Inseego (INSG) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 02, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38358
Entity Registrant Name	INSEEGO CORP.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3377646
Entity Address, Address Line One	9710 Scranton Road, Suite 200
Entity Address, City or Town	San Diego,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	858
Local Phone Number	812-3400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	INSG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		11,882,948
Entity Central Index Key	0001022652
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 12,297	$ 7,519
Accounts receivable, net of allowance for expected credit losses of $1,060 and $1,113, respectively	23,476	22,616
Inventories	20,797	22,880
Prepaid expenses and other	6,526	5,211
Total current assets	63,096	58,226
Property, plant and equipment, net of accumulated depreciation of $29,427 and $28,920, respectively	2,287	2,758
Rental assets, net of accumulated depreciation of $7,859 and $7,003, respectively	4,916	5,083
Intangible assets, net of accumulated amortization of $42,770 and $39,987, respectively	24,281	27,140
Goodwill	21,922	21,922
Operating lease right-of-use assets	5,182	5,412
Other assets	384	1,256
Total assets	122,068	121,797
Current liabilities:
Accounts payable	24,013	24,795
Accrued expenses and other current liabilities	30,805	27,022
Revolving credit facility	4,677	4,094
Total current liabilities	59,495	55,911
Long-term liabilities:
2025 Notes, net	160,284	159,912
Long-term portion of operating lease obligations	4,771	5,039
Deferred tax liabilities, net	675	680
Other long-term liabilities	2,432	2,360
Total liabilities	227,657	223,902
Commitments and contingencies (Note 9)
Stockholders’ deficit:
Preferred Stock, Value, Issued	0	0
Common stock, par value $0.001; 150,000,000 shares authorized, 11,882,844 and 11,878,557 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	12	12
Additional paid-in capital	811,637	810,138
Accumulated other comprehensive loss	(5,065)	(5,327)
Accumulated deficit	(912,173)	(906,928)
Total stockholders’ deficit	(105,589)	(102,105)
Total liabilities and stockholders’ deficit	$ 122,068	$ 121,797

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Allowance for doubtful accounts	$ 1,060,000	$ 1,113,000
Accumulated depreciation, Property, plant and equipment	29,427,000	28,920,000
Accumulated depreciation, Rental assets	7,859,000	7,003,000
Accumulated amortization, Intangible assets	$ 42,770,000	$ 39,987,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	11,882,844	11,878,557
Common stock, shares outstanding (in shares)	11,882,844	11,878,557
Series E preferred stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	39,500	39,500
Preferred stock issued (in shares)	25,000	25,000
Preferred stock, shares outstanding (in shares)	25,000	25,000
Preferred stock, liquidation preference	$ 35,913,326	$ 35,913,326

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Revenues:
Total revenues		$ 45,009	$ 50,794
Cost of revenues:
Total cost of revenues		27,617	32,607
Gross profit		17,392	18,187
Operating costs and expenses:
Research and development		5,043	3,775
Sales and marketing		4,995	6,466
General and administrative		4,983	5,724
Depreciation and amortization		3,635	5,309
Impairment of capitalized software		420	504
Total operating costs and expenses		19,076	21,778
Operating loss		(1,684)	(3,591)
Other (expense) income:
Interest expense, net		(2,174)	(1,997)
Other (expense) income, net		(360)	795
Loss before income taxes		(4,218)	(4,793)
Income tax provision		237	311
Net loss		(4,455)	(5,104)
Series E preferred stock dividends		(790)	(723)
Net loss attributable to common stockholders		$ (5,245)	$ (5,827)
Net loss per common share:
Diluted (in dollars per share)	[1]	$ (0.44)	$ (0.54)
Basic (in dollars per share)	[1]	$ (0.44)	$ (0.54)
Weighted-average shares used in computation of net loss per common share:
Basic (in shares)	[1]	11,879,719	10,860,189
Diluted (in shares)	[1]	11,879,719	10,860,189
Other comprehensive income:
Foreign currency translation adjustment		$ 262	$ 94
Comprehensive loss		(4,193)	(5,010)
Product revenues
Revenues:
Total revenues		29,452	34,910
Cost of revenues:
Total cost of revenues		22,713	27,967
Mobile solutions
Revenues:
Total revenues		15,270	23,040
Fixed wireless access solutions
Revenues:
Total revenues		14,182	11,870
Services and other
Revenues:
Total revenues		15,557	15,884
Cost of revenues:
Total cost of revenues		$ 4,904	$ 4,640
[1] Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands		Total	Preferred Stock	Common Stock		Additional Paid-in Capital	[1]	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance (shares) at Dec. 31, 2022			25	10,847	[1]
Beginning balance at Dec. 31, 2022		$ (70,117)	$ 0	$ 11	[1]	$ 793,952		$ (857,751)	$ (6,329)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(5,104)						(5,104)
Foreign currency translation adjustment		94							94
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)	[1]			4
Vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld		75				75
Issuance of common shares in connection with a public offering, net of issuance costs (shares)				86
Issuance of common shares in connection with a public offering, net of issuance costs		529				529
Share-based compensation		1,800				1,800
Series E preferred stock dividends		0				723		(723)
Ending balance (shares) at Mar. 31, 2023			25	10,937	[1]
Ending balance at Mar. 31, 2023		(72,723)	$ 0	$ 11	[1]	797,079		(863,578)	(6,235)
Beginning balance (shares) at Dec. 31, 2023			25	11,879	[1]
Beginning balance at Dec. 31, 2023		(102,105)	$ 0	$ 12	[1]	810,138		(906,928)	(5,327)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss		(4,455)						(4,455)
Foreign currency translation adjustment		262							262
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)	[1]			4
Vesting of restricted stock units and stock issued under employee stock purchase plan, net of taxes withheld		(8)				(8)
Share-based compensation		717				717
Series E preferred stock dividends		0				790		(790)
Ending balance (shares) at Mar. 31, 2024			25	11,883	[1]
Ending balance at Mar. 31, 2024		$ (105,589)	$ 0	$ 12	[1]	$ 811,637		$ (912,173)	$ (5,065)
[1] Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (4,455)	$ (5,104)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	4,375	5,430
Provision for expected credit losses	(32)	41
Impairment of capitalized software	420	504
Provision for excess and obsolete inventory	108	217
Share-based compensation expense	717	1,800
Amortization of debt discount and debt issuance costs	489	489
Deferred income taxes	(5)	101
Non-cash operating lease expense	405	592
Changes in assets and liabilities:
Accounts receivable	(828)	(1,997)
Inventories	1,279	3,097
Prepaid expenses and other assets	(785)	(1,940)
Accounts payable	(718)	5,544
Accrued expenses and other liabilities	3,999	(490)
Operating lease liabilities	(423)	(625)
Net cash provided by operating activities	4,546	7,659
Cash flows from investing activities:
Purchases of property, plant and equipment	0	(61)
Additions to capitalized software development costs and purchases of intangible assets	(577)	(2,443)
Net cash used in investing activities	(577)	(2,504)
Cash flows from financing activities:
Principal payments under finance lease obligations	0	(199)
Proceeds from a public offering, net of issuance costs	0	529
Principal payments on financed assets	0	(360)
Net borrowings (repayments) on revolving credit facility	583
Repayments of Long-Term Lines of Credit		(3,385)
Proceeds from ESPP	0	75
Net cash provided by (used in) financing activities	583	(3,340)
Effect of exchange rates on cash	226	(272)
Net increase in cash and cash equivalents	4,778	1,543
Cash and cash equivalents, beginning of period	7,519	7,143
Cash, and cash equivalents, and restricted cash, end of period	12,297	8,686
Cash paid during the year for:
Interest	147	117
Income taxes	44	59
Supplemental disclosures of non-cash investing and financing activities:
Transfer of inventories to rental assets	696	543
Capital expenditures financed through accounts payable or accrued liabilities	104	2,164
Right-of-use assets obtained in exchange for operating leases liabilities	$ 146	$ 50

