Enovix Corporation

Thank you for standing by and welcome to Inovix Corporation's fourth quarter and full year 2021 earnings conference call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. As a reminder, today's program will be recorded. It is now my pleasure 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 fourth quarter and full year 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 you that we released our Q4 and full year 2021 shareholder letter after the market closed today. It's available on our website at ir.anovix.com. A replay of this conference call will be available later today on the investor relations page of our website. Please note that the 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 based on current expectations and may differ materially from actual future events or results due to a variety of factors. For a discussion of factors that could affect our future financial results in business, please refer to the disclosure in today's shareholder letter and our filings with the Securities and Exchange Commission. All our statements are made as of today, March 3, 2022, based on the information currently available to us. We 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 except as required by law. During this call, we will also discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. you can find a reconciliation of these non-GAAP financial measures to the GAAP financial measures in our shareholder letter, which is posted on the investor relations page of our website. I will now turn the call over to Harold to begin. Harold? Thank you, Charlie.

Good afternoon, everyone. We're looking forward to updating you on our progress today. We do so with a heavy heart, given the current situation in Ukraine. Our thoughts are with those affected by the ongoing conflict, including our employees from Ukraine and those with friends and family from the area. While Inovix does not currently have direct business ties to the region, today we are thinking of the people at Antonov Airlines, a Ukrainian airline who helped us deliver critical factory equipment from Asia to San Francisco in the spring of 2021 to mitigate supply chain disruptions. Without this hardworking crew from Ukraine, we would not be where we are today. We remain grateful for their assistance, and our thoughts are with them, their families, and their loved ones during this difficult time. 2021 was quite the year for Inovix, one that validated the technical and commercialization strategy we have pursued since our founding. We enter 2022 with ever-increasing demand for our batteries, which we believe offers the highest energy density for the mobile computing market. And most importantly, we are on track to begin commercializing in the coming months. Our shareholder letter posted on our website details our accomplishments in 2021 and our focus for 2022. Let me call out some of the highlights here, then Stephan will do a review of the financials. After that, we'll take your questions. In January, we began shipping production qualification samples from our automated production line at Fab One in Fremont to customers. By doing so, we continue to expect recognizing first product revenue in the second quarter of 2022. Hitting this significant milestone will distinguish us from competitors who claim technology breakthroughs but are years away from commercialization I want to thank our entire team and especially our operations group for bringing up our first line at Fab 1. It was by no means an easy task. Indications of demand for our battery remain well above what we can supply for several years. Our revenue funnel increased by roughly $200 million sequentially in Q4 2021 to $1.5 billion. End markets and applications continue to be broad-based, but we would highlight incremental contribution to the revenue funnel from new industrial applications and new engagements in Asia as a result of additional resources we are devoting to the region. The speed by which we can capture this demand comes down to how fast we can qualify customers, improve our manufacturing process, and bring on capacity. We have generated a tremendous amount of learning from bringing up our initial production line, and immediately fed this into designs for our next generation equipment. These designs will enable lines that are faster, smaller, more energy efficient, and ultimately lower cost. First, in response to increased customer engagement and demand for custom cell designs, we will soon order a next generation pilot line based on these learnings in order to speed customer qualification. Second, we also plan to order in the coming months the first of our next-generation production lines based on these same learnings. This line will allow us to bring additional capacity online for revenue by the middle of 2023. It has long been our view that the proper time to scale up is when we have optimized our manufacturing process and believe our next-gen lines give us the best opportunity to do just that. Our shareholder letter also details important third-party validation. Notably, we were an Innovation Award honoree at the Consumer Electronics Show in January, quite an achievement considering the 1,800 products evaluated by an elite panel of judges. We further strengthened our balance sheet with the redemption of our outstanding public warrants, which has added another $130 million. I'm pleased to announce two recent data points that demonstrate our progress in commercializing our battery for the electric vehicle or EV market. Today, we are announcing the addition of Patrick Donnelly as Vice President of Strategic Business Development, focused on EVs. Pat joins us from Samsung SDI, where he led a commercial team that secured several multibillion-dollar contracts for lithium-ion batteries with both established auto OEMs and emerging EV OEMs. Also, today in our shareholder letter, we are showing updated progress on our Department of Energy program to demonstrate our 3D architecture and 100% active silicon anode with an EV class NMC cathode. As many of you know, low cycle life is one of the killer problems that has held back the adoption of 100% active silicon anodes. We believe the Inovix 3D architecture uniquely solved this problem, and we are happy to report that these cells are approaching 800 cycles and only have lost 4 percent of their capacity. These are very encouraging and exciting results, and we look forward to updating you as they progress. Please be sure to read our shareholder letter for more details on these significant achievements. Now, I will turn the call over to our CFO, Stephan, who will discuss our financials. Stephan?