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 August 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 six months ended June 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: August 7, 2024

 

 

3

 

 

Exhibit 99.1

 

VALENS SEMICONDUCTOR LTD.

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

JUNE 30, 2024

 

 

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

AS OF JUNE 30, 2024

 

CONTENTS

 

  Page
   
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)- IN U.S. DOLLARS ($):  
   
Balance sheets F-2-F-3
Statements of operations F-4
Statements of changes in shareholder’s equity F-5
Statements of cash flows F-6
Notes to consolidated financial statements F-7-F-25

 

 

 

 

 

 

 

F-1

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited)

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

 

   June 30,
2024		   December 31,
2023		 
Assets        
         
CURRENT ASSETS:        
Cash and cash equivalents   24,706    17,261 
Short-term deposits   105,924    124,759 
Trade accounts receivable   10,021    14,642 
Prepaid expenses and other current assets   3,972    4,196 
Inventories   14,070    13,836 
TOTAL CURRENT ASSETS   158,693    174,694 
           
LONG-TERM ASSETS:          
Property and equipment, net   2,666    2,954 
Operating lease right-of-use assets   6,777    2,202 
Intangible assets   5,172    
-
 
Goodwill   1,847    
-
 
Other assets   633    708 
TOTAL LONG-TERM ASSETS   17,095    5,864 
TOTAL ASSETS   175,788    180,558 

 

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

 

F-2

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (continued)

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

 

    June 30,
2024		     December 31,
2023		  
Liabilities and Shareholders’ Equity            
             
CURRENT LIABILITIES:            
Trade accounts payable     3,532       4,950  
Accrued compensation     4,240       4,257  
Current maturities of operating leases liabilities     2,852       1,766  
Other current liabilities     5,720       4,958  
TOTAL CURRENT LIABILITIES     16,344       15,931  
                 
LONG-TERM LIABILITIES:                
Forfeiture Shares, no par value: 1,006,250 shares authorized, issued and outstanding as of June 30, 2024, and December 31, 2023     3       38  
Non-current operating leases liabilities     3,774       190  
Earnout liability     2,064      
-
  
Other long-term liabilities     75       95  
TOTAL LONG-TERM LIABILITIES     5,916       323  
TOTAL LIABILITIES     22,260       16,254  
                 
COMMITMENTS AND CONTINGENT LIABILITIES (note 7)    
 
      
 
  
                 
SHAREHOLDERS’ EQUITY:                
Ordinary shares, no par value: 700,000,000 shares authorized as of June 30, 2024, and December 31, 2023; 105,574,104, and 98,876,266 (excluding 1,006,250 ordinary shares subject to forfeiture) shares issued and outstanding as of June 30, 2024, and December 31, 2023, respectively     49       49  
Additional paid-in capital     349,726       341,591  
Accumulated deficit     (196,247 )     (177,336 )
TOTAL SHAREHOLDERS’ EQUITY     153,528       164,304  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY     175,788       180,558  

 

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

 

F-3

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (Unaudited)

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

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
                 
                 
REVENUES   25,156    48,055    13,597    24,175 
COST OF REVENUES   (9,997)   (17,328)   (5,253)   (9,241)
GROSS PROFIT   15,159    30,727    8,344    14,934 
                     
OPERATING EXPENSES:                    
Research and development expenses   (20,106)   (26,121)   (9,961)   (12,161)
Sales and marketing expenses   (8,756)   (9,315)   (4,368)   (4,255)
General and administrative expenses   (6,968)   (7,533)   (3,397)   (3,701)
Change in earnout liability   (28)   
-
    (28)   
-
 
TOTAL OPERATING EXPENSES   (35,858)   (42,969)   (17,754)   (20,117)
OPERATING LOSS   (20,699)   (12,242)   (9,410)   (5,183)
Change in fair value of Forfeiture Shares   35    1,529    10    22 
Financial income, net   1,774    792    540    601 
LOSS BEFORE INCOME TAXES   (18,890)   (9,921)   (8,860)   (4,560)
INCOME TAXES   (38)   (45)   (21)   (26)
LOSS AFTER INCOME TAXES   (18,928)   (9,966)   (8,881)   (4,586)
Equity in earnings of an investee   17    7    12    4 
NET LOSS   (18,911)   (9,959)   (8,869)   (4,582)
Basic and diluted net loss per ordinary share
   (0.18)   (0.10)   (0.08)   (0.05)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share
   104,563,467    101,381,153    105,079,508    101,685,915 

 

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

 

F-4

 

 

VALENS SEMICONDUCTOR LTD.

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

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

 

   Six months ended June 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   2,419,708    
-
    636    
-
    636 
Stock-based compensation   -    
-
    7,499    
-
    7,499 
Net loss for the period   -    
-
    
-
    (18,911)   (18,911)
Balance as of June 30, 2024   (*) 105,574,104    49    349,726    (196,247)   153,528 

 

   Six months ended June 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   2,966,800    
-
    986    
-
    986 
Stock-based compensation   -    
-
    7,809    
-
    7,809 
Net loss for the period   -    
-
    
-
    (9,959)   (9,959)
Balance as of June 30, 2023   (*) 101,843,066    49    333,862    (167,634)   166,277 

 

   Three months ended June 30, 2024 
   Ordinary shares   Additional
paid-		   Accumulated     
   Shares   Amount   in capital   deficit   Total 
                     
Balance as of April 1, 2024   (*) 104,376,565    49    345,481    (187,378)   158,152 
Exercise of options and vesting of RSUs   1,197,539    
-
    510    
-
    510 
Stock-based compensation   -    
-
    3,735    
-
    3,735 
Net loss for the period   -    
-
    
-
    (8,869)   (8,869)
Balance as of June 30, 2024   (*) 105,574,104    49    349,726    (196,247)   153,528 

 

   Three months ended June 30, 2023 
   Ordinary shares   Additional
paid-		   Accumulated     
   Shares   Amount   in capital   deficit   Total 
                     
Balance as of April 1, 2023   (*) 101,465,926    49    329,817    (163,052)   166,814 
Exercise of options and vesting of RSUs   377,140    
-
    58    
-
    58 
Stock-based compensation   -    
-
    3,987    
-
    3,987 
Net loss for the period   -    
-
    
-
    (4,582)   (4,582)
Balance as of June 30, 2023   (*) 101,843,066    49    333,862    (167,634)   166,277 

 

(*)Excluding 1,006,250 Forfeiture Shares

 

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

 

F-5

 

 

VALENS SEMICONDUCTOR LTD.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(U.S. dollars in thousands)

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:                
Net loss for the period   (18,911)   (9,959)   (8,869)   (4,582)
Adjustments to reconcile net loss to net cash used in operating activities:                    
Income and expense items not involving cash flows:                    
Depreciation and amortization   935    793    479    414 
Stock-based compensation   7,499    7,809    3,735    3,987 
Exchange rate differences   1,266    2,273    741    1,021 
Interest on short-term deposits   917    (389)   642    177 
Change in fair value of Forfeiture Shares   (35)   (1,529)   (10)   (22)
Change in earnout liability   28    
-
    28    
-
 
Reduction in the carrying amount of ROU assets   723    986    239    522 
Equity in earnings of investee, net of dividend received   17    7    12    4 
Changes in operating assets and liabilities, net of effects of
businesses acquired:		                    
Trade accounts receivable   4,915    (4,575)   180    (3,176)
Prepaid expenses and other current assets   308    403    101    1,042 
Inventories   2,401    4,799    1,054    4,549 
Other assets   66    34    (8)   (8)
Trade accounts payable   (1,835)   (6,948)   
-
    (1,475)
Accrued compensation   115    (1,008)   886    158 
Other current liabilities   618    (216)   773    (1,797)
Change in operating lease liabilities   (622)   (859)   (204)   (457)
Other long-term liabilities   (20)   68    (4)   1 
Net cash provided by (used in) operating activities   (1,615)   (8,311)   (225)   358 
                     
CASH FLOWS FROM INVESTING ACTIVITIES:                    
Investment in short-term deposits   (87,219)   (109,153)   (49,379)   (68,428)
Maturities of short-term deposits   104,038    118,954    47,059    74,810 
Purchase of property and equipment   (265)   (919)   (235)   (777)
Cash paid for business combination, net of cash acquired (note 3)   (7,800)   
-
    (7,800)   
-
 
Net cash provided by (used in) investing activities   8,754    8,882    (10,355)   5,605 
                     
CASH FLOWS FROM FINANCING ACTIVITIES:                    
Exercise of stock options   636    986    510    58 
Net cash provided by financing activities   636    986    510    58 
                     
Effect of exchange rate changes on cash and cash equivalents   (330)   (171)   (324)   (100)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   7,445    1,386    (10,394)   5,921 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD   17,261    20,024    35,100    15,489 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD   24,706    21,410    24,706    21,410 
                     
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION -                    
Cash paid for taxes   63    252    28    213 
                     
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                    
Trade accounts payable on account on property and equipment   279    160    279    35 
Fair value of earnout liability assumed in business combination   2,036    
-
    2,036    
-
 
Operating lease liabilities arising from obtaining operating right-of-use assets   4,833    436    4,802    152 

 

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

 

F-6

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM 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”.

 

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 terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on Israel’s civilian population and industrial centers along Israel’s border with the Gaza Strip and in the Central District of Israel. Following the attack, Israel’s security cabinet declared war against Hamas and a military campaign against the organization as Hamas has continued its rocket and terror attacks in parallel. In addition, Hezbollah has attacked military and civilian targets in northern Israel, to which Israel has responded and Iran launched a series of drone and missile strikes against Israel, to which Israel has responded as well. How long and how severe the current conflict in Gaza, Northern Israel 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 the Company’s operations and financial results have not been materially affected.

 

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.

 

F-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 six and three months ended June 30, 2024, shown in these financial statements 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, except for the following.

 

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.

 

F-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.

 

F-9

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM 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.

