Financial Analysis

6. Commitments and Contingencies Contract Manufacturer Commitments The Company relies on a third-party foundry and contract manufacturer for the manufacturing of its products. Generally, its foundry agreements do not have volume purchase commitments and primarily provide for purchase commitments based on purchase orders. Purchase orders are placed in advance with consideration of estimates of future demand. These purchase orders can be canceled and rescheduled upon agreement of the Company and the contract manufacturer. As of June 30, 2025, the Company had total manufacturing purchase commitments of $ 7.7 million. Litigation From time to time, the Company may become involved in various legal actions arising in the ordinary course of business. As of June 30, 2025 , management was not aware of any existing, pending, or threatened legal actions that would have a material impact on the financial position, results of operations, or cash flows of the Company.

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8. Stock Option Plan and Stock-Based Compensation The following table summarizes the activity in total shares of common stock available for issuance under the 2020 Plan: Shares Available for Grant Balance, January 1, 2025 397,654 Shares added Granted ( 236,785 ) Forfeited 17,695 Balance, June 30, 2025 178,564 The following table summarizes the effects of stock-b ased compensation on cost of sales, research and development, and sales, general and administrative expenses granted under the 2010 Equity Incentive Plan and 2020 Equity Incentive Plan (collectively, the Plans) (in thousands) for the three and six months ended June 30, 2025 and 2024: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Cost of sales $ 40 $ 71 $ 100 $ 101 Research and development $ 330 873 719 1,148 Sales, general and administrative $ 395 694 797 940 Total $ 765 $ 1,638 $ 1,616 $ 2,189 The total unrecognized stock-based compensation expense related to unvested stock options and subject to recognition in future periods was approximately $ 4.2 million at June 30, 2025. As of June 30, 2025, the Company anticipates this expense to be recognized over a weighted-average period of approximately 2.4 years. During the three months ended June 30, 2025 , the Company granted 330,706 stock options, presented on a post-reverse stock split basis, under the 2020 Equity Incentive Plan. Refer to Note 12 - Subsequent Events for additional information. No restricted stock units (RSUs) were granted dur …

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9. Income Taxes Effective Tax Rate The following table presents the provision for income taxes and the effective tax rates for the three and six months ended June 30, 2025 and 2024 (in thousands): Three months ended June 30, Six months Ended June 30, 2025 2024 2025 2024 Loss before income taxes $ ( 8,482 ) $ ( 10,626 ) $ ( 16,762 ) $ ( 20,020 ) Income tax expense ( 14 ) ( 7 ) ( 18 ) ( 12 ) Effective tax rate 0.2 % 0.1 % 0.1 % 0.1 % The income tax amount for each of the three and six months ended June 30, 2025 and 2024 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to an increase in the valuation allowance. The effective tax rate was less than 1 % for both the three and six months ended June 30, 2025 and 2024. The provision for income taxes is primarily related to the foreign subsidiaries local country obligations. There is no federal provision for income taxes as the Company has sufficient carryforward of net operating losses to offset any operating income earned since inception and has projected an operating loss in the current year. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Due to the …

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Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. The Company is currently evaluating the potential impact of adopting this guidance on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The update will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt this amendment effective with its annual financial statements for the year ending December 31, 2025. The Company is currently evaluating the potential impact of adopting this guidance on the notes to the consolidated financial stat …

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10. Related Party Transactions The Company defines related parties as any party that controls or can significantly influence the management or operating policies of the Company to the extent that the Company may be prevented from fully pursuing its own interests, such as directors, executive officers, and stockholders, including a greater than 10 % beneficial owner of the Companys capital and their affiliates or immediate family members. For the three and six months ended June 30, 2025 and 2024 , the Company did no t have any related party transactions. …

