2024 Q1 Form 20-F Financial Statement

#000121390024026942 Filed on March 28, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023 Q2
Revenue $137.0K $347.0K $289.0K
YoY Change -61.41% 132.89% -76.62%
Cost Of Revenue $403.0K $536.0K $292.0K
YoY Change 27.53% 147.0% -13.35%
Gross Profit -$266.0K -$189.0K -$3.000K
YoY Change -782.05% 177.94% -100.33%
Gross Profit Margin -194.16% -54.47% -1.04%
Selling, General & Admin $3.097M $3.462M $3.492M
YoY Change 21.26% 7.52% 1.22%
% of Gross Profit
Research & Development $9.397M $8.446M $9.091M
YoY Change 15.67% -21.99% -4.65%
% of Gross Profit
Depreciation & Amortization $142.0K $142.0K $139.0K
YoY Change 3.65% 7.58% 24.11%
% of Gross Profit
Operating Expenses $12.49M $11.91M $12.58M
YoY Change 17.01% -15.23% -3.09%
Operating Profit -$12.76M -$12.10M -$12.59M
YoY Change 19.94% -14.3% 4.15%
Interest Expense -$45.00K $2.812M -$25.00K
YoY Change -106.15% -6.39% -105.08%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$12.81M -$9.285M -$12.61M
YoY Change 29.25% -16.43% 8.78%
Income Tax
% Of Pretax Income
Net Earnings -$12.81M -$9.285M -$12.61M
YoY Change 29.25% -16.43% 8.78%
Net Earnings / Revenue -9346.72% -2675.79% -4363.67%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.16 -$0.12 -$0.19
COMMON SHARES
Basic Shares Outstanding 78.22M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2024 Q1 2023 Q4 2023 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $35.44M $43.99M $57.19M
YoY Change -21.09% -19.39% -20.23%
Cash & Equivalents $5.131M $28.59M $31.59M
Short-Term Investments $30.30M $15.40M $25.60M
Other Short-Term Assets $2.458M $2.189M $1.466M
YoY Change 36.56% 10.39% -42.26%
Inventory
Prepaid Expenses
Receivables $856.0K $1.258M $2.040M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $38.75M $47.44M $60.69M
YoY Change -20.58% -19.27% -19.34%
LONG-TERM ASSETS
Property, Plant & Equipment $3.297M $3.049M $1.846M
YoY Change 62.73% 89.5% -20.36%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $3.297M $3.049M $1.846M
YoY Change 62.73% 47.01% -20.36%
TOTAL ASSETS
Total Short-Term Assets $38.75M $47.44M $60.69M
Total Long-Term Assets $3.297M $3.049M $1.846M
Total Assets $42.05M $50.49M $62.54M
YoY Change -17.26% -17.01% -19.37%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.681M $1.149M $992.0K
YoY Change -21.63% -7.64% -38.95%
Accrued Expenses $4.619M $5.062M $4.448M
YoY Change -7.58% -42.7% -24.22%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $6.300M $6.211M $5.791M
YoY Change -15.93% -40.44% -26.57%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $2.385M $2.181M $1.437M
YoY Change 31.7% 32.34% -70.01%
Total Long-Term Liabilities $2.385M $2.181M $1.437M
YoY Change 31.7% 32.34% -70.01%
TOTAL LIABILITIES
Total Short-Term Liabilities $6.300M $6.211M $5.791M
Total Long-Term Liabilities $2.385M $2.181M $1.437M
Total Liabilities $8.685M $8.392M $7.228M
YoY Change -6.66% -30.51% -42.98%
SHAREHOLDERS EQUITY
Retained Earnings -$203.6M
YoY Change 27.16%
Common Stock $245.7M
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $33.36M $42.09M $55.31M
YoY Change
Total Liabilities & Shareholders Equity $42.05M $50.49M $62.54M
YoY Change -17.26% -17.01% -19.37%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023 Q2
OPERATING ACTIVITIES
Net Income -$12.81M -$9.285M -$12.61M
YoY Change 29.25% -16.43% 8.78%
Depreciation, Depletion And Amortization $142.0K $142.0K $139.0K
YoY Change 3.65% 7.58% 24.11%
Cash From Operating Activities -$8.376M -$5.046M -$10.19M
YoY Change -17.76% -42.07% -3.55%
INVESTING ACTIVITIES
Capital Expenditures $81.00K $59.00K $66.00K
YoY Change 52.83% -82.75% -123.24%
Acquisitions
YoY Change
Other Investing Activities -$14.90M $10.21M -$25.60M
YoY Change -3825.5%
Cash From Investing Activities -$14.98M $10.15M -$25.67M
YoY Change -4417.87% -3069.01% 8938.03%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $22.54M
YoY Change 18842.02%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 0.000 22.54M
YoY Change -100.0% -100.0% -542.15%
NET CHANGE
Cash From Operating Activities -8.376M -5.046M -10.19M
Cash From Investing Activities -14.98M 10.15M -25.67M
Cash From Financing Activities 0.000 0.000 22.54M
Net Change In Cash -23.36M 5.108M -13.32M
YoY Change 151.79% -156.5% -16.49%
FREE CASH FLOW
Cash From Operating Activities -$8.376M -$5.046M -$10.19M
Capital Expenditures $81.00K $59.00K $66.00K
Free Cash Flow -$8.457M -$5.105M -$10.26M
YoY Change -17.4% -43.61% -0.24%

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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2021 arbe Conversion Of Preferred Shares Into Ordinary Shares Upon The Recapitalization
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 us-gaap Interest Paid Net
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CY2023 us-gaap Nature Of Operations
