, 108 removed, 110 unchanged (64% of the section changed)

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As a result of many factors, such as those set forth under the “Summary of Risk Factors” and “Cautionary Statement About Forward-Looking Statements” sections and elsewhere in this quarterly report, our actual results may differ materially from those anticipated in these forward-looking statements.

Founded in 2013, Navitas is a U.S.

based developer of gallium nitride and silicon carbide power semiconductor devices that provide superior efficiency, performance, size and sustainability relative to existing silicon technology.

Navitas Semiconductor Corporation, a Delaware holding company, operates through its wholly owned subsidiaries, including Navitas Semiconductor Limited and GeneSiC Semiconductor LLC (“GeneSiC”).

Originally founded in 2014 as the Legacy Navitas Semiconductor business (“Legacy Navitas”), we were previously an SEC registrant named Live Oak Acquisition Corp.

II (“Live Oak”).

On October 19, 2021, we completed a business combination (which we refer to as the “Business Combination”) in which, among other transactions, Live Oak acquired Navitas Semiconductor Limited and its subsidiaries, and changed our name to Navitas Semiconductor Corporation.

We acquired GeneSiC Semiconductor in August 2022.

Further details about the Business Combination and the acquisition of GeneSiC Semiconductor can be found in our SEC filings.

Founded in 2014, Navitas is a U.S.-based developer of gallium nitride power integrated circuits that provide superior efficiency, performance, size and sustainability relative to existing silicon technology.

Our solutions offer faster charging, higher power density and greater energy savings compared to silicon-based power systems with the same output power.

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We evaluate various complementary technologies and look to improve our PDK, in order to keep introducing newer generations of GaN technology.

In the three and nine months ended September 30, 2024, we spent approximatel y 82% and 87%, respectively, of our revenue on research and development.

In the three and nine months ended September 30, 2023, we spent approximately 75% and 95%, respectively, of our revenue on research and development.

In the three months ended March 31, 2025 and 2024, we spent approximatel y 90% and 87% , respectively, of our revenue on research and development.

Navitas’ research and development activities are located primarily in the US and China.

May 2023 Public Offering

On May 26, 2023, the Company completed an underwritten public offering (the “May 2023 Public Offering”) of 10,000.000 shares of its Class A common stock at a public offering price of $8.00 per share, before deducting underwriting discounts and commissions.

In connection with the May 2023 Public Offering, the Company granted the underwriters of the offering a 30-day option to purchase up to an additional 1,500,000 shares of the Company’s Class A common stock (the “Option Shares”) from the Company at the same public offering price.

On June 1, 2023, the underwriters exercised in full their option to purchase the Option Shares.

The sale of the Option Shares closed on June 5, 2023.

After deducting underwriting discounts and commissions and before deducting offering expenses payable by the Company, the Company received net proceeds of $75.6 million and $11.3 million from the May 2023 Public Offering and sale of the Option Shares, respectively.

The total net proceeds received by the Company after deducting offering expenses was $86.5 million.

The Company intends to use the net proceeds for working capital and other general corporate purposes, including potential acquisitions or strategic manufacturing investments.

Buyout of Elevation Semiconductor

On January 19, 2023, the Company announced an agreement to acquire the remaining minority interest in its silicon control IC joint venture as well as rights to certain intellectual property from Halo Microelectronics for a total purchase price of $22.4 million in Navitas stock.

As Navitas was already the majority shareholder, financial results from the joint venture have already been reflected in Navitas’ historical financial statements.

The transaction was completed on February 13, 2023.

In connection with the purchase of intellectual property, the Company recognized an intangible asset at its estimated fair value of $4.4 million related to acquired intellectual property.

Execution of At-The-Market Agreement

On March 19, 2025, the Company entered into an At-The-Market Offering Agreement (the "ATM Agreement") with Jefferies LLC ("Jefferies") for the sale of shares of its Class A common stock, par value $0.0001 per share.

Under the terms of the ATM Agreement, the Company may offer and sell shares of its Class A common stock having an aggregate offering price of up to $50,000,000 from time to time through Jefferies, acting as the sales agent.

As of March 31, 2025, the Company has not sold any shares under the ATM agreement.

In connection with establishing the ATM program, the Company incurred offering-related costs of approximately $0.3 million.

