As part of the Transactions (see Note 1c), the Company assumed a derivative warrants liability related to previously issued private placement warrants in connection with Collective Growth’s initial public offering. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants which is considered a Level 3 fair value measurement. The warrants are measured at each reporting period, with changes in fair value recognized in financing income, net. Includes revenues from United States in the amount of $3,712 and $916 for the nine months ended September 30, 2025 and 2024, respectively. 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Exhibit 99.1
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
 
AS OF SEPTEMBER 30, 2025
 
UNAUDITED
 
INDEX
 
 
Page
  
F-2 - F-3
  
F-4
  
F-5
  
F-6 - F-7
  
F-8 - F-16
 
- - - - - - - - - - -

 

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 
   
September 30,
    
December 31,
  
   
2025
    
2024
  
      ASSETS
            
             
CURRENT ASSETS:
            
Cash and cash equivalents
  
$
7,886
    
$
25,365
  
Short-term restricted cash
    
16
      
16
  
Bank deposits
    
57,120
      
30,628
  
Marketable securities
    
9,372
      
11,955
  
Trade receivables, net
    
19,811
      
6,043
  
Inventory
    
2,968
      
1,905
  
Prepaid expenses and other current assets
    
5,018
      
6,707
  
Total current assets
    
102,191
      
82,619
  
                 
 LONG-TERM ASSETS:
                
   Restricted deposits
    
3,106
      
2,725
  
Property and equipment, net
    
19,892
      
23,432
  
Operating lease right-of-use assets, net
    
25,785
      
23,194
  
Other long-term assets
    
89
      
79
  
Total long-term assets
    
48,872
      
49,430
  
                 
Total assets
  
$
151,063
    
$
132,049
  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
F - 2
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 
   
September 30,
    
December 31,
  
   
2025
    
2024
  
LIABILITIES AND SHAREHOLDERS' EQUITY
            
             
CURRENT LIABILITIES:
            
Trade payables
  
$
9,232
    
$
8,813
  
Deferred revenues
    
2,136
      
274
  
Employees and payroll accruals
    
9,661
      
8,722
  
Accrued expenses and other current liabilities
    
5,326
      
5,631
  
Operating lease liabilities
    
5,745
      
4,330
  
Total current liabilities
    
32,100
      
27,770
  
                 
LONG-TERM LIABILITIES:
                
Operating lease liabilities
    
29,253
      
25,264
  
Warrants liability
    
43
      
86
  
Total long-term liabilities
    
29,296
      
25,350
  
                 
SHAREHOLDERS' EQUITY:
                
Ordinary shares of no-par value: Authorized: 500,000,000 shares as of September 30, 2025 and December 31, 2024; Issued and outstanding: 208,542,156 and 169,397,030 shares as of September 30, 2025 and December 31, 2024, respectively
    
-
      
-
  
Additional paid-in capital
    
866,252
      
808,974
  
Accumulated deficit
    
(776,585
)
    
(730,045
)
Total shareholders' equity
    
89,667
      
78,929
  
                 
 Total liabilities and shareholders' equity
  
$
151,063
    
$
132,049
  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
F - 3
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 
   
Nine Months Ended
September 30,
  
   
2025
    
2024
  
             
Revenues
  
$
42,415
    
$
18,241
  
Cost of revenues
    
(31,575
)
    
(19,941
)
                 
Gross profit (loss)
    
10,840
      
(1,700
)
                 
Operating expenses:
                
Research and development
    
40,354
      
60,328
  
Sales and marketing
    
4,183
      
5,752
  
General and administrative
    
13,109
      
14,889
  
                 
Total operating expenses
    
57,646
      
80,969
  
                 
Operating loss
    
(46,806
)
    
(82,669
)
                 
Financial income, net
    
385
      
6,637
  
                 
Loss before taxes on income
    
(46,421
)
    
(76,032
)
Taxes on income
    
(119
)
    
(129
)
                 
Net loss
  
$
(46,540
)
  
$
(76,161
)
                 
Basic and diluted net loss per ordinary share
  
$
(0.24
)
  
$
(0.46
)
                 
Weighted average number of ordinary shares used in computing basic and diluted net loss per ordinary share
    
