0001628280-23-016122 | 10-Q | XBRL Viewer

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 293,751	$ 322,851
Accounts receivable, net	21	170
Inventory	815	634
Deferred contract costs	800	800
Prepaid expenses and other current assets	5,857	5,193
Total current assets	301,244	329,648
Property and equipment, net	102,275	103,868
Operating lease, right-of-use assets	6,205	6,133
Other assets, non-current	881	937
Total assets	410,605	440,586
Current liabilities:
Accounts payable	4,751	7,077
Accrued expenses	8,685	7,089
Accrued compensation	10,400	8,097
Deferred revenue	350	50
Other liabilities	916	716
Total current liabilities	25,102	23,029
Warrant liability	61,920	49,080
Operating lease liabilities, non-current	8,010	8,234
Deferred revenue, non-current	3,424	3,724
Other liabilities, non-current	38	92
Total liabilities	98,494	84,159
Commitments and Contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 158,089,463 and 157,461,802 as of April 2, 2023 and January 1, 2023, respectively	16	15
Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of April 2, 2023 and January 1, 2023, respectively	0	0
Additional paid-in-capital	770,472	741,186
Accumulated deficit	(458,377)	(384,774)
Total stockholders’ equity	312,111	356,427
Total liabilities and stockholders’ equity	$ 410,605	$ 440,586

Fair Value Measurement - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Money Market Funds
Assets:
Money Market Funds		$ 319,946
Private Placement Warrants
Liabilities:
Warrant liability	$ 61,920	49,080
Level 1 \| Money Market Funds
Assets:
Money Market Funds		319,946
Level 1 \| Private Placement Warrants
Liabilities:
Warrant liability	0	0
Level 2 \| Money Market Funds
Assets:
Money Market Funds		0
Level 2 \| Private Placement Warrants
Liabilities:
Warrant liability	0	0
Level 3 \| Money Market Funds
Assets:
Money Market Funds		0
Level 3 \| Private Placement Warrants
Liabilities:
Warrant liability	$ 61,920	$ 49,080

Leases - Summary of Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Leases [Abstract]
Operating lease cost	$ 411	$ 420

Net Income (Loss) per Share - Summary Of Potentially Dilutive Securities Excluded From Computation of Diluted Net Loss Per Share (Details) - shares	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Stock options outstanding
Subsidiary Sale Of Stock [Line Items]
Anti-dilutive securities (in shares)	4,608,824	5,536,905
Restricted stock units and performance restricted stock units outstanding
Subsidiary Sale Of Stock [Line Items]
Anti-dilutive securities (in shares)	9,821,622	917,079
Private Placement Warrants outstanding
Subsidiary Sale Of Stock [Line Items]
Anti-dilutive securities (in shares)	6,000,000	0
Employee stock purchase plan estimated shares
Subsidiary Sale Of Stock [Line Items]
Anti-dilutive securities (in shares)	349,988	78,198

Net Income (Loss) per Share - Reconciliation of Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Numerator:
Net income (loss) attributable to common stockholders - basic	$ (73,603)	$ 42,707
Decrease in fair value of Private Placement Warrants	0	(67,800)
Net loss attributable to common stockholders - diluted	$ (73,603)	$ (25,093)
Denominator:
Weighted-average shares outstanding used in computing net loss per share of common stock, basic (in shares)	155,626,977	151,648,439
Dilutive effect of Private Placement Warrants (in shares)	0	1,690,023
Weighted-average shares outstanding used in computing net loss per share of common stock, diluted (in shares)	155,626,977	153,338,462
Net income (loss) per share of common stock:
Basic (in dollars per share)	$ (0.47)	$ 0.28
Diluted (in dollars per share)	$ (0.47)	$ (0.16)

Cover - shares	3 Months Ended
Cover - shares	Apr. 02, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2023
Document Transition Report	false
Entity Registrant Name	Enovix Corporation
Entity Incorporation, State or Country Code	DE
Entity File Number	001-39753
Entity Tax Identification Number	85-3174357
Entity Address, Address Line One	3501 W Warren Avenue
Entity Address, City or Town	Fremont
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94538
City Area Code	510
Local Phone Number	695-2350
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	ENVX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		158,160,110
Entity Central Index Key	0001828318
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Income Statement [Abstract]
Revenue	$ 21	$ 0
Cost of revenue	12,248	515
Gross margin	(12,227)	(515)
Operating expenses:
Research and development	23,749	12,731
Selling, general and administrative	27,274	11,869
Total operating expenses	51,023	24,600
Loss from operations	(63,250)	(25,115)
Other income (expense):
Change in fair value of convertible preferred stock warrants and common stock warrants	(12,840)	67,800
Interest income, net	2,466	24
Other income (expense), net	21	(2)
Total other income (expense), net	(10,353)	67,822
Net income (loss) and comprehensive income (loss)	$ (73,603)	$ 42,707
Net income (loss) per share, basic (in dollars per share)	$ (0.47)	$ 0.28
Weighted average number of common shares outstanding, basic (in shares)	155,626,977	151,648,439
Net loss per share, diluted (in dollars per share)	$ (0.47)	$ (0.16)
Weighted average number of common shares outstanding, diluted (in shares)	155,626,977	153,338,462

Fair Value Measurement - Additional Information (Details) - Private Placement Warrants - $ / shares	Apr. 02, 2023	Jan. 01, 2023	Dec. 05, 2021	Jul. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants outstanding (in shares)	6,000,000	6,000,000		6,000,000
Exercise price of warrants (in dollars per share)			$ 11.50
Level 3 \| Fair Value, Nonrecurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants outstanding (in shares)	6,000,000
Fair value of warrant per share (in dollars per share)	$ 10.32
Exercise price of warrants (in dollars per share)	$ 11.50

Leases - Schedule of Maturity of Lease Liabilities (Details) $ in Thousands	Apr. 02, 2023 USD ($)
Operating lease
2023 (remaining nine months)	$ 1,059
2024	1,449
2025	1,492
2026	1,491
2027	1,513
Thereafter	4,262
Total	11,266
Less: imputed interest	(2,396)
Present value of lease liabilities	$ 8,870

