THPTF Techpoint Inc (PK)

 

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 14, 2025

 

Techpoint, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware	000-55843	80-0806545
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

 

2550 N. First Street, #550 San Jose, CA	95131
(Address of principal executive offices)	(Zip Code)

 

Registrant’s Telephone Number, Including, Area Code: (408)324-0588

N/A

(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:

 

☐	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(s)		Name of each exchange on which registered
Japanese Depositary Shares, each representing one share of Common Stock, $0.0001 par value per share		M-6697		Tokyo Stock Exchange (Growth Market)

 

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 14, 2025 (Japanese Standard Time), Techpoint, Inc. (together with its wholly-owned subsidiaries, the “Company”) filed with the Tokyo Stock Exchange a Japanese report referred to as “Kessan Tanshin,” which contained the Company’s unaudited financial results for the year ended December 31, 2024 (the “Tanshin”). A copy of the English translation of the Tanshin is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

The information in this Form 8-K, 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 and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be expressly set forth by specific reference in such a filing.

Item 7.01 Regulation FD Disclosure.

The information in Item 2.02 is incorporated by reference into this Item 7.01.

 

Non-GAAP Financial Information

The following tables contain a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP (generally accepted accounting principles in the United States) financial measures (dollars in thousands).

 

 

Year Ended December 31, 2024		Income From Operations				Net Income
GAAP		$	19,077			$	19,181
Stock-based compensation expense			1,587				1,587
Adjustment for taxes (1)			—				(214	)
Non-GAAP		$	20,664			$	20,554
(1) Adjustment for taxes based on an 13.49% effective tax rate for fiscal year 2024.

 

Year Ended December 31, 2023		Income From Operations				Net Income
GAAP		$	18,025			$	17,809
Stock-based compensation expense			1,552				1,552
Adjustment for taxes (1)			—				(179	)
Non-GAAP		$	19,577			$	19,182
(1) Adjustment for taxes based on an 11.56% effective tax rate for fiscal year 2023.

 

 

Note on non-GAAP financial information

 

The Company uses non-GAAP measures of adjusted income from operations and net income, which are adjusted from results based on GAAP to exclude certain expenses. These non-GAAP financial measures are provided to enhance the overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company’s management believes that non-GAAP results provide useful information to the Company’s board of directors, management and investors as these non-GAAP results exclude certain expenses that management believes are not indicative of the Company’s core operating results and can be impacted by factors beyond management’s direct control, such as the trading value of the Company’s shares. These non-GAAP results are some of the primary measurements management uses to assess the Company’s performance, allocate resources and plan for future periods. Reported non-GAAP results should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies in the Company’s industry. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures on a forward-looking basis is not available due to high variability and low visibility with respect to the charges which are excluded from these non-GAAP measures.

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Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description
99.1		English Translation of Tanshin, dated February 14, 2025.
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

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SIGNATURE

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 thereunto duly authorized.

 

		Techpoint, Inc.
Date: February 14, 2025		By:	/s/ Fumihiro Kozato
			Fumihiro Kozato
			President and Chief Executive Officer (Principal Executive Officer)

 

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Exhibit 99.1

 

Financial Results for the Year Ended December 31, 2024 (Unaudited)

February 14, 2025

 

Company Name:		Techpoint, Inc.
Listed Exchange:		Growth market of the Tokyo Stock Exchange
Identification Code:		6697
Website URL:		www.techpoint.co.jp
Representative:		Fumihiro Kozato, President and Chief Executive Officer
Contact:		Hiroshi Kondo, Vice President Corporate Marketing and
		President of Techpoint Japan KK
		03-6205-8405
Expected Date of Annual Shareholders Meeting:		TBD
Expected Date of Annual Securities Report Filing:		March 5, 2025
Expected Start Date of Dividend Payment:		February 14, 2025
Supplementary Materials for Financial Results:		Included
Earnings Announcement for Financial Results:		Included

 

(Unit: thousands, % change as compared to the previous year)

 

