# EDGAR Filing Document

**Accession Number:** 0001788999
**File Stem:** 0000950170-23-003445
**Filing Date:** 2023-2
**Character Count:** 28270
**Document Hash:** baacc525653e4d397de68c3b312a0139
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000950170-23-003445.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0000950170-23-003445

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230221

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

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230221

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Xperi Inc.
- **CENTRAL INDEX KEY:** 0001788999
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 834470363
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41486
- **FILM NUMBER:** 23648301

**BUSINESS ADDRESS:**
- **STREET 1:** 2190 GOLD STREET
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95002
- **BUSINESS PHONE:** 4085199100

**MAIL ADDRESS:**
- **STREET 1:** 2190 GOLD STREET
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95002

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Xperi, Inc.
- **DATE OF NAME CHANGE:** 20220608

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TiVo Product HoldCo LLC
- **DATE OF NAME CHANGE:** 20190920

?xml version="1.0" encoding="ASCII"? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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**FORM** 8-K

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**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 21, 2023<br>

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Xperi Inc.

**(Exact name of Registrant as Specified in Its Charter)**

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---

| | | |
|:---|:---|:---|
| Delaware | 001-41486 | 83-4470363 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 2190 Gold Street |  |  |
| San Jose**,** California |  | 95002 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** 408 519-9100<br>

N/A<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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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:

☐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:**

---

| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Stock, par value $0.001 per share | XPER | New York Stock Exchange |

---

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).

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. ☐

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

On February 21, 2023, Xperi Inc. (the "Company") announced its financial results for the fourth quarter and full fiscal year 2022 for the period ended December 31, 2022. A copy of the Company's press release announcing these financial results and other information regarding its financial condition is attached hereto as Exhibit 99.1 to this Form 8-K.

The information in this Item 2.02, including Exhibit 99.1, 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 into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

**Item 9.01 Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit**<br>**<u>No.</u>** | **Description** |
| 99.1 | [<u>Press Release dated February 21, 2023</u>](xper-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

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**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.

---

| | | |
|:---|:---|:---|
| Date: February 21, 2023 | **Xperi Inc.** | **Xperi Inc.** |
|  | By: | /s/ Robert Andersen |
|  | Name: | Robert Andersen |
|  | Title: | Chief Financial Officer |

---

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## Ex-99

**Exhibit 99.1**

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| | |
|:---|:---|
| **FOR IMMEDIATE RELEASE** | ![img20700832_0.jpg](img20700832_0.jpg)  |

---

**XPERI inc. Announces Fourth Quarter and Full Year 2022 Results**

**Strong financial performance in first quarter as an independent company**

**Awarded first design win for TiVo's video platform in Connected Car**

**San Jose, Calif. (February 21, 2023) –** Xperi Inc. (NYSE: XPER) (the "Company" or "Xperi"), an entertainment technology company that invents, develops, and delivers technologies that enable extraordinary experiences, today announced fourth quarter and full year 2022 financial results for the period ended December 31, 2022.

"Our first quarter as an independent company was underscored by substantial market progress, notable design wins, and strong financial performance," said Jon Kirchner, chief executive officer of Xperi. "Consumers are demanding higher quality digital experiences and our customers and partners are increasingly selecting our independent media platforms to meet that demand. We are intensely focused on expanding our platform adoption and our recent design wins in Smart TV and Connected Car are a testament to the ongoing success of our growth strategy."

**<u>Financial Highlights</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Revenue of $136M during the fourth quarter was up 9% from the year-ago period, while full year 2022 revenue of $502M was up 3% from the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Fourth quarter GAAP Net Loss was ($297M), or ($7.06) per share, and non-GAAP Net Income<sup>1</sup> was $4M, or $0.08 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Adjusted EBITDA<sup>1</sup>was $4M for the fourth quarter, resulting in an Adjusted EBITDA margin of 3%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company booked a non-cash charge of $258M in the fourth quarter for goodwill impairment and real estate restructuring in connection with its year-end review.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Full year results include the Xperi product business on a carve-out basis for the first 9 months, during which time it was part of Xperi Holding Corporation, now known as Adeia Inc. (Nasdaq: ADEA).

<sup>1</sup>See discussion of "Non-GAAP Financial Measures" and GAAP to non-GAAP Reconciliation below.

