UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November 2024

 

Commission File Number: 001-40842

 

VALENS SEMICONDUCTOR LTD.

(Exact name of registrant as specified in its charter)

 

8 Hanagar St. POB 7152

Hod Hasharon 4501309

Israel

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F ☒ Form 40-F ☐

 

 

 

 

 

 

EXPLANATORY NOTE

 

Exhibit 99.1 to this report, furnished on Form 6-K, is incorporated by reference into the Registrant’s registration statements on Form F-3 (File No. 333-260390) and Form S-8 (File Nos. 333-259849, 333-269250 and 333-276520).

 

1

 

 

TABLE OF CONTENTS

 

ITEM    
99.1   Condensed Consolidated Financial Statements (Unaudited) as of and for the three and nine months ended September 30, 2024
101.INS   Inline XBRL Instance Document.
101.SCH   Inline XBRL Taxonomy Extension Schema Document.
101.CAL   Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF   Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB   Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE   Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104   Cover Page Interactive Data File (embedded with the Inline XBRL document).

 

2

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  VALENS SEMICONDUCTOR LTD.
       
  By: /s/ Gideon Ben-Zvi
    Name: Gideon Ben-Zvi
    Title: Chief Executive Officer

 

Date: November 7, 2024

 

 

3

 

Exhibit 99.1

 

VALENS SEMICONDUCTOR LTD.

 

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

SEPTEMBER 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

VALENS SEMICONDUCTOR LTD.

 

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As of September 30, 2024

 

CONTENTS

 

    Page
     
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - IN U.S. DOLLARS ($):    
Balance sheets   2-3
Statements of operations   4
Statements of changes in shareholder’s equity   5
Statements of cash flows   6
Notes to consolidated financial statements   7-24

 

 

 

 

 

 

 

1

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(U.S. dollars in thousands, except for number of shares and par value)

 

   September 30,
2024		   December 31,
2023		 
Assets        
         
CURRENT ASSETS:        
Cash and cash equivalents   35,443    17,261 
Short-term deposits   97,655    124,759 
Trade accounts receivable   7,217    14,642 
Prepaid expenses and other current assets   3,000    4,196 
Inventories   11,737    13,836 
TOTAL CURRENT ASSETS   155,052    174,694 
           
LONG-TERM ASSETS:          
Property and equipment, net   2,889    2,954 
Operating lease right-of-use assets   6,460    2,202 
Intangible assets   4,937    
-
 
Goodwill   1,847    
-
 
Other assets   702    708 
TOTAL LONG-TERM ASSETS   16,835    5,864 
TOTAL ASSETS   171,887    180,558 

 

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

 

2

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (Unaudited)

(U.S. dollars in thousands, except for number of shares and par value)

 

   September 30,
2024		   December 31,
2023		 
Liabilities and Shareholders’ Equity        
         
CURRENT LIABILITIES:        
Trade accounts payable   4,069    4,950 
Accrued compensation   4,662    4,257 
Current maturities of operating leases liabilities   2,825    1,766 
Other current liabilities   7,350    4,958 
TOTAL CURRENT LIABILITIES   18,906    15,931 
           
LONG-TERM LIABILITIES:          
Forfeiture shares, no par value: 359,375 and 1,006,250 shares authorized, issued and outstanding as of September 30, 2024 and December 31, 2023   
-
    38 
Non-current operating leases liabilities   3,598    190 
Earnout liability   2,328    
-
 
Other long-term liabilities   66    95 
TOTAL LONG-TERM LIABILITIES   5,992    323 
TOTAL LIABILITIES   24,898    16,254 
           
COMMITMENTS AND CONTINGENT LIABILITIES (note 7)   
 
    
 
 
           
SHAREHOLDERS’ EQUITY:          
Ordinary shares, no par value: 700,000,000 shares authorized as of September 30, 2024, and as of December 31, 2023; 106,288,694 and 98,876,266 (excluding 359,375 and 1,006,250 shares subject to forfeiture) shares issued and outstanding as of September 30, 2024 and as of December 31, 2023, respectively   49    49 
Additional paid-in capital   353,542    341,591 
Accumulated deficit   (206,602)   (177,336)
TOTAL SHAREHOLDERS’ EQUITY   146,989    164,304 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   171,887    180,558 

 

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

 

3

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(U.S. dollars in thousands, except share and per share amounts)

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
REVENUES   41,194    62,221    16,038    14,166 
COST OF REVENUES   (16,990)   (23,156)   (6,993)   (5,828)
GROSS PROFIT   24,204    39,065    9,045    8,338 
                     
OPERATING EXPENSES:                    
Research and development expenses   (30,415)   (39,540)   (10,309)   (13,419)
Sales and marketing expenses   (13,636)   (13,330)   (4,880)   (4,015)
General and administrative expenses   (12,793)   (11,376)   (5,825)   (3,843)
Change in earnout liability   (292)   
-
    (264)   
-
 
TOTAL OPERATING EXPENSES   (57,136)   (64,246)   (21,278)   (21,277)
OPERATING LOSS   (32,932)   (25,181)   (12,233)   (12,939)
Change in fair value of Forfeiture Shares   38    1,618    3    89 
Financial income, net   3,659    1,160    1,885    368 
LOSS BEFORE INCOME TAXES   (29,235)   (22,403)   (10,345)   (12,482)
INCOME TAXES   (52)   (61)   (14)   (16)
LOSS AFTER INCOME TAXES   (29,287)   (22,464)   (10,359)   (12,498)
EQUITY IN EARNINGS OF INVESTEE   21    13    4    6 
NET LOSS   (29,266)   (22,451)   (10,355)   (12,492)
Basic and diluted net loss per ordinary share   (0.28)   (0.22)   (0.10)   (0.12)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share   105,075,212    101,659,653    106,098,703    102,216,654 

 

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

 

4

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

(U.S. dollars in thousands, except share data)

 

   Nine months ended September 30, 2024 
   Ordinary shares   Additional paid-   Accumulated     
   Shares   Amount   in capital   Deficit   Total 
                     
Balance as of January 1, 2024  (*)103,154,396    49    341,591    (177,336)   164,304 
Exercise of options and vesting of RSUs   3,134,298    
-
    692    
-
    692 
Stock based compensation   -    
-
    11,259    
-
    11,259 
Net loss for the period   -    
-
    
-
    (29,266)   (29,266)
Balance as of September 30, 2024  (**)106,288,694    49    353,542    (206,602)   146,989 

 

   Nine months ended September 30, 2023 
   Ordinary shares   Additional paid-   Accumulated     
   Shares   Amount   in capital   Deficit   Total 
                     
Balance as of January 1, 2023  (*)98,876,266    49    325,067    (157,675)   167,441 
Exercise of options and vesting of RSUs   3,744,875    
-
    1,265    
-
    1,265 
Stock based compensation   -    
-
    11,517    
-
    11,517 
Net loss for the period   -    
-
    
-
    (22,451)   (22,451)
Balance as of September 30, 2023  (*)102,621,141    49    337,849    (180,126)   157,772 

 

   Three months ended September 30, 2024 
   Ordinary shares   Additional paid-   Accumulated     
   Shares   Amount   in capital   Deficit   Total 
                     
Balance as of July 1, 2024  (*)105,574,104    49    349,726    (196,247)   153,528 
Exercise of options and vesting of RSUs   714,590    
-
    56    
-
    56 
Stock based compensation   -    
-
    3,760    
-
    3,760 
Net loss for the period   -    
-
    
-
    (10,355)   (10,355)
Balance as of September 30, 2024  (**)106,288,694    49    353,542    (206,602)   146,989 

 

   Three months ended September 30, 2023 
   Ordinary shares   Additional paid-   Accumulated     
   Shares   Amount   in capital   Deficit   Total 
                     
Balance as of July 1, 2023  (*)101,843,066    49    333,862    (167,634)   166,277 
Exercise of options and vesting of RSUs   778,075    
-
    279    
-
    279 
Stock based compensation   -    
-
    3,708    
-
    3,708 
Net loss for the period   -    
-
    
-
    (12,492)   (12,492)
Balance as of September 30, 2023  (*)102,621,141    49    337,849    (180,126)   157,772 

 

(*)Excluding 1,006,250 Forfeiture Shares
(**)Excluding 359,375 Forfeiture Shares

 

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

 

5

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(U.S. dollars in thousands)

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss for the period   (29,266)   (22,451)   (10,355)   (12,492)
Adjustments to reconcile net loss to net cash used in operating activities:                    
Income and expense items not involving cash flows:                    
Depreciation and amortization   1,758    1,193    823    400 
Stock-based compensation   11,259    11,517    3,760    3,708 
Exchange rate differences   1,353    3,652    87    1,379 
Interest on short-term deposits   605    (367)   (312)   22 
Change in fair value of Forfeiture Shares   (38)   (1,618)   (3)   (89)
Change in earnout liability   292    
-
    264    
-
 
Reduction in the carrying amount of ROU assets   1,619    1,464    896    478 
Equity in earnings of investee, net of dividend received   21    13    4    6 
                     
Changes in operating assets and liabilities, net of effects of businesses acquired:                    
Trade accounts receivable   7,719    3,854    2,804    8,429 
Prepaid expenses and other current assets   1,285    1,046    977    643 
Inventories   4,675    6,914    2,274    2,115 
Other assets   (7)   (6)   (73)   (40)
Trade accounts payable   (1,097)   (4,169)   738    2,779 
Accrued compensation   537    (654)   422    354 
Other current liabilities   2,150    (1,433)   1,532    (1,217)
Change in operating lease liabilities   (1,487)   (1,251)   (865)   (392)
Other long-term liabilities   (29)   73    (9)   5 
Net cash provided by (used in) operating activities   1,349    (2,223)   2,964    6,088 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Investment in short-term deposits   (103,662)   (173,342)   (16,443)   (64,189)
Maturities of short-term deposits   129,418    166,757    25,380    47,803 
Purchase of property and equipment   (987)   (1,099)   (722)   (180)
Cash paid for business combination, net of cash acquired (note 3)   (7,800)   
-
    
-
    
-
 
Net cash provided by (used in) investing activities   16,969    (7,684)   8,215    (16,566)
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Exercise of stock options   692    1,265    56    279 
Net cash provided by financing activities   692    1,265    56    279 
                     
Effect of exchange rate changes on cash and cash equivalents   (828)   (196)   (498)   (25)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   18,182    (8,838)   10,737    (10,224)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD   17,261    20,024    24,706    21,410 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD   35,443    11,186    35,443    11,186 
                     
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION -                    
Cash paid for taxes   102    262    39    10 
 SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                    
Trade accounts payable on account on property and equipment   309    125    309    
-
 
Fair value of earnout liability assumed in business combination   2,036    
-
    
-
    
-
 
Operating lease liabilities arising from obtaining operating right-of-use assets   5,412    469    579    33 

 

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

 

6

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

 

NOTE 1 - GENERAL:

 

a.Valens Semiconductor Ltd. (hereafter “Valens”, and together with its wholly owned subsidiaries, the “Company”), was incorporated in Israel in 2006.

 

As of September 30, 2021, the Company began trading on the New York Stock Exchange under the Symbol “VLN”.

 

Please also refer to Note 1(c) in the consolidated financial statement for the year ended December 31, 2023.

 

Valens is a leading provider of semiconductor products (chips), operates in the Audio-Video and Automotive industries, renowned for its Physical Layer (PHY) technology, enabling resilient high-speed connectivity over simple, low-cost infrastructure. Valens is the inventor of the HDBaseT Technology, which enables the converged delivery of ultra-high-definition digital video and audio, Ethernet, control signals, USB and power through a single cable. In the audio-video space, Valens’ HDBaseT technology enables plug-and-play digital connectivity between ultra-HD video sources and remote displays. In the automotive domain, Valens’ product offering includes both symmetric and asymmetric connectivity technology for high bandwidth transmission of native interfaces over a single low-cost wires and connectors. Valens’ advanced PHY technology for the auto industry provides the safety and resilience required to handle the noisy automotive environment, addressing the needs of Advanced driver-assistance systems (ADAS), Automotive Data Solutions (ADS), infotainment, telematics and backbone connectivity.

 

b.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. 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. 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. 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.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

 

a.Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.

 

Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, cash flows, and shareholders’ equity. All such adjustments are of a normal, recurring nature.

 

7

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

 

The results of operations for the nine and three months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements that were included in Form 20-F for the year ended December 31, 2023.

 

The carrying value of cash and cash equivalents, accounts receivables, deposits and accounts payable (included in the condensed consolidated balance sheets) approximates their fair value because of their generally short maturities.

 

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the year ended December 31, 2023 other than as stated below.

 

b.Business combination

 

The Company allocates the fair value of consideration transferred in a business combination to the assets acquired and the liabilities assumed in the acquired business based on their fair values at the acquisition date. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The excess of the fair value of the consideration transferred over the fair value of the assets acquired, liabilities assumed in the acquired business is recorded as goodwill. The fair value of the consideration transferred may include a combination of cash and earn out payments. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The cumulative impact of revisions during the measurement period is recognized in the reporting period in which the revisions are identified. The Company includes the results of operations of the businesses that it has acquired in its consolidated results prospectively from the respective dates of acquisition.

 

c.Intangible assets

 

Goodwill

 

Goodwill reflects the excess of the consideration transferred at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. ASC 350 allows an entity to first assess qualitative factors to determine whether a quantitative goodwill impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. Examples of events or circumstances that may be indicative of impairment include but are not limited to: macroeconomic and industry conditions, overall financial performance and adverse changes in legal, regulatory, market share and other relevant entity specific events.

 

8

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

 

An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. This would not preclude the entity from performing the qualitative assessment in any subsequent period. The quantitative assessment compares the fair value of the reporting unit to its carrying value, including goodwill.

 

The Company determines the fair value of its reporting units using a discounted cash flow model, which utilizes key assumptions such as projected revenues, cost of revenues and operating expenses. These assumptions are determined by the Company’s management utilizing its internal operating plan, growth rates for revenues and operating expenses and margin assumptions. An additional key assumption under this approach is the discount rate, based on the weighted average cost of capital, which is adjusted for current risk-free rates of capital, current market interest rates, and the evaluation of a risk premium relevant to the business segment.

 

If the Company’s assumptions relative to revenue growth rates, cost of revenues and operating expenses were to change, the Company’s fair value calculation may change, which could result in impairment. If the Company’s assumptions relative to the discount rate and the evaluation of risk premium growth rates were to change, the Company’s fair value calculation may change, which could result in impairment. The Company uses the income approach to determine the fair value of the reporting units because it considers the anticipated future financial performance of the reporting units. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations.

 

The Company’s goodwill is tested for impairment at least on an annual basis and whenever events or changes in circumstances indicate the carrying value of a reporting unit may not be recoverable. When necessary, the Company records charges for impairments of goodwill for the amount by which the carrying amount of the respective reporting unit exceeds its fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

 

The goodwill identified in Acroname’s acquisition is assigned to the Audio Video segment (which was recorded in the acquisition of Acroname). The goodwill is deductible for tax purposes.

 

Other Intangible Assets

 

Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of core technology is recorded under cost of revenues. Amortization of customer relationships is recorded under sales and marketing expenses.

 

9

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):

 

d.New Accounting Pronouncements

 

New accounting pronouncements effective in future periods:

 

Improvements to Reportable Segments Disclosures

 

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting–Improvements to Reportable Segments Disclosures (Topic 280)” to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU (1) require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (3) require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods; (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures; and (5) require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure or measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.

 

Improvements to Income Tax Disclosures

 

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740)–Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU require that public entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires that all entities disclose, on an annual basis, (1) the amount of income taxes paid disaggregated by federal, state, and foreign taxes, (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid, (3) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (4) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. For the Company, the amendments in this “ASU are effective for annual periods beginning after December 15, 2025, and should be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.

 

10

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 3 - BUSINESS COMBINATION

 

On May 31, 2024 (The “Closing date”), the Company closed a purchase transaction with the shareholders of Acroname Inc. (“Acroname”), a US company specializing in advanced automation and control technologies, to acquire 100% of its equity, for a total cash consideration of $9.1 million, of which $1.3 in consideration of the amount of cash held by Acroname at closing. In addition, the Company shall be obligated to pay Acroname’s former shareholders earnout payments of up to $7.2 million in cash, of which payment of $1.5 million upon completion of a development of a certain product by June 2026, and the remaining payment depending on the achievement of certain revenue, EBITDA and cashflow targets in 2024 and 2025.

 

The following table summarizes the fair value of the consideration transferred to Acroname shareholders:

 

   U.S. dollars in
thousands		 
Cash payment   9,160 
Fair value of earnout liability (*)   2,036 
Total consideration   11,196 

 

(*)The Company recorded earn out liability in connection with its business combination at fair value on the acquisition date.

 

The results of operations of Acroname have been included in the consolidated financial statements since the Closing date. The amounts of revenues and net loss related to Acroname that are included in the Company’s consolidated statements of operations for the period starting from the Closing date to September 30, 2024, are $2,074 thousand and $113 thousand, respectively (including amortization of tangible and intangible assets in the amount of $372 thousands).

 

The Company accounted for the transaction in accordance with Accounting Standard Codification (“ASC”) 805, Business Combinations, and following the transaction, the Company consolidates all assets and liabilities included in the transaction in accordance with ASC 810, Consolidation.

 

In the second quarter of 2024, the Company incurred $0.4 million of acquisition-related costs. Such costs are included under General and administrative expenses in the consolidated statements of operations.

