Risk Factors Update Summary

• Transitioning to new wafer fabrication technologies may result in reduced manufacturing yields and increased costs.
• Difficulty integrating GeneSiC may lead to challenges in aligning processes and teams, impacting growth.
• The GaN device market was estimated to be about $260 million in 2023, up from $20 million in 2020.
• Navitas estimates that GaN-based mobile chargers in excess of 30W will reach system cost parity with silicon-based chargers during 2023.
• Increased reliance on China for sales and workforce poses risks due to economic and regulatory uncertainties.
• The GaN and SiC market is estimated to grow around 29% annually through 2026 to $2.1 billion in 2024.
• Navitas entered into long-term supply agreements to increase raw material availability and manufacturing capacity by 5x starting in 2023.
• Quality issues in new product manufacturing, especially for automotive applications, could harm business results.
• Navitas has shipped over 125 million GaN units and has a 20-year limited warranty on GaNFast power ICs.
• Navitas has over 250 issued or pending patents, with a key element of its intellectual property focused on GaN power circuitry.
• Uncertainty in managing supply needs may lead to inventory risks and harm financial results.
• Lack of long-term purchase commitments exposes Navitas to revenue fluctuations and inventory risks.
• Reliance on single or sole-source procurement for components may lead to shortages or price increases.
• Risks associated with international operations, including political tensions and regulatory changes, may impact business.