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<p style="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 56.7pt; text-transform: uppercase; text-align: justify; text-indent: -56.7pt"><span style="font-family: Times New Roman, Times, Serif">Note 1:- General</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">a.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Arbe Robotics Ltd. (the “Company”) was founded and registered on November 4, 2015 and commenced its activities in January 2016. The Company, a global leader in Perception Radar solutions, is spearheading a radar revolution, enabling truly safe driver-assist systems today while paving the way to full autonomous-driving. The Company’s radar technology is a critical sensor for L2+ and higher autonomy. The Company is empowering automakers, Tier 1 suppliers, autonomous ground vehicles, commercial and industrial vehicles, and a wide array of safety applications with advanced sensing and paradigm changing perception. The Company’s Ordinary Shares and Warrants are listed on the Nasdaq Capital Market under the symbols “ARBE” and “ARBEW,” respectively.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">b.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">On October 26, 2017, the Company established a Delaware subsidiary, Arbe Robotics US Inc. Arbe Robotics US Inc is engaged mainly in the Company’s sales and will operate as the Company’s distributor in the U.S.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">On February 5, 2024, the Company established a Chinese subsidiary, Shanghai Arbe Technologies Co., Ltd (“Arbe China”). Arbe China was formed to assist mainly in providing customer support in the China region.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">c.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">On October 7, 2021, the Company consummated the merger (the “Merger”) pursuant to which the Company’s wholly-owned subsidiary, Autobot MergerSub, Inc. (“Merger Sub”) was merged with an into Industrial Tech Acquisitions Inc. (“ITAC”) pursuant to which ITAC became a wholly-owned subsidiary of the Company, and the Company issued ordinary shares and warrants to the holders of ITAC common stock and warrants, respectively. In connection with the Merger, the name of ITAC was changed to Autobot HoldCo, Inc.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">In connection with the Merger, and immediately prior to the closing of the Merger, the Company effected a recapitalization (the “Recapitalization”), which was approved by the Company’s directors and shareholders. As part of the Recapitalization, (i) all warrants (other than certain outstanding warrants) were exercised, (ii) all outstanding preferred shares, including preferred shares issued upon exercise of warrants, were converted into ordinary shares and (iii) the ordinary shares that were outstanding after the exercise and conversion pursuant to clauses (i) and (ii) became and were converted into a total of 48,268,611 ordinary shares. The Recapitalization resulted in a 46.25783-for-one stock split and a change in the par value of the ordinary shares from NIS 0.01 per share to NIS 0.000216 per share. The stock split was based on a valuation of the Ordinary Shares of $525,000 after the Recapitalization, with each Ordinary Share being valued at $10.00. As part of the Recapitalization, the number of Ordinary Shares issuable upon exercise of outstanding options and warrants was multiplied by the stock split ratio, which is the conversion ratio, and the exercise price of such options and warrants was divided by the conversion ratio. Fractional shares were rounded to the closest integral number of Ordinary Shares, with a half-share being rounded to the next higher number of Ordinary Shares. As a result, all Ordinary Shares, preferred shares, options to purchase ordinary shares, warrants to purchase preferred shares, exercise price and net loss per share amounts in these financial statements were adjusted retroactively for the year ended December 31, 2021, as if the stock split and change in par value had been in effect at January 1, 2021.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">Pursuant to the Merger, Arbe issued to ITAC securityholders (a) 3,866,842 Ordinary Shares to the holders of ITAC common stock and (b) 10,735,680 Arbe warrants to the holders of ITAC warrants, of which 7,623,600 warrants are public warrants and 3,112,080 warrants are private warrants.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">Total gross proceeds resulted from the Merger and the related PIPE financing were approximately $118,288, of which total transaction costs amounted to approximately $16,707. The total gross proceeds include the $100,000 from the sale of 10,000,000 Ordinary Shares to the PIPE investors at $10.00 per share.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">d.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">The Company depends on one supplier for the development and productization of its products. If this supplier fails to deliver or delays the delivery of the necessary products, the Company will be required to seek alternative sources of supply. A change in supplier could result in manufacturing delays and increased costs, which could result in a possible loss of sales which would adversely affect the Company’s business, prospects, results of operations and financial position.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">e.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">As the Company operates internationally and substantially all of its revenue is derived from sales outside of Israel, the business is affected by inflation, supply chain issues and economic conditions in countries in which the Company is seeking to conduct business, security and cybersecurity issues, fiscal and monetary policies, interest rates and regulations affection the automobile industry, the timing by the automobile and other industries on the introduction of unmanned automobiles and other unmanned devices, safety concerns and well as the effect of regional conflicts and steps taken by governments with respect to parties to such conflicts.  