196,237,671
      
166,657,624
  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
F - 4
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 
 
  
Ordinary Shares
    
Additional
Paid-in Capital
    
Accumulated
Deficit
    
Total
Shareholders’
Equity
  
 
  
Number
    
Amount
      
                               
Balance as of January 1, 2024
    
165,387,098
    
$
-
    
$
788,577
    
$
(635,288
)
  
$
153,289
  
Exercise of shares options
    
316,256
      
-
      
169
      
-
      
169
  
Vesting of RSUs
    
2,667,816
      
-
      
-
      
-
      
-
  
Share-based compensation
    
-
      
-
      
15,331
      
-
      
15,331
  
Net Loss
    
-
      
-
      
-
      
(76,161
)
    
(76,161
)
                                         
Balance as of September 30, 2024
    
168,371,170
    
$
-
    
$
804,077
    
$
(711,449
)
  
$
92,628
  
                                         
Balance as of January 1, 2025
    
169,397,030
    
$
-
    
$
808,974
    
$
(730,045
)
  
$
78,929
  
Issuance of ordinary shares and warrants, net of issuance costs
    
28,776,978
      
-
      
37,289
      
-
      
37,289
  
Issuance of ordinary shares, net of issuance costs
    
4,894,936
      
-
      
7,927
      
-
      
7,927
  
Exercise of shares options
    
1,008,454
      
-
      
710
      
-
      
710
  
Vesting of RSUs
    
4,464,758
      
-
      
-
      
-
      
-
  
Share-based compensation
    
-
      
-
      
11,352
      
-
      
11,352
  
Net Loss
    
-
      
-
      
-
      
(46,540
)
    
(46,540
)
                                         
Balance as of September 30, 2025
    
208,542,156
    
$
-
    
$
866,252
    
$
(776,585
)
  
$
89,667
  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
F - 5
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 
   
Nine Months Ended
September 30,
  
   
2025
    
2024
  
Cash flows from operating activities:
            
             
   Net loss
  
$
(46,540
)
  
$
(76,161
)
   Adjustments required to reconcile net loss to net cash used in operating activities:
                
                 
Depreciation and amortization
    
4,076
      
6,194
  
Remeasurement of warrants liability
    
(43
)
    
(176
)
Change in accrued interest on bank deposits
    
(931
)
    
891
  
Change in marketable securities
    
(130
)
    
(450
)
Share-based compensation
    
11,850
      
15,866
  
Foreign exchange gain, net
    
(1,326
)
    
(134
)
Change in prepaid expenses and other assets
    
1,181
      
2,914
  
Change in trade receivables, net
    
(13,768
)
    
3,856
  
Change in inventory
    
616
      
641
  
Change in operating lease assets and liabilities, net
    
2,813
      
(992
)
Change in trade payables
    
858
      
(1,703
)
Change in accrued expenses and other liabilities
    
(244
)
    
(3,428
)
Change in employees and payroll accruals
    
939
      
241
  
Change in deferred revenues
    
1,862
      
(6,671
)
                 
Net cash used in operating activities
    
(38,787
)
    
(59,112
)
                 
Cash flows from investing activities:
                
                 
Purchase of property and equipment
    
(3,210
)
    
(3,221
)
Proceeds from sales of property and equipment
    
3
      
-
  
Investment in bank deposits
    
(77,900
)
    
(26,700
)
Withdrawal of bank deposits
    
52,350
      
88,600
  
Investment in restricted deposits
    
(120
)
    
(122
)
Investment in marketable securities
    
(29,898
)
    
(33,457
)
Proceeds from sales and maturities of marketable securities
    
32,611
      
35,290
  
                 
Net cash provided by (used in) investing activities
  
$
(26,164
)
  
$
60,390
  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
F - 6
 
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 
   
Nine Months Ended
September 30,
  
   
2025
    
2024
  
Cash flows from financing activities:
            
             
   Issuance of ordinary shares and warrants, net of issuance costs
    
37,289
      
-
  
   Issuance of ordinary shares, net of paid issuance costs
  
8,419
      
-
  
   Proceeds from exercise of options
    
710
      
169
  
                 
Net cash provided by financing activities
    
46,418
      
169
  
                 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
    
1,054
      
182
  
                 
Increase (decrease) in cash, cash equivalents and restricted cash
    
(17,479
)
    