Warrants	3 Months Ended
Warrants	Apr. 02, 2023
Other Liabilities Disclosure [Abstract]
Warrants	Warrants Common Stock Warrants On July 14, 2021, Enovix Corporation, a Delaware Corporation, Rodgers Silicon Valley Acquisition Corp. (“RSVAC”), and RSVAC Merger Sub Inc., a Delaware Corporation and wholly owned subsidiary of RSVAC, consummated the closing of the transactions contemplated by the Agreement and Plan of Merger, dated February 22, 2021 (the “Business Combination”). In connection with the Business Combination in July 2021, the Company assumed 17,500,000 common stock warrants outstanding, which consisted of 11,500,000 warrants held by third-party investors (the “Public Warrants”) and 6,000,000 Private Placement Warrants. The Public Warrants met the criteria for equity classification and the Private Placement Warrants are classified as liability. In 2022, the Public Warrants were either exercised or redeemed. As of April 2, 2023 and January 1, 2023, there were no Public Warrants outstanding. Private Placement Warrants The 6,000,000 Private Placement Warrants were originally issued in a private placement to the initial stockholder of the Sponsor in connection with the initial public offering of RSVAC. Each whole Private Placement Warrant became exercisable for one whole share of the Company's common stock at a price of $11.50 per share on December 5, 2021. As of April 2, 2023 and January 1, 2023, the Company had 6,000,000 Private Placement Warrants outstanding. See Note 3 “Fair Value Measurement” for more information.

Lease (Tables)

3 Months Ended

Apr. 02, 2023

Leases [Abstract]

Summary of Lease Cost and Supplemental Lease and Cash Flow Information

The components of lease costs were as follows (in thousands):


	Quarters Ended
	April 2, 2023		April 3, 2022
Operating lease cost	$	411	$	420

Supplemental lease information:

As of

Operating leases

April 2, 2023

January 1, 2023

Weighted-average remaining lease term

7.4 years

7.7 years

Weighted-average discount rate

6.8%

Supplemental cash flow information related to leases are as follows (in thousands):


	Quarters Ended
	April 2, 2023		April 3, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	346	$	336

Schedule of Maturity of Lease Liabilities

The following is a schedule of maturities of lease liabilities as of April 2, 2023 (in thousands).


	Operating lease
2023 (remaining nine months)	$	1,059
2024	1,449
2025	1,492
2026	1,491
2027	1,513
Thereafter	4,262
Total	11,266
Less: imputed interest	(2,396)
Present value of lease liabilities	$	8,870

Inventory (Tables)

3 Months Ended

Apr. 02, 2023

Inventory Disclosure [Abstract]

Components of Inventory

Inventory consists of the following components (in thousands).


	April 2, 2023		January 1, 2023
Raw materials	$	702	$	481
Work-in-process	70		106
Finished goods	43		47
Total inventory	$	815	$	634

Warrants (Details) - $ / shares	Apr. 02, 2023	Jan. 01, 2023	Dec. 05, 2021	Jul. 31, 2021
Common Stock Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)				17,500,000
Public Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	0	0		11,500,000
Private Placement Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	6,000,000	6,000,000		6,000,000
Exercise price of warrants (in dollars per share)			$ 11.50
Each whole private placement warrant became exercisable for Number of whole shares (in shares)			1

Stock-based Compensation

3 Months Ended

Apr. 02, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation

The Company issues equity awards to employees and non-employees in the form of stock options, restricted stock units (“RSUs”) and performance based RSUs (“PRSUs”). Additionally, the Company also offers an employee stock purchase plan (“ESPP”) to its eligible employees. The Company uses Black-Scholes option pricing model to value its stock options granted and the estimated shares to be purchased under the ESPP. For both RSUs and PRSUs, the Company uses its common stock price, which is the last reported sales price on the grant date to value those securities.

In general, the Company recognizes its stock-based compensation expense on a straight-line basis over the requisite service period and records forfeitures as they occur. For PRSUs, the Company uses the graded vesting method to calculate

the stock-based compensation expense. At each reporting period, the Company would recognize and adjust the stock-based compensation expense based on its probability assessment in meeting its PRSUs' performance conditions.

Stock-based Compensation Expense

The following table summarizes the total stock-based compensation expense, by operating expense category, recognized in the Condensed Consolidated Statements of Operations for the periods presented below (in thousands).


	Quarters Ended
	April 2, 2023		April 3, 2022
Cost of revenue	$	951	$	—
Research and development	11,667		2,512
Selling, general and administrative	16,539		2,726
Total stock-based compensation expense	$	29,157	$	5,238

For the quarter ended April 2, 2023, the Company capitalized $0.6 million of stock-based compensation as property and equipment, net in the Condensed Consolidated Balance Sheet. For the quarter ended April 3, 2022, the Company capitalized an immaterial amount of stock-based compensation as deferred contract costs, inventory and property and equipment, net in the Condensed Consolidated Balance Sheet. There was no recognized tax benefit related to stock-based compensation for the periods presented. In addition, the Company accrued $0.1 million of bonus to be settled in equity awards as accrued compensation on the Condensed Consolidated Balance Sheet as of April 2, 2023.

As of April 2, 2023, there was approximately $116.8 million of total unrecognized stock-based compensation expense related to unvested equity awards, which are expected to be recognized over a weighted-average period of 3.8 years. As of April 2, 2023, there was approximately $0.6 million of total unrecognized stock-based compensation related to the ESPP, which is expected to be recognized over a period of 1.1 years.

Equity Award Modification

During the quarter ended April 2, 2023, in connection with the retirement or resignation of several of the Company's management team members, including the Company's former Chief Executive Officer, the Company evaluated the change in employment status in accordance with ASC 718 Compensation - Stock Compensation. The Company concluded that the change in status impacted the vesting conditions as the term of equity award exercise period was extended and certain of the equity awards were accelerated and vested immediately. The Company recognized $21.1 million stock-based compensation expense related to the modifications for the quarter ended April 2, 2023.

Stock Option Activity

The following table summarized stock option activities for the fiscal quarter ended April 2, 2023 (in thousands, except share and per share amount).


