Arteris, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Arteris, Inc. filed its Q1 2024 10-Q, detailing financial performance and customer concentration risks.</b>

AI Summary

Arteris, Inc. (AIP) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Arteris, Inc. reported financial results for the period ending March 31, 2024. The company filed a 10-Q form with the SEC. Key financial data for Q1 2024 and comparative periods are included. Information on revenue segments, including License and Maintenance and Variable Royalties and Other, is provided. Details on customer concentration risk for specific customers (A, B, C, D) are presented.

Why It Matters

For investors and stakeholders tracking Arteris, Inc., this filing contains several important signals. This filing provides investors with the latest quarterly financial snapshot of Arteris, Inc., crucial for assessing performance trends and operational health. Understanding customer concentration is vital for evaluating potential revenue volatility and the company's reliance on key clients.

Risk Assessment

Risk Level: medium — Arteris, Inc. shows moderate risk based on this filing. The company faces medium risk due to customer concentration, with specific customers contributing significantly to accounts receivable and revenue, as detailed in the filing.

Analyst Insight

Monitor Arteris, Inc.'s customer relationships and revenue diversification strategies in upcoming filings to assess ongoing risk mitigation.

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-05-02 — Filing Date (10-Q filing)
• Customer A — Customer for Concentration Risk (Accounts Receivable and Revenue)
• Customer B — Customer for Concentration Risk (Accounts Receivable and Revenue)

Key Players & Entities

• Arteris, Inc. (company) — Filer name
• AIP (company) — Ticker symbol
• SEC (regulator) — Filing agency
• 2024-03-31 (date) — Reporting period end date
• 2024-05-02 (date) — Filing date
• Customer A (company) — Customer concentration risk entity
• Customer B (company) — Customer concentration risk entity
• Customer C (company) — Customer concentration risk entity

FAQ

Risk Factors

• Customer Concentration Risk [medium — financial]: The company's accounts receivable and revenue are significantly impacted by a limited number of customers, posing a risk of financial instability if these relationships deteriorate.

Industry Context

Arteris, Inc. operates in the semiconductor industry, providing solutions for chip design and integration.

Regulatory Implications

The filing adheres to SEC regulations for quarterly reporting (10-Q), ensuring transparency for investors.

What Investors Should Do

1. Analyze the specific revenue figures for License and Maintenance vs. Variable Royalties and Other.
2. Investigate the historical trend and future outlook of customer concentration for Customers A and B.
3. Compare key financial metrics with previous quarters and the same quarter last year, if available in the full filing.

Key Dates

• 2024-03-31: Quarterly Period End — Financial results for Q1 2024 are reported.
• 2024-05-02: Filing Date — The 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first 10-Q for the fiscal year 2024, providing updated financial information compared to the previous year's filings.

Key Financial Figures

• $0.001 — ange on which registered Common stock, $0.001 par value AIP The Nasdaq Stock Market L

Filing Documents

• aip-20240331.htm (10-Q) — 1168KB
• exhibit311q1fy2410-q.htm (EX-31.1) — 11KB
• exhibit312q1fy2410-q.htm (EX-31.2) — 11KB
• exhibit321q1fy2410-q.htm (EX-32.1) — 7KB
• exhibit322q1fy2410-q.htm (EX-32.2) — 7KB
• 0001667011-24-000016.txt (&nbsp;) — 5584KB
• aip-20240331.xsd (EX-101.SCH) — 37KB
• aip-20240331_cal.xml (EX-101.CAL) — 72KB
• aip-20240331_def.xml (EX-101.DEF) — 143KB
• aip-20240331_lab.xml (EX-101.LAB) — 488KB
• aip-20240331_pre.xml (EX-101.PRE) — 333KB
• aip-20240331_htm.xml (XML) — 673KB

Financial Information

Part I. Financial Information 3 Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets as of March 3 1 , 202 4 and December 31, 20 23 3 Condensed Consolidated Statements of Loss for the Three Months Ended March 3 1 , 202 4 and 20 23 4 Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 3 1 , 202 4 and 20 23 5 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 3 1 , 202 4 and 202 3 6 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 4 and 202 3 7 Notes to Unaudited Condensed Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 30 Item 4.

Controls and Procedures

Controls and Procedures 31

Other Information

Part II. Other Information 32 Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68 Item 3. Defaults Upon Senior Securities 68 Item 4. Mine Safety Disclosures 68 Item 5. Other Information 68 Item 6. Exhibits 70

Signatures

Signatures 71 2 Ta ble of Contents

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Arteris, Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) As of March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 26,119 $ 13,696 Short-term investments (Note 5) 18,695 27,477 Accounts receivable, net of allowance of $ 93 as of both March 31, 2024 and December 31, 2023 12,265 12,003 Prepaid expenses and other current assets 4,718 5,254 Total current assets 61,797 58,430 Property and equipment, net 5,244 5,745 Long-term investments (Note 5) 8,602 11,802 Equity method investment 7,741 8,500 Operating lease right-of-use assets 4,060 4,289 Intangibles, net 3,662 3,858 Goodwill 4,178 4,178 Other assets 6,070 5,999 TOTAL ASSETS $ 101,354 $ 102,801 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 754 $ 183 Accrued expenses and other current liabilities 12,659 11,831 Operating lease liabilities, current 858 781 Deferred revenue, current 33,558 31,537 Vendor financing arrangements, current 1,987 2,070 Total current liabilities 49,816 46,402 Deferred revenue, noncurrent 26,559 25,172 Operating lease liabilities, noncurrent 3,333 3,610 Vendor financing arrangements, noncurrent 1,094 1,292 Deferred income, noncurrent 8,520 8,810 Other liabilities 2,486 2,412 Total liabilities 91,808 87,698 Commitments and contingencies (Note 10) Stockholders' equity: Preferred stock, par value of $ 0.001 - 10,000,000 shares authorized as of both March 31, 2024 and December 31, 2023; no shares issued and outstanding as of both March 31, 2024 and December 31, 2023 — — Common stock, par value of $ 0.001 - 300,000,000 shares authorized as of both March 31, 2024 and December 31, 2023; 38,291,425 and 37,518,583 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 38 37 Additional paid-in capital 122,104 118,193 Accumulated other comprehensive income 54 120 Accumulated deficit