 

F-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. The purchase price is subject to a post-closing adjustment for net working capital. In addition, the Company shall be obligated to pay Acroname’s former shareholders earn out 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 June 30, 2024, are $445 thousand and $121 thousand, respectively (including amortization of tangible and intangible assets in the amount of $78 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.

 

F-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 relationship 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.

 

F-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 
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
                 
Revenues   28,445    51,144    14,791    25,658 
Net loss   (18,506)   (11,312)   (8,954)   (4,700)

 

NOTE 4 - INVENTORIES:

 

   June 30, 2024   December 31, 2023 
   U.S. dollars in thousands 
Work in process   8,414    6,176 
Finished goods   5,656    7,660 
    14,070    13,836 

 

Inventories write-downs amounted to $300 thousand and $397 thousand during the six months ended June 30, 2024, and 2023, respectively. Inventories write-downs amounted to $32 thousand and $273 thousand during the three months ended June 30, 2024, and 2023, respectively.

 

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 extend 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.

 

F-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 June 30,
2024		 
Core technology   5.58    4,653         69    4,584 
Customer relationships   5.58    597    9    588 
Total Intangible assets        5,250    78    5,172 

 

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

 

Remainder of 2024   470 
2025   941 
2026   941 
2027   941 
2028 and thenafter   1,879 
Total   5,172 

 

F-14

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (continued)

 

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 June 30, 2024, and December 31, 2023, the total value of open purchase orders for such manufacturing contractors was approximately $6,762 thousand and $4,951 thousand, respectively.

 

The Company has noncancelable purchase agreements for certain IP embedded in the Company products as well as certain agreements for the license of development tools used by the development team. As of June 30, 2024, and December 31, 2023, the value of non-paid amounts related to such agreements totaled to $3,849 thousand and $5,513 thousand, respectively.

 

b.Legal proceedings

 

As of June 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 products that suffer from a design and/or manufacturing defect. Preliminary internal assessments by the Company are currently being conducted. At this early stage, the Company is unable to estimate the volume of this alleged damage. As of June 30, 2024, the Company has not recorded a relevant provision in its books.

 

F-15

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (continued)

 

NOTE 8 - OTHER CURRENT LIABILITIES:

 

   June 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
         
Accrued vacation   3,269    2,820 
Accrued expenses and other   2,432    2,102 
Taxes payable   19    36 
    5,720    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.

 

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

 

   June 30,
2024		   December 31,
2023		 
Stock price   3.19    2.45 
Expected term (years)   0.25-1.25    0.75-1.75 
Expected volatility   44.79%-59.80%    30.95%-60.31% 
Risk-free interest rate   5.00%-5.48%    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:

 

   Six months ended
June 30,
2024		   Year ended
December 31,
2023		 
   U.S. dollars in thousands 
Balance at beginning of period   38    1,751 
Changes in fair value   (35)   (1,713)
Balance at end of the period   3    38 

 

F-16

 

 

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:

 

   June 30,
2024		 
Discount rate   21.3% 
Expected term (years)   1.50-2.00 
Expected volatility   56.72% 
Risk-free interest rate   4.90% 

 

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

 

   Six months ended
June 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   (28)   
-
 
Fair value at the end of the year   (2,064)   
-
 

 

F-17

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (continued)

 

NOTE 11 - STOCK-BASED COMPENSATION:

 

Stock Options

 

As of June 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.

 

425,077 out of the outstanding options that have not yet vested as of June 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 June 30, 2024, the unrecognized compensation costs related to those unvested stock options are $690 thousand, which are expected to be recognized over a weighted-average period of 1.79 years.

 

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

 

    Six months ended  
    June 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     423,795     $ 2.39  
Exercised during the period     (936,281 )   $ 0.68  
Forfeited during the period     (1,451 )   $ 0.86  
Options outstanding as of June 30, 2024     10,813,006     $ 1.06  
Options exercisable as of June 30, 2024     9,928,467     $ 0.96  

 

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

 

Outstanding as of June 30, 2024   Exercisable as of June 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    9,942,319    4.39    0.80    23,770    9,551,815    4.31    0.80    22,860 
 $1.87    3,313    6.53    1.87    4    2,691    6.53    1.87    4 
 $2.10    16,563    0.51    2.10    18    16,563    0.51    2.10    18 
 $2.39-$2.40    425,269    6.54    2.39    340    78,632    6.54    2.39    63 
 $4.99    196,625    5.55    4.99    
-
    120,144    5.55    4.99    
-
 
 $5.36    140,000    5.00    5.36    
-
    70,000    5.00    5.36    
-
 
 $7.58    85,380    4.54    7.58    
-
    85,380    4.54    7.58    
-
 
 $9.07    3,537    4.46    9.07    
-
    3,242    4.46    9.07    
-
 

 

F-18

 

 

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 Six months ended on June 30,
2024		   For the six months ended on June 30,
2023		 
Expected term   4-5    3-5 
Expected volatility   58.56%    48.35%-63.84% 
Expected dividend rate   0%    0% 
Risk-free rate   3.85%-3.92%    3.62%-4.21% 

 

During the six months period ended on June 30, 2024, 423,795 options were granted to related parties (please refer to Note 15 for further information).

 

As of June 30, 2024, the unrecognized compensation costs related to unvested stock options was $1,946 thousand, which are expected to be recognized over a weighted-average period of 1.15 years.

 

The weighted-average fair value of the options that were granted during the period ended June 30, 2024 was $2.39 at the grant date.

 

The total intrinsic value of options exercised during the period of six months ended June 30, 2024 and 2023 was $1,821 and $7,965 thousand, respectively.

 

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

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   88    96    44    46 
Research and development   441    631    218    309 
Sales and marketing   490    570    241    278 
General and administrative   563    1,350    187    671 
Total stock-based compensation   1,582    2,647    690    1,304 

 

 

F-19

 

 

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 June 30, 2024, as well as changes during the period of six months ended June 30, 2024:

 

   Number of RSUs   Weighted-Average Grant Date Fair Value 
Outstanding at the beginning of the year   5,442,313   $           5.26 
Granted during the period   5,970,121   $2.17 
Vested during the period   (1,483,427)  $5.28 
Forfeited during the period   (207,211)  $3.58 
Outstanding at the end of the period   9,721,796   $3.36 

 

As of June 30, 2024, the unrecognized compensation cost related to unvested RSUs totaled to approximately $27,957 thousand and is expected to be expensed over a weighted-average recognition period of approximately 2.7 years.

 

During the six months ended on June 30, 2024, 818,004 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:

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   386    288    199    151 
Research and development   2,957    2,779    1,512    1,462 
Sales and marketing   1,489    1,197    762    613 
General and administrative   1,085    898    572    457 
Total stock-based compensation-RSUs   5,917    5,162    3,045    2,683 

 

F-20

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (continued)

 

NOTE 12 - 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:

 

   Six months ended   Three months ended 
   June 30,
2024		   June 30,
2023		   June 30,
2024		   June 30,
2023		 
Basic net loss per ordinary share                
Numerator:                
Net loss   (18,911)   (9,959)   (8,869)   (4,582)
                     
Denominator:                    
Weighted average common shares and vested RSUs – basic and diluted
   104,563,467    101,381,153    105,079,508    101,685,915 
Basic and dilutive net loss per common share
   (0.18)   (0.10)   (0.08)   (0.05)

 

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 anti-dilutive:

 

   Six months ended   Three months ended 
   June 30,
2024		   June 30,
2023		   June 30,
2024		   June 30,
2023		 
Options   11,069,975    13,097,348    11,178,735    12,315,780 
Restricted Stock Units   7,582,055    5,050,085    9,434,974    6,486,973 
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   1,006,250    1,006,250    1,006,250    1,006,250 

 

 

NOTE 13 - FINANCIAL INCOME, NET:

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Foreign currency exchange differences   (1,271)   (2,273)   (745)   (1,021)
Interest income on short-term deposits   3,061    3,090    1,294    1,630 
Other   (16)   (25)   (9)   (8)
Total financial income, net   1,774    792    540    601 

 

F-21

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM 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.

 

   Six months ended on June 30, 2024 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   15,247    9,909    25,156 
Gross profit   11,624    3,535    15,159 
Research and development expenses   11,778    8,328    20,106 
Sales and marketing expenses   3,939    4,817    8,756 
General and administrative expenses   3,604    3,364    6,968 
Change in earnout liability   28    
-
    28 
Segment operating loss   (7,725)   (12,974)   (20,699)
Change in fair value of Forfeiture Shares             35 
Financial expenses, net             1,774 
Loss before taxes on income             (18,890)
                
Depreciation and Amortization expenses   507    428    935 
Stock-based compensation   3,424    4,075    7,499 

 

   Six months ended on June 30, 2023 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   31,828    16,227    48,055 
Gross profit   24,734    5,993    30,727 
Research and development expenses   11,094    15,027    26,121 
Sales and marketing expenses   4,009    5,306    9,315 
General and administrative expenses   3,756    3,777    7,533 
Segment operating profit (loss)   5,875    (18,117)   (12,242)
Change in fair value of Forfeiture Shares             1,529 
Financial expenses, net             792 
Loss before taxes on income             (9,921)
                
Depreciation expenses   352    441    793 
Stock-based compensation   3,287    4,522    7,809 

 

F-22

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (continued)

 

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

 

   Three months ended on June 30, 2024 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   8,070    5,527    13,597 
Gross profit   6,085    2,259    8,344 
Research and development expenses   5,921    4,040    9,961 
Sales and marketing expenses   2,066    2,302    4,368 
General and administrative expenses   1,765    1,632    3,397 
Change in earnout liability   28    
-
    28 
Segment operating (loss)   (3,695)   (5,715)   (9,410)
Change in fair value of Forfeiture Shares             10 
Financial expenses, net             540 
Loss before taxes on income             (8,860)
                
Depreciation and Amortization expenses   279    200    479 
Stock-based compensation   1,703    2,032    3,735 

 