		Revenue								Income from Operations								Income Before Income Taxes								Net Income								Non-GAAP Net Income
Year Ended December 31,		Amount				% Change				Amount				% Change				Amount				% Change				Amount				% Change				Amount				% Change
2024		$	70,613				7.6	%		$	19,077				5.8	%		$	22,172				10.1	%		$	19,181				7.7	%		$	20,554				7.2	%
		¥	11,169,564							¥	3,017,600							¥	3,507,167							¥	3,034,051							¥	3,251,232
2023		$	65,645				0.9	%		$	18,025				(6.8	)%		$	20,137				2.8	%		$	17,809				0.8	%		$	19,182				(0.6	)%
		¥	10,383,726							¥	2,851,195							¥	3,185,271							¥	2,817,028							¥	3,034,209

The Company’s consolidated financial statements are prepared in U.S. dollars. For amounts disclosed in Japanese yen, an exchange rate of ¥158.18 Japanese yen to $1.00 U.S. dollar was used based on the Telegraphic Transfer Middle Rate quoted by Mitsubishi UFJ Financial Group’s official index as of December 30, 2024. This rate is also used for amounts disclosed in Japanese yen for prior periods in order to exclude the impact from the change in foreign currency exchange rates when comparing financial results in the current period to those in the prior period, which is permitted according to the current disclosure requirements for Tanshin in Japan.

The Company’s comprehensive income for the year ended December 31, 2024 and 2023 was $19.2 million (¥3,031.4 million) and $18.0 million (¥2,843.1 million), respectively. The Company’s non-GAAP operating income for the year ended December 31, 2024 was $20.7 million (¥3,268.6 million) based on the exclusion of stock-based compensation of $1.6 million (¥251.0 million). The Company’s non-GAAP net income for the year ended December 31, 2024 was $20.6 million (¥3,251.2 million) based on the exclusion of stock-based compensation of $1.6 million (¥251.0 million) and the related income tax impact based on a 13.49% effective tax rate. The Company’s non-GAAP operating income for the year ended December 31, 2023 was $19.6 million (¥3,096.7 million) based on the exclusion of stock-based compensation of $1.6 million (¥245.5 million). The Company’s non-GAAP net income for the year ended December 31, 2023 was $19.2 million (¥3,034.2 million) based on the exclusion of stock-based compensation of $1.6 million (¥245.5 million) and the related income tax impact based on a 11.56% effective tax rate.

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(Unit: $ or ¥, except for % data)

 

Year Ended December 31,		Basic EPS				Diluted EPS				Non-GAAP Basic EPS				Non-GAAP Diluted EPS				Ratio of Net Income to Equity				Ratio of Income Before Tax to Total Assets				Operating Margin
2024		$	1.03			$	1.01			$	1.11			$	1.09				24.6	%			24.7	%			27.0	%
		¥	163			¥	160			¥	176			¥	172
2023		$	0.97			$	0.95			$	1.05			$	1.03				26.5	%			25.7	%			27.5	%
		¥	153			¥	150			¥	166			¥	163

(Unit: thousands, except per share and % data)

 

Year Ended December 31,		Total Assets				Net Assets				Total Stockholders' Equity				Stockholders' Equity Ratio				Stockholders' Equity Per Share
2024		$	95,594			$	83,645			$	83,645				87.5	%		$	4.49
		¥	15,121,059			¥	13,230,966			¥	13,230,966							¥	710
2023		$	83,807			$	72,295			$	72,295				86.3	%		$	3.93
		¥	13,256,591			¥	11,435,623			¥	11,435,623							¥	622

(Unit: thousands)

 

Year Ended December 31,		Net Cash Provided by Operating Activities				Net Cash provided by (Used in) Investing Activities				Net Cash Used in Financing Activities				Cash and Cash Equivalents
2024		$	14,664			$	48,831			$	(9,346	)		$	67,820
		¥	2,319,551			¥	7,724,088			¥	(1,478,350	)		¥	10,727,768
2023		$	21,720			$	(18,183	)		$	(9,258	)		$	13,671
		¥	3,435,670			¥	(2,876,187	)		¥	(1,464,431	)		¥	2,162,479

 

(Unit: $ or ¥, except for % data)

 

