Odyssey Semiconductor Technologies Reports Fourth Quarter and Full Year 2022 Financial Results


Completed 650 and 1200 volt vertical GaN sample fabrication as planned in Q4 2022


On track to ship GaN product samples to customers in Q1 2023


Expecting product development agreements with customers by the end of Q2 2023


ITHACA, N.Y., February 7, 2023 – Odyssey Semiconductor Technologies, Inc. (OTCQB: ODII), a semiconductor device company developing innovative high-voltage power switching components based on proprietary Gallium Nitride (“GaN”) processing technology, today reported its fourth quarter and full year 2022 results.


CEO Commentary


“2022 was a pivotal year for Odyssey. It marked the year our GaN technology moved out of the lab. We are now building high-voltage vertical GaN products that customers are excited to evaluate. We completed 650 and 1200 volt vertical GaN sample fabrication as planned in Q4 2022, and now samples are being prepared for shipment to customers later this quarter. We expect to secure product development agreements with customers by the end of Q2 2023,” said Mark Davidson, Odyssey’s Chief Executive Officer. “The quality of conversations I’ve personally had with customers reinforces our confidence that we’re developing something valuable for many applications in our target markets. We remain focused on executing our commercialization roadmap.”


We are continuing to take product sample requests. Customers can request information and samples of the 650 and 1200 volt vertical GaN power devices at info@odysseysemi.com.


Significant Recent Advancements and Milestones


Completed 650 and 1200 volt vertical GaN sample fabrication as planned in Q4 2022 utilizing Odyssey’s industry leading vertical GaN intellectual property.


Shipments of vertical GaN product samples to secured customers commencing in Q1 2023.


Product development agreements with customers are expected by the end of Q2 2023.


Pursuing $2 million pipeline value for foundry services as the Company continues to pursue new opportunities in foundry services.


Secured an additional $2.35 million in funding executed on December 28, 2022.


Positioning the Company to receive funding through the CHIPS and Science Act.


Odyssey Uniquely Positioned in High Growth Megatrend Movement to High Voltage.
40% CAGR to 2027 in Odyssey’s Addressable Market


Odyssey’s approach to vertical GaN will offer even greater commercial advantages over silicon than silicon carbide or lateral GaN. Vertical GaN offers a 10x advantage over silicon carbide (SiC) at performance and cost levels unattainable by the competing technologies.





The market the Company is pursuing is large and fast growing. The 650 volt segment is the larger market today, expected to grow at a 20% compound annual growth rate. The 1200 volt product market segment is expected to grow faster at 63% CAGR and will become the larger market in the second half of this decade. Together, the 650 and 1200 volt power device market is expected to exceed $5 billion in 2027, a 40% combined CAGR according to Yole Group, a French market research firm.


Conference Call and Webcast: Q4 and Full Year 2022 Results


The Company will hold a conference call and webcast scheduled to begin at 5:00 PM ET (2:00 PM PT) on Tuesday, February 7, 2023. The conference call and webcast will consist of prepared remarks by CEO Mark Davidson. Following the prepared remarks, CEO Mark Davidson and Chairman of the Board John Edmunds will answer questions. Analysts and investors may pose questions to Odyssey during the live webcast on February 7, 2023.


Interested persons may access the live conference call by dialing 888-506-0062 (U.S./Canada callers) or 973-528-0011 (international callers), using passcode 478421. It is recommended that participants call or login 10 minutes ahead of the scheduled start time to ensure proper connection. An audio replay will be available one hour after the live call until Midnight on February 21, 2023, by dialing 877-481-4010 using passcode 47597.


The live webcast and interactive Q&A will be accessible on the Company’s Investor Relations website under the Events tab at https://www.odysseysemi.com/investors/ir-calendar. The webcast will be archived on the website for future viewing.


About Odyssey Semiconductor Technologies, Inc.


Odyssey Semiconductor Technologies, Inc., has developed a proprietary technology that is designed to allow for GaN to replace SiC as the emerging high-voltage power switching semiconductor material. Based in Ithaca, NY, the Company owns and operates a 10,000 sq. ft. semiconductor wafer manufacturing facility complete with a mix of class 1,000 and class 10,000 clean space as well as tools for advanced semiconductor development and production. Odyssey Semiconductor also offers a world-class semiconductor device development and foundry service.


For more information, visit the Company’s website at www.odysseysemi.com and LinkedIn.


Forward-Looking Statements


Statements in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, forecasts, representations and contentions and are not historical facts and typically are identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “forecast”, “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. These forward-looking statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties described more fully in the company’s filings on Forms 10-K and 10-Q and other periodic filings with the Securities and Exchange Commission. Factors that could cause actual results to differ materially from those currently anticipated include, without limitation, risks relating to the results of our research and development activities, including uncertainties relating to semiconductor process manufacturing; the early stage of our GaN-based technology presently under development; our ability to protect our intellectual property rights that are valuable to our business, including patent and other intellectual property rights; our ability to successfully market and sell our technologies; the ability to achieve high volume manufacturing and the size and growth of the potential markets for any of our technologies, the rate and degree of market acceptance of any of our technologies and our ability to raise funding to support operations and the continued development and qualification of our technology.





In light of these risks, uncertainties and assumptions, the forward-looking statements regarding future events and circumstances discussed in this press release may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements included herein speak only as of the date hereof, and we undertake no obligation to update publicly or privately any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.


