# EDGAR Filing Document

**Accession Number:** 0001124796
**File Stem:** 0001124796-23-000015
**Filing Date:** 2023-2
**Character Count:** 61230
**Document Hash:** 28025179855d4b3929b1e95d252243e5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001124796-23-000015.hdr.sgml**: 20230223

**ACCESSION NUMBER**: 0001124796-23-000015

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 39

**CONFORMED PERIOD OF REPORT**: 20230223

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230223

**DATE AS OF CHANGE**: 20230223

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NLIGHT, INC.
- **CENTRAL INDEX KEY:** 0001124796
- **STANDARD INDUSTRIAL CLASSIFICATION:** SEMICONDUCTORS & RELATED DEVICES [3674]
- **IRS NUMBER:** 912066376
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38462
- **FILM NUMBER:** 23659791

**BUSINESS ADDRESS:**
- **STREET 1:** 4637 NW 18TH AVENUE
- **CITY:** CAMAS
- **STATE:** WA
- **ZIP:** 98607
- **BUSINESS PHONE:** 360-566-4460

**MAIL ADDRESS:**
- **STREET 1:** 4637 NW 18TH AVENUE
- **CITY:** CAMAS
- **STATE:** WA
- **ZIP:** 98607

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NLIGHT PHOTONICS CORP
- **DATE OF NAME CHANGE:** 20000925

?xml version="1.0" ? lasr-20230223

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**________________________________________________________**

**FORM 8-K**

**________________________________________________________**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): February 23, 2023

**________________________________________________________**

**NLIGHT, INC.**

(Exact name of registrant as specified in its charter)

**________________________________________________________**

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-38462** | **91-2066376** |
| (State or other jurisdiction of<br>incorporation or organization) | (Commission File Number) | (I.R.S. Employer<br>Identification Number) |
| **4637 NW 18**<sup>th</sup> **Avenue**<br>**Camas, Washington**  |  | **98607** |
| (Address of principal executive offices) |  | (Zip Code) |
| **(360) 566-4460** | **(360) 566-4460** | **(360) 566-4460** |
| (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |

---

**<u>Not Applicable</u>**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of Each Class | Trading Symbol | Name of Exchange on which Registered |
| **Common Stock, par value <br>$0.0001 per share** | **LASR** | **The Nasdaq Stock Market LLC** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 2.02. Results of Operations and Financial Condition.**

On February 23, 2023, nLIGHT, Inc. (the "Company") announced its financial results for the three and twelve months ended December 31, 2022. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

On February 23, 2023, the Company also published earnings presentation slides related to its financial results for the three and twelve months ended December 31, 2022 for use in investor discussions. The presentation slides are furnished as Exhibit 99.2 to this Current Report on Form 8-K and are incorporated herein by reference.

The information included in Item 2.02 of this Current Report on Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](exhibit991-q42022.htm)</u> | Earnings Release issued by nLIGHT, Inc. on February 23, 2023 |
| <u>[99.2](ex992q4.htm)</u> | Earnings Presentation slides dated February 23, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | | NLIGHT, INC. |
| | | | (Registrant) |
| Date: | February 23, 2023 |  |  |
|  |  | By: | /s/ JOSEPH CORSO |
|  |  |  | Joseph Corso |
|  |  |  | Chief Financial Officer |

---

## Exhibit 99.1

![nlightlogoa15.jpg](nlightlogoa15.jpg)

**Exhibit 99.1**

**nLIGHT, Inc. Announces Fourth Quarter and Full Year 2022 Results**

*Revenues of $242.1 million for the full year 2022*

*Revenues of $56.7 million for the fourth quarter of 2022* 

**CAMAS*,* Wash*.,* February 23, 2023** - nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, today reported financial results for the fourth quarter and full year 2022.

"Our performance in 2022 reflects the continuing evolution of our business. Strong execution of our strategic growth initiatives enabled us to achieve 21% growth in Industrial and Microfabrication outside of China this year, which grew to a record $133 million, more than double the revenues we generated in these markets in 2020," commented Scott Keeney, nLIGHT's President and Chief Executive Officer. "We also achieved multiple milestones in Directed Energy – a key growth market for nLIGHT."

Mr. Keeney continued, "In the fourth quarter, led by record quarterly sales to Industrial customers outside of China, we delivered revenue above the mid-point of our previously announced guidance range. Although moving certain elements of our manufacturing out of China has been challenging, we made significant progress during the quarter. We completed installation of key automation equipment in our Camas facility and implemented a new ERP system as of January 1, 2023. We also executed a targeted reduction-in-force, and focused our product portfolio to better align with our near- and long-term growth opportunities. As a result, we incurred approximately $6 million of non-routine inventory charges and approximately $4 million of restructuring expenses during the quarter. Looking forward, we believe the strategic decisions we made in the fourth quarter better position us for long-term profitable growth."

**Full Year 2022 Financial Highlights**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | |
| **(In thousands, except percentages)** | **2022** | **2021** | **% Change** |
| Revenues | $242058 | $270146 | (10.4)% |
| Gross margin | 21.0% | 28.6% |  |
| Loss from operations | $(55102) | $(30217) | (82.4)% |
| Operating margin | (22.8)% | (11.2)% |  |
| Net loss | $(54579) | $(29669) | (84.0)% |
| Adjusted EBITDA<sup>(1)</sup> | $(8754) | $22562 | (138.8)% |
| Adjusted EBITDA, as a percentage of revenues | (3.6)% | 8.4% |  |
| <sup>(1)</sup> A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release. | <sup>(1)</sup> A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release. | <sup>(1)</sup> A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release. | <sup>(1)</sup> A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release. |

---

Revenues of $242.1 million for the full year 2022 were down 10.4% compared to $270.1 million for the full year 2021. Gross margin was 21.0% for the full year 2022 compared to 28.6% for the full year 2021. GAAP net loss for the full year 2022 was $54.6 million, or $1.23 per diluted share, compared to net loss of $29.7 million, or $0.70 per diluted share, for the full year 2021. Non-GAAP net loss for the full year 2022 was $22.3 million, or $0.50 per diluted share, compared to non-GAAP net income of $10.7 million, or $0.23 per diluted share, for the full year 2021. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metric have been provided in the tables included at the end of this release.

------

**Fourth Quarter 2022 Financial Highlights**

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | |
| **(In thousands, except percentages)** | **2022** | **2021** | **% Change** |
| Revenues | $56679 | $67453 | (16.0)% |
| Gross margin | 10.2% | 26.6% |  |
| Loss from operations | $(23495) | $(8665) | (171.1)% |
| Operating margin | (41.5)% | (12.8)% |  |
| Net loss | $(22659) | $(8750) | (159.0)% |
| Adjusted EBITDA<sup>(1)</sup> | $(9502) | $3071 | (409.4)% |
| Adjusted EBITDA, as a percentage of revenues | (16.8)% | 4.6% |  |
| <sup>(1)</sup> A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release. | <sup>(1)</sup> A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release. | <sup>(1)</sup> A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release. | <sup>(1)</sup> A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release. |

---

Revenues of $56.7 million for the fourth quarter of 2022 were down 16.0% compared to $67.5 million for the fourth quarter of 2021. Gross margin was 10.2% for the fourth quarter of 2022 compared to 26.6% for the fourth quarter of 2021. GAAP net loss for the fourth quarter of 2022 was $22.7 million, or $0.50 per diluted share, compared to net loss of $8.8 million, or $0.20 per diluted share, for the fourth quarter of 2021. Non-GAAP net loss for the fourth quarter of 2022 was $12.3 million, or $0.27 per diluted share, compared to non-GAAP net loss of $0.2 million, or $0.01 per diluted share, for the fourth quarter of 2021. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metrics have been provided in the tables included at the end of this release.

**Outlook**

For the first quarter of 2023, nLIGHT expects revenues to be in the range of $50 million to $56 million. The midpoint of $53 million includes Laser Products revenue of approximately $41 million and Advanced Development revenue of approximately $12 million. nLIGHT expects overall gross margin to be in the range of 17% to 20%, with Laser Products gross margin in the range of 20% to 24% and Advanced Development gross margin of approximately 7%. nLIGHT expects Adjusted EBITDA to be in the range of $(4) million to $(1) million.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

**Investor Conference Call at 2:00 p.m. Pacific Time, Thursday, February 23, 2023** 

Parties interested in listening to nLIGHT's quarterly conference call may do so by dialing 1-844-763-8274 (U.S., toll-free) or +1-412-717-9224 (international and toll), with the conference title: nLIGHT Fourth Quarter 2022 Earnings. The call can also be accessed via the web by going to nLIGHT's Investor Relations page at http://investors.nlight.net.

**Use of Non-GAAP Financial Results**

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP metrics presented herein are specific to us and may not be comparable to similar metrics disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense (benefit), other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation,

------

acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by the weighted-average number of shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period in the case of non-GAAP net income (loss) per share, diluted.

Tables presenting the reconciliation of net loss to Adjusted EBITDA, as well as the reconciliation of GAAP to non-GAAP net income (loss) and GAAP to non-GAAP net income (loss) per share, basic and diluted, are included at the end of this press release.

**Safe Harbor Statement**

Certain statements in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as "outlook," "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, and our business strategy and ability to grow our business, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels; widespread health crises, such as the COVID-19 pandemic, and their effect on our business, financial condition, or results of operations; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the "SEC"), including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and "nLIGHT" are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

**About nLIGHT**

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Camas, Washington, nLIGHT employs over 1,100 people with operations in the U.S., China, Finland, Korea and Italy. For more information, please visit www.nlight.net.

**For more information, contact:**

Joseph Corso

Chief Financial Officer

nLIGHT, Inc.

(360) 566-4460

joe.corso@nlight.net

------

**nLIGHT, Inc.**

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Products | $45375 | $50906 | $192658 | $206195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Development | 11304 | 16547 | 49400 | 63951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | 56679 | 67453 | 242058 | 270146 |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Products | 40471 | 34039 | 145272 | 132867 |
| &nbsp;&nbsp;&nbsp;&nbsp;Development | 10425 | 15472 | 45965 | 59972 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenue<sup>(1)</sup> | 50896 | 49511 | 191237 | 192839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 5783 | 17942 | 50821 | 77307 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development<sup>(1)</sup> | 13558 | 13984 | 53773 | 54814 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales, general, and administrative<sup>(1)</sup> | 11828 | 12623 | 48258 | 52710 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | 3892 |  | 3892 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 29278 | 26607 | 105923 | 107524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations | (23495) | (8665) | (55102) | (30217) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income (expense), net | 291 | (37) | 529 | (163) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 446 | 90 | 338 | 336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss before income taxes | (22758) | (8612) | (54235) | (30044) |
| Income tax expense (benefit) | (99) | 138 | 344 | (375) |
| Net loss | $(22659) | $(8750) | $(54579) | $(29669) |
| Net loss per share, basic | $(0.50) | $(0.20) | $(1.23) | $(0.70) |
| Net loss per share, diluted | $(0.50) | $(0.20) | $(1.23) | $(0.70) |
| Shares used in per share calculations: |  |  |  |  |
| Basic | 45039 | 43277 | 44436 | 42142 |
| Diluted | 45039 | 43277 | 44436 | 42142 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| <sup>(1)</sup>Includes stock-based compensation as follows: |  |  |  |  |
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenues | $572 | $725 | $2677 | $2505 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 2267 | 3025 | 11675 | 13433 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales, general, and administrative | 3190 | 4238 | 12405 | 21782 |
|  | $6029 | $7988 | $26757 | $37720 |

---

------

**nLIGHT, Inc.**

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2021** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $57826 | $146534 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketable Securities | 50391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net | 37913 | 41574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Inventory | 67600 | 73746 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets | 17026 | 15350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 230756 | 277204 |
| Restricted cash | 252 | 250 |
| Lease right-of-use assets | 13893 | 17048 |
| Property, plant and equipment, net | 60693 | 56101 |
| Intangible assets, net | 4041 | 6698 |
| Goodwill | 12376 | 12420 |
| Other assets, net | 7222 | 3897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $329233 | $373618 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $17507 | $26347 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities | 12820 | 14730 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 1407 | 1629 |
| &nbsp;&nbsp;&nbsp;&nbsp; Current portion of lease liabilities | 2758 | 3066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 34492 | 45772 |
| Non-current income taxes payable | 6699 | 7149 |
| Long-term lease liabilities | 12852 | 14612 |
| Other long-term liabilities | 4345 | 3952 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 58388 | 71485 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Common stock - par value | 16 | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 496211 | 470760 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive loss | (2748) | (587) |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (222634) | (168055) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity | 270845 | 302133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $329233 | $373618 |

---

------

**nLIGHT, Inc.**

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(54579) | $(29669) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 11085 | 9179 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 4614 | 5880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reduction in carrying amount of right-of-use assets | 3000 | 3253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recoveries of) losses on accounts receivable | 4 | (70) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 26757 | 37720 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 4 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets | 51 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash restructuring charges | 2758 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 2757 | (9509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 4623 | (18994) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (1753) | (3630) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets, net | (5219) | (570) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (5904) | 3463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other long-term liabilities | (577) | (199) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues | (208) | (909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | (1942) | (2934) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-current income taxes payable | (13) | (507) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (14542) | (7443) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of business, net of cash acquired | (664) | (291) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment | (21388) | (19317) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets and capitalization of patents | (332) | (2245) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of marketable securities | (99985) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and sales of marketable securities | 49988 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (72381) | (21853) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from public offerings, net of offering costs |  | 82354 |
| &nbsp;&nbsp;&nbsp;&nbsp;Principal payments on term loan, debt and financing leases |  | (428) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of contingent consideration related to acquisition |  | (326) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from employee stock plan purchases | 2358 | 1603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from stock option exercises | 1197 | 1145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax payments related to stock award issuances | (4861) | (10606) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | (1306) | 73742 |
| Effect of exchange rate changes on cash | (477) | (235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash, cash equivalents and restricted cash | (88706) | 44211 |
| Cash, cash equivalents and restricted cash, beginning of period | 146784 | 102573 |
| Cash, cash equivalents and restricted cash, end of period | $58078 | $146784 |
| **Supplemental disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid (received) for interest, net | $— | $117 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes | 442 | 526 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating cash outflows from operating leases | 3925 | 3513 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets obtained in exchange for lease liabilities | 1349 | 8012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued purchases of property, equipment and patents | 207 | 2522 |

---

------

**nLIGHT, Inc.**

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except per share data)

(Unaudited)

***Reconciliation of Net Loss to Adjusted EBITDA***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net loss | $(22659) | $(8750) | $(54579) | $(29669) |
| Income tax expense (benefit) | (99) | 138 | 344 | (375) |
| Other income, net | (446) | (90) | (338) | (336) |
| Interest (income) expense, net | (291) | 37 | (529) | 163 |
| Depreciation and amortization | 4072 | 3748 | 15699 | 15059 |
| Stock-based compensation | 6029 | 7988 | 26757 | 37720 |
| Restructuring charges | 3892 |  | 3892 |  |
| Adjusted EBITDA | $(9502) | $3071 | $(8754) | $22562 |

---

***Reconciliation of GAAP to Non-GAAP Net Income (Loss), and GAAP to Non-GAAP Net Income (Loss) per Share, Basic and Diluted***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Net loss | $(22659) | $(8750) | $(54579) | $(29669) |
| Add back: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation<sup>(1)</sup> | 6029 | 7988 | 26757 | 37720 |
| &nbsp;&nbsp;&nbsp;Amortization of purchased intangibles <sup>(1)</sup> | 435 | 518 | 1674 | 2671 |
| &nbsp;&nbsp;&nbsp;Restructuring charges | 3892 |  | 3892 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-GAAP net income (loss) | (12303) | (244) | (22256) | 10722 |
| GAAP weighted-average shares outstanding | 45039 | 43277 | 44436 | 42142 |
| Participating securities |  |  |  | 699 |
| Non-GAAP weighted-average number of shares, basic | 45039 | 43277 | 44436 | 42841 |
| Dilutive effect of common stock equivalents |  |  |  | 4341 |
| Non-GAAP weighted-average number of shares, diluted | 45039 | 43277 | 44436 | 47182 |
| Non-GAAP net income (loss) per share, basic | $(0.27) | $(0.01) | $(0.50) | $0.25 |
| Non-GAAP net income (loss) per share, diluted | $(0.27) | $(0.01) | $(0.50) | $0.23 |

---

<sup>(1)</sup> There is no income tax effect related to the stock-based compensation and amortization of purchased intangibles adjustments due to the full valuation allowance in the United States.

## Exhibit 99.2

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### Attached PDF Documents

**Attachment 1:** `ex992q4.pdf`

Exhibit 99.2

![img-0.jpeg](img-0.jpeg)

# Earnings Presentation
## Q4 2022

February 23, 2023

This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc.

# Safe Harbor Statement

Certain statements in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as "outlook," "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, and our business strategy and ability to grow our business, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels; widespread health crises, such as the COVID-19 pandemic, and their effect on our business, financial condition, or results of operations; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the "SEC"), including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

This presentation includes certain non-GAAP financial measures as defined by the SEC rules, including Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share (diluted). These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As required by Regulation G, we have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the appendix.

This presentation may also contain estimates, projections and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry and our business. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified the accuracy and completeness of the information obtained by third parties included in this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk.

The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products, solutions and services of nLIGHT, Inc.

nLIGHT

2

# nLIGHT 2022 Business Highlights

- **2022 Revenue** | continued transition of business model
  - Total revenue declined 10% to $242M as China revenue declined 62% to less than 10% of revenue
  - US Government funded development revenue declined 23% to $49M due to timing of programs
  - Product revenue outside of China grew 14% to a record $171M
- **Markets** | progress in key opportunities outside of China
  - *Microfabrication*: 11% y-o-y growth to customers outside of China
  - *Industrial*: 27% y-o-y growth to customers outside of China; new product introductions in cutting, welding and additive
  - *Aerospace & Defense*: significant milestone in key Directed Energy programs; well positioned for future opportunities
- **Operations** | progress to support long-term profitable growth
  - Qualified automated US manufacturing
  - Implemented new ERP system
  - Restructured organization to better align with market opportunities

nLIGHT

3

## Vertically Integrated | Chip through beam control

![img-1.jpeg](img-1.jpeg)

![img-2.jpeg](img-2.jpeg)

**nLIGHT**

Percentages may not sum to 100% due to rounding.

4

## Revenue | Record $221M of non-China revenue

### Annual Revenue - Geography

$ Millions

![img-3.jpeg](img-3.jpeg)

### Geography

2022 vs. 2021 Change
-10%

n LIGHT

Percentages may not sum to 100% due to rounding.

5

## Revenue | Non-China product growth increased 14% y-o-y

### Annual Revenue - Product, Development and China

$ Millions

![img-4.jpeg](img-4.jpeg)

n LIGHT

Note: Product excludes non-China development revenue.

6

# Revenue | 93% of total revenue from non-China customers

## Quarterly Revenue - Geography

$ Millions

![img-5.jpeg](img-5.jpeg)

### Geography

Q4 '22 vs. Q4 '21 Change
-16%

China
-43%

Non-China
-13%

n LIGHT

Percentages may not total to 100 due to rounding

7

# Revenue | Focused on growing applications

## Annual Revenue - Market

$ Millions

![img-6.jpeg](img-6.jpeg)

### Market

2022 vs. 2021 Change
-10%

### Microfabrication

-11%
+11% Non-China
-51% China

### Industrial

-4%
+27% Non-China
-70% China

### Aerospace/Defense

-16%
-4% Products
-23% Development

n LIGHT

Percentages may not sum to 100% due to rounding.

8

# Revenue | By end market

## Quarterly Revenue - By Market

$ Millions

![img-7.jpeg](img-7.jpeg)

### Market

Q4 '22 vs. Q4 '21 Change
-16%

### Microfabrication

- -34%
- -30% Non-China
- -44% China

### Industrial

- +6%
- +13% Non-China
- - 40% China

### Aerospace/Defense

- -22%
- -8% Products
- -32% Development

n LIGHT

Percentages may not total to 100 due to rounding

9

# Financial Update

## Summary Financial Results | Revenue and Gross Margin

### Full Year and Q4

$ Millions; % of Revenue

|  | Q4 2021 | Q4 2022 | 2021 | 2022 |
| --- | --- | --- | --- | --- |
| Total Revenue | $67.5 | $56.7 | $270.1 | $242.1 |
| Products Revenue | 50.9 | 45.4 | 206.2 | 192.7 |
| Development Revenue | 16.5 | 11.3 | 64.0 | 49.4 |
| Gross Margin | 26.6% | 10.2% | 28.6% | 21.0% |
| Products Margin | 33.1% | 10.8% | 35.6% | 24.6% |
| Development Margin | 6.5% | 7.8% | 6.2% | 7.0% |

**n LIGHT**

11

# Gross Margin | Product and Development

## Revenue and Gross Margin - Quarterly

$ Millions; % of Revenue

![img-0.jpeg](img-0.jpeg)

n LIGHT

12

# Operating Expenses | R&D and SG&A

## Operating Expenses (Non-GAAP)

$ Millions; % of Revenue

![img-1.jpeg](img-1.jpeg)

n LIGHT

Note: Excluding stock-based compensation expense, amortization of purchased intangibles and acquisition and integration-related costs. See Appendix for a reconciliation to GAAP operating expenses.

13

## Summary Financial Results | Profitability and Cash Flow

### Full Year and Q4

$ Millions; % of Revenue

|  | Q4 2021 | Q4 2022 | 2021 | 2022 |
| --- | --- | --- | --- | --- |
| Net Income (Loss) | ($8.8) | ($22.7) | ($29.7) | ($54.6) |
| Non-GAAP Net Income (Loss)* | (0.2) | (12.3) | 10.7 | (22.3) |
| Net Income (Loss) Per Share (diluted) | (0.20) | (0.50) | (0.70) | (1.23) |
| Non-GAAP Net Income (Loss) Per Share (diluted)* | (.01) | (0.27) | 0.23 | (0.50) |
| Adjusted EBITDA (non-GAAP)* | 3.1 | (9.5) | 22.6 | (8.8) |
| Cash Flow from (used in) Operations | (10.1) | 0.0 | (7.4) | (14.5) |
| Capital Expenditures | (7.6) | (4.9) | (19.3) | (21.4) |

**nLIGHT**

\* See Appendix for reconciliation to most directly comparable GAAP measure

14

# Strong Balance Sheet and Working Capital Management

Cash and Debt Position ($M)

![img-2.jpeg](img-2.jpeg)

Accounts Receivable ($M) and Days Sales Outstanding (DSO)

![img-3.jpeg](img-3.jpeg)

Inventory ($M) and Days of Inventory (DOI)

![img-4.jpeg](img-4.jpeg)

n LIGHT

15

# Outlook | Q1 2023

• Q1 2023 Revenues of $50 million to $56 million; midpoint of $53 million

- Laser Products: approximately $41 million at midpoint
- Advanced Development: approximately $12 million at midpoint

• Q1 2023 Gross Margin of 17% to 20%

- Laser Products: 20% to 24%
- Advanced Development: approximately 7%

• Q1 2023 Adjusted EBITDA of ($4) million to ($1) million

n LIGHT

* We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

16

n LIGHT

simply brilliant

# Appendix

# Supplemental Information | Revenue and Gross Margin

| vLight, Inc. (in thousands, except per share data) | 2018 |  |  |  |  | 2019 |  |  |  |  | 2020 |  |  |  |  | 2021 |  |  |  |  | 2022 |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals |
| Revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Products | $42,467 | $51,705 | $51,025 | $46,182 | $191,359 | $41,861 | $48,048 | $43,814 | $40,338 | $174,058 | $38,930 | $45,104 | $51,117 | $51,830 | $184,841 | $47,335 | $53,561 | $54,393 | $50,908 | $208,195 | $51,061 | $48,180 | $45,542 | $45,375 | $192,658 |
| Development | - | - | - | - | - | - | - | - | 3,988 | 2,992 | 6,286 | 7,034 | 10,615 | 14,014 | 37,948 | 14,015 | 15,002 | 17,842 | 16,047 | 63,961 | 13,396 | 12,647 | 12,051 | 11,304 | 49,400 |
| Total revenue | 42,467 | 51,705 | 51,025 | 46,182 | 191,359 | 41,861 | 48,048 | 43,814 | 40,888 | 176,818 | 43,215 | 52,138 | 61,732 | 65,704 | 222,788 | 61,345 | 69,113 | 72,235 | 67,453 | 270,149 | 64,459 | 60,527 | 60,583 | 58,678 | 242,050 |
| Cost of revenue: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Products | 27,738 | 34,026 | 32,878 | 29,698 | 124,398 | 28,347 | 32,177 | 30,852 | 30,637 | 122,013 | 27,905 | 32,397 | 34,645 | 33,113 | 128,255 | 30,395 | 34,240 | 34,193 | 34,030 | 132,867 | 35,768 | 33,683 | 34,750 | 40,471 | 145,272 |
| Development | - | - | - | - | - | - | - | - | 2,267 | 2,267 | 5,814 | 6,465 | 9,827 | 12,944 | 35,170 | 13,305 | 14,548 | 16,847 | 15,472 | 58,972 | 12,514 | 11,759 | 11,287 | 10,425 | 45,965 |
| Total cost of revenue | 27,738 | 34,026 | 32,878 | 29,698 | 124,398 | 28,347 | 32,177 | 30,852 | 30,854 | 124,285 | 33,714 | 39,082 | 44,572 | 46,553 | 163,425 | 43,700 | 48,788 | 50,840 | 49,511 | 152,938 | 46,282 | 45,442 | 46,517 | 53,698 | 191,237 |
| Gross profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Products | 14,729 | 17,679 | 18,547 | 16,558 | 88,061 | 13,514 | 15,871 | 12,962 | 9,688 | 52,046 | 9,030 | 12,507 | 16,472 | 18,577 | 56,588 | 16,040 | 19,321 | 20,293 | 16,867 | 73,328 | 15,293 | 14,497 | 13,292 | 4,504 | 47,388 |
| Development | - | - | - | - | - | - | - | - | 200 | 200 | 471 | 549 | 688 | 1,070 | 2,778 | 705 | 1,004 | 1,195 | 1,075 | 3,919 | 884 | 888 | 784 | 873 | 3,430 |
| Total gross profit | 14,729 | 17,679 | 18,547 | 16,558 | 88,061 | 13,514 | 15,871 | 12,962 | 9,688 | 52,204 | 8,501 | 13,056 | 17,160 | 19,647 | 59,364 | 17,645 | 20,320 | 21,285 | 17,942 | 77,307 | 16,177 | 15,385 | 14,076 | 5,793 | 50,021 |
| Gross margin: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Products | 34.7% | 34.2% | 35.4% | 35.8% | 35.0% | 32.3% | 33.0% | 29.6% | 24.0% | 26.9% | 24.5% | 27.7% | 32.2% | 35.9% | 30.8% | 35.8% | 38.1% | 37.1% | 33.1% | 35.6% | 30.0% | 30.1% | 27.7% | 10.8% | 24.6% |
| Development | - | - | - | - | - | - | - | - | 11.4% | 11.4% | 7.5% | 7.8% | 8.0% | 7.0% | 7.3% | 5.0% | 6.5% | 6.7% | 6.5% | 6.2% | 6.6% | 7.0% | 6.3% | 7.8% | 7.0% |
| Total gross margin | 34.7% | 34.2% | 35.4% | 35.8% | 35.0% | 32.3% | 33.0% | 29.6% | 23.3% | 30.6% | 22.0% | 23.0% | 27.8% | 29.9% | 30.0% | 28.9% | 29.4% | 29.6% | 30.4% | 28.6% | 22.7% | 23.3% | 23.4% | 10.2% | 21.0% |