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11. Segment and Geographic Information The Companys chief operating decision maker (CODM) is the Companys chief executive officer ( CEO) and reviews the financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. The CODM uses revenue, gross margin, operating expenses and net loss by its single operating and reportable segment to make strategic business decisions. The following table sets forth the Companys disaggregation of operating expenses which were reviewed by the CODM for the three and six months ended June 30, 2025 and 2024 (in thousands): Three months ended June 30, Six months Ended June 30, 2025 2024 2025 2024 Research and development $ 8,898 $ 9,391 $ 17,585 $ 18,827 Sales and marketing 2,399 2,542 4,948 5,267 General and administrative 4,670 5,441 10,564 8,704 Total operating expenses $ 15,967 $ 17,374 $ 33,097 $ 32,798 The following is a summary of net sales for the three and six months ended June 30, 2025 and 2024, based on the country to which the Company's products were shipped, which may be different from the geographic locations of the ultimate end customers (in thousands): Three months ended June 30, Six months Ended June 30, 2025 2024 2025 2024 Taiwan $ 6,813 $ 7,219 $ 12,845 $ 9,868 China 8,667 12,477 14,257 24,300 Singapore 2,056 5,655 Rest of the World* 337 556 848 1,294 Total $ 17,873 $ 20,252 $ 33,605 $ 35,462 *Other countries individually less than 10% …

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2. Summary of Significant Accounting Policies Basis of Accounting and Consolidation The accompanyin g unaudited condensed consolidated financial statements have been prepared by the Company and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of its financial position, results of operations, cash flows and stockholders' equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information and include the accounts of the Company and its wholly owned subsidiaries. Accordingly, these statements do not include all information and footnotes required by U.S. GAAP for annual consolidated financial statements, and should be read in conjunction with the Company's audited consolidated financial statements as of and for the fiscal year ended December 31, 2024 included in the Company's final prospectus, dated July 29, 2025, filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (Securities Act), on July 31, 2025 (the Prospectus) in connection with the Company's initial public offering (IPO). The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the operating results expecte …

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7. Warrants, Redeemable Convertible Preferred Stock and Stockholders Deficit Common Stock The Company has one class of authorized common stock and has authorized for issuance up to 500,000,000 shares of common stock with a par value of $ 0.000001 per share. The holders of common stock are entitled to receive dividends at the discretion of the board of directors, subject to preferences that may apply to shares of preferred stock outstanding at the time. All holders of common stock are entitled to one vote per share on all matters to be voted on by the Companys stockholders. Upon liquidation, dissolution or winding up, the holders of common stock are entitled to share equally in all the Companys assets remaining after payment of all liabilities and the liquidation preferences of any outstanding preferred stock. At June 30, 2025, the Company has reserved an aggregate of 16,131,116 shares of common stock for the conversion, exercise or issuance, as applicable, of certain securities. This amount includes 178,588 shares reserved for issuance upon the exercise of options not issued as of June 30, 2025 and 15,952,528 shares underlying the following outstanding securities: Redeemable convertible preferred stock 12,729,240 Preferred warrants 4,883 Common warrants 672,632 Restricted stock units 185,243 Stock options 2,360,530 Total shares 15,952,528 Redeemable Convertible Preferred Stock During the six months ended June 30, 2025 , the Company did no t issue any additional shares of Seri …

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12. Subsequent Events Reverse Stock Split On July 18, 2025, the Company effected a 1-for-28 reverse stock split (the Stock Split) of the Companys issued and outstanding shares of common stock and options to purchase common stock. The Stock Split reduced the number of shares of the Companys issued and outstanding common stock, as well as the numbers of shares underlying the RSUs and the numbers of shares reserved and available for future issuance and underlying outstanding options to purchase common stock. No fractional shares were distributed as a result of the Stock Split, and stockholders were entitled to a cash payment in lieu of fractional shares. The Stock Split did not affect the par values per share or total authorized common stock. Accordingly, all share and per share amounts for all periods presented in the condensed consolidated financial statements have been adjusted retroactively, where applicable, to reflect the Stock Split. Initial Public Offering On July 31, 2025, the Company completed its IPO, in which 4.6 million shares of common stock were issued and sold, inclusive of the exercise in full of the underwriters' option to purchase 0.6 million additional shares. The Company received net proceeds of $ 97.2 million after deducting underwriting discounts and commissions of $ 7.7 million, but before offering expenses. In connection with the IPO, all shares of redeemable convertible preferred stock then outstanding automatically converted into an aggregate of 12,729 …

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