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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended October 3, 2021

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

 

Enovix Corporation

(Exact Name of Registrant as Specified in Charter)

(Successor to RODGERS SILICON VALLEY ACQUISITION CORP.)

 

Delaware

 

001-39753

 

85-3174357

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

3501 W Warren Avenue

Fremont, California 94538

(Address of Principal Executive Offices) (Zip Code)

 

(510) 695-2350

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 



Trading



 

Title of each class

 

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.0001 per share



ENVX



The Nasdaq Stock Market LLC

Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share



ENVXW



The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒¨ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

 

Smaller reporting company

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ¨☒

As of November 9, 2021, 145,245,628 shares of common stock, par value $0.0001 per share, were issued and outstanding.

 


 

Table of Contents

 

 

 

Page

PART I.

FINANCIAL INFORMATION

 

Item 1.

Financial Statements (unaudited)

1

 

Condensed Consolidated Balance Sheets as of October 3, 2021 and December 31, 2020

1

 

Condensed Consolidated Statements of Operations for the quarter ended and 39-week period ended October 3, 2021 and three and nine months ended September 30, 2020

2

 

Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders’ (Deficit) Equity for the quarter ended and 39-week period ended October 3, 2021 and three and nine months ended September 30, 2020

3

 

Condensed Consolidated Statements of Cash Flows for the 39-week period ended October 3, 2021 and nine months ended September 30, 2020

5

 

Notes to Condensed Consolidated Financial Statements

7

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosure about Market Risks

29

Item 4.

Controls and Procedures

29

PART II.

OTHER INFORMATION

 

Item 1.

Legal Proceedings

30

Item 1A.

Risk Factors

31

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities

50

Item 3

Defaults Upon Senior Securities

50

Item 4

Mine Safety Disclosures

50

Item 5

Other Information

50

Item 6.

Exhibits

51

 

Signatures

53

 

 


 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

ENOVIX CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

(Unaudited)

 

 

 

October 3,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

338,746

 

 

$

29,143

 

Deferred contract costs

 

 

4,371

 

 

 

2,955

 

Prepaid expenses and other current assets

 

 

3,771

 

 

 

946

 

Total current assets

 

 

346,888

 

 

 

33,044

 

Property and equipment, net

 

 

61,596

 

 

 

31,290

 

Operating lease, right-of-use assets

 

 

6,796

 

 

 

 

Deferred contract costs, non-current

 

 

 

 

495

 

Other assets, non-current

 

 

141

 

 

 

135

 

Total assets

 

$

415,421

 

 

$

64,964

 

Liabilities, Convertible Preferred Stock and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,713

 

 

$

2,083

 

Accrued expenses

 

 

4,520

 

 

 

1,999

 

Accrued compensation

 

 

3,107

 

 

 

1,268

 

Deferred revenue

 

 

5,495

 

 

 

5,410

 

Other liabilities

 

 

660

 

 

 

108

 

Total current liabilities

 

 

15,495

 

 

 

10,868

 

Deferred rent, non-current

 

 

 

 

1,567

 

Warrant liability

 

 

64,440

 

 

 

15,995

 

Operating lease liabilities, non-current

 

 

9,263

 

 

 

Deferred revenue, non-current

 

 

2,290

 

 

 

85

 

Other liabilities, non-current

 

 

227

 

 

 

233

 

Total liabilities

 

 

91,715

 

 

 

28,748

 

Commitments and Contingencies (Note 8)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 145,185,904 and 100,016,559 as of October 3, 2021 and December 31, 2020, respectively

 

 

14

 

 

 

10

 

Preferred stock, $0.0001 par value; authorized shares of 10,000,000 and 0 as of October 3, 2021 and December 31, 2020; none issued and outstanding shares as of October 3, 2021 and December 31, 2020, respectively

 

 

 

 

 

 

Additional paid-in-capital

 

 

572,276

 

 

 

243,484

 

Accumulated deficit

 

 

(248,584

)

 

 

(207,278

)

Total stockholders’ equity

 

 

323,706

 

 

 

36,216

 

Total liabilities, convertible preferred stock and stockholders’ equity

 

$

415,421

 

 

$

64,964

 

 

See accompanying notes to these condensed consolidated financial statements.