 

Accounting guidance provides that the allocation of the purchase price may be adjusted for up to one year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. The primary area of the purchase price allocation that is not yet finalized is related to intangible assets, inventory, certain tax matters and the related impact on goodwill.

 

11

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 3 - BUSINESS COMBINATION (continued):

 

The following table summarizes the purchase price allocation to the fair value of the assets acquired and liabilities assumed:

 

   Allocation 
   of Purchase 
   Price 
   U.S. dollars in
thousands		 
     
Cash and cash equivalents   1,360 
Accounts Receivables   294 
Inventory (1)   2,635 
Other current assets   123 
Property and equipment   25 
Operating lease right-of-use assets   650 
Core Technology (2)   4,653 
Customer relationships (3)   597 
Goodwill (4)   1,847 
Total assets acquired   12,184 
Operating leases liabilities   (650)
Other liabilities   (338)
Total liabilities assumed   (988)
      
Net assets acquired   11,196 
      

 

(1)The estimated fair value of the finished goods inventory was deriving from its cost value, as of the valuation date, with the addition of the gross profit of Acroname, and after deducting the direct selling expenses with relation to the inventory, and the marketing profit.

 

(2)The acquired company is deemed to have an underlying technology of a value, through its continued use or re-use in many products or many generations of a singular product (a product family). The fair value of Core Technology was estimated by applying the income approach, specifically the Multi Period Excess Earnings method. Core Technology is amortized over a period of 5.6 years. The discount rate for Acroname’s technology was estimated at 25.3% reflecting the WACC.

 

(3)The fair value of the Customer relationships was estimated by applying the income approach, specifically the distributor method. The Customer relationships are amortized over a period of 5.6 years. The discount rate for Acroname’s Customer relationships was estimated at 25.3% reflecting the WACC.

 

(4)Goodwill is primarily related to the workforce, expected synergies such as potential cost savings in operations as a result of the business combination as well as potential future development of the mutual development projects. The goodwill is deductible for tax purposes. All of the $1,847 thousand of goodwill was assigned to Audio Video segment.

 

12

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 3 - BUSINESS COMBINATION (continued):

 

The following unaudited pro forma summary presents condensed consolidated information of the Company as if the business combination had occurred on January 1, 2023. The pro forma results below include the impact of certain adjustments related to the amortization of tangible and intangible assets, transaction-related costs, and the related income tax effects. This pro forma presentation does not include any impact from transaction synergies or any other material, nonrecurring adjustments directly attributable to the business combination.

 

   Unaudited Pro-forma 
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
                 
Revenues   44,038    66,615    16,038    15,471 
Net loss   (28,957)   (23,966)   (10,260)   (12,611)

 

NOTE 4 - INVENTORIES:

 

   September 30, 2024   December 31, 2023 
   U.S. dollars in thousands 
Work in process   6,486    6,176 
Finished goods   5,251    7,660 
    11,737    13,836 

 

Inventories write-downs amounted to $404 thousand and $619 thousand during the nine months ended September 30, 2024, and 2023, respectively. Inventories write-downs amounted to $104 thousand and $222 thousand during the three months ended September 30, 2024, and 2023, respectively. Inventories write-downs are recorded in cost of revenues.

 

NOTE 5 - LEASES:

 

During April 2024, the Company signed an amendment to the lease agreement for its office space in Hod Hasharon, Israel, regarding 5,500 square meters. The amendment extends the lease term through February 28, 2029. This amendment also provides the Company with an option to extend the lease period by additional two years until February 28, 2031.

 

The Company concluded that it is reasonably certain that it will exercise the renewal option. Accordingly, such renewal option was included in determining the lease term.

 

13

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 6 - INTANGIBLE ASSETS:

 

The Identifiable intangible assets were recorded as follows (U.S. dollars in thousands):

 

    Useful Life
(in Years)		    Gross
carrying
amount as
of the business
combination
date		    Accumulated
amortization
for the
period		    Net carrying
amount as
of
September 30,
2024		 
Core technology   5.58    4,653    277    4,376 
Customer relationships   5.58    597    36    561 
Total Intangible assets        5,250    313    4,937 

 

Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:

 

Remainder of 2024   235 
2025   941 
2026   941 
2027   941 
2028 and thenafter   1,879 
Total   4,937 

 

NOTE 7 - COMMITMENTS AND CONTINGENT LIABILITIES:

 

a.Noncancelable Purchase Obligations

 

The Company depends upon third party subcontractors for manufacturing of wafers, packaging and final tests. As of September 30, 2024 and December 31, 2023 the total value of open purchase orders acknowledged by such manufacturing contractors was approximately $6,132 thousand and $4,951 thousand, respectively.

 

The Company has noncancelable purchase agreements for certain IP embedded in the Company’s products as well as certain agreement for the license of development tools used by the development team. As of September 30, 2024, and December 31, 2023, the total value of non-paid amounts related to such agreements totaled to $3,130 thousand and $5,513 thousand, respectively.

 

b.Legal proceedings

 

As of September 30, 2024, and to date, the Company is not a party to, or subject to the provisions of any order, writ, injunction, judgment or decree of any court or governmental agency or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate.

 

c.On March 26, 2024, the Company received a complaint from a customer regarding allegedly damaged chips due to a certain batch production incident, that customer embedded in its product. The company identified and remedied the production process.

 

On September 10, 2024, the customer sent a cost claim letter in the amount of $2,346 thousand.

 

14

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 7 - COMMITMENTS AND CONTINGENT LIABILITIES: (continued):

 

As of September 30, 2024, the Company has recorded a relevant provision in its books, within its other current liabilities. The Company believes that it will be able to obtain reimbursement from its product liability insurance, however the Company has not yet recorded such as asset in its books.

 

NOTE 8 - OTHER CURRENT LIABILITIES:

 

   September 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
         
Accrued vacation   3,162    2,820 
Taxes payable   8    36 
Estimated accrual for a certain batch production incident   2,346    
-
 
Accrued expenses and other   1,834    2,102 
    7,350    4,958 

 

NOTE 9 - FORFEITURE SHARES:

 

a.On September 29, 2021 (the “Closing Date”, please refer to note 1c of the financial statements as of December 31, 2023), 1,006,250 Ordinary Shares that PTK sponsor received in respect of its PTK common stock, are subject to forfeiture if certain price targets for the Valens Ordinary Shares are not achieved within a certain period of time (of up to four years), after the Closing Date or if an M&A Transaction (as defined in the Merger Agreement Closing, please refer to note 1c of the financial statements as of December 31, 2023), does not occur at a certain minimum price.

 

The Company performed a Monte-Carlo simulation to calculate the fair value of such shares.

 

On September 30, 2024, 646,875 Ordinary Shares were forfeited because the specified price targets were not met.

 

The fair value of the Forfeiture Shares was computed using the following key assumptions:

 

   September 30,
2024		   December 31,
2023		 
Stock price   2.20    2.45 
Expected term (years)   1.00    0.75-1.75 
Expected volatility   55.20%   30.95%-60.31% 
Risk-free interest rate   3.98%   4.37%-5.03% 

 

b.The table below sets forth a summary of the changes in the fair value of the Forfeiture Shares classified as Level 3:

 

    Nine months
ended
September 30,
2024		    Year ended
December 31,
2023		 
    U.S. dollars in thousands 
Balance at beginning of period   38    1,751 
Changes in fair value   (38)   (1,713)
Balance at end of the period  (*)
-
    38 

 

(*)Less than $1 thousand

 

15

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 10 - EARNOUT LIABILITY

 

The Company shall be obligated to pay Acroname’s former shareholders earn out payments of up to $7.2 million, of which an amount of $1.5 million upon completion of a development of a certain product by June 2026, and the remaining amount depending on the achievement of certain revenue, EBITDA and cashflow targets in 2024 and 2025.

 

The Company recorded earn out liability in connection with these payments at fair value on the acquisition date. The Company performed a Monte-Carlo simulation to calculate the fair value of earnout liability. The fair value of the earnout liability was computed using the following key assumptions: discount rate of 21.4%, expected term of 1.59-2.08 years, expected volatility of 55.71% and risk-free interest rate of 5.04%.

 

Each reporting period thereafter, the Company revalues the earn-out liability and records the changes in their fair value in the consolidated statements of operations and comprehensive loss.

 

Changes in the fair value of earnout liability can result from adjustments to the discount rates, revenues, profitability targets and achievement of mutual development project. This fair value measurement represents Level 3 measurements, as they are based on significant inputs not observable in the market. Significant judgment is required in determining the assumptions utilized as of the acquisition date and for each subsequent period. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations.

 

Each reporting period thereafter, the Company will revalue earnout liability and record the changes in the fair value in consolidated statements of operations. Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the earnout liability.

 

The fair value of the earnout liability was computed using the following key assumptions:

 

   September 30,
2024		 
Discount rate   20.1%-20.3% 
Expected term (years)   1.25-1.75 
Expected volatility   51.09%
Risk-free interest rate   3.90%

 

The following table summarizes the activity for the earnout liability, where fair value measurement is estimated utilizing Level 3 inputs:

 

    Nine months
ended
September 30,
2024		    Year ended
December 31,
2023		 
    U.S. dollars in thousands 
Fair value at the beginning of the year   
-
    
-
 
Initial recognition of earnout liability   (2,036)   
-
 
Change in fair value of earnout liability   (292)   
-
 
Fair value at the end of the year   (2,328)   
-
 

 

16

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 11 - STOCK-BASED COMPENSATION:

 

Stock Options

 

As of September 30, 2024, and December 31, 2023, the number of ordinary shares included in the Company’s option plans totaled to 35,874,244 and 30,666,212, respectively.

 

496,179 out of the outstanding options that have not yet vested as of September 30, 2024, have acceleration mechanisms according to certain terms set forth in the grant agreements primarily in the case of an M&A Transaction which constitutes a Liquidation Event.

 

As of September 30, 2024, the unrecognized compensation costs related to those unvested stock options are $615 thousand, which are expected to be recognized over a weighted-average period of 1.59 years.

 

The following is a summary of the status of the Company’s share option plan as of September 30, 2024:

 

   Nine months ended 
   September 30, 2024 
   Number of
Options		   Weighted-
Average
Exercise
price		 
Options outstanding as of December 31, 2023   11,326,943   $0.97 
Granted during the period   479,505   $2.36 
Exercised during the period   (992,432)  $0.69 
Forfeited during the period   (14,451)  $0.80 
Options outstanding as of September 30, 2024   10,799,565   $1.06 
Options exercisable as of September 30, 2024   10,093,859   $0.97 

 

The following table summarizes information about stock options outstanding as of September 30, 2024:

 

Outstanding as of September 30, 2024   Exercisable as of September 30, 2024 
Range of exercise prices   Number outstanding   Weighted average remaining contractual term   Weighted average exercise price   Aggregate intrinsic value (U.S. dollars in thousands)   Number Exercisable   Weighted average remaining contractual term   Weighted Average exercise price  

Aggregate intrinsic value (U.S. dollars in thousands)

 
                                  
$0.15-$0.86    9,873,168    4.15   $0.80    13,830    9,622,746    4.10   $0.80    13,494 
$1.87    3,313    6.28   $1.87    1    2,898    6.28   $1.87    1 
$2.10-$2.13    72,273    5.45   $2.12    6    16,563    0.25   $2.10    2 
$2.39-$2.40    425,269    6.29   $2.39    
-
    156,889    6.29   $2.39    - 
$4.99    196,625    5.29   $4.99    
-
    127,096    5.29   $4.99    
-
 
$5.36    140,000    4.75   $5.36    
-
    78,750    4.75   $5.36    
-
 
$7.58    85,380    4.29   $7.58    
-
    85,380    4.29   $7.58    
-
 
$9.07    3,537    4.21   $9.07    
-
    3,537    4.21   $9.07    
-
 

 

17

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 11 - STOCK-BASED COMPENSATION (continued):

 

The calculated fair value of option grants was estimated using the Black-Scholes option-pricing model with the following assumptions:

 

   For the
nine months
ended on
September 30,
2024		   For the
nine months
ended on
September 30,
2023		 
Expected term   4-5    3-5 
Expected volatility   57.53%-58.56%    48.35%-63.84% 
Expected dividend rate   0%   0%
Risk-free rate   3.55%-3.92%    3.62%-4.21% 

 

During the nine months period ended on September 30, 2024, 479,505 options were granted to related parties (please refer to Note 15 for further information).

 

As of September 30, 2024, the unrecognized compensation costs related to unvested stock options was $1,357 thousand, which are expected to be recognized over a weighted-average period of 1.17 years.

 

The weighted-average fair value of the options that were granted during the period ended September 30, 2024 was $2.36 at the grant date.

 

The total intrinsic value of options exercised during the period of nine months ended September 30, 2024 and 2023 was $1,939 and $8,905 thousand, respectively.

.

The following table presents the classification of the stock options expenses for the periods indicated:

 

   Nine months Ended
September 30		   Three months Ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Cost of revenue   132    140    44    44 
Research and development   651    904    210    273 
Sales and marketing   684    847    194    277 
General and administrative   752    2,063    189    714 
Total stock-based compensation   2,219    3,954    637    1,308 

 

18

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 11 - STOCK-BASED COMPENSATION (continued):

 

Restricted Stock Units

 

The following is a summary of the status of the Company’s RSU’s as of September 30, 2024, as well as changes during the period of nine months ended September 30, 2024:

 

   Number of
RSUs		   Weighted-
Average
Grant Date
Fair Value		 
RSUs outstanding at the beginning of the year   5,442,313   $5.26 
Granted during the period   6,235,178   $2.17 
Vested during the period   (2,141,866)  $4.99 
Forfeited during the period   (469,199)  $3.48 
Outstanding at the end of the period   9,066,426   $3.26 

 

As of September 30, 2024, the unrecognized compensation cost related to unvested RSUs totaled to approximately $24,838 thousand and is expected to be expensed over a weighted-average recognition period of approximately 2.50 years.

 

During the nine months ended on September 30, 2024 871,061 RSU’s were granted to several related parties (please refer to Note 15 regarding Related Parties).

 

The following table presents the classification of RSU’s expenses for the periods indicated:

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   580    442    194    154 
Research and development   4,499    3,924    1,542    1,144 
Sales and marketing   2,268    1,806    779    609 
General and administrative   1,693    1,391    608    493 
Total stock-based compensation-RSUs   9,040    7,563    3,123    2,400 

 

19

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 12 - NET LOSS PER ORDINARY SHARE:

 

The following table sets forth the computation of basic and diluted net income (loss) per ordinary share for the periods indicated:

 

   Nine months Ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Basic net loss per ordinary share                
Numerator:                
Net loss   (29,266)   (22,451)   (10,355)   (12,492)
                     
Denominator:                    
Weighted average common shares and vested RSUs – basic and diluted   105,075,212    101,659,653    106,098,703    102,216,654 
Basic and dilutive net loss per common share   (0.28)   (0.22)   (0.10)   (0.12)

 

The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
Options   11,063,254    12,479,143    10,806,286    11,955,067 
Restricted Stock Units   7,254,370    5,920,117    9,394,111    6,056,775 
Private Warrants   3,330,000    3,330,000    3,330,000    3,330,000 
Public Warrants   5,750,000    5,750,000    5,750,000    5,750,000 
Forfeiture Shares   790,625    1,006,250    359,375    1,006,250 

 

NOTE 13 - FINANCIAL INCOME, NET

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Foreign currency exchange differences   (972)   (3,652)   299    (1,379)
Interest income on short-term deposits   4,658    4,892    1,597    1,802 
Other   (27)   (80)   (11)   (55)
Total financial income, net   3,659    1,160    1,885    368 

 

20

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 14 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER:

 

a.For the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments, to make decisions about resources to be allocated to the segments and assess their performance. Assets’ information is not provided to the CODM and is not being reviewed. Revenues and cost of goods sold are directly associated with the activities of a specific segment. Direct operating expenses, including general and administrative expenses, associated with the activities of a specific segment are charged to that segment. General and administrative expenses which cannot be attributed directly, are allocated evenly between segments. Other operating expenses are allocated to segments based on headcount ratio.