   Three months ended on June 30, 2023 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   15,469    8,706    24,175 
Gross profit   11,644    3,290    14,934 
Research and development expenses   4822    7,339    12,161 
Sales and marketing expenses   1,892    2,363    4,255 
General and administrative expenses   1,857    1,844    3,701 
Segment operating profit (loss)   3,072    (8,255)   (5,183)
Change in fair value of Forfeiture Shares             22 
Financial expenses, net             601 
Loss before taxes on income             (4,560)
                
Depreciation expenses   173    241    414 
Stock-based compensation   1,678    2,309    3,987 

 

F-23

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM 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:

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Israel   431    1,266    178    543 
China   3,507    4,755    1,987    2,332 
United States   4,462    3,441    3,013    1,981 
Portugal   3,098    67    1,207    67 
Hungary   6,129    13,013    4,082    6,955 
Japan   2,036    4,605    837    2,248 
Germany   1,427    5,637    598    2,989 
Taiwan   483    4,992    209    1,748 
Other   3,583    10,279    1,486    5,312 
    25,156    48,055    13,597    24,175 

 

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:

 

   June 30,
2024		   December 31,
2023		 
Accounts Receivable  % of Account Receivable 
Customer A   28%   19%
Customer B   19%   3%
Customer C   15%   11%
Customer D   4%   11%
Customer E   6%   10%

 

   Six months ended June 30,   Three months ended June 30, 
   2024   2023   2024   2023 
Revenues  % of Revenues   % of Revenues 
Customer A   14%   19%   24%   21%
Customer B   12%   0%   8%   0%
Customer C   10%   11%   11%   11%
Customer D   10%   3%   9%   3%
Customer E   7%   7%   9%   6%
Customer F   10%   6%   5%   6%

 

F-24

 

 

VALENS SEMICONDUCTOR LTD.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited) (continued)

 

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

 

d.Long-lived assets by Geography:

 

   June 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
Domestic (Israel)   8,240    4,419 
China   142    176 
USA   784    139 
Other   277    422 
    9,443    5,156 

 

NOTE 15 - RELATED PARTY TRANSACTIONS

 

During the six months ended June 30, 2024, the Company granted 423,795 stock options, at a weighted average exercise price of $2.39 to several executive officers, and Board of Directors (“Board”) members of the Company.

 

In addition, during the six months ended June 30, 2024 the Company granted 818,004 RSUs to several executive officers and Board members of the Company.

 

No stock options and RSUs were granted in the three months ended June 30, 2024.

 

The fair value of the stock options that were granted during the six months ended June 30, 2024 is $489 thousand, which is expected to be recognized over a 1-4 years vesting period, and the fair value of the granted RSUs is $9,858 thousand, which is expected to be recognized over a 1-4-years vesting period.

 

 

 

 

 

 

 

 

F-25

 

 

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v3.24.2.u1
Document And Entity Information
 6 Months Ended
Jun. 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 Jun. 30, 2024
Document Fiscal Year Focus 2024
Document Fiscal Period Focus Q2
v3.24.2.u1
Condensed Consolidated Interim Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
CURRENT ASSETS:    
Cash and cash equivalents $ 24,706 $ 17,261
Short-term deposits 105,924 124,759
Trade accounts receivable 10,021 14,642
Prepaid expenses and other current assets 3,972 4,196
Inventories 14,070 13,836
TOTAL CURRENT ASSETS 158,693 174,694
LONG-TERM ASSETS:    
Property and equipment, net 2,666 2,954
Operating lease right-of-use assets 6,777 2,202
Intangible assets 5,172
Goodwill 1,847
Other assets 633 708
TOTAL LONG-TERM ASSETS 17,095 5,864
TOTAL ASSETS 175,788 180,558
CURRENT LIABILITIES:    
Trade accounts payable 3,532 4,950
Accrued compensation 4,240 4,257
Current maturities of operating leases liabilities 2,852 1,766
Other current liabilities 5,720 4,958
TOTAL CURRENT LIABILITIES 16,344 15,931
LONG-TERM LIABILITIES:    
Forfeiture Shares, no par value: 1,006,250 shares authorized, issued and outstanding as of June 30, 2024, and December 31, 2023 3 38
Non-current operating leases liabilities 3,774 190
Earnout liability 2,064
Other long-term liabilities 75 95
TOTAL LONG-TERM LIABILITIES 5,916 323
TOTAL LIABILITIES 22,260 16,254
COMMITMENTS AND CONTINGENT LIABILITIES (note 7)
SHAREHOLDERS’ EQUITY:    
Ordinary shares, no par value: 700,000,000 shares authorized as of June 30, 2024, and December 31, 2023; 105,574,104, and 98,876,266 (excluding 1,006,250 ordinary shares subject to forfeiture) shares issued and outstanding as of June 30, 2024, and December 31, 2023, respectively 49 49
Additional paid-in capital 349,726 341,591
Accumulated deficit (196,247) (177,336)
TOTAL SHAREHOLDERS’ EQUITY 153,528 164,304
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 175,788 $ 180,558
v3.24.2.u1
Condensed Consolidated Interim Balance Sheets (Unaudited) (Parentheticals) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Forfeiture shares, no par value (in Dollars per share)
Forfeiture shares, authorized 1,006,250 1,006,250
Forfeiture shares, issued 1,006,250 1,006,250
Forfeiture shares, outstanding 1,006,250 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 105,574,104 98,876,266
Ordinary shares, shares outstanding 105,574,104 98,876,266
v3.24.2.u1
Condensed Consolidated Interim Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
REVENUES $ 13,597 $ 24,175 $ 25,156 $ 48,055
COST OF REVENUES (5,253) (9,241) (9,997) (17,328)
GROSS PROFIT 8,344 14,934 15,159 30,727
OPERATING EXPENSES:        
Research and development expenses (9,961) (12,161) (20,106) (26,121)
Sales and marketing expenses (4,368) (4,255) (8,756) (9,315)
General and administrative expenses (3,397) (3,701) (6,968) (7,533)
Change in earnout liability (28) (28)
TOTAL OPERATING EXPENSES (17,754) (20,117) (35,858) (42,969)
OPERATING LOSS (9,410) (5,183) (20,699) (12,242)
Change in fair value of Forfeiture Shares 10 22 35 1,529
Financial income, net 540 601 1,774 792
LOSS BEFORE INCOME TAXES (8,860) (4,560) (18,890) (9,921)
INCOME TAXES (21) (26) (38) (45)
LOSS AFTER INCOME TAXES (8,881) (4,586) (18,928) (9,966)
Equity in earnings of an investee 12 4 17 7
NET LOSS $ (8,869) $ (4,582) $ (18,911) $ (9,959)
Basic net loss per ordinary share (in Dollars per share) $ (0.08) $ (0.05) $ (0.18) $ (0.1)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share (in Shares) 105,079,508 101,685,915 104,563,467 101,381,153
v3.24.2.u1
Condensed Consolidated Interim Statements of Operations (Unaudited) (Parentheticals) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Income Statement [Abstract]        
Diluted net loss per ordinary share $ (0.08) $ (0.05) $ (0.18) $ (0.10)
Weighted average number of shares and vested RSUs used in computing net loss per ordinary share, diluted 105,079,508 101,685,915 104,563,467 101,381,153
v3.24.2.u1
Condensed Consolidated Interim 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 986 986
Exercise of options and vesting of RSUs (in Shares) 2,966,800      
Stock-based compensation 7,809 7,809
Net loss for the period (9,959) (9,959)
Balance at Jun. 30, 2023 $ 49 333,862 (167,634) 166,277
Balance (in Shares) at Jun. 30, 2023 [1] 101,843,066      
Balance at Mar. 31, 2023 $ 49 329,817 (163,052) 166,814
Balance (in Shares) at Mar. 31, 2023 [1] 101,465,926      
Exercise of options and vesting of RSUs 58 58
Exercise of options and vesting of RSUs (in Shares) 377,140      
Stock-based compensation 3,987 3,987
Net loss for the period (4,582) (4,582)
Balance at Jun. 30, 2023 $ 49 333,862 (167,634) 166,277
Balance (in Shares) at Jun. 30, 2023 [1] 101,843,066      
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 636 $ 636
Exercise of options and vesting of RSUs (in Shares) 2,419,708     936,281
Stock-based compensation 7,499 $ 7,499
Net loss for the period (18,911) (18,911)
Balance at Jun. 30, 2024 49 349,726 (196,247) $ 153,528
Balance (in Shares) at Jun. 30, 2024       105,574,104
Balance at Mar. 31, 2024 $ 49 345,481 (187,378) $ 158,152
Balance (in Shares) at Mar. 31, 2024 [1] 104,376,565      
Exercise of options and vesting of RSUs 510 510
Exercise of options and vesting of RSUs (in Shares) 1,197,539      
Stock-based compensation 3,735 3,735
Net loss for the period (8,869) (8,869)
Balance at Jun. 30, 2024 $ 49 $ 349,726 $ (196,247) $ 153,528
Balance (in Shares) at Jun. 30, 2024       105,574,104
[1] Excluding 1,006,250 Forfeiture Shares
v3.24.2.u1
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss for the period $ (8,869) $ (4,582) $ (18,911) $ (9,959)
Income and expense items not involving cash flows:        
Depreciation and amortization 479 414 935 793
Stock-based compensation 3,735 3,987 7,499 7,809
Exchange rate differences 741 1,021 1,266 2,273
Interest on short-term deposits 642 177 917 (389)
Change in fair value of Forfeiture Shares (10) (22) (35) (1,529)
Change in earnout liability 28 28
Reduction in the carrying amount of ROU assets 239 522 723 986
Equity in earnings of investee, net of dividend received 12 4 17 7
Changes in operating assets and liabilities, net of effects of businesses acquired:        
Trade accounts receivable 180 (3,176) 4,915 (4,575)
Prepaid expenses and other current assets 101 1,042 308 403
Inventories 1,054 4,549 2,401 4,799
Other assets (8) (8) 66 34
Trade accounts payable (1,475) (1,835) (6,948)
Accrued compensation 886 158 115 (1,008)
Other current liabilities 773 (1,797) 618 (216)
Change in operating lease liabilities (204) (457) (622) (859)
Other long-term liabilities (4) 1 (20) 68
Net cash provided by (used in) operating activities (225) 358 (1,615) (8,311)
CASH FLOWS FROM INVESTING ACTIVITIES:        
Investment in short-term deposits (49,379) (68,428) (87,219) (109,153)
Maturities of short-term deposits 47,059 74,810 104,038 118,954
Purchase of property and equipment (235) (777) (265) (919)
Cash paid for business combination, net of cash acquired (note 3) (7,800) (7,800)
Net cash provided by (used in) investing activities (10,355) 5,605 8,754 8,882
CASH FLOWS FROM FINANCING ACTIVITIES:        
Exercise of stock options 510 58 636 986
Net cash provided by financing activities 510 58 636 986
Effect of exchange rate changes on cash and cash equivalents (324) (100) (330) (171)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,394) 5,921 7,445 1,386
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 35,100 15,489 17,261 20,024
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 24,706 21,410 24,706 21,410
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION -        
Cash paid for taxes 28 213 63 252
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Trade accounts payable on account on property and equipment 279 35 279 160
Fair value of earnout liability assumed in business combination 2,036 2,036
Operating lease liabilities arising from obtaining operating right-of-use assets $ 4,802 $ 152 $ 4,833 $ 436
v3.24.2.u1
General
 6 Months Ended
Jun. 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”.