Results of Operations

We design, develop and market next-generation power semiconductors including gallium nitride (“GaN”) power integrated circuits (“ICs”), silicon carbide (“SiC”) and associated high-speed silicon system controllers, and digital isolators used in power conversion and charging.

We design, develop and manufacture GaN ICs, SiC MOSFETs and Schottky MPS diodes that deliver best-in-class performance, ruggedness and quality.

Our revenue represents the sale of semiconductors through specialized distributors to original equipment manufacturers (“OEMs”), their suppliers and other end customers.

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• the global and regional economic cycles.

Our product revenue is recognized when the customer obtains control of the product and the timing of recognition is based on the contractual shipping terms of a contract less estimated returns.

• declines in average selling prices due product advances and market competition;

• changes in customer and distributor relationships including the impact of the Q4 2024 disengagement with a significant distributor and the ability to replace the associated volumes with a combination existing and new distributors;

• seasonal demand patterns particularly in mobile and consumer markets.

Our product revenue is recognized when the customer obtains control of the product and the timing of recognition is based on the contractual shipping terms of a contract.

We provide a non-conformity warranty which is not sold separately and does not represent a separate performance obligation.

Our product revenue is diversified across the United States, Europe, and Asia.

We consider the domicile of our end customers, rather than the distributors we sell to directly to be the basis of attributing revenues from external customers to individual countries.

Revenue for the three months ended March 31, 2025 and 2024, excluding channel inventories, were attributable to end customers in the following countries:

Three Months Ended March 31,

Country 2025 2024

China 41 % 60 %

United States 31 16

Asia excluding China 13 15

All others — 1

Total 100 % 100 %

*Impractical to disclose revenue percentages by individual countries within Europe and therefore is presented in total.

Cost of Revenues

Cost of Revenues consists primarily of the cost of semiconductors purchased from subcontractors, including wafer fabrication, assembly, testing and packaging, manufacturing support costs, including labor and overhead (which includes depreciation and amortization) associated with such purchases, final test and wafer level yield fallout, inventory

impairments, consumables, system and shipping costs.

Cost of revenues also includes compensation related to personnel associated with manufacturing, including costs related to cash and share-based employee compensation.

Cost of revenues also includes compensation related to personnel associated with manufacturing, including costs related to cash and stock-based employee compensation.

Research and Development Expense

Costs related to research, design, and development of our products are expensed as incurred.

Research and development expense consists primarily of pre-production costs related to the design and development of our products and technologies, including costs related to cash and share-based employee compensation, benefits and related costs of sustaining our engineering teams, project material costs, third party fees paid to consultants, prototype development expenses, and other costs incurred in the product design and development process.

Research and development expense consists primarily of pre-production costs related to the design and development of our products and technologies, including costs related to cash and stock-based employee compensation, benefits and related costs of sustaining our engineering teams, project material costs, third-party fees paid to consultants, prototype development expenses, write-offs of material to be utilized in research and development, and other costs incurred in the product design and development process.

Selling, General and Administrative Expense

Selling, general and administrative costs include employee compensation, including cash and share-based compensation and benefits for executive, finance, business operations, sales, field application engineers and other administrative personnel.

In addition, it includes marketing and advertising, IT, outside legal, tax and accounting services, insurance, and occupancy costs and related overhead based on headcount.

Selling, general and administrative costs include employee compensation, including cash and stock-based compensation and benefits for executive, finance, business operations, sales, field application engineers and other administrative personnel.

In addition, it includes marketing and advertising, IT, outside legal professional fees and legal settlements, tax and accounting services, insurance, and occupancy costs and related overhead based on headcount.

Selling, general and administrative costs are expensed as incurred.

Interest Income (Expense), net

Interest income (expense), net primarily consists of interest earned from our cash on hand.

Interest income (expense), net primarily consists of interest associated with our royalty agreement.

Dividend Income

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Refer to Note 13 - “Provision for Income Taxes”, in our accompanying condensed consolidated financial statements elsewhere in this quarterly report.

Equity method investment loss

Equity method investment loss consists of our proportionate share of our joint venture’s loss, which we began recognizing in October 2024 when we started accounting for the investment under the equity method.