**<u>Recent Key Operating Achievements</u>** 

**Media Platform**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•TiVo OS will be integrated onto Amlogic's 4K and 2K chipsets designed for Smart TVs, significantly reducing cost and time-to-market for TV OEMs looking to roll-out TiVo's independent media platform.

**Connected Car**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Xperi was awarded its first design win for TiVo's video platform in Connected Car with a major European automobile manufacturer, with vehicles expected to ship in late 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DTS AutoStage is now in production with five car brands and being deployed in more than 100 models across 140 countries, demonstrating the global value of our solution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company was awarded a new design win for DTS AutoSense, Xperi's Driver Monitoring System (DMS) and Occupant Monitoring System (OMS), with a major Asian automotive OEM, which will significantly expand Xperi's DMS and OMS footprint beginning in 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Xperi ended 2022 with committed business in Connected Car, consisting of HD Radio, DTS AutoStage, and DTS AutoSense, totaling more than $300M.

**Pay TV**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•TiVo IPTV continued its double-digit subscriber growth in the quarter and finished FY22 with subscribers up 80% and revenue more than doubling compared to FY21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•TiVo's IPTV platform won the Fierce Innovation Award for Customer Engagement.

------

**Consumer Electronics**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•DTS:X, Xperi's immersive audio technology, will be integrated in LG's new line of OLED and premium LCD TVs, expected to be in the market in the first half of 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The Company announced that Sony Pictures Entertainment, IMAX Corp., and DTS have extended their agreement to distribute multiple new titles in the IMAX Enhanced format, featuring DTS' premium audio technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Xperi announced DTS:X is expected to launch on Disney+ in 2023.

**<u>Financial Outlook</u>**

The Company is providing the following guidance for fiscal year 2023.

---

| | | |
|:---|:---|:---|
| **Category ($ in millions)** | **GAAP Outlook** | **Non-GAAP Outlook** |
| Revenue | 510 to 540 | 510 to 540 |
| Adjusted EBITDA Margin1,2 | n/a | 6% to 10% |

---

<br><sup>1</sup> See discussion of "Non-GAAP Financial Measures" below.

<sup>2</sup> With respect to Adjusted EBITDA Margin, the Company has determined that it is unable to provide a quantitative reconciliation of this forward-looking non-GAAP measure to the most directly comparable forward-looking GAAP measure with a reasonable degree of confidence in its accuracy without unreasonable effort, as items including restructuring and impacts from discrete tax adjustments and tax law changes are inherently uncertain and depend on various factors, many of which are beyond the Company's control.<br>

**Conference Call Information**

The Company will hold its fourth quarter and full year 2022 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Tuesday, February 21, 2023. To access the call toll-free, please dial 1-888-660-6513, otherwise dial +1 929-203-0876. The conference ID is 5483252. All participants should dial in 15 minutes prior to the start of the conference call and can use the conference ID to access the call. The Company also suggests using the webcast link to access the call at <u>Q4 Earnings Call Webcast</u>.

**Safe Harbor Statement**

This press release contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company's current expectations, assumptions, estimates and projections that involve risks and uncertainties. In some cases, you can identify forward-looking statements by the words "expect," "anticipate," "intend," "plan," "believe," "could," "seek," "see," "will," "may," "would," "might," "potentially," "estimate," "continue," "expect," "target," similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks, uncertainties and other factors are described under the captions "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in the documents we file with the Securities and Exchange Commission from time to time. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

**About Xperi Inc.**

Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands and partnerships (DTS®, HD Radio™, TiVo®), and by its startup, Perceive, and IMAX Enhanced, an IMAX and DTS partnership, are integrated into billions of consumer devices and media platforms worldwide, powering smart devices, connected cars and entertainment experiences. Xperi has created a unified ecosystem that reaches highly engaged consumers driving increased value for partners, customers and consumers. <br>

Xperi, DTS, HD Radio, Perceive, TiVo, and their respective logos are trademarks or registered trademarks of affiliated companies and partners of Xperi Inc. in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

**Non-GAAP Financial Measures**

In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company's earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charges; amortization of capitalized cloud computing costs; costs related to actual or planned acquisitions, financing, and divestitures including transaction fees, integration costs, severance, facility closures, and retention bonuses; separation costs; all forms of stock-based compensation; impairment of assets and goodwill; other items not indicative of our ongoing operating performance, and related tax effects for each adjustment. Management

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believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company's ongoing business and financial performance and provide a better understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as Adjusted EBITDA, do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis.