 

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 terrorists infiltrated Israel’s southern border from the Gaza Strip and conducted a series of attacks on civilian and military targets. Hamas also launched extensive rocket attacks on Israel’s civilian population and industrial centers along Israel’s border with the Gaza Strip and in the Central District of Israel. Following the attack, Israel’s security cabinet declared war against Hamas and a military campaign against the organization as Hamas has continued its rocket and terror attacks in parallel. In addition, Hezbollah has attacked military and civilian targets in northern Israel, to which Israel has responded and Iran launched a series of drone and missile strikes against Israel, to which Israel has responded as well. How long and how severe the current conflict in Gaza, Northern Israel 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 the Company’s operations and financial results have not been materially affected.
v3.24.2.u1
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 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 six and three months ended June 30, 2024, shown in these financial statements 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, except for the following.

 

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.
v3.24.2.u1
Business Combination
 6 Months Ended
Jun. 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. The purchase price is subject to a post-closing adjustment for net working capital. In addition, the Company shall be obligated to pay Acroname’s former shareholders earn out 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 June 30, 2024, are $445 thousand and $121 thousand, respectively (including amortization of tangible and intangible assets in the amount of $78 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 relationship 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 
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
                 
Revenues   28,445    51,144    14,791    25,658 
Net loss   (18,506)   (11,312)   (8,954)   (4,700)
v3.24.2.u1
Inventories
 6 Months Ended
Jun. 30, 2024
Inventories [Abstract]  
INVENTORIES

NOTE 4 - INVENTORIES:

 

   June 30, 2024   December 31, 2023 
   U.S. dollars in thousands 
Work in process   8,414    6,176 
Finished goods   5,656    7,660 
    14,070    13,836 

 

Inventories write-downs amounted to $300 thousand and $397 thousand during the six months ended June 30, 2024, and 2023, respectively. Inventories write-downs amounted to $32 thousand and $273 thousand during the three months ended June 30, 2024, and 2023, respectively.
v3.24.2.u1
Leases
 6 Months Ended
Jun. 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 extend 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.
v3.24.2.u1
Intangible Assets
 6 Months Ended
Jun. 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 June 30,
2024		 
Core technology   5.58    4,653         69    4,584 
Customer relationships   5.58    597    9    588 
Total Intangible assets        5,250    78    5,172 

 

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

 

Remainder of 2024   470 
2025   941 
2026   941 
2027   941 
2028 and thenafter   1,879 
Total   5,172 
v3.24.2.u1
Commitments and Contingent Liabilities
 6 Months Ended
Jun. 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 June 30, 2024, and December 31, 2023, the total value of open purchase orders for such manufacturing contractors was approximately $6,762 thousand and $4,951 thousand, respectively.

 

The Company has noncancelable purchase agreements for certain IP embedded in the Company products as well as certain agreements for the license of development tools used by the development team. As of June 30, 2024, and December 31, 2023, the value of non-paid amounts related to such agreements totaled to $3,849 thousand and $5,513 thousand, respectively.

 

b.Legal proceedings

 

As of June 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 products that suffer from a design and/or manufacturing defect. Preliminary internal assessments by the Company are currently being conducted. At this early stage, the Company is unable to estimate the volume of this alleged damage. As of June 30, 2024, the Company has not recorded a relevant provision in its books.
v3.24.2.u1
Other Current Liabilities
 6 Months Ended
Jun. 30, 2024
Other Current Liabilities [Abstract]  
OTHER CURRENT LIABILITIES

NOTE 8 - OTHER CURRENT LIABILITIES:

 

   June 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
         
Accrued vacation   3,269    2,820 
Accrued expenses and other   2,432    2,102 
Taxes payable   19    36 
    5,720    4,958 
v3.24.2.u1
Forfeiture Shares
 6 Months Ended
Jun. 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.

 

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

 

   June 30,
2024		   December 31,
2023		 
Stock price   3.19    2.45 
Expected term (years)   0.25-1.25    0.75-1.75 
Expected volatility   44.79%-59.80%    30.95%-60.31% 
Risk-free interest rate   5.00%-5.48%    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:

 

   Six months ended
June 30,
2024		   Year ended
December 31,
2023		 
   U.S. dollars in thousands 
Balance at beginning of period   38    1,751 
Changes in fair value   (35)   (1,713)
Balance at end of the period   3    38 
v3.24.2.u1
Earnout Liability
 6 Months Ended
Jun. 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:

 

   June 30,
2024		 
Discount rate   21.3% 
Expected term (years)   1.50-2.00 
Expected volatility   56.72% 
Risk-free interest rate   4.90% 

 

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

 

   Six months ended
June 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   (28)   
-
 
Fair value at the end of the year   (2,064)   
-
 
v3.24.2.u1
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2024
Stock-Based Compensation [Abstract]  
STOCK-BASED COMPENSATION

NOTE 11 - STOCK-BASED COMPENSATION:

 

Stock Options

 

As of June 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.

 

425,077 out of the outstanding options that have not yet vested as of June 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 June 30, 2024, the unrecognized compensation costs related to those unvested stock options are $690 thousand, which are expected to be recognized over a weighted-average period of 1.79 years.

 

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

 

    Six months ended  
    June 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     423,795     $ 2.39  
Exercised during the period     (936,281 )   $ 0.68  
Forfeited during the period     (1,451 )   $ 0.86  
Options outstanding as of June 30, 2024     10,813,006     $ 1.06  
Options exercisable as of June 30, 2024     9,928,467     $ 0.96  

 

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

 

Outstanding as of June 30, 2024   Exercisable as of June 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    9,942,319    4.39    0.80    23,770    9,551,815    4.31    0.80    22,860 
 $1.87    3,313    6.53    1.87    4    2,691    6.53    1.87    4 
 $2.10    16,563    0.51    2.10    18    16,563    0.51    2.10    18 
 $2.39-$2.40    425,269    6.54    2.39    340    78,632    6.54    2.39    63 
 $4.99    196,625    5.55    4.99    
-
    120,144    5.55    4.99    
-
 
 $5.36    140,000    5.00    5.36    
-
    70,000    5.00    5.36    
-
 
 $7.58    85,380    4.54    7.58    
-
    85,380    4.54    7.58    
-
 
 $9.07    3,537    4.46    9.07    
-
    3,242    4.46    9.07    
-
 

 

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

 

   For the Six months ended on June 30,
2024		   For the six months ended on June 30,
2023		 
Expected term   4-5    3-5 
Expected volatility   58.56%    48.35%-63.84% 
Expected dividend rate   0%    0% 
Risk-free rate   3.85%-3.92%    3.62%-4.21% 

 

During the six months period ended on June 30, 2024, 423,795 options were granted to related parties (please refer to Note 15 for further information).

 

As of June 30, 2024, the unrecognized compensation costs related to unvested stock options was $1,946 thousand, which are expected to be recognized over a weighted-average period of 1.15 years.

 

The weighted-average fair value of the options that were granted during the period ended June 30, 2024 was $2.39 at the grant date.

 

The total intrinsic value of options exercised during the period of six months ended June 30, 2024 and 2023 was $1,821 and $7,965 thousand, respectively.

 

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

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   88    96    44    46 
Research and development   441    631    218    309 
Sales and marketing   490    570    241    278 
General and administrative   563    1,350    187    671 
Total stock-based compensation   1,582    2,647    690    1,304 

 

Restricted Stock Units

 

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

 

   Number of RSUs   Weighted-Average Grant Date Fair Value 
Outstanding at the beginning of the year   5,442,313   $           5.26 
Granted during the period   5,970,121   $2.17 
Vested during the period   (1,483,427)  $5.28 
Forfeited during the period   (207,211)  $3.58 
Outstanding at the end of the period   9,721,796   $3.36 

 

As of June 30, 2024, the unrecognized compensation cost related to unvested RSUs totaled to approximately $27,957 thousand and is expected to be expensed over a weighted-average recognition period of approximately 2.7 years.