	Number of Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1) (2)
Balances as of January 1, 2023	5,034,282	$	9.07

Exercised	(86,654)	3.79			$	845
Forfeited	(338,804)	9.79
Balances as of April 2, 2023	4,608,824	$	9.12	8.0	$	27,382


(1)			The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise.
(2)			The aggregate intrinsic value of the stock options outstanding as of April 2, 2023 represents the value of the Company’s closing stock price at $14.91 on April 2, 2023 in excess of the exercise price multiplied by the number of options outstanding.

Unvested early exercised stock options which are subject to repurchase by the Company are not considered participating securities as those shares do not have non-forfeitable rights to dividends or dividend equivalents. Unvested early exercised stock options are not considered outstanding for purposes of the weighted average outstanding share calculation until they vest.

As of April 2, 2023, 1,461,128 shares remained subject to the Company’s right of repurchase as a result of early exercised stock options. The remaining liability related to early exercised shares as of April 2, 2023 was $0.1 million and was recorded in other current and non-current liabilities in the Condensed Consolidated Balance Sheets.

Restricted Stock Unit and Performance Restricted Stock Unit Activities

The following table summarized RSUs and PRSUs activities for the fiscal quarter ended April 2, 2023 (in thousands, except share and per share amount).


	RSUs			PRSUs
	Number of Shares Outstanding	Weighted Average Grant Date Fair Value		Number of Shares Outstanding	Weighted Average Grant Date Fair Value
Issued and unvested shares balances as of January 1, 2023	5,910,097	$	14.11	1,461,061	$	13.41
Granted	4,640,958	8.37		—	—
Vested	(606,139)	13.10		(166,716)	13.41
Forfeited	(257,662)	13.16		(1,159,977)	13.41
Issued and unvested shares outstanding as of April 2, 2023	9,687,254	$	11.44	134,368	$	13.41

Net Income (Loss) per Share

3 Months Ended

Apr. 02, 2023

Earnings Per Share [Abstract]

Net Income (Loss) per Share

The Company computes net earnings per share (“EPS”) of common stock using the two-class method. Basic EPS is computed using net income (loss) divided by the weighted-average number of common stock shares outstanding. Diluted EPS is computed using net income (loss) with an adjustment of changes in fair value of the Private Placement Warrants recorded in earnings divided by the total of weighted-average number of common stock shares outstanding and any dilutive potential common stock shares outstanding. Dilutive potential common stock shares included the assumed stock options exercises, vesting and issuance activities of restricted stock units and estimated common stock issuance under the employee stock purchase plan.

The following table sets forth the computation of the Company’s basic and diluted net EPS of common stock for the periods presented below (in thousands, except share and per share amount).


	Quarters Ended
	April 2, 2023		April 3, 2022

Numerator:
Net income (loss) attributable to common stockholders - basic	$	(73,603)	$	42,707
Decrease in fair value of Private Placement Warrants	—		(67,800)
Net loss attributable to common stockholders - diluted	$	(73,603)	$	(25,093)

Denominator:
Weighted-average shares outstanding used in computing net loss per share of common stock, basic	155,626,977		151,648,439
Dilutive effect of Private Placement Warrants	—		1,690,023
Weighted-average shares outstanding used in computing net loss per share of common stock, diluted	155,626,977		153,338,462

Net income (loss) per share of common stock:
Basic	$	(0.47)	$	0.28
Diluted	$	(0.47)	$	(0.16)

As the Company reported net loss for the periods presented above, these potentially dilutive securities were anti-dilutive and are excluded in the computation of diluted net loss per share. The following table discloses shares of the securities that were not included in the diluted EPS calculation above because they are anti-dilutive for the periods presented above.


	Quarters Ended
	April 2, 2023	April 3, 2022
Stock options outstanding	4,608,824	5,536,905
Restricted stock units and performance restricted stock units outstanding	9,821,622	917,079
Private Placement Warrants outstanding	6,000,000	—

Employee stock purchase plan estimated shares	349,988	78,198

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Apr. 02, 2023	Apr. 03, 2022
Statement of Cash Flows [Abstract]
Cash and cash equivalents	$ 293,751	$ 408,178
Restricted cash included in prepaid expenses and other current assets	125	125
Total cash, cash equivalents, and restricted cash	$ 293,876	$ 408,303

Fair Value Measurement - Schedule of Changes in Fair Value for Level 3 (Details) - Private Placement Warrants - Level 3 - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Warrant liabilities at beginning of period	$ 49,080	$ 124,260
Change in fair value	12,840	(67,800)
Warrant liabilities at end of period	$ 61,920	$ 56,460

Property and Equipment - Summary of Depreciation Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 3,455	$ 314

Leases - Additional Information (Details)	Mar. 31, 2021
Leases [Abstract]
Option to extend, term	5 years

Fair Value Measurement

3 Months Ended

Apr. 02, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement

The fair value of the Company’s financial assets and liabilities are determined in accordance with the fair value hierarchy established in Accounting Standards Codification (“ASC”) 820, Fair Value Measurements, issued by the Financial Accounting Standards Board. The fair value hierarchy of ASC 820 requires an entity to maximize the use of observable inputs when measuring fair value and classifies those inputs into three levels:


Level 1:			Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.
Level 2:			Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3:			Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company's financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and the warrant liabilities. Cash and cash equivalents are reported at their respective fair values on the Company's Condensed Consolidated Balance Sheets. The following table details the fair value measurements of assets and liabilities that were measured at fair value on a recurring basis based on the following three-tiered fair value hierarchy per ASC 820, Fair Value Measurement, as of April 2, 2023 and January 1, 2023 (in thousands).


	Fair Value Measurement using
	Level 1		Level 2		Level 3		Total Fair Value
As of April 2, 2023


Liabilities:
Private Placement Warrants	$	—	$	—	$	61,920	$	61,920

As of January 1, 2023
Assets:
Money Market Funds	$	319,946	$	—	$	—	$	319,946
Liabilities:
Private Placement Warrants	$	—	$	—	$	49,080	$	49,080

The Company’s liabilities are measured at fair value on a non-recurring basis, including 6,000,000 warrants that were held by Rodgers Capital, LLC (the “Sponsor”) and certain of its members (the “Private Placement Warrants”). The fair value of the Private Placement Warrants is considered a Level 3 valuation and is determined using the Black-Scholes valuation model. As of April 2, 2023, the fair value of the Private Placement Warrants was $10.32 per share with an exercise price of $11.50 per share. The following tables summarize the changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs (in thousands).