 

   Nine months ended on
September 30, 2024		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   24,618    16,576    41,194 
Gross profit   18,203    6,001    24,204 
Research and development expenses   (17,348)   (13,067)   (30,415)
Sales and marketing expenses   (6,410)   (7,226)   (13,636)
General and administrative expenses   (5,816)   (6,977)   (12,793)
Change in earnout liability   (292)   
-
    (292)
Segment operating profit (loss)   (11,663)   (21,269)   (32,932)
Change in fair value of Forfeiture Shares             38 
Financial income, net             3,659 
Loss before taxes on income             (29,235)
                
Depreciation and Amortization expenses   1,067    691    1,758 
Stock-based compensation   5,145    6,114    11,259 

 

   Nine months ended on
September 30, 2023		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   41,560    20,661    62,221 
Gross profit   32,114    6,951    39,065 
Research and development expenses   (20,144)   (19,396)   (39,540)
Sales and marketing expenses   (5,663)   (7,667)   (13,330)
General and administrative expenses   (5,724)   (5,652)   (11,376)
Segment operating profit (loss)   583    (25,764)   (25,181)
Change in fair value of Forfeiture Shares             1,618 
Financial expenses, net             1,160 
Loss before taxes on income             (22,403)
                
Depreciation and Amortization expenses   531    662    1,193 
Stock-based compensation   4,861    6,656    11,517 

 

21

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 14 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):

 

   Three months ended on
September 30, 2024		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   9,371    6,667    16,038 
Gross profit   6,592    2,453    9,045 
Research and development expenses   (5,569)   (4,740)   (10,309)
Sales and marketing expenses   (2,470)   (2,410)   (4,880)
General and administrative expenses   (2,211)   (3,614)   (5,825)
Change in earnout liability   (264)   
-
    (264)
Segment operating profit (loss)   (3,922)   (8,311)   (12,233)
Change in fair value of Forfeiture Shares             3 
Financial income, net             1,885 
Loss before taxes on income             (10,345)
                
Depreciation and Amortization expenses   559    264    823 
Stock-based compensation   1,721    2,039    3,760 

 

   Three months ended on
September 30, 2023		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   9,731    4,435    14,166 
Gross profit   7,380    958    8,338 
Research and development expenses   (9,050)   (4,369)   (13,419)
Sales and marketing expenses   (1,654)   (2,361)   (4,015)
General and administrative expenses   (1,968)   (1,875)   (3,843)
Segment operating profit (loss)   (5,292)   (7,647)   (12,939)
Change in fair value of Forfeiture Shares             89 
Financial income, net             368 
Loss before taxes on income             (12,482)
                
Depreciation and Amortization expenses   179    221    400 
Stock-based compensation   1,574    2,134    3,708 

 

22

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 14 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):

 

b.Geographic Revenues

 

The following table shows revenue by geography, based on the customers’ “bill to” location:

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Israel   582    1,858    151    592 
China   5,630    6,552    2,123    1,797 
Hong Kong   3,878    5,415    2,304    1,281 
Hungary   9,978    16,391    3,849    3,378 
United States   6,669    4,424    2,207    983 
Portugal   5,547    480    2,448    413 
Germany   2,011    6,914    584    1,277 
Mexico   1,358    5,863    173    1,554 
Other   5,541    14,324    2,199    2,891 
    41,194    62,221    16,038    14,166 

 

c.Supplemental data - Major Customers:

 

The following tables summarize the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:

 

   September 30,
2024		   December 31,
2023		 
Accounts Receivable  % of Account Receivable 
Customer A      23%     11%
Customer B   14%   4%
Customer C   12%   3%
Customer D   9%   19%
Customer E   6%   11%
Customer F   5%   10%

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
Revenues  % of Revenues 
Customer D   16%   17%   23%   13%
Customer C   13%   1%   17%   3%
Customer F   8%   7%   10%   8%
Customer A   6%   12%   3%   17%
Customer G   7%   7%   3%   10%

 

23

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(continued)

 

NOTE 14 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):

 

d.Long-lived assets by Geography:

 

   September 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
Domestic (Israel)   8,046    4,419 
China   227    176 
USA   696    139 
Other   380    422 
    9,349    5,156 

 

NOTE 15 - RELATED PARTY TRANSACTIONS

 

During the nine months ended on September 30, 2024, the Company granted 479,505 stock options at a weighted average exercise price of $2.36 to several executive officers, and Board of Directors (“Board”) members of the Company.

 

In addition, during the nine months ended September 30, 2024 the Company granted 871,061 RSUs to several executive officers and Board members of the Company.

 

The fair value of the stock options that were granted during the nine months ended September 30, 2024 is $539 thousand, which is expected to be recognized over a 1-4-year vesting period, and the fair value of the granted RSUs is $9,975 thousand, which is expected to be recognized over a 1-4-years vesting period.

 

 

 

 

 

 

 

 

24

 

 

false --12-31 Q3 2024-09-30 0001863006 0001863006 2024-01-01 2024-09-30 0001863006 2024-09-30 0001863006 2023-12-31 0001863006 2023-01-01 2023-09-30 0001863006 2024-07-01 2024-09-30 0001863006 2023-07-01 2023-09-30 0001863006 us-gaap:CommonStockMember 2023-12-31 0001863006 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001863006 us-gaap:RetainedEarningsMember 2023-12-31 0001863006 us-gaap:CommonStockMember 2024-01-01 2024-09-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-09-30 0001863006 us-gaap:RetainedEarningsMember 2024-01-01 2024-09-30 0001863006 us-gaap:CommonStockMember 2024-09-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 0001863006 us-gaap:RetainedEarningsMember 2024-09-30 0001863006 us-gaap:CommonStockMember 2022-12-31 0001863006 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001863006 us-gaap:RetainedEarningsMember 2022-12-31 0001863006 2022-12-31 0001863006 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-09-30 0001863006 us-gaap:RetainedEarningsMember 2023-01-01 2023-09-30 0001863006 us-gaap:CommonStockMember 2023-09-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001863006 us-gaap:RetainedEarningsMember 2023-09-30 0001863006 2023-09-30 0001863006 us-gaap:CommonStockMember 2024-06-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001863006 us-gaap:RetainedEarningsMember 2024-06-30 0001863006 2024-06-30 0001863006 us-gaap:CommonStockMember 2024-07-01 2024-09-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2024-07-01 2024-09-30 0001863006 us-gaap:RetainedEarningsMember 2024-07-01 2024-09-30 0001863006 us-gaap:CommonStockMember 2023-06-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001863006 us-gaap:RetainedEarningsMember 2023-06-30 0001863006 2023-06-30 0001863006 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001863006 us-gaap:AdditionalPaidInCapitalMember 2023-07-01 2023-09-30 0001863006 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001863006 vln:AcronameMember 2024-05-31 0001863006 vln:AcronameMember 2024-05-31 2024-05-31 0001863006 2024-05-31 2024-05-31 0001863006 vln:AcronameMember 2024-01-01 2024-09-30 0001863006 2024-01-01 2024-06-30 0001863006 vln:CoreTechnologyMember 2024-01-01 2024-09-30 0001863006 vln:WACCMember 2024-09-30 0001863006 vln:AudioVideoSegmentMember 2024-09-30 0001863006 vln:HodHasharonIsraelMember 2024-04-30 0001863006 2024-04-01 2024-04-30 0001863006 vln:CoreTechnologyMember 2024-09-30 0001863006 us-gaap:CustomerRelationshipsMember 2024-09-30 0001863006 vln:PTKSponsorMember 2021-09-29 2021-09-29 0001863006 2024-09-30 2024-09-30 0001863006 vln:ForfeitureSharesMember 2024-09-30 0001863006 vln:ForfeitureSharesMember 2024-01-01 2024-09-30 0001863006 us-gaap:MeasurementInputSharePriceMember 2024-09-30 0001863006 us-gaap:MeasurementInputSharePriceMember 2023-12-31 0001863006 us-gaap:MeasurementInputExpectedTermMember 2024-09-30 0001863006 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2023-12-31 0001863006 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2023-12-31 0001863006 us-gaap:MeasurementInputPriceVolatilityMember 2024-09-30 0001863006 srt:MinimumMember us-gaap:MeasurementInputPriceVolatilityMember 2023-12-31 0001863006 srt:MaximumMember us-gaap:MeasurementInputPriceVolatilityMember 2023-12-31 0001863006 us-gaap:MeasurementInputRiskFreeInterestRateMember 2024-09-30 0001863006 srt:MinimumMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2023-12-31 0001863006 srt:MaximumMember us-gaap:MeasurementInputRiskFreeInterestRateMember 2023-12-31 0001863006 us-gaap:FairValueInputsLevel3Member 2023-12-31 0001863006 us-gaap:FairValueInputsLevel3Member 2022-12-31 0001863006 us-gaap:FairValueInputsLevel3Member 2024-01-01 2024-09-30 0001863006 us-gaap:FairValueInputsLevel3Member 2023-01-01 2023-12-31 0001863006 us-gaap:FairValueInputsLevel3Member 2024-09-30 0001863006 us-gaap:MeasurementInputDiscountRateMember vln:MonteCarloSimulationMember 2024-09-30 0001863006 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember vln:MonteCarloSimulationMember 2024-09-30 0001863006 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember vln:MonteCarloSimulationMember 2024-09-30 0001863006 us-gaap:MeasurementInputPriceVolatilityMember vln:MonteCarloSimulationMember 2024-09-30 0001863006 us-gaap:MeasurementInputRiskFreeInterestRateMember vln:MonteCarloSimulationMember 2024-09-30 0001863006 vln:EarnoutLiabilityMember 2024-01-01 2024-09-30 0001863006 srt:MinimumMember us-gaap:MeasurementInputDiscountRateMember 2024-09-30 0001863006 srt:MaximumMember us-gaap:MeasurementInputDiscountRateMember 2024-09-30 0001863006 srt:MinimumMember us-gaap:MeasurementInputExpectedTermMember 2024-09-30 0001863006 srt:MaximumMember us-gaap:MeasurementInputExpectedTermMember 2024-09-30 0001863006 us-gaap:MeasurementInputOptionVolatilityMember 2024-09-30 0001863006 vln:ValensSemiconductorLtdTwoThousandTwentyOneShareIncentivePlanMember 2024-09-30 0001863006 vln:ValensSemiconductorLtdTwoThousandTwentyOneShareIncentivePlanMember 2023-12-31 0001863006 vln:MergerAndAcquisitionTransactionMember us-gaap:EmployeeStockOptionMember 2024-09-30 0001863006 vln:MergerAndAcquisitionTransactionMember us-gaap:EmployeeStockOptionMember 2024-01-01 2024-09-30 0001863006 us-gaap:RelatedPartyMember 2024-01-01 2024-09-30 0001863006 us-gaap:EmployeeStockOptionMember 2024-09-30 0001863006 us-gaap:EmployeeStockOptionMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:RelatedPartyMember 2024-01-01 2024-09-30 0001863006 srt:MinimumMember vln:RangeOfExercisePriceOneMember 2024-01-01 2024-09-30 0001863006 srt:MaximumMember vln:RangeOfExercisePriceOneMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePriceOneMember 2024-09-30 0001863006 vln:RangeOfExercisePriceOneMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePriceTwoMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePriceTwoMember 2024-09-30 0001863006 srt:MinimumMember vln:RangeOfExercisePriceThreeMember 2024-01-01 2024-09-30 0001863006 srt:MaximumMember vln:RangeOfExercisePriceThreeMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePriceThreeMember 2024-09-30 0001863006 vln:RangeOfExercisePriceThreeMember 2024-01-01 2024-09-30 0001863006 srt:MinimumMember vln:RangeOfExercisePriceFourMember 2024-01-01 2024-09-30 0001863006 srt:MaximumMember vln:RangeOfExercisePriceFourMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePriceFourMember 2024-09-30 0001863006 vln:RangeOfExercisePriceFourMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePricesFiveMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePricesFiveMember 2024-09-30 0001863006 vln:RangeOfExercisePricesSixMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePricesSixMember 2024-09-30 0001863006 vln:RangeOfExercisePricesSevenMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePricesSevenMember 2024-09-30 0001863006 vln:RangeOfExercisePricesEightMember 2024-01-01 2024-09-30 0001863006 vln:RangeOfExercisePricesEightMember 2024-09-30 0001863006 us-gaap:CostOfSalesMember 2024-01-01 2024-09-30 0001863006 us-gaap:CostOfSalesMember 2023-01-01 2023-09-30 0001863006 us-gaap:CostOfSalesMember 2024-07-01 2024-09-30 0001863006 us-gaap:CostOfSalesMember 2023-07-01 2023-09-30 0001863006 us-gaap:ResearchAndDevelopmentExpenseMember 2024-01-01 2024-09-30 0001863006 us-gaap:ResearchAndDevelopmentExpenseMember 2023-01-01 2023-09-30 0001863006 us-gaap:ResearchAndDevelopmentExpenseMember 2024-07-01 2024-09-30 0001863006 us-gaap:ResearchAndDevelopmentExpenseMember 2023-07-01 2023-09-30 0001863006 us-gaap:SellingAndMarketingExpenseMember 2024-01-01 2024-09-30 0001863006 us-gaap:SellingAndMarketingExpenseMember 2023-01-01 2023-09-30 0001863006 us-gaap:SellingAndMarketingExpenseMember 2024-07-01 2024-09-30 0001863006 us-gaap:SellingAndMarketingExpenseMember 2023-07-01 2023-09-30 0001863006 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2024-01-01 2024-09-30 0001863006 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-01-01 2023-09-30 0001863006 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2024-07-01 2024-09-30 0001863006 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-07-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2023-12-31 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:CostOfSalesMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:CostOfSalesMember 2023-01-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:CostOfSalesMember 2024-07-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:CostOfSalesMember 2023-07-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ResearchAndDevelopmentExpenseMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ResearchAndDevelopmentExpenseMember 2023-01-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ResearchAndDevelopmentExpenseMember 2024-07-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:ResearchAndDevelopmentExpenseMember 2023-07-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingAndMarketingExpenseMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingAndMarketingExpenseMember 2023-01-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingAndMarketingExpenseMember 2024-07-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingAndMarketingExpenseMember 2023-07-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-01-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2024-07-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember us-gaap:SellingGeneralAndAdministrativeExpensesMember 2023-07-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2024-07-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2023-07-01 2023-09-30 0001863006 us-gaap:EmployeeStockOptionMember 2024-01-01 2024-09-30 0001863006 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-09-30 0001863006 us-gaap:EmployeeStockOptionMember 2024-07-01 2024-09-30 0001863006 us-gaap:EmployeeStockOptionMember 2023-07-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2023-01-01 2023-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2024-07-01 2024-09-30 0001863006 us-gaap:RestrictedStockUnitsRSUMember 2023-07-01 2023-09-30 0001863006 vln:PrivateWarrantMember 2024-01-01 2024-09-30 0001863006 vln:PrivateWarrantMember 2023-01-01 2023-09-30 0001863006 vln:PrivateWarrantMember 2024-07-01 2024-09-30 0001863006 vln:PrivateWarrantMember 2023-07-01 2023-09-30 0001863006 vln:PublicWarrantMember 2024-01-01 2024-09-30 0001863006 vln:PublicWarrantMember 2023-01-01 2023-09-30 0001863006 vln:PublicWarrantMember 2024-07-01 2024-09-30 0001863006 vln:PublicWarrantMember 2023-07-01 2023-09-30 0001863006 vln:ForfeiltureSharesMember 2024-01-01 2024-09-30 0001863006 vln:ForfeiltureSharesMember 2023-01-01 2023-09-30 0001863006 vln:ForfeiltureSharesMember 2024-07-01 2024-09-30 0001863006 vln:ForfeiltureSharesMember 2023-07-01 2023-09-30 0001863006 vln:AudioVideoMember 2024-01-01 2024-09-30 0001863006 vln:AutomotiveMember 2024-01-01 2024-09-30 0001863006 us-gaap:MaterialReconcilingItemsMember 2024-01-01 2024-09-30 0001863006 vln:AudioVideoMember 2023-01-01 2023-09-30 0001863006 vln:AutomotiveMember 2023-01-01 2023-09-30 0001863006 us-gaap:MaterialReconcilingItemsMember 2023-01-01 2023-09-30 0001863006 vln:AudioVideoMember 2024-07-01 2024-09-30 0001863006 vln:AutomotiveMember 2024-07-01 2024-09-30 0001863006 us-gaap:MaterialReconcilingItemsMember 2024-07-01 2024-09-30 0001863006 vln:AudioVideoMember 2023-07-01 2023-09-30 0001863006 vln:AutomotiveMember 2023-07-01 2023-09-30 0001863006 us-gaap:MaterialReconcilingItemsMember 2023-07-01 2023-09-30 0001863006 country:IL 2024-01-01 2024-09-30 0001863006 country:IL 2023-01-01 2023-09-30 0001863006 country:IL 2024-07-01 2024-09-30 0001863006 country:IL 2023-07-01 2023-09-30 0001863006 country:CN 2024-01-01 2024-09-30 0001863006 country:CN 2023-01-01 2023-09-30 0001863006 country:CN 2024-07-01 2024-09-30 0001863006 country:CN 2023-07-01 2023-09-30 0001863006 country:HK 2024-01-01 2024-09-30 0001863006 country:HK 2023-01-01 2023-09-30 0001863006 country:HK 2024-07-01 2024-09-30 0001863006 country:HK 2023-07-01 2023-09-30 0001863006 country:HU 2024-01-01 2024-09-30 0001863006 country:HU 2023-01-01 2023-09-30 0001863006 country:HU 2024-07-01 2024-09-30 0001863006 country:HU 2023-07-01 2023-09-30 0001863006 country:US 2024-01-01 2024-09-30 0001863006 country:US 2023-01-01 2023-09-30 0001863006 country:US 2024-07-01 2024-09-30 0001863006 country:US 2023-07-01 2023-09-30 0001863006 country:PT 2024-01-01 2024-09-30 0001863006 country:PT 2023-01-01 2023-09-30 0001863006 country:PT 2024-07-01 2024-09-30 0001863006 country:PT 2023-07-01 2023-09-30 0001863006 country:DE 2024-01-01 2024-09-30 0001863006 country:DE 2023-01-01 2023-09-30 0001863006 country:DE 2024-07-01 2024-09-30 0001863006 country:DE 2023-07-01 2023-09-30 0001863006 country:MX 2024-01-01 2024-09-30 0001863006 country:MX 2023-01-01 2023-09-30 0001863006 country:MX 2024-07-01 2024-09-30 0001863006 country:MX 2023-07-01 2023-09-30 0001863006 vln:OtherGeographicalAreasMember 2024-01-01 2024-09-30 0001863006 vln:OtherGeographicalAreasMember 2023-01-01 2023-09-30 0001863006 vln:OtherGeographicalAreasMember 2024-07-01 2024-09-30 0001863006 vln:OtherGeographicalAreasMember 2023-07-01 2023-09-30 0001863006 vln:CustomerAMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerAMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-12-31 0001863006 vln:CustomerBMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerBMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-12-31 0001863006 vln:CustomerCMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerCMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-12-31 0001863006 vln:CustomerDMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerDMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-12-31 0001863006 vln:CustomerEMember us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerEMember us-gaap:AccountsReceivableMember us-gaap:CreditConcentrationRiskMember 2023-01-01 2023-12-31 0001863006 vln:CustomerFMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerFMember us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-12-31 0001863006 vln:CustomerDMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerDMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001863006 vln:CustomerDMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-07-01 2024-09-30 0001863006 vln:CustomerDMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001863006 vln:CustomerCMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerCMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001863006 vln:CustomerCMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-07-01 2024-09-30 0001863006 vln:CustomerCMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001863006 vln:CustomerFMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerFMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001863006 vln:CustomerFMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-07-01 2024-09-30 0001863006 vln:CustomerFMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001863006 vln:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001863006 vln:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-07-01 2024-09-30 0001863006 vln:CustomerAMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001863006 vln:CustomerGMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-01-01 2024-09-30 0001863006 vln:CustomerGMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-01-01 2023-09-30 0001863006 vln:CustomerGMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2024-07-01 2024-09-30 0001863006 vln:CustomerGMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2023-07-01 2023-09-30 0001863006 country:IL 2024-09-30 0001863006 country:IL 2023-12-31 0001863006 country:CN 2024-09-30 0001863006 country:CN 2023-12-31 0001863006 country:US 2024-09-30 0001863006 country:US 2023-12-31 0001863006 vln:OtherGeographicalAreasMember 2024-09-30 0001863006 vln:OtherGeographicalAreasMember 2023-12-31 0001863006 srt:ChiefExecutiveOfficerMember 2024-01-01 2024-09-30 0001863006 srt:ChiefExecutiveOfficerMember us-gaap:RestrictedStockUnitsRSUMember 2024-01-01 2024-09-30 0001863006 us-gaap:StockOptionMember 2024-01-01 2024-09-30 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure utr:sqm
v3.24.3
Document And Entity Information
 9 Months Ended
Sep. 30, 2024
Document Information Line Items  
Entity Registrant Name VALENS SEMICONDUCTOR LTD.
Document Type 6-K
Current Fiscal Year End Date --12-31
Amendment Flag false
Entity Central Index Key 0001863006
Document Period End Date Sep. 30, 2024
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q3
Entity File Number 001-40842
v3.24.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
CURRENT ASSETS:    
Cash and cash equivalents $ 35,443 $ 17,261
Short-term deposits 97,655 124,759
Trade accounts receivable 7,217 14,642
Prepaid expenses and other current assets 3,000 4,196
Inventories 11,737 13,836
TOTAL CURRENT ASSETS 155,052 174,694
LONG-TERM ASSETS:    
Property and equipment, net 2,889 2,954
Operating lease right-of-use assets 6,460 2,202
Intangible assets 4,937
Goodwill 1,847
Other assets 702 708
TOTAL LONG-TERM ASSETS 16,835 5,864
TOTAL ASSETS 171,887 180,558
CURRENT LIABILITIES:    
Trade accounts payable 4,069 4,950
Accrued compensation 4,662 4,257
Current maturities of operating leases liabilities 2,825 1,766
Other current liabilities 7,350 4,958
TOTAL CURRENT LIABILITIES 18,906 15,931
LONG-TERM LIABILITIES:    
Forfeiture shares, no par value: 359,375 and 1,006,250 shares authorized, issued and outstanding as of September 30, 2024 and December 31, 2023 38
Non-current operating leases liabilities 3,598 190
Earnout liability 2,328
Other long-term liabilities 66 95
TOTAL LONG-TERM LIABILITIES 5,992 323
TOTAL LIABILITIES 24,898 16,254
COMMITMENTS AND CONTINGENT LIABILITIES (note 7)
SHAREHOLDERS’ EQUITY:    
Ordinary shares, no par value: 700,000,000 shares authorized as of September 30, 2024, and as of December 31, 2023; 106,288,694 and 98,876,266 (excluding 359,375 and 1,006,250 shares subject to forfeiture) shares issued and outstanding as of September 30, 2024 and as of December 31, 2023, respectively 49 49
Additional paid-in capital 353,542 341,591
Accumulated deficit (206,602) (177,336)
TOTAL SHAREHOLDERS’ EQUITY 146,989 164,304
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 171,887 $ 180,558
v3.24.3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Forfeiture shares, no par value (in Dollars per share)
Forfeiture shares, authorized 359,375 1,006,250
Forfeiture shares, issued 359,375 1,006,250
Forfeiture shares, outstanding 359,375 1,006,250
Ordinary shares, no par value (in Dollars per share)
Ordinary shares, shares authorized 700,000,000 700,000,000
Ordinary shares, shares issued 106,288,694 98,876,266
Ordinary shares, shares outstanding 106,288,694 98,876,266
v3.24.3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Income Statement [Abstract]        
REVENUES $ 16,038 $ 14,166 $ 41,194 $ 62,221
COST OF REVENUES (6,993) (5,828) (16,990) (23,156)
GROSS PROFIT 9,045 8,338 24,204 39,065
OPERATING EXPENSES:        
Research and development expenses (10,309) (13,419) (30,415) (39,540)
Sales and marketing expenses (4,880) (4,015) (13,636) (13,330)
General and administrative expenses (5,825) (3,843) (12,793) (11,376)
Change in earnout liability (264) (292)
TOTAL OPERATING EXPENSES (21,278) (21,277) (57,136) (64,246)
OPERATING LOSS (12,233) (12,939) (32,932) (25,181)
Change in fair value of Forfeiture Shares 3 89 38 1,618
Financial income, net 1,885 368 3,659 1,160
LOSS BEFORE INCOME TAXES (10,345) (12,482) (29,235) (22,403)
INCOME TAXES (14) (16) (52) (61)
LOSS AFTER INCOME TAXES (10,359) (12,498) (29,287) (22,464)
EQUITY IN EARNINGS OF INVESTEE 4 6 21 13
NET LOSS $ (10,355) $ (12,492) $ (29,266) $ (22,451)
Basic net loss per ordinary share (in Dollars per share) $ (0.1) $ (0.12) $ (0.28) $ (0.22)
Diluted net loss per ordinary share (in Dollars per share) $ (0.1) $ (0.12) $ (0.28) $ (0.22)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share (in Shares) 106,098,703 102,216,654 105,075,212 101,659,653
v3.24.3
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) - USD ($)
$ in Thousands
Ordinary shares
Additional paid-in capital
Accumulated Deficit
Total
Balance at Dec. 31, 2022 $ 49 $ 325,067 $ (157,675) $ 167,441
Balance (in Shares) at Dec. 31, 2022 [1] 98,876,266      
Exercise of options and vesting of RSUs 1,265 1,265
Exercise of options and vesting of RSUs (in Shares) 3,744,875      
Stock based compensation 11,517 11,517
Net loss for the period (22,451) (22,451)
Balance at Sep. 30, 2023 $ 49 337,849 (180,126) 157,772
Balance (in Shares) at Sep. 30, 2023 [1] 102,621,141      
Balance at Jun. 30, 2023 $ 49 333,862 (167,634) 166,277
Balance (in Shares) at Jun. 30, 2023 [1] 101,843,066      
Exercise of options and vesting of RSUs 279 279
Exercise of options and vesting of RSUs (in Shares) 778,075      
Stock based compensation 3,708 3,708
Net loss for the period (12,492) (12,492)
Balance at Sep. 30, 2023 $ 49 337,849 (180,126) 157,772
Balance (in Shares) at Sep. 30, 2023 [1] 102,621,141      
Balance at Dec. 31, 2023 $ 49 341,591 (177,336) $ 164,304
Balance (in Shares) at Dec. 31, 2023 103,154,396 [1]     98,876,266
Exercise of options and vesting of RSUs 692 $ 692
Exercise of options and vesting of RSUs (in Shares) 3,134,298     992,432
Stock based compensation 11,259 $ 11,259
Net loss for the period (29,266) (29,266)
Balance at Sep. 30, 2024 $ 49 353,542 (206,602) $ 146,989
Balance (in Shares) at Sep. 30, 2024 106,288,694 [2]     106,288,694
Balance at Jun. 30, 2024 $ 49 349,726 (196,247) $ 153,528
Balance (in Shares) at Jun. 30, 2024 [1] 105,574,104      
Exercise of options and vesting of RSUs 56 56
Exercise of options and vesting of RSUs (in Shares) 714,590      
Stock based compensation 3,760 3,760
Net loss for the period (10,355) (10,355)
Balance at Sep. 30, 2024 $ 49 $ 353,542 $ (206,602) $ 146,989
Balance (in Shares) at Sep. 30, 2024 106,288,694 [2]     106,288,694
[1] Excluding 1,006,250 Forfeiture Shares
[2] Excluding 359,375 Forfeiture Shares
v3.24.3
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss for the period $ (10,355) $ (12,492) $ (29,266) $ (22,451)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization 823 400 1,758 1,193
Stock-based compensation 3,760 3,708 11,259 11,517
Exchange rate differences 87 1,379 1,353 3,652
Interest on short-term deposits (312) 22 605 (367)
Change in fair value of Forfeiture Shares (3) (89) (38) (1,618)
Change in earnout liability 264 292
Reduction in the carrying amount of ROU assets 896 478 1,619 1,464
Equity in earnings of investee, net of dividend received 4 6 21 13
Changes in operating assets and liabilities, net of effects of businesses acquired:        
Trade accounts receivable 2,804 8,429 7,719 3,854
Prepaid expenses and other current assets 977 643 1,285 1,046
Inventories 2,274 2,115 4,675 6,914
Other assets (73) (40) (7) (6)
Trade accounts payable 738 2,779 (1,097) (4,169)
Accrued compensation 422 354 537 (654)
Other current liabilities 1,532 (1,217) 2,150 (1,433)
Change in operating lease liabilities (865) (392) (1,487) (1,251)
Other long-term liabilities (9) 5 (29) 73
Net cash provided by (used in) operating activities 2,964 6,088 1,349 (2,223)
CASH FLOWS FROM INVESTING ACTIVITIES:        
Investment in short-term deposits (16,443) (64,189) (103,662) (173,342)
Maturities of short-term deposits 25,380 47,803 129,418 166,757
Purchase of property and equipment (722) (180) (987) (1,099)
Cash paid for business combination, net of cash acquired (note 3) (7,800)
Net cash provided by (used in) investing activities 8,215 (16,566) 16,969 (7,684)
CASH FLOWS FROM FINANCING ACTIVITIES:        
Exercise of stock options 56 279 692 1,265
Net cash provided by financing activities 56 279 692 1,265
Effect of exchange rate changes on cash and cash equivalents (498) (25) (828) (196)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,737 (10,224) 18,182 (8,838)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 24,706 21,410 17,261 20,024
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 35,443 11,186 35,443 11,186
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION -        
Cash paid for taxes 39 10 102 262
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Trade accounts payable on account on property and equipment 309 309 125
Fair value of earnout liability assumed in business combination 2,036
Operating lease liabilities arising from obtaining operating right-of-use assets $ 579 $ 33 $ 5,412 $ 469
v3.24.3
General
 9 Months Ended
Sep. 30, 2024
General [Abstract]  
GENERAL