Set forth below are reconciliations of the Company's reported GAAP to non-GAAP financial metrics.

**Xperi Investor Contact:**

Mike Iburg

VP, Investor Relations

+1 408-321-3827

ir@xperi.com

**Media Contact:**

Amy Brennan

Senior Director, Corporate Communications

+1 949-518-6846

amy.brennan@xperi.com

– Tables Follow –

**SOURCE: XPERI INC.**

**XPER-E**

**# # #**

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**XPERI INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(in thousands, except per share amounts)**

**(unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31,<br>2022** | **December 31,<br>2021** | **December 31,<br>2022** | **December 31,<br>2021** |
| Revenue | $135531 | $124745 | $502260 | $486483 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue, excluding depreciation and amortization of intangible assets | 37258 | 37643 | 122946 | 125626 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 57713 | 50498 | 216355 | 194869 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 60506 | 51834 | 217402 | 199921 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 4804 | 5526 | 20501 | 22584 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | 16044 | 22045 | 62209 | 105311 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 7724 | - | 7724 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill Impairment | 250555 | - | 604555 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 434604 | 167546 | 1251692 | 648311 |
| Operating loss | (299073) | (42801) | (749432) | (161828) |
| Other income, net | 2117 | 1078 | 1815 | 1590 |
| Loss before taxes | (296956) | (41723) | (747617) | (160238) |
| Provision for income taxes | 1090 | 10679 | 13589 | 18840 |
| Net Loss | (298046) | (52402) | (761206) | (179078) |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: net loss attributable to noncontrolling interest | (1016) | (630) | (3722) | (3456) |
| Net loss attributable to the Company | $(297030) | $(51772) | $(757484) | $(175622) |
| Loss per share attributable to the Company: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted loss per share | $(7.06) | $(1.23) | $(18.02) | $(4.18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Number of Basic and Diluted shares outstanding | 42043 | 42024 | 42029 | 42024 |

---

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**XPERI INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(in thousands)**

**(unaudited)**

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $160127 | $120695 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 64712 | 79494 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unbilled contracts receivable, net | 65251 | 50962 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 42174 | 25985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 332264 | 277136 |
| Long-term unbilled contracts receivable | 4289 | 3825 |
| Property and equipment, net | 47827 | 57477 |
| Operating lease right-of-use assets | 52901 | 61758 |
| Intangible assets, net | 264376 | 270934 |
| Long-term deferred tax assets | 2096 | 1847 |
| Goodwill | - | 536512 |
| Other long-term assets | 33158 | 19223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $736911 | $1228712 |
| **LIABILITIES AND EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $14864 | $7362 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 110014 | 84404 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 25363 | 28211 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 150241 | 119977 |
| Deferred revenue, less current portion | 19129 | 23663 |
| Long-term deferred tax liabilities | 20559 | 14428 |
| Long-term debt | 50000 | - |
| Noncurrent operating lease liabilities | 42666 | 49017 |
| Other long-term liabilities | 5330 | 5670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 287925 | 212755 |
| Commitments and contingencies |  |  |
| Company stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment by Former Parent | - | 1025838 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock | 42 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 1136330 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (4119) | (676) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (668835) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Company stockholders' equity | 463418 | 1025162 |
| Noncontrolling interest | (14432) | (9205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity | 448986 | 1015957 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $736911 | $1228712 |

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**XPERI INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(in thousands)**

**(unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31, 2022** | **December 31, 2021** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(761206) | $(179078) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property and equipment | 20501 | 22584 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets | 62209 | 105311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 45303 | 33509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | 604555 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets | 7724 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (1602) | 6913 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 24 | (1754) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 17505 | (2416) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unbilled contracts receivable | (12473) | 15475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (20439) | 15296 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 6633 | (4018) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other liabilities | 11123 | (37249) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (8302) | 1974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from operating activities | (28445) | (23453) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (14207) | (8893) |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of intangible assets | (166) | (186) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash paid for acquisitions | (50473) | (12401) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from investing activities | (64846) | (21480) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from capital contributions by Former Parent | 83235 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;Net transfers from Former Parent | 52802 | 83330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Withholding taxes related to net share settlement of restrict awards | (286) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash from financing activities | 135751 | 83330 |
| Effect of exchange rate changes on cash and cash equivalents | (3028) | (3326) |
| Net increase in cash and cash equivalents | 39432 | 35071 |
| Cash and cash equivalents at beginning of period | 120695 | 85624 |
| Cash and cash equivalents at end of period | $160127 | $120695 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt incurred in connection with acquisition | $50000 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $756 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net of refunds | $13416 | $11801 |

