Cepton, Inc. Reports First Quarter 2023 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, gain or loss on changes in fair value of earnout liability and warrants, gain or loss on extinguishment of debt, and foreign currency transaction loss, net. Adjusted EBITDA is defined as non-GAAP net loss before interest income or expense, 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 (Loss) Income to Non-GAAP Net Loss and Non-GAAP Adjusted EBITDA

(In thousands, except share and per share data)

(unaudited)

 

 

 

Three Months Ended
March 31,

 

2023

2022

Net (loss) income

$

(14,742

)

$

41,198

 

Stock-based compensation

 

2,289

 

 

1,347

 

Non-recurring transaction expenses

 

 

 

2,709

 

Gain on change in fair value of earnout liability

 

(762

)

 

(56,678

)

Gain on change in fair value of warrant liability

 

(94

)

 

(780

)

Loss on extinguishment of debt

 

1,123

 

 

 

Foreign currency transaction loss, net

 

750

 

 

 

Non-GAAP net loss

$

(11,436

)

$

(12,204

)

Interest (income) expense, net

 

(299

)

 

694

 

Provision for income taxes

 

 

 

4

 

Depreciation and amortization

 

110

 

 

68

 

Adjusted EBITDA

$

(11,625

)

$

(11,438

)

 

 

 

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

 

 

Basic

$

(0.09

)

$

0.36

 

Diluted

$

(0.09

)

$

0.32

 

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

 

 

Basic

$

(0.07

)

$

(0.11

)

Diluted

$

(0.07

)

$

(0.11

)

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

 

 

Basic

 

156,779,565

 

 

115,865,890

 

Diluted

 

156,779,565

 

 

127,082,423

 

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

 

 

Basic

 

156,779,565

 

 

115,865,890

 

Diluted

 

156,779,565

 

 

115,865,890

 

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(unaudited)

 

 

 

 

 

 

 

March 31,
2023

 

December 31,
2022

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

41,972

 

$

31,953

 

Short-term investments

 

38,066

 

 

3,703

 

Accounts receivable, net of allowance for credit losses of $0 and $0, respectively

 

1,041

 

 

1,301

 

Inventories

 

3,430

 

 

2,985

 

Prepaid expenses and other current assets

 

4,772

 

 

6,272

 

Total current assets

 

89,281

 

 

46,214

 

Property and equipment, net

 

1,521

 

 

982

 

Restricted cash

 

2,565

 

 

2,565

 

Other assets

 

11,303

 

 

555

 

Total assets

$

104,670

 

$

50,316

 

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

 

 

Current liabilities:

 

 

Accounts payable

$

1,521

 

$

1,979

 

Operating lease liabilities, current

 

1,613

 

 

211

 

Accrued expenses and other current liabilities

 

2,766

 

 

2,265

 

Short-term debt

 

 

 

42,587

 

Total current liabilities

 

5,900

 

 

47,042

 

Warrant liability

 

347

 

 

440

 

Earnout liability

 

158

 

 

920

 

Operating lease liabilities, non-current

 

10,158

 

 

281

 

Total liabilities

 

16,563

 

 

48,683

 

Commitments and contingencies (Note 17)

 

 

Convertible preferred stock:

 

 

Convertible preferred stock – Par value $0.00001 per share – 5,000,000 shares authorized at March 31, 2023 and December 31, 2022; 100,000 shares issued and outstanding at March 31, 2023 (aggregate liquidation preference of $100.8 million at March 31, 2023); No shares issued and outstanding at December 31, 2022

 

98,891

 

 

 

Stockholders’ equity (deficit):

 

 

Common stock – Par value $0.00001 per share – 350,000,000 shares authorized at March 31, 2023 and December 31, 2022; 156,844,093 and 156,747,708 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

 

2

 

 

2

 

Additional paid-in capital

 

90,344

 

 

88,056

 

Accumulated other comprehensive loss

 

(329

)

 

(366

)

Accumulated deficit

 

(100,801

)

 

(86,059

)

Total stockholders’ equity (deficit)

 

(10,784

)

 

1,633

 

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

$

104,670

 

$

50,316

 

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except share and per share data)

(unaudited)

 

 

 

 

 

Three Months Ended
March 31,

 

 

2023

 

2022

Lidar sensor and prototype revenue

$

1,240

 

