Cepton, Inc. Reports Third Quarter 2022 Results

Actual results, performance or achievements may, and are likely to, differ materially, and potentially adversely, from any projections and forward-looking statements and the assumptions on which those forward-looking statements were based. There can be no assurance that the data contained herein is reflective of future performance to any degree. You are cautioned not to place undue reliance on forward-looking statements as a predictor of future performance as projected financial information and other information are based on estimates and assumptions that are inherently subject to various significant risks, uncertainties and other factors, many of which are beyond Cepton’s control.

Non-GAAP Financial Measures

Some of the financial information and data contained in this press release, such as non-GAAP net loss and adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Non-GAAP net loss is defined as GAAP net income (loss) excluding stock-based compensation, non-recurring transaction expenses, and gain or loss on remeasurement of earnout liability and warrants. Adjusted EBITDA is defined as non-GAAP net loss before interest expenses, provision for income taxes, and depreciation and amortization.

Cepton believes these non-GAAP financial measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Cepton’s financial condition and results of operations. Cepton believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating actual and projected operating results and trends in comparing Cepton’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Cepton also believes that adjusted EBITDA is useful to investors and analysts in assessing our operating performance during the periods these charges were incurred on a consistent basis with the periods during which these charges were not incurred. Our presentation of adjusted EBITDA should not be considered as an inference that our future results and financial position will be unaffected by unusual items. Cepton does not consider these non-GAAP financial measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and other amounts that are required by GAAP to be recorded in Cepton’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and other amounts are excluded or included in determining these non-GAAP financial measures.

CEPTON, INC. AND SUBSIDIARIES

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Loss and Non-GAAP Adjusted EBITDA

(In thousands, except share and share data)

(unaudited)

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income (loss)

$

(17,411

)

 

$

(7,862

)

 

$

24,631

 

 

$

(26,422

)

Stock-based compensation

 

2,368

 

 

 

1,263

 

 

 

5,954

 

 

 

3,339

 

Non-recurring transaction expenses

 

300

 

 

 

 

 

 

3,009

 

 

 

 

Loss (gain) on remeasurement of earnout liability

 

1,440

 

 

 

 

 

 

(70,868

)

 

 

 

Loss (gain) on remeasurement of warrant liability

 

135

 

 

 

 

 

 

(2,549

)

 

 

 

Non-GAAP net loss

$

(13,168

)

 

$

(6,599

)

 

$

(39,823

)

 

$

(23,083

)

Interest expense

 

404

 

 

 

 

 

 

1,792

 

 

 

 

Provision for income taxes

 

5

 

 

 

5

 

 

 

21

 

 

 

16

 

Depreciation and amortization

 

77

 

 

 

55

 

 

 

224

 

 

 

151

 

Non-GAAP adjusted EBITDA

$

(12,682

)

 

$

(6,539

)

 

$

(37,786

)

 

$

(22,916

)

 

 

 

 

 

 

 

 

GAAP net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.11

)

 

$

(0.12

)

 

$

0.17

 

 

$

(0.39

)

Diluted

$

(0.11

)

 

$

(0.12

)

 

$

0.16

 

 

$

(0.39

)

Non-GAAP net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

$

(0.08

)

 

$

(0.10

)

 

$

(0.28

)

 

$

(0.34

)

Diluted

$

(0.08

)

 

$

(0.10

)

 

$

(0.28

)

 

$

(0.34

)

Shares used in computing GAAP net income (loss) per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

155,689,414

 

 

 

67,199,734

 

 

 

142,744,165

 

 

 

67,000,984

 

Diluted

 

155,689,414

 

 

 

67,199,734

 

 

 

152,048,431

 

 

 

67,000,984

 

Shares used in computing Non-GAAP net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic

 

155,689,414

 

 

 

67,199,734

 

 

 

142,744,165

 

 

 

67,000,984

 

Diluted

 

155,689,414

 

 

 

67,199,734

 

 

 

142,744,165

 

 

 

67,000,984

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(unaudited)

 

 

September 30,
2022

 

December 31,
2021

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,312

 

 

$

3,654

 

Short-term investments

 

18,306

 

 

 

2,836

 

Accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively

 

1,386

 

 

 

500

 

Inventories

 

2,516

 

 

