Valens Semiconductor Q3 2026 loss narrows to $5.5M
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Valens Semiconductor Ltd. (VLN) reported third-quarter 2026 revenue of $21.912 million, compared with $17.335 million in the 2025 quarter. Gross profit was $13.626 million versus $10.922 million, and net loss narrowed to $5.498 million from $7.321 million. For the nine months ended September 30, revenue totaled $56.876 million, compared with $51.222 million.
Third-quarter revenue included $14.045 million from Cross Industry Business and $7.867 million from Automotive; in the 2025 quarter, those segments reported $13.226 million and $4.109 million, respectively. Net cash used in operating activities for the nine months was $17.504 million, compared with $12.423 million. At September 30, 2026, cash and equivalents were $35.416 million and short-term deposits were $39.325 million.
The company reported that it, the customer and the insurer signed a release and discharge agreement in June 2026 concerning a customer claim related to a batch production incident. The insurer paid the customer $1.476 million; the company’s provision for the remaining $250,000 retention amount was recorded as of September 30, 2026.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue was $21.912 million, versus $17.335 million in 2025.
- Moderate pointThird-quarter net loss narrowed to $5.498 million from $7.321 million.
Negative
- Moderate pointNine-month operating cash used was $17.504 million, versus $12.423 million in 2025.
Filing Explained
$11,924 thousand in manufacturing purchase orders and $3,332 thousand in unpaid IP and development-tool amounts are disclosed; the joint-product earnout has no remaining obligation.
Form 6-K is a foreign private issuer’s interim report for material information published in its home market; this filing furnishes unaudited statements for the three months ended
At quarter-end, the notes list
For the Acroname acquisition, the joint-product earnout period had expired by
Key Figures
Key Terms
cash flow hedges financial
Level 3 measurements financial
non-designated hedges financial
antidilutive financial
earnout liability financial
FAQ
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What were VLN’s third-quarter 2026 revenue and net loss?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November
Commission File Number:
(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, 333-276520, 333-285792 and 333-293747).
1
TABLE OF CONTENTS
| ITEM | ||
| 99.1 | Condensed Consolidated Financial Statements (Unaudited) as of and for the three months ended September 30, 2026 | |
| 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/ Yoram Salinger | ||
| Name: | Yoram Salinger | ||
| Title: | Chief Executive Officer | ||
Date: November 12, 2026
3
Exhibit 99.1
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
SEPTEMBER 30, 2026
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
As of September 30, 2026
CONTENTS
| Page | |
| CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) - IN U.S. DOLLARS ($): | |
| Balance sheets | F-2 - F-3 |
| Statements of operations and comprehensive loss | 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-20 |
| F-1 |
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(U.S. dollars in thousands, except for number of shares and par value)
| September
30, 2026 |
December
31, 2025 |
|||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | ||||||||
| Short-term deposits | ||||||||
| Restricted short-term deposit | ||||||||
| Trade accounts receivable | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Inventories | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| LONG-TERM ASSETS: | ||||||||
| Property and equipment, net | ||||||||
| Operating lease right-of-use assets | ||||||||
| Intangible assets | ||||||||
| Goodwill | ||||||||
| Other assets | ||||||||
| TOTAL LONG-TERM ASSETS | ||||||||
| TOTAL ASSETS | ||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
| F-2 |
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(U.S. dollars in thousands, except for number of shares and par value)
| September 30, 2026 |
December 31, 2025 |
|||||||
| Liabilities and Shareholders’ Equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade accounts payable | ||||||||
| Accrued compensation | ||||||||
| Earnout liability | - | |||||||
| Current maturities of operating leases liabilities | ||||||||
| Other current liabilities | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| LONG-TERM LIABILITIES: | ||||||||
| Non-current operating leases liabilities | ||||||||
| Other long-term liabilities | ||||||||
| TOTAL LONG-TERM LIABILITIES | ||||||||
| TOTAL LIABILITIES | ||||||||
| COMMITMENTS AND CONTINGENT LIABILITIES (note 4) | ||||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Ordinary shares, no par value: | ||||||||
| Treasury shares at cost: | - | ( | ) | |||||
| Additional paid-in capital | ||||||||
| Accumulated other comprehensive income | ( | ) | ||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
| F-3 |
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
(U.S. dollars in thousands, except share and per share amounts)
