Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future results that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the statements made in Mr. Aggarwal’s quote and under the caption “Business Outlook.” Forward-looking statements are identified by words such as “expects” or similar expressions. These include, but are not limited to, Everspin’s future financial performance, including the outlook for first quarter 2023 results. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 9, 2022, and its Quarterly Reports on Form 10-Q filed with the SEC during 2022, as well as in its subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise, except as required by law.
EVERSPIN TECHNOLOGIES, INC. Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
December 31, |
||||||
|
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
26,795 |
|
|
$ |
21,409 |
|
Accounts receivable, net |
|
|
10,665 |
|
|
|
8,193 |
|
Inventory |
|
|
6,683 |
|
|
|
6,396 |
|
Prepaid expenses and other current assets |
|
|
604 |
|
|
|
762 |
|
Total current assets |
|
|
44,747 |
|
|
|
36,760 |
|
Property and equipment, net |
|
|
3,883 |
|
|
|
973 |
|
| Right-of-use assets |
|
|
6,641 |
|
|
|
913 |
|
| Other assets |
|
|
62 |
|
|
|
734 |
|
| Total assets |
|
$ |
55,333 |
|
|
$ |
39,380 |
|
|
|
|
|
|
|
||||
| Liabilities and Stockholders’ Equity |
|
|
|
|
||||
| Current liabilities: |
|
|
|
|
||||
| Accounts payable |
|
$ |
2,778 |
|
|
$ |
1,776 |
|
| Accrued liabilities |
|
|
3,533 |
|
|
|
3,579 |
|
| Deferred revenue |
|
|
821 |
|
|
|
832 |
|
| Current portion of long-term debt |
|
|
2,594 |
|
|
|
3,370 |
|
| Lease liabilities, current portion |
|
|
1,122 |
|
|
|
724 |
|
| Other liabilities |
|
|
27 |
|
|
|
50 |
|
| Total current liabilities |
|
|
10,875 |
|
|
|
10,331 |
|
| Long-term debt, net of current portion |
|
|
— |
|
|
|
1,529 |
|
| Lease liabilities, net of current portion |
|
|
5,580 |
|
|
|
68 |
|
| Long-term income tax liability |
|
|
214 |
|
|
|
214 |
|
| Total liabilities |
|
$ |
16,669 |
|
|
$ |
12,142 |
|
| Commitments and contingencies (Note 5) |
|
|
|
|
||||
| Stockholders’ equity: |
|
|
|
|
||||
| Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of December 31, 2022 and 2021 |
|
|
— |
|
|
|
— |
|
| Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 20,374,288 and 19,858,460 shares issued and outstanding as of December 31, 2022 and 2021 |
|
|
2 |
|
|
|
2 |
|
| Additional paid-in capital |
|
|
185,364 |
|
|
|
180,067 |
|
| Accumulated deficit |
|
|
(146,702 |
) |
|
|
(152,831 |
) |
| Total stockholders’ equity |
|
|
38,664 |
|
|
|
27,238 |
|
| Total liabilities and stockholders’ equity |
|
$ |
55,333 |
|
|
$ |
39,380 |
|
| EVERSPIN TECHNOLOGIES, INC. Statements of Income and Comprehensive Income (In thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
|
Year Ended December 31, |
||||||
|
|
|
|
2022 |
|
|
|
2021 |
|
| Product sales |
|
$ |
55,032 |
|
|
$ |
43,931 |
|
| Licensing, royalty, patent, and other revenue |
|
|
4,953 |
|
|
|
11,215 |
|
| Total revenue |
|
|
59,985 |
|
|
|
55,146 |
|
| Cost of product sales |
|
|
25,112 |
|
|
|
21,045 |
|
| Cost of licensing, royalty, patent, and other revenue |
|
|
928 |
|
|
|
1,029 |
|
| Total cost of sales |
|
|
26,040 |
|
|
|
22,074 |
|
| Gross profit |
|
|
33,945 |
|
|
|
33,072 |
|
| Operating expenses: 1 |
|
|
|
|
||||
| Research and development |
|
|
11,108 |
|
|
|
12,628 |
|
| General and administrative |
|
|
11,741 |
|
|
|
10,949 |
|
| Sales and marketing |
|
|
4,869 |
|
|
|
4,460 |
|
| Total operating expenses |
|
|
27,718 |
|
|
|
28,037 |
|
| Income from operations |
|
|
6,227 |
|
|
|
5,035 |
|
| Interest expense |
|
|
(274 |
) |
|
|
(547 |
) |
| Other income (expense), net |
|
|
190 |
|
|
|
(141 |
) |
| Net income before income taxes |
|
|
6,143 |
|
|
|
4,347 |
|
| Income tax expense |
|
|
(14 |
) |
|
|
(4 |
) |
| Net income and comprehensive income |
|
$ |
6,129 |
|
|
$ |
