SkyWater Technology, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SkyWater Technology, Inc. has filed its annual report detailing its 2023 fiscal year performance and financial standing.</b>

AI Summary

SkyWater Technology, Inc (SKYT) filed a Annual Report (10-K) with the SEC on March 15, 2024. SkyWater Technology, Inc. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 2401 East 86th Street, Bloomington, MN 55425. SkyWater Technology, Inc. is classified under SIC code 3674 for Semiconductors & Related Devices. The company was formerly known as CMI Acquisition, LLC until August 3, 2020.

Why It Matters

For investors and stakeholders tracking SkyWater Technology, Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of SkyWater's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's progress and future prospects. As a semiconductor manufacturer, SkyWater's filing is important for understanding its position within a critical and rapidly evolving industry, including its technological advancements and market competitiveness.

Risk Assessment

Risk Level: medium — SkyWater Technology, Inc shows moderate risk based on this filing. The company operates in the highly competitive semiconductor industry, which is subject to rapid technological changes and cyclical market demand, posing significant risks to revenue and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess SkyWater's competitive positioning and long-term growth potential in the semiconductor market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-15 — Filing Date (Date of submission)
• 2020-08-03 — Date of Name Change (Transition from CMI Acquisition, LLC)

Key Players & Entities

• SkyWater Technology, Inc. (company) — Filer name
• 2401 East 86th Street, Bloomington, MN 55425 (company) — Business address
• CMI Acquisition, LLC (company) — Former company name
• 3674 (company) — Standard Industrial Classification

FAQ

Risk Factors

• Market and Industry Risks [high — market]: The semiconductor industry is subject to rapid technological changes, intense competition, and cyclical market demand, which can adversely affect the company's business, financial condition, and results of operations.
• Manufacturing and Operational Challenges [medium — operational]: The company's success depends on its ability to effectively manage complex manufacturing processes, maintain high yields, and scale production to meet customer demand, with potential disruptions impacting operations.
• Need for Capital and Funding [medium — financial]: The company may require additional funding to support its growth strategies, capital expenditures, and ongoing operations, and its ability to secure such funding on favorable terms is not guaranteed.

Industry Context

SkyWater Technology operates in the semiconductor manufacturing industry, a sector characterized by high capital intensity, rapid innovation, and significant global competition.

Regulatory Implications

As a US-based semiconductor manufacturer, SkyWater may be subject to various government regulations and initiatives aimed at strengthening domestic chip production and supply chains.

What Investors Should Do

1. Analyze SkyWater's revenue trends and profitability metrics for FY2023.
2. Evaluate the company's capital expenditure plans and funding strategies outlined in the report.
3. Assess the impact of identified market and operational risks on SkyWater's future performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-15: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for SkyWater Technology, Inc. as a public company, providing a baseline for future year-over-year comparisons.

Key Financial Figures

• $0.01 — ich Registered Common stock, par value $0.01 per share SKYT The Nasdaq Stock Market
• $9.42 — the Nasdaq Stock Market on such date of $9.42 , was approximat ely $ 174.6 million.

Filing Documents

• skyt-20231231.htm (10-K) — 2133KB
• skyt-20231231xex211.htm (EX-21.1) — 3KB
• skyt-20231231xex231.htm (EX-23.1) — 2KB
• skyt-20231231xex311.htm (EX-31.1) — 10KB
• skyt-20231231xex312.htm (EX-31.2) — 10KB
• skyt-20231231xex321.htm (EX-32.1) — 5KB
• skyt-20231231xex322.htm (EX-32.2) — 5KB
• ex97clawbackpolicy.htm (EX-97.1) — 15KB
• ex97clawbackpolicy001.jpg (GRAPHIC) — 840KB
• ex97clawbackpolicy002.jpg (GRAPHIC) — 333KB
• skyt-20231231_g1.jpg (GRAPHIC) — 13KB
• skyt-20231231_g2.jpg (GRAPHIC) — 111KB
• skyt-20231231_g3.jpg (GRAPHIC) — 70KB
• skyt-20231231_g4.jpg (GRAPHIC) — 100KB
• skyt-20231231_g5.jpg (GRAPHIC) — 115KB
• 0001819974-24-000008.txt (&nbsp;) — 15160KB
• skyt-20231231.xsd (EX-101.SCH) — 80KB
• skyt-20231231_cal.xml (EX-101.CAL) — 174KB
• skyt-20231231_def.xml (EX-101.DEF) — 465KB
• skyt-20231231_lab.xml (EX-101.LAB) — 1023KB
• skyt-20231231_pre.xml (EX-101.PRE) — 783KB
• skyt-20231231_htm.xml (XML) — 1824KB

BUSINESS

BUSINESS 6 ITEM 1A.

