Enovix Corporation

Thank you for standing by and welcome to the NLX Corporation second quarter 2021 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program may be recorded. And now I'd like to introduce your host for today's program, Charles Anderson, Vice President of Investor Relations. Please go ahead, sir.

Thank you. Hello, everyone, and welcome to Inovix Corporation's second quarter 2021 results conference call. With us today are President, Chief Executive Officer, and Co-Founder, Harold Rust, and Chief Financial Officer, Stefan Pitska. Harold and Stefan will review the operating and financial highlights, and then we will take questions. After the Q&A session, we'll conclude the call. Before we continue, let me kindly remind that we released our shareholder letter after the market closed today. It's available on our website at ir.inovix.com. A replay of this conference call will be available later today on the investor page of our website. Please note that our shareholder letter, press release, and this conference call all contain forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors. A novice can give no assurance that these statements will prove to be correct, and we do not intend and undertake no duty to update these statements. We will also discuss certain forward-looking non-GAP financial measures which are not prepared in accordance with general accounting, except for the accounting principles. We urge you to review the discussion of our non-GAP financial measures and the risks and uncertainties associated with our business that are described in the Safe Harbor provision for forward-looking statements in our shareholder letter and in our filings with the Securities and Exchange Commission. I will now turn the call over to Harold to begin. Harold?

Thank you, Charlie. I want to welcome everyone to our first results call as a public company. In mid-July, we completed our business combination with Rogers Silicon Valley Acquisition Corp. This was a major development for us and for the whole lithium ion battery industry. The net proceeds of $382 million from this transaction provides us with the capital to fund the scale-up of two advanced lithium ion battery cell production facilities and commercialize our breakthrough 3D silicon lithium ion battery technology. I want to thank everyone involved for their intense effort over the past few months to get the deal done. I also want to highlight that on our first trading day, we hosted our advanced battery production showcase. Over 60 investors and analysts attended in person, and more than 300 joined the live webcast. Since then, over 2,000 have watched the webcast replay. We are humbled and excited by the interest in our story, which we think is one of the most compelling in our industry today. Now let's discuss our second quarter and touch on the highlights of our shareholder letter, which discusses in depth our results, strategy, progress around validation and production, and supply chain. After I am finished, Stephan will cover our financial performance and outlook. A key highlight is our go-to-market strategy. We remain committed to our strategy of initially focusing on the premium mobile computing battery market, which we forecast to be $13 billion by 2025. This market encompasses computing, mobile communications, and wearables, including smartwatches, headsets, and the emerging markets of augmented reality and virtual reality, also known as AR, VR. In the second quarter, we began shipping technology qualification samples from our pilot line to our initial launch customers in these markets. Additionally, we have met key battery performance specifications for our initial customers. We anticipate shipping final customer qualification samples from our first production line by year end, with production following in the first quarter of 2022 and revenue in the second quarter of 2022. Customer demand today remains very high for our products. At the end of Q2, the potential annual revenue of all programs, either in the active design or design win phase, reached $292 million. These represent programs that are through technology evaluation and design work has begun. In the case of design wins, the customer is funding a custom battery design or qualifying one of our standard batteries for a formally approved product. We have also identified an incremental $881 million of engaged opportunities, which we define as a potential annualized value of projects where a customer has deemed our battery a match for their product and is evaluating our technology. Altogether, our revenue funnel is $1.17 billion. To meet this growing demand, we are accelerating efforts throughout the company to scale. For example, we have accelerated hiring. In the first half of the year, we grew our headcount by 43% to 184 employees, which included several key additions to the leadership team. Now I'd like to discuss our progress on our first production line. As many of you saw during our showcase last month, we are on track to start production at Fab 1 in the first quarter of 2022, resulting in product revenue in the second quarter of 2022. Last quarter, we were able to navigate the global supply chain constraints and receive all key equipment for our first production line. This required heroic efforts, including a critical decision to charter an Antonov AN-124, one of the world's largest cargo planes, to fly over 60 tons of manufacturing equipment from Asia to San Francisco. We managed industry-wide supply chain challenges and installed and started qualifying our equipment in the midst of a global pandemic. Now let me turn the call over to Stefan, our CFO, who will discuss our financial results. Stefan?