The following discussion and analysis of financial condition and results of operations should be read together with the condensed consolidated financial statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q. This discussion and analysis contains forward-looking statements based upon our current expectations, estimates and projections that involve risks and uncertainties. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Business Overview We design, develop and manufacture advanced lithium-ion batteries, including our proprietary silicon-anode architecture that enables higher energy density and performance relative to conventional battery cells, particularly in space-constrained devices such as smartphones, smart eyewear and next generation AI-enabled devices. We have expanded our suite of battery offerings through acquisitions and now also manufacture conventional lithium-ion batteries, primarily serving customers in the defense and industrial sectors. To date, we have concentrated our operational efforts on researching, developing and commercializing the next generation technology behind our silicon-anode lithium-ion battery cell architecture. We recently launched the AI-1TM product platform, our Artificial Intelligence ClassTM batteries for the next generation of mobile smartphones, smart eyewear and other AI-enabled devices that require significantly higher total energy storage and power to perform AI functions locally. We also serve customers in defense and industrial markets through our conventional and silicon-blended graphite battery products across a range of battery sizes and configurations optimized for high discharge rate applications, such as drones, subsea and munitions defense systems. Drones represent a priority area of focus for us, as we believe our products provide a strong competitive advantage for serving customers that are increasingly prioritizing higher energy density, extended flight time, and supply-chain diversification. To support this anticipated growth, we have invested in additional capacity in our facility and launched MX-1, our first silicon-enhanced product platform, which is designed for rugged applications requiring rapid discharge and high gravimetric energy density. Finally, in addition to the smartphone, smart eyewear and defense and industrial markets, we are pursuing deployment of our technology across other edge-AI applications, as well as computing and EVs, among others. We currently lease several facilities, including our headquarters in Fremont, California, and our manufacturing facility in Malaysia. Our manufacturing operations are conducted in Malaysia and South Korea, supporting both our next-generation silicon-anode platform and our conventional lithium-ion battery products. We have transitioned our prior U.S. pilot manufacturing activities to Malaysia and continue to focus on manufacturing execution, operational efficiency, and capacity planning to support commercialization efforts. Our research and development activities are conducted primarily in California, India, and South Korea and are focused on cell architecture, materials integration, and manufacturing process optimization. We also recently opened a sales office in Shenzhen, China. Key Trends, Opportunities and Uncertainties We generate revenue from the sale of batteries and battery pack products. As we continue to commercialize our battery technologies and expand our product offerings, our operating results and future growth will depend on, among other factors, the successful qualification and adoption of our products by customers, our ability to scale manufacturing efficiently, and the development of demand across our target markets. These factors present significant opportunities as well as risks and uncertainties, as described below and in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q. Smartphones Advanced smartphone qualification continues with our lead smartphone original equipment manufacturer (“OEM”) customer. During the second quarter of 2026, our lead smartphone customer confirmed that our batteries passed more than 1,000 cycles under the 0.2C discharge cycle test. The final accelerated cycle-life testing is underway built around a hybrid protocol defined in close collaboration with the customer and designed for silicon-anode cells. This hybrid approach, which replaced the traditional 0.7C test used for legacy graphite batteries, consists of multiple test protocols across a range of charge and discharge conditions, with testing durations differing by variant mix. The lead 22 Table of Contents customer is currently evaluating our cells, including an enhanced design, across these multiple variants. We anticipate completing this final test in the fourth quarter of 2026, with targeted system-level field testing to follow.  