Results of Operations

The tables and discussion below present our results for the three months ended September 30, 2024 and 2023 (in thousands):

The tables and discussion below present our results for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended

September 30, Change

March 31, Change

Net revenues $ 14,018 $ 23,175 $ (9,157) (40) %

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Amortization of intangible assets 4,734 4,774 (40) (1) %

Restructuring expense 1,469 — 1,469 — %

Total operating expenses 30,611 41,090 (10,479) (26) %

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Total other income, net 8,837 27,964 (19,127) (68) %

Income (loss) before income taxes (18,605) 7,542 (26,147) (347) %

Income tax provision 125 23 102 443 %

Net income (loss) (18,730) 7,519 (26,249) (349) %

Net loss attributable to noncontrolling interests — — — — %

Net income (loss) attributable to controlling interests $ (18,730) $ 7,519 (26,249) (349) %

Nine Months Ended

September 30, Change

(dollars in thousands) 2024 2023

Net revenues $ 65,324 $ 53,399 $ 11,925 22 %

Cost of revenues (exclusive of amortization of intangible assets included below) 39,207 33,322 5,885 18 %

Operating expenses:

Research and development 57,028 50,740 6,288 12 %

Selling, general and administrative 46,509 46,629 (120) — %

Amortization of intangible assets 14,265 14,046 219 2 %

Total operating expenses 117,802 111,415 6,387 6 %

Loss from operations (91,685) (91,338) (347) — %

Other income (expense), net:

Interest income (expense), net (109) 1,298 (1,407) (108) %

Dividend income 4,251 2,107 2,144 102 %

Gain (loss) from change in fair value of earnout liabilities 42,920 (25,503) 68,423 (268) %

Other income 140 50 90 180 %

Total other income (expense), net 47,202 (22,048) 69,250 (314) %

Loss before income taxes (16,467) (3,611) (12,856) 356 %

Income tax provision (benefit) 256 (13) 269 (2069) %

Income tax provision 82 70 12 17 %

Equity method investment loss (280) — (280) — %

Net loss $ (16,829) $ (3,681) $ (13,148) 357 %

Net loss attributable to noncontrolling interests — (518) 518 — %

Net loss attributable to controlling interests $ (44,739) $ (112,855) 68,116 (60) %

Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023

Revenue for the three months ended September 30, 2024 was $21.7 million compared to $22.0 million for the three months ended September 30, 2023, a decrease of $0.3 million, or 1%.

The slight decline in sales was due to the decline in high power markets partially offset by growth in mobile compared to the three months ended September 30, 2023.

Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024

Revenue for the three months ended March 31, 2025 was $14.0 million compared to $23.2 million for the three months ended March 31, 2024, a decrease of $9.2 million, or 40%.

The decline in sales was due to the decline in mobile, EV, and industrial markets.

Cost of Revenues

Cost of revenues for the three months ended September 30, 2024 was $13.1 million compared to $14.9 million for the three months ended September 30, 2023, a decrease of $1.8 million or 12%.

The decrease was primarily driven by an inventory write-off of $2.0 million that occurred during the three months ended September 30, 2023 slightly offset by product mix.

Cost of revenues for the three months ended March 31, 2025 was $8.7 million compared to $13.7 million for the three months ended March 31, 2024, a decrease of $4.9 million or 36%.

The decrease was primarily driven by a decline in sales coupled with product mix.

Research and Development Expense

Research and development expense for the three months ended September 30, 2024 of $17.8 million increased by $1.3 million, or 8%, when compared to the three months ended September 30, 2023.

This is primarily driven by an increase in headcount-related expenses and software costs as we build out our target end markets.

Research and development expense for the three months ended March 31, 2025 of $12.7 million decreased by $7.6 million, or 37%, when compared to the three months ended March 31, 2024.

This is primarily driven by a decrease in stock-based compensation of approximately $3.5 million, coupled with a decrease in headcount and employee costs as a result of the Company’s 2024 reduction in force (“2024 Restructuring Plan”) announced in Q4 of fiscal year 2024.

Additionally, decline of approximately $1.9 million related to decreases in R&D product development costs.