NOTE 1 - GENERAL:

 

a.Valens Semiconductor Ltd. (hereafter “Valens”, and together with its wholly owned subsidiaries, the “Company”), was incorporated in Israel in 2006.

 

As of September 30, 2021, the Company began trading on the New York Stock Exchange under the Symbol “VLN”.

 

Please also refer to Note 1(c) in the consolidated financial statement for the year ended December 31, 2023.

 

Valens is a leading provider of semiconductor products (chips), operates in the Audio-Video and Automotive industries, renowned for its Physical Layer (PHY) technology, enabling resilient high-speed connectivity over simple, low-cost infrastructure. Valens is the inventor of the HDBaseT Technology, which enables the converged delivery of ultra-high-definition digital video and audio, Ethernet, control signals, USB and power through a single cable. In the audio-video space, Valens’ HDBaseT technology enables plug-and-play digital connectivity between ultra-HD video sources and remote displays. In the automotive domain, Valens’ product offering includes both symmetric and asymmetric connectivity technology for high bandwidth transmission of native interfaces over a single low-cost wires and connectors. Valens’ advanced PHY technology for the auto industry provides the safety and resilience required to handle the noisy automotive environment, addressing the needs of Advanced driver-assistance systems (ADAS), Automotive Data Solutions (ADS), infotainment, telematics and backbone connectivity.

 

b.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. 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. 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. 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.
v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2024
Summary of Significant Accounting Policies [Abstarct]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

 

a.Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.

 

Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, cash flows, and shareholders’ equity. All such adjustments are of a normal, recurring nature.

 

The results of operations for the nine and three months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements that were included in Form 20-F for the year ended December 31, 2023.

 

The carrying value of cash and cash equivalents, accounts receivables, deposits and accounts payable (included in the condensed consolidated balance sheets) approximates their fair value because of their generally short maturities.

 

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the year ended December 31, 2023 other than as stated below.

 

b.Business combination

 

The Company allocates the fair value of consideration transferred in a business combination to the assets acquired and the liabilities assumed in the acquired business based on their fair values at the acquisition date. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The excess of the fair value of the consideration transferred over the fair value of the assets acquired, liabilities assumed in the acquired business is recorded as goodwill. The fair value of the consideration transferred may include a combination of cash and earn out payments. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The cumulative impact of revisions during the measurement period is recognized in the reporting period in which the revisions are identified. The Company includes the results of operations of the businesses that it has acquired in its consolidated results prospectively from the respective dates of acquisition.

 

c.Intangible assets

 

Goodwill

 

Goodwill reflects the excess of the consideration transferred at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. ASC 350 allows an entity to first assess qualitative factors to determine whether a quantitative goodwill impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. Examples of events or circumstances that may be indicative of impairment include but are not limited to: macroeconomic and industry conditions, overall financial performance and adverse changes in legal, regulatory, market share and other relevant entity specific events.

 

An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. This would not preclude the entity from performing the qualitative assessment in any subsequent period. The quantitative assessment compares the fair value of the reporting unit to its carrying value, including goodwill.

 

The Company determines the fair value of its reporting units using a discounted cash flow model, which utilizes key assumptions such as projected revenues, cost of revenues and operating expenses. These assumptions are determined by the Company’s management utilizing its internal operating plan, growth rates for revenues and operating expenses and margin assumptions. An additional key assumption under this approach is the discount rate, based on the weighted average cost of capital, which is adjusted for current risk-free rates of capital, current market interest rates, and the evaluation of a risk premium relevant to the business segment.

 

If the Company’s assumptions relative to revenue growth rates, cost of revenues and operating expenses were to change, the Company’s fair value calculation may change, which could result in impairment. If the Company’s assumptions relative to the discount rate and the evaluation of risk premium growth rates were to change, the Company’s fair value calculation may change, which could result in impairment. The Company uses the income approach to determine the fair value of the reporting units because it considers the anticipated future financial performance of the reporting units. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations.

 

The Company’s goodwill is tested for impairment at least on an annual basis and whenever events or changes in circumstances indicate the carrying value of a reporting unit may not be recoverable. When necessary, the Company records charges for impairments of goodwill for the amount by which the carrying amount of the respective reporting unit exceeds its fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

 

The goodwill identified in Acroname’s acquisition is assigned to the Audio Video segment (which was recorded in the acquisition of Acroname). The goodwill is deductible for tax purposes.

 

Other Intangible Assets

 

Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of core technology is recorded under cost of revenues. Amortization of customer relationships is recorded under sales and marketing expenses.

 

d.New Accounting Pronouncements

 

New accounting pronouncements effective in future periods:

 

Improvements to Reportable Segments Disclosures

 

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting–Improvements to Reportable Segments Disclosures (Topic 280)” to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU (1) require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (3) require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods; (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures; and (5) require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure or measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.

 

Improvements to Income Tax Disclosures

 

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740)–Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU require that public entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires that all entities disclose, on an annual basis, (1) the amount of income taxes paid disaggregated by federal, state, and foreign taxes, (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid, (3) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (4) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. For the Company, the amendments in this “ASU are effective for annual periods beginning after December 15, 2025, and should be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.
v3.24.3
Business Combination
 9 Months Ended
Sep. 30, 2024
Business Combination [Abstract]  
BUSINESS COMBINATION

NOTE 3 - BUSINESS COMBINATION

 

On May 31, 2024 (The “Closing date”), the Company closed a purchase transaction with the shareholders of Acroname Inc. (“Acroname”), a US company specializing in advanced automation and control technologies, to acquire 100% of its equity, for a total cash consideration of $9.1 million, of which $1.3 in consideration of the amount of cash held by Acroname at closing. In addition, the Company shall be obligated to pay Acroname’s former shareholders earnout payments of up to $7.2 million in cash, of which payment of $1.5 million upon completion of a development of a certain product by June 2026, and the remaining payment depending on the achievement of certain revenue, EBITDA and cashflow targets in 2024 and 2025.

 

The following table summarizes the fair value of the consideration transferred to Acroname shareholders:

 

   U.S. dollars in
thousands		 
Cash payment   9,160 
Fair value of earnout liability (*)   2,036 
Total consideration   11,196 

 

(*)The Company recorded earn out liability in connection with its business combination at fair value on the acquisition date.