Nature of Business and Signific

Nature of Business and Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of Business and Significant Accounting Policies	Nature of Business and Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) have been prepared by Inseego Corp. (the “Company”, “we”, “us”) in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Financial Statements include the accounts of the Company and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes as of and for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”). The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated financial statements as of that date, but does not include all disclosures required by GAAP. In management’s opinion, the accompanying Financial Statements reflect all normal recurring adjustments necessary for their fair presentation. Other than described below, there have been no changes to the Company’s significant accounting policies described in the Form 10-K that have had a material impact on the Company’s Financial Statements. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole. Segment Information The Company has one reportable segment. The principal executive officer, who is also the Chief Operating Decision Maker, does not manage any part of the Company separately, and the allocation of resources and assessment of performance are based solely on the Company’s consolidated operations and financial results. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ materially from these estimates. Estimates are assessed each period and updated to reflect current information. Significant estimates include revenue recognition, warranty provision, capitalized software costs, allowance for credit losses, provision for excess and obsolete inventory, accrued liabilities related to our contract manufacturers, valuation of tangible and intangible long-lived assets, valuation of goodwill, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense. Reclassifications Certain amounts recorded in the prior period consolidated financial statements have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on previously reported operating results. During the fourth quarter of 2023, and as noted in the Form 10-K, the Company reclassified revenue on its Consolidated Statement of Operations. Historically, the Company classified revenues from products and services into two categories, IoT & Mobile Solutions and Enterprise SaaS Solutions. The Company is now classifying revenues from products and services into the following two categories: Product Revenue, which consists of our Mobile Solutions and Fixed Wireless Access Solutions, and Services and Other. Additionally, during 2023 the Company reclassified all depreciation and amortization expense previously recorded in the operating expense line items of research and development, sales and marketing, and general and administrative expenses on the Consolidated Statement of Operations into a separate line labeled Depreciation and amortization. All prior periods have been reclassified to conform to the current period presentation for these changes. Reverse Stock Split On January 24, 2024, the Company completed a 1-for-10 reverse stock split of its issued and outstanding common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, each share of common stock issued and outstanding immediately prior to January 24th were automatically converted into one-tenth (1/10) of a share of common stock. The Reverse Stock Split affected all common stockholders uniformly and did not alter any stockholder's percentage interest in the Company's equity, except to the extent that the Reverse Stock Split would result in a stockholder owning a fractional share. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who otherwise would be entitled to receive a fractional share instead were entitled to receive cash in lieu of such fractional share. The Reverse Stock Split did not change the par value of the common stock or the authorized number of shares of common stock. All outstanding convertible notes entitling their holders to purchase or obtain or convert into shares of our common stock were adjusted, as required by the terms of these securities. All common share and per-share amounts in this Form 10-Q have been retroactively restated to reflect the effect of the Reverse Stock Split. Liquidity As of March 31, 2024, the Company had available cash and cash equivalents totaling $12.3 million and working capital of $3.6 million. The Company’s Credit Facility (as defined in Note 4 – Debt), which had an outstanding balance of $4.7 million as of March 31, 2024, was voluntarily paid-off and terminated by the Company effective April 18, 2024. The Company generated positive cash flow from operations both for the year ended December 31, 2023 and in the three months ended March 31, 2024. In April 2024, the Company received a $15.0 million upfront payment from a customer in connection with a two-year service contract. Based on the factors above, and to reduce financing costs, the Company voluntarily paid-off and terminated the Credit Facility effective April 18, 2024. These factors have had a positive impact on our liquidity. The Company’s 3.25% convertible senior notes due in May 2025 (the “2025 Notes”) have a principal balance of $161.9 million and matures on May 1, 2025. The Company’s intention is to restructure or refinance the 2025 Notes, and the Company is in active negotiations to do so, however there can be no assurance that any required or desired restructuring or financing will be available on terms favorable to the Company, or at all. As the refinancing of the 2025 Notes cannot be assured, accounting guidance requires disclosure that this raises substantial doubt about the Company’s ability to continue as a going concern within one year of the issuance of these financial statements.