Our second smartphone OEM customer continues moving toward a similar qualification framework, following a path parallel to that of our lead customer. We expect to begin sample deliveries to this customer in the fourth quarter of 2026. Smart Eyewear In smart eyewear, we continued to make significant progress toward broader commercialization during the second quarter of 2026. Following the start of commercial production in the first quarter, we shipped approximately 2,100 silicon-anode AI-1 batteries and recognized initial smart eyewear product revenue under a customer order for 50,000 packs for delivery in 2026. We also completed key international safety certifications and customer reliability testing. The customer has since issued delivery orders for approximately 19,000 packs for third-quarter delivery, and we expect to fulfill the balance of the order in the fourth quarter of 2026, with shipment volumes expected to grow in 2027 as downstream deployments are projected to expand. Drones, Defense and Industrial Demand across our drone, defense and industrial end markets continued to expand during the second quarter of 2026. Our global pipeline for products manufactured at our South Korea facility grew approximately 41% to approximately $183 million, up from $130 million at the end of the first quarter, with more than half the growth driven by drone opportunities. This pipeline represents our estimate of the peak annual production value of identified design opportunities and does not represent contracted or committed revenue. The timing and extent to which these opportunities convert into revenue will depend on a number of factors, including our ability to satisfy customer qualification requirements, secure design wins and scale production to meet customer demand, and some or all of these opportunities may not ultimately result in revenue. We believe our established manufacturing operations in South Korea position us to address demand for high-performance drone batteries that meet applicable U.S. government sourcing requirements, including under the National Defense Authorization Act (NDAA) and the Trade Agreements Act (TAA), which we expect to exceed available industry supply through the end of the decade. Subsequent to quarter end, our drone battery passed UN 38.3 transportation testing, completing a key certification required for commercial shipment, and we commenced sampling to numerous customers. We are also continuing the previously announced capacity expansion at our South Korea facility, with new capacity expected to come online in mid-2027. Manufacturing Readiness and Technology During the second quarter of 2026, we continued to make progress improving manufacturing execution and yields at Fab2. In smart eyewear production, substantially all process steps outside of Zone 1 achieved yields of 95% or greater, while Zone 1 dicing, which remains a key throughput driver across our smartphone and smart eyewear production lines, delivered step-level yield of approximately 84% in the second quarter, up from approximately 80% in the prior quarter. We continue to implement manufacturing improvements intended to increase throughput and reduce costs, including a hybrid dicing configuration that combines laser and mechanical dicing, as well as further simplification of the manufacturing flow. Multiple key dicing steps are expected to come online around the end of 2026. Achieving the yield, throughput and cost levels necessary to support manufacturing at scale remains an important execution priority, and the timing and expected benefits of these initiatives remain subject to manufacturing and operational risks. In parallel with these manufacturing initiatives, we continued to advance our product and technology roadmap across our targeted end markets. We have begun customer sampling of our next-generation AI-2TM battery for smart eyewear, which is expected to deliver significantly higher volumetric energy density than AI-1. The underlying technology innovations are also expected to support a step-function in performance gains for our future smartphone batteries. We also continued to advance our technology roadmap for products manufactured at our South Korea facility, including MX-2TM, the next generation of our MX-1TM drone cell, which remains targeted for 2027. Global Risks. Our manufacturing operations in Malaysia and South Korea, and our supply chain for raw materials and components, are subject to evolving trade policies, tariffs, export restrictions, and geopolitical tensions. We face risks related to significant changes in United States trade policy, including tariffs on products imported from China and other 23 Table of Contents countries and potential retaliatory actions by those countries. Escalating geopolitical tensions, changes in tariff regimes affecting components sourced from or processed in China, or disruptions to our Malaysia-based manufacturing operations could increase our cost of production and adversely affect our margins and competitive position. Although we do not currently anticipate a material change in risk to our near-term outlook from the existing trade environment, the extent and future outcome of these global risks are highly unpredictable and uncertain and may adversely affect our future financial condition, results