4,343 |
|
| Net income per common share: |
|
|
|
|
||||
| Basic |
|
$ |
0.30 |
|
|
$ |
0.22 |
|
| Diluted |
|
$ |
0.29 |
|
|
$ |
0.22 |
|
| Weighted average shares of common stock outstanding: |
|
|
|
|
||||
| Basic |
|
|
20,130,336 |
|
|
|
19,400,124 |
|
| Diluted |
|
|
20,775,925 |
|
|
|
19,972,145 |
|
|
|
|
|
|
|
||||
| 1 Operating expenses include stock-based compensation as follows: |
||||||||
| Research and development |
|
$ |
1,704 |
|
|
$ |
1,280 |
|
| General and administrative |
|
|
2,190 |
|
|
|
1,465 |
|
| Sales and marketing |
|
|
514 |
|
|
|
482 |
|
| Total stock-based compensation |
|
$ |
4,408 |
|
|
$ |
3,227 |
|
| EVERSPIN TECHNOLOGIES, INC. Statements of Cash Flows (In thousands) (Unaudited) |
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|
|
|
Year Ended December 31, |
||||||
|
|
|
|
2022 |
|
|
|
2021 |
|
| Cash flows from operating activities |
|
|
|
|
||||
| Net income |
|
$ |
6,129 |
|
|
$ |
4,343 |
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
| Depreciation and amortization |
|
|
982 |
|
|
|
1,455 |
|
| Gain on sale of property and equipment |
|
|
(167 |
) |
|
|
— |
|
| Stock-based compensation |
|
|
4,408 |
|
|
|
3,227 |
|
| Non-cash warrant revaluation |
|
|
(23 |
) |
|
|
19 |
|
| Non-cash interest expense |
|
|
105 |
|
|
|
319 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
||||
| Accounts receivable |
|
|
(2,472 |
) |
|
|
(586 |
) |
| Inventory |
|
|
(287 |
) |
|
|
(675 |
) |
| Prepaid expenses and other current assets |
|
|
158 |
|
|
|
(492 |
) |
| Other assets |
|
|
(28 |
) |
|
|
11 |
|
| Accounts payable |
|
|
563 |
|
|
|
(571 |
) |
| Accrued liabilities |
|
|
(46 |
) |
|
|
1,696 |
|
| Deferred revenue |
|
|
(11 |
) |
|
|
832 |
|
| Lease liabilities |
|
|
182 |
|
|
|
(219 |
) |
| Net cash provided by operating activities |
|
|
9,493 |
|
|
|
9,359 |
|
| Cash flows from investing activities |
|
|
|
|
||||
| Purchases of property and equipment |
|
|
(2,788 |
) |
|
|
(1,030 |
) |
| Proceeds received from sale of property and equipment |
|
|
202 |
|
|
|
— |
|
| Net cash used in investing activities |
|
|
(2,586 |
) |
|
|
(1,030 |
) |
| Cash flows from financing activities |
|
|
|
|
||||
| Payments on long-term debt |
|
|
(2,400 |
) |
|
|
(3,400 |
) |
| Payments of debt issuance costs |
|
|
(10 |
) |
|
|
(11 |
) |
| Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
|
|
889 |
|
|
|
1,892 |
|
| Net cash used in financing activities |
|
|
(1,521 |
) |
|
|
(1,519 |
) |
| Net increase in cash and cash equivalents |
|
|
5,386 |
|
|
|
6,810 |
|
| Cash and cash equivalents at beginning of period |
|
|
21,409 |
|
|
|
14,599 |
|
| Cash and cash equivalents at end of period |
|
$ |
26,795 |
|
|
$ |
21,409 |
|
| Supplementary cash flow information: |
|
|
|
|
||||
| Interest paid |
|
$ |
169 |
|
|
$ |
228 |
|
| Operating cash flows paid for operating leases |
|
$ |
1,320 |
|
|
$ |
1,603 |
|
| Financing cash flows paid for finance leases |
|
$ |
11 |
|
|
$ |
— |
|
| Non-cash investing and financing activities: |
|
|
|
|
||||
| Right-of-use assets obtained in exchange for operating lease liabilities |
|
$ |
6,837 |
|
|
$ |
— |
|
| Right-of-use assets obtained in exchange for finance lease liabilities |
|
$ |
36 |
|
|
$ |
— |
|
| Purchases of property and equipment in accounts payable and accrued liabilities |
|
$ |
807 |
|
|
$ |
340 |
|
| Bonus settled in shares of common stock |
|
$ |
— |
|
|
$ |
364 |
|
| EVERSPIN TECHNOLOGIES, INC. Adjusted EBITDA Reconciliation (In thousands) (Unaudited) |
||||||
|
|
|
Year Ended December 31, |
||||
|
|
|
2022 |
|
2021 |
||
| Adjusted EBITDA reconciliation: |
|
|
|
|
||
| Net income |
|
$ |
6,129 |
|
$ |
4,343 |
| Depreciation and amortization |
|
|
982 |
|
|
1,455 |
| Stock-based compensation expense |
|
|
4,408 |
|
|
3,227 |
| Interest expense |
|
|
274 |
|
|
547 |
| Income tax expense |
|
|
14 |
|
|
4 |
| Adjusted EBITDA |
|
$ |
11,807 |
|
$ |
9,576 |
