ACE Convergence Acquisition Corp.

CIK:0001813658|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Condensed Consolidated Statements of Operations
Revenue	$ 2,773	$ 3,897
Cost of revenue	2,700	3,652
Gross profit	73	245
Operating expenses
Research and development	1,936	3,329
Sales and marketing	1,245	3,219
General and administrative	5,618	4,303
Total operating expenses	8,800	10,851
Loss from operations	(8,727)	(10,606)
Other income (expense), net
Interest expense	(119)	(2,019)
Interest income	77
Other income (expense)	930	(4)
Change in fair value of warrants	(272)	128
Change in fair value of debt	2,116
Change in fair value of earnout liabilities	(1,392)
Total other income (expense), net	1,340	(1,895)
Loss before income taxes	(7,387)	(12,501)
Net loss	$ (7,387)	$ (12,501)
Net loss attributable per share to common stockholders, basic	$ (0.28)	$ (1.85)
Net loss attributable per share to common stockholders, diluted	$ (0.28)	$ (1.85)
Weighted-average shares used to compute net loss attributable per share to common stockholders, basic	26,331,475	6,748,520
Weighted-average shares used to compute net loss attributable per share to common stockholders, diluted	26,331,475	6,748,520

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net loss	$ (7,387)	$ (12,501)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	527	1,642
Stock-based compensation	1,711	865
Loss on disposal of property and equipment		(3)
Noncash operating lease expense	42	211
Change in fair value of warrants	(272)	128
Change in fair value of debt	(2,727)
Change in fair value of earnout liabilities	(1,392)
Changes in operating assets and liabilities:
Accounts receivable	(699)	(430)
Contract assets	(216)	(309)
Inventory	236	(541)
Prepaid expenses and other current assets	244	(527)
Other noncurrent assets	(251)	(838)
Accounts payable	1,139	204
Contract liabilities	(43)	278
Accrued liabilities	(790)	1,390
Operating lease liabilities	(151)	(263)
Net cash used in operating activities	(5,303)	(10,084)
Cash flows from investing activities:
Purchases of property and equipment		(13)
Net cash used in investing activities		(13)
Cash flows from financing activities:
Principal payments under finance lease obligations	(307)	(255)
Proceeds from issuance of debt		15,000
Payment of debt issuance costs		(111)
Debt repayment	(219)	(200)
Proceeds from exercise of stock options	2	29
Proceeds from issuance of common stock	941
Payment of deferred transaction costs		(102)
Net cash provided by financing activities	417	14,361
Net increase (decrease) in cash, cash equivalents and restricted cash	(4,886)	4,264
Cash, cash equivalents and restricted cash at beginning of period	7,433	3,184
Cash, cash equivalents and restricted cash at end of period	$ 2,547	$ 7,448

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 2,227	$ 7,113
Accounts receivable, net	1,934	2,633
Inventory	2,342	2,578
Contract assets	449	233
Prepaid expenses and other current assets	500	744
Total current assets	7,452	13,301
Property and equipment, net	6,011	6,514
Operating leases - right of use asset	329	371
Restricted cash	320	320
Other noncurrent assets	334	83
Total assets	14,446	20,589
Current liabilities
Accounts payable	11,304	10,165
Contract liabilities	2,552	2,595
Accrued liabilities	6,834	7,209
Accrued compensation and related benefits	568	689
Operating lease liability, current	372	516
Finance lease, current	416	1,606
Loan payable - related party, current	600	600
Loan payable, current ($17,374 and $20,101 measured at fair value, respectively)	18,275	20,977
Total current liabilities	40,921	44,357
Operating lease liability, noncurrent	23	30
Finance lease, noncurrent	883
Loan payable, noncurrent	438	663
Warrant liabilities	661	389
Earnout liabilities	2,565	1,173
Total liabilities	45,491	46,612
Commitment and contingencies
Stockholders' deficit
Common stock, $0.0001 par value. 125,000,000 shares authorized at March 31, 2023 and December 31, 2022; 27,148,366 and 26,329,195 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively	3	3
Additional paid in capital	229,502	227,137
Accumulated deficit	(260,550)	(253,163)
Total stockholders' deficit	(31,045)	(26,023)
Total liabilities and stockholders' deficit	$ 14,446	$ 20,589