1,629
  
Cash, cash equivalents and restricted cash at the beginning of the period
    
25,381
      
26,336
  
                 
Cash, cash equivalents and restricted cash at the end of the period
  
$
7,902
    
$
27,965
  
                 
Supplementary disclosure of cash flows activities:
                
                 
(1) Cash paid during the period for:
                
Income taxes
  
$
248
    
$
180
  
                 
(2) Non-cash transactions:
                
Purchase of property and equipment
  
$
543
    
$
1,063
  
Reclassification from property and equipment, net to inventory
  
$
1,679
    
$
-
  
Exercise of options
  
$
40
    
$
-
  
Right-of-use assets recognized with corresponding lease liabilities due to lease modification
  
$
4,541
    
$
-
  
Sale of machinery (see Note 4)
  
$
2,915
    
$
-
  
Issuance costs to be paid
  
$
492
    
$
-
  
                 
(3) Cash, cash equivalents and restricted cash at the end of the period:
                
Cash and cash equivalents
  
$
7,886
    
$
27,949
  
Short-term restricted cash
    
16
      
16
  
   
$
7,902
    
$
27,965
  
 
The accompanying notes are an integral part of the interim consolidated financial statements.
F - 7
 
INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES
 
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
U.S. dollars in thousands (except share and per share data)
 

NOTE 1:-  

GENERAL
     
  a.
Innoviz Technologies Ltd. and its subsidiaries (the “Company” or “Innoviz”) is a Tier-1 direct supplier of high-performance, automotive grade LiDAR sensor platforms and complementary solutions that feature technological breakthroughs across core components and bring enhanced vision and superior performance to enable safe autonomous driving at a mass scale. The Company provides a comprehensive solution for OEMs (original equipment manufacturers) and Tier-1 partners that are developing and marketing autonomous driving vehicles to the passenger car and other relevant markets, such as robotaxis, shuttles, delivery vehicles and trucks.
 
  b.
The Company was incorporated on January 18, 2016, under the laws of the state of Israel.
 
  c.
On December 10, 2020, the Company entered into definitive agreements in connection with a merger (the “Transactions”) with Collective Growth Corporation (“Collective Growth”), a special purpose acquisition company, that resulted in Collective Growth becoming a wholly owned subsidiary of the Company upon the consummation of the Transactions on April 5, 2021 (the “Closing Date”).
 
The Company's ordinary shares and warrants were listed on the Nasdaq Stock Market LLC under the trading symbols “INVZ” and “INVZW,” respectively, on April 5, 2021.
 
  d.
As of September 30, 2025 the Company’s principal source of liquidity includes its cash and cash equivalents in the amount of $7,886, bank deposits in the amount of $57,120 and marketable securities in the amount of $9,372, which is sufficient to finance its business plan for at least the next 12 months from the date these interim consolidated financial statements are issued. As the Company achieves further commercial success, it may need to obtain additional funding to support its continuing operations. If the Company is unable to obtain capital when and if needed, it may need to reduce or eliminate some of its research and development programs.
 
  e.
In October 2023, Israel was attacked by a terrorist organization and entered a state of war. In October 2025, the sides agreed to a ceasefire, although there is no assurance that this agreement will be upheld. As of the date of these interim consolidated financial statements, the potential for renewed hostilities and any future escalation are difficult to predict, as such are the economic implications of the conflict on the Company’s operational and financial performance. The Company considered the impact of the war and determined that there were no material adverse impacts on the interim consolidated financial statements, including related significant estimates made by management, for the period ended September 30, 2025.
 
NOTE 2:-
SIGNIFICANT ACCOUNTING POLICIES
   
  a.
Interim financial statements
 
The accompanying interim consolidated balance sheet as of September 30, 2025, the interim consolidated statements of operations and the interim consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024, as well as the interim statement of changes in shareholders’ equity for the nine months ended September 30, 2025 and 2024, are unaudited. These unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting.
 