1


 

ENOVIX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

Quarter Ended October 3, 2021

 

 

Three Months Ended
September 30, 2020

 

 

39-Week Period Ended October 3, 2021

 

 

Nine Months Ended September 30, 2020

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

$

104

 

 

$

1,153

 

 

$

1,847

 

 

$

2,382

 

Research and development

 

 

10,301

 

 

 

3,807

 

 

 

25,413

 

 

 

9,442

 

Selling, general and administrative

 

 

8,791

 

 

 

1,486

 

 

 

17,500

 

 

 

3,766

 

Total operating expenses

 

 

19,196

 

 

 

6,446

 

 

 

44,760

 

 

 

15,590

 

Loss from operations

 

 

(19,196

)

 

 

(6,446

)

 

 

(44,760

)

 

 

(15,590

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of convertible preferred stock warrants and common stock warrants

 

 

8,460

 

 

 

(7,031

)

 

 

3,679

 

 

 

(6,756

)

Issuance of convertible preferred stock warrants

 

 

 

 

 

 

 

 

 

 

 

(1,476

)

Change in fair value of convertible promissory notes

 

 

 

 

 

 

 

 

 

 

 

(2,422

)

Interest expense, net

 

 

(52

)

 

 

 

 

 

(187

)

 

 

(107

)

Other (expense) income, net

 

 

(50

)

 

 

1

 

 

 

(38

)

 

 

43

 

Total other income (expense), net

 

 

8,358

 

 

 

(7,030

)

 

 

3,454

 

 

 

(10,718

)

Net loss

 

$

(10,838

)

 

$

(13,476

)

 

$

(41,306

)

 

$

(26,308

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic

 

$

(0.08

)

 

$

(0.16

)

 

$

(0.38

)

 

$

(0.35

)

Weighted average number of common shares outstanding, basic

 

 

133,492,216

 

 

 

85,637,835

 

 

 

109,317,614

 

 

 

76,167,628

 

Net loss per share, diluted

 

$

(0.14

)

 

$

(0.16

)

 

$

(0.45

)

 

$

(0.35

)

Weighted average number of common shares outstanding, diluted

 

 

135,052,128

 

 

 

85,637,835

 

 

 

109,854,540

 

 

 

76,167,628

 

 

See accompanying notes to these condensed consolidated financial statements.

2


 

ENOVIX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY

(In thousands, except share amounts)

(Unaudited)

 

 

 

Convertible Preferred
Stock

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders' Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balance as of December 31, 2020 (as previously reported)

 

 

324,370,424

 

 

$

202,056

 

 

 

 

93,986,381

 

 

$

65

 

 

$

41,373

 

 

$

(207,278

)

 

$

(165,840

)

Retroactive application of recapitalization

 

 

(324,370,424

)

 

 

(202,056

)

 

 

 

6,030,178

 

 

 

(55

)

 

 

202,111

 

 

 

 

 

 

202,056

 

Balance as of December 31, 2020, effect of reverse acquisition (Note 3)

 

 

 

 

 

 

 

 

 

100,016,559

 

 

 

10

 

 

 

243,484

 

 

 

(207,278

)

 

 

36,216

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

 

2,112,373

 

 

 

 

 

 

30

 

 

 

 

 

 

30

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Repurchase of unvested restricted common stock

 

 

 

 

 

 

 

 

 

(87,768

)

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of Series D convertible preferred stock upon exercise of warrants

 

 

 

 

 

 

 

 

 

2,020,034

 

 

 

 

 

 

20,877

 

 

 

 

 

 

20,877

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,555

 

 

 

 

 

 

1,555

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,165

)

 

 

(16,165

)

Balance as of March 31, 2021

 

 

 

 

 

 

 

 

 

104,061,198

 

 

 

10

 

 

 