nLIGHT

19

# GAAP to Non-GAAP Reconciliation | Operating Expenses

| nLight, Inc. (in thousands, except per share data) | 2018 |  |  |  |  | 2019 |  |  |  |  | 2020 |  |  |  |  | 2021 |  |  |  |  | 2022 |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals |
| GAAP research and development ('R&D') expense | $4,283 | $4,866 | $5,475 | $6,396 | $21,054 | $6,422 | $6,494 | $6,402 | $8,819 | $28,137 | $8,538 | $9,472 | $11,126 | $12,028 | $41,164 | $11,718 | $14,282 | $14,838 | $13,984 | $54,814 | $13,711 | $13,788 | $12,716 | $13,558 | $53,772 |
| Non-GAAP adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Stock-based compensation in R&D | (25) | (200) | (513) | (555) | (1,293) | (558) | (711) | (424) | (1,606) | (3,299) | (1,782) | (2,275) | (2,545) | (3,101) | (9,703) | (2,918) | (3,708) | (3,782) | (3,025) | (13,433) | (3,122) | (3,117) | (3,169) | (2,267) | (11,675) |
| Amortization of purchased intangibles | - | - | - | - | - | - | - | - | (328) | (328) | (656) | (656) | (696) | (716) | (2,724) | (717) | (718) | (718) | (518) | (2,671) | (472) | (407) | (360) | (435) | (1,674) |
| Non-GAAP R&D expense | $4,258 | $4,696 | $4,962 | $5,843 | $19,761 | $5,864 | $5,783 | $5,978 | $6,885 | $24,510 | $6,168 | $6,541 | $7,888 | $8,211 | $28,737 | $8,075 | $9,856 | $10,338 | $10,441 | $38,710 | $10,117 | $10,264 | $9,187 | $10,856 | $40,424 |
| GAAP selling, general and administrative ('SG&A') expense | 6,239 | 7,232 | 7,483 | 7,096 | 28,844 | 8,144 | 8,572 | 7,257 | 10,139 | 34,111 | 7,798 | 9,633 | 10,810 | 11,905 | 39,248 | 11,714 | 15,057 | 13,316 | 12,623 | 52,718 | 10,775 | 11,914 | 13,741 | 11,828 | 46,258 |
| Non-GAAP adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Stock-based compensation in SG&A | (115) | (544) | (1,207) | (1,196) | (3,056) | (1,142) | (1,403) | (315) | (2,370) | (5,230) | (1,636) | (3,423) | (3,633) | (5,448) | (14,140) | (4,645) | (7,349) | (5,550) | (4,238) | (21,782) | (2,722) | (2,879) | (3,614) | (3,196) | (12,485) |
| Acquisition and integration-related costs | - | - | - | - | - | - | - | - | (475) | (475) | (50.00) | - | - | - | (50) | - | - | - | - | - | - | - | - | - | - |
| Non-GAAP SG&A expense | $6,124 | $6,688 | $6,276 | $6,700 | $25,788 | $7,502 | $7,169 | $6,942 | $7,269 | $28,411 | $6,014 | $6,210 | $6,377 | $6,457 | $25,058 | $7,069 | $7,708 | $7,786 | $8,385 | $30,928 | $8,553 | $9,035 | $10,127 | $8,638 | $35,852 |