of operations, and cash flows. Components of Results of Operations Revenue In June 2022, we began to generate revenue from our Fab1 in Fremont, California. In October 2023, we acquired Routejade, a manufacturer of electrode coating and battery packs for customers worldwide. We recognize revenue within the scope of Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. Our revenue consists of product revenue, resulting from the sale of lithium-ion batteries and battery pack products (“Product Revenue”) to customers. Product Revenue is recognized once we have satisfied the performance obligations as defined in the sales agreement, which is generally satisfied upon transfer of control of goods. Control is transferred upon delivery of the product. For certain customized products with customer acceptance criteria specified in the sales agreement, the performance obligations are generally satisfied upon our customer’s acceptance. Payment terms can vary depending on the contract and it is generally required within 90 days or less from the delivery date or the acceptance date of our product. The amount of revenue recognized reflects the consideration for the product sold. Cost of Revenue Cost of revenue includes materials, labor, depreciation and amortization expense, freight costs and other direct costs related to manufacturing our products and service contracts. Labor consists of personnel-related expenses such as salaries, benefits, and stock-based compensation. We anticipate that cost of revenue will continue to increase as we optimize and expand our production line. Gross margin may also fluctuate from period to period as our product and customer mix evolves during this early stage of commercialization. Our inventory is stated at the lower of cost or net realizable value (“NRV”) on a first-in and first-out basis. Determining net realizable value of finished goods and work in process inventories involves projecting average selling prices. When the estimated net realizable values are below the manufacturing costs, a charge to cost of revenue is recorded. Capitalization of certain costs are recognized as an asset if they relate directly to a customer contract, generate or enhance resources of the entity that will be used in satisfying future performance obligations, and are expected to be recovered. If these three criteria are not met, the costs are expensed in the period incurred. Deferred costs are recognized as cost of revenue in the period when the related revenue is recognized. Operating Expenses Research and Development Expenses Research and development expenses consist of engineering services, allocated facilities costs, depreciation, development expenses, materials, labor and stock-based compensation related primarily to our (i) technology development, and (ii) design, construction, and testing of preproduction prototypes and models. Research and development costs are expensed as incurred. To date, research and development expenses have consisted primarily of personnel-related expenses for scientists, experienced engineers and technicians, as well as costs associated with the expansion and ramp up of our engineering and manufacturing facility, materials and supplies to support the product development and process engineering efforts. As we ramp up our engineering operations to complete the development of batteries and required process engineering to meet customer specifications, we anticipate that research and development expenses will continue to increase as we expand hiring of scientists, engineers and technicians and continue to invest in additional plant and equipment for product development, building prototypes and testing of batteries. We have a research and development center in India to focus on developing machine learning algorithms, battery modeling, material screening and electrolyte optimization. We also have a research and development team in Malaysia. 24 Table of Contents Selling, General, and Administrative Expenses Selling, general and administrative expenses consist of personnel-related expenses, marketing expenses, allocated facilities expenses, depreciation expenses, travel expenses, acquisition costs, and professional services expenses, including legal, human resources, audit, accounting and tax-related services. Personnel-related costs consist of salaries, benefits and stock-based compensation. Facilities costs consist of rent and maintenance of facilities. Other Income (Expense) Other income and expense primarily consists of dividend income, interest income, interest expense, foreign currency transaction gain or loss and fair value adjustments for outstanding common stock warrants. Income Tax Our income tax provision consists of an estimate for U.S. federal, state and foreign income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. We maintain a valuation allowance against the full value of our U.S. and state net deferred tax assets because we believe the recoverability of the tax assets is not more likely than not. We are subject to foreign statutory taxation for our international operations. 