 

The results of operations of Acroname have been included in the consolidated financial statements since the Closing date. The amounts of revenues and net loss related to Acroname that are included in the Company’s consolidated statements of operations for the period starting from the Closing date to September 30, 2024, are $2,074 thousand and $113 thousand, respectively (including amortization of tangible and intangible assets in the amount of $372 thousands).

 

The Company accounted for the transaction in accordance with Accounting Standard Codification (“ASC”) 805, Business Combinations, and following the transaction, the Company consolidates all assets and liabilities included in the transaction in accordance with ASC 810, Consolidation.

 

In the second quarter of 2024, the Company incurred $0.4 million of acquisition-related costs. Such costs are included under General and administrative expenses in the consolidated statements of operations.

 

Accounting guidance provides that the allocation of the purchase price may be adjusted for up to one year from the date of the acquisition to the extent that additional information is obtained about the facts and circumstances that existed as of the acquisition date. The primary area of the purchase price allocation that is not yet finalized is related to intangible assets, inventory, certain tax matters and the related impact on goodwill.

 

The following table summarizes the purchase price allocation to the fair value of the assets acquired and liabilities assumed:

 

   Allocation 
   of Purchase 
   Price 
   U.S. dollars in
thousands		 
     
Cash and cash equivalents   1,360 
Accounts Receivables   294 
Inventory (1)   2,635 
Other current assets   123 
Property and equipment   25 
Operating lease right-of-use assets   650 
Core Technology (2)   4,653 
Customer relationships (3)   597 
Goodwill (4)   1,847 
Total assets acquired   12,184 
Operating leases liabilities   (650)
Other liabilities   (338)
Total liabilities assumed   (988)
      
Net assets acquired   11,196 
      

 

(1)The estimated fair value of the finished goods inventory was deriving from its cost value, as of the valuation date, with the addition of the gross profit of Acroname, and after deducting the direct selling expenses with relation to the inventory, and the marketing profit.

 

(2)The acquired company is deemed to have an underlying technology of a value, through its continued use or re-use in many products or many generations of a singular product (a product family). The fair value of Core Technology was estimated by applying the income approach, specifically the Multi Period Excess Earnings method. Core Technology is amortized over a period of 5.6 years. The discount rate for Acroname’s technology was estimated at 25.3% reflecting the WACC.

 

(3)The fair value of the Customer relationships was estimated by applying the income approach, specifically the distributor method. The Customer relationships are amortized over a period of 5.6 years. The discount rate for Acroname’s Customer relationships was estimated at 25.3% reflecting the WACC.

 

(4)Goodwill is primarily related to the workforce, expected synergies such as potential cost savings in operations as a result of the business combination as well as potential future development of the mutual development projects. The goodwill is deductible for tax purposes. All of the $1,847 thousand of goodwill was assigned to Audio Video segment.

 

The following unaudited pro forma summary presents condensed consolidated information of the Company as if the business combination had occurred on January 1, 2023. The pro forma results below include the impact of certain adjustments related to the amortization of tangible and intangible assets, transaction-related costs, and the related income tax effects. This pro forma presentation does not include any impact from transaction synergies or any other material, nonrecurring adjustments directly attributable to the business combination.

 

   Unaudited Pro-forma 
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
                 
Revenues   44,038    66,615    16,038    15,471 
Net loss   (28,957)   (23,966)   (10,260)   (12,611)
v3.24.3
Inventories
 9 Months Ended
Sep. 30, 2024
Inventories [Abstract]  
INVENTORIES

NOTE 4 - INVENTORIES:

 

   September 30, 2024   December 31, 2023 
   U.S. dollars in thousands 
Work in process   6,486    6,176 
Finished goods   5,251    7,660 
    11,737    13,836 

 

Inventories write-downs amounted to $404 thousand and $619 thousand during the nine months ended September 30, 2024, and 2023, respectively. Inventories write-downs amounted to $104 thousand and $222 thousand during the three months ended September 30, 2024, and 2023, respectively. Inventories write-downs are recorded in cost of revenues.
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
LEASES

NOTE 5 - LEASES:

 

During April 2024, the Company signed an amendment to the lease agreement for its office space in Hod Hasharon, Israel, regarding 5,500 square meters. The amendment extends the lease term through February 28, 2029. This amendment also provides the Company with an option to extend the lease period by additional two years until February 28, 2031.

 

The Company concluded that it is reasonably certain that it will exercise the renewal option. Accordingly, such renewal option was included in determining the lease term.
v3.24.3
Intangible Assets
 9 Months Ended
Sep. 30, 2024
Intangible Assets [Abstract]  
INTANGIBLE ASSETS

NOTE 6 - INTANGIBLE ASSETS:

 

The Identifiable intangible assets were recorded as follows (U.S. dollars in thousands):

 

    Useful Life
(in Years)		    Gross
carrying
amount as
of the business
combination
date		    Accumulated
amortization
for the
period		    Net carrying
amount as
of
September 30,
2024		 
Core technology   5.58    4,653    277    4,376 
Customer relationships   5.58    597    36    561 
Total Intangible assets        5,250    313    4,937 

 

Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:

 

Remainder of 2024   235 
2025   941 
2026   941 
2027   941 
2028 and thenafter   1,879 
Total   4,937 
v3.24.3
Commitments and Contingent Liabilities
 9 Months Ended
Sep. 30, 2024
Commitments and Contingent Liabilities [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES

NOTE 7 - COMMITMENTS AND CONTINGENT LIABILITIES:

 

a.Noncancelable Purchase Obligations

 

The Company depends upon third party subcontractors for manufacturing of wafers, packaging and final tests. As of September 30, 2024 and December 31, 2023 the total value of open purchase orders acknowledged by such manufacturing contractors was approximately $6,132 thousand and $4,951 thousand, respectively.

 

The Company has noncancelable purchase agreements for certain IP embedded in the Company’s products as well as certain agreement for the license of development tools used by the development team. As of September 30, 2024, and December 31, 2023, the total value of non-paid amounts related to such agreements totaled to $3,130 thousand and $5,513 thousand, respectively.

 

b.Legal proceedings

 

As of September 30, 2024, and to date, the Company is not a party to, or subject to the provisions of any order, writ, injunction, judgment or decree of any court or governmental agency or instrumentality. There is no action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate.

 

c.On March 26, 2024, the Company received a complaint from a customer regarding allegedly damaged chips due to a certain batch production incident, that customer embedded in its product. The company identified and remedied the production process.

 

On September 10, 2024, the customer sent a cost claim letter in the amount of $2,346 thousand.

 

As of September 30, 2024, the Company has recorded a relevant provision in its books, within its other current liabilities. The Company believes that it will be able to obtain reimbursement from its product liability insurance, however the Company has not yet recorded such as asset in its books.
v3.24.3
Other Current Liabilities
 9 Months Ended
Sep. 30, 2024
Other Current Liabilities [Abstract]  
OTHER CURRENT LIABILITIES

NOTE 8 - OTHER CURRENT LIABILITIES:

 

   September 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
         
Accrued vacation   3,162    2,820 
Taxes payable   8    36 
Estimated accrual for a certain batch production incident   2,346    
-
 
Accrued expenses and other   1,834    2,102 
    7,350    4,958 
v3.24.3
Forfeiture Shares
 9 Months Ended
Sep. 30, 2024
Forfeiture Shares [Abstract]  
FORFEITURE SHARES

NOTE 9 - FORFEITURE SHARES:

 

a.On September 29, 2021 (the “Closing Date”, please refer to note 1c of the financial statements as of December 31, 2023), 1,006,250 Ordinary Shares that PTK sponsor received in respect of its PTK common stock, are subject to forfeiture if certain price targets for the Valens Ordinary Shares are not achieved within a certain period of time (of up to four years), after the Closing Date or if an M&A Transaction (as defined in the Merger Agreement Closing, please refer to note 1c of the financial statements as of December 31, 2023), does not occur at a certain minimum price.

 

The Company performed a Monte-Carlo simulation to calculate the fair value of such shares.

 

On September 30, 2024, 646,875 Ordinary Shares were forfeited because the specified price targets were not met.

 

The fair value of the Forfeiture Shares was computed using the following key assumptions:

 

   September 30,
2024		   December 31,
2023		 
Stock price   2.20    2.45 
Expected term (years)   1.00    0.75-1.75 
Expected volatility   55.20%   30.95%-60.31% 
Risk-free interest rate   3.98%   4.37%-5.03% 

 

b.The table below sets forth a summary of the changes in the fair value of the Forfeiture Shares classified as Level 3:

 

    Nine months
ended
September 30,
2024		    Year ended
December 31,
2023		 
    U.S. dollars in thousands 
Balance at beginning of period   38    1,751 
Changes in fair value   (38)   (1,713)
Balance at end of the period  (*)
-
    38 

 

(*)Less than $1 thousand
v3.24.3
Earnout Liability
 9 Months Ended
Sep. 30, 2024
Earnout Liability [Abstract]  
EARNOUT LIABILITY

NOTE 10 - EARNOUT LIABILITY

 

The Company shall be obligated to pay Acroname’s former shareholders earn out payments of up to $7.2 million, of which an amount of $1.5 million upon completion of a development of a certain product by June 2026, and the remaining amount depending on the achievement of certain revenue, EBITDA and cashflow targets in 2024 and 2025.

 

The Company recorded earn out liability in connection with these payments at fair value on the acquisition date. The Company performed a Monte-Carlo simulation to calculate the fair value of earnout liability. The fair value of the earnout liability was computed using the following key assumptions: discount rate of 21.4%, expected term of 1.59-2.08 years, expected volatility of 55.71% and risk-free interest rate of 5.04%.

 

Each reporting period thereafter, the Company revalues the earn-out liability and records the changes in their fair value in the consolidated statements of operations and comprehensive loss.

 

Changes in the fair value of earnout liability can result from adjustments to the discount rates, revenues, profitability targets and achievement of mutual development project. This fair value measurement represents Level 3 measurements, as they are based on significant inputs not observable in the market. Significant judgment is required in determining the assumptions utilized as of the acquisition date and for each subsequent period. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations.

 

Each reporting period thereafter, the Company will revalue earnout liability and record the changes in the fair value in consolidated statements of operations. Significant changes in unobservable inputs, mainly the probability of success and cash flows projected, could result in material changes to the earnout liability.

 

The fair value of the earnout liability was computed using the following key assumptions:

 

   September 30,
2024		 
Discount rate   20.1%-20.3% 
Expected term (years)   1.25-1.75 
Expected volatility   51.09%
Risk-free interest rate   3.90%

 

The following table summarizes the activity for the earnout liability, where fair value measurement is estimated utilizing Level 3 inputs:

 

    Nine months
ended
September 30,
2024		    Year ended
December 31,
2023		 
    U.S. dollars in thousands 
Fair value at the beginning of the year   
-
    
-
 
Initial recognition of earnout liability   (2,036)   
-
 
Change in fair value of earnout liability   (292)   
-
 
Fair value at the end of the year   (2,328)   
-
 
v3.24.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2024
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

NOTE 11 - STOCK-BASED COMPENSATION:

 

Stock Options

 

As of September 30, 2024, and December 31, 2023, the number of ordinary shares included in the Company’s option plans totaled to 35,874,244 and 30,666,212, respectively.

 

496,179 out of the outstanding options that have not yet vested as of September 30, 2024, have acceleration mechanisms according to certain terms set forth in the grant agreements primarily in the case of an M&A Transaction which constitutes a Liquidation Event.

 

As of September 30, 2024, the unrecognized compensation costs related to those unvested stock options are $615 thousand, which are expected to be recognized over a weighted-average period of 1.59 years.

 

The following is a summary of the status of the Company’s share option plan as of September 30, 2024:

 

   Nine months ended 
   September 30, 2024 
   Number of
Options		   Weighted-
Average
Exercise
price		 
Options outstanding as of December 31, 2023   11,326,943   $0.97 
Granted during the period   479,505   $2.36 
Exercised during the period   (992,432)  $0.69 
Forfeited during the period   (14,451)  $0.80 
Options outstanding as of September 30, 2024   10,799,565   $1.06 
Options exercisable as of September 30, 2024   10,093,859   $0.97 

 

The following table summarizes information about stock options outstanding as of September 30, 2024:

 

Outstanding as of September 30, 2024   Exercisable as of September 30, 2024 
Range of exercise prices   Number outstanding   Weighted average remaining contractual term   Weighted average exercise price   Aggregate intrinsic value (U.S. dollars in thousands)   Number Exercisable   Weighted average remaining contractual term   Weighted Average exercise price  

Aggregate intrinsic value (U.S. dollars in thousands)

 
                                  
$0.15-$0.86    9,873,168    4.15   $0.80    13,830    9,622,746    4.10   $0.80    13,494 
$1.87    3,313    6.28   $1.87    1    2,898    6.28   $1.87    1 
$2.10-$2.13    72,273    5.45   $2.12    6    16,563    0.25   $2.10    2 
$2.39-$2.40    425,269    6.29   $2.39    
-
    156,889    6.29   $2.39    - 
$4.99    196,625    5.29   $4.99    
-
    127,096    5.29   $4.99    
-
 
$5.36    140,000    4.75   $5.36    
-
    78,750    4.75   $5.36    
-
 
$7.58    85,380    4.29   $7.58    
-
    85,380    4.29   $7.58    
-
 
$9.07    3,537    4.21   $9.07    
-
    3,537    4.21   $9.07    
-
 

 

The calculated fair value of option grants was estimated using the Black-Scholes option-pricing model with the following assumptions:

 

   For the
nine months
ended on
September 30,
2024		   For the
nine months
ended on
September 30,
2023		 
Expected term   4-5    3-5 
Expected volatility   57.53%-58.56%    48.35%-63.84% 
Expected dividend rate   0%   0%
Risk-free rate   3.55%-3.92%    3.62%-4.21% 

 

During the nine months period ended on September 30, 2024, 479,505 options were granted to related parties (please refer to Note 15 for further information).

 

As of September 30, 2024, the unrecognized compensation costs related to unvested stock options was $1,357 thousand, which are expected to be recognized over a weighted-average period of 1.17 years.

 

The weighted-average fair value of the options that were granted during the period ended September 30, 2024 was $2.36 at the grant date.

 

The total intrinsic value of options exercised during the period of nine months ended September 30, 2024 and 2023 was $1,939 and $8,905 thousand, respectively.

The following table presents the classification of the stock options expenses for the periods indicated:

 

   Nine months Ended
September 30		   Three months Ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Cost of revenue   132    140    44    44 
Research and development   651    904    210    273 
Sales and marketing   684    847    194    277 
General and administrative   752    2,063    189    714 
Total stock-based compensation   2,219    3,954    637    1,308 

 

Restricted Stock Units

 

The following is a summary of the status of the Company’s RSU’s as of September 30, 2024, as well as changes during the period of nine months ended September 30, 2024:

 

   Number of
RSUs		   Weighted-
Average
Grant Date
Fair Value		 
RSUs outstanding at the beginning of the year   5,442,313   $5.26 
Granted during the period   6,235,178   $2.17 
Vested during the period   (2,141,866)  $4.99 
Forfeited during the period   (469,199)  $3.48 
Outstanding at the end of the period   9,066,426   $3.26 

 

As of September 30, 2024, the unrecognized compensation cost related to unvested RSUs totaled to approximately $24,838 thousand and is expected to be expensed over a weighted-average recognition period of approximately 2.50 years.

 

During the nine months ended on September 30, 2024 871,061 RSU’s were granted to several related parties (please refer to Note 15 regarding Related Parties).

 

The following table presents the classification of RSU’s expenses for the periods indicated:

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   580    442    194    154 
Research and development   4,499    3,924    1,542    1,144 
Sales and marketing   2,268    1,806    779    609 
General and administrative   1,693    1,391    608    493 
Total stock-based compensation-RSUs   9,040    7,563    3,123    2,400 
v3.24.3
Net Loss Per Ordinary Share
 9 Months Ended
Sep. 30, 2024
Net Loss Per Ordinary Share [Abstract]  
NET LOSS PER ORDINARY SHARE

NOTE 12 - NET LOSS PER ORDINARY SHARE:

 

The following table sets forth the computation of basic and diluted net income (loss) per ordinary share for the periods indicated:

 

   Nine months Ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Basic net loss per ordinary share                
Numerator:                
Net loss   (29,266)   (22,451)   (10,355)   (12,492)
                     
Denominator:                    
Weighted average common shares and vested RSUs – basic and diluted   105,075,212    101,659,653    106,098,703    102,216,654 
Basic and dilutive net loss per common share   (0.28)   (0.22)   (0.10)   (0.12)

 

The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
Options   11,063,254    12,479,143    10,806,286    11,955,067 
Restricted Stock Units   7,254,370    5,920,117    9,394,111    6,056,775 
Private Warrants   3,330,000    3,330,000    3,330,000    3,330,000 
Public Warrants   5,750,000    5,750,000    5,750,000    5,750,000 
Forfeiture Shares   790,625    1,006,250    359,375    1,006,250 
v3.24.3
Financial Income, Net
 9 Months Ended
Sep. 30, 2024
Financial Income, Net [Abstract]  
FINANCIAL INCOME, NET

NOTE 13 - FINANCIAL INCOME, NET

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Foreign currency exchange differences   (972)   (3,652)   299    (1,379)
Interest income on short-term deposits   4,658    4,892    1,597    1,802 
Other   (27)   (80)   (11)   (55)
Total financial income, net   3,659    1,160    1,885    368 
v3.24.3
Segment and Revenue by Geography and By Major Customer
 9 Months Ended
Sep. 30, 2024
Segment and Revenue by Geography and by Major Customer [Abstract]  
SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER

NOTE 14 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER:

 

a.For the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments, to make decisions about resources to be allocated to the segments and assess their performance. Assets’ information is not provided to the CODM and is not being reviewed. Revenues and cost of goods sold are directly associated with the activities of a specific segment. Direct operating expenses, including general and administrative expenses, associated with the activities of a specific segment are charged to that segment. General and administrative expenses which cannot be attributed directly, are allocated evenly between segments. Other operating expenses are allocated to segments based on headcount ratio.