Selling, General and Administrative Expense

Selling, general and administrative expense for the three months ended September 30, 2024 of $15.0 million increased by $0.6 million, or 4%, when compared to the three months ended September 30, 2023, driven by increases in professional fees, salaries and benefits and a $0.8 million increase in the allowance for expected credit losses, offset by lower stock-based compensation expense.

Selling, general and administrative expense for the three months ended March 31, 2025 of $11.7 million decreased by $4.3 million, or 27%, when compared to the three months ended March 31, 2024.

This was primarily driven by a decrease in stock-based compensation of approximately $3.0 million, coupled with a decrease in headcount and employee costs as a result of the Company’s 2024 reduction in force (“2024 Restructuring Plan”) announced in Q4 of fiscal year 2024.

Amortization of Intangible Assets

Amortization of intangible assets remained the same as we did not acquire new intangible assets.

Amortization of intangible assets remained fairly the same as we did not acquire new intangible assets.

Restructuring Expenses

We announced cost-reduction plans (“2024 Restructuring Plan” and “2025 Restructuring Plan”).

The plans include a reduction in headcount with the majority of the costs consisting of employee severance and benefits.

We incurred $1.5 million related to this plan for the three months ended March 31, 2025.

Other Income (Expense), net

Dividend income consists of income earned on our money market treasury funds that are recorded as cash equivalents on our consolidated balance sheet.

Decrease of $0.4 million is primarily due to decreases in our investment balances in September 2024 compared to September 2023.

During the three months ended September 30, 2024, we recognized a $9.2 million gain from the change in fair value of our earn-out liabilities.

The decrease in the gain of our earn-out liabilities of $25.3 million was primarily a result of the decrease of the closing price of our Class A common stock listed on the Nasdaq, resulting in the decrease in the estimated fair value of the earnout shares from $4.53 as of September 30, 2023 to $0.46 as of September 30, 2024.

Decrease of $0.9 million is primarily due to decreases in our investment balances in March 31, 2025 compared to March 31, 2024.

During the three months ended March 31, 2025, we recognized a $8.1 million gain from the change in fair value of our earn-out liabilities.

The decrease in the gain of our earn-out liabilities of $18.1 million was primarily a result of the decrease of the closing price of our Class A common stock listed on the Nasdaq, resulting in the decrease in the estimated fair value of the earnout shares from $2.42 as of March 31, 2024 to $0.24 as of March 31, 2025.

Income Tax Provision

Income tax provision for the three months ended September 30, 2024 increased $0.1 million when compared to the income tax benefit of $0.0 million for the three months ended September 30, 2023.

We expect our tax rate to remain close to zero in the near term due to full valuation allowances against deferred tax assets.

Nine Months Ended September 30, 2024 Compared to the Nine Months Ended September 30, 2023

Revenue for the nine months ended September 30, 2024 was $65.3 million compared to $53.4 million for the nine months ended September 30, 2023, an increase of $11.9 million, or 22%.

Sales have increased due to strong mobile and consumer markets.

Cost of Revenues

Cost of revenues for the nine months ended September 30, 2024 was $39.2 million compared to $33.3 million for the nine months ended September 30, 2023, an increase of $5.9 million or 18%.

The increase was primarily driven by increases in mobile and consumer product revenue partially offset by the inventory write-off of $2.0 million from September 2023.

Research and Development Expense

Research and development expense for the nine months ended September 30, 2024 of $57.0 million increased by $6.3 million, or 12%, when compared to the nine months ended September 30, 2023.

This is primarily driven by an increase in product development as it relates to EV, enterprise and solar.

Additionally, salaries and benefits have increased as we build out our target end markets.

Selling, General and Administrative Expense

Selling, general and administrative expense for the nine months ended September 30, 2024 of $46.5 million decreased by $0.1 million, or —%, when compared to the nine months ended September 30, 2023.

The decrease is primarily driven by a decrease in stock-based compensation expense of $4.1 million offset by increases in professional fees, sales force expenses, and coupled with the increase in the allowance for expected credit losses described above.

Amortization of Intangible Assets

Amortization of intangible assets remained fairly consistent as we did not acquire new intangible assets.

Other Income (Expense), net

Net interest (expense) income for the nine months ended September 30, 2024 was $(0.1) million compared to $1.3 million net interest income (expense) for the nine months ended September 30, 2023, primarily due to the higher interest rate received on money markets funds in the prior year.