 

2,523

 

Right-of-use assets

 

474

 

 

 

 

Prepaid expenses and other current assets

 

4,864

 

 

 

6,998

 

Total current assets

 

30,858

 

 

 

16,511

 

Property and equipment, net

 

840

 

 

 

480

 

Other assets

 

1,137

 

 

 

293

 

Total assets

$

32,835

 

 

$

17,284

 

 

 

 

 

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,740

 

 

$

2,547

 

Operating lease liabilities

 

653

 

 

 

 

Accrued expenses and other current liabilities

 

3,399

 

 

 

2,777

 

Total current liabilities

 

5,792

 

 

 

5,324

 

Long-term debt

 

9,370

 

 

 

 

Warrant liability

 

766

 

 

 

 

Earnout liability

 

4,130

 

 

 

 

Other long-term liabilities

 

343

 

 

 

23

 

Total liabilities

 

20,401

 

 

 

5,347

 

 

 

 

 

Commitments and contingencies (Note 17)

 

 

 

 

 

 

 

Convertible preferred stock:

 

 

 

Convertible preferred stock – Par value $0.00001 per share – No shares authorized at September 30, 2022; 22,806,009 shares authorized at December 31, 2021; No shares issued and outstanding at September 30, 2022; 21,671,491 shares issued and outstanding at December 31, 2021 (aggregate liquidation preference of $96.7 million at December 31, 2021)

 

 

 

 

99,470

 

 

 

 

 

Stockholders’ equity (deficit):

 

 

 

Preferred stock – Par value $0.00001 per share – 5,000,000 shares authorized at September 30, 2022; No shares authorized at December 31, 2021; No shares issued and outstanding at September 30, 2022 or December 31, 2021

 

 

 

 

 

Common stock – Par value $0.00001 per share – 350,000,000 and 75,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively; 156,235,659 and 67,645,189 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

2

 

 

 

 

Class F stock – Par value $0.00001 per share – No shares of Class F stock authorized as of September 30, 2022; 8,402,000 shares authorized at December 31, 2021; No shares of Class F stock issued and outstanding as of September 30, 2022; 8,372,143 shares issued and outstanding at December 31, 2021

 

 

 

 

 

Additional paid-in capital

 

83,332

 

 

 

7,949

 

Accumulated other comprehensive loss

 

(92

)

 

 

(43

)

Accumulated deficit

 

(70,808

)

 

 

(95,439

)

Total stockholders’ equity (deficit)

 

12,434

 

 

 

(87,533

)

Total liabilities, convertible preferred stock and stockholders' equity (deficit)

$

32,835

 

 

$

17,284

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Lidar sensor and prototype revenue

$

1,778

 

 

$

656

 

 

$

4,642

 

 

$

1,989

 

Development revenue

 

26

 

 

 

1,235

 

 

 

1,207

 

 

 

1,235

 

Total revenue

$

1,804

 

 

$

1,891

 

 

$

5,849

 

 

$

3,224

 

 

 

 

 

 

 

 

 

Lidar sensor and prototype cost of revenue

 

1,872

 

 

 

617

 

 

 

5,608

 

 

 

3,053

 

Development cost of revenue

 

3

 

 

 

376

 

 

 

600

 

 

 

376

 

Total cost of revenue

 

1,875

 

 

 

993

 

 

 

6,208

 

 

 

3,429

 

Gross profit (loss)

 

(71

)

 

 

898

 

 

 

(359

)

 

 

(205

)

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

8,227

 

 

 

6,331

 

 

 

24,368

 

 

 

17,321

 

Selling, general and administrative

 

6,722

 

 

 

3,520

 

 

 

21,954

 

 

 

9,992

 

Total operating expenses

 

14,949

 

 

 

9,851

 

 

 

46,322

 

 

 

27,313

 

Operating loss

 

(15,020

)

 

 

(8,953

)

 

 

(46,681

)

 

 

(27,518

)

Other income (expense)

 

 

 

 

 

 

 

Change in fair value of earnout liability

 

(1,440

)

 

 

 

 

 

70,868

 

 

 

 

Change in fair value of warrant liability

 

(135

)

 

 

 

 

 

2,549

 

 

 

 

Other income (expense), net

 

(493

)

 

 

1,096

 

 