| Nine months ended September 30 |
Three months ended September 30 |
|||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| REVENUES | ||||||||||||||||
| COST OF REVENUES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| GROSS PROFIT | ||||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Research and development expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Sales and marketing expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| General and administrative expenses | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Change in earnout liability | ( | ) | - | ( | ) | |||||||||||
| TOTAL OPERATING EXPENSES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| OPERATING LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Change in fair value of Forfeiture Shares | - | - | ||||||||||||||
| FINANCIAL INCOME, NET | ||||||||||||||||
| LOSS BEFORE INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| LOSS AFTER INCOME TAXES | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Equity in earnings of investee | ||||||||||||||||
| NET LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Basic and diluted net loss per Ordinary Share | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Weighted average number of shares and vested RSUs used in computing net loss per Ordinary Share | ||||||||||||||||
| Other comprehensive income (loss): | ||||||||||||||||
| Change in unrealized gain (loss) on cash flow hedges | ( | ) | ( | ) | ( | ) | ||||||||||
| TOTAL COMPREHENSIVE LOSS | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
| F-4 |
VALENS SEMICONDUCTOR LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)
(U.S. dollars in thousands, except share data)
| Nine months ended September 30, 2026 | ||||||||||||||||||||||||||||
| Ordinary shares | Additional paid- | Treasury |
Accumulated other comprehensive | Accumulated | ||||||||||||||||||||||||
| Shares | Amount | in capital | Shares | Income (loss) | Deficit | Total | ||||||||||||||||||||||
| Balance as of January 1, 2026 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Exercise of options and vesting of RSUs | - | - | - | - | ||||||||||||||||||||||||
| Retirement of treasury shares | - | - | ( | ) | - | - | - | |||||||||||||||||||||
| Stock based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Change in unrealized loss on cash flow hedges | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Net loss for the period | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of September 30, 2026 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Nine months ended September 30, 2025 | ||||||||||||||||||||||||||||
| Ordinary shares | Additional paid- | Treasury |
Accumulated other comprehensive | Accumulated | ||||||||||||||||||||||||
| Shares | Amount | in capital | Shares | Income | Deficit | Total | ||||||||||||||||||||||
| Balance as of January 1, 2025 | (*) | ( | ) | ( | ) | |||||||||||||||||||||||
| Exercise of options and vesting of RSUs | - | - | - | - | ||||||||||||||||||||||||
| Repurchase of Ordinary Shares | ( | ) | - | - | ( | ) | - | - | ( | ) | ||||||||||||||||||
| Stock based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Change in unrealized gain on cash flow hedges | - | - | - | - | - | |||||||||||||||||||||||
| Net loss for the period | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of September 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||
| Three months ended September 30, 2026 | ||||||||||||||||||||||||||||
| Ordinary shares | Additional paid- | Treasury | Accumulated other comprehensive | Accumulated | ||||||||||||||||||||||||
| Shares | Amount | in capital | Shares | Income (Loss) | Deficit | Total | ||||||||||||||||||||||
| Balance as of July 1, 2026 | - | ( | ||||||||||||||||||||||||||
| Exercise of options and vesting of RSUs | - | - | - | - | ||||||||||||||||||||||||
| Stock based compensation | - | - | - | - | ||||||||||||||||||||||||
| Change in unrealized loss on cash flow hedges | - | - | - | ( | ) | - | ( | ) | ||||||||||||||||||||
| Net loss for the period | - | - | - | - | ( | ) | ( | ) | ||||||||||||||||||||
| Balance as of September 30, 2026 | - | ( | ) | ( | ) | |||||||||||||||||||||||
| Three months ended September 30, 2025 | ||||||||||||||||||||||||||||
| Ordinary shares | Additional paid- | Treasury |
Accumulated other comprehensive | Accumulated | ||||||||||||||||||||||||
| Shares | Amount | in capital | Shares | Income (Loss) | Deficit | Total | ||||||||||||||||||||||
| Balance as of July 1, 2025 | (*) | ( | ) | ( | ) | |||||||||||||||||||||||
| Exercise of options and vesting of RSUs | - | - | - | - | ||||||||||||||||||||||||
| Repurchase of Ordinary Shares | ( | ) | - | - | ( | ) | - | - | ( | ) | ||||||||||||||||||
| Stock based compensation | - | - | - | - | - | |||||||||||||||||||||||
| Change in unrealized loss on cash flow hedges | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Net loss for the period | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance as of September 30, 2025 | ( | ) | ( | ) | ||||||||||||||||||||||||
| (*) |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