 

   Nine months ended on
September 30, 2024		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   24,618    16,576    41,194 
Gross profit   18,203    6,001    24,204 
Research and development expenses   (17,348)   (13,067)   (30,415)
Sales and marketing expenses   (6,410)   (7,226)   (13,636)
General and administrative expenses   (5,816)   (6,977)   (12,793)
Change in earnout liability   (292)   
-
    (292)
Segment operating profit (loss)   (11,663)   (21,269)   (32,932)
Change in fair value of Forfeiture Shares             38 
Financial income, net             3,659 
Loss before taxes on income             (29,235)
                
Depreciation and Amortization expenses   1,067    691    1,758 
Stock-based compensation   5,145    6,114    11,259 

 

   Nine months ended on
September 30, 2023		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   41,560    20,661    62,221 
Gross profit   32,114    6,951    39,065 
Research and development expenses   (20,144)   (19,396)   (39,540)
Sales and marketing expenses   (5,663)   (7,667)   (13,330)
General and administrative expenses   (5,724)   (5,652)   (11,376)
Segment operating profit (loss)   583    (25,764)   (25,181)
Change in fair value of Forfeiture Shares             1,618 
Financial expenses, net             1,160 
Loss before taxes on income             (22,403)
                
Depreciation and Amortization expenses   531    662    1,193 
Stock-based compensation   4,861    6,656    11,517 

 

   Three months ended on
September 30, 2024		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   9,371    6,667    16,038 
Gross profit   6,592    2,453    9,045 
Research and development expenses   (5,569)   (4,740)   (10,309)
Sales and marketing expenses   (2,470)   (2,410)   (4,880)
General and administrative expenses   (2,211)   (3,614)   (5,825)
Change in earnout liability   (264)   
-
    (264)
Segment operating profit (loss)   (3,922)   (8,311)   (12,233)
Change in fair value of Forfeiture Shares             3 
Financial income, net             1,885 
Loss before taxes on income             (10,345)
                
Depreciation and Amortization expenses   559    264    823 
Stock-based compensation   1,721    2,039    3,760 

 

   Three months ended on
September 30, 2023		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   9,731    4,435    14,166 
Gross profit   7,380    958    8,338 
Research and development expenses   (9,050)   (4,369)   (13,419)
Sales and marketing expenses   (1,654)   (2,361)   (4,015)
General and administrative expenses   (1,968)   (1,875)   (3,843)
Segment operating profit (loss)   (5,292)   (7,647)   (12,939)
Change in fair value of Forfeiture Shares             89 
Financial income, net             368 
Loss before taxes on income             (12,482)
                
Depreciation and Amortization expenses   179    221    400 
Stock-based compensation   1,574    2,134    3,708 

 

b.Geographic Revenues

 

The following table shows revenue by geography, based on the customers’ “bill to” location:

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Israel   582    1,858    151    592 
China   5,630    6,552    2,123    1,797 
Hong Kong   3,878    5,415    2,304    1,281 
Hungary   9,978    16,391    3,849    3,378 
United States   6,669    4,424    2,207    983 
Portugal   5,547    480    2,448    413 
Germany   2,011    6,914    584    1,277 
Mexico   1,358    5,863    173    1,554 
Other   5,541    14,324    2,199    2,891 
    41,194    62,221    16,038    14,166 

 

c.Supplemental data - Major Customers:

 

The following tables summarize the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:

 

   September 30,
2024		   December 31,
2023		 
Accounts Receivable  % of Account Receivable 
Customer A      23%     11%
Customer B   14%   4%
Customer C   12%   3%
Customer D   9%   19%
Customer E   6%   11%
Customer F   5%   10%

 

   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
Revenues  % of Revenues 
Customer D   16%   17%   23%   13%
Customer C   13%   1%   17%   3%
Customer F   8%   7%   10%   8%
Customer A   6%   12%   3%   17%
Customer G   7%   7%   3%   10%

 

d.Long-lived assets by Geography:

 

   September 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
Domestic (Israel)   8,046    4,419 
China   227    176 
USA   696    139 
Other   380    422 
    9,349    5,156 
v3.24.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 15 - RELATED PARTY TRANSACTIONS

 

During the nine months ended on September 30, 2024, the Company granted 479,505 stock options at a weighted average exercise price of $2.36 to several executive officers, and Board of Directors (“Board”) members of the Company.

 

In addition, during the nine months ended September 30, 2024 the Company granted 871,061 RSUs to several executive officers and Board members of the Company.

 

The fair value of the stock options that were granted during the nine months ended September 30, 2024 is $539 thousand, which is expected to be recognized over a 1-4-year vesting period, and the fair value of the granted RSUs is $9,975 thousand, which is expected to be recognized over a 1-4-years vesting period.
v3.24.3
Accounting Policies, by Policy (Policies)
 9 Months Ended
Sep. 30, 2024
Summary of Significant Accounting Policies [Abstarct]  
Basis of Presentation
a.Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.

Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, cash flows, and shareholders’ equity. All such adjustments are of a normal, recurring nature.

 

The results of operations for the nine and three months ended September 30, 2024 are not necessarily indicative of the results to be expected for the full year ending December 31, 2024. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements that were included in Form 20-F for the year ended December 31, 2023.

The carrying value of cash and cash equivalents, accounts receivables, deposits and accounts payable (included in the condensed consolidated balance sheets) approximates their fair value because of their generally short maturities.

There have been no material changes in our significant accounting policies as described in our consolidated financial statements for the year ended December 31, 2023 other than as stated below.
Business combination
b.Business combination

The Company allocates the fair value of consideration transferred in a business combination to the assets acquired and the liabilities assumed in the acquired business based on their fair values at the acquisition date. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. The excess of the fair value of the consideration transferred over the fair value of the assets acquired, liabilities assumed in the acquired business is recorded as goodwill. The fair value of the consideration transferred may include a combination of cash and earn out payments. The allocation of the consideration transferred in certain cases may be subject to revision based on the final determination of fair values during the measurement period, which may be up to one year from the acquisition date. The cumulative impact of revisions during the measurement period is recognized in the reporting period in which the revisions are identified. The Company includes the results of operations of the businesses that it has acquired in its consolidated results prospectively from the respective dates of acquisition.
Intangible assets
c.Intangible assets

Goodwill

Goodwill reflects the excess of the consideration transferred at the business combination date over the fair values of the identifiable net assets acquired. Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company allocates goodwill to its reporting units based on the reporting unit expected to benefit from the business combination. The primary items that generate goodwill include the value of the synergies between the acquired company and the Company and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. ASC 350 allows an entity to first assess qualitative factors to determine whether a quantitative goodwill impairment test is necessary. Further testing is only required if the entity determines, based on the qualitative assessment, that it is more likely than not that a reporting unit’s fair value is less than its carrying amount. Otherwise, no further impairment testing is required. Examples of events or circumstances that may be indicative of impairment include but are not limited to: macroeconomic and industry conditions, overall financial performance and adverse changes in legal, regulatory, market share and other relevant entity specific events.

 

An entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. This would not preclude the entity from performing the qualitative assessment in any subsequent period. The quantitative assessment compares the fair value of the reporting unit to its carrying value, including goodwill.

The Company determines the fair value of its reporting units using a discounted cash flow model, which utilizes key assumptions such as projected revenues, cost of revenues and operating expenses. These assumptions are determined by the Company’s management utilizing its internal operating plan, growth rates for revenues and operating expenses and margin assumptions. An additional key assumption under this approach is the discount rate, based on the weighted average cost of capital, which is adjusted for current risk-free rates of capital, current market interest rates, and the evaluation of a risk premium relevant to the business segment.

If the Company’s assumptions relative to revenue growth rates, cost of revenues and operating expenses were to change, the Company’s fair value calculation may change, which could result in impairment. If the Company’s assumptions relative to the discount rate and the evaluation of risk premium growth rates were to change, the Company’s fair value calculation may change, which could result in impairment. The Company uses the income approach to determine the fair value of the reporting units because it considers the anticipated future financial performance of the reporting units. Accordingly, changes in the assumptions described above could have a material impact on the Company’s consolidated results of operations.

The Company’s goodwill is tested for impairment at least on an annual basis and whenever events or changes in circumstances indicate the carrying value of a reporting unit may not be recoverable. When necessary, the Company records charges for impairments of goodwill for the amount by which the carrying amount of the respective reporting unit exceeds its fair value. However, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.

The goodwill identified in Acroname’s acquisition is assigned to the Audio Video segment (which was recorded in the acquisition of Acroname). The goodwill is deductible for tax purposes.

Other Intangible Assets

Definite life intangible assets are amortized using the straight-line method over their estimated period of useful life. Amortization of core technology is recorded under cost of revenues. Amortization of customer relationships is recorded under sales and marketing expenses.

 
New Accounting Pronouncements
d.New Accounting Pronouncements

New accounting pronouncements effective in future periods:

Improvements to Reportable Segments Disclosures

In November 2023, the FASB issued ASU 2023-07 “Segment Reporting–Improvements to Reportable Segments Disclosures (Topic 280)” to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU (1) require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) require that a public entity disclose, on an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition; (3) require that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods; (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures; and (5) require that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure or measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and should be applied retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740)–Improvements to Income Tax Disclosures” to enhance the transparency and decision usefulness of income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments in this ASU require that public entities, on an annual basis, disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This ASU also requires that all entities disclose, on an annual basis, (1) the amount of income taxes paid disaggregated by federal, state, and foreign taxes, (2) the amount of income taxes paid disaggregated by individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid, (3) income or loss from continuing operations before income tax expense or benefit disaggregated between domestic and foreign, and (4) income tax expense or benefit from continuing operations disaggregated by federal, state, and foreign. For the Company, the amendments in this “ASU are effective for annual periods beginning after December 15, 2025, and should be applied on a prospective basis with the option to apply retrospectively. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is currently evaluating the impact of the adoption of these amendments on its consolidated financial statements.
v3.24.3
Business Combination (Tables)
 9 Months Ended
Sep. 30, 2024
Business Combination [Abstract]  
Schedule of Fair Value of Consideration Transferred to Acroname Shareholders The following table summarizes the fair value of the consideration transferred to Acroname shareholders:
   U.S. dollars in
thousands		 
Cash payment   9,160 
Fair value of earnout liability (*)   2,036 
Total consideration   11,196 
(*)The Company recorded earn out liability in connection with its business combination at fair value on the acquisition date.
Schedule of Assets Acquired and Liabilities The following table summarizes the purchase price allocation to the fair value of the assets acquired and liabilities assumed:
   Allocation 
   of Purchase 
   Price 
   U.S. dollars in
thousands		 
     
Cash and cash equivalents   1,360 
Accounts Receivables   294 
Inventory (1)   2,635 
Other current assets   123 
Property and equipment   25 
Operating lease right-of-use assets   650 
Core Technology (2)   4,653 
Customer relationships (3)   597 
Goodwill (4)   1,847 
Total assets acquired   12,184 
Operating leases liabilities   (650)
Other liabilities   (338)
Total liabilities assumed   (988)
      
Net assets acquired   11,196 
      
(1)The estimated fair value of the finished goods inventory was deriving from its cost value, as of the valuation date, with the addition of the gross profit of Acroname, and after deducting the direct selling expenses with relation to the inventory, and the marketing profit.
(2)The acquired company is deemed to have an underlying technology of a value, through its continued use or re-use in many products or many generations of a singular product (a product family). The fair value of Core Technology was estimated by applying the income approach, specifically the Multi Period Excess Earnings method. Core Technology is amortized over a period of 5.6 years. The discount rate for Acroname’s technology was estimated at 25.3% reflecting the WACC.
(3)The fair value of the Customer relationships was estimated by applying the income approach, specifically the distributor method. The Customer relationships are amortized over a period of 5.6 years. The discount rate for Acroname’s Customer relationships was estimated at 25.3% reflecting the WACC.
(4)Goodwill is primarily related to the workforce, expected synergies such as potential cost savings in operations as a result of the business combination as well as potential future development of the mutual development projects. The goodwill is deductible for tax purposes. All of the $1,847 thousand of goodwill was assigned to Audio Video segment.

 
Schedule of Unaudited Pro-Forma This pro forma presentation does not include any impact from transaction synergies or any other material, nonrecurring adjustments directly attributable to the business combination.
   Unaudited Pro-forma 
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
                 
Revenues   44,038    66,615    16,038    15,471 
Net loss   (28,957)   (23,966)   (10,260)   (12,611)
v3.24.3
Inventories (Tables)
 9 Months Ended
Sep. 30, 2024
Inventories [Abstract]  
Schedule of Inventories
   September 30, 2024   December 31, 2023 
   U.S. dollars in thousands 
Work in process   6,486    6,176 
Finished goods   5,251    7,660 
    11,737    13,836 
v3.24.3
Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2024
Intangible Assets [Abstract]  
Schedule of Identifiable Intangible Assets The Identifiable intangible assets were recorded as follows (U.S. dollars in thousands):
    Useful Life
(in Years)		    Gross
carrying
amount as
of the business
combination
date		    Accumulated
amortization
for the
period		    Net carrying
amount as
of
September 30,
2024		 
Core technology   5.58    4,653    277    4,376 
Customer relationships   5.58    597    36    561 
Total Intangible assets        5,250    313    4,937 
Schedule of Amortization of Intangible Assets Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:
Remainder of 2024   235 
2025   941 
2026   941 
2027   941 
2028 and thenafter   1,879 
Total   4,937 
v3.24.3
Other Current Liabilities (Tables)
 9 Months Ended
Sep. 30, 2024
Other Current Liabilities [Abstract]  
Schedule of Other Current Liabilities
   September 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
         
Accrued vacation   3,162    2,820 
Taxes payable   8    36 
Estimated accrual for a certain batch production incident   2,346    
-
 
Accrued expenses and other   1,834    2,102 
    7,350    4,958 
v3.24.3
Forfeiture Shares (Tables)
 9 Months Ended
Sep. 30, 2024
Forfeiture Shares (Tables) [Line Items]  
Schedule of Changes in Fair Value of Forfeited Shares The table below sets forth a summary of the changes in the fair value of the Forfeiture Shares classified as Level 3:
    Nine months
ended
September 30,
2024		    Year ended
December 31,
2023		 
    U.S. dollars in thousands 
Balance at beginning of period   38    1,751 
Changes in fair value   (38)   (1,713)
Balance at end of the period  (*)
-
    38 
(*)Less than $1 thousand
Forfeiture Shares [Member]  
Forfeiture Shares (Tables) [Line Items]  
Schedule of Fair Value of Forfeited Shares The fair value of the Forfeiture Shares was computed using the following key assumptions:
   September 30,
2024		   December 31,
2023		 
Stock price   2.20    2.45 
Expected term (years)   1.00    0.75-1.75 
Expected volatility   55.20%   30.95%-60.31% 
Risk-free interest rate   3.98%   4.37%-5.03% 
v3.24.3
Earnout Liability (Tables)
 9 Months Ended
Sep. 30, 2024
Earnout Liability (Tables) [Line Items]  
Schedule of Fair Value Measurement is Estimated Utilizing Level 3 Inputs The following table summarizes the activity for the earnout liability, where fair value measurement is estimated utilizing Level 3 inputs:
    Nine months
ended
September 30,
2024		    Year ended
December 31,
2023		 
    U.S. dollars in thousands 
Fair value at the beginning of the year   
-
    
-
 
Initial recognition of earnout liability   (2,036)   
-
 
Change in fair value of earnout liability   (292)   
-
 
Fair value at the end of the year   (2,328)   
-
 
Earnout Liability [Member]  
Earnout Liability (Tables) [Line Items]  
Schedule of Fair Value of the Earnout Liability The fair value of the earnout liability was computed using the following key assumptions:
   September 30,
2024		 
Discount rate   20.1%-20.3% 
Expected term (years)   1.25-1.75 
Expected volatility   51.09%
Risk-free interest rate   3.90%
v3.24.3
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
Stock-Based Compensation [Line Items]  
Schedule of Share Option Plan The following is a summary of the status of the Company’s share option plan as of September 30, 2024:
   Nine months ended 
   September 30, 2024 
   Number of
Options		   Weighted-
Average
Exercise
price		 
Options outstanding as of December 31, 2023   11,326,943   $0.97 
Granted during the period   479,505   $2.36 
Exercised during the period   (992,432)  $0.69 
Forfeited during the period   (14,451)  $0.80 
Options outstanding as of September 30, 2024   10,799,565   $1.06 
Options exercisable as of September 30, 2024   10,093,859   $0.97 
Schedule of Information about Stock Options Outstanding The following table summarizes information about stock options outstanding as of September 30, 2024:
Outstanding as of September 30, 2024   Exercisable as of September 30, 2024 
Range of exercise prices   Number outstanding   Weighted average remaining contractual term   Weighted average exercise price   Aggregate intrinsic value (U.S. dollars in thousands)   Number Exercisable   Weighted average remaining contractual term   Weighted Average exercise price  