 

(487

)

 

 

1,098

 

Interest (expense) income, net

 

(318

)

 

 

 

 

 

(1,597

)

 

 

14

 

Income (loss) before income taxes

 

(17,406

)

 

 

(7,857

)

 

 

24,652

 

 

 

(26,406

)

Provision for income taxes

 

(5

)

 

 

(5

)

 

 

(21

)

 

 

(16

)

 

 

 

 

 

 

 

 

Net income (loss)

$

(17,411

)

 

$

(7,862

)

 

$

24,631

 

 

$

(26,422

)

 

 

 

 

 

 

 

 

Net income (loss) per share, basic

$

(0.11

)

 

$

(0.12

)

 

$

0.17

 

 

$

(0.39

)

Net income (loss) per share, diluted

$

(0.11

)

 

$

(0.12

)

 

$

0.16

 

 

$

(0.39

)

Weighted-average common shares, basic

 

155,689,414

 

 

 

67,199,734

 

 

 

142,744,165

 

 

 

67,000,984

 

Weighted-average common shares, diluted

 

155,689,414

 

 

 

67,199,734

 

 

 

152,048,431

 

 

 

67,000,984

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(17,411

)

 

$

(7,862

)

 

$

24,631

 

 

$

(26,422

)

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

Changes in unrealized gain (loss) on available-for-sale securities

 

13

 

 

 

 

 

 

(35

)

 

 

(4

)

Foreign currency translation adjustments

 

(2

)

 

 

(6

)

 

 

(14

)

 

 

(17

)

Total other comprehensive income ( loss), net of tax

 

11

 

 

 

(6

)

 

 

(49

)

 

 

(21

)

Comprehensive income (loss)

$

(17,400

)

 

$

(7,868

)

 

$

24,582

 

 

$

(26,443

)

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

 

 

Nine Months Ended
September 30,

 

 

2022

 

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income (loss)

$

24,631

 

 

$

(26,422

)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

224

 

 

 

151

 

Stock-based compensation

 

5,954

 

 

 

3,339

 

Amortization of right-of-use asset

 

993

 

 

 

 

Amortization, other

 

838

 

 

 

246

 

Change in fair value of earnout liability

 

(70,868

)

 

 

 

Change in fair value of warrant liability

 

(2,549

)

 

 

 

Loss on disposal of property and equipment

 

 

 

 

42

 

Gain from debt forgiveness

 

 

 

 

(1,121

)

Other

 

181

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

(886

)

 

 

(490

)

Inventories

 

7

 

 

 

583

 

Prepaid expenses and other current assets

 

(472

)

 

 

(4,413

)

Other long-term assets

 

(864

)

 

 

(279

)

Accounts payable

 

(807

)

 

 

929

 

Accrued expenses and other current liabilities

 

962

 

 

 

1,374

 

Operating lease liabilities

 

(1,169

)

 

 

 

Other long-term liabilities

 

320

 

 

 

(1,163

)

Net cash used in operating activities

 

(43,505

)

 

 

(27,224

)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchases of property and equipment

 

(584

)

 

 

(162

)

Purchases of short-term investments

 

(32,368

)

 

 

(8,455

)

Proceeds from sales of short-term investments

 

8,303

 

 

 

3,615

 

Proceeds from maturities of short-term investments

 

8,624

 

 

 

28,200

 

Net cash provided by (used in) investing activities

 

(16,025

)

 

 

23,198

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from Business Combination and private offering

 

76,107

 

 

 

 

Payments of Business Combination and private offering transaction costs

 

(29,031

)

 

 

 

Proceeds from issuance of debt and warrants, net of debt discount

 

9,724

 

 

 

 

Proceeds from issuance of common stock options

 

707

 

 

 

386

 

Proceeds from issuance of common stock

 

1,700

 

 

 

 

Net cash provided by financing activities

 

59,207

 

 

 

386

 

 

 

 

 

Effect of exchange rate changes on cash

 

(19

)

 

 

(18

)

 

 

 

 

Net decrease in cash and cash equivalents

 

(342

)

 

 

(3,658

)

Cash and cash equivalents, beginning of period

 

3,654

 

 

 

11,312

 

Cash and cash equivalents, end of period

$

3,312

 

 

$

7,654

 





© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise