Navitas Semiconductor Corp. reported a difficult second quarter of 2026 marked by lower revenue, a large non-cash earnout-related loss, the completion of previously contingent earnout obligations from its 2021 business combination, and a new patent lawsuit filed shortly after quarter-end. For the quarter ended June 30, 2026, Navitas posted net revenue of $10.5 million, down from $14.5 million in the same quarter of 2025. For the first six months of 2026, revenue was $19.1 million, compared with $28.5 million a year earlier. Cost of revenues was $6.5 million for the quarter and $11.8 million for the six-month period, while total operating expenses rose to $31.3 million for the quarter and $62.3 million for the first half, compared with $24.0 million and $54.6 million, respectively, in the prior-year periods. The company’s net loss widened sharply, primarily because of changes in the fair value of earnout liabilities tied to its 2021 business combination. Navitas reported a net loss of $228.2 million for the second quarter of 2026, compared with a net loss of $49.1 million in the second quarter of 2025. For the six months ended June 30, 2026, the net loss was $262.0 million, versus $65.9 million in the comparable 2025 period. A central corporate event in the filing was the achievement and settlement of Navitas’ legacy earnout milestones. Under the Business Combination Agreement dated May 6, 2021, involving Live Oak Acquisition Corp. II, Live Oak Merger Sub Inc. and Legacy Navitas, certain former Legacy Navitas stockholders and other eligible persons were entitled to receive up to 10.0 million Class A common stock earnout shares if specified milestones were met. The three independent triggering events each covered up to about 3.3 million shares. Navitas said all three triggering events were achieved during the second quarter: Triggering Event I on May 15, 2026, Triggering Event II on May 29, 2026, and Triggering Event III on June 11, 2026. As a result, the company remeasured the earnout liability through each trigger date and recorded a loss from the change in fair value of the earnout liability of approximately $203.1 million for the quarter and $211.0 million for the six-month period. The earnout obligations were settled primarily through issuance of Class A common stock, and Navitas said that as of June 30, 2026, all earnout obligations had been settled and no earnout liability remained outstanding. The filing text indicates an aggregate share issuance occurred, but the extracted document does not show the final share count. Navitas also disclosed a separate settlement with Live Oak Sponsor Partners II, LLC related to sponsor earnout shares from the 2021 Sponsor Letter Agreement. On May 18, 2026, Navitas entered into a Settlement, Release and Amendment Agreement resolving disputes over the calculation and vesting of those sponsor earnout shares. Under the settlement, approximately 0.7 million sponsor earnout shares were released from vesting, forfeiture and transfer restrictions; approximately 0.4 million sponsor earnout shares were acknowledged as previously earned; and approximately 0.1 million sponsor earnout shares were forfeited by Live Oak Sponsor and cancelled. Navitas accounted for this settlement within stockholders’ equity, with no gain, loss or other impact on its statement of operations. The filing also updated equity compensation matters. Under Navitas’ 2021 Equity Incentive Plan, the company had 1,337,494 non-statutory stock options outstanding as of June 30, 2026. Stock options under the plan generally vest over four years, with 25% vesting on the first anniversary of the vesting commencement date and the remaining 75% vesting quarterly thereafter. Navitas also.