25 Table of Contents Results of Operations Comparison of the fiscal quarter and fiscal year-to-date ended July 5, 2026 to the fiscal quarter and fiscal year-to-date ended June 29, 2025 The following table sets forth our condensed consolidated operating results for the periods presented below (in thousands): Fiscal Quarters Ended Change ($) Change (%) Fiscal Years-to-Date Ended Change ($) Change (%) July 5 2026 June 29 2025 July 5 2026 June 29 2025 Revenue $ 9,024 $ 7,468 $ 1,556 21% $ 16,624 $ 12,566 $ 4,058 32 % Cost of revenue 7,722 5,526 2,196 40 % 13,770 10,363 3,407 33 % Gross profit 1,302 1,942 (640) (33) % 2,854 2,203 651 30 % Operating expenses: Research and development 24,444 28,148 (3,704) (13) % 50,972 54,077 (3,105) (6) % Selling, general and administrative 20,154 17,527 2,627 15 % 39,073 34,419 4,654 14 % Total operating expenses 44,598 45,675 (1,077) (2) % 90,045 88,496 1,549 2 % Loss from operations (43,296) (43,733) 437 (1) % (87,191) (86,293) (898) 1 % Other income (expense): Change in fair value of common stock warrants 181 (5,885) 6,066 (103) % 6,578 9,911 (3,333) (34) % Gain on bargain purchase of assets — 4,761 (4,761) (100) % — 4,761 (4,761) (100) % Interest income 5,134 2,427 2,707 112 % 10,910 4,861 6,049 124 % Interest expense (6,521) (1,705) (4,816) 282 % (13,529) (3,421) (10,108) 295 % Other income (expense), net 984 (992) 1,976 (199) % 1,327 1,361 (34) (2) % Total other income (expense), net (222) (1,394) 1,172 (84) % 5,286 17,473 (12,187) (70) % Loss before income tax benefit (43,518) (45,127) 1,609 (4) % (81,905) (68,820) (13,085) 19 % Income tax benefit (441) (861) 420 (49) % (570) (1,023) 453 (44) % Net loss $ (43,077) $ (44,266) $ 1,189 (3) % $ (81,335) $ (67,797) $ (13,538) 20 % Revenue Revenue for the fiscal quarter ended July 5, 2026 was $9.0 million, compared to $7.5 million for the fiscal quarter ended June 29, 2025. The increase in revenue of $1.6 million, or 21%, was principally from higher sales to defense customers. Revenue for the fiscal year-to-date ended July 5, 2026 was $16.6 million, compared to $12.6 million for the fiscal year-to-date ended June 29, 2025. The increase in revenue of $4.1 million, or 32%, was primarily attributable to increased sales to defense and industrial customers. As of July 5, 2026 and December 28, 2025, we had $4.0 million and $5.3 million of deferred revenue on our Condensed Consolidated Balance Sheets. Cost of Revenue Cost of revenue for the fiscal quarter ended July 5, 2026 was $7.7 million, compared to $5.5 million for the fiscal quarter ended June 29, 2025. The increase in cost of revenue of $2.2 million, or 40%, was primarily attributable to higher production volume supporting the revenue growth netted with the lower cost to produce the defense product resulting from the acquisition of assets from SolarEdge Technologies Korea, Ltd. (“SETK”) in the second fiscal quarter of 2025. Cost of revenue for the fiscal year-to-date ended July 5, 2026 was $13.8 million, compared to $10.4 million during the prior fiscal year-to-date ended June 29, 2025. The increase in cost of revenue of $3.4 million, or 33%, was primarily 26 Table of Contents attributable to higher production volume supporting the revenue growth netted with the lower costs to produce defense products resulting from the acquisition of assets from SETK in the second fiscal quarter of 2025. As of July 5, 2026 and December 28, 2025, we had $0.9 million and $0.8 million of deferred contract costs on our Condensed Consolidated Balance Sheets. Research and Development Expenses Research and development (“R&D”) expenses during the fiscal quarter ended July 5, 2026 were $24.4 million, compared to $28.1 million during the fiscal quarter ended June 29, 2025. The decrease of $3.7 million, or 13%, was primarily attributable to lower salaries, benefits and stock-based compensation of $2.7 million, less materials usage of $1.7 million and lower contracting costs of $0.6 million. These decreases were offset by higher consumable usage of $0.6 million, higher common expenses allocation into R&D of $0.3 million and higher depreciation expense of $0.3 million. Research and development expenses for the fiscal year-to-date ended July 5, 2026 were $51.0 million, compared to $54.1 million during the prior fiscal year-to-date ended June 29, 2025. The decrease of $3.1 million, or 6%, was primarily attributable to lower salaries, benefits and stock-based compensation of $3.4 million, less materials usage of $1.3 million and more costs being capitalized to fixed assets of $1.2 million. These decreases were offset by higher depreciation expense of $1.2 million, higher consumable usage of $1.2 million, higher contracting costs of $0.3 million and higher common expenses allocation into R&D of $0.1 million. Selling, General and Administrative Expenses Selling, general and administrative expenses for the fiscal quarter ended July 5, 2026 were $20.2 million, compared to $17.5 million for the fiscal quarter ended June 29, 2025. The increase of $2.6 million, or 