		Annual Dividend and Record Date																												Ratio of Total Dividends
Year Ended December 31,		First Quarter				Second Quarter				Third Quarter				Year- End				Total				Total Dividends				Payout Ratio				to Net Assets
2023		$	0.25			$	0.25			$	-			$	-			$	0.50			$	9,137				51.0	%			13.6	%
		¥	40			¥	40			¥	-			¥	-			¥	79			¥	1,445,291
2024		$	0.25			$	0.25			$	-			$	-			$	0.50			$	9,230				48.5	%			11.9	%
		¥	40			¥	40			¥	-			¥	-			¥	79			¥	1,460,001
2025 (Forecast)		$	0.25			$	0.25			$	-			$	-			$	0.50			$	-
		¥	40			¥	40			¥	-			¥	-			¥	79			¥	-

 

 

 

 

 

 

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		December 31, 2024				December 31, 2023
Common stock			18,618,356				18,395,682
Treasury stock			—				—
Weighted average shares outstanding used in computing basic net income per share			18,521,997				18,316,464

Audit Procedures:

This Tanshin is not in the scope of audit procedures by the Company’s independent auditors under the Financial Instruments and Exchange Act of Japan. Additionally, as of the date of this Tanshin, audit procedures performed in accordance with the standards of the Public Company Accounting Oversight Board (“PCAOB”) in the United States have yet to be completed. The Company’s independent auditors have not compiled or been involved in the preparation of the forecasted financial results for the year ending December 31, 2025. Accordingly, they assume no responsibility for the accuracy or presentation of this information.

Forward Looking Statements:

The Tanshin includes forward-looking statements that involve a number of risks and uncertainties, many of which are beyond the Company’s control. The Company’s actual results may differ from those anticipated or expressed in these forward-looking statements as a result of various factors. All statements other than statements of historical facts contained in the Tanshin, including statements regarding the Company’s future results of operations, revenue and financial position, strategy and plans, the Company’s expectations for future operations and plans to declare dividends, are forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect the Company’s financial condition, results of operations, strategy, short-term and long-term business operations and objectives, and financial needs. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in the Tanshin may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Any forward-looking statement made by the Company in the Tanshin speaks only as of the date on which it is made. The Company disclaims any duty to update any of these forward-looking statements after the date of the Tanshin, except as required by law.

Investors Meeting:

Please refer to the Company’s website for details on its Investors Meetings for holders of the Company’s Japanese depositary shares (“JDSs”).

 

 

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Appendix Index

 

		Page
1.	Management’s Discussion and Analysis of:
(1)	Financial Condition and Results of Operations	2
(2)	Liquidity and Capital Resources	3
(3)	Dividends	4
2.	Accounting Standards	5
3.	Consolidated Financial Statements and Supplementary Data (Unaudited)
(1)	Consolidated Balance Sheets	6
(2)	Consolidated Statements of Operations and Comprehensive Income	7
(3)	Consolidated Statements of Stockholders’ Equity	8
(4)	Consolidated Statements of Cash Flows	9
(5)	Notes to Consolidated Financial Statements	10

 

 

 

The Company’s consolidated financial statements are prepared in U.S. dollars. For amounts disclosed in Japanese yen, an exchange rate of ¥158.18 Japanese yen to $1.00 U.S. dollar was used based on the Telegraphic Transfer Middle Rate quoted by Mitsubishi UFJ Financial Group’s official index as of December 30, 2024. This rate is also used for amounts disclosed in Japanese yen for prior periods in order to exclude the impact from the change in foreign currency exchange rates when comparing financial results in the current period to those in the prior periods, which is permitted according to the current disclosure requirements for Tanshin in Japan. The Company’s JDSs are traded on the Growth market of the Tokyo Stock Exchange. Each JDS represents one share of common stock.

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Revenue

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Automotive		$	51,908			$	45,169			$	6,739				15	%
Security surveillance			18,705				20,476				(1,771	)			(9	)%
Revenue		$	70,613			$	65,645			$	4,968				8	%

Revenue increased $5.0 million, or 8%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. This was attributable to a $6.7 million increase in automotive market revenue as a result of an increase in the volume of shipments offset by a decrease in average selling price attributable to product mix. Security surveillance market revenue decreased by $1.8 million due to a decrease in the volume of shipments and a decrease in average selling prices attributable to product mix.