	Private Placement Warrants
Fair value as of January 1, 2023	$	49,080


Change in fair value	12,840
Fair value as of April 2, 2023	$	61,920


	Private Placement Warrants
Fair value as of January 2, 2022	$	124,260


Change in fair value	(67,800)
Fair value as of April 3, 2022	$	56,460

The following table summarizes the key assumptions used for determining the fair value of the Private Placement warrants.


	Private Placement Warrants Outstanding as of April 2, 2023	Private Placement Warrants Outstanding as of January 1, 2023
Expected term (in years)	3.3	3.5
Expected volatility	97.5%	92.5%
Risk-free interest rate	3.8%	4.2%
Expected dividend rate	0.0%	0.0%

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Subsequent Events (Details) - USD ($)	Apr. 20, 2023	Apr. 17, 2023	Apr. 02, 2023
Subsequent Event [Line Items]
Share price (in dollars per share)			$ 14.91
Subsequent Event \| Common Stock
Subsequent Event [Line Items]
Share price (in dollars per share)		$ 13.57
Subsequent Event \| Capped Call Transaction
Subsequent Event [Line Items]
Cap price (in dollars per share)	21.17
Subsequent Event \| Capped Call Transaction \| Common Stock
Subsequent Event [Line Items]
Cap price premium percentage over shar price	56.00%
Convertible Debt \| 3.0 % Convertible Senior Notes \| Subsequent Event
Subsequent Event [Line Items]
Principal balance	$ 172,500,000
Interest rate	3.00%
Net proceeds from the offerings	$ 165,700,000
Percentage of net proceeds from the Offerings to pay the cost of the capped call transactions	10.00%
Convertible Debt \| Purchase Option \| Subsequent Event
Subsequent Event [Line Items]
Principal balance	$ 22,500,000
Convertible Debt \| Affiliate Notes \| Subsequent Event
Subsequent Event [Line Items]
Principal balance	$ 10,000,000

Stock-based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2023 USD ($) $ / shares shares
Number of Options Outstanding
Beginning balance (in shares) \| shares	5,034,282
Exercised (in shares) \| shares	(86,654)
Forfeited (in shares) \| shares	(338,804)
Ending balance (in shares) \| shares	4,608,824
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 9.07
Exercised (in dollars per share)	3.79
Forfeited (in dollars per share)	9.79
Ending balance (in dollars per share)	$ 9.12
Weighted Average Remaining Contractual Life (Years)
Outstanding balance	8 years
Aggregate Intrinsic Value
Exercised \| $	$ 845
Outstanding, balance \| $	$ 27,382
Share price (in dollars per share)	$ 14.91

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Jan. 02, 2022		152,272,287
Beginning balance at Jan. 02, 2022	$ 326,117	$ 15	$ 659,254	$ (333,152)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		91,910
Issuance of common stock upon exercise of stock options	200		200
Issuance of common stock upon exercise of common stock warrants (in shares)		4,126,466
Issuance of common stock upon exercise of common stock warrants	47,452		47,452
Early exercised stock option vested	42		42
RSUs vested (in shares)		34,941
Repurchase of unvested restricted common stock (in shares)		(105,886)
Stock-based compensation	4,536		4,536
Net (loss) income	42,707			42,707
Ending balance (in shares) at Apr. 03, 2022		156,419,718
Ending balance at Apr. 03, 2022	421,054	$ 15	711,484	(290,445)
Beginning balance (in shares) at Jan. 01, 2023		157,461,802
Beginning balance at Jan. 01, 2023	$ 356,427	$ 15	741,186	(384,774)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	86,654	86,654
Issuance of common stock upon exercise of stock options	$ 328		328
Early exercised stock option vested	83	$ 1	82
RSUs vested, net of shares withheld for taxes (in shares)		679,606
RSUs vested, net of shares withheld for taxes	(777)		(777)
Repurchase of unvested restricted common stock (in shares)		(138,599)
Stock-based compensation	29,653		29,653
Net (loss) income	(73,603)			(73,603)
Ending balance (in shares) at Apr. 02, 2023		158,089,463
Ending balance at Apr. 02, 2023	$ 312,111	$ 16	$ 770,472	$ (458,377)

Fair Value Measurement (Tables)

3 Months Ended

Apr. 02, 2023

Fair Value Disclosures [Abstract]

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table details the fair value measurements of assets and liabilities that were measured at fair value on a recurring basis based on the following three-tiered fair value hierarchy per ASC 820, Fair Value Measurement, as of April 2, 2023 and January 1, 2023 (in thousands).


	Fair Value Measurement using
	Level 1		Level 2		Level 3		Total Fair Value
As of April 2, 2023


Liabilities:
Private Placement Warrants	$	—	$	—	$	61,920	$	61,920

As of January 1, 2023
Assets:
Money Market Funds	$	319,946	$	—	$	—	$	319,946
Liabilities:
Private Placement Warrants	$	—	$	—	$	49,080	$	49,080

Schedule of Changes in Fair Value for Level 3

The following tables summarize the changes for Level 3 items measured at fair value on a recurring basis using significant unobservable inputs (in thousands).


	Private Placement Warrants
Fair value as of January 1, 2023	$	49,080


Change in fair value	12,840
Fair value as of April 2, 2023	$	61,920


	Private Placement Warrants
Fair value as of January 2, 2022	$	124,260


Change in fair value	(67,800)
Fair value as of April 3, 2022	$	56,460

Schedule of Key Assumptions for Determining Fair Value of Convertible Preferred Stock Warrants and Common Stock Warrants

The following table summarizes the key assumptions used for determining the fair value of the Private Placement warrants.