| F-5 |
VALENS SEMICONDUCTOR LTD.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(U.S. dollars in thousands)
| Nine months ended September 30 |
||||||||
| 2026 | 2025 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss for the period | ( | ) | ( | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Income and expense items not involving cash flows: | ||||||||
| Depreciation and amortization | ||||||||
| Stock-based compensation | ||||||||
| Exchange rate differences | ||||||||
| Realized and unrealized loss on non-designated derivative instruments | ||||||||
| Interest on short-term deposits | ||||||||
| Change in fair value of Forfeiture Shares | - | ( | ) | |||||
| Change in earnout liability | ( | ) | ||||||
| Reduction in the carrying amount of ROU assets | ||||||||
| Equity in earnings of investee, net of dividend received | ( | ) | ( | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Trade accounts receivable | ( | ) | ( | ) | ||||
| Prepaid expenses and other current assets | ( | ) | ||||||
| Inventories | ( | ) | ( | ) | ||||
| Other assets | ||||||||
| Trade accounts payable | ( | ) | ( | ) | ||||
| Accrued compensation | ( | ) | ( | ) | ||||
| Other current liabilities | ( | ) | ||||||
| Change in operating lease liabilities | ( | ) | ( | ) | ||||
| Other long-term liabilities | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Investment in short-term deposits | ( | ) | ( | ) | ||||
| Maturities of short-term deposits | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Derivative instruments of non-designated hedges | ( | ) | ( | ) | ||||
| Net cash provided by investing activities | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Repurchase of Ordinary Shares | - | ( | ) | |||||
| Earnout payment | ( | ) | - | |||||
| Exercise of stock options | ||||||||
| Net cash provided by (used in) financing activities | ( | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | ( | ) | ||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSIT | ( | ) | ||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSIT AT THE BEGINNING OF THE PERIOD | ||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED DEPOSIT AT THE END OF THE PERIOD | ||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: |
||||||||
| Cash and cash equivalent | ||||||||
| Restricted deposit | ||||||||
| Total cash, cash equivalent and restricted deposit | ||||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
| Trade accounts payable on account on property and equipment | - | |||||||
| Operating lease liabilities arising from obtaining operating right-of-use assets and lease modifications | ||||||||
The accompanying notes are an integral part of the unaudited condensed consolidated 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 March 31, 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, industrial, machine vision, medical (all referred to as the “CIB”) and Automotive industries, renowned for its Physical Layer (PHY) technologies, 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 solutions for high bandwidth transmission of native interfaces over single low-cost wires and connectors. Valens’ advanced PHY technologies for the auto industry provides the safety and resilience required to handle the noisy automotive environment, addressing the needs of Advanced driver-assistance systems (ADAS), Automotive Data Solutions (ADS), infotainment, telematics and backbone connectivity.
| b. | On October 7, 2023, Hamas launched a series of attacks on civilian and military targets in Southern Israel and Central Israel, to which the Israel Defense Forces responded. In addition, Iran, Hezbollah and the Houthi movement attacked military and civilian targets in Israel, to which Israel responded, including through increased air and/or ground operations in Lebanon, Syria, Yemen and Iran. Following years of conflict in the region, on October 9, 2025, Israel, Hamas, the United States and other countries in the region agreed to a framework for a ceasefire in Gaza between Israel and Hamas. On February 28, 2026, the United States and Israel launched joint combat operations in Iran to which Iran and Hezbollah responded with ballistic missile and drone attacks on Israel as well as other countries and U.S. military bases in the region. Although the United States and Iran have announced ceasefire and de-escalation arrangements from time to time, including a memorandum of understanding entered into on June 17, 2026 that contemplates the termination of military operations on multiple fronts, hostilities have resumed and may continue or escalate. How long and how severe the current conflicts in Gaza, Northern Israel, Lebanon, Iran or the broader region last and become 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. | |
| c. | During July 2026, the NYSE initiated delisting proceedings for the Company’s publicly traded warrants (under the Symbol “VLNW”) and halted trading in such warrants effective July 24, 2026. On September 29, 2026, these warrants expired. |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
| a. | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting.
Certain information and footnote disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In our opinion, the information contained herein reflects all adjustments necessary for a fair statement of our results of operations, financial position, cash flows, and shareholders’ equity. All such adjustments are of a normal, recurring nature.
The results of operations for the nine and three months ended September 30, 2026, are not necessarily indicative of the results to be expected for the full year ending December 31, 2026. 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, 2025.
| F-7 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
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, 2025.
| b. | New Accounting Pronouncements |
Accounting pronouncements effective in future periods:
In November 2024, the FASB issued ASU 2024-03 Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosure (Subtopic 220-40): Disaggregation of Income Statement Expense and ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. The ASU improves the disclosures about a public business entity’s expenses and provides more detailed information about the types of expenses in commonly presented expense captions. The amendments require that at each interim and annual reporting period an entity will, inter alia, disclose amounts of purchases of inventory, employee compensation, depreciation and amortization included in each relevant expense caption (such as cost of sales, general and administrative, and research and development). The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its consolidated financial statement disclosures.
In September 2025, the FASB issued Accounting Standards Update 2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 provides targeted improvements to the accounting for internal-use software costs by replacing the existing project-stage model with a principles-based approach to determine when capitalization of costs should begin. ASU 2025-06 is effective for all entities, on a prospective basis, for annual reporting periods beginning after December 15, 2027, including interim reporting periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the potential impact that ASU 2025-06 will have on its consolidated financial statements.
In December 2025, the FASB issued Accounting Standards Update 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities (“ASU 2025-10”). The update provides recognition, measurement, presentation, and disclosure requirements for government grants, including guidance for grants related to an asset and grants related to income. ASU 2025-10 is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods. Early adoption is permitted. ASU 2025-10 permits an entity to apply the new guidance using a modified prospective basis, a modified retrospective basis, or a full retrospective basis. The Company is currently evaluating the impact of ASU 2025-10 on its consolidated financial statements.
| F-8 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 3 - INVENTORIES:
| September 30, 2026 | December 31, 2025 | |||||||
| U.S. dollars in thousands | ||||||||
| Work in process | ||||||||
| Finished goods | ||||||||
Inventories write-downs amounted to approximately $
NOTE 4 - COMMITMENTS AND CONTINGENT LIABILITIES:
| a. | Noncancelable Purchase Obligations |
The Company depends upon third party subcontractors for manufacturing of wafers, packaging and final tests. As of September 30, 2026, and December 31, 2025, the total value of open purchase orders acknowledged by such manufacturing contractors was approximately $
The Company has noncancelable purchase agreements for certain IP embedded in the Company’s products as well as certain agreements for the license of development tools used by the development team. As of September 30, 2026, and December 31, 2025, the total value of non-paid amounts related to such agreements were $
| b. | Legal proceedings |
As of September 30, 2026 and December 31, 2025, 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 material action, suit, proceeding or investigation by the Company currently pending or that the Company intends to initiate.
On March 26, 2024, the Company received a complaint from a customer (hereafter ‘Customer’) regarding allegedly damaged chips due to a certain batch production incident that customer embedded in its product. The Company identified and remedied the production process.
On September 10, 2024, the Customer sent a cost claim letter in the amount of
In 2024, the Company recorded a relevant provision in its books, within its other current liabilities. Relevant expenses were recorded in the general and administrative expenses.
In June 2025, following the ongoing discussions with the Customer and updated indications, the Company decreased the provision in its financial statements by $
In October 2025, the insurance company provided a draft release and discharge agreement to be signed by the Company, the Customer, and the insurer. Subject to the final execution of such agreement by all parties, the insurance company will pay the Customer $
| F-9 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 4 - COMMITMENTS AND CONTINGENT LIABILITIES (continued):
Based on the progress achieved and the insurance company’s written confirmation of its intent to settle, management determined that the realization of the reimbursement from the insurer is probable and the amount is reasonably estimable. Accordingly, the Company recognized in September 2025 an insurance recovery asset of $
In December 2025, following the draft release and discharge agreement, and the Customer’s feedback to this letter, the Company decreased the provision in its financial statements by additional $
During June 2026 the parties signed the release and discharge agreement. As of September 30, 2026, the provision amounted to $
NOTE 5 - OTHER CURRENT LIABILITIES:
| September 30, 2026 | December 31, 2025 | |||||||
| U.S. dollars in thousands | ||||||||
| Accrued vacation | ||||||||
| Tax authority and other institutions | ||||||||
| Estimated accrual for a certain batch production incident | ||||||||
| Derivative liabilities | - | |||||||
| Accrued expenses | ||||||||
| Revenue Earnout payables (please refer to Note 6) | - | |||||||
| Other | ||||||||
NOTE 6 - EARNOUT LIABILITY:
During 2024 the Company acquired Acroname Inc., a US company specializing in advanced automation and control technologies. With respect to the Acroname’s acquisition, the Company shall be obligated to pay Acroname’s former shareholders earn out payments of up to $
The Company recorded earn-out liability in connection with these payments at fair value on the acquisition date.
Each reporting period thereafter, the Company revaluated 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.
| F-10 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 6 - EARNOUT LIABILITY (continued):
As of December 31, 2025, after achieving the revenue, EBITDA and cash flow targets, the Company calculated the Revenues Earnout according to the actual revenues achieved during the period starting from the Closing date and until December 31, 2025. The Revenues Earnout, amounting to $
As of December 31, 2025, the Company calculated the Joint Product Earnout using the probability that the targets will be achieved, a discount rate of
As of September 30, 2026, the period for achieving the joint product target had expired, and the target had not been achieved. Accordingly, the Company has no remaining obligation in respect of the Joint Product Earnout as of that date.
The following table summarizes the activity for the earnout liability, where fair value measurement is estimated utilizing Level 3 inputs:
| Nine months ended September 30, 2026 | Year ended December 31, 2025 | |||||||
| U.S. dollars in thousands | ||||||||
| Fair value at the beginning of the period | ||||||||
| Reclassification of Revenues Earnout to other current liabilities | - | ( | ) | |||||
| Change in fair value of earnout liability | ( | ) | ( | ) | ||||
| Fair value at the end of the period | - | |||||||
NOTE 7 - DERIVATIVES AND HEDGING:
Derivatives
Generally accepted accounting principles require all derivatives, whether designated in a hedging relationship or not, to be recorded on the balance sheet at fair value. These derivative instruments are measured at fair value within Level 2 of the fair value hierarchy. The Company’s earnings and cash flows are subject to fluctuations due to changes in foreign currency exchange rates. The Company’s foreign currency risk management strategy is principally designed to mitigate the future potential financial impact of changes in the U.S. Dollar value of anticipated transactions and balances denominated in ILS resulting from changes in USD/ILS exchange rates. The Company entered into derivative transactions, specifically foreign currency forward contracts, to manage its exposure to foreign currency exchange risk to reduce earnings volatility. The Company does not enter into derivative transactions for trading or speculative purposes.
Non-Designated Hedges
The Company hedges its foreign currency monetary assets primarily resulting from foreign currency denominated short-term deposits with foreign exchange forward contracts to reduce the risk that the Company’s earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These contracts have maturities of up to approximately 12 months. Generally, the Company does not designate these foreign currency forward contracts as hedges for accounting purposes and changes in the fair value of these instruments are recognized immediately in earnings. Any gains or losses on the underlying foreign-denominated balance are offset by the losses or gains on the forward contract. Derivative instruments are recorded as other current assets or other current liabilities.