15%, was primarily attributable to higher salaries, benefits and stock-based compensation of $1.9 million, higher consulting expenses of $0.9 million, facilities expenses of $0.4 million and higher depreciation expense of $0.3 million. These increases were offset by higher common expenses allocated to R&D of $0.3 million and acquisition costs incurred in 2025 of $0.7 million. Selling, general and administrative expenses for the fiscal year-to-date ended July 5, 2026 were $39.1 million, compared to $34.4 million for the fiscal year-to-date ended June 29, 2025. The increase of $4.7 million, or 14%, was primarily attributable to higher salaries, benefits and stock-based compensation of $2.8 million, higher consulting expenses of $1.5 million, facilities expenses of $0.4 million and higher depreciation expense of $0.6 million. These increases were offset by higher common expenses allocated to R&D of $0.1 million and acquisition costs incurred in 2025 of $0.7 million. Change in Fair Value of Common Stock Warrants For the fiscal quarter and fiscal year-to-date ended July 5, 2026, the changes in fair value of common stock warrants of $0.2 million and $6.6 million, respectively, were mainly attributable to a decrease in the fair value of the 5,500,000 Private Placement Warrants (as defined in Note 3 “Fair Value Measurement” of our Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q). For the fiscal quarter and fiscal year-to-date ended June 29, 2025, the changes in fair value of common stock warrants of $5.9 million and $9.9 million, respectively, were attributable to a fluctuation in the fair value of the 5,500,000 Private Placement Warrants. The decrease in fair value of the Private Placement Warrants in each of these periods was primarily due to a decrease in our common stock price during the respective fiscal quarter. In addition, for fiscal quarter ended July 5, 2026, the fair value was also impacted by these warrants’ short remaining expected term. The Private Placement Warrants were unexercised and expired on July 14, 2026. Gain on Bargain Purchase of Assets In April 2025, we acquired battery cell manufacturing assets located in South Korea from SETK for total purchase consideration of $10.0 million in cash. As a result of this business acquisition, we recorded $4.8 million of gain on bargain purchase as the estimated fair value of the acquired assets exceeded the purchase consideration. There was no gain on bargain purchase for the fiscal year-to-date ended July 5, 2026. 27 Table of Contents Interest Income Interest income for fiscal quarter ended July 5, 2026 was $5.1 million, compared to $2.4 million during the fiscal quarter ended June 29, 2025. The increase of $2.7 million, or 112%, was primarily attributable to higher average cash balance and yields earned on short-term and long-term investments. Interest income for fiscal year-to-date ended July 5, 2026 was $10.9 million, compared to $4.9 million during the fiscal year-to-date ended June 29, 2025. The increase of $6.0 million, or 124%, was primarily attributable to higher average cash balance and yields earned on short-term and long-term investments. Interest Expense Interest expense for the fiscal quarter ended July 5, 2026 was $6.5 million, compared to $1.7 million for the fiscal quarter ended June 29, 2025. The increase of $4.8 million, or 282%, was primarily attributable to the issuance of additional convertible senior notes in the third fiscal quarter of 2025. Interest expense for the fiscal year-to-date ended July 5, 2026 was $13.5 million, compared to $3.4 million for the fiscal year-to-date ended June 29, 2025. The increase of $10.1 million, or 295%, was primarily attributable to the issuance of additional convertible senior notes in the third fiscal quarter of 2025. Other Income (Expense), Net Other income, net for the fiscal quarter ended July 5, 2026 was $1.0 million, which primarily consisted of a one-time realized foreign exchange gain related to the Malaysia tenancy agreement being modified. Other expense, net for the fiscal quarter ended June 29, 2025 was $1.0 million, which primarily consisted of foreign currency losses due to the strengthening of the Malaysian Ringgits and the South Korean Won to U.S. dollars. Other income, net for the fiscal year-to-date ended July 5, 2026 was $1.3 million, which primarily consisted of a one-time realized foreign exchange gain related to the Malaysia tenancy agreement being modified and foreign currency losses due to the strengthening of Malaysian Ringgits to U.S. dollars. For fiscal year-to-date ended June 29, 2025, other income, net was $1.4 million, which primarily consisted of a one-time import duty forgiveness of $2.4 million offset by foreign currency losses due to the strengthening of the Malaysian Ringgits and the South Korean Won to U.S. dollars. Income Tax Benefit Income tax benefit for the fiscal quarter ended July 5, 2026 was $0.4 million compared to an income tax benefit of $0.9 million for fiscal quarter ended June 29, 2025. The tax benefit was calculated based on the estimated annual effective tax rate. The decrease of $0.5 million in tax benefit was primarily attributable to lower income tax benefit on the losses generated from certain foreign jurisdictions. Income tax benefit for the fiscal year-to-date ended July 5, 2026 and June 29, 2025 was $0.6 million and $1.0 million, respectively, which was calculated based on the estimated annualized effective tax rate and was due to the income tax benefit in foreign jurisdictions. 