Aggregate intrinsic value (U.S. dollars in thousands)

 
                                  
$0.15-$0.86    9,873,168    4.15   $0.80    13,830    9,622,746    4.10   $0.80    13,494 
$1.87    3,313    6.28   $1.87    1    2,898    6.28   $1.87    1 
$2.10-$2.13    72,273    5.45   $2.12    6    16,563    0.25   $2.10    2 
$2.39-$2.40    425,269    6.29   $2.39    
-
    156,889    6.29   $2.39    - 
$4.99    196,625    5.29   $4.99    
-
    127,096    5.29   $4.99    
-
 
$5.36    140,000    4.75   $5.36    
-
    78,750    4.75   $5.36    
-
 
$7.58    85,380    4.29   $7.58    
-
    85,380    4.29   $7.58    
-
 
$9.07    3,537    4.21   $9.07    
-
    3,537    4.21   $9.07    
-
 

 
Schedule of Option-Pricing Model The calculated fair value of option grants was estimated using the Black-Scholes option-pricing model with the following assumptions:
   For the
nine months
ended on
September 30,
2024		   For the
nine months
ended on
September 30,
2023		 
Expected term   4-5    3-5 
Expected volatility   57.53%-58.56%    48.35%-63.84% 
Expected dividend rate   0%   0%
Risk-free rate   3.55%-3.92%    3.62%-4.21% 
Schedule of Classification of RSU's Expenses The following table presents the classification of the stock options expenses for the periods indicated:
   Nine months Ended
September 30		   Three months Ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Cost of revenue   132    140    44    44 
Research and development   651    904    210    273 
Sales and marketing   684    847    194    277 
General and administrative   752    2,063    189    714 
Total stock-based compensation   2,219    3,954    637    1,308 

 
Schedule of Company’s RSU’s The following is a summary of the status of the Company’s RSU’s as of September 30, 2024, as well as changes during the period of nine months ended September 30, 2024:
   Number of
RSUs		   Weighted-
Average
Grant Date
Fair Value		 
RSUs outstanding at the beginning of the year   5,442,313   $5.26 
Granted during the period   6,235,178   $2.17 
Vested during the period   (2,141,866)  $4.99 
Forfeited during the period   (469,199)  $3.48 
Outstanding at the end of the period   9,066,426   $3.26 
Restricted Stock Units [Member]  
Stock-Based Compensation [Line Items]  
Schedule of Classification of RSU's Expenses The following table presents the classification of RSU’s expenses for the periods indicated:
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   580    442    194    154 
Research and development   4,499    3,924    1,542    1,144 
Sales and marketing   2,268    1,806    779    609 
General and administrative   1,693    1,391    608    493 
Total stock-based compensation-RSUs   9,040    7,563    3,123    2,400 
v3.24.3
Net Loss Per Ordinary Share (Tables)
 9 Months Ended
Sep. 30, 2024
Net Loss Per Ordinary Share [Abstract]  
Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share The following table sets forth the computation of basic and diluted net income (loss) per ordinary share for the periods indicated:
   Nine months Ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Basic net loss per ordinary share                
Numerator:                
Net loss   (29,266)   (22,451)   (10,355)   (12,492)
                     
Denominator:                    
Weighted average common shares and vested RSUs – basic and diluted   105,075,212    101,659,653    106,098,703    102,216,654 
Basic and dilutive net loss per common share   (0.28)   (0.22)   (0.10)   (0.12)
Schedule of Weighted-Average Shares of Securities The following weighted-average shares of securities were not included in the computation of diluted net income (loss) per common share as their effect would have been antidilutive:
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
Options   11,063,254    12,479,143    10,806,286    11,955,067 
Restricted Stock Units   7,254,370    5,920,117    9,394,111    6,056,775 
Private Warrants   3,330,000    3,330,000    3,330,000    3,330,000 
Public Warrants   5,750,000    5,750,000    5,750,000    5,750,000 
Forfeiture Shares   790,625    1,006,250    359,375    1,006,250 
v3.24.3
Financial Income, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Financial Income, Net [Abstract]  
Schedule of Financial Income, Net
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Foreign currency exchange differences   (972)   (3,652)   299    (1,379)
Interest income on short-term deposits   4,658    4,892    1,597    1,802 
Other   (27)   (80)   (11)   (55)
Total financial income, net   3,659    1,160    1,885    368 
v3.24.3
Segment and Revenue by Geography and By Major Customer (Tables)
 9 Months Ended
Sep. 30, 2024
Segment and Revenue by Geography and by Major Customer [Abstract]  
Schedule of Evaluating Financial Performance and Allocating Resources
   Nine months ended on
September 30, 2024		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   24,618    16,576    41,194 
Gross profit   18,203    6,001    24,204 
Research and development expenses   (17,348)   (13,067)   (30,415)
Sales and marketing expenses   (6,410)   (7,226)   (13,636)
General and administrative expenses   (5,816)   (6,977)   (12,793)
Change in earnout liability   (292)   
-
    (292)
Segment operating profit (loss)   (11,663)   (21,269)   (32,932)
Change in fair value of Forfeiture Shares             38 
Financial income, net             3,659 
Loss before taxes on income             (29,235)
                
Depreciation and Amortization expenses   1,067    691    1,758 
Stock-based compensation   5,145    6,114    11,259 
   Nine months ended on
September 30, 2023		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   41,560    20,661    62,221 
Gross profit   32,114    6,951    39,065 
Research and development expenses   (20,144)   (19,396)   (39,540)
Sales and marketing expenses   (5,663)   (7,667)   (13,330)
General and administrative expenses   (5,724)   (5,652)   (11,376)
Segment operating profit (loss)   583    (25,764)   (25,181)
Change in fair value of Forfeiture Shares             1,618 
Financial expenses, net             1,160 
Loss before taxes on income             (22,403)
                
Depreciation and Amortization expenses   531    662    1,193 
Stock-based compensation   4,861    6,656    11,517 

 

   Three months ended on
September 30, 2024		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   9,371    6,667    16,038 
Gross profit   6,592    2,453    9,045 
Research and development expenses   (5,569)   (4,740)   (10,309)
Sales and marketing expenses   (2,470)   (2,410)   (4,880)
General and administrative expenses   (2,211)   (3,614)   (5,825)
Change in earnout liability   (264)   
-
    (264)
Segment operating profit (loss)   (3,922)   (8,311)   (12,233)
Change in fair value of Forfeiture Shares             3 
Financial income, net             1,885 
Loss before taxes on income             (10,345)
                
Depreciation and Amortization expenses   559    264    823 
Stock-based compensation   1,721    2,039    3,760 
   Three months ended on
September 30, 2023		 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   9,731    4,435    14,166 
Gross profit   7,380    958    8,338 
Research and development expenses   (9,050)   (4,369)   (13,419)
Sales and marketing expenses   (1,654)   (2,361)   (4,015)
General and administrative expenses   (1,968)   (1,875)   (3,843)
Segment operating profit (loss)   (5,292)   (7,647)   (12,939)
Change in fair value of Forfeiture Shares             89 
Financial income, net             368 
Loss before taxes on income             (12,482)
                
Depreciation and Amortization expenses   179    221    400 
Stock-based compensation   1,574    2,134    3,708 

 
Schedule of Revenue by Geography, Based on the Customers The following table shows revenue by geography, based on the customers’ “bill to” location:
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
Israel   582    1,858    151    592 
China   5,630    6,552    2,123    1,797 
Hong Kong   3,878    5,415    2,304    1,281 
Hungary   9,978    16,391    3,849    3,378 
United States   6,669    4,424    2,207    983 
Portugal   5,547    480    2,448    413 
Germany   2,011    6,914    584    1,277 
Mexico   1,358    5,863    173    1,554 
Other   5,541    14,324    2,199    2,891 
    41,194    62,221    16,038    14,166 
Schedule of Supplemental Data - Major Customers The following tables summarize the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:
   September 30,
2024		   December 31,
2023		 
Accounts Receivable  % of Account Receivable 
Customer A      23%     11%
Customer B   14%   4%
Customer C   12%   3%
Customer D   9%   19%
Customer E   6%   11%
Customer F   5%   10%
   Nine months ended
September 30		   Three months ended
September 30		 
   2024   2023   2024   2023 
Revenues  % of Revenues 
Customer D   16%   17%   23%   13%
Customer C   13%   1%   17%   3%
Customer F   8%   7%   10%   8%
Customer A   6%   12%   3%   17%
Customer G   7%   7%   3%   10%