Financial Statement Details

Financial Statement Details	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Details	Financial Statement Details Inventories Inventories consist of the following (in thousands): March 31, December 31, Finished goods $ 18,705 $ 21,264 Raw materials and components 2,092 1,616 Total inventories $ 20,797 $ 22,880 Prepaid expenses and other Prepaid expenses and other consists of the following (in thousands): March 31, December 31, Rebate receivables $ 2,884 $ 1,950 Receivables from contract manufacturers 2,100 1,823 Other 1,542 1,438 Total prepaid expenses and other $ 6,526 $ 5,211 Accrued expenses and other current liabilities Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, Royalties $ 852 $ 845 Payroll and related expenses 5,490 4,159 Warranty obligations 780 480 Accrued interest 2,555 1,038 Deferred revenue 6,562 5,583 Operating lease liabilities 1,684 1,681 Accrued contract manufacturing liabilities 7,077 7,537 Other 5,805 5,699 Total accrued expenses and other current liabilities $ 30,805 $ 27,022

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company’s only financial instrument measured at fair value on a recurring basis is its interest make-whole payment derivative liability on its 2025 Notes (see Note 4 – Debt ). The fair value of that liability was zero as of both March 31, 2024 and December 31, 2023. The fair value of the interest make-whole payment derivative liability was determined using a Monte Carlo model using the following key assumptions: March 31, 2024 December 31, 2023 Volatility 88.60 % 77.00 % Stock price $2.80 per share $2.20 per share Credit spread 85.09 % 92.20 % Term 1.09 years 1.34 years Dividend yield — % — % Risk-free rate 4.99 % 4.60 % There was no change in the fair value of the interest make-whole liability for the three months ended March 31, 2024 or March 31, 2023. Other Financial Instruments The carrying values of the Company’s other financial assets and liabilities approximate their fair values because of their short-term nature, with the exception of the 2025 Notes. The 2025 Notes are carried at amortized cost, adjusted for changes in the fair value of the embedded derivative.

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt 2025 Notes In 2020, the Company completed both a registered public offering and a privately negotiated exchange agreement that resulted in the issuance of the 2025 Notes. After taking into account exchanges and redemptions occurring in prior periods, the outstanding principal balance of the 2025 notes was $161.9 million as of both March 31, 2024 and December 31, 2023. The 2025 Notes were issued under an indenture, dated May 12, 2020 (the “Base Indenture”), between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”), as supplemented by the first supplemental indenture, dated May 12, 2020 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company and the Trustee. The 2025 Notes will mature on May 1, 2025, unless earlier repurchased, redeemed or converted. The 2025 Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 3.25%, payable semi-annually in arrears on May 1 and November 1 of each year. Holders of the 2025 Notes may convert the 2025 Notes into shares of the Company’s common stock (together with cash in lieu of any fractional share), at their option, at any time until the close of business on the scheduled trading day immediately before the maturity date. Upon conversion of the 2025 Notes, the Company will deliver for each $1,000 principal amount of 2025 Notes converted a number of shares of the Company’s common stock (together with cash in lieu of any fractional share), equal to the conversion rate. As of March 31, 2024, the conversion rate for the 2025 Notes is 7.92896 shares of common stock per $1,000 principal amount of 2025 Notes, which represents a conversion price of approximately $126.12 per share, and is subject to adjustment upon the occurrence of certain events, including, but not limited to, certain stock dividends, splits and combinations, the issuance of certain rights, options or warrants to holders of the common stock, certain distributions of assets, debt securities, capital stock or other property to holders of the common stock, cash dividends on the common stock and certain Company tender or exchange offers. If a fundamental change (as defined in the Indenture) occurs at any time prior to the maturity date, then the noteholders may require the Company to repurchase their 2025 Notes at a cash repurchase price equal to the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. If a make-whole fundamental change (as defined in the Indenture) occurs, then the Company will in certain circumstances increase the conversion rate for a specified period of time. The 2025 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after May 6, 2023 through the last scheduled trading day before the maturity date, at a cash redemption price equal to the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, as long as the last reported sale price per share of the common stock exceeds 130% of the conversion price on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice. The Indenture contains customary events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the Trustee, by notice to the Company, or the holders of the 2025 Notes representing at least 25% in aggregate principal amount of the outstanding 2025 Notes, by notice to the Company and the Trustee, may declare 100% of the principal of, and all accrued and unpaid interest on, all of the then outstanding 2025 Notes to be due and payable immediately. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of, and all accrued and unpaid interest on, all of the then outstanding 2025 Notes will automatically become immediately due and payable. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will, for the first 360 days after such event of default, consist exclusively of the right to receive additional interest on the 2025 Notes. Interest make-whole payment The 2025 Notes also include an interest make-whole payment feature whereby if the last reported sale price of the Company’s common stock for each of the five make an interest make-whole payment to the converting holder equal to the sum of the present values of the scheduled payments of interest that would have been made on the 2025 Notes to be converted had such notes remained outstanding from the conversion date through the earlier of (i) the date that is three years after the conversion date and (ii) the maturity date. The present values will be computed using a discount rate equal to 1%. The Company will satisfy its obligation to pay the interest make-whole payment, at its election, in cash or shares of common stock (together with cash in lieu of fractional shares). The Company has determined that this feature is an embedded derivative and has recognized the fair value of this derivative as a liability in the consolidated balance sheets, with subsequent changes to fair value to be recorded at each reporting period on the consolidated statement of operations in other income, net. See Note 3 – Fair Value Measurements, for more information on this derivative liability. As of March 31, 2024 and December 31, 2023, $161.9 million of principal amount of the 2025 Notes was outstanding, $80.4 million of which were held by related parties. Assuming no repurchases or conversions of the 2025 Notes prior to May 1, 2025, the entire principal balance of $161.9 million is due on May 1, 2025. The 2025 Notes consist of the following (in thousands): March 31, December 31, Principal $ 161,898 $ 161,898 Add: fair value of embedded derivative — $ — Less: unamortized debt discount (899) $ (1,106) Less: unamortized issuance costs (715) $ (880) Net carrying amount $ 160,284 $ 159,912 The effective interest rate of the liability component of the 2025 Notes was 4.17% and 4.23% for the three months ended March 31, 2024 and 2023, respectively. The following table sets forth total interest expense recog nized related to the 2025 Notes (in thousands): Three Months Ended March 31, 2024 2023 Contractual interest expense $ 1,315 $ 1,315 Amortization of debt discount $ 207 $ 207 Amortization of debt issuance costs $ 165 $ 165 Total interest expense $ 1,687 $ 1,687 The contractual interest expense on the 2025 Notes recorded within interest expense, net on the consolidated statements of operations attributable to related parties was $0.7 million in the three months ended March 31, 2024 and 2023. As of March 31, 2024 and December 31, 2023, accrued interest due to related parties of $1.1 million and $0.4 million, respectively, was included within accrued expenses and other current liabilities on the condensed consolidated balance sheets. Asset-backed Revolving Credit Facility In August 2022, the Company entered into a Loan and Security Agreement (as subsequently amended, the “Credit Agreement”), by and among Siena Lending Group LLC, as lender (“Lender”), Inseego Wireless, Inc., a Delaware corporation (“Inseego Wireless”), a subsidiary of the Company, and Inseego North America LLC, an Oregon limited liability company and indirect subsidiary of the Company, as borrowers (together with Inseego Wireless, the “Borrowers”), and the Company, as guarantor (together with the Borrowers, the “Loan Parties”). Effective April 18, 2024, the Company exercised its right to voluntarily pay-off and terminate the Credit Agreement. See Note 11 – Subsequent Events for more information on the termination of the Credit Agreement. The Credit Agreement established a secured asset-backed revolving credit facility which was comprised of a maximum $50 million revolving credit facility (“Credit Facility”), with a minimum borrowing amount for interest calculations of $4.5 million upon execution of the Credit Agreement. Availability under the Credit Facility was determined monthly by a borrowing base comprised of a percentage of eligible accounts receivable and eligible inventory of the Borrowers. Outstanding amounts exceeding the borrowing base were to be repaid immediately. The Borrowers’ obligations under the Credit Agreement were guaranteed by the Company. The Loan Parties’ obligations under the Credit Agreement were secured by a continuing security interest in all property of each Loan Party, subject to certain Excluded Collateral (as defined in the Credit Agreement). Borrowings under the Credit Facility took the form of base rate (“Base Rate”) loans or Secured Overnight Financing Rate (“SOFR”) loans. SOFR loans bore interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement as the Term SOFR Reference Rate for a term of one month on the day) plus the Applicable Margin (as defined in the Credit Agreement), with a Term SOFR floor of 1%. Base Rate loans bore interest at a rate per annum equal to the Applicable Margin plus the greatest of (a) the per annum rate of interest which is identified as the “Prime Rate” and normally published in the Money Rates section of The Wall Street Journal, (b) the sum of the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5% and (c) 3.50% per annum. The Applicable Margin varied depending on the average outstanding amount for a preceding month. If the average outstanding amount for a preceding month was less than $15 million, the Applicable Margin will be 2.50% for Base Rate loans and 3.50% for SOFR loans. If the average outstanding amount for a preceding month was between $15 million and $25 million, the Applicable Margin will be 3.00% for Base Rate loans and 4.00% for SOFR loans. If the average outstanding amount for a preceding month was greater than $25 million, the Applicable Margin will be 4.5% for Base Rate loans and 5.50% for SOFR loans. The Company paid monthly fees of 0.4% per annum on the unused portion of the Credit Facility. The Credit Agreement contained a financial covenant whereby the Loan Parties shall not permit the consolidated Liquidity (as defined in the Amended Credit Agreement) to be less than $8 million at any time (the “Liquidity Covenant”). The Credit Agreement also contained certain customary covenants, including restrictions on indebtedness, liens, fundamental changes, restricted payments, asset sales, and investments, and places limits on various other payments. The Company was in compliance with the financial covenants of the Amended Credit Agreement as of March 31, 2024 . On May 2, 2023, (1) two related parties (the “Participants”) collectively purchased a $4.0 million last-out subordinated participation interest in the Credit Agreement (the “Participation Interest”) from the Lender, and (2) the Borrowers entered into an amendment to the Credit Agreement which increased the borrowing base under the Credit Facility by $4.0 million, increased the minimum borrowing amount for interest calculations to $8.5 million, and modified certain covenants. In connection with the purchase of the Participation Interest, we agreed to pay the Participants an aggregate exit fee ranging from 7.5% to 12.5% of the amount of the Participation Interest, payable upon the earlier to occur of (a) the maturity date of the Credit Facility, (b) termination of the Lender’s commitment to make revolving loans prior to the scheduled maturity date of the Credit Facility, and (c) the early redemption of the Participation Interest, as applicable. Further, the purchase of the Participation Interest granted an option for the Participants to purchase the subject revolving loan or to redeem its Participation Interest under certain circumstances. The Participants are each affiliates of beneficial holders of greater than five percent of our outstanding common stock. Accretion of the exit fee attributable to related parties recorded within interest expense, net on the condensed consolidated statements of operations was $0.1 million for the three months ended March 31, 2024 . Upon execution of the Credit Agreement in August 2022, the Company incurred $1.1 million of debt issuance and related costs, which are being amortized to interest expense throughout the term of the agreement. As of March 31, 2024 and December 31, 2023 , there were $0.4 million and $0.5 million, respectively, of unamortized debt issuance costs on the Credit Facility included within prepaid expenses and other and other assets on the condensed consolidated balance sheets. As of March 31, 2024 , the Company had outstanding borrowings of $4.7 million. The effective interest rate of the average outstanding balance for the Credit Facility was 29.7%, which includes 8.3% related to amortization of original issuance costs, and 21.1%, which includes 10.5% related to amortization of original issuance costs, for the three months ended March 31, 2024 and 2023, respectively. The following table sets forth total interest expense recognized related to the Credit Facility (in thousands): Three Months Ended 2024 2023 Contractual interest expense $ 222 $ 118 Amortization of debt issuance costs 117 117 Total interest expense $ 339 $ 235