As of September 30, 2026, the derivative instruments are recorded as other current liabilities ($
| F-11 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 7 - DERIVATIVES AND HEDGING (continued):
As of September 30, 2026 and December 31, 2025, the Company had outstanding forward contracts not designated as hedging instruments with notional and fair value amounts equivalent to the following:
| Currency Hedged | September 30, 2026 | December 31, 2025 | ||||||
| U.S. dollars in thousands | ||||||||
| Israeli Shekel / U.S. Dollar | ||||||||
| Fair value of derivatives assets | - | |||||||
| Fair value of derivatives liabilities | - | |||||||
The following table shows the effect of our non-designated hedges on the Consolidated Statements of Operations for the three and nine months ended September 30, 2026, and 2025:
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||||
| Location | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| of Gain (Loss) | U.S. dollars in thousands | |||||||||||||||||
| Net realized and unrealized loss, excluding the underlying foreign currency exposure being hedged | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
For the nine months ended September 30, 2026 and 2025, foreign currency profit, net was $
Designated Hedges
The Company has a foreign currency cash flow hedging program, designed to hedge the Company’s foreign exchange rate risk, resulting from ILS payroll expenses. The Company hedges portions of its forecasted payroll payments denominated in ILS for a period of up to 12 months, using forward contracts that are designated as cash flow hedges, as defined by ASC 815. Derivative instruments are recorded as other current assets or other current liabilities, according to the timing of the cash flows. As of September 30, 2026, the derivative instruments are recorded as other current assets ($
The notional and fair value amount and fair value of outstanding derivatives at the end of each period were:
| September 30, 2026 | December 31, 2025 | |||||||
| U.S. dollars in thousands | ||||||||
| Notional amount of foreign currency contracts | ||||||||
| Fair value of foreign currency contract assets | ||||||||
| Fair Value of foreign currency contract liabilities | - | |||||||
| F-12 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 7 - DERIVATIVES AND HEDGING (continued):
The change in accumulated other comprehensive income or loss relating to gains or losses on derivatives used for hedging was as follows:
Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
| Amounts reclassified out of accumulated other comprehensive income (*) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other comprehensive income (loss), net | ( | ) | ( | ) | ( | ) | ||||||||||
| (*) |
In the nine months ended September 30, 2026, $
NOTE 8 - TREASURY SHARES:
| a. | On December 27, 2024, the Company initiated a share repurchase program (the – “Buyback”), at an aggregate amount of up to $ |
| b. | On February 11, 2025, the Company initiated a second share repurchase program (the – “Second Buyback”), at an aggregate amount of up to $ |
Overall, in the framework of the Buyback and the Second Buyback, the Company repurchased a total amount of
During 2025,
NOTE 9 - STOCK-BASED COMPENSATION:
Stock Options
As of September 30, 2026, and December 31, 2025, the number of Ordinary Shares included in the Company’s option plans totaled to
| F-13 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 9 - STOCK-BASED COMPENSATION (continued):
As of September 30, 2026, the unrecognized compensation costs related to those unvested stock options are $
During 2026, the company extended the expiration date of
The following is a summary of the status of the Company’s share option plan as of September 30, 2026:
| Nine months ended | ||||||||
| September 30, 2026 | ||||||||
| Number of Options | Weighted-Average Exercise price | |||||||
| Options outstanding as of December 31, 2025 | $ | | ||||||
| Granted during the period | $ | |||||||
| Exercised during the period | ( | ) | $ | |||||
| Forfeited during the period | ( | ) | $ | |||||
| Options outstanding as of September 30, 2026 | $ | |||||||
| Options exercisable as of September 30, 2026 | $ | |||||||
The following table summarizes information about stock options outstanding as of September 30, 2026:
| Outstanding as of September 30, 2026 | Exercisable as of September 30, 2026 | |||||||||||||||||||||||||||||||||
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) | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||||||||||
| $ | - | - | ||||||||||||||||||||||||||||||||
| $ | - | - | ||||||||||||||||||||||||||||||||
| $ | - | - | - | - | - | |||||||||||||||||||||||||||||
| $ | - | - | - | - | - | |||||||||||||||||||||||||||||