F - 8

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 2:-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
   
In management’s opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair statement of the Company’s financial position as of September 30, 2025, as well as its results of operations and cash flows for the nine months ended September 30, 2025 and 2024. The results of operations for the nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for other interim periods or for future years.
 
  b.
Significant accounting policies
 
The accompanying unaudited interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 20-F for the fiscal year ended December 31, 2024 (the “2024 Annual Report”) filed with the SEC on March 12, 2025.
 
There have been no changes to the significant accounting policies described in the 2024 Annual Report that have had a material impact on the unaudited interim consolidated financial statements and related notes.
 
  c.
Use of estimates:
 
The preparation of interim 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 interim consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
 
Significant items subject to such estimates and assumptions include inventory reserves and useful lives of property, plant, and equipment. 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.
 
  d.
Concentration of credit risk:
 
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, trade receivables, marketable securities, bank deposits and restricted deposits.
 
The majority of the Company’s cash and cash equivalents and short-term bank deposits are invested with major banks in Israel. The Company believes that the financial institutions that hold the Company’s cash deposits are financially sound and, accordingly, bear minimal risk.
 
Trade receivables of the Company are mainly 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.

 

F - 9

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 2:-
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
   
The Company invests in marketable securities with an average credit rating of “A” and a maturity of up to three years. The Company’s investment policy is not to invest more than 5% of its investment portfolio in a single security at time of purchase.
 
  e.
Recently issued accounting pronouncement not yet adopted:
 
  1.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU introduces a practical expedient for the application of the current expected credit loss (“CECL”) model to current accounts receivable and contract assets. The ASU is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years, Early adoption is permitted. The Company is currently evaluating the effect that ASU 2025-05 will have on its consolidated financial statements and related disclosures.
 
  2.
In September 2025, the FASB issued ASU 2025-06, Intangibles, Goodwill and Other Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The ASU removes all references to software development stages throughout ASC 350-40. Therefore, under the ASU, an entity will be required to start capitalizing software costs when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the intended function. The ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. The ASU allows adoption either on a prospective basis, a modified prospective approach or a retrospective approach. The Company is currently evaluating the effects that ASU 2025-06 will have on its consolidated financial statements and related disclosures.

 

NOTE 3:-        INVENTORY
 
Inventory is comprised of the following:
 
   
September 30,
    
December 31,
  
   
2025
    
2024
  
             
Raw materials
  
$
1,929
    
$
837
  
Work in process
    
948
      
264
  
Finished goods
    
91
      
804
  
 
                
   
$
2,968
    
$
1,905
  
 

F - 10

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 4:-        REVENUE RECOGNITION
 
During the nine months ended September 30, 2025 and 2024, the Company recognized revenue at a point in time for LiDAR sensors and critical components, after transferring the control of the goods to the customer of $4,384 and $4,386, respectively.
 
During the nine months ended September 30, 2025 and 2024, the Company recognized revenue at a point in time for application engineering services, after receiving customer acceptance of $29,882 and $13,855, respectively.
 
In June 2025 the Company entered into a contract with a customer for the sale of machinery (including subsequent adjustments to the machinery) for $10,000. During the nine months ended September 30, 2025, the Company recognized revenue at a point in time from the sale of machinery, after transferring the control of the machinery to the customer of $7,156. In addition, during the nine months ended September 30, 2025, the Company recognized revenue over time from the subsequent adjustments to the machinery of $993.
 
Deferred Revenues
 
During the nine months ended September 30, 2025, the Company recognized $207 that was included in deferred revenues balance at December 31, 2024.
 
Remaining Performance Obligation
 
The Company’s remaining performance obligations are comprised of application engineering services revenues not yet rendered. As of September 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $12,888 (out of which none is recorded as deferred revenues), which the Company expects to recognize as revenues within the next 12 months.

 

F - 11

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 5:-        FAIR VALUE MEASUREMENTS
 
The below tables set forth the Company’s assets and liabilities that were measured at fair value as of September 30, 2025 and December 31, 2024 by level within the fair value hierarchy.
 