Share-based Compensation

Share-based Compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Share-based Compensation	Share-based Compensation During the three months ended March 31, 2024 and 2023 , the Company granted awards under the 2018 Omnibus Incentive Compensation Plan, previously named the Amended and Restated 2009 Omnibus Incentive Compensation Plan (the “2018 Plan”), and the 2015 Incentive Compensation Plan (the “2015 Plan”). The Compensation Committee of the Board of Directors administers the plans. Under the 2018 Plan, shares of common stock may be issued upon the exercise of stock options, in the form of restricted stock, or in settlement of restricted stock units (“RSUs”) or other awards, including awards with alternative vesting schedules such as performance-based criteria. The following table presents total share-based compensation expense within each functional line item on the condensed consolidated statements of operations for the three months end ed March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Cost of revenues $ 31 $ 184 Research and development 160 248 Sales and marketing 165 330 General and administrative 361 1,038 Total $ 717 $ 1,800 Stock Options The Compensation Committee of the Board of Directors determines eligibility, vesting schedules and exercise prices for stock options granted. The Company generally uses the Black-Scholes option pricing model to estimate the fair value of its stock options. For performance stock awards subject to market-based vesting conditions, fair values are determined using the Monte-Carlo simulation model. Stock options generally have a term of ten years and vest over a three The following table summarizes the Company’s stock option activ ity for the three months ended March 31, 2024 : Outstanding — December 31, 2023 545,872 Granted 14,250 Canceled (111,994) Outstanding — March 31, 2024 448,128 Exercisable — March 31, 2024 338,346 At March 31, 2024, total unrecognized compensatio n expense related to stock options was $0.7 million , which is expected to be recognized over a weighted-average period of 3.29 years . Restricted Stock Units Pursuant to the 2018 Plan and the 2015 Plan, the Company may issue RSUs that, upon satisfaction of vesting conditions, allow recipients to receive common stock. Issuances of such awards reduce common stock available under the 2018 Plan and 2015 Plan for stock incentive awards. The Company measures compensation cost associated with grants of RSUs at fair value, which is generally the closing price of the Company’s stock on the date of grant. RSUs generally vest over a three The following table summarizes the Company’s RSU activity for the three months ended March 31, 2024 : Non-vested — December 31, 2023 203,008 Granted — Vested (6,597) Forfeited (10,590) Non-vested — March 31, 2024 185,821 At March 31, 2024, total unrecognized compensation expense related to RSUs was $1.6 million , which is expected to be recognized over a weighted-average period of 1.07 years .

Loss per Share

Loss per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Loss per Share	Loss per Share Basic earnings (loss) per share (“EPS”) excludes dilution and is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Potentially dilutive securities (consisting primarily of the 2025 Notes calculated using the if-converted method and warrants, stock options and RSUs calculated using the treasury stock method) are excluded from the diluted EPS computation in loss periods and when the applicable exercise price is greater than the market price on the period end date as their effect would be anti-dilutive. The calculation of basic and diluted earnings per share was as follows (in thousands, except share and per share data): Three Months Ended 2024 2023 Net loss attributable to common stockholders $ (5,245) $ (5,827) Weighted-average common shares outstanding* 11,879,719 10,860,189 Basic and diluted net loss per share $ (0.44) $ (0.54) (*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1 The following is a summary of outstanding anti-dilutive potential shares of common stock that have been excluded from diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive (in thousands): As of March 31, (in thousands) 2024 2023 2025 Notes 1,338 1,409 Non-qualified stock options 448 796 Restricted stock units 186 114 Employee stock purchase plan 26 220 Total 1,998 2,539

Public Offering

Public Offering	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
Public Offering	Public Offering In January 2021, the Company entered into an Equity Distribution Agreement with Canaccord Genuity LLC (the “Agent”), pursuant to which the Company could offer and sell, from time to time, through or to the Agent, up to $40.0 million of shares of its common stock (the “ATM Offering”). During the quarter ended March 31, 2023 the Company sold 85,810 shares of common stock, at an average price of $6.17 per share, for net proceeds of $0.5 million, after deducting underwriter fees and discounts. Effective as of November 2, 2023, the Equity Distribution Agreement was terminated by the Company, and there will be no further sales under the ATM Offering.

