Navitas Semiconductor Corp annual report, FY2020

Filing identity and reporting period

Important issuer mismatch: The supplied filing is Live Oak Acquisition Corp. II’s Form 10-K, not a Navitas Semiconductor Corp. filing. It covers the period from incorporation on August 12, 2020 through December 31, 2020; it does not provide a standalone fourth-quarter comparison. Live Oak was a newly formed SPAC seeking an initial business combination, not an operating semiconductor company.

Financial results and position

MetricReported amount or status
Operating revenueNone; the company had not begun operating and expected no operating revenue before a business combination.
Operating expenses$137,268 in general and administrative expenses.
Net loss$118,337 for the inception-to-year-end period, including $18,931 of interest income.
Cash flow from operations$(159,974).
Cash and investments in trust$253,018,241 at December 31, 2020, including $253,017,318 in U.S. Treasury securities and $923 in cash.
Cash outside trust$1,896,170.
Total assets$255,028,278.
Total liabilities$8,185,952, including $8,067,500 of deferred underwriting fees payable upon a completed business combination.
Redeemable shares24,184,232 Class A shares classified as temporary equity, valued at $241,842,320.
Debt and liquidityNo long-term debt or outstanding working-capital loans reported at year-end. Cash outside the trust was designated principally for target search and transaction costs.

Changes versus prior period

No prior-year comparable results are provided: the company was formed in August 2020 and completed its IPO in December. It sold 25.3 million units at $10 each, raising $253 million gross, and placed $253 million in trust. Offering and transaction costs totaled $13.06 million, including upfront and deferred underwriting fees.

Outlook, risks and unusual items

  • The company had until December 7, 2022 to complete a business combination; otherwise it was required to wind up and redeem public shares. Warrants would expire worthless if no transaction closed.
  • Management described a target profile generally involving enterprise values of $500 million to $1.5 billion. The company could use trust cash, equity, debt, or additional financing; no third-party financing arrangement was in place.
  • Redemptions could materially reduce funds available for a transaction. A business combination required at least $5,000,001 in net tangible assets after redemptions and satisfaction of applicable NYSE requirements.
  • The filing identifies COVID-19 as a potential adverse factor, but says the specific impact was not readily determinable. Other stated risks include target competition, conflicts of interest, limited operating history, and creditor claims against trust assets.
  • The risk-factor summary says the auditor’s report contains a going-concern explanatory paragraph. The audit-report text included in the supplied filing extract does not clearly show that paragraph; verify against the filed report.
  • The MD&A says private-placement warrants were sold for $1.00 each, while other sections report $1.50 each. The financial statements and transaction disclosures report $1.50; verify the inconsistency.
  • The disclosure-controls conclusion appears as “effective/not effective” in the supplied text, so the filing extract does not provide a clear conclusion.

Key facts for investors to verify

  • Confirm the issuer and filing: this document is for Live Oak Acquisition Corp. II, not Navitas Semiconductor Corp.
  • Check the original SEC filing for the auditor’s going-concern language and the disclosure-controls conclusion.
  • Reconcile the private-placement warrant price discrepancy and confirm the reported IPO, trust, and deferred-fee amounts.
  • Review the SPAC’s redemption, liquidation, sponsor-indemnity, and warrant terms, including the December 7, 2022 deadline.