Increase of $2.1 million in dividend income is primarily due to the timing of when we transferred money into our money market treasury funds.

As a result, the prior-year figure reflects only six months of activity compared to nine months in the current period.

During the nine months ended September 30, 2024, we recognized a $42.9 million gain from the change in fair value of our earn-out liabilities.

The increase in the gain of our earn-out liabilities of $68.4 million was primarily a result of the decrease of the closing price of our Class A common stock listed on the Nasdaq, resulting in the decrease in the estimated fair value of the earnout shares from $4.53 as of September 30, 2023 to $0.46 as of September 30, 2024.

Income Tax Provision (Benefit)

Income tax provision for the nine months ended September 30, 2024 increased $0.3 million when compared to the income tax benefit of $0.0 million for the nine months ended September 30, 2023.

Income tax provision for the three months ended March 31, 2025 remained relatively flat when compared to the income tax benefit of $0.1 million for the three months ended March 31, 2024.

We expect our tax rate to remain close to zero in the near term due to full valuation allowances against deferred tax assets.

Equity method investment loss

In October 2024, we began applying the equity method to account for our joint venture investment.

We recognized our proportionate share of the joint venture’s loss from the quarter, resulting in a net loss of $0.3 million for the quarter ended March 31, 2025.

Liquidity and Capital Resources

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In addition, we use cash to conduct research and development, incur capital expenditures, and fund our debt service obligations.

On March 19, 2025, the Company entered into an At-The-Market Offering Agreement (the "ATM Agreement") with Jefferies LLC for the sale of up to $50,000,000 of its Class A common stock.

Under the agreement, the Company may sell shares from time to time through Jefferies as the sales agent.

As of March 31, 2025, the Company has not sold any shares related to the ATM Agreement.

We expect to continue to incur net operating losses and negative cash flows from operations and we expect our research and development expenses, general and administrative expenses and capital expenditures will continue to increase.

We expect our expenses and capital requirements to increase in connection with our ongoing initiatives to expand our operations, product offerings and end customer base.

As of September 30, 2024, we had cash and cash equiva lents of $98.6 million.

As of March 31, 2025, we had cash and cash equiva lents of $75.1 million.

We currently expect to fund our cash requirements through the use of cash on hand.

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We can provide no assurance that additional financing will be available at all or, if available, that we would be able to obtain additional financing on terms favorable to us.

The following table summarizes our consolidated cash flows for the nine months ended September 30, 2024 and 2023 (in thousands):

September 30, 2024 September 30, 2023

The following table summarizes our consolidated cash flows for the three months ended March 31, 2025 and 2024 (in thousands):

March 31, 2025 March 31, 2024

Consolidated Statements of Cash Flow Data:

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$ 949 $ 2,024

We derive liquidity primarily from equity financing activities.

As of September 30, 2024, our balance of cash and cash equivalents was $98.6 million, which is a decrease of $54.2 million or 35% compared to December 31, 2023.

We derive liquidity primarily from cash on hand and equity financing activities.

As of March 31, 2025, our balance of cash and cash equivalents was $75.1 million, which is a decrease of $11.6 million or 13% compared to December 31, 2024.

Operating Activities

For the nine months ended September 30, 2024, net cash used in operating activities was $48.6 million, which primarily reflects a net loss of $44.7 million.

This decrease to operating cash flows is partially offset by adjustments for non-cash share-based compensation of $38.0 million, depreciation of $2.2 million, non-cash gains of $42.9 million in earnout liabilities, amortization of intangible assets of $14.3 million, and an aggregate cash used in operating assets and liabilities of $18.2 million.

Specifically, increases in accounts receivables of $1.5 million, decreases in accounts payable, accrued compensation and other expenses of $9.9 million, decline in customer deposits and deferred revenue of $8.9 million, partially offset by decreases in inventories and prepaid expenses and other current assets of $3.0 million.

For the nine months ended September 30, 2023, net cash used in operating activities was $17.4 million, which primarily reflects a net loss of $113.4 million.

This decrease to operating cash flows are partially offset by adjustments for non-cash share-based compensation of $41.8 million, non-cash losses of $25.5 million in earnout liabilities, amortization of intangible assets of $14.0 million, and an aggregate cash provided by operating assets and liabilities of $11.5 million.