Product pricing increases or decreases in the Company’s target markets in response to increased or decreased manufacturing costs. Additionally, fluctuations in the Company’s overall average selling price are directly attributable to changes in product mix given the natural pricing variation of the products in the Company’s portfolio and customer base. When the product mix shifts towards higher priced products in the Company’s portfolio, the average selling price will be higher than when the product mix shifts towards lower price point products.

Revenue by geographic region

The table below sets forth the major components of revenues by the geographic region to which products were delivered as a percentage of total revenues for the year ended December 31, 2024 and 2023:

		Year Ended
		December 31,
		2024				2023
China			72	%			74	%
Taiwan			15				14
South Korea			8				9
Japan			2				2
Other			3				1
Total revenue			100	%			100	%

Cost of revenue and gross margin

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Cost of revenue		$	32,635			$	31,027			$	1,608				5	%
Gross margin			54	%			53	%

Cost of revenue increased $1.6 million, or 5%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023. Gross margin increased to 54% for the year ended December 31, 2024 from 53% for the year ended December 31, 2023, due to changes in product mix, and average unit selling prices. The Company expects gross margins to fluctuate in future periods due to changes in product mix, average unit selling prices, manufacturing costs, adjustments to inventory, if any, and end market product demand.

 

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Research and development expense

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Research and development		$	8,452			$	7,180			$	1,272				18	%

Research and development expense increased $1.3 million, or 18%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023, due to a $0.5 million increase in tape-out and design service cost, a $0.5 million increase in software cost, and a $0.3 million increase in personnel cost.

Selling, general and administrative expense

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Selling, general and administrative		$	10,449			$	9,413			$	1,036				11	%

Selling, general and administrative expenses increased by $1.0 million, or 11%, for the year ended 2024 as compared to the year ended December 31, 2023, due to a $0.6 million increase in professional service cost, a $0.3 million increase in personnel cost, and a $0.1 million increase in other general administrative expenses.

Other income – net

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Other income - net		$	3,095			$	2,112			$	983				47	%

Other income - net for the year ended December 31, 2024 increased by $1.0 million, or 47% as compared to the year ended December 31, 2023, primarily due to a $0.8 million increase in interest income, and a $0.1 million increase due to reimbursement of fixed asset purchased and depreciated previously.

 

Provision for income taxes

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Provision for income taxes		$	2,991			$	2,328			$	663				28	%

The provision for income taxes increased by $0.7 million, or 28%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023, primarily due to an increase in profit before taxes.

Net Income

		Year Ended December 31,								Change
		2024				2023				Amount				%
		(dollars in thousands)
Net income		$	19,181			$	17,809			$	1,372				8	%

As a result of the foregoing, net income increased by $1.4 million, or 8% for the year ended December 31, 2024 as compared to the year ended December 31, 2023.

The Company's cash, cash equivalents and short-term investments as of December 31, 2024 were $72.3 million. The Company believes its existing cash, cash equivalents, short-term investments and the cash it expects to generate from operations will be sufficient to meet its anticipated cash needs for at least the next 12 months.

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Operating activities

The Company expects cash inflows from operating activities to be affected by fluctuations in sales. The Company’s primary uses of cash from operating activities have been for personnel costs and investments in research and development and sales and marketing.

During the year ended December 31, 2024, net cash provided by operating activities was $14.7 million, due to net income of $19.2 million, non-cash charges of $1.1 million, and net cash outflows from changes in operating assets and liabilities of $5.6 million.

Non-cash charges totaled $1.1 million, primarily consisting of stock-based compensation of $1.6 million, amortization of operating lease right-of-use assets of $0.7 million, and depreciation and amortization of $0.4 million, partially offset by accretion of premium on available-for-sale investments of $1.3 million, and increase in deferred tax assets of $0.2 million.

Net cash outflows from changes in operating assets and liabilities totaled $5.6 million, primarily consisting of a $4.8 million increase in inventory, net of valuation adjustment, as units manufactured during the period and on hand were more than product sales, a $0.5 million increase in accounts receivable, a $0.5 million decrease in other liabilities, and a $0.3 million increase in prepaid expenses. Outflows were partially offset by the inflow from a $0.4 million increase in customer deposit, and a $0.2 million increase in accounts payable.

Investing activities

During the year ended December 31, 2024, cash provided by investing activities was $48.8 million, primarily attributable to proceeds from maturity of debt securities, net of investments in debt securities.

