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Segment and Revenue by Geography and By Major Customer
 3 Months Ended
Mar. 31, 2025
Segment and Revenue by Geography and by Major Customer [Abstract]  
SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER

NOTE 14 - SEGMENT AND REVENUE BY GEOGRAPHY AND BY MAJOR CUSTOMER:

 

a.The chief operating decision maker (the “CODM”) is the Company’s Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments. The Company’s business includes two operating segments based on the two markets the Company serves:

 

Cross Industry Business: The Company’s solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable.

 

Automotive: Valens Automotive delivers safe & resilient high-speed in-vehicle connectivity for advanced car architectures, realizing the vision of connected and autonomous cars.

 

For the purpose of evaluating financial performance and allocating resources, the CODM reviews financial information presented on a consolidated basis accompanied by disaggregated information about revenues, gross profit and operating loss by the two identified reportable segments, to make decisions about resources to be allocated to the segments and assess their performance. Assets information is not provided to the CODM and is not reviewed. Revenues and cost of goods sold are directly associated with the activities of a specific segment. Direct operating expenses, including general and administrative expenses, associated with the activities of a specific segment are charged to that segment. General and administrative expenses which cannot be attributed directly, are allocated evenly between segments. Other operating expenses are allocated to segments based on headcount ratio.

 

The CODM monitors the gross profit of each segment to analyze fluctuations relative to prior periods (cost reductions, change in product mix etc.).

 

The CODM uses segment operating profit (loss) to evaluate income (loss) generated from segment assets in deciding whether to reinvest profits into the segment. Segment operating profit (loss) is used to monitor budget versus actual results, in order to assess the performance of the segment.

 

   Three months ended on March 31, 2025 
   CIB   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   11,753    5,075    16,828 
Cost of revenues   (3,629)   (2,617)   (6,246)
Gross profit   8,124    2,458    10,582 
Research and development expenses   6,653    3,937    10,590 
Sales and marketing expenses   2,791    2,816    5,607 
General and administrative expenses   2,029    1,638    3,667 
Change in earnout liability   174    
-
    174 
Segment operating loss   (3,523)   (5,933)   (9,456)
Change in fair value of Forfeiture Shares             
-
 
Financial income, net             1,238 
Loss before taxes on income             (8,218)
                
Depreciation and Amortization expenses   537    233    770 
Stock-based compensation   1,875    2,291    4,166 
   Three months ended on March 31, 2024 
   CIB   Automotive   Consolidated 
   U.S. dollars in thousands 
Revenues   7,177    4,382    11,559 
Cost of revenues   (1,638)   (3,106)   (4,744)
Gross profit   5,539    1,276    6,815 
Research and development expenses   5,857    4,288    10,145 
Sales and marketing expenses   1,873    2,515    4,388 
General and administrative expenses   1,839    1,732    4,858 
Segment operating loss   (4,030)   (7,259)   (11,289)
Change in fair value of Forfeiture Shares             25 
Financial income, net             1,234 
Loss before taxes on income             (10,030)
                
Depreciation and Amortization expenses   228    228    456 
Stock-based compensation   1,721    2,043    3,764 

 

b.Geographic Revenues

 

The following table shows revenue by geography, based on the customers’ “bill to” location:

 

    Three months ended
March 31		  
    2025     2024  
    U.S. dollars in thousands  
Israel     64       253  
Hungary     2,880       2,071  
United States     2,686       1,450  
Portugal     2,237       1,867  
China     2,221       1,519  
Hong Kong     1,815       733  
Switzerland     1,476       21  
Japan     1,329       1,198  
Other     2,120       2,447  
      16,828       11,559  
c.Supplemental data - Major Customers:

 

The following tables summarize the significant customers’ (including distributors) accounts receivable and revenues as a percentage of total accounts receivable and total revenues, respectively:

 

   March 31,
2025		   December 31,
2024		 
Accounts Receivable  % of Account Receivable 
Customer A   18%   14%
Customer B   17%   14%
Customer C   16%   18%
Customer D   11%   16%

 

   Three months ended
March 31		 
   2025   2024 
   % of Revenues 
Revenues        
Customer A   13%   16%
Customer B   11%   2%
Customer E   4%   15%
Customer F   5%   11%
Customer G   8%   10%

 

d.Long-lived assets by Geography:
   
   March 31, 2025   December 31, 2024 
   U.S. dollars in thousands 
Domestic (Israel)   9,085    9,482 
China   228    314 
USA   873    931 
Other   207    286 
    10,393    11,013