	Private Placement Warrants Outstanding as of April 2, 2023	Private Placement Warrants Outstanding as of January 1, 2023
Expected term (in years)	3.3	3.5
Expected volatility	97.5%	92.5%
Risk-free interest rate	3.8%	4.2%
Expected dividend rate	0.0%	0.0%

Leases

3 Months Ended

Apr. 02, 2023

Leases [Abstract]

Leases

The Company leases its headquarters, engineering and manufacturing space in Fremont, California under a single non-cancelable operating lease, right of use asset with an expiration date of August 31, 2030. In March 2021, the Company entered into a new agreement to lease office space in Fremont, California under a non-cancelable operating lease that expires in April 2026 with an option to extend for five years.

The components of lease costs were as follows (in thousands):


	Quarters Ended
	April 2, 2023		April 3, 2022
Operating lease cost	$	411	$	420

Supplemental lease information:

As of

Operating leases

April 2, 2023

January 1, 2023

Weighted-average remaining lease term

7.4 years

7.7 years

Weighted-average discount rate

6.8%

Supplemental cash flow information related to leases are as follows (in thousands):


	Quarters Ended
	April 2, 2023		April 3, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	346	$	336

Maturities of Lease Liabilities

The following is a schedule of maturities of lease liabilities as of April 2, 2023 (in thousands).


	Operating lease
2023 (remaining nine months)	$	1,059
2024	1,449
2025	1,492
2026	1,491
2027	1,513
Thereafter	4,262
Total	11,266
Less: imputed interest	(2,396)
Present value of lease liabilities	$	8,870

Net Income (Loss) per Share (Tables)

3 Months Ended

Apr. 02, 2023

Earnings Per Share [Abstract]

Computation of Basic and Dilute Net EPS

The following table sets forth the computation of the Company’s basic and diluted net EPS of common stock for the periods presented below (in thousands, except share and per share amount).


	Quarters Ended
	April 2, 2023		April 3, 2022

Numerator:
Net income (loss) attributable to common stockholders - basic	$	(73,603)	$	42,707
Decrease in fair value of Private Placement Warrants	—		(67,800)
Net loss attributable to common stockholders - diluted	$	(73,603)	$	(25,093)

Denominator:
Weighted-average shares outstanding used in computing net loss per share of common stock, basic	155,626,977		151,648,439
Dilutive effect of Private Placement Warrants	—		1,690,023
Weighted-average shares outstanding used in computing net loss per share of common stock, diluted	155,626,977		153,338,462

Net income (loss) per share of common stock:
Basic	$	(0.47)	$	0.28
Diluted	$	(0.47)	$	(0.16)

Schedule of Anti-Dilutive Securities Excluded From Computation of Diluted Loss Per Share


	Quarters Ended
	April 2, 2023	April 3, 2022
Stock options outstanding	4,608,824	5,536,905
Restricted stock units and performance restricted stock units outstanding	9,821,622	917,079
Private Placement Warrants outstanding	6,000,000	—

Employee stock purchase plan estimated shares	349,988	78,198

Stock-based Compensation - RSUs and PRSUs Activity (Details)	3 Months Ended
	Apr. 02, 2023 $ / shares shares
RSUs
Number of Shares Outstanding
Issued and unvested shares beginning balances (in shares) \| shares	5,910,097
Granted (in shares) \| shares	4,640,958
Vested (in shares) \| shares	(606,139)
Forfeited (in shares) \| shares	(257,662)
Issued and unvested shares outstanding ending balance (in shares) \| shares	9,687,254
Weighted Average Grant Date Fair Value
Issued and unvested shares beginning balances (in dollars per share) \| $ / shares	$ 14.11
Granted (in dollars per share) \| $ / shares	8.37
Vested (in dollars per share) \| $ / shares	13.10
Forfeited (in dollars per share) \| $ / shares	13.16
Issued and unvested shares outstanding ending balance (in dollars per share) \| $ / shares	$ 11.44
PRSUs
Number of Shares Outstanding
Issued and unvested shares beginning balances (in shares) \| shares	1,461,061
Granted (in shares) \| shares	0
Vested (in shares) \| shares	(166,716)
Forfeited (in shares) \| shares	(1,159,977)
Issued and unvested shares outstanding ending balance (in shares) \| shares	134,368
Weighted Average Grant Date Fair Value
Issued and unvested shares beginning balances (in dollars per share) \| $ / shares	$ 13.41
Granted (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	13.41
Forfeited (in dollars per share) \| $ / shares	13.41
Issued and unvested shares outstanding ending balance (in dollars per share) \| $ / shares	$ 13.41

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash flows from operating activities:
Net income (loss)	$ (73,603)	$ 42,707
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation	3,455	314
Amortization of right-of-use assets	143	134
Stock-based compensation	29,157	5,238
Changes in fair value of convertible preferred stock warrants and common stock warrants	12,840	(67,800)
Changes in operating assets and liabilities:
Accounts receivable	149	0
Inventory	(181)	0
Prepaid expenses and other assets	364	(51)
Deferred contract costs	0	8
Accounts payable	(1,792)	(959)
Accrued expenses and compensation	3,858	555
Other liabilities	(1)	165
Net cash used in operating activities	(25,611)	(19,689)
Cash flows from investing activities:
Purchase of property and equipment	(3,032)	(10,451)
Net cash used in investing activities	(3,032)	(10,451)
Cash flows from financing activities:
Proceeds from exercise of common stock warrants, net	0	52,828
Payroll tax payments for shares withheld upon vesting of RSUs	(777)	0
Proceeds from the exercise of stock options	329	200
Repurchase of unvested restricted common stock	(9)	(3)
Net cash provided by (used in) financing activities	(457)	53,025
Change in cash, cash equivalents, and restricted cash	(29,100)	22,885
Cash and cash equivalents and restricted cash, beginning of period	322,976	385,418
Cash and cash equivalents, and restricted cash, end of period	293,876	408,303
Supplemental cash flow data (Non-cash):
Purchase of property and equipment included in liabilities	$ 4,740	$ 1,510

Related Party (Details)	3 Months Ended
Related Party (Details)	Apr. 02, 2023 family_member
Chief Executive Officer
Related Party Transaction [Line Items]
Number of employed family members	2

