Enovix Corporation

Good day, and thank you for standing by. And welcome to E-NOVIC's third quarter 2021 earnings conference call. At this time, all participants are in a 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, this conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Charles Anderson, Vice President of Investor Relations. Please go ahead.

Thank you. Hello, everyone, and welcome to Inovix Corporation's third quarter 2021 results conference call. With us today are President, Chief Executive Officer, and Co-Founder, Harold Rust, and Chief Financial Officer, Stefan Bietzke. Harold and Stefan will review the operating 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 you that we released our shareholder letter after the market closed today. It's available on our website at ir.novix.com. A replay of this conference call will be available later today on the investor relations 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. ANOVA 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-GET financial measures which are not prepared in accordance with generally accepted accounting principles. We urge you to review the discussion of our non-GAAP 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?

Thanks, Charlie. Good afternoon, everyone. In our first conference call as a public company in August, we reported solid progress and laid out a detailed strategic plan to commercialize our novel battery cell architecture. Today, we are reporting meaningful progress in our first quarter as a publicly traded company. Our highest priority near-term milestones include shipping production quality customer qualification samples by the end of 2021 and generating first revenue from FRAB 1 in the second quarter of 2022. After today's market close, we published our third quarter shareholder letter, which summarizes our milestone progress and financial results. I will briefly discuss key highlights and then turn the call over to Stephan for a recap of our financials. First and most importantly, FabOne in Fremont is equipped, and in September we produced the first batteries from our first automated production line. This accomplishment marks a major milestone in the 14-year journey of Innova. and highlights the resilience and innovation that are at the core of who we are as a company. Many in our team have worked together most of their careers and started Inovix with a dream to reinvent the basic way a battery is made, and in doing so, usher in a new level of cell performance. Early on, we realized the importance of developing not only our unique architecture, but also a manufacturing method that could be scaled to high volumes. This differentiates us as an advanced battery company and is enabling us to commercialize our technology sooner than others. Producing our first battery from the automated line also marks the completion of a set of goals over the last few years we named the Big Three. The other goals were meeting all customer requirements for our first product and receiving our first purchase order for ourselves. We celebrated the completion of the Big Three in September and paid out a company-wide performance-based bonus for this great achievement. With Production Line 1 well into its qualification phase, we are confident that we will start commercial production in early 2022. Equally important, we began installing a second production line at Feb 1. This is critical to our growth plan for 2023 and beyond. This line will initially focus on larger cells and manufactured production qualification samples to support programs in the mobile communications and laptop markets. On that note, we recently kicked off a new cell design for a market leader in mobile communications. The unique characteristics of our batteries will enable our customers to bring to market new form factors and functionalities previously unavailable due to the limitations of conventional cells. Another accomplishment in Q3 was the development of a new cell design for the augmented reality market. This market requires a high energy density and a very small form factor. We believe Inovix technology is well suited to serve this emerging market. During the quarter, we also shipped a unique pack design featuring multiple wearable class Inovix batteries to a strategic customer. We are targeting wearables, computing, and mobile communications as our initial applications where we can deliver meaningful value through high energy densities. These markets have attractive pricing because our batteries are a small fraction of the bill of materials of these products. The mobile electronic markets also feature shorter design and qualification cycles than electric vehicles. Customer demand within our initial target markets continues to be very high. At the end of Q3, the potential annual revenue of all programs, either in the active design or design win phase, reached $355 million. As a reminder, these are 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. In addition, our revenue funnel also includes $914 million of engaged opportunities, defined as a potential annual value of projects where the customer has decided our battery is a match for their product and is evaluating our technology. In total, the revenue funnel reached $1.27 billion at the end of the quarter. The speed by which we convert this funnel will be dictated by our ability to design, qualify, and ramp custom cells for multiple customers across our first two factories. As we prepare for commercial production in the next few months, we are scaling all aspects of the operations, including talent. With the money raised from our business combination and pipe, our financial position is strong, and we are well positioned to add capacity and scale up operations. We are on track to generate first commercial revenue in 2022, the next step in our long-term financial plan to achieve over $1 billion of annualized revenue exiting 2025. Let me now turn the call over to Stephan, our CFO, who will discuss our financial results. Stephan?