 

During the six months ended on June 30, 2024, 818,004 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:

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   386    288    199    151 
Research and development   2,957    2,779    1,512    1,462 
Sales and marketing   1,489    1,197    762    613 
General and administrative   1,085    898    572    457 
Total stock-based compensation-RSUs   5,917    5,162    3,045    2,683 
v3.24.2.u1
Net Income (Loss) Per Ordinary Share
 6 Months Ended
Jun. 30, 2024
Net Income (Loss) Per Ordinary Share [Abstract]  
NET INCOME (LOSS) PER ORDINARY SHARE

NOTE 12 - 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:

 

   Six months ended   Three months ended 
   June 30,
2024		   June 30,
2023		   June 30,
2024		   June 30,
2023		 
Basic net loss per ordinary share                
Numerator:                
Net loss   (18,911)   (9,959)   (8,869)   (4,582)
                     
Denominator:                    
Weighted average common shares and vested RSUs – basic and diluted
   104,563,467    101,381,153    105,079,508    101,685,915 
Basic and dilutive net loss per common share
   (0.18)   (0.10)   (0.08)   (0.05)

 

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 anti-dilutive:

 

   Six months ended   Three months ended 
   June 30,
2024		   June 30,
2023		   June 30,
2024		   June 30,
2023		 
Options   11,069,975    13,097,348    11,178,735    12,315,780 
Restricted Stock Units   7,582,055    5,050,085    9,434,974    6,486,973 
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   1,006,250    1,006,250    1,006,250    1,006,250 
v3.24.2.u1
Financial Income, Net
 6 Months Ended
Jun. 30, 2024
Financial Income, Net [Abstract]  
FINANCIAL INCOME, NET

NOTE 13 - FINANCIAL INCOME, NET:

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Foreign currency exchange differences   (1,271)   (2,273)   (745)   (1,021)
Interest income on short-term deposits   3,061    3,090    1,294    1,630 
Other   (16)   (25)   (9)   (8)
Total financial income, net   1,774    792    540    601 
v3.24.2.u1
Segment and Revenue by Geography and By Major Customer
 6 Months Ended
Jun. 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.

 

   Six months ended on June 30, 2024 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   15,247    9,909    25,156 
Gross profit   11,624    3,535    15,159 
Research and development expenses   11,778    8,328    20,106 
Sales and marketing expenses   3,939    4,817    8,756 
General and administrative expenses   3,604    3,364    6,968 
Change in earnout liability   28    
-
    28 
Segment operating loss   (7,725)   (12,974)   (20,699)
Change in fair value of Forfeiture Shares             35 
Financial expenses, net             1,774 
Loss before taxes on income             (18,890)
                
Depreciation and Amortization expenses   507    428    935 
Stock-based compensation   3,424    4,075    7,499 

 

   Six months ended on June 30, 2023 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   31,828    16,227    48,055 
Gross profit   24,734    5,993    30,727 
Research and development expenses   11,094    15,027    26,121 
Sales and marketing expenses   4,009    5,306    9,315 
General and administrative expenses   3,756    3,777    7,533 
Segment operating profit (loss)   5,875    (18,117)   (12,242)
Change in fair value of Forfeiture Shares             1,529 
Financial expenses, net             792 
Loss before taxes on income             (9,921)
                
Depreciation expenses   352    441    793 
Stock-based compensation   3,287    4,522    7,809 

 

   Three months ended on June 30, 2024 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   8,070    5,527    13,597 
Gross profit   6,085    2,259    8,344 
Research and development expenses   5,921    4,040    9,961 
Sales and marketing expenses   2,066    2,302    4,368 
General and administrative expenses   1,765    1,632    3,397 
Change in earnout liability   28    
-
    28 
Segment operating (loss)   (3,695)   (5,715)   (9,410)
Change in fair value of Forfeiture Shares             10 
Financial expenses, net             540 
Loss before taxes on income             (8,860)
                
Depreciation and Amortization expenses   279    200    479 
Stock-based compensation   1,703    2,032    3,735 

 

   Three months ended on June 30, 2023 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   15,469    8,706    24,175 
Gross profit   11,644    3,290    14,934 
Research and development expenses   4822    7,339    12,161 
Sales and marketing expenses   1,892    2,363    4,255 
General and administrative expenses   1,857    1,844    3,701 
Segment operating profit (loss)   3,072    (8,255)   (5,183)
Change in fair value of Forfeiture Shares             22 
Financial expenses, net             601 
Loss before taxes on income             (4,560)
                
Depreciation expenses   173    241    414 
Stock-based compensation   1,678    2,309    3,987 

 

b.Geographic Revenues

 

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

 

   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Israel   431    1,266    178    543 
China   3,507    4,755    1,987    2,332 
United States   4,462    3,441    3,013    1,981 
Portugal   3,098    67    1,207    67 
Hungary   6,129    13,013    4,082    6,955 
Japan   2,036    4,605    837    2,248 
Germany   1,427    5,637    598    2,989 
Taiwan   483    4,992    209    1,748 
Other   3,583    10,279    1,486    5,312 
    25,156    48,055    13,597    24,175 

 

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:

 

   June 30,
2024		   December 31,
2023		 
Accounts Receivable  % of Account Receivable 
Customer A   28%   19%
Customer B   19%   3%
Customer C   15%   11%
Customer D   4%   11%
Customer E   6%   10%

 

   Six months ended June 30,   Three months ended June 30, 
   2024   2023   2024   2023 
Revenues  % of Revenues   % of Revenues 
Customer A   14%   19%   24%   21%
Customer B   12%   0%   8%   0%
Customer C   10%   11%   11%   11%
Customer D   10%   3%   9%   3%
Customer E   7%   7%   9%   6%
Customer F   10%   6%   5%   6%

 

d.Long-lived assets by Geography:

 

   June 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
Domestic (Israel)   8,240    4,419 
China   142    176 
USA   784    139 
Other   277    422 
    9,443    5,156 
v3.24.2.u1
Related Party Transactions
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 15 - RELATED PARTY TRANSACTIONS

 

During the six months ended June 30, 2024, the Company granted 423,795 stock options, at a weighted average exercise price of $2.39 to several executive officers, and Board of Directors (“Board”) members of the Company.

 

In addition, during the six months ended June 30, 2024 the Company granted 818,004 RSUs to several executive officers and Board members of the Company.

 

No stock options and RSUs were granted in the three months ended June 30, 2024.

 

The fair value of the stock options that were granted during the six months ended June 30, 2024 is $489 thousand, which is expected to be recognized over a 1-4 years vesting period, and the fair value of the granted RSUs is $9,858 thousand, which is expected to be recognized over a 1-4-years vesting period.
v3.24.2.u1
Accounting Policies, by Policy (Policies)
 6 Months Ended
Jun. 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 six and three months ended June 30, 2024, shown in these financial statements 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, except for the following.
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.
v3.24.2.u1
Business Combination (Tables)
 6 Months Ended
Jun. 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 relationship 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 
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
                 
Revenues   28,445    51,144    14,791    25,658 
Net loss   (18,506)   (11,312)   (8,954)   (4,700)
v3.24.2.u1
Inventories (Tables)
 6 Months Ended
Jun. 30, 2024
Inventories [Abstract]  
Schedule of Inventories
   June 30, 2024   December 31, 2023 
   U.S. dollars in thousands 
Work in process   8,414    6,176 
Finished goods   5,656    7,660 
    14,070    13,836 
v3.24.2.u1
Intangible Assets (Tables)
 6 Months Ended
Jun. 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 June 30,
2024		 
Core technology   5.58    4,653         69    4,584 
Customer relationships   5.58    597    9    588 
Total Intangible assets        5,250    78    5,172 
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   470 
2025   941 
2026   941 
2027   941 
2028 and thenafter   1,879 
Total   5,172 
v3.24.2.u1
Other Current Liabilities (Tables)
 6 Months Ended
Jun. 30, 2024
Other Current Liabilities [Abstract]  
Schedule of Other Current Liabilities
   June 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
         
Accrued vacation   3,269    2,820 
Accrued expenses and other   2,432    2,102 
Taxes payable   19    36 
    5,720    4,958 
v3.24.2.u1
Forfeiture Shares (Tables)
 6 Months Ended
Jun. 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:
   Six months ended
June 30,
2024		   Year ended
December 31,
2023		 
   U.S. dollars in thousands 
Balance at beginning of period   38    1,751 
Changes in fair value   (35)   (1,713)
Balance at end of the period   3    38 
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:
   June 30,
2024		   December 31,
2023		 
Stock price   3.19    2.45 
Expected term (years)   0.25-1.25    0.75-1.75 
Expected volatility   44.79%-59.80%    30.95%-60.31% 
Risk-free interest rate   5.00%-5.48%    4.37%-5.03% 
v3.24.2.u1
Earnout Liability (Tables)
 6 Months Ended
Jun. 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:
   Six months ended
June 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   (28)   
-
 
Fair value at the end of the year   (2,064)   
-
 
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:
   June 30,
2024		 
Discount rate   21.3% 
Expected term (years)   1.50-2.00 
Expected volatility   56.72% 
Risk-free interest rate   4.90% 
v3.24.2.u1
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2024
Stock-Based Compensation (Tables) [Line Items]  
Schedule of Share Option Plan The following is a summary of the status of the Company’s share option plan as of June 30, 2024:
    Six months ended  
    June 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     423,795     $ 2.39  
Exercised during the period     (936,281 )   $ 0.68  
Forfeited during the period     (1,451 )   $ 0.86  
Options outstanding as of June 30, 2024     10,813,006     $ 1.06  
Options exercisable as of June 30, 2024     9,928,467     $ 0.96  
Schedule of Information about Stock Options Outstanding The following table summarizes information about stock options outstanding as of June 30, 2024:
Outstanding as of June 30, 2024   Exercisable as of June 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    9,942,319    4.39    0.80    23,770    9,551,815    4.31    0.80    22,860 
 $1.87    3,313    6.53    1.87    4    2,691    6.53    1.87    4 
 $2.10    16,563    0.51    2.10    18    16,563    0.51    2.10    18 
 $2.39-$2.40    425,269    6.54    2.39    340    78,632    6.54    2.39    63 
 $4.99    196,625    5.55    4.99    
-
    120,144    5.55    4.99    
-
 