| $ | - | - | ||||||||||||||||||||||||||||||||
| $ | - | - | ||||||||||||||||||||||||||||||||
| $ | - | - | ||||||||||||||||||||||||||||||||
| $ | - | - | ||||||||||||||||||||||||||||||||
The calculated fair value of option grants was estimated using the Black-Scholes option-pricing model with the following assumptions:
For the | For the nine months ended on September 30, 2025 | |||||||
| Expected term | ||||||||
| Expected volatility | ||||||||
| Expected dividend rate | ||||||||
| Risk-free rate | ||||||||
During the nine-month period ended on September 30, 2026,
| F-14 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 9 - STOCK-BASED COMPENSATION (continued):
As of September 30, 2026, the unrecognized compensation costs related to unvested stock options was $
The weighted-average fair value of the options that were granted during the nine-month period ended September 30, 2026, was $
The total intrinsic value of options exercised during the period of nine months ended September 30, 2026 was $
The following table presents the classification of the stock options expenses for the periods indicated:
| Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Cost of revenue | ||||||||||||||||
| Research and development | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Total stock-based compensation | ||||||||||||||||
Restricted Stock Units
The following is a summary of the status of the Company's RSU's as of September 30, 2026, as well as changes during the period of nine months ended September 30, 2026:
| Number of RSUs | Weighted-Average Grant Date Fair Value | |||||||
| RSUs outstanding at the beginning of the year | $ | |||||||
| Granted during the period | $ | |||||||
| Vested during the period | ( | ) | $ | |||||
| Forfeited during the period | ( | ) | $ | |||||
| Outstanding at the end of the period | $ | |||||||
As of September 30, 2026, the unrecognized compensation cost related to unvested RSUs totaled to approximately $
During the nine-month period ended on September 30, 2026,
The following table presents the classification of RSU's expenses for the periods indicated:
| Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Cost of revenue | ||||||||||||||||
| Research and development | ||||||||||||||||
| Sales and marketing | ||||||||||||||||
| General and administrative | ||||||||||||||||
| Total stock-based compensation-RSUs | ||||||||||||||||
| F-15 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 10 - NET LOSS PER ORDINARY SHARE:
The following table sets forth the computation of basic and diluted net loss per Ordinary Share for the periods indicated:
| Nine months ended | Three months ended | |||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||
| Basic net loss per Ordinary Share | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Denominator: | ||||||||||||||||
| Weighted average Ordinary Shares and vested RSUs – basic and diluted | ||||||||||||||||
| Basic and dilutive net loss per Ordinary Share | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
The following weighted-average Ordinary Shares of securities and vested RSU’s were not included in the computation of diluted net loss per common share as their effect would have been antidilutive:
| Nine months ended | Three months ended | |||||||||||||||
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||||||||||||
| Options | ||||||||||||||||
| Unvested Restricted Stock Units | ||||||||||||||||
| Private Warrants | ||||||||||||||||
| Public Warrants | ||||||||||||||||
| Forfeiture Shares | - | - | ||||||||||||||
NOTE 11 - FINANCIAL INCOME, NET:
| Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Foreign currency exchange differences | ( | ) | ( | ) | ( | ) | ||||||||||
| Net realized and unrealized loss on derivative instruments | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Interest income on short-term deposits | ||||||||||||||||
| Other | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Total financial income , net | ||||||||||||||||
| F-16 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 12 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER:
| a. |
Cross Industry Business: The Company’s solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable.
Automotive: Valens Automotive delivers safe & resilient high-speed in-vehicle connectivity for advanced car architectures, realizing the vision of connected and autonomous cars.
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 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.
The CODM monitors the gross profit of each segment to analyze fluctuations relative to prior periods (cost reductions, change in product mix etc.).
The CODM uses segment operating profit (loss) to evaluate income (loss) in deciding whether to reinvest profits into the segment.