28 Table of Contents Liquidity and Capital Resources We have incurred operating losses and negative cash flows from operations since inception through July 5, 2026 and expect to continue to incur operating losses for the foreseeable future. As of July 5, 2026, we had cash, cash equivalents, restricted cash, and short-term and long-term investments of $552.1 million, working capital of $453.6 million and an accumulated deficit of $1.06 billion. Material Cash Requirements We use cash to fund operations, meet working capital requirements and fund our capital expenditures. For the remainder of fiscal year 2026, we expect that our cost of revenues and operating expenses will continue to increase as we ramp up our Fab2 operations. For the fiscal year-to-date ended July 5, 2026, we used $12.8 million of our cash to fund our acquisitions of property and equipment. We will continue to increase our property and equipment purchases in the near future to support the build-out of our manufacturing facilities and our battery manufacturing production. For more information regarding our purchase commitments, please see the contractual obligations and commitments section below. Based on the anticipated spending and timing of expenditures to support operational development and market expansion, we currently expect that our cash will be sufficient to meet our funding requirements over the next twelve months from the date this Quarterly Report on Form 10-Q is filed. We believe we will meet longer-term expected future cash requirements and obligations through a combination of available cash, cash equivalents, operating cash flow improvement as revenue scales, and access to debt or equity capital markets. As of July 5, 2026, $76.6 million remained available under the Company’s share repurchase program and the Company intends to evaluate repurchase activity on an opportunistic basis while prioritizing liquidity to support operational growth. We have made our estimates based on historical experience and various other relevant factors and we believe that they are reasonable. Actual results may differ from our estimates, and we could utilize our available capital resources sooner than we expect. Summary of Cash Flows The following table provides a summary of cash flow data for the periods presented below (in thousands). Fiscal Years-to-Date Ended Change ($) July 5 2026 June 29 2025 Net cash used in operating activities $ (54,853) $ (42,766) $ (12,087) Net cash used in investing activities (15,338) (91,089) 75,751 Net cash used in financing activities (1,992) (2,685) 693 Effect of exchange rate changes on cash, cash equivalents and restricted cash (202) (102) (100) Change in cash, cash equivalents, and restricted cash $ (72,385) $ (136,642) $ 64,257 Fiscal Year-to-Date Ended July 5, 2026 Compared to Prior Fiscal Year-to-Date Ended June 29, 2025 Operating Activities Our cash flows used in operating activities to date have been primarily comprised of operating expenses as we continue to ramp up our Fab2 operations. We expect our cash used in operating activities to increase significantly before we start to generate any material cash inflows from commercially manufacturing and selling our batteries. Net cash used in operating activities was $54.9 million for the fiscal year-to-date ended July 5, 2026. Net cash used in operating activities consisted of a net loss of $81.3 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of the Private Placement Warrants of $6.6 million, stock-based compensation expense of $24.8 million and depreciation and amortization expense, net of accretion of $19.4 million. Net cash used in operating activities was $42.8 million for the fiscal year-to-date ended June 29, 2025. Net cash used in operating activities consisted of a net loss of $67.8 million, adjusted for non-cash items and the effect of changes in working capital. Non-cash adjustments primarily include the change in fair value of Private Placement Warrants of $9.9 million, stock-based compensation expense of $26.1 million and depreciation and amortization expense, net of accretion on investments of $17.3 million. 