 $5.36    140,000    5.00    5.36    
-
    70,000    5.00    5.36    
-
 
 $7.58    85,380    4.54    7.58    
-
    85,380    4.54    7.58    
-
 
 $9.07    3,537    4.46    9.07    
-
    3,242    4.46    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 Six months ended on June 30,
2024		   For the six months ended on June 30,
2023		 
Expected term   4-5    3-5 
Expected volatility   58.56%    48.35%-63.84% 
Expected dividend rate   0%    0% 
Risk-free rate   3.85%-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:
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   88    96    44    46 
Research and development   441    631    218    309 
Sales and marketing   490    570    241    278 
General and administrative   563    1,350    187    671 
Total stock-based compensation   1,582    2,647    690    1,304 

 
Schedule of Company’s RSU’s The following is a summary of the status of the Company’s RSU’s as of June 30, 2024, as well as changes during the period of six months ended June 30, 2024:
   Number of RSUs   Weighted-Average Grant Date Fair Value 
Outstanding at the beginning of the year   5,442,313   $           5.26 
Granted during the period   5,970,121   $2.17 
Vested during the period   (1,483,427)  $5.28 
Forfeited during the period   (207,211)  $3.58 
Outstanding at the end of the period   9,721,796   $3.36 
Restricted Stock Units [Member]  
Stock-Based Compensation (Tables) [Line Items]  
Schedule of Classification of RSU's Expenses The following table presents the classification of RSU’s expenses for the periods indicated:
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Cost of revenue   386    288    199    151 
Research and development   2,957    2,779    1,512    1,462 
Sales and marketing   1,489    1,197    762    613 
General and administrative   1,085    898    572    457 
Total stock-based compensation-RSUs   5,917    5,162    3,045    2,683 
v3.24.2.u1
Net Income (Loss) Per Ordinary Share (Tables)
 6 Months Ended
Jun. 30, 2024
Net Income (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:
   Six months ended   Three months ended 
   June 30,
2024		   June 30,
2023		   June 30,
2024		   June 30,
2023		 
Basic net loss per ordinary share                
Numerator:                
Net loss   (18,911)   (9,959)   (8,869)   (4,582)
                     
Denominator:                    
Weighted average common shares and vested RSUs – basic and diluted
   104,563,467    101,381,153    105,079,508    101,685,915 
Basic and dilutive net loss per common share
   (0.18)   (0.10)   (0.08)   (0.05)
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 anti-dilutive:
   Six months ended   Three months ended 
   June 30,
2024		   June 30,
2023		   June 30,
2024		   June 30,
2023		 
Options   11,069,975    13,097,348    11,178,735    12,315,780 
Restricted Stock Units   7,582,055    5,050,085    9,434,974    6,486,973 
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   1,006,250    1,006,250    1,006,250    1,006,250 
v3.24.2.u1
Financial Income, Net (Tables)
 6 Months Ended
Jun. 30, 2024
Financial Income, Net [Abstract]  
Schedule of Financial Income, Net
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Foreign currency exchange differences   (1,271)   (2,273)   (745)   (1,021)
Interest income on short-term deposits   3,061    3,090    1,294    1,630 
Other   (16)   (25)   (9)   (8)
Total financial income, net   1,774    792    540    601 
v3.24.2.u1
Segment and Revenue by Geography and By Major Customer (Tables)
 6 Months Ended
Jun. 30, 2024
Segment and Revenue by Geography and by Major Customer [Abstract]  
Schedule of Evaluating Financial Performance and Allocating Resources
   Six months ended on June 30, 2024 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   15,247    9,909    25,156 
Gross profit   11,624    3,535    15,159 
Research and development expenses   11,778    8,328    20,106 
Sales and marketing expenses   3,939    4,817    8,756 
General and administrative expenses   3,604    3,364    6,968 
Change in earnout liability   28    
-
    28 
Segment operating loss   (7,725)   (12,974)   (20,699)
Change in fair value of Forfeiture Shares             35 
Financial expenses, net             1,774 
Loss before taxes on income             (18,890)
                
Depreciation and Amortization expenses   507    428    935 
Stock-based compensation   3,424    4,075    7,499 
   Six months ended on June 30, 2023 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   31,828    16,227    48,055 
Gross profit   24,734    5,993    30,727 
Research and development expenses   11,094    15,027    26,121 
Sales and marketing expenses   4,009    5,306    9,315 
General and administrative expenses   3,756    3,777    7,533 
Segment operating profit (loss)   5,875    (18,117)   (12,242)
Change in fair value of Forfeiture Shares             1,529 
Financial expenses, net             792 
Loss before taxes on income             (9,921)
                
Depreciation expenses   352    441    793 
Stock-based compensation   3,287    4,522    7,809 

 

   Three months ended on June 30, 2024 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   8,070    5,527    13,597 
Gross profit   6,085    2,259    8,344 
Research and development expenses   5,921    4,040    9,961 
Sales and marketing expenses   2,066    2,302    4,368 
General and administrative expenses   1,765    1,632    3,397 
Change in earnout liability   28    
-
    28 
Segment operating (loss)   (3,695)   (5,715)   (9,410)
Change in fair value of Forfeiture Shares             10 
Financial expenses, net             540 
Loss before taxes on income             (8,860)
                
Depreciation and Amortization expenses   279    200    479 
Stock-based compensation   1,703    2,032    3,735 
   Three months ended on June 30, 2023 
   Audio-Video   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   15,469    8,706    24,175 
Gross profit   11,644    3,290    14,934 
Research and development expenses   4822    7,339    12,161 
Sales and marketing expenses   1,892    2,363    4,255 
General and administrative expenses   1,857    1,844    3,701 
Segment operating profit (loss)   3,072    (8,255)   (5,183)
Change in fair value of Forfeiture Shares             22 
Financial expenses, net             601 
Loss before taxes on income             (4,560)
                
Depreciation expenses   173    241    414 
Stock-based compensation   1,678    2,309    3,987 

 
Schedule of Revenue by Geography, Based on the Customers The following table shows revenue by geography, based on the customers’ “bill to” location:
   Six months ended
June 30		   Three months ended
June 30		 
   2024   2023   2024   2023 
   U.S. dollars in thousands 
                 
Israel   431    1,266    178    543 
China   3,507    4,755    1,987    2,332 
United States   4,462    3,441    3,013    1,981 
Portugal   3,098    67    1,207    67 
Hungary   6,129    13,013    4,082    6,955 
Japan   2,036    4,605    837    2,248 
Germany   1,427    5,637    598    2,989 
Taiwan   483    4,992    209    1,748 
Other   3,583    10,279    1,486    5,312 
    25,156    48,055    13,597    24,175 
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:
   June 30,
2024		   December 31,
2023		 
Accounts Receivable  % of Account Receivable 
Customer A   28%   19%
Customer B   19%   3%
Customer C   15%   11%
Customer D   4%   11%
Customer E   6%   10%
   Six months ended June 30,   Three months ended June 30, 
   2024   2023   2024   2023 
Revenues  % of Revenues   % of Revenues 
Customer A   14%   19%   24%   21%
Customer B   12%   0%   8%   0%
Customer C   10%   11%   11%   11%
Customer D   10%   3%   9%   3%
Customer E   7%   7%   9%   6%
Customer F   10%   6%   5%   6%