Organization and Basis of Presentation	3 Months Ended
Organization and Basis of Presentation	Apr. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Organization Enovix Corporation (“Enovix” or the “Company”) was incorporated in Delaware in 2006. The Company designs, develops, manufactures and commercializes next generation Lithium-ion, or Li-ion, battery cells that significantly increase the amount of energy density and storage capacity relative to conventional battery cells. Our batteries’ mechanical design, or “architecture,” allows us to use high performance chemistries while enabling safety and charge time advantages. The Company is headquartered in Fremont, California. Prior to the second quarter of 2022, the Company was focused on the development and commercialization of its silicon-anode lithium-ion batteries. Beginning in the second quarter of 2022, the Company commenced its planned principal operations of commercial manufacturing and began its production of silicon-anode lithium-ion batteries or battery pack products, as well as generating product revenue in addition to service revenue from its engineering service contracts for the development of silicon-anode lithium-ion battery technology.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Apr. 02, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments As of April 2, 2023 and January 1, 2023, the Company’s commitments included approximately $81.9 million and $22.7 million, respectively, of the Company’s open purchase orders and contractual obligations that occurred in the ordinary course of business, including commitments with contract manufacturers and suppliers for which the Company has not received the goods or services, commitments for capital expenditures and construction-related activities for which the Company has not received the services. Although open purchase orders are considered enforceable and legally binding, the terms generally allow the Company the option to cancel, reschedule, and adjust its requirements based on its business needs prior to the delivery of goods or performance of services. For lease obligations, please refer to Note 6 “Leases” for more details. Performance Obligations As of April 2, 2023, the Company had $3.8 million of performance obligations, which comprised of total deferred revenue and customer order deposits. The Company currently expects to recognize approximately 9% of deferred revenue as revenue within the next twelve months. Litigation From time to time, the Company is involved in a variety of claims, lawsuits, investigations, and proceedings relating to securities laws, product liability, intellectual property, commercial, insurance, contract disputes, employment, and other matters. Certain of these lawsuits and claims are described in further detail below. The Company intends to defend vigorously against all of the following allegations. A liability and related charge to earnings are recorded in the condensed consolidated financial statements for legal contingencies when the loss is considered probable and the amount can be reasonably estimated. The assessment is re-evaluated each accounting period and is based on all available information, including the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to each case. The outcomes of outstanding legal matters are inherently unpredictable and subject to uncertainties. While there can be no assurance of favorable outcome of these legal matters, we currently believe that the outcome of these matters will not have a material adverse effect on the Company’s results of operations, liquidity or financial position. Sopheap Prak et al. v. Enovix Corporation et al., 22CV005846, Superior Court of California, Alameda County On January 21, 2022, two former machine operator employees filed a putative wage and hour class action lawsuit against Enovix and co-defendant Legendary Staffing, Inc. in the Superior Court of California, County of Alameda. The case is captioned Sopheak Prak & Ricardo Pimentel v Enovix Corporation and Legendary Staffing, Inc., 22CV005846. The Prak complaint alleges, among other things, on a putative class-wide basis, that the defendants failed to pay all overtime wages and committed meal period, rest period and wage statement violations under the California Labor Code and applicable Wage Orders. The plaintiffs are seeking unpaid wages, statutory penalties and interest and reasonable costs and attorney fees. In September 2022, the Company began the mediation process. Based on the current knowledge of the legal proceeding, an estimate of possible loss liability has been recorded on the Condensed Consolidated Balance Sheet as of April 2, 2023. Kody Walker v. Enovix Corporation, 23CV028923. Superior Court of California, Alameda County On March 8, 2023, a former employee filed a putative class action lawsuit against Enovix in the Superior Court of California, County of Alameda (the “Walker Complaint”). The Walker Complaint alleges, among other things, on a putative class-wide basis, that the Company failed to pay minimum wages, overtime and sick time wages, failed to reimburse employees for required expenses, failed to provide meal and rest periods and issued inaccurate wage statement under the California Labor Code and applicable Wage Orders. The Walker Complaint asserts on an individual basis that Walker was constructively discharged. The plaintiff seeks unpaid wages, statutory penalties and interest and reasonable costs and attorney fees. Securities Class Action Compliant On January 6, 2023, a purported Company stockholder filed a securities class action complaint in the U.S. District Court for the Northern District of California against the Company and certain of its current and former officers and directors. The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making material misstatements or omissions in public statements related to the Company’s manufacturing scaleup. The complaint seeks unspecified damages, interest, fees and costs on behalf of all persons and entities who purchased and/or acquired shares of the Company’s common stock between February 22, 2021 and January 3, 2023. A substantially identical complaint was filed on January 25, 2023 by another purported Company stockholder. Based on currently available information, the Company is unable to make a reasonable estimate of loss or range of losses, if any, arising from this matter. Guarantees and Indemnifications In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. The Company also has indemnification obligations to its officers and directors for specified events or occurrences, subject to some limits, while they are serving at the Company’s request in such capacities. The Company believes the fair value of these indemnification agreements is minimal. Accordingly, the Company has not recorded any liabilities relating to these obligations for the period presented.

Related Party	3 Months Ended
Related Party	Apr. 02, 2023
Related Party Transactions [Abstract]
Related Party	Related Party Employment Relationship The Company employs two family members of the Company’s former Chief Executive Officer, who perform engineering work in the Fremont facility.

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Apr. 02, 2023	Jan. 01, 2023
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	158,089,463	157,461,802
Common stock, shares outstanding (in shares)	158,089,463	157,461,802
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 117,746	$ 115,884
Less: accumulated depreciation	(15,471)	(12,016)
Property and equipment, net	102,275	103,868
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	64,588	55,694
Office equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,739	1,586
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	829	771
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	25,357	24,565
Construction in process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 25,233	$ 33,268

Commitments and Contingencies (Details) $ in Millions	Jan. 21, 2022 plaintiff	Apr. 02, 2023 USD ($)	Jan. 01, 2023 USD ($)
Loss Contingencies [Line Items]
Purchase commitments		$ 81.9	$ 22.7
Deferred revenue		$ 3.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-03
Loss Contingencies [Line Items]
Deferred revenue considered as revenue within next twelve months		9.00%
Expected timing of satisfaction, period		12 months
Sopheak Prak & Ricardo Pimentel v Enovix
Loss Contingencies [Line Items]
Number of plaintiffs \| plaintiff	2

Stock-based Compensation - Summary of Total Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 29,157	$ 5,238
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	951	0
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	11,667	2,512
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 16,539	$ 2,726

Stock-based Compensation (Tables)

3 Months Ended

Apr. 02, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Total Stock-based Compensation Expense, by Operating Expense Category


	Quarters Ended
	April 2, 2023		April 3, 2022
Cost of revenue	$	951	$	—
Research and development	11,667		2,512
Selling, general and administrative	16,539		2,726
Total stock-based compensation expense	$	29,157	$	5,238

Summary of Stock Option Activity

The following table summarized stock option activities for the fiscal quarter ended April 2, 2023 (in thousands, except share and per share amount).