 

$

1,485

 

Development revenue

 

245

 

 

 

 

Total revenue

$

1,485

 

 

$

1,485

 

 

 

 

 

Lidar sensor and prototype cost of revenue

 

1,448

 

 

 

1,252

 

Development cost of revenue

 

111

 

 

 

 

Total cost of revenue

 

1,559

 

 

 

1,252

 

Gross (loss) profit

 

(74

)

 

 

233

 

 

 

 

 

Operating expenses:

 

 

 

Research and development

 

7,238

 

 

 

7,754

 

Selling, general and administrative

 

6,731

 

 

 

8,043

 

Total operating expenses

 

13,969

 

 

 

15,797

 

Operating loss

 

(14,043

)

 

 

(15,564

)

Other income (expense):

 

 

 

Gain on change in fair value of earnout liability

 

762

 

 

 

56,678

 

Gain on change in fair value of warrant liability

 

94

 

 

 

780

 

Foreign currency transaction loss, net

 

(750

)

 

 

 

Loss on extinguishment of debt

 

(1,123

)

 

 

 

Other income, net

 

19

 

 

 

2

 

Interest income (expense), net

 

299

 

 

 

(694

)

(Loss) income before income taxes

 

(14,742

)

 

 

41,202

 

Provision for income taxes

 

 

 

 

(4

)

 

 

 

 

Net (loss) income

$

(14,742

)

 

$

41,198

 

 

 

 

 

Net (loss) income per share, basic

$

(0.09

)

 

$

0.36

 

Net (loss) income per share, diluted

$

(0.09

)

 

$

0.32

 

Weighted-average common shares, basic

 

156,779,565

 

 

 

115,865,890

 

Weighted-average common shares, diluted

 

156,779,565

 

 

 

127,082,423

 

 

CEPTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

 

 

 

 

 

Three Months Ended
March 31,

 

 

2023

 

2022

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net (loss) income

$

(14,742

)

 

$

41,198

 

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

 

 

 

Depreciation and amortization

 

110

 

 

 

68

 

Stock-based compensation

 

2,289

 

 

 

1,347

 

Amortization of right-of-use asset

 

382

 

 

 

311

 

Amortization, other

 

107

 

 

 

(294

)

Gain on change in fair value of earnout liability

 

(762

)

 

 

(56,678

)

Gain on change in fair value of warrant liability

 

(94

)

 

 

(780

)

Foreign currency transaction loss, net

 

750

 

 

 

 

Loss from extinguishment of debt

 

1,123

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

260

 

 

 

(566

)

Inventories

 

(453

)

 

 

(254

)

Prepaid expenses and other current assets

 

513

 

 

 

(739

)

Other long-term assets

 

181

 

 

 

(1,945

)

Accounts payable

 

(680

)

 

 

(102

)

Accrued expenses and other current liabilities

 

502

 

 

 

(662

)

Operating lease liabilities

 

89

 

 

 

(389

)

Other long-term liabilities

 

 

 

 

(2

)

Net cash used in operating activities

 

(10,425

)

 

 

(19,487

)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Purchases of property and equipment

 

(556

)

 

 

(133

)

Purchases of short-term investments

 

(37,806

)

 

 

(20,238

)

Proceeds from maturities of short-term investments

 

3,700

 

 

 

2,773

 

Net cash used in investing activities

 

(34,662

)

 

 

(17,598

)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from convertible preferred stock, net of transaction costs

 

99,884

 

 

 

 

Repayment of Koito secured term loan

 

(45,220

)

 

 

 

Proceeds from Business Combination and private offering

 

 

 

 

76,107

 

Payments of Business Combination and private offering transaction costs

 

 

 

 

(28,038

)

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

 

 

 

 

9,724

 

Proceeds from issuance of common stock options

 

8

 

 

 

235

 

Net cash provided by financing activities

 

54,672

 

 

 

58,028

 

 

 

 

 

Effect of exchange rate changes on cash

 

434

 

 

 

(4

)

 

 

 

 

Net increase in cash, cash equivalents and restricted cash

 

10,019

 

 

 

20,939

 

Cash, cash equivalents and restricted cash, beginning of period

 

34,518

 

 

 

3,654

 

Cash, cash equivalents and restricted cash, end of period

$

44,537

 

 

$

24,593

 





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