29 Table of Contents Investing Activities Our cash flows used in investing activities to date have been primarily comprised of purchases of property and equipment, as well as purchases of short-term and long-term investments. We expect the costs to acquire property and equipment will increase in the future as we continue to build-out our Fab2 facility, evaluate additional or alternative manufacturing capacity options and develop our battery manufacturing production lines in Malaysia. Net cash used in investing activities was $15.3 million for the fiscal year-to-date ended July 5, 2026, which primarily consisted of $12.8 million of equipment purchases and $230.1 million of investment purchases offset by maturities of $227.6 million of investments. Net cash used in investing activities for the fiscal year-to-date ended June 29, 2025 was $91.1 million, which primarily consisted of $14.2 million of equipment purchases and $85.5 million of short-term investment purchases. Financing Activities Net cash used in financing activities was $2.0 million for the fiscal year-to-date ended July 5, 2026, which primarily consisted of $3.4 million of payroll tax payments for shares withheld upon vesting of restricted stock units and $0.7 million used to fund the purchase of additional shares of Routejade from a minority shareholder. Net cash used in financing activities was $2.7 million for the fiscal year-to-date ended June 29, 2025, which primarily consisted of $0.5 million of transaction costs related to a secondary offering in the fourth quarter of 2024, and $2.9 million of payroll tax payments for shares withheld upon vesting of restricted stock units, partially offset by $0.8 million of proceeds from the exercise of stock options to purchase our common stock. Contractual Obligations and Commitments As of July 5, 2026, we had $172.5 million aggregate principal amount of the 2028 Convertible Senior Notes outstanding with an interest rate of 3.0%, which will mature on May 1, 2028 unless earlier converted, redeemed or repurchased, and $360.0 million aggregate principal amount of the 2030 Convertible Senior Notes outstanding with an interest rate of 4.75%, which will mature on September 15, 2030 unless earlier converted, redeemed or repurchased. Please see Note 6 “Borrowings” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information. We lease our headquarters in Fremont, California and Malaysia, and offices in the Asia Pacific region. For the lease payment schedule, please see Note 5 “Leases” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q. The lease for our Fab2 manufacturing facility was originally scheduled to expire in July 2026, however, in April 2026, we signed a one-year renewal extending the expiration to July 31, 2027. The monthly rental payments under the terms of the lease are approximately RM962,267 (approximately $0.2 million U.S. dollars per month). See Note 5 “Leases” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further details regarding the lease renewal. The Company is evaluating its alternatives, including facility purchase, alternative manufacturing site options and further extension of the lease to support long-term operational continuity and future growth. We expect to enter into other commitments to support our product development, the build-out of our manufacturing facilities, and our business development, which are generally cancellable upon notice. Additionally, from time to time, we enter into agreements in the normal course of business with various vendors, which are generally cancellable upon notice. Payments due upon cancellation consist only of payments for services provided or expenses incurred, including non-cancellable obligations of service providers, up to the date of cancellation. As of July 5, 2026, our commitments included approximately $3.2 million of our open purchase orders, including equipment purchase orders, and contractual obligations that occurred in the ordinary course of business. For contractual obligations, please see Note 7 “Commitments and Contingencies” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information. Critical Accounting Policies and Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities in our consolidated financial statements and accompanying notes. We base these estimates on historical experience and on 30 Table of Contents various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates. These estimates and assumptions include but are not limited to: valuation of the Private Placement Warrants, the impairment of long-lived assets, the net realizable value of inventory, stock-based compensation relating to performance-based restricted stock units (“PRSUs”) and income taxes. We believe that application of these critical accounting estimates involves our subjective judgments and assumptions, which have had, or are reasonably likely to have, a material impact on our condensed consolidated financial statements. There have been no material changes to our critical accounting policies and estimates disclosed in Part II, Item 7 of our Annual Report on Form 10-K, except for the additions to the accounting policies on investments as noted in Note 2 “Summary of Significant Accounting Policies” of the notes to the condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. Recent Accounting Pronouncements See Note 2 “Summary of Significant Accounting Policies” of the notes to our condensed consolidated financial statements in Part I of this Quarterly Report on Form 10-Q for further information.