As an Israeli company, the Company is also subject to the effect on Israel and the Israeli economy of the present war with Hamas as well as any other regional conflicts which may develop and the relationship between Israel and other countries, including the United States, China and the European Union.</span></td> </tr></table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 84.45pt; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"> <tr style="vertical-align: top"> <td style="width: 0.5in; text-align: justify; font-size: 10pt"> </td> <td style="width: 0.25in; text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">f.</span></td> <td style="text-align: justify; font-size: 10pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has incurred losses from operations since its inception and has negative cash flow from operating activities. Management's plans with regard to these matters include continued development and marketing of its products as well as seeking additional financing arrangements.</span></td></tr> </table>
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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">b.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Use of estimates:</span></td> </tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant items subject to such estimates and assumptions including fair value of warrants, share-based compensation and the underlying fair value of the Company’s Ordinary Shares issued prior to the Merger.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.</span></p>
CY2023 us-gaap Concentration Risk Credit Risk
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<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 0.5in"></td><td style="width: 0.25in; text-align: left"><span style="font-family: Times New Roman, Times, Serif">d.</span></td><td style="text-align: justify"><span style="font-family: Times New Roman, Times, Serif">Concentration of credit risk:</span></td> </tr></table><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">Most of the Company’s cash and cash equivalents, restricted cash and short-term deposits were deposited with Israeli banks and were comprised mainly of cash deposits and short-term deposits.</span></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify; text-indent: 0in"><span style="font-family: Times New Roman, Times, Serif">The Company’s trade receivables are derived from customers located globally. The Company mitigates its credit risks by performing credit evaluations of its customers’ financial conditions and requires customer advance payments in certain circumstances. The Company generally does not require collateral.</span></p>
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CY2022Q4 us-gaap Revenue Remaining Performance Obligation Percentage
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CY2021Q4 us-gaap Revenue Remaining Performance Obligation Percentage
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CY2022Q4 us-gaap Property Plant And Equipment Gross
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CY2022Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2022Q4 us-gaap Property Plant And Equipment Net
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CY2022 arbe Operating Lease Rightofuse Assets And Liabilities Net
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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CY2023Q4 us-gaap Lessee Operating Lease Liability Payments Due
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CY2023Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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CY2023Q4 us-gaap Operating Lease Liability
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CY2023Q4 us-gaap Operating Lease Right Of Use Asset
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CY2022Q4 us-gaap Operating Lease Right Of Use Asset
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CY2023Q4 us-gaap Operating Lease Liability Current
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CY2022Q4 us-gaap Operating Lease Liability Current
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CY2023Q4 us-gaap Operating Lease Liability Noncurrent
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CY2022Q4 us-gaap Operating Lease Liability Noncurrent
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CY2023Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P5Y6M
CY2022Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y1M6D
CY2023Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
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CY2022Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
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0.058 pure
CY2023Q4 us-gaap Grants Receivable
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CY2023 arbe Royalty Percentage
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0.04 pure
CY2023 arbe Grants Received
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CY2023Q4 us-gaap Additional Collateral Aggregate Fair Value
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550000 usd
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Weighted Average Volatility Rate
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0.05 pure
CY2023 us-gaap Fair Value Adjustment Of Warrants
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CY2023 us-gaap Proceeds From Issuance Of Warrants
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