Financing activities

During the year ended December 31, 2024,cash used in financing activities was approximately $9.3 million, primarily due to payment of dividends totaling $9.2 million in February and July of 2024.

 

Dividend policy

The Company’s Board of Directors (the “Board”) has adopted a dividend policy to link dividend payments to business performance on an ongoing basis. The amount to be paid in future dividends will be reviewed by the Board, with an aggregate dividend target amount for each fiscal year equal to approximately 50% of the Company’s annual non-GAAP net income for the prior fiscal year. The Company anticipates making payment of future dividends in two installments following its December 31 year end. This policy can be modified or terminated at any time at the discretion of the Board, including the Board’s determination to cease paying dividends in the future. The payments will be made in accordance with and subject to the terms of the Trust Agreement dated August 31, 2017 between the Company; Mizuho Securities Co., Ltd.; Mitsubishi UFJ Trust and Banking Corporation; and The Master Trust Bank of Japan, Ltd., which agreement governs the rights of JDS holders.

2025 dividend

On December 17, 2024, the Company announced a cash dividend of an aggregate of $0.50 per share for fiscal year 2025, payable in two equal installments of $0.25 per share. The first installment of the dividend has been accrued as of December 31, 2024 in the amount of $4.7 million and is payable to stockholders of record as of January 31, 2025. The payment date for the first installment on its shares of common stock (including common stock underlying its JDSs) will be on or around February 14, 2025. The second installment of the dividend is not accrued as of December 31, 2024 because it is anticipated to be paid in the third fiscal quarter of 2025 and the declaration of the second installment is subject to the Board approval and applicable law. The Board reserves the right to cancel dividend payments prior to the applicable payment date in its discretion. The Company intends to provide additional information about the second installment of the dividend in the second fiscal quarter of 2025. The timing for receipt of the dividend payments by individual holders of common stock and

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JDSs will vary due to the payment process for JDS holders. The amount paid to JDS holders will be reduced by any applicable U.S. withholding income tax, and then converted into Japanese yen. Once the dividend is converted into Japanese yen, a distribution payment fee and any additional local taxes will be paid from the distribution amount. As a result, the net amount of the first dividend installment that is ultimately received by JDS holders will be less than $0.25 per JDS. The Company anticipates that JDS holders will receive the payment of the first installment of the fiscal year 2025 dividend in their accounts in late-March 2025.

None.

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(Unit: thousands, except share data)

 

		December 31, 2024								December 31, 2023
		$				¥				$				¥
Assets
Current assets:
Cash and cash equivalents		$	67,820			¥	10,727,768			$	13,671			¥	2,162,479
Short-term investments			4,520				714,973				51,788				8,191,826
Accounts receivable			487				77,034				40				6,327
Inventory			14,242				2,252,799				9,518				1,505,557
Prepaid expenses and other current assets			1,314				207,849				939				148,531
Total current assets			88,383				13,980,423				75,956				12,014,720
Property and equipment, net			433				68,492				522				82,570
Deferred tax assets			3,809				602,508				3,620				572,612
Right-of-use assets			985				155,807				1,045				165,298
Goodwill			891				140,938				891				140,938
Intangible assets, net			927				146,633				1,036				163,874
Long-term investments			—				—				500				79,090
Other assets			166				26,258				237				37,489
Total assets		$	95,594			¥	15,121,059			$	83,807			¥	13,256,591
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,726			¥	273,019			$	1,707			¥	270,013
Accrued liabilities			2,614				413,482				2,322				367,294
Customer deposits			1,828				289,153				1,448				229,045
Lease liabilities			654				103,450				497				78,615
Dividend payable			4,655				736,328				4,599				727,470
Total current liabilities			11,477				1,815,432				10,573				1,672,437
Other liabilities			472				74,661				939				148,531
Total liabilities			11,949				1,890,093				11,512				1,820,968
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.0001 par value per share - 5,000,000 shares authorized as of December 31, 2024 and 2023; nil shares issued and outstanding as of December 31, 2024 and 2023.			—				—				—				—
Common stock, $0.0001 par value per share - 75,000,000 shares authorized as of December 31, 2024 and 2023; 18,618,356 and 18,395,682 shares issued and outstanding as of December 31, 2024 and 2023, respectively			2				316				2				316
Additional paid-in capital			28,948				4,578,995				27,477				4,346,312
Accumulated other comprehensive			1				158				18				2,847
Retained earnings			54,694				8,651,497				44,798				7,086,148
Total stockholders’ equity			83,645				13,230,966				72,295				11,435,623
Total liabilities and stockholders' equity		$	95,594			¥	15,121,059			$	83,807			¥	13,256,591