---

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**XPERI INC.**

**GAAP TO NON-GAAP RECONCILIATIONS**

**(in thousands, except per share amounts)**

**(unaudited)**

---

| | |
|:---|:---|
| **Net income attributable to the Company:** |  |
|  | **Three Months Ended** |
|  | **December 31, 2022** |
| GAAP net loss attributable to the Company | $(297030) |
| Adjustments to GAAP net loss attributable to the Company: |  |
| Stock-based compensation expense: |  |
| &nbsp;&nbsp;Cost of revenue | 729 |
| &nbsp;&nbsp;Research, development and other | 5266 |
| &nbsp;&nbsp;Selling, general and administrative | 9547 |
| Amortization of intangible assets | 16044 |
| Impairment of long-lived assets | 7724 |
| Goodwill impairment | 250555 |
| Acquisition and separation-related costs: |  |
| &nbsp;&nbsp;Transaction and other related costs recorded in selling, general and administrative | 2234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance and retention recorded in research, development and other | 2009 |
| &nbsp;&nbsp;&nbsp;&nbsp;Severance and retention recorded in selling, general and administrative | 291 |
| &nbsp;&nbsp;Separation-related bonus adjustment recorded in cost of revenue, excluding depreciation and amortization of intangible assets | (24) |
| &nbsp;&nbsp;Separation-related bonus adjustment recorded in research and development | (67) |
| &nbsp;&nbsp;Separation-related bonus adjustment recorded in selling, general and administrative | 91 |
| Non-GAAP tax adjustment (1) | 6340 |
| Non-GAAP net income attributable to the Company | $3709 |
| **Diluted earnings per share attributable to the Company:** |  |
|  | **Three Months Ended** |
|  | **December 31, 2022** |
| GAAP loss per share attributable to the Company | $(7.06) |
| Adjustments to GAAP loss per share attributable to the Company: |  |
| Stock-based compensation expense | 0.37 |
| Amortization expense | 0.38 |
| Impairment of long-lived assets | 0.18 |
| Goodwill impairment | 5.96 |
| Acquisition and separation-related costs | 0.11 |
| Non-GAAP tax adjustment | 0.15 |
| Difference in shares used in the calculation | (0.01) |
| Non-GAAP diluted earnings per share attributable to the Company | $0.08 |
| GAAP weighted average number of shares-basic/diluted | 42043 |
| Non-GAAP weighted average number of shares-diluted | 46470 |

---

(1) The provision for income taxes is adjusted to reflect the net direct and indirect income tax effects of the various non-GAAP pretax adjustments.

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**XPERI INC.**

**GAAP TO NON-GAAP RECONCILIATIONS**

**(in thousands)**

**(unaudited)**

---

| | |
|:---|:---|
|  | **Three Months Ended** |
|  | **December 31, 2022** |
| **GAAP loss before taxes** | $(296956) |
| Interest expense | 839 |
| Depreciation expense | 4804 |
| Amortization of intangible assets | 16044 |
| Amortization of capitalized cloud computing costs | 527 |
| Impairment of long-lived assets | 7724 |
| Goodwill impairment | 250555 |
| Acquisition and integration-related costs: |  |
| &nbsp;&nbsp;Transaction and other related costs recorded in selling, general and administrative | 2234 |
| &nbsp;&nbsp;Severance and retention recorded in research and development | 2009 |
| &nbsp;&nbsp;Severance and retention recorded in selling, general and administrative | 291 |
| &nbsp;&nbsp;Separation-related bonus adjustment recorded in cost of revenue, excluding depreciation and amortization of intangible assets | (24) |
| &nbsp;&nbsp;Separation-related bonus adjustment recorded in research and development | (67) |
| &nbsp;&nbsp;Separation-related bonus adjustment recorded in selling, general and administrative | 91 |
| Stock-based compensation expense: |  |
| &nbsp;&nbsp;Cost of revenue | 729 |
| &nbsp;&nbsp;Research and development | 5266 |
| &nbsp;&nbsp;Selling, general and administrative | 9547 |
| **Non-GAAP Adjusted EBITDA** | $3613 |

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