 
Schedule of Long-Lived Assets by Geography Long-lived assets by Geography:
   September 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
Domestic (Israel)   8,046    4,419 
China   227    176 
USA   696    139 
Other   380    422 
    9,349    5,156 
v3.24.3
Business Combination (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 9 Months Ended
May 31, 2024
Sep. 30, 2024
Sep. 30, 2023
Jun. 30, 2024
Sep. 30, 2024
Sep. 30, 2023
Business Combination [Line Items]            
Cash Consideration         $ 9,160  
Amount consideration $ 1,300          
Payments of completion development $ 1,500          
Amounts of net loss   $ (10,260) $ (12,611)   (28,957) $ (23,966)
Amortization of tangible and intangible assets         $ 372  
Acquisition related costs       $ 400    
Amortized over a period         5 years 7 months 6 days  
Goodwill [1]   1,847     $ 1,847  
Core Technology [Member]            
Business Combination [Line Items]            
Amortized over a period         5 years 7 months 6 days  
Amortized discount rate, percentage         25.30%  
Acroname [Member]            
Business Combination [Line Items]            
Percentage of acquire equity 100.00%          
Cash Consideration $ 9,100          
Earn out payments $ 7,200          
Amounts of revenues         $ 2,074  
Amounts of net loss         113  
Audio Video Segment [Member]            
Business Combination [Line Items]            
Goodwill   $ 1,847     $ 1,847  
WACC [Member]            
Business Combination [Line Items]            
Discount rate, percentage   25.30%     25.30%  
[1] Goodwill is primarily related to the workforce, expected synergies such as potential cost savings in operations as a result of the business combination as well as potential future development of the mutual development projects. The goodwill is deductible for tax purposes. All of the $1,847 thousand of goodwill was assigned to Audio Video segment.
v3.24.3
Business Combination (Details) - Schedule of Fair Value of Consideration Transferred to Acroname Shareholders
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Schedule of Fair Value of Consideration Transferred to Acroname Shareholders [Abstract]  
Cash payment $ 9,160
Fair value of earnout liability 2,036 [1]
Total consideration $ 11,196
[1] The Company recorded earn out liability in connection with its business combination at fair value on the acquisition date.
v3.24.3
Business Combination (Details) - Schedule of Assets Acquired and Liabilities
$ in Thousands
Sep. 30, 2024
USD ($)
Schedule of Assets Acquired and Liabilities [Abstract]  
Cash and cash equivalents $ 1,360
Accounts Receivables 294
Inventory 2,635 [1]
Other current assets 123
Property and equipment 25
Operating lease right-of-use assets 650
Core Technology 4,653 [2]
Customer relationships 597 [3]
Goodwill 1,847 [4]
Total assets acquired 12,184
Operating leases liabilities (650)
Other liabilities (338)
Total liabilities assumed (988)
Net assets acquired $ 11,196
[1] The estimated fair value of the finished goods inventory was deriving from its cost value, as of the valuation date, with the addition of the gross profit of Acroname, and after deducting the direct selling expenses with relation to the inventory, and the marketing profit.
[2] The acquired company is deemed to have an underlying technology of a value, through its continued use or re-use in many products or many generations of a singular product (a product family). The fair value of Core Technology was estimated by applying the income approach, specifically the Multi Period Excess Earnings method. Core Technology is amortized over a period of 5.6 years. The discount rate for Acroname’s technology was estimated at 25.3% reflecting the WACC.
[3] The fair value of the Customer relationships was estimated by applying the income approach, specifically the distributor method. The Customer relationships are amortized over a period of 5.6 years. The discount rate for Acroname’s Customer relationships was estimated at 25.3% reflecting the WACC.
[4] Goodwill is primarily related to the workforce, expected synergies such as potential cost savings in operations as a result of the business combination as well as potential future development of the mutual development projects. The goodwill is deductible for tax purposes. All of the $1,847 thousand of goodwill was assigned to Audio Video segment.
v3.24.3
Business Combination (Details) - Schedule of Unaudited Pro-Forma - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule of Unaudited Pro-Forma [Abstract]        
Revenues $ 16,038 $ 15,471 $ 44,038 $ 66,615
Net loss $ (10,260) $ (12,611) $ (28,957) $ (23,966)
v3.24.3
Inventories (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Inventories [Abstract]        
Inventories write-downs $ 104 $ 222 $ 404 $ 619
v3.24.3
Inventories (Details) - Schedule of Inventories - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Schedule of Inventories [Abstract]    
Work in process $ 6,486 $ 6,176
Finished goods 5,251 7,660
Total $ 11,737 $ 13,836
v3.24.3
Leases (Details)
 1 Months Ended
Apr. 30, 2024
m²
Leases [Line Items]  
Option to extend lease period, description The amendment extends the lease term through February 28, 2029. This amendment also provides the Company with an option to extend the lease period by additional two years until February 28, 2031.
Hod Hasharon, Israel [Member]  
Leases [Line Items]  
Office space 5,500
v3.24.3
Intangible Assets (Details) - Schedule of Identifiable Intangible Assets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Schedule of Identifiable Intangible Assets [Line Items]    
Gross carrying amount as of the business combination date $ 5,250  
Accumulated amortization for the period 313  
Net carrying amount as of September 30, 2024 $ 4,937
Core technology [Member]    
Schedule of Identifiable Intangible Assets [Line Items]    
Useful Life (in Years) 5 years 6 months 29 days  
Gross carrying amount as of the business combination date $ 4,653  
Accumulated amortization for the period 277  
Net carrying amount as of September 30, 2024 $ 4,376  
Customer relationships [Member]    
Schedule of Identifiable Intangible Assets [Line Items]    
Useful Life (in Years) 5 years 6 months 29 days  
Gross carrying amount as of the business combination date $ 597  
Accumulated amortization for the period 36  
Net carrying amount as of September 30, 2024 $ 561  
v3.24.3
Intangible Assets (Details) - Schedule of Amortization of Intangible Assets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Schedule of Amortization of Intangible Assets [Abstract]    
Remainder of 2024 $ 235  
2025 941  
2026 941  
2027 941  
2028 and thenafter 1,879  
Total $ 4,937
v3.24.3
Commitments and Contingent Liabilities (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Commitments and Contingent Liabilities [Abstract]    
Open purchase orders $ 6,132 $ 4,951
Non-paid purchase obligation 3,130 $ 5,513
Cost claim letter $ 2,346  
v3.24.3
Other Current Liabilities (Details) - Schedule of Other Current Liabilities - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Schedule of Other Current Liabilities [Abstract]    
Accrued vacation $ 3,162 $ 2,820
Taxes payable 8 36
Estimated accrual for a certain batch production incident 2,346
Accrued expenses and other 1,834 2,102
Other current liabilities $ 7,350 $ 4,958
v3.24.3
Forfeiture Shares (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Sep. 29, 2021
Forfeiture Shares [Line Items]    
Ordinary Shares were forfeited 646,875  
Forfeiture Shares [Member]    
Forfeiture Shares [Line Items]    
Fair value of forfeiture shares (in Dollars) $ 1  
PTK Sponsor [Member]    
Forfeiture Shares [Line Items]    
Ordinary shares   1,006,250
v3.24.3
Forfeiture Shares (Details) - Schedule of Fair Value of Forfeited Shares
Sep. 30, 2024
Dec. 31, 2023
Stock price [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 2.2 2.45
Expected term (years) [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 1  
Expected term (years) [Member] | Minimum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions   0.75
Expected term (years) [Member] | Maximum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions   1.75
Expected volatility [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 55.2  
Expected volatility [Member] | Minimum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions   30.95
Expected volatility [Member] | Maximum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions   60.31
Risk-free interest rate [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 3.98  
Risk-free interest rate [Member] | Minimum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions   4.37
Risk-free interest rate [Member] | Maximum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions   5.03
v3.24.3
Forfeiture Shares (Details) - Schedule of Changes in Fair Value of Forfeited Shares - Level 3 [Member] - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Schedule of Changes in Fair Value of Forfeited Shares [Line Items]    
Balance at beginning of period $ 38 $ 1,751
Changes in fair value (38) (1,713)
Balance at end of the period [1] $ 38
[1] Less than $1 thousand
v3.24.3
Earnout Liability (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Earnout Liability (Details) [Line Items]  
Earn out payments (in Dollars) $ 7.2
Earn out payments on development (in Dollars) $ 1.5
Discount Rate [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 21.4
Discount Rate [Member] | Minimum [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 20.1
Discount Rate [Member] | Maximum [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 20.3
Expected Term [Member] | Minimum [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 1.25
Expected Term [Member] | Minimum [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 1.59
Expected Term [Member] | Maximum [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 1.75
Expected Term [Member] | Maximum [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 2.08
Expected Volatility [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 55.71
Risk-free Interest Rate [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 3.9
Risk-free Interest Rate [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 5.04
v3.24.3
Earnout Liability (Details) - Schedule of Fair Value of the Earnout Liability
Sep. 30, 2024
Discount Rate [Member] | Minimum [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 20.1
Discount Rate [Member] | Maximum [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 20.3
Expected Term [Member] | Minimum [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 1.25
Expected Term [Member] | Maximum [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 1.75
Expected Volatility [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 51.09
Risk-Free Interest Rate [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 3.9
v3.24.3
Earnout Liability (Details) - Schedule of Fair Value Measurement is Estimated Utilizing Level 3 Inputs - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Schedule of Fair Value Measurement is Estimated Utilizing Level 3 Inputs [Line Items]    
Fair value at the beginning of the year
Initial recognition of earnout liability (2,036)
Change in fair value of earnout liability (292)
Fair value at the end of the year $ (2,328)
v3.24.3
Stock-Based Compensation (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Stock-Based Compensation [Line Items]      
Options granted 479,505    
Fair value $ 2.36    
Options exercised $ 1,939 $ 8,905  
Related Parties [Member]      
Stock-Based Compensation [Line Items]      
Options granted 479,505    
Share-Based Payment Arrangement, Option [Member]      
Stock-Based Compensation [Line Items]      
Unrecognized compensation costs $ 1,357    
Recognized over a weighted-average period 1 year 2 months 1 day    
Restricted Stock Units (RSUs) [Member]      
Stock-Based Compensation [Line Items]      
Recognized over a weighted-average period 2 years 6 months    
Options granted 9,975,000    
Nonvested award, excluding option, cost not yet recognized, amount $ 24,838    
Share-based compensation arrangement 6,235,178    
Restricted Stock Units (RSUs) [Member] | Related Parties [Member]      
Stock-Based Compensation [Line Items]      
Share-based compensation arrangement 871,061    
Valens Semiconductor Ltd Two Thousand Twenty One Share Incentive Plan [Member]      
Stock-Based Compensation [Line Items]      
Ordinary shares, reserved for issuance 35,874,244   30,666,212
Merger And Acquisition Transaction [Member] | Share-Based Payment Arrangement, Option [Member]      
Stock-Based Compensation [Line Items]      
Number of outstanding options unvested 496,179    
Unrecognized compensation costs $ 615    
Recognized over a weighted-average period 1 year 7 months 2 days    
v3.24.3
Stock-Based Compensation (Details) - Schedule of Share Option Plan - $ / shares
 9 Months Ended
Sep. 30, 2024
Schedule of Share Option Plan [Abstract]  
Number of Options outstanding, Beginning balance 11,326,943
Weighted- Average Exercise price, Beginning balance $ 0.97
Number of Options, Granted 479,505
Weighted- Average Exercise price, Granted $ 2.36
Number of Options, Exercised (992,432)
Weighted- Average Exercise price, Exercised $ 0.69
Number of Options, Forfeited (14,451)
Weighted- Average Exercise price, Forfeited $ 0.8
Number of Options outstanding, Ending balance 10,799,565
Weighted- Average Exercise price, Ending balance $ 1.06
Number of Options, exercisable 10,093,859
Weighted- Average Exercise price, exercisable $ 0.97
v3.24.3
Stock-Based Compensation (Details) - Schedule of Information about Stock Options Outstanding
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
$ / shares
shares
Range of Exercise Prices One [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Number outstanding (in Shares) | shares 9,873,168
Weighted average remaining contractual term 4 years 1 month 24 days
Weighted average exercise price $ 0.8
Aggregate intrinsic value (in Dollars) | $ $ 13,830
Number Exercisable (in Shares) | shares 9,622,746
Weighted average remaining contractual term 4 years 1 month 6 days
Weighted average exercise price $ 0.8
Aggregate intrinsic value (in Dollars) | $ $ 13,494
Range of Exercise Prices Two [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit $ 1.87
Number outstanding (in Shares) | shares 3,313
Weighted average remaining contractual term 6 years 3 months 10 days
Weighted average exercise price $ 1.87
Aggregate intrinsic value (in Dollars) | $ $ 1
Number Exercisable (in Shares) | shares 2,898
Weighted average remaining contractual term 6 years 3 months 10 days
Weighted average exercise price $ 1.87
Aggregate intrinsic value (in Dollars) | $ $ 1
Range of Exercise Prices Three [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Number outstanding (in Shares) | shares 72,273
Weighted average remaining contractual term 5 years 5 months 12 days
Weighted average exercise price $ 2.12
Aggregate intrinsic value (in Dollars) | $ $ 6
Number Exercisable (in Shares) | shares 16,563
Weighted average remaining contractual term 3 months
Weighted average exercise price $ 2.1
Aggregate intrinsic value (in Dollars) | $ $ 2
Range of Exercise Prices Four [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Number outstanding (in Shares) | shares 425,269
Weighted average remaining contractual term 6 years 3 months 14 days
Weighted average exercise price $ 2.39
Aggregate intrinsic value (in Dollars) | $
Number Exercisable (in Shares) | shares 156,889
Weighted average remaining contractual term 6 years 3 months 14 days
Weighted average exercise price $ 2.39
Range of Exercise Prices Five [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit $ 4.99
Number outstanding (in Shares) | shares 196,625
Weighted average remaining contractual term 5 years 3 months 14 days
Weighted average exercise price $ 4.99
Aggregate intrinsic value (in Dollars) | $
Number Exercisable (in Shares) | shares 127,096
Weighted average remaining contractual term 5 years 3 months 14 days
Weighted average exercise price $ 4.99
Aggregate intrinsic value (in Dollars) | $
Range of Exercise Prices Six [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit $ 5.36
Number outstanding (in Shares) | shares 140,000
Weighted average remaining contractual term 4 years 9 months
Weighted average exercise price $ 5.36
Aggregate intrinsic value (in Dollars) | $
Number Exercisable (in Shares) | shares 78,750
Weighted average remaining contractual term 4 years 9 months
Weighted average exercise price $ 5.36
Aggregate intrinsic value (in Dollars) | $
Range of Exercise Prices Seven [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit $ 7.58
Number outstanding (in Shares) | shares 85,380
Weighted average remaining contractual term 4 years 3 months 14 days
Weighted average exercise price $ 7.58
Aggregate intrinsic value (in Dollars) | $
Number Exercisable (in Shares) | shares 85,380
Weighted average remaining contractual term 4 years 3 months 14 days
Weighted average exercise price $ 7.58
Aggregate intrinsic value (in Dollars) | $
Range of Exercise Prices Eight [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit $ 9.07
Number outstanding (in Shares) | shares 3,537
Weighted average remaining contractual term 4 years 2 months 15 days
Weighted average exercise price $ 9.07
Aggregate intrinsic value (in Dollars) | $
Number Exercisable (in Shares) | shares 3,537
Weighted average remaining contractual term 4 years 2 months 15 days
Weighted average exercise price $ 9.07
Aggregate intrinsic value (in Dollars) | $
Minimum [Member] | Range of Exercise Prices One [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Lower Range Limit $ 0.15
Minimum [Member] | Range of Exercise Prices Three [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Lower Range Limit 2.1
Minimum [Member] | Range of Exercise Prices Four [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Lower Range Limit 2.39
Maximum [Member] | Range of Exercise Prices One [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit 0.86
Maximum [Member] | Range of Exercise Prices Three [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit 2.13
Maximum [Member] | Range of Exercise Prices Four [Member]  
Schedule of Information about Stock Options Outstanding [Line Items]  
Upper Range Limit $ 2.4
v3.24.3
Stock-Based Compensation (Details) - Schedule of Black-Scholes Option-Pricing Model Assumptions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Schedule of Black-Scholes Option-Pricing Model Assumptions [Abstract]    
Expected term minimum 4 years 3 years
Expected term maximum 5 years 5 years
Expected volatility minimum 57.53% 48.35%
Expected volatility maximum 58.56% 63.84%
Expected dividend rate 0.00% 0.00%
Risk-free rate minimum 3.55% 3.62%
Risk-free rate maximum 3.92% 4.21%
v3.24.3
Stock-Based Compensation (Details) - Schedule of Stock Options Expenses - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options $ 637 $ 1,308 $ 2,219 $ 3,954
Cost of Revenue [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options 44 44 132 140
Research and Development [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options 210 273 651 904
Sales and Marketing [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options 194 277 684 847
General and Administrative [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options $ 189 $ 714 $ 752 $ 2,063
v3.24.3
Stock-Based Compensation (Details) - Schedule of Company’s RSU’s - Restricted Stock Units [Member]
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Schedule of Company’s RSU’s [Line Items]  
Number of RSUs, Beginning Balance | shares 5,442,313
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares $ 5.26
Number of RSUs, Granted | shares 6,235,178
Weighted-Average Grant Date Fair Value, Granted | $ / shares $ 2.17
Number of RSUs, Vested | shares (2,141,866)
Weighted-Average Grant Date Fair Value, Vested | $ / shares $ 4.99
Number of RSUs, Forfeited | shares (469,199)
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares $ 3.48
Number of RSUs, Ending Balance | shares 9,066,426
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares $ 3.26
v3.24.3
Stock-Based Compensation (Details) - Schedule of Classification of RSU's Expenses - Restricted Stock Units (RSUs) [Member] - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule of Classification of RSU's Expenses [Line Items]        
Total stock-based compensation-RSUs $ 3,123 $ 2,400 $ 9,040 $ 7,563
Cost of Revenue [Member]        
Schedule of Classification of RSU's Expenses [Line Items]        
Total stock-based compensation-RSUs 194 154 580 442
Research and Development [Member]        
Schedule of Classification of RSU's Expenses [Line Items]        
Total stock-based compensation-RSUs 1,542 1,144 4,499 3,924
Sales and Marketing [Member]        
Schedule of Classification of RSU's Expenses [Line Items]        
Total stock-based compensation-RSUs 779 609 2,268 1,806
General and Administrative [Member]        
Schedule of Classification of RSU's Expenses [Line Items]        
Total stock-based compensation-RSUs $ 608 $ 493 $ 1,693 $ 1,391
v3.24.3
Net Loss Per Ordinary Share (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Numerator:        
Net loss $ (10,355) $ (12,492) $ (29,266) $ (22,451)
Denominator:        
Weighted average common shares and vested RSUs – basic and diluted 106,098,703 102,216,654 105,075,212 101,659,653
Dilutive Weighted average common shares 106,098,703 102,216,654 105,075,212 101,659,653
Basic net loss per common share $ (0.1) $ (0.12) $ (0.28) $ (0.22)
Dilutive net loss per common share $ (0.1) $ (0.12) $ (0.28) $ (0.22)
v3.24.3
Net Loss Per Ordinary Share (Details) - Schedule of Weighted-Average Shares of Securities - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Options [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 10,806,286 11,955,067 11,063,254 12,479,143
Restricted Stock Units [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 9,394,111 6,056,775 7,254,370 5,920,117
Private Warrants [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 3,330,000 3,330,000 3,330,000 3,330,000
Public Warrants [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 5,750,000 5,750,000 5,750,000 5,750,000
Forfeiture Shares [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 359,375 1,006,250 790,625 1,006,250
v3.24.3
Financial Income, Net (Details) - Schedule of Financial Income, Net - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule of Financial Income, Net [Abstract]        
Foreign currency exchange differences $ 299 $ (1,379) $ (972) $ (3,652)
Interest income on short-term deposits 1,597 1,802 4,658 4,892
Other (11) (55) (27) (80)
Total financial income, net $ 1,885 $ 368 $ 3,659 $ 1,160
v3.24.3
Segment and Revenue by Geography and By Major Customer (Details)
 9 Months Ended
Sep. 30, 2024
Segment and Revenue by Geography and by Major Customer [Abstract]  
Reportable segments 2
v3.24.3
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Evaluating Financial Performance and Allocating Resources - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule of Evaluating Financial Performance and Allocating Resources [Line Items]        
Revenues $ 16,038 $ 14,166 $ 41,194 $ 62,221
Gross profit 9,045 8,338 24,204 39,065
Research and development expenses (10,309) (13,419) (30,415) (39,540)
Sales and marketing expenses (4,880) (4,015) (13,636) (13,330)
General and administrative expenses (5,825) (3,843) (12,793) (11,376)
Change in earnout liability (264) (292)
Segment operating profit (loss) (12,233) (12,939) (32,932) (25,181)
Change in fair value of Forfeiture Shares 3 89 38 1,618
Financial income (expenses), net 1,885 368 3,659 1,160
Loss before taxes on income (10,345) (12,482) (29,235) (22,403)
Stock-based compensation 3,760 3,708 11,259 11,517
Consolidated [Member]        
Schedule of Evaluating Financial Performance and Allocating Resources [Line Items]        
Revenues 16,038 14,166 41,194 62,221
Gross profit 9,045 8,338 24,204 39,065
Research and development expenses (10,309) (13,419) (30,415) (39,540)
Sales and marketing expenses (4,880) (4,015) (13,636) (13,330)
General and administrative expenses (5,825) (3,843) (12,793) (11,376)
Change in earnout liability (264)   (292)  
Segment operating profit (loss) (12,233) (12,939) (32,932) (25,181)
Change in fair value of Forfeiture Shares 3 89 38 1,618
Financial income (expenses), net 1,885 368 3,659 1,160
Loss before taxes on income (10,345) (12,482) (29,235) (22,403)
Depreciation and Amortization expenses 823 400 1,758 1,193
Stock-based compensation 3,760 3,708 11,259 11,517
Audio-Video [Member]        
Schedule of Evaluating Financial Performance and Allocating Resources [Line Items]        
Revenues 9,371 9,731 24,618 41,560
Gross profit 6,592 7,380 18,203 32,114
Research and development expenses (5,569) (9,050) (17,348) (20,144)
Sales and marketing expenses (2,470) (1,654) (6,410) (5,663)
General and administrative expenses (2,211) (1,968) (5,816) (5,724)
Change in earnout liability (264)   (292)  
Segment operating profit (loss) (3,922) (5,292) (11,663) 583
Depreciation and Amortization expenses 559 179 1,067 531
Stock-based compensation 1,721 1,574 5,145 4,861
Automotive [Member]        
Schedule of Evaluating Financial Performance and Allocating Resources [Line Items]        
Revenues 6,667 4,435 16,576 20,661
Gross profit 2,453 958 6,001 6,951
Research and development expenses (4,740) (4,369) (13,067) (19,396)
Sales and marketing expenses (2,410) (2,361) (7,226) (7,667)
General and administrative expenses (3,614) (1,875) (6,977) (5,652)
Change in earnout liability    
Segment operating profit (loss) (8,311) (7,647) (21,269) (25,764)
Depreciation and Amortization expenses 264 221 691 662
Stock-based compensation $ 2,039 $ 2,134 $ 6,114 $ 6,656
v3.24.3
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Revenue by Geography, Based on the Customers - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues $ 16,038 $ 14,166 $ 41,194 $ 62,221
Israel [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 151 592 582 1,858
China [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 2,123 1,797 5,630 6,552
Hong Kong        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 2,304 1,281 3,878 5,415
Hungary [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 3,849 3,378 9,978 16,391
United States [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 2,207 983 6,669 4,424
Portugal [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 2,448 413 5,547 480
Germany [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 584 1,277 2,011 6,914
Mexico [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 173 1,554 1,358 5,863
Other [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues $ 2,199 $ 2,891 $ 5,541 $ 14,324
v3.24.3
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Supplemental Data - Major Customers
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Customer Concentration Risk [Member] | Customer A [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     23.00%   11.00%
Customer Concentration Risk [Member] | Customer A [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 3.00% 17.00% 6.00% 12.00%  
Customer Concentration Risk [Member] | Customer B [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     14.00%   4.00%
Customer Concentration Risk [Member] | Customer C [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     12.00%   3.00%
Customer Concentration Risk [Member] | Customer C [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 17.00% 3.00% 13.00% 1.00%  
Customer Concentration Risk [Member] | Customer D [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     9.00%   19.00%
Customer Concentration Risk [Member] | Customer D [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 23.00% 13.00% 16.00% 17.00%  
Customer Concentration Risk [Member] | Customer F [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     5.00%   10.00%
Customer Concentration Risk [Member] | Customer F [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 10.00% 8.00% 8.00% 7.00%  
Customer Concentration Risk [Member] | Customer G [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 3.00% 10.00% 7.00% 7.00%  
Credit Concentration Risk [Member] | Customer E [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     6.00%   11.00%
v3.24.3
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Long-Lived Assets by Geography - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets $ 9,349 $ 5,156
Domestic (Israel) [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets 8,046 4,419
China [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets 227 176
USA [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets 696 139
Other [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets $ 380 $ 422
v3.24.3
Related Party Transactions (Details)
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Related Party Transactions [Line Items]  
Granted stock options 479,505
Weighted average exercise price (in Dollars per share) | $ / shares $ 2.36
Restricted Stock Units (RSUs) [Member]  
Related Party Transactions [Line Items]  
Granted stock options 9,975,000
Recognized over a vesting period 1-4-years vesting period
Stock Options [Member]  
Related Party Transactions [Line Items]  
Granted stock options 539,000
Recognized over a vesting period 1-4-year vesting period
Executive Officers and Board Members [Member]  
Related Party Transactions [Line Items]  
Granted stock options 479,505
Weighted average exercise price (in Dollars per share) | $ / shares $ 2.36
Executive Officers and Board Members [Member] | Restricted Stock Units (RSUs) [Member]  
Related Party Transactions [Line Items]  
Granted stock options 871,061
Valens Semiconductor (NYSE:VLN)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024 Valens Semiconductor 차트를 더 보려면 여기를 클릭.
Valens Semiconductor (NYSE:VLN)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024 Valens Semiconductor 차트를 더 보려면 여기를 클릭.