 

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(Unit: thousands, except share and per share data)

 

		Year Ended December 31, 2024								Year Ended December 31, 2023
		$				¥				$				¥
Revenue		$	70,613			¥	11,169,564			$	65,645			¥	10,383,726
Cost of revenue		$	32,635				5,162,204				31,027				4,907,851
Gross profit			37,978				6,007,360				34,618				5,475,875
Operating expenses
Research and development			8,452				1,336,937				7,180				1,135,732
Selling, general and administrative			10,449				1,652,823				9,413				1,488,948
Total operating expenses			18,901				2,989,760				16,593				2,624,680
Income from operations			19,077				3,017,600				18,025				2,851,195
Other income - net			3,095				489,567				2,112				334,076
Income before income taxes			22,172				3,507,167				20,137				3,185,271
Income taxes			2,991				473,116				2,328				368,243
Net income		$	19,181			¥	3,034,051			$	17,809			¥	2,817,028
Basic		$	1.03			¥	163			$	0.97			¥	153
Diluted		$	1.01			¥	160			$	0.95			¥	150
Weighted-average shares outstanding used in computing net income per share:
Basic			18,521,997								18,316,464
Diluted			18,928,648								18,657,220
Comprehensive income:
Net income		$	19,181			¥	3,034,051			$	17,809			¥	2,817,028
Other comprehensive (loss) income, net of tax:
Unrealized loss on available-for-sale debt securities, net of tax benefit (expense) of $5, and ($44) for years ended December 31, 2024 and 2023, respectively			(17	)			(2,689	)			165				26,099
Comprehensive income		$	19,164			¥	3,031,362			$	17,974			¥	2,843,127

 

 

 

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(Unit: thousands, except share data)

		Common Stock								Additional Paid-In				Accumulated Other Comprehensive				Retained				Total Stockholders'
		Shares				Amount				Capital				Income (Loss)				Earnings				Equity
Balances as of December 31, 2022			18,198,737			$	2			$	26,046			$	(147	)		$	36,175			$	62,076
						¥	316			¥	4,119,957			¥	(23,252	)		¥	5,722,162			¥	9,819,183
Other comprehensive income - unrealized gain on available-for-sale Debt securities			—			$	—			$	—			$	165			$	—			$	165
						¥	—			¥	—			¥	26,099			¥	—			¥	26,099
Issuance of common stock upon exercise of stock options			33,540			$	—			$	45			$	—			$	—			$	45
						¥	—			¥	7,118			¥	—			¥	—			¥	7,118
Issuance of common stock upon vesting of restricted stock units			186,750			$	—			$	—			$	—			$	—			$	—
						¥	—			¥	—			¥	—			¥	—			¥	—
Shares repurchased for tax withholdings on vesting of restricted stock units			(23,345	)		$	—			$	(166	)		$	—			$	—			$	(166	)
						¥	—			¥	(26,258	)		¥	—			¥	—			¥	(26,258	)
Stock-based compensation			—			$	—			$	1,552			$	—			$	—			$	1,552
						¥	—			¥	245,495			¥	—			¥	—			¥	245,495
Cash dividends declared ($0.50 per share)			—			$	—			$	—			$	—			$	(9,186	)		$	(9,186	)
						¥	—			¥	—			¥	—			¥	(1,453,042	)		¥	(1,453,042	)
Net income			—			$	—			$	—			$	—			$	17,809			$	17,809
						¥	—			¥	—			¥	—			¥	2,817,028			¥	2,817,028
Balances as of December 31, 2023			18,395,682			$	2			$	27,477			$	18			$	44,798			$	72,295
						¥	316			¥	4,346,312			¥	2,847			¥	7,086,148			¥	11,435,623
Other comprehensive loss - unrealized loss on available-for-sale debt securities			—			$	—			$	—			$	(17	)		$	—			$	(17	)
						¥	—			¥	—			¥	(2,689	)		¥	—			¥	(2,689	)
Issuance of common stock upon exercise of stock options			41,300			$	—			$	111			$	—			$	—			$	111
						¥	—			¥	17,558			¥	—			¥	—			¥	17,558
Issuance of common stock upon vesting of restricted stock units			208,137			$	—			$	—			$	—			$	—			$	—
						¥	—			¥	—			¥	—			¥	—			¥	—
Shares repurchased for tax withholdings on vesting of restricted stock units			(26,763	)		$	—			$	(227	)		$	—			$	—			$	(227	)
						¥	—			¥	(35,907	)		¥	—			¥	—			¥	(35,907	)
Stock-based compensation			—			$	—			$	1,587			$	—			$	—			$	1,587
						¥	—			¥	251,032			¥	—			¥	—			¥	251,032
Cash dividends declared ($0.50 per share)			—			$	—			$	—			$	—			$	(9,285	)		$	(9,285	)
						¥	—			¥	—			¥	—			¥	(1,468,702	)		¥	(1,468,702	)
Net income			—			$	—			$	—			$	—			$	19,181			$	19,181
						¥	—			¥	—			¥	—			¥	3,034,051			¥	3,034,051
Balances as of December 31, 2024			18,618,356			$	2			$	28,948			$	1			$	54,694			$	83,645
						¥	316			¥	4,578,995			¥	158			¥	8,651,497			¥	13,230,966