   
September 30, 2025
  
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets:
                        
Marketable securities
  
$
-
    
$
9,372
    
$
-
    
$
9,372
  
 
                                
Total financial assets
  
$
-
    
$
9,372
    
$
-
    
$
9,372
  
                                 
Liabilities:
                                
Warrants (1)
  
$
-
    
$
-
    
$
43
    
$
43
  
                                 
Total financial liabilities
  
$
-
    
$
-
    
$
43
    
$
43
  
 
   
December 31, 2024
  
 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
Assets:
                        
Marketable securities
  
$
-
    
$
11,955
    
$
-
    
$
11,955
  
 
                                
Total financial assets
  
$
-
    
$
11,955
    
$
-
    
$
11,955
  
                                 
Liabilities:
                                
Warrants (1)
  
$
-
    
$
-
    
$
86
    
$
86
  
                                 
Total financial liabilities
  
$
-
    
$
-
    
$
86
    
$
86
  
 
  (1)
As part of the Transactions (see Note 1c), the Company assumed a derivative warrants liability related to previously issued private placement warrants in connection with Collective Growth’s initial public offering. The Company utilizes a Black-Scholes option pricing model to estimate the fair value of the private placement warrants which is considered a Level 3 fair value measurement. The warrants are measured at each reporting period, with changes in fair value recognized in financing income, net.
 
The change in the fair value of the derivative private warrants liability is summarized as follows:
 
   
Nine Months Ended 
September 30,
  
   
2025
    
2024
  
Balance as of January 1
  
$
86
    
$
240
  
Change in fair value of warrants liability
    
(43
)
    
(176
)
Balance as of September 30
  
$
43
    
$
64
  
 

F - 12

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 6:-
COMMITMENTS AND CONTINGENCIES
 
Legal proceedings:
 
On March 28, 2024, a putative class action lawsuit was filed in the Delaware Court of Chancery against several former officers and directors of Collective Growth (the “Defendants”) which relates to events preceding the Transactions. Under the Transactions agreements, the Company may be required to honor all rights to indemnification or exculpation existing in favor of the directors and officers of Collective Growth, as were in effect prior to the Closing Date, solely with respect to any matters occurring on or prior to the Closing Date. The lawsuit generally alleges that the Defendants impaired Collective Growth’s public stockholders’ ability to exercise their redemption on an informed basis in connection with the Transactions, by failing to disclose material information in the proxy statement concerning the Defendants’ interests relating to the Transactions and the net cash per share that Collective Growth could contribute to the Transactions. The lawsuit asserts claims for breach of fiduciary duty and unjust enrichment.
 
On June 21, 2024, the Defendants’ legal counsel filed a motion to dismiss. On August 9, 2024, an amended complaint was filed, and in response, on August 23, 2024, the Defendants’ legal counsel submitted an amended motion to dismiss. Briefing on the amended motion to dismiss was completed on December 20, 2024. On October 1, 2025, the plaintiff submitted a letter to the court, enclosing supplemental authorities on issues relating to laches, i.e., the time to file an equitable claim. Oral argument on the Defendants’ motion to dismiss was held on October 27, 2025. After the oral argument, the plaintiff submitted a letter to the court to request permission to file a supplemental brief to address comments relating to laches made by the court during the hearing. The court has taken Defendants’ motion to dismiss under advisement and has not yet ruled on the motion.
 
The Defendants intend to vigorously defend against the claim.
 
As of the date hereof, the Company, with advice of its legal counsel, is unable to estimate the likelihood of an outcome, favorable or unfavorable to the Company. Hence, an estimated liability has not been recorded in the interim consolidated financial statements.
 
Other than noted above, the Company is currently not part, as plaintiff or defendant, to any legal proceedings that, individually or in the aggregate, are expected by the Company to have a material effect on the Company's business, financial position, results of operations or cash flows.

 

NOTE 7: -
EQUITY ISSUANCE
 
  a.
On February 12, 2025, the Company issued a total of 28,776,978 ordinary shares of no par value and 23,021,582 warrants to purchase one ordinary share, at an offering price of $1.39 per unit (each unit consisting of one ordinary share and eight tenths of a warrant), for a total consideration of $37,289, net of placement agent fees and other issuance costs of $2,711. The warrants are immediately exercisable at $1.69 per share and will expire five years
 
from the date of issuance. The warrants were classified as equity in the Company’s interim consolidated financial statements.
     