	Number of Options Outstanding	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1) (2)
Balances as of January 1, 2023	5,034,282	$	9.07

Exercised	(86,654)	3.79			$	845
Forfeited	(338,804)	9.79
Balances as of April 2, 2023	4,608,824	$	9.12	8.0	$	27,382


(1)			The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise.
(2)			The aggregate intrinsic value of the stock options outstanding as of April 2, 2023 represents the value of the Company’s closing stock price at $14.91 on April 2, 2023 in excess of the exercise price multiplied by the number of options outstanding.

RSUs and PRSUs Activity

The following table summarized RSUs and PRSUs activities for the fiscal quarter ended April 2, 2023 (in thousands, except share and per share amount).


	RSUs			PRSUs
	Number of Shares Outstanding	Weighted Average Grant Date Fair Value		Number of Shares Outstanding	Weighted Average Grant Date Fair Value
Issued and unvested shares balances as of January 1, 2023	5,910,097	$	14.11	1,461,061	$	13.41
Granted	4,640,958	8.37		—	—
Vested	(606,139)	13.10		(166,716)	13.41
Forfeited	(257,662)	13.16		(1,159,977)	13.41
Issued and unvested shares outstanding as of April 2, 2023	9,687,254	$	11.44	134,368	$	13.41

Subsequent Events	3 Months Ended
Subsequent Events	Apr. 02, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Convertible Senior Notes On April 20, 2023, the Company issued $172.5 million aggregate principal amount of 3.0% convertible senior notes due 2028 (the “Convertible Senior Notes”), pursuant to an indenture, dated as of April 20, 2023 (the “Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). The offering and sale of the Convertible Senior Notes were made by the Company to the initial purchasers in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), for resale by the initial purchasers to qualified institutional buyers (as defined in the Securities Act) pursuant to the exemption from registration provided by Rule 144A under the Securities Act. The issuance includes the exercise in full by the initial purchasers of their option to purchase an additional $22.5 million aggregate principal amount of Convertible Senior Notes. $10.0 million principal amount of Convertible Senior Notes (the “Affiliate Notes”) were issued to an entity affiliated with Thurman John “T.J.” Rodgers, the Company’s Chairman (the “Affiliated Investor”), in a concurrent private placement. The Convertible Senior Notes are unsecured obligations of the Company and bear interest at a rate of 3.0% per year from April 20, 2023, and will be payable semiannually in arrears on May 1 and November 1 of each year, beginning on November 1, 2023. The Convertible Senior Notes and the Affiliated Notes will mature on May 1, 2028 unless earlier converted, redeemed or repurchased. The net proceeds from the offering are approximately $165.7 million. The Company used approximately 10% of the gross proceeds from the offering to pay the cost of the capped call transactions entered on April 20, 2023 in connection with the offering. The remaining net proceeds will be used to build out a second battery cell manufacturing facility and fund the acquisition of production lines of the Company’s second-generation manufacturing equipment, and for working capital and other general corporate purposes. Capped Call Transactions The capped call transactions are generally expected to reduce the potential dilution to the Company's common stock upon any conversion of the Convertible Senior Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted Convertible Senior Notes, as the case may be, with such reduction and/or offset subject to a cap based on a cap price initially equal to $21.17 per share (which represents a premium of 56.0% over the last reported sale price of the Company's common stock of $13.57 per share on The Nasdaq Global Select Market on April 17, 2023), and is subject to certain adjustments under the terms of the capped call transactions.

Property and Equipment

3 Months Ended

Apr. 02, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets. Property and equipment as of April 2, 2023 and January 1, 2023, consisted of the following (in thousands).


	April 2, 2023		January 1, 2023
Machinery and equipment	$	64,588	$	55,694
Office equipment and software	1,739		1,586
Furniture and fixtures	829		771
Leasehold improvements	25,357		24,565
Construction in process	25,233		33,268
Total property and equipment	117,746		115,884
Less: accumulated depreciation	(15,471)		(12,016)
Property and equipment, net	$	102,275	$	103,868

The following table summarizes the depreciation and amortization expenses related to property and equipment, which are recorded within cost of revenue, research and development expense and selling, general and administrative expense in the Condensed Consolidated Statements of Operations (in thousands).


	Quarters Ended
	April 2, 2023		April 3, 2022
Depreciation expense	$	3,455	$	314

Property and Equipment (Tables)

3 Months Ended

Apr. 02, 2023

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment and Depreciation Expense

Property and equipment as of April 2, 2023 and January 1, 2023, consisted of the following (in thousands).


	April 2, 2023		January 1, 2023
Machinery and equipment	$	64,588	$	55,694
Office equipment and software	1,739		1,586
Furniture and fixtures	829		771
Leasehold improvements	25,357		24,565
Construction in process	25,233		33,268
Total property and equipment	117,746		115,884
Less: accumulated depreciation	(15,471)		(12,016)
Property and equipment, net	$	102,275	$	103,868


	Quarters Ended
	April 2, 2023		April 3, 2022
Depreciation expense	$	3,455	$	314

Fair Value Measurement - Schedule of Key Assumptions for Determining Fair Value of Convertible Preferred Stock Warrants and Common Stock Warrants (Details) - Private Placement Warrants outstanding	Apr. 02, 2023	Jan. 01, 2023
Expected term (in years)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Public warrants expiration term	3 years 3 months 18 days	3 years 6 months
Expected volatility
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants, measurement input	0.975	0.925
Risk-free interest rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants, measurement input	0.038	0.042
Expected dividend rate
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Warrants, measurement input	0.0	0.0

Inventory (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 702	$ 481
Work-in-process	70	106
Finished goods	43	47
Total inventory	$ 815	$ 634

Leases - Supplemental Lease Information (Details)	Apr. 02, 2023	Jan. 01, 2023
Leases [Abstract]
Weighted-average remaining lease term	7 years 4 months 24 days	7 years 8 months 12 days
Weighted average discount rate (in percent)	6.80%	6.80%

Inventory

3 Months Ended

Apr. 02, 2023

Inventory Disclosure [Abstract]

Inventory

Inventory consists of the following components (in thousands).