 

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(Unit: thousands, except share data)

 

		Year Ended December 31, 2024								Year Ended December 31, 2023
		$				¥				$				¥
Cash Flows From Operating Activities
Net income		$	19,181			¥	3,034,051			$	17,809			¥	2,817,028
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			352				55,679				419				66,277
Stock-based compensation			1,587				251,032				1,552				245,495
Accretion of premium on available-for-sale investments			(1,280	)			(202,470	)			(761	)			(120,375	)
Gain on disposal of fixed assets			(132	)			(20,880	)			—				—
Inventory valuation adjustment			50				7,909				863				136,509
Deferred income taxes			(152	)			(24,043	)			(1,399	)			(221,293	)
Noncash lease expense			711				112,466				752				118,951
Other			(69	)			(10,914	)			—				—
Changes in operating assets and liabilities:
Accounts receivable			(447	)			(70,707	)			84				13,287
Inventory			(4,774	)			(755,152	)			3,330				526,739
Prepaid expenses and other current assets			(325	)			(51,410	)			(423	)			(66,910	)
Other assets			71				11,231				(50	)			(7,909	)
Accounts payable			209				33,060				(348	)			(55,047	)
Accrued expenses			(8	)			(1,265	)			771				121,957
Customer deposits			380				60,108				(97	)			(15,343	)
Lease liabilities			(184	)			(29,105	)			(1,017	)			(160,868	)
Other liabilities			(506	)			(80,039	)			235				37,172
Net cash provided by operating activities			14,664				2,319,551				21,720				3,435,670
Cash Flows From Investing Activities
Purchase of property and equipment			(213	)			(33,692	)			(311	)			(49,194	)
Acquisition of business and intangible assets			—				—				(1,700	)			(268,906	)
Purchase of debt securities			(30,772	)			(4,867,515	)			(47,939	)			(7,582,991	)
Proceeds from maturities of debt securities			79,816				12,625,295				31,767				5,024,904
Net cash provided by (used in) investing activities			48,831				7,724,088				(18,183	)			(2,876,187	)
Cash Flows From Financing Activities
Payment of dividends			(9,230	)			(1,460,001	)			(9,137	)			(1,445,291	)
Net proceeds from exercise of stock options			111				17,558				45				7,118
Payment for shares withheld for tax withholdings on vesting of restricted stock units			(227	)			(35,907	)			(166	)			(26,258	)
Net cash used in financing activities			(9,346	)			(1,478,350	)			(9,258	)			(1,464,431	)
Net decrease in cash and cash equivalents			54,149				8,565,289				(5,721	)			(904,948	)
Cash and cash equivalents at beginning of period			13,671				2,162,479				19,392				3,067,427
Cash and cash equivalents at end of period		$	67,820			¥	10,727,768			$	13,671			¥	2,162,479
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes		$	3,763			¥	595,231			$	3,410			¥	539,394
Supplemental Disclosure of Noncash Investing and Financing Information
Right-of-use assets obtained in exchange for lease liabilities		$	651			¥	102,975			$	814			¥	128,759
Cash dividend declared but not yet paid		$	4,655			¥	736,328			$	4,599			¥	727,470
Indemnification obligation for acquisition of business and intangible assets		$	—			¥	—			$	300			¥	47,454
Vendor credit received when disposal of fixed asset		$	58			¥	9,174			$	—			¥	—