| Nine months ended on September 30, 2026 | ||||||||||||
| CIB | Automotive | Consolidated | ||||||||||
| U.S. dollars in thousands | ||||||||||||
| Revenues | ||||||||||||
| Cost of revenues | ||||||||||||
| Gross profit | ||||||||||||
| Research and development expenses | ||||||||||||
| Sales and marketing expenses | ||||||||||||
| General and administrative expenses | ||||||||||||
| Change in earnout liability | ( | ) | - | ( | ) | |||||||
| Segment operating loss | ( | ) | ( | ) | ( | ) | ||||||
| Financial income , net | ||||||||||||
| Loss before taxes on income | ( | ) | ||||||||||
| Depreciation and amortization expenses | ||||||||||||
| Stock-based compensation | ||||||||||||
| F-17 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 12 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):
| Nine months ended on September 30, 2025 | ||||||||||||
| CIB | Automotive | Consolidated | ||||||||||
| U.S. dollars in thousands | ||||||||||||
| Revenues | ||||||||||||
| Cost of revenues | ||||||||||||
| Gross profit | ||||||||||||
| Research and development expenses | ||||||||||||
| Sales and marketing expenses | ||||||||||||
| General and administrative expenses | ||||||||||||
| Change in earnout liability | - | |||||||||||
| Segment operating loss | ( | ) | ( | ) | ( | ) | ||||||
| Change in fair value of forfeiture Shares | 1 | |||||||||||
| Financial income, net | ||||||||||||
| Loss before taxes on income | ( | ) | ||||||||||
| Depreciation and amortization expenses | ||||||||||||
| Stock-based compensation | ||||||||||||
| Three months ended on September 30, 2026 | ||||||||||||
| CIB | Automotive | Consolidated | ||||||||||
| U.S. dollars in thousands | ||||||||||||
| Revenues | ||||||||||||
| Cost of revenues | ||||||||||||
| Gross profit | ||||||||||||
| Research and development expenses | ||||||||||||
| Sales and marketing expenses | ||||||||||||
| General and administrative expenses | ||||||||||||
| Segment operating loss | ( | ) | ( | ) | ( | ) | ||||||
| Financial income, net | ||||||||||||
| Loss before taxes on income | ( | ) | ||||||||||
| Depreciation and amortization expenses | ||||||||||||
| Stock-based compensation | ||||||||||||
| F-18 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 12 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):
| Three months ended on September 30, 2025 | ||||||||||||
| CIB | Automotive | Consolidated | ||||||||||
| U.S. dollars in thousands | ||||||||||||
| Revenues | ||||||||||||
| Cost of revenues | ||||||||||||
| Gross profit | ||||||||||||
| Research and development expenses | ||||||||||||
| Sales and marketing expenses | ||||||||||||
| General and administrative expenses | ||||||||||||
| Change in earnout liability | - | |||||||||||
| Segment operating loss | ( | ) | ( | ) | ( | ) | ||||||
| Change in fair value of forfeiture Shares | 1 | |||||||||||
| Financial income, net | ||||||||||||
| Loss before taxes on income | ( | ) | ||||||||||
| Depreciation and amortization expenses | ||||||||||||
| Stock-based compensation | ||||||||||||
| b. | Geographic Revenues: |
The following table shows revenue by geography, based on the customers’ “bill to” location:
| Nine months ended September 30 | Three months ended September 30 | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Domestic (Israel) | ||||||||||||||||
| China | ||||||||||||||||
| Hong Kong | ||||||||||||||||
| Hungary | ||||||||||||||||
| United States | ||||||||||||||||
| Portugal | ||||||||||||||||
| Other | ||||||||||||||||
| c. | Supplemental data - Major Customers: |
The following tables summarize the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:
| September 30, 2026 | December 31, 2025 | |||||||
| Accounts Receivable | % of Account Receivable | |||||||
| Customer A | ||||||||
| Customer B | ||||||||
| Customer C | ||||||||
| Customer D | ||||||||
| Customer E | ||||||||
| F-19 |
VALENS SEMICONDUCTOR LTD.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
(continued)
NOTE 12 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER (continued):
| Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues | % of Revenues | |||||||||||||||
| Customer A | % | % | % | % | ||||||||||||
| Customer B | % | % | % | % | ||||||||||||
| Customer C | % | % | % | % | ||||||||||||
| Customer D | % | % | % | % | ||||||||||||
| d. | Long-lived assets by Geography: |
| September 30, 2026 | December 31, 2025 | |||||||
| U.S. dollars in thousands | ||||||||
| Domestic (Israel) | ||||||||
| China | ||||||||
| USA | ||||||||
| Other | ||||||||
NOTE 13 - RELATED PARTIES TRANSACTIONS:
| a. | During the nine months ended September 30, 2026, the Company granted |
In addition, during the nine months ended September 30, 2026, the Company granted
The fair value of the stock options that were granted during the nine months ended September 30, 2026, is $
| b. | During August 2026, the Company and PTK Technologies, LLC (“PTK”), a related party whose CEO is a member of the Board, signed a Service Provider Agreement (the “Agreement”). Pursuant to the Agreement, PTK will provide the Company with business development activities in China, in consideration of a monthly retainer in the amount of $ |
In addition to the monthly fee, subject to the prior approval of the Company’s Board, PTK may be entitled to a success fee upon the completion and execution by the Company of a definitive contract for the sale of Company’s products in mass production. As of September 30, 2026, no such contract has been executed.
| F-20 |