20

# GAAP to Non-GAAP Reconciliation | Adjusted EBITDA, Net Income and EPS

| mLIGHT, Inc. (in thousands, except per share data) | 2019 |  |  |  |  | 2020 |  |  |  |  | 2021 |  |  |  |  | 2022 |  |  |  |  | 2023 |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total | Q1 | Q2 | Q3 | Q4 | Total |
| Net income (loss) | $2,916 | $4,653 | $4,939 | $2,363 | $13,038 | $(1,235) | $(185) | $(778) | $(10,718) | $(12,844) | $(7,475) | $(8,033) | $(2,110) | $(4,517) | $(20,922) | $(8,149) | $(7,896) | $(8,065) | $(8,793) | $(29,606) | $(8,622) | $(10,342) | $(12,935) | $(22,609) | $(54,078) |
| Adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Income tax expense (benefit) | 1,149 | 648 | 839 | 764 | 3,089 | 1,753 | 755 | 637 | 2,736 | 6,119 | 505 | 418 | (1,485) | 502 | 344 | 322 | (1,036) | 253 | 138 | (375) | 343 | (13) | 110 | (98) | 344 |
| Other (income) expense | (76) | 42 | 537 | (293) | (53) | (629) | 907 | (55) | (532) | (595) | 118 | 299 | (477) | (315) | (378) | (28) | (118) | (102) | (95) | (336) | (28) | 108 | 31 | (446) | (358) |
| Interest (income) expense, net | 219 | 6 | (238) | (693) | (728) | (755) | (745) | (693) | (494) | (2,899) | (203) | 85 | 98 | 44 | (78) | 74 | 32 | 20 | 37 | 163 | (5) | (71) | (107) | (251) | (529) |
| Depreciation and amortization | 1,948 | 2,172 | 2,194 | 1,078 | 8,288 | 2,212 | 2,209 | 2,313 | 2,775 | 9,504 | 3,161 | 3,285 | 3,504 | 3,752 | 13,883 | 3,717 | 3,695 | 3,899 | 3,748 | 15,008 | 3,738 | 3,805 | 4,084 | 4,072 | 15,899 |
| Stock-based compensation | 162 | 508 | 1,903 | 1,034 | 4,665 | 1,909 | 2,381 | 1,079 | 4,361 | 9,738 | 3,753 | 6,037 | 6,663 | 8,061 | 25,464 | 8,934 | 11,606 | 10,072 | 7,988 | 37,738 | 6,553 | 6,690 | 7,405 | 8,029 | 26,797 |
| Restructuring charges | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 3,882 | 3,897 |
| Adjusted EBITDA | $6,316 | $5,027 | $5,184 | $6,133 | $30,158 | $3,089 | $3,405 | $2,806 | $(1,382) | $9,505 | $337 | $3,336 | $6,311 | $6,427 | $16,131 | $5,302 | $5,267 | $7,212 | $3,011 | $22,363 | $1,982 | $160 | $(1,402) | $(2,503) | $(8,744) |
| Net income (loss) | $2,916 | $4,653 | $4,939 | $2,363 | $13,038 | $(1,235) | $(185) | $(778) | $(10,718) | $(12,844) | $(7,475) | $(8,033) | $(2,110) | $(4,517) | $(20,922) | $(8,149) | $(7,896) | $(8,065) | $(8,793) | $(29,606) | $(8,622) | $(10,342) | $(12,935) | $(22,609) | $(54,078) |
| Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Stock-based compensation (1) | 162 | 508 | 1,903 | 1,034 | 4,665 | 1,909 | 2,381 | 1,079 | 4,361 | 9,738 | 3,753 | 6,037 | 6,663 | 8,061 | 25,464 | 8,934 | 11,606 | 10,072 | 7,988 | 37,738 | 6,553 | 6,690 | 7,405 | 8,029 | 26,797 |
| Valuation allowance on foreign deferred tax assets | - | - | - | - | - | - | - | - | 3,423 | 3,423 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisition and integration-related costs | - | - | - | - | - | - | - | - | 470 | 470 | 50 | - | - | - | 50 | - | - | - | - | - | - | - | - | - | - |
| Amortization of purchased intangibles | - | - | - | - | - | - | - | - | 328 | 328 | 656 | 630 | 696 | 716 | 2,724 | 717 | 718 | 718 | 518 | 2,671 | 472 | 407 | 350 | 420 | 1,674 |
| Restructuring charges | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 3,882 | 3,897 |
| Non-GAAP net income (loss) | $3,078 | $5,459 | $5,912 | $4,294 | $18,742 | $874 | $2,226 | $381 | $(2,134) | $1,967 | $(3,004) | $(137) | $5,369 | $5,188 | $7,396 | $2,622 | $4,434 | $3,910 | $(248) | $16,722 | $(1,087) | $(3,255) | $(5,100) | $(10,300) | $(22,294) |
| GAAP weighted-average shares outstanding | 3,031 | 24,491 | 35,937 | 36,441 | 28,862 | 36,694 | 37,065 | 37,262 | 37,460 | 37,118 | 37,046 | 38,177 | 38,506 | 36,677 | 38,387 | 40,048 | 42,313 | 42,884 | 43,277 | 42,142 | 43,665 | 44,178 | 44,766 | 45,038 | 44,436 |
| Debt | 24,642 | 7,040 | - | - | 6,056 | - | - | 644 | - | 678 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Participating securities | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Non-GAAP weighted-average number of shares, basic | 27,975 | 32,431 | 35,937 | 36,441 | 32,918 | 36,894 | 37,085 | 37,168 | 37,463 | 37,438 | 37,046 | 38,177 | 38,507 | 36,532 | 38,813 | 40,101 | 42,927 | 43,858 | 43,277 | 42,041 | 43,665 | 44,178 | 44,766 | 45,038 | 44,436 |
| Dividend effect of common stock equivalents | 4,492 | 5,265 | 5,320 | 4,708 | 5,087 | 4,585 | 4,391 | 4,018 | - | 4,392 | - | - | 4,280 | 4,054 | 4,338 | 4,691 | 4,334 | 3,986 | - | 4,341 | - | - | - | - | - |
| Non-GAAP weighted-average number of shares, diluted | 32,165 | 37,098 | 40,332 | 41,235 | 38,019 | 41,279 | 41,406 | 41,722 | 37,463 | 41,788 | 37,046 | 38,177 | 43,477 | 44,184 | 43,139 | 45,302 | 47,261 | 47,644 | 43,277 | 47,162 | 43,665 | 44,178 | 44,766 | 45,038 | 44,436 |
| Non-GAAP net income (loss) per share, basic | $0.11 | $0.17 | $0.17 | $0.12 | $0.07 | $0.02 | $0.06 | $0.01 | $(0.06) | $0.03 | $(0.08) | $0.03 | $0.13 | $0.13 | $0.16 | $0.06 | $0.10 | $0.09 | $(0.01) | $0.25 | $(0.04) | $(0.07) | $(0.11) | $(0.27) | $(0.50) |
| Non-GAAP net income (loss) per share, diluted | 0.10 | 0.14 | 0.15 | 0.10 | 0.10 | 0.02 | 0.05 | 0.01 | (0.05) | 0.03 | (0.08) | 0.03 | 0.12 | 0.12 | 0.17 | 0.06 | 0.08 | 0.08 | (0.01) | 0.23 | (0.04) | (0.07) | (0.11) | (0.27) | (0.50) |

(1) There is no income tax effect related to the stock-based compensation, acquisition and integration-related costs, and amortization of purchased intangibles adjustments due to the full valuation allowance in the U.S.