RISK FACTORS

RISK FACTORS 18 ITEM 1B. UNRESOLVED STAFF COMMENTS 36 ITEM 1C. CYBERSECURITY 37 ITEM 2.

PROPERTIES

PROPERTIES 38 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 38 ITEM 4. MINE SAFETY DISCLOSURES 38 INFORMATION ABOUT OUR EXECUTIVE OFFICERS 39 PART II 40 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 40 ITEM 6. [RESERVED] 41 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 41 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 55 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 56 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 96 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 96 ITEM 9B. OTHER INFORMATION 97 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 97 PART III 98 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 98 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 98 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 98 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 99 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 99 PART IV 100 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 100 ITEM 16. FORM 10-K SUMMARY 100

SIGNATURES

SIGNATURES 101 2 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains statements that SkyWater Technology, Inc. ("SkyWater," the "Company," "we," "us," "our") believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this Annual Report on Form 10-K, including, without limitation, our expectations regarding our business, results of operations, financial condition and prospects, are forward-looking statements. When used in this Annual Report on Form 10-K, words such as "may," "expect," "anticipate," "estimate," "intend," "plan," "target," "seek," "potential," "believe," "will," "could," "should," "would" and "project" or the negative thereof or variations thereon or similar words or expressions that convey the uncertainty of future events or outcomes are generally intended to identify forward-looking statements. Our forward-looking statements are subject to a number of risks, uncertainties and assumptions. Key factors that may affect our results include, among others, the following: our goals and strategies; our future business development, financial condition, and results of operations; our ability to continue operating our fabrication facilities at full capacity; our ability to appropriately respond to changing technologies on a timely and cost-effective basis; our customer relationships and our ability to retain and expand our customer relationships; our ability to accurately predict our future revenues for the purpose of appropriately budgeting and adjusting our expenses; our expectations regarding dependence on our largest customers; our ability to diversify our customer base and develop relationships in new markets; the performance and reliability of our third-party suppliers and manufacturers; our ability to procure tools, materials, and chemicals; our ability to control costs,

BUSINESS

ITEM 1. BUSINESS Overview We are a U.S.-based, independent, pure-play technology foundry that offers advanced semiconductor development and manufacturing services from our fabrication facility, or fab, in Minnesota and advanced packaging services from our Florida facility. Our Technology-as-a-Service ("TaaS") model leverages a strong foundation of proprietary technology, engineering know-how capabilities, and microelectronics manufacturing capacity to co-develop process technology intellectual property ("IP") with our customers that enables disruptive concepts through our Advanced Technology Services ("ATS") for diverse microelectronics (integrated circuits ("ICs")) and related micro- and nanotechnology applications. In addition to differentiated technology development services, we support customers with volume production of ICs for high-growth markets through our Wafer Services. The combination of semiconductor development and manufacturing services we provide our customers is not available to them from a conventional fab. In addition, we believe our status as a publicly-traded, U.S.-based, U.S. headquartered pure-play technology foundry with Defense Microelectronics Activity ("DMEA") Category 1A Trusted Accreditation from the DoD positions us well to provide distinct, competitive advantages to our customers. These advantages include the benefits of enhanced IP security and secure access to a U.S. domestic supply chain. We primarily focus on serving diversified, high-growth end users in numerous vertical markets, including (1) advanced compute, (2) aerospace and defense ("A&D"), (3) automotive, (4) bio-health, and (5) industrial. By housing both development and manufacturing in a single operation, we rapidly and efficiently transition newly-developed processes to high-yielding volume production, eliminating the time it would otherwise take to transfer production to a third-party fab. Through our ATS model, we specialize in co-creating advanced solutions with o

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View this 10-K filing on SEC EDGAR