Specifically, increases in deferred revenue of $13.3 million, accrued compensation expense of $12.2 million, increases in accrued expenses of $3.2 million, and increases in account payable of $2.5 million, partially offset by a $8.4 million increase in account receivable and $1.6 million increase in other assets, a $0.9 million increase in prepaid expenses and other, and a decrease in operating lease liabilities of $1.5 million.

For the three months ended March 31, 2025, net cash used in operating activities was $13.5 million, which primarily reflects a net loss of $16.8 million, adjusted for a non-cash gain of $8.1 million related to changes in the fair value of our earnout liability, non-cash stock-based compensation of $7.0 million, amortization of intangible assets of $4.7 million, depreciation of $0.8 million and an aggregate cash used in operating assets and liabilities of $2.2 million.

Specifically, operating cash flow was mainly impacted by increases in inventories of $0.6 million, increases in prepaid expenses and other current assets of $0.6 million, decreases in lease liabilities of $0.5 million, a decrease in accounts payable, accrued compensation, and other accrued expenses of $1.7 million, partially offset with decreases in accounts receivables of $1.2 million.

For the three months ended March 31, 2024, net cash used in operating activities was $19.8 million, which primarily reflects a net loss of $3.7 million offset by adjustments for non-cash stock-based compensation of $13.5 million, non-cash gains of $26.2 million in earnout liabilities, amortization of intangible assets of $4.8 million, and an aggregate cash used in operating assets and liabilities of $7.8 million.

Specifically, increases in inventories of $10 million due to wafer purchases, decreases in customer deposits of $2.9 million partially offset by a $3.7 million decrease in accounts receivable and a decrease in accounts payable, accrued compensation and other expenses of $0.5 million.

Investing Activities

Net cash used in investing activities for the nine months ended September 30, 2024 of $8.7 million was primarily due to $2.5 million cash funding of a joint venture and $6.2 million for purchases of fixed assets.

Net cash used in investing activities for the nine months ended September 30, 2023 of $4.4 million was primarily due to $1.0 million cash funding of a joint venture and $3.4 million for purchases of fixed assets.

Net cash used in investing activities for the three months ended March 31, 2025 was primarily attributable to minimal fixed asset purchases.

Net cash used in investing activities for the three months ended March 31, 2024 of $5.4 million was primarily due to $2.5 million cash funding of a joint venture and $2.9 million for purchases of fixed assets.

Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2024 of $3.1 million was primarily due to proceeds from stock option exercises of $0.4 million and proceeds from our employee stock purchase plan of $2.7 million.

Net cash provided by financing activities for the nine months ended September 30, 2023 of $88.2 million was primarily due to proceeds from the issuance of common stock in May 2023 of $86.9 million and proceeds from stock option exercises of $1.8 million, offset by the payment of May 2023public offering costs of $0.5 million.

Net cash provided by financing activities for the three months ended March 31, 2025 of $0.9 million was primarily due to proceeds from stock option exercises of $0.1 million and proceeds from our employee stock purchase plan of $0.8 million.

Net cash provided by financing activities for the three months ended March 31, 2024 of $2.0 million was primarily due to proceeds from stock option exercises of $0.2 million and proceeds from our employee stock purchase plan of $1.8 million.

Contractual Obligations, Commitments and Contingencies

In the ordinary course of business, we enter into contractual arrangements that may require future cash payments.

As of September 30, 2024, our non-cancellable contractual arrangements consisted entirely of lease obligations.

Refer to Note 8 - Leases for further information.

As of March 31, 2025, our non-cancellable contractual arrangements consisted of lease obligations and an agreement for the purchase of equipment.

Refer to Note 8 - “Leases” for further information on our minimum future payments related to lease obligations.

In December 2024, we entered into an agreement with a vendor for the purchase of equipment, requiring quarterly installment payments.

Refer to Note 15 - “Commitments and Contingencies” for additional details on purchase obligations.

Off-Balance Sheet Commitments and Arrangements

As of September 30, 2024, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

As of March 31, 2025, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

Critical Accounting Policies and Estimates

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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 2. Management’s Discussion and Analysis