	April 2, 2023		January 1, 2023
Raw materials	$	702	$	481
Work-in-process	70		106
Finished goods	43		47
Total inventory	$	815	$	634

Leases - Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 346	$ 336

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Apr. 02, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company did not have any other comprehensive income or loss for the periods presented. Accordingly, net income (loss) and comprehensive income (loss) are the same for the periods presented. Additionally, the Company did not have any income tax expenses for the periods presented. Liquidity and Capital Resources The Company has incurred operating losses and negative cash flows from operations since its inception through April 2, 2023 and expects to incur operating losses for the foreseeable future. As of April 2, 2023, the Company had a working capital of $276.1 million and an accumulated deficit of $458.4 million. In April 2023, we closed a $172.5 million convertible debenture to fund the Company’s second generation (“Gen 2”) production line (“Gen 2 Autoline”) 2, 3 and 4 in a second manufacturing facility (“Fab 2”) building in Malaysia. For the convertible debenture, please refer to Note 12 “Subsequent Events” for more details. Based on the anticipated spending, the Company currently expects that its cash will be sufficient to meet its funding requirements over the next twelve months. Going forward, the Company may require additional financing for its future operations and expansion. The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Unaudited Interim Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of April 2, 2023, the Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Changes in Shareholders’ equity and the Condensed Consolidated Statements of Cash Flows for the fiscal quarters ended April 2, 2023 and April 3, 2022 are unaudited. These accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, considered necessary to present fairly the Company’s financial condition, results of operations, stockholders’ equity and cash flows for the periods presented above. The results of operations for the fiscal quarter ended April 2, 2023 are not necessarily indicative of the operating results for the full year, and therefore should not be relied upon as an indicator of future results. The Condensed Consolidated Balance Sheet as of January 1, 2023 included herein was derived from the audited consolidated financial statements as of that date and the accompanying consolidated financial statements and related notes are included in the Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the condensed consolidated financial statements and accompanying notes during the reporting periods. Estimates and assumptions include but are not limited to: depreciable lives for property and equipment, the valuation allowance on deferred tax assets, assumptions used in stock-based compensation, incremental borrowing rate for operating right-of-use assets and lease liabilities, and estimates to fair value common stock warrants. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that it believes to be reasonable under the circumstances. In the preparation of our condensed consolidated financial statements, the Company has considered potential impacts of the COVID-19 pandemic on its critical and significant accounting estimates. There was no significant impact to its condensed consolidated financial statements. The Company will continue to evaluate the nature and extent of the potential impacts to its business and its condensed consolidated financial statements. Summary of Significant Accounting Policies There has been no update to the significant accounting policies disclosed in Note 2 “Summary of Significant Accounting Policies,” of the notes to the consolidated financial statements for the fiscal year ended January 1, 2023 included in the Annual Report.

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Apr. 20, 2023	Apr. 02, 2023	Jan. 01, 2023
Debt Instrument [Line Items]
Working capital		$ 276,100
Accumulated deficit		$ 458,377	$ 384,774
3.0 % Convertible Senior Notes \| Convertible Debt \| Subsequent Event
Debt Instrument [Line Items]
Principal balance	$ 172,500

Stock-based Compensation - Additional Information (Details) - USD ($)	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation capitalized	$ 600,000	$ 0
Unrecognized tax benefit	0	$ 0
Unrecognized stock-based compensation expenses related to nonvested equity awards	$ 116,800,000
Weighted average period of recognition for unrecognized stock-based compensation related to nonvested equity awards	3 years 9 months 18 days
Incremental stock based compensation expenses	$ 21,100,000
Equity Awards
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Accrued bonuses to be settled in equity awards	100,000
Employee stock purchase plan estimated shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Unrecognized stock-based compensation expenses related to nonvested equity awards	$ 600,000
Weighted average period of recognition for unrecognized stock-based compensation related to nonvested equity awards	1 year 1 month 6 days
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Shares remained subject to right of repurchase (in shares)	1,461,128
Early exercised liability	$ 100,000

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Apr. 02, 2023
Accounting Policies [Abstract]
Basis of presentation	The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“GAAP”).The Condensed Consolidated Balance Sheet as of April 2, 2023, the Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Changes in Shareholders’ equity and the Condensed Consolidated Statements of Cash Flows for the fiscal quarters ended April 2, 2023 and April 3, 2022 are unaudited. These accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, considered necessary to present fairly the Company’s financial condition, results of operations, stockholders’ equity and cash flows for the periods presented above. The results of operations for the fiscal quarter ended April 2, 2023 are not necessarily indicative of the operating results for the full year, and therefore should not be relied upon as an indicator of future results. The Condensed Consolidated Balance Sheet as of January 1, 2023 included herein was derived from the audited consolidated financial statements as of that date and the accompanying consolidated financial statements and related notes are included in the Annual Report.
Consolidation	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the condensed consolidated financial statements and accompanying notes during the reporting periods. Estimates and assumptions include but are not limited to: depreciable lives for property and equipment, the valuation allowance on deferred tax assets, assumptions used in stock-based compensation, incremental borrowing rate for operating right-of-use assets and lease liabilities, and estimates to fair value common stock warrants. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that it believes to be reasonable under the circumstances. In the preparation of our condensed consolidated financial statements, the Company has considered potential impacts of the COVID-19 pandemic on its critical and significant accounting estimates. There was no significant impact to its condensed consolidated financial statements. The Company will continue to evaluate the nature and extent of the potential impacts to its business and its condensed consolidated financial statements.