 
Schedule of Long-Lived Assets by Geography
   June 30,
2024		   December 31,
2023		 
   U.S. dollars in thousands 
Domestic (Israel)   8,240    4,419 
China   142    176 
USA   784    139 
Other   277    422 
    9,443    5,156 
v3.24.2.u1
Business Combination (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
May 31, 2024
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Business Combination [Line Items]          
Cash Consideration $ 9,100     $ 9,160  
Amount consideration 1,300        
Payments of completion development $ 1,500        
Amounts of net loss   $ (8,954) $ (4,700) (18,506) $ (11,312)
Amortization of tangible and intangible assets       78  
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%        
Earn out payments $ 7,200        
Amounts of revenues       $ 445  
Amounts of net loss       $ 121  
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 $1,847 thousand of goodwill was assigned to Audio Video segment.
v3.24.2.u1
Business Combination (Details) - Schedule of Fair Value of Consideration Transferred to Acroname Shareholders - USD ($)
$ in Thousands
 6 Months Ended
May 31, 2024
Jun. 30, 2024
Schedule of Fair Value of Consideration Transferred to Acroname Shareholders [Abstract]    
Cash payment $ 9,100 $ 9,160
Fair value of earnout liability [1]   2,036
Total consideration   $ 11,196
[1] The Company recorded earn out liability in connection with its business combination at fair value on the acquisition date.
v3.24.2.u1
Business Combination (Details) - Schedule of Assets Acquired and Liabilities
$ in Thousands
Jun. 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 relationship 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 $1,847 thousand of goodwill was assigned to Audio Video segment.
v3.24.2.u1
Business Combination (Details) - Schedule of Unaudited Pro-Forma - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Unaudited Pro-Forma [Abstract]        
Revenues $ 14,791 $ 25,658 $ 28,445 $ 51,144
Net loss $ (8,954) $ (4,700) $ (18,506) $ (11,312)
v3.24.2.u1
Inventories (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Inventories [Abstract]        
Inventories write-downs $ 32 $ 273 $ 300 $ 397
v3.24.2.u1
Inventories (Details) - Schedule of Inventories - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Schedule of Inventories [Abstract]    
Work in process $ 8,414 $ 6,176
Finished goods 5,656 7,660
Total $ 14,070 $ 13,836
v3.24.2.u1
Leases (Details) - m²
Jun. 30, 2024
Apr. 30, 2024
Leases (Details) [Line Items]    
Lease period 2 years  
Hod Hasharon, Israel [Member]    
Leases (Details) [Line Items]    
Office space   5,500
v3.24.2.u1
Intangible Assets (Details) - Schedule of Identifiable Intangible Assets - USD ($)
$ in Thousands
Jun. 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 78  
Net carrying amount as of June 30, 2024 $ 5,172
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 69  
Net carrying amount as of June 30, 2024 $ 4,584  
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 9  
Net carrying amount as of June 30, 2024 $ 588  
v3.24.2.u1
Intangible Assets (Details) - Schedule of Amortization of Intangible Assets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Schedule of Amortization of Intangible Assets [Abstract]    
Remainder of 2024 $ 470  
2025 941  
2026 941  
2027 941  
2028 and thenafter 1,879  
Total $ 5,172
v3.24.2.u1
Commitments and Contingent Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Commitments and Contingent Liabilities [Abstract]    
Open purchase orders $ 6,762 $ 4,951
Non-paid purchase obligation $ 3,849 $ 5,513
v3.24.2.u1
Other Current Liabilities (Details) - Schedule of Other Current Liabilities - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Schedule of Other Current Liabilities [Abstract]    
Accrued vacation $ 3,269 $ 2,820
Accrued expenses and other 2,432 2,102
Taxes payable 19 36
Other current liabilities $ 5,720 $ 4,958
v3.24.2.u1
Forfeiture Shares (Details)
Sep. 29, 2021
shares
PTK Sponsor [Member]  
Forfeiture Shares [Line Items]  
Ordinary shares 1,006,250
v3.24.2.u1
Forfeiture Shares (Details) - Schedule of Fair Value of Forfeited Shares
Jun. 30, 2024
Dec. 31, 2023
Stock Price [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 3.19 2.45
Expected Term (years) [Member] | Minimum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 0.25 0.75
Expected Term (years) [Member] | Maximum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 1.25 1.75
Expected Volatility [Member] | Minimum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 44.79 30.95
Expected Volatility [Member] | Maximum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 59.8 60.31
Risk-Free Interest Rate [Member] | Minimum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 5 4.37
Risk-Free Interest Rate [Member] | Maximum [Member]    
Schedule of Fair Value of Forfeited Shares [Line Items]    
Forfeiture shares key assumptions 5.48 5.03
v3.24.2.u1
Forfeiture Shares (Details) - Schedule of Changes in Fair Value of Forfeited Shares - Level 3 [Member] - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 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 (35) (1,713)
Balance at end of the period $ 3 $ 38
v3.24.2.u1
Earnout Liability (Details)
$ in Millions
 6 Months Ended
Jun. 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]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 21.3
Discount Rate [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 21.4
Expected Term [Member] | Minimum [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 1.5
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 2
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 4.9
Risk-free Interest Rate [Member] | Monte-Carlo simulation [Member]  
Earnout Liability (Details) [Line Items]  
Earnout liability key assumptions input 5.04
v3.24.2.u1
Earnout Liability (Details) - Schedule of Fair Value of the Earnout Liability
Jun. 30, 2024
Discount Rate [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 21.3
Expected Term [Member] | Minimum [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 1.5
Expected Term [Member] | Maximum [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 2
Expected Volatility [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 56.72
Risk-Free Interest Rate [Member]  
Schedule of Fair Value of the Earnout Liability [Line Items]  
Earnout liability key assumptions 4.9
v3.24.2.u1
Earnout Liability (Details) - Schedule of Fair Value Measurement is Estimated Utilizing Level 3 Inputs - Fair Value, Inputs, Level 3 [Member] - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Fair value at the beginning of the year
Initial recognition of earnout liability (2,036)
Change in fair value of earnout liability (28)
Fair value at the end of the year $ (2,064)
v3.24.2.u1
Stock-Based Compensation (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Stock-Based Compensation (Details) [Line Items]    
Sharebased payment options 423,795  
Unvested stock options 1,946,000  
Weighted-average period 1 year 1 month 24 days  
Fair value (in Dollars per share) $ 2.39  
Options exercised (in Dollars) $ 1,821 $ 7,965
Restricted Stock Units (RSUs) [Member]    
Stock-Based Compensation (Details) [Line Items]    
Cost expected to be expensed, weighted average period 2 years 8 months 12 days  
Sharebased payment options 818,004  
Nonvested award, excluding option, cost not yet recognized, amount (in Dollars) $ 27,957  
Share-based compensation arrangement 5,970,121  
Restricted Stock Units (RSUs) [Member] | Related Parties [Member]    
Stock-Based Compensation (Details) [Line Items]    
Share-based compensation arrangement 818,004  
Several Executive Officers, and Board of Directors [Member]    
Stock-Based Compensation (Details) [Line Items]    
Sharebased payment options 423,795  
Merger And Acquisition Transaction [Member] | Share-Based Payment Arrangement, Option [Member]    
Stock-Based Compensation (Details) [Line Items]    
Number of outstanding options unvested 425,077  
Unrecognized compensation costs (in Dollars) $ 690  
Cost expected to be expensed, weighted average period 1 year 9 months 14 days  
Valens Semiconductor Ltd Two Thousand Twenty One Share Incentive Plan [Member]    
Stock-Based Compensation (Details) [Line Items]    
Ordinary shares, reserved for issuance 35,874,244 30,666,212
v3.24.2.u1
Stock-Based Compensation (Details) - Schedule of Share Option Plan - $ / shares
 6 Months Ended
Jun. 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 423,795
Weighted- Average Exercise price, Granted $ 2.39
Number of Options, Exercised (936,281)
Weighted- Average Exercise price, Exercised $ 0.68
Number of Options, Forfeited (1,451)
Weighted- Average Exercise price, Forfeited $ 0.86
Number of Options, exercisable ending 10,813,006
Weighted- Average Exercise price, exercisable ending $ 1.06
Number of Options, exercisable 9,928,467
Weighted- Average Exercise price, exercisable $ 0.96
v3.24.2.u1
Stock-Based Compensation (Details) - Schedule of Information about Stock Options Outstanding
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2024
USD ($)
$ / shares
shares
Range of Exercise Prices One [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Number outstanding (in Shares) | shares 9,942,319
Weighted average remaining contractual term 4 years 4 months 20 days
Weighted average exercise price $ 0.8
Aggregate intrinsic value (in Dollars) | $ $ 23,770
Number of exercisable (in Shares) | shares 9,551,815
Weighted average remaining contractual term 4 years 3 months 21 days
Weighted- average exercise price $ 0.8
Aggregate intrinsic value (in Dollars) | $ $ 22,860
Range of Exercise Prices Two [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 1.87
Number outstanding (in Shares) | shares 3,313
Weighted average remaining contractual term 6 years 6 months 10 days
Weighted average exercise price $ 1.87
Aggregate intrinsic value (in Dollars) | $ $ 4
Number of exercisable (in Shares) | shares 2,691
Weighted average remaining contractual term 6 years 6 months 10 days
Weighted- average exercise price $ 1.87
Aggregate intrinsic value (in Dollars) | $ $ 4
Range of Exercise Prices Three [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 2.1
Number outstanding (in Shares) | shares 16,563
Weighted average remaining contractual term 6 months 3 days
Weighted average exercise price $ 2.1
Aggregate intrinsic value (in Dollars) | $ $ 18
Number of exercisable (in Shares) | shares 16,563
Weighted average remaining contractual term 6 months 3 days
Weighted- average exercise price $ 2.1
Aggregate intrinsic value (in Dollars) | $ $ 18
Range of Exercise Prices Four [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Number outstanding (in Shares) | shares 425,269
Weighted average remaining contractual term 6 years 6 months 14 days
Weighted average exercise price $ 2.39
Aggregate intrinsic value (in Dollars) | $ $ 340
Number of exercisable (in Shares) | shares 78,632
Weighted average remaining contractual term 6 years 6 months 14 days
Weighted- average exercise price $ 2.39
Aggregate intrinsic value (in Dollars) | $ $ 63
Range of Exercise Prices Five [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 4.99
Number outstanding (in Shares) | shares 196,625
Weighted average remaining contractual term 5 years 6 months 18 days
Weighted average exercise price $ 4.99
Aggregate intrinsic value (in Dollars) | $
Number of exercisable (in Shares) | shares 120,144
Weighted average remaining contractual term 5 years 6 months 18 days
Weighted- average exercise price $ 4.99
Aggregate intrinsic value (in Dollars) | $
Range of Exercise Prices Six [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 5.36
Number outstanding (in Shares) | shares 140,000
Weighted average remaining contractual term 5 years
Weighted average exercise price $ 5.36
Aggregate intrinsic value (in Dollars) | $
Number of exercisable (in Shares) | shares 70,000
Weighted average remaining contractual term 5 years
Weighted- average exercise price $ 5.36
Aggregate intrinsic value (in Dollars) | $
Range of Exercise Prices Seven [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 7.58
Number outstanding (in Shares) | shares 85,380
Weighted average remaining contractual term 4 years 6 months 14 days
Weighted average exercise price $ 7.58
Aggregate intrinsic value (in Dollars) | $