 

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(5) Notes to Consolidated Financial Statements

Going concern

Not applicable.

Basis of consolidation and accounting standards

The Company’s consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated. The functional currency of each of the Company’s subsidiaries is the U.S. dollar. Foreign currency gains or losses are recorded as other income (expense) in the Consolidated Statements of Operations and Comprehensive Income.

Segment information

The Company’s chief operating decision maker, the chief executive officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance on a regular basis. Accordingly, the Company considers itself to be one reportable segment, which is comprised of one operating segment, the designing, marketing and selling of mixed-signal integrated circuits for the security surveillance and automotive markets.

Product revenue from customers is designated based on the geographic region to which the product is delivered. Revenue by geographic region was as follows (in thousands):

 

		Year Ended
		December 31,
		2024				2023
China		$	51,255			$	49,060
Taiwan			10,793				9,034
South Korea			5,321				5,614
Japan			1,275				1,193
Other			1,969				744
Total revenue		$	70,613			$	65,645

 

Revenue by principal product lines were as follows (in thousands):

 

		Year Ended
		December 31,
		2024				2023
Automotive		$	51,908			$	45,169
Security surveillance			18,705				20,476
Total revenue		$	70,613			$	65,645

 

 

 

 

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Net income per share

The following table presents the calculation of basic and diluted net income per share (amounts in thousands, except per share data):

 

		Year Ended
		December 31,
		2024				2023
Numerator:
Basic and diluted:
Net income		$	19,181			$	17,809
Denominator:
Basic shares:
Weighted-average shares used in computing basic net income per share			18,521,997				18,316,464
Diluted shares:
Effect of potentially dilutive securities:
Stock options and restricted stock units			406,651				340,756
Weighted-average shares used in computing diluted net income per share			18,928,648				18,657,220
Net income per share:
Basic		$	1.03			$	0.97
Diluted		$	1.01			$	0.95
Non-GAAP net income (1):
Non-GAAP net income		$	20,554			$	19,182
Basic shares:
Weighted-average shares used in computing basic non-GAAP net income per share			18,521,997				18,316,464
Non-GAAP net income per share:
Non-GAAP Basic		$	1.11			$	1.05

 

Subsequent events

Merger Agreement

On January 15, 2025, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with ASMedia Technology Inc., a Taiwanese corporation (“Parent”), and Apex Merger Sub Inc., a Delaware corporation (“Merger Sub”). The Merger Agreement provides that, subject to the terms and conditions set forth in the Merger Agreement, Merger Sub will be merged with and into the Company (the “Merger”), with the Company surviving the Merger and becoming a wholly owned subsidiary of Parent.

The Board unanimously determined that the transactions contemplated by the Merger Agreement, including the Merger, are advisable, fair to, and in the best interests of the Company and the Company’s stockholders, approved the Merger Agreement and the transactions contemplated by the Merger Agreement and recommended that the Company’s stockholders vote to adopt and approve the Merger Agreement and the Merger.

 

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v3.25.0.1

Document and Entity Information	Feb. 09, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 14, 2025
Entity Registrant Name	Techpoint, Inc.
Entity Central Index Key	0001556898
Entity Emerging Growth Company	false
Entity File Number	000-55843
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0806545
Entity Address, Address Line One	2550 N. First Street
Entity Address, Address Line Two	#550
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95131
City Area Code	408
Local Phone Number	324-0588
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Japanese Depositary Shares, each representing one share of Common Stock, $0.0001 par value per share
Trading Symbol	M-6697
Security Exchange Name	NONE

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