lasr-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________

FORM 10-Q

________________________________________________________

(Mark One)

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

For the quarterly period ended June 30, 2023

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

For the transition period from to

Commission File Number 001-38462

________________________________________________________

NLIGHT, INC.

(Exact name of Registrant as specified in its charter)

________________________________________________________

Delaware

91-2066376

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification Number)

4637 NW 18th Avenue

Camas, Washington 98607

(Address of principal executive office, including zip code)

(360) 566-4460

(Registrant's telephone number, including area code)

__________________________________________

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


Title of Each Class	Trading Symbol	Name of Exchange on which Registered
Common Stock, par value $0.0001 per share	LASR	The Nasdaq Stock Market LLC

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

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

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

Large Accelerated Filer

☐

Accelerated Filer

☒

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

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

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

As of August 1, 2023, the Registrant had 46,510,468 shares of common stock outstanding.


TABLE OF CONTENTS
			Page

Part I. Financial Information			1
Item 1. Unaudited Interim Financial Statements			1
Consolidated Balance Sheets: June 30 , 2023 and December 31, 2022 (unaudited)			1
Consolidated Statements of Operations: Three and Six Months Ended June 30 , 2023 and 2022 (unaudited)			2
Consolidated Statements of Comprehensive Loss: Three and Six Months Ended June 30 , 2023 and 2022 (unaudited)			3
Consolidated Statements of Stockholders' Equity: Three and Six Months Ended June 30 , 2023 and 2022 (unaudited)			4
Consolidated Statements of Cash Flows: Six Months Ended June 30 , 2023 and 2022 (unaudited)			6
Notes to Consolidated Financial Statements (unaudited)			7
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			17
Item 3. Quantitative and Qualitative Disclosures About Market Risk			24
Item 4. Controls and Procedures			25
Part II. Other Information			25
Item 1. Legal Proceedings			25
Item 1A. Risk Factors			25
Item 5. Other Information			25
Item 6. Exhibits			26
Signatures			27

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

nLIGHT, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)


	As of
	June 30, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	41,818	$	57,826
Marketable securities	59,893		50,391
Accounts receivable, net of allowances of $283 and $290	46,252		37,913
Inventory	64,937		67,600
Prepaid expenses and other current assets	16,076		17,026
Total current assets	228,976		230,756
Restricted cash	254		252
Lease right-of-use assets	13,561		13,893
Property, plant and equipment, net	57,124		60,693
Intangible assets, net	2,799		4,041
Goodwill	12,389		12,376
Other assets, net	6,797		7,222
Total assets	$	321,900	$	329,233

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	17,574	$	17,507
Accrued liabilities	14,083		12,820
Deferred revenues	1,365		1,407
Current portion of lease liabilities	3,089		2,758

Total current liabilities	36,111		34,492
Non-current income taxes payable	5,191		6,699
Long-term lease liabilities	12,113		12,852

Other long-term liabilities	3,122		4,345
Total liabilities	56,537		58,388
Stockholders' equity:

Common stock - $0.0001 par value; 190,000 shares authorized, 46,503 and 45,629 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	16		16
Additional paid-in capital	507,649		496,211
Accumulated other comprehensive loss	(3,115)		(2,748)
Accumulated deficit	(239,187)		(222,634)
Total stockholders’ equity	265,363		270,845
Total liabilities and stockholders’ equity	$	321,900	$	329,233

See accompanying notes to consolidated financial statements.

nLIGHT, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue:
Products	$	39,592	$	48,180	$	80,699	$	99,241
Development	13,712		12,647		26,696		26,045
Total revenue	53,304		60,827		107,395		125,286
Cost of revenue:
Products	28,272		33,683		55,798		69,451
Development	12,924		11,759		25,226		24,273
Total cost of revenue	41,196		45,442		81,024		93,724
Gross profit	12,108		15,385		26,371		31,562
Operating expenses:
Research and development	12,004		13,788		23,305		27,499
Sales, general, and administrative	11,790		11,914		22,959		22,689

Total operating expenses	23,794		25,702		46,264		50,188
Loss from operations	(11,686)		(10,317)		(19,893)		(18,626)
Other income:
Interest income, net	350		71		687		71
Other income (expense), net	1,057		(106)		1,461		(77)
Loss before income taxes	(10,279)		(10,352)		(17,745)		(18,632)
Income tax expense (benefit)	(1,456)		(10)		(1,192)		333
Net loss	$	(8,823)	$	(10,342)	$	(16,553)	$	(18,965)


Net loss per share, basic and diluted	$	(0.19)	$	(0.23)	$	(0.36)	$	(0.43)


Shares used in per share calculations, basic and diluted	45,717		44,178		45,580		43,919

See accompanying notes to consolidated financial statements.

nLIGHT, Inc.

Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net loss	$	(8,823)	$	(10,342)	$	(16,553)	$	(18,965)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments	(1,054)		(1,868)		(685)		(1,964)
Unrealized gains on available-for-sale securities	104		—		318		—
Comprehensive loss	$	(9,773)	$	(12,210)	$	(16,920)	$	(20,929)

See accompanying notes to consolidated financial statements.

nLIGHT, Inc.

Consolidated Statements of Stockholders' Equity

(In thousands)

(Unaudited)

SEC Form 10-Q filed by nLIGHT Inc.