Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts

Three months ended

Nine months ended

September 30,

September 30,

2022

2021

2022

2021

Unaudited

Unaudited

Unaudited

Unaudited

GAAP net loss

$  (22,304)

$  (167)

$  (25,123)

$  (3,482)

Equity-based compensation expense included in cost of revenues

393

247

1,076

509

Equity-based compensation expense included in research and development expenses

2,180

2,007

6,181

5,435

Equity-based compensation expense included in sales and marketing expenses

392

400

1,065

1,185

Equity-based compensation expense included in general and administrative expenses

726

749

2,061

2,378

Amortization, Impairment and Write-off of intangible and prepaid expenses assets, net of taxes, related to acquisition of Intrinsix and Hillcrest Labs business, investments in NB-IoT and Immervision technologies

6,796

1,034

9,360

2,571

Costs associated with the Intrinsix acquisition

326

383

977

1,388

Loss associated with the remeasurement of marketable equity securities.

455

—

2,271

—

Income tax expense as a result of a write off of a deferred tax asset and withholding tax that can't be utilized

15,741

—

15,323

—

NRE revenues associated with the purchase price allocation (PPA) related to Intrinsix acquisition

—

—

42

—

Non-GAAP net income

$  4,705

$  4,653

$  13,233

$  9,984

GAAP weighted-average number of Common Stock used in computation of diluted net loss and earning per share (in thousands)

23,211

22,925

23,163

22,766

Weighted-average number of shares related to outstanding stock-based awards (in thousands)

872

746

821

741

Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands)

24,083

23,671

23,984

23,507

GAAP diluted loss per share

$  (0.96)

$  (0.01)

$  (1.08)

$  (0.15)

Equity-based compensation expense

$  0.16

$  0.15

$  0.45

$  0.40

Amortization, Impairment and Write-off of intangible and prepaid expenses assets, net of taxes, related to acquisition of Intrinsix and Hillcrest Labs business, investments in NB-IoT and Immervision technologies

$  0.29

$  0.04

$  0.39

$  0.11

Costs associated with the Intrinsix acquisition

$  0.01

$  0.02

$  0.04

$  0.06

Loss associated with the remeasurement of marketable equity securities.

$  0.02

$  —

$  0.10

$  —

Income tax expense as a result of a write off of a deferred tax asset and withholding tax that can't be utilized

$  0.68

$  —

$  0.65

$  —

Non-GAAP diluted earnings per share

$  0.20

$  0.20

$  0.55

$  0.42