265,970

 

 

 

(223,443

)

 

 

42,537

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

 

9,442

 

 

 

 

 

 

4

 

 

 

 

 

 

4

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Repurchase of unvested restricted common stock

 

 

 

 

 

 

 

 

 

(75,111

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,353

 

 

 

 

 

 

2,353

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,303

)

 

 

(14,303

)

Balance as of June 30, 2021

 

 

 

 

 

-

 

 

 

 

103,995,529

 

 

 

10

 

 

 

268,356

 

 

 

(237,746

)

 

 

30,620

 

Business combination, net of redemptions and equity issuance costs and PIPE financing, net

 

 

 

 

 

 

 

 

 

41,249,985

 

 

 

4

 

 

 

300,741

 

 

 

 

 

 

300,745

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Repurchase of unvested restricted common stock

 

 

 

 

 

 

 

 

 

(59,610

)

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,150

 

 

 

 

 

 

3,150

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,838

)

 

 

(10,838

)

Balance as of October 3, 2021

 

 

 

 

$

 

 

 

 

145,185,904

 

 

$

14

 

 

$

572,276

 

 

$

(248,584

)

 

$

323,706

 

 

See accompanying notes to these condensed consolidated financial statements.

 

 

3


 

ENOVIX CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY (Continued)

(In thousands, except share amounts)

(Unaudited)

 

 

 

Convertible Preferred
Stock

 

 

 

Common Stock

 

 

Additional
Paid-in

 

 

Accumulated

 

 

Total
Stockholders' Equity

 

 

 

Shares

 

 

Amount

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

(Deficit)

 

Balance as of December 31, 2019 (as previously reported)

 

 

153,758,348

 

 

$

129,921

 

 

 

 

65,196,490

 

 

$

59

 

 

$

40,626

 

 

$

(167,628

)

 

$

(126,943

)

Retroactive application of recapitalization

 

 

(153,758,348

)

 

 

(129,921

)

 

 

 

(1,992,064

)

 

 

(53

)

 

 

129,974

 

 

 

 

 

 

129,921

 

Balance as of December 31, 2019, effect of reverse acquisition (Note 3)

 

 

 

 

 

 

 

 

 

63,204,426

 

 

 

6

 

 

 

170,600

 

 

 

(167,628

)

 

 

2,978

 

Issuance of common stock upon exercise of stock options

 

 

 

 

 

 

 

 

 

5,260

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Issuance of Series P-2 convertible preferred stock

 

 

 

 

 

 

 

 

 

12,488,024

 

 

 

1

 

 

 

29,011

 

 

 

 

 

 

29,012

 

Conversion of promissory notes to Series P-2 convertible preferred stock

 

 

 

 

 

 

 

 

 

3,507,984

 

 

 

 

 

 

8,203

 

 

 

 

 

 

8,203

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58

 

 

 

 

 

 

58

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,682

)

 

 

(7,682

)

Balance as of March 31, 2020

 

 

 

 

 

 

 

 

 

79,205,694

 

 

 

7

 

 

 

207,878

 

 

 

(175,310

)

 

 

32,575

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

6

 

Issuance of Series P-2 convertible preferred stock

 

 

 

 

 

 

 

 

 

4,538,706

 

 

 

1

 

 

 

10,200

 

 

 

 

 

 

10,201

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

58

 

 

 

 

 

 

58

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,150

)

 

 

(5,150

)

Balance as of June 30, 2020

 

 

 

 

 

 

 

 

 

83,744,400

 

 

 

8

 

 

 

218,142

 

 

 

(180,460

)

 

 

37,690

 

Exercise of stock options

 

 

 

 

 

 

 

 

 

118,448

 

 

 

 

 

 

 

 

 

 

 

 

 

Vesting of early exercised stock options

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

4

 

Issuance of Series P-2 convertible preferred stock

 

 

 

 

 

 

 

 

 

8,300,550

 

 

 

1

 

 

 

19,061

 

 

 

 

 

 

19,062

 

Stock-based compensation