21

# Supplemental Information | Key Revenue Metrics

| nLight, Inc. (in thousands, except per share data) | 2018 |  |  |  |  | 2019 |  |  |  |  | 2020 |  |  |  |  | 2021 |  |  |  |  | 2022 |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals | Q1 | Q2 | Q3 | Q4 | Totals |
| Revenues by end market |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Industrial | $19,146 | $25,251 | $20,890 | $17,476 | $82,762 | $18,124 | $20,920 | $19,977 | $18,647 | $76,669 | $15,990 | $22,030 | $21,880 | $23,978 | $84,478 | $21,400 | $24,907 | $26,737 | $21,751 | $94,795 | $23,996 | $21,899 | $22,217 | $22,980 | $91,098 |
| Microfabrication | 15,619 | 19,497 | 19,922 | 19,071 | 74,109 | 14,533 | 16,094 | 13,280 | 11,246 | 57,152 | 10,419 | 14,300 | 14,052 | 12,878 | 51,649 | 15,215 | 20,274 | 17,695 | 17,228 | 70,412 | 17,319 | 16,415 | 17,662 | 11,303 | 62,769 |
| Aerospace and defense | 7,703 | 6,957 | 10,213 | 9,615 | 34,409 | 9,204 | 9,034 | 11,556 | 13,003 | 42,798 | 16,806 | 15,208 | 25,600 | 28,848 | 86,662 | 24,730 | 23,932 | 27,803 | 26,474 | 104,939 | 23,144 | 22,513 | 20,194 | 22,340 | 88,191 |
| Total revenues | 42,467 | 51,705 | 51,025 | 46,162 | 191,359 | 41,861 | 48,048 | 43,814 | 42,896 | 176,619 | 43,215 | 52,138 | 61,732 | 65,704 | 222,786 | 61,345 | 69,113 | 72,235 | 67,453 | 270,146 | 64,459 | 60,827 | 60,093 | 56,679 | 242,058 |
| Industrial as % of total | 45% | 49% | 41% | 38% | 43% | 43% | 44% | 43% | 43% | 43% | 37% | 43% | 35% | 36% | 38% | 35% | 36% | 37% | 32% | 35% | 37% | 36% | 37% | 41% | 38% |
| Microfabrication as % of total | 37% | 38% | 39% | 41% | 39% | 35% | 38% | 30% | 26% | 32% | 24% | 27% | 23% | 20% | 23% | 25% | 29% | 25% | 26% | 26% | 27% | 27% | 29% | 20% | 26% |
| Aerospace and defense as % of total | 18% | 13% | 20% | 21% | 18% | 22% | 19% | 26% | 30% | 24% | 39% | 29% | 42% | 44% | 39% | 40% | 35% | 38% | 42% | 39% | 36% | 37% | 34% | 39% | 36% |
| Revenues by geography |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| North America | $16,109 | $16,101 | $20,101 | $18,052 | $70,262 | $15,697 | $17,899 | $16,249 | $17,217 | $67,062 | $21,046 | $20,494 | $31,384 | $34,700 | $107,624 | $31,134 | $33,055 | $37,430 | $41,573 | $143,232 | $35,144 | $35,682 | $32,793 | $33,835 | $137,454 |
| China | 15,212 | 23,923 | 16,683 | 14,726 | 70,538 | 13,725 | 18,444 | 17,519 | 14,883 | 64,572 | 12,042 | 21,495 | 19,186 | 18,169 | 78,882 | 15,577 | 18,759 | 13,709 | 7,401 | 55,446 | 7,139 | 4,872 | 5,230 | 4,246 | 21,207 |
| Rest of World | 11,146 | 11,682 | 14,241 | 13,396 | 50,459 | 12,438 | 11,705 | 10,945 | 10,795 | 44,985 | 10,127 | 10,149 | 11,162 | 12,845 | 44,282 | 14,634 | 17,259 | 21,096 | 18,479 | 71,488 | 22,176 | 20,473 | 22,070 | 18,598 | 83,317 |
| Total revenues | 42,467 | 51,705 | 51,025 | 46,162 | 191,359 | 41,861 | 48,048 | 43,814 | 42,896 | 176,619 | 43,215 | 52,138 | 61,732 | 65,704 | 222,786 | 61,345 | 69,113 | 72,235 | 67,453 | 270,146 | 64,459 | 60,827 | 60,093 | 56,679 | 242,058 |
| North America as % of total | 38% | 31% | 39% | 39% | 37% | 37% | 37% | 37% | 40% | 38% | 49% | 39% | 51% | 53% | 48% | 51% | 48% | 52% | 62% | 53% | 55% | 59% | 55% | 60% | 57% |
| China as % of total | 36% | 46% | 33% | 32% | 37% | 33% | 38% | 40% | 35% | 37% | 28% | 41% | 31% | 28% | 32% | 25% | 27% | 19% | 11% | 21% | 11% | 8% | 9% | 7% | 9% |
| Rest of World as % of total | 26% | 23% | 28% | 29% | 26% | 30% | 24% | 23% | 25% | 25% | 23% | 19% | 18% | 20% | 20% | 24% | 25% | 29% | 27% | 26% | 34% | 34% | 37% | 33% | 34% |
| Fiber laser revenue by power level |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| High-power (>= 6kW) | 17% | 24% | 30% | 27% | 24% | 24% | 35% | 40% | 47% | 37% | 49% | 54% | 58% | 47% | 52% | 54% | 51% | 50% | 40% | 49% | 39% | 40% | 31% | 49% | 40% |
| Medium-power (2kW - 5kW) | 49% | 44% | 43% | 51% | 47% | 57% | 48% | 39% | 36% | 45% | 39% | 35% | 34% | 39% | 36% | 29% | 32% | 23% | 29% | 28% | 26% | 19% | 24% | 21% | 23% |
| Low-power (< 2kW) | 34% | 32% | 27% | 22% | 29% | 19% | 17% | 20% | 14% | 17% | 12% | 11% | 8% | 14% | 11% | 17% | 17% | 27% | 31% | 23% | 35% | 41% | 45% | 30% | 28% |

nLIGHT

Note: Percentages may not total to 100 due to rounding.

22

# Supplemental Information | Revenue by power level

## Fiber Laser Revenue by Power - Quarterly

Percent of total fiber laser sales

![img-0.jpeg](img-0.jpeg)

n LIGHT

Note: Percentages may not total to 100 due to rounding.

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