Geographic Information and Conc

Geographic Information and Concentrations of Risk	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Geographic Information and Concentrations of Risk	Geographic Information and Concentrations of Risk Geographic Information The following table details the Company’s revenues by geographic region based on shipping destination (in thousands): Three Months Ended 2024 2023 United States and Canada $ 35,476 $ 43,205 Europe (including United Kingdom) $ 6,751 $ 5,987 Australia $ 2,780 $ 1,598 Other $ 2 $ 4 Total $ 45,009 $ 50,794 Concentrations of Credit Risk For the three months ended March 31, 2024, two customers accounted for 39.3% and 18.2% of revenues, respectively. For the three months ended March 31, 2023, two customers accounted for 31.1% and 26.6% of revenues, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Noncancellable Purchase Obligations The Company typically enters into commitments with its contract manufacturers that require future purchases of goods or services in the three to four quarters following the balance sheet date. Such commitments are noncancellable (“noncancellable purchase obligations”). As of March 31, 2024, future payments under these noncancellable purchase obligations were approximately $60.1 million. Legal The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. The Company is regularly required to directly or indirectly participate in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. Based on an evaluation of these matters the Company currently believes that liabilities arising from, or sums paid in settlement of these existing matters, if any, would not have a material adverse effect on its consolidated results of operations or financial condition. Indemnification In the normal course of business, the Company periodically enters into agreements that require the Company to indemnify and defend its customers for, among other things, claims alleging that the Company’s products infringe upon third-party patents or other intellectual property rights. The Company’s maximum exposure under these indemnification provisions cannot be estimated but the Company does not believe that there are any matters individually or collectively that would have a material adverse effect on its consolidated results of operations or financial condition.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s income tax provision was $0.2 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. Income taxes for both periods consisted primarily of foreign income taxes at certain of the Company’s international entities and minimum state taxes for its U.S.-based entities. The Company’s income tax expense differs from the expected expense based on statutory rates primarily due to full valuation allowances at all of its U.S.-based entities and several of its foreign subsidiaries. The income tax provisions for the three months ended March 31, 2024 and 2023, were largely driven by a combination of improved profits and unrealized foreign currency gains at the Company’s foreign subsidiaries.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events

Nature of Business and Signif_2

Nature of Business and Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) have been prepared by Inseego Corp. (the “Company”, “we”, “us”) in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Financial Statements include the accounts of the Company and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes as of and for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”).
Principles of Consolidation	Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements (“Financial Statements”) have been prepared by Inseego Corp. (the “Company”, “we”, “us”) in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The Financial Statements include the accounts of the Company and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These Financial Statements should be read in conjunction with the audited consolidated financial statements and notes as of and for the year ended December 31, 2023, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”).
Segment Information	Segment Information
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ materially from these estimates. Estimates are assessed each period and updated to reflect current information. Significant estimates include revenue recognition, warranty provision, capitalized software costs, allowance for credit losses, provision for excess and obsolete inventory, accrued liabilities related to our contract manufacturers, valuation of tangible and intangible long-lived assets, valuation of goodwill, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense.
Reclassifications	Reclassifications Certain amounts recorded in the prior period consolidated financial statements have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on previously reported operating results.

Financial Statement Details (Ta

Financial Statement Details (Tables)	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Inventories	Inventories consist of the following (in thousands): March 31, December 31, Finished goods $ 18,705 $ 21,264 Raw materials and components 2,092 1,616 Total inventories $ 20,797 $ 22,880
Schedule of Prepaid Expenses and Other	Prepaid expenses and other consists of the following (in thousands): March 31, December 31, Rebate receivables $ 2,884 $ 1,950 Receivables from contract manufacturers 2,100 1,823 Other 1,542 1,438 Total prepaid expenses and other $ 6,526 $ 5,211
Summary of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consist of the following (in thousands): March 31, December 31, Royalties $ 852 $ 845 Payroll and related expenses 5,490 4,159 Warranty obligations 780 480 Accrued interest 2,555 1,038 Deferred revenue 6,562 5,583 Operating lease liabilities 1,684 1,681 Accrued contract manufacturing liabilities 7,077 7,537 Other 5,805 5,699 Total accrued expenses and other current liabilities $ 30,805 $ 27,022

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value Valuation Model and Assumptions	The fair value of the interest make-whole payment derivative liability was determined using a Monte Carlo model using the following key assumptions: March 31, 2024 December 31, 2023 Volatility 88.60 % 77.00 % Stock price $2.80 per share $2.20 per share Credit spread 85.09 % 92.20 % Term 1.09 years 1.34 years Dividend yield — % — % Risk-free rate 4.99 % 4.60 %

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount of Debt	The 2025 Notes consist of the following (in thousands): March 31, December 31, Principal $ 161,898 $ 161,898 Add: fair value of embedded derivative — $ — Less: unamortized debt discount (899) $ (1,106) Less: unamortized issuance costs (715) $ (880) Net carrying amount $ 160,284 $ 159,912
Schedule of Interest Expense	The following table sets forth total interest expense recog nized related to the 2025 Notes (in thousands): Three Months Ended March 31, 2024 2023 Contractual interest expense $ 1,315 $ 1,315 Amortization of debt discount $ 207 $ 207 Amortization of debt issuance costs $ 165 $ 165 Total interest expense $ 1,687 $ 1,687

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Share-based Compensation	The following table presents total share-based compensation expense within each functional line item on the condensed consolidated statements of operations for the three months end ed March 31, 2024 and 2023 (in thousands): Three Months Ended 2024 2023 Cost of revenues $ 31 $ 184 Research and development 160 248 Sales and marketing 165 330 General and administrative 361 1,038 Total $ 717 $ 1,800
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activ ity for the three months ended March 31, 2024 : Outstanding — December 31, 2023 545,872 Granted 14,250 Canceled (111,994) Outstanding — March 31, 2024 448,128 Exercisable — March 31, 2024 338,346
Summary of Restricted Stock Unit Activity	The following table summarizes the Company’s RSU activity for the three months ended March 31, 2024 : Non-vested — December 31, 2023 203,008 Granted — Vested (6,597) Forfeited (10,590) Non-vested — March 31, 2024 185,821

Loss per Share (Tables)

Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Earnings per Share	The calculation of basic and diluted earnings per share was as follows (in thousands, except share and per share data): Three Months Ended 2024 2023 Net loss attributable to common stockholders $ (5,245) $ (5,827) Weighted-average common shares outstanding* 11,879,719 10,860,189 Basic and diluted net loss per share $ (0.44) $ (0.54) (*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following is a summary of outstanding anti-dilutive potential shares of common stock that have been excluded from diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive (in thousands): As of March 31, (in thousands) 2024 2023 2025 Notes 1,338 1,409 Non-qualified stock options 448 796 Restricted stock units 186 114 Employee stock purchase plan 26 220 Total 1,998 2,539

Geographic Information and Co_2

Geographic Information and Concentrations of Risk (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Geographic Concentration of Net Revenues	The following table details the Company’s revenues by geographic region based on shipping destination (in thousands): Three Months Ended 2024 2023 United States and Canada $ 35,476 $ 43,205 Europe (including United Kingdom) $ 6,751 $ 5,987 Australia $ 2,780 $ 1,598 Other $ 2 $ 4 Total $ 45,009 $ 50,794

Nature of Business and Signif_3

Nature of Business and Significant Accounting Policies - Narrative (Details) $ in Thousands		1 Months Ended	3 Months Ended
	Jan. 24, 2024 shares	Apr. 30, 2024 USD ($)	Mar. 31, 2024 USD ($) segment	Dec. 31, 2023 USD ($)
Nature Of Business And Significant Accounting Policies [Line Items]
Number of reportable segments | segment			1
Stock split, conversion ratio	0.1
Fractional shares issued (in shares) | shares	0
Cash and cash equivalents			$ 12,297	$ 7,519
2025 Notes | Convertible Debt
Nature Of Business And Significant Accounting Policies [Line Items]
Stated interest rate of debt issued			3.25%
Carrying amount of debt			$ 161,898	$ 161,898
Subsequent event
Nature Of Business And Significant Accounting Policies [Line Items]
Upfront revenue		$ 15,000
Service contract term		2 years
Revolving Credit Facility
Nature Of Business And Significant Accounting Policies [Line Items]
Working capital			3,600
Remaining capacity			$ 4,700

Financial Statement Details - I

Financial Statement Details - Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 18,705	$ 21,264
Raw materials and components	2,092	1,616
Total inventories	$ 20,797	$ 22,880

Financial Statement Details - P

Financial Statement Details - Prepaid Expenses and Other (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Rebate receivables	$ 2,884	$ 1,950
Receivables from contract manufacturers	2,100	1,823
Other	1,542	1,438
Total prepaid expenses and other	$ 6,526	$ 5,211

Financial Statement Details - A

Financial Statement Details - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Royalties	$ 852	$ 845
Payroll and related expenses	5,490	4,159
Warranty obligations	780	480
Accrued interest	2,555	1,038
Deferred revenue	6,562	5,583
Operating lease liabilities	1,684	1,681
Accrued contract manufacturing liabilities	7,077	7,537
Other	5,805	5,699
Total accrued expenses and other current liabilities	$ 30,805	$ 27,022

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Financial liabilities fair value	$ 0		$ 0
Gain on change in fair value of embedded derivative	$ 0	$ 0

Fair Value Measurements - Assum

Fair Value Measurements - Assumptions (Details) - Level 3 - Interest make-whole payment	3 Months Ended	6 Months Ended
	Mar. 31, 2024 $ / shares	Jun. 30, 2023	Dec. 31, 2023 $ / shares
Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.8860		0.7700
Stock price (usd per share)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Stock price (usd per share)	$ 2.80		$ 2.20
Credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.8509		0.9220
Term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term	1 year 1 month 2 days	1 year 4 months 2 days
Dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0		0
Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0499		0.0460

Debt - Narrative (Details)

Debt - Narrative (Details)		1 Months Ended	3 Months Ended
	May 02, 2023 USD ($)	Aug. 31, 2022 USD ($)	Mar. 31, 2024 USD ($) tradingDay $ / shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Accrued interest due to related parties			$ 1,100,000		$ 400,000
Effective interest rate of the average outstanding balance			29.70%	21.10%
Amortization of original issuance costs			8.30%	10.50%
Affiliated Entity
Debt Instrument [Line Items]
Contractual interest expense			$ 700,000	$ 700,000
Revolving Credit Facility
Debt Instrument [Line Items]
Debt aggregate face amount	$ 4,000,000
Contractual interest expense			222,000	118,000
Maximum borrowing capacity		$ 50,000,000
Minimum draw	8,500,000	$ 4,500,000
Applicable margin on interest rate (percent)		3.50%
Debt covenant threshold		$ 8,000,000
Commitment fee		0.40%
Line of credit increase	$ 4,000,000
Debt issuance costs		$ 1,100,000
Unamortized debt issuance expense			400,000		500,000
Outstanding borrowings under the credit facility			4,700,000
Revolving Credit Facility | Minimum
Debt Instrument [Line Items]
Commitment fee rate	7.50%
Revolving Credit Facility | Maximum
Debt Instrument [Line Items]
Commitment fee rate	12.50%
Exit fee			100,000
Revolving Credit Facility | Less Than 15 Million
Debt Instrument [Line Items]
Debt covenant threshold		15,000,000
Revolving Credit Facility | Between 15 Million and 25 Million | Minimum
Debt Instrument [Line Items]
Debt covenant threshold		15,000,000
Revolving Credit Facility | Between 15 Million and 25 Million | Maximum
Debt Instrument [Line Items]
Debt covenant threshold		25,000,000
Revolving Credit Facility | Greater Than 25 Million
Debt Instrument [Line Items]
Debt covenant threshold		$ 25,000,000
Revolving Credit Facility | SOFR
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		1%
Revolving Credit Facility | SOFR | Less Than 15 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		3.50%
Revolving Credit Facility | SOFR | Between 15 Million and 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		4%
Revolving Credit Facility | SOFR | Greater Than 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		5.50%
Revolving Credit Facility | Federal Base Rate
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		0.50%
Revolving Credit Facility | Base Rate | Less Than 15 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		2.50%
Revolving Credit Facility | Base Rate | Between 15 Million and 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		3%
Revolving Credit Facility | Base Rate | Greater Than 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)		4.50%
Convertible Debt | 2025 Notes
Debt Instrument [Line Items]
Carrying amount of debt			$ 161,898,000		$ 161,898,000
Stated interest rate of debt issued			3.25%
Conversion ratio			0.00792896
Conversion price ($ per share) | $ / shares			$ 126.12
Threshold percentage of stock price trigger			130%
Threshold of trading days | tradingDay			20
Threshold of consecutive trading days | tradingDay			30
Aggregate percentage of holders to declare notes due and payable in default event			25%
Percentage of principal and accrued interest that may be called in default event			100%
Percentage of principal and accrued interest that may be called in event of bankruptcy, insolvency or reorganization			100%
Trading day threshold			5 days
Stock price trigger (in dollars per share) | $ / shares			$ 105.10
Make-whole payment term			3 years
Interest make-whole payment discount rate			1%
Debt aggregate face amount			$ 161,900,000
Effective interest rate			4.17%		4.23%
Contractual interest expense			$ 1,315,000	$ 1,315,000
Convertible Debt | 2025 Notes | Affiliated Entity
Debt Instrument [Line Items]
Carrying amount of debt			$ 80,400,000		$ 80,400,000