F - 13

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 7: -
EQUITY ISSUANCE (Cont.)
   
  b.

On August 13, 2025, the Company entered into an Open Market Sale Agreement (the “Sales Agreement”) with a sales agent. In accordance with the terms of the Sales Agreement, the Company may offer and sell its ordinary shares from time to time through the sales agent, having an aggregate offering price of up to $75,000. The Sales Agreement is subject to certain limitations on the number of shares to be sold in any single day and any minimum price below sales may not be made.

 
As of September 30, 2025, the Company issued 4,894,936 ordinary shares of no par value under the Sales Agreement for a total consideration of $7,927, net of sales agent fees and other issuance costs of $798.

 

NOTE 8:-
BASIC AND DILUTED NET LOSS PER SHARE
 
The following table sets forth the computation of the net loss per share for the period presented:
 
   
Nine Months Ended
September 30,
  
   
2025
    
2024
  
             
Numerator:
            
             
Net Loss
  
$
(46,540
)
  
$
(76,161
)
                 
Denominator:
                
 
                
     
196,237,671
      
166,657,624
  
 
The following potential ordinary shares have been excluded from the calculation of diluted net loss per share for the period presented due to their anti-dilutive effect:
 
  a.
39,252,723 warrants, 29,600,867 outstanding options to purchase ordinary shares and unvested RSUs as of September 30, 2025.
 
  b.
16,231,141 warrants, 2,402,178 sponsors earnout shares, 28,937,629 outstanding options to purchase ordinary shares and unvested RSUs as of September 30, 2024.

 

F - 14

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 9:-

SEGMENT INFORMATION
   
  a.
Segment information:
     
   
Nine Months Ended
September 30,
  
   
2025
    
2024
  
Revenues from external customers
  
$
42,415
    
$
18,241
  
Less:
                
Cost of revenues
    
31,575
      
19,941
  
Research and development expenses
    
40,354
      
60,328
  
Sales and marketing expenses
    
4,183
      
5,752
  
General and administrative expenses
    
13,109
      
14,889
  
Financial income, net
    
(385
)
    
(6,637
)
Taxes on income
    
119
      
129
  
                 
Segment loss
  
$
46,540
    
$
76,161
  
                 
Other segment disclosures:
                
   Depreciation and amortization expenses
  
$
4,076
    
$
6,194
  
Share-based compensation expenses
  
$
11,850
    
$
15,866
  
Interest income
  
$
2,625
    
$
4,326
  
Expenditures for segment assets
  
$
3,210
    
$
3,221
  
 
   
September 30,
    
December 31,
  
   
2025
    
2024
  
Assets:
            
Segment assets
  
$
151,063
    
$
132,049
  

 

F - 15

INNOVIZ TECHNOLOGIES LTD. AND ITS SUBSIDIARIES

 

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

U.S. dollars in thousands (except share and per share data)

 

NOTE 9:-

SEGMENT INFORMATION (Cont.)

 

  b.
Geographic information:
 
Following is a summary of revenues by geographic areas. Revenues attributed to geographic areas, based on the location where the customers accept delivery of the products and services:
 
   
Nine Months Ended
September 30,
  
   
2025
    
2024
  
             
Europe, Middle East and Africa (*)
  
$
37,203
    
$
16,229
  
Americas (**)
    
3,730
      
916
  
Israel
    
1,399
      
969
  
Asia Pacific
    
83
      
127
  
                 
   
$
42,415
    
$
18,241
  
 
   (*)
Includes revenues from Germany only.
     
  (**)
Includes revenues from United States in the amount of $3,712 and $916 for the nine months ended September 30, 2025 and 2024, respectively.
 
  c.
Concentration of credit risk from major customers:
 
As of September 30, 2025, Customer A and Customer B accounted for approximately 82% and 16% of the Company’s trade receivables.
 
As of December 31, 2024, Customer A and Customer C accounted for approximately 73% and 23% of the Company’s trade receivables, respectively.

 

F - 16