Investor Relations Contact


Darrow Associates
Jeff Christensen
(703) 297-6917


Consolidated Financial Results


All financials referenced in this release are unaudited and intended to conform with U.S. Generally Accepted Accounting Principles (“GAAP”) and comparisons in this release are to the same period in the prior year unless otherwise noted.









   December 31,  December 31,
   2022  2021
Current Assets:          
Cash  $2,428,289   $2,598,213 
Accounts receivable   50,750    6,170 
Deferred expenses       7,870 
Prepaid expenses and other current assets   68,204    225,260 
Total Current Assets   2,547,243    2,837,513 
Restricted cash   103,240    103,201 
Property and equipment, net   989,246    853,290 
Operating ROU Asset   532,953     
Total Assets  $4,172,682   $3,794,004 
Liabilities and Stockholders’ Equity          
Current Liabilities:          
Accounts payable and accrued expenses  $434,888   $147,947 
Loan payable - short term   72,424    74,134 
Deferred revenue       10,000 
Total Current Liabilities   507,312    232,081 
Long-term lease liability   532,953     
Convertible Bridge Loan   3,600,000      
Loans payable - long term   264,729    345,459 
Total liabilities   4,904,994    577,540 
Commitments and contingencies        
Stockholders’ Equity:          
Preferred stock, $0.0001 par value, 5,000,000 shares authorized;
0 shares issued and outstanding as of December 31, 2022 and December 31, 2021
Common stock, $0.0001 par value, 45,000,000 shares authorized, 12,726,911 shares issued and outstanding as of December 31, 2022 and December 31, 2021   1,272    1,272 
Additional paid-in capital   10,800,268    9,873,345 
Accumulated deficit   (11,533,852)   (6,658,153)
Total Stockholders’ Equity   (732,312)   3,216,464 
Total Liabilities and Stockholders’ Equity  $4,172,682   $3,794,004 









   For The Three Months Ended December 31,  For The Twelve months ended December 31,
   2022  2021  2022  2021
Revenues  $61,750   $55,874   $321,049   $748,948 
Cost of Revenues   45,292    39,966    228,499    832,205 
Gross Profit (Loss)   16,458    15,908    92,550    (83,257)
Operating Expenses:                    
Research and development   533,803    445,894    2,085,815    1,519,631 
Write off of fixed asset deposit           153,126     
Selling, general, and administrative   605,528    295,968    2,964,610    1,954,962 
Total Operating Expenses   1,139,331    741,862    4,933,551    3,474,593 
Loss From Operations   (1,122,873)   (725,954)   (4,841,001)   (3,557,850)
Other Income (Expense):                    
Forgiveness of PPP loan and other income   21,254    193,638    26,798    432,357 
Interest income (expense)   (20,905)   (1,853)   (61,496)   (16,260)
Net Loss  $(1,122,524)  $(725,954)  $(4,875,699)  $(3,141,753)
Net (Loss) Income Per Share:                    
Basic  $(0.09)  $(0.04)  $(0.38)  $(0.25)
Diluted  $(0.09)  $(0.04)  $(0.38)  $(0.25)
 Weighted Average Number of Common Shares Outstanding:                    
Basic   12,726,911    12,419,399    12,726,911    12,419,399 
Diluted   12,726,911    12,419,399    12,726,911    12,419,399 










   For The Twelve Months Ended
   December 31,
   2022  2021
Cash Flows From Operating Activities:          
Net loss  $(4,875,699)  $(3,141,753)
Adjustments to reconcile net loss to net cash used in operating activities:          
Stock-based compensation   926,923    1,159,611 
Forgiveness of PPP loan indebtedness       (404,305)
Fixed asset deposit - Reserve   153,126      
Depreciation and amortization   132,211    166,535 
Changes in operating assets and liabilities:          
Contract assets       62,273 
Accounts receivable   (44,580)   4,707 
Prepaid expenses and other current assets   3,930    (191,691)
Deferred expenses   7,870    177,214 
Accounts payable and accrued expenses   286,941    (39,099)
Deferred revenue   (10,000)   (250,447)
Total Adjustments   1,456,421    684,798 
Net Cash Used In Operating Activities   (3,419,278)   (2,456,955)
Cash Flows Used In Investing Activities:          
Purchases of property and equipment   (268,167)   (32,506)
Lease of Property        
Net Cash Used In Investing Activities   (268,167)   (32,506)
Cash Flows From Financing Activities:          
Proceeds from sale of common stock, net of costs       4,599,055 
Proceeds from Convertible Bridge Loan   3,600,000      
Proceeds from government loans        193,625 
Repayment of government loans   (82,440)   (46,097)
Proceeds from exercise of stock options       68,438 
Payment of deferred offering costs         
Payment of deferred loan costs          
Net Cash Provided By (Used In) Financing Activities   3,517,560    4,815,021 
Net Increase (Decrease) In Cash and Restricted Cash   (169,885)   2,325,560 
Cash and Restricted Cash - Beginning Of Period   2,701,414    375,854 
Cash and Restricted Cash - End Of Period  $2,531,529   $2,701,414 
Cash and Restricted Cash Consisted of the Following:          
Cash  $2,428,289   $2,598,213 
Restricted cash   103,240    103,201 
   $2,531,529   $2,701,414 
Supplemental Disclosures of Cash Flow Information:          
Cash paid during the year for:          
Interest  $13,222   $6,911 
Income taxes  $   $ 
Non-cash investing and financing activities:          
Operating Lease ROU Asset  $680,683   $ 


See notes to these condensed consolidated financial statements.