Debt - Components (Details)

Debt - Components (Details) - 2025 Notes - Convertible Debt - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal	$ 161,898	$ 161,898
Add: fair value of embedded derivative	0	0
Less: unamortized debt discount	(899)	(1,106)
Less: unamortized issuance costs	(715)	(880)
Net carrying amount	$ 160,284	$ 159,912

Debt - Interest Expense (Detail

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revolving Credit Facility
Debt Instrument [Line Items]
Contractual interest expense	$ 222	$ 118
Amortization of debt issuance costs	117	117
Total interest expense	339	235
2025 Notes | Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	1,315	1,315
Amortization of debt discount	207	207
Amortization of debt issuance costs	165	165
Total interest expense	$ 1,687	$ 1,687

Share-based Compensation - Expe

Share-based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 717	$ 1,800
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	31	184
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	160	248
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	165	330
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 361	$ 1,038

Share-based Compensation - Narr

Share-based Compensation - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General term (in years)	10 years
Unrecognized expense	$ 0.7
Recognition period	3 years 3 months 14 days
Stock options | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Stock options | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition period	1 year 25 days
Unrecognized expense	$ 1.6
RSUs | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
RSUs | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years

Share-based Compensation - Acti

Share-based Compensation - Activity (Details)	3 Months Ended
	Mar. 31, 2024 shares
Stock Options
Outstanding — beginning balance	545,872
Granted	14,250
Canceled	(111,994)
Outstanding — ending balance	448,128
Exercisable — ending balance	338,346
RSUs
Restricted Stock Units
Non-vested — beginning balance	203,008
Granted	0
Vested	(6,597)
Forfeited	(10,590)
Non-vested — ending balance	185,821

Loss per Share - Calculation of

Loss per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net loss attributable to common stockholders		$ (5,245)	$ (5,827)
Weighted-average common shares outstanding, basic (in shares)	[1]	11,879,719	10,860,189
Weighted-average common shares outstanding, diluted (in shares)	[1]	11,879,719	10,860,189
Basic net income (loss) per share (in dollars per share)	[1]	$ (0.44)	$ (0.54)
Diluted net income (loss) per share (in dollars per share)	[1]	$ (0.44)	$ (0.54)
[1] Adjusted retroactively for reverse stock split that occurred on January 24, 2024, see Note 1

Loss per Share - Narrative (Det

Loss per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	1,998	2,539

Loss per Share - Antidilutive S

Loss per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	1,998	2,539
2025 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	1,338	1,409
Non-qualified stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	448	796
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	186	114
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	26	220

Public Offering (Details)

Public Offering (Details) - Canaccord Genuity LLC - ATM Offering - USD ($)	3 Months Ended
	Mar. 31, 2023	Jan. 31, 2021
Class of Stock [Line Items]
Equity Distribution Agreement, maximum aggregate amount authorized for offer or sale		$ 40,000,000
Number of shares issued (in shares)	85,810
Purchase price (in dollars per share)	$ 6.17
Proceeds from sale of stock	$ 500,000

Geographic Information and Co_3

Geographic Information and Concentrations of Risk - Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 45,009	$ 50,794
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	35,476	43,205
Europe (including United Kingdom)
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	6,751	5,987
Australia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	2,780	1,598
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 2	$ 4

Geographic Information and Co_4

Geographic Information and Concentrations of Risk - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Net Revenues | Customer concentration risk | Customer one
Segment Reporting Information [Line Items]
Concentration percentage	39.30%	31.10%
Net Revenues | Customer concentration risk | Customer two
Segment Reporting Information [Line Items]
Concentration percentage	18.20%	26.60%
Accounts Receivable | Credit concentration risk | Customer one
Segment Reporting Information [Line Items]
Concentration percentage	32%		41.80%
Accounts Receivable | Credit concentration risk | Customer two
Segment Reporting Information [Line Items]
Concentration percentage	13.30%		10.20%
Accounts Receivable | Credit concentration risk | Customer three
Segment Reporting Information [Line Items]
Concentration percentage	10.90%

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2024 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Noncancellable purchase obligations	$ 60.1

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax provision	$ 237	$ 311

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent event $ in Millions	Apr. 18, 2024 USD ($)
Subsequent Event [Line Items]
Repayments of line of credit	$ 3
South Ocean Funding, LLC and North Sound Ventures, LP
Subsequent Event [Line Items]
Termination fee	0.4
Repurchased face amount	$ 4