Number of exercisable (in Shares) | shares 85,380
Weighted average remaining contractual term 4 years 6 months 14 days
Weighted- average exercise price $ 7.58
Aggregate intrinsic value (in Dollars) | $
Range of Exercise Prices Eight [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 9.07
Number outstanding (in Shares) | shares 3,537
Weighted average remaining contractual term 4 years 5 months 15 days
Weighted average exercise price $ 9.07
Aggregate intrinsic value (in Dollars) | $
Number of exercisable (in Shares) | shares 3,242
Weighted average remaining contractual term 4 years 5 months 15 days
Weighted- average exercise price $ 9.07
Aggregate intrinsic value (in Dollars) | $
Minimum [Member] | Range of Exercise Prices One [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Lower Range Limit $ 0.15
Minimum [Member] | Range of Exercise Prices Four [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Lower Range Limit 2.39
Maximum [Member] | Range of Exercise Prices One [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit 0.86
Maximum [Member] | Range of Exercise Prices Four [Member]  
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]  
Upper Range Limit $ 2.4
v3.24.2.u1
Stock-Based Compensation (Details) - Schedule of Black-Scholes Option-Pricing Model Assumptions
 6 Months Ended
Jun. 30, 2024
Jun. 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   48.35%
Expected volatility 58.56%  
Expected volatility maximum   63.84%
Expected dividend rate 0.00% 0.00%
Risk-free rate minimum 3.85% 3.62%
Risk-free rate maximum 3.92% 4.21%
v3.24.2.u1
Stock-Based Compensation (Details) - Schedule of Stock Options Expenses - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options $ 690 $ 1,304 $ 1,582 $ 2,647
Cost of Revenue [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options 44 46 88 96
Research and Development [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options 218 309 441 631
Sales and Marketing [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options 241 278 490 570
General and Administrative [Member]        
Schedule of Stock Options Expenses [Line Items]        
Total stock-based compensation -Stock Options $ 187 $ 671 $ 563 $ 1,350
v3.24.2.u1
Stock-Based Compensation (Details) - Schedule of Company’s RSU’s - Restricted Stock Units [Member]
 6 Months Ended
Jun. 30, 2024
$ / shares
shares
Stock-Based Compensation (Details) - 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 5,970,121
Weighted-Average Grant Date Fair Value, Granted | $ / shares $ 2.17
Number of RSUs, Vested | shares (1,483,427)
Weighted-Average Grant Date Fair Value, Vested | $ / shares $ 5.28
Number of RSUs, Forfeited | shares (207,211)
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares $ 3.58
Number of RSUs, Ending Balance | shares 9,721,796
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares $ 3.36
v3.24.2.u1
Stock-Based Compensation (Details) - Schedule of Classification of RSU's Expenses - Restricted Stock Units (RSUs) [Member] - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Company’s RSU’s [Line Items]        
Total stock-based compensation-RSUs $ 3,045 $ 2,683 $ 5,917 $ 5,162
Cost of Revenue [Member]        
Schedule of Company’s RSU’s [Line Items]        
Total stock-based compensation-RSUs 199 151 386 288
Research and Development [Member]        
Schedule of Company’s RSU’s [Line Items]        
Total stock-based compensation-RSUs 1,512 1,462 2,957 2,779
Sales and Marketing [Member]        
Schedule of Company’s RSU’s [Line Items]        
Total stock-based compensation-RSUs 762 613 1,489 1,197
General and Administrative [Member]        
Schedule of Company’s RSU’s [Line Items]        
Total stock-based compensation-RSUs $ 572 $ 457 $ 1,085 $ 898
v3.24.2.u1
Net Income (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 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Numerator:        
Net loss $ (8,869) $ (4,582) $ (18,911) $ (9,959)
Denominator:        
Weighted average common shares and vested RSUs – basic and diluted 105,079,508 101,685,915 104,563,467 101,381,153
Basic net loss per common share $ (0.08) $ (0.05) $ (0.18) $ (0.1)
v3.24.2.u1
Net Income (Loss) Per Ordinary Share (Details) - Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share (Parentheticals) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share [Abstract]        
Dilutive Weighted average common shares 105,079,508 101,685,915 104,563,467 101,381,153
Dilutive net loss per common share $ (0.08) $ (0.05) $ (0.18) $ (0.10)
v3.24.2.u1
Net Income (Loss) Per Ordinary Share (Details) - Schedule of Weighted-Average Shares of Securities - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Options [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 11,178,735 12,315,780 11,069,975 13,097,348
Restricted Stock Units [Member]        
Schedule of Weighted-Average Shares of Securities [Line Items]        
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 9,434,974 6,486,973 7,582,055 5,050,085
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 1,006,250 1,006,250 1,006,250 1,006,250
v3.24.2.u1
Financial Income, Net (Details) - Schedule of Financial Income, Net - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Financial Income, Net [Abstract]        
Foreign currency exchange differences $ (745) $ (1,021) $ (1,271) $ (2,273)
Interest income on short-term deposits 1,294 1,630 3,061 3,090
Other (9) (8) (16) (25)
Total financial income, net $ 540 $ 601 $ 1,774 $ 792
v3.24.2.u1
Segment and Revenue by Geography and By Major Customer (Details)
 6 Months Ended
Jun. 30, 2024
Segment and Revenue by Geography and by Major Customer [Abstract]  
Reportable segments 2
v3.24.2.u1
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Evaluating Financial Performance and Allocating Resources - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Segment Reporting Information [Line Items]        
Revenues $ 13,597 $ 24,175 $ 25,156 $ 48,055
Gross profit 8,344 14,934 15,159 30,727
Research and development expenses 9,961 12,161 20,106 26,121
Sales and marketing expenses 4,368 4,255 8,756 9,315
General and administrative expenses 3,397 3,701 6,968 7,533
Change in earnout liability 28 28
Segment operating profit (loss) (9,410) (5,183) (20,699) (12,242)
Change in fair value of Forfeiture Shares 10 22 35 1,529
Stock-based compensation 3,735 3,987 7,499 7,809
Consolidated [Member]        
Segment Reporting Information [Line Items]        
Revenues 13,597 24,175 25,156 48,055
Gross profit 8,344 14,934 15,159 30,727
Research and development expenses 9,961 12,161 20,106 26,121
Sales and marketing expenses 4,368 4,255 8,756 9,315
General and administrative expenses 3,397 3,701 6,968 7,533
Change in earnout liability 28   28  
Segment operating profit (loss) (9,410) (5,183) (20,699) (12,242)
Change in fair value of Forfeiture Shares 10 22 35 1,529
Financial expenses, net 540 601 1,774 792
Loss before taxes on income (8,860) (4,560) (18,890) (9,921)
Depreciation expenses 479 414 935 793
Stock-based compensation 3,735 3,987 7,499 7,809
Audio-Video [Member]        
Segment Reporting Information [Line Items]        
Revenues 8,070 15,469 15,247 31,828
Gross profit 6,085 11,644 11,624 24,734
Research and development expenses 5,921 4,822 11,778 11,094
Sales and marketing expenses 2,066 1,892 3,939 4,009
General and administrative expenses 1,765 1,857 3,604 3,756
Change in earnout liability 28   28  
Segment operating profit (loss) (3,695) 3,072 (7,725) 5,875
Depreciation expenses 279 173 507 352
Stock-based compensation 1,703 1,678 3,424 3,287
Automotive [Member]        
Segment Reporting Information [Line Items]        
Revenues 5,527 8,706 9,909 16,227
Gross profit 2,259 3,290 3,535 5,993
Research and development expenses 4,040 7,339 8,328 15,027
Sales and marketing expenses 2,302 2,363 4,817 5,306
General and administrative expenses 1,632 1,844 3,364 3,777
Change in earnout liability    
Segment operating profit (loss) (5,715) (8,255) (12,974) (18,117)
Depreciation expenses 200 241 428 441
Stock-based compensation $ 2,032 $ 2,309 $ 4,075 $ 4,522
v3.24.2.u1
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 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues $ 13,597 $ 24,175 $ 25,156 $ 48,055
Israel [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 178 543 431 1,266
China [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 1,987 2,332 3,507 4,755
United States [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 3,013 1,981 4,462 3,441
Portugal [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 1,207 67 3,098 67
Hungary [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 4,082 6,955 6,129 13,013
Japan [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 837 2,248 2,036 4,605
Germany [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 598 2,989 1,427 5,637
Taiwan [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues 209 1,748 483 4,992
Other [Member]        
Schedule of Revenue by Geography, Based on the Customers [Abstract]        
Revenues $ 1,486 $ 5,312 $ 3,583 $ 10,279
v3.24.2.u1
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Supplemental Data - Major Customers
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 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     28.00%   19.00%
Customer Concentration Risk [Member] | Customer A [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 24.00% 21.00% 14.00% 19.00%  
Customer Concentration Risk [Member] | Customer B [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     19.00%   3.00%
Customer Concentration Risk [Member] | Customer B [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 8.00% 0.00% 12.00% 0.00%  
Customer Concentration Risk [Member] | Customer C [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     15.00%   11.00%
Customer Concentration Risk [Member] | Customer C [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 11.00% 11.00% 10.00% 11.00%  
Customer Concentration Risk [Member] | Customer D [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     4.00%   11.00%
Customer Concentration Risk [Member] | Customer D [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 9.00% 3.00% 10.00% 3.00%  
Customer Concentration Risk [Member] | Customer E [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 9.00% 6.00% 7.00% 7.00%  
Customer Concentration Risk [Member] | Customer F [Member] | Revenue Benchmark [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage 5.00% 6.00% 10.00% 6.00%  
Credit Concentration Risk [Member] | Customer E [Member] | Accounts Receivable [Member]          
Schedule of Supplemental Data - Major Customers [Line Items]          
Concentration Risk, Percentage     6.00%   10.00%
v3.24.2.u1
Segment and Revenue by Geography and By Major Customer (Details) - Schedule of Long-Lived Assets by Geography - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets $ 9,443 $ 5,156
Domestic (Israel) [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets 8,240 4,419
China [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets 142 176
USA [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets 784 139
Other [Member]    
Schedule of Long Lived Assets by Geography [Abstract]    
Long lived assets $ 277 $ 422
v3.24.2.u1
Related Party Transactions (Details) - USD ($)
$ / shares in Units, $ in Thousands
 6 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Related Party Transactions [Line Items]    
Granted stock options 423,795  
Weighted average exercise price (in Dollars per share) $ 1.06 $ 0.97
Restricted Stock Units (RSUs) [Member]    
Related Party Transactions [Line Items]    
Granted stock options 818,004  
Fair value granted RSU (in Dollars) $ 9,858  
Several Executive Officers, and Board of Directors [Member]    
Related Party Transactions [Line Items]    
Granted stock options 423,795  
Weighted average exercise price (in Dollars per share) $ 2.39  
Stock Options [Member]    
Related Party Transactions [Line Items]    
Granted stock options 489,000  
Stock Options [Member] | Minimum [Member]    
Related Party Transactions [Line Items]    
Expected recognized vesting period 1 year  
Stock Options [Member] | Maximum [Member]    
Related Party Transactions [Line Items]    
Expected recognized vesting period 4 years  
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