Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 02, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | INVE | ||
Entity Registrant Name | Identiv, Inc. | ||
Entity Central Index Key | 0001036044 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity File Number | 0-29440 | ||
Entity Tax Identification Number | 77-0444317 | ||
Entity Address, Address Line One | 2201 Walnut Avenue | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Fremont | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94538 | ||
City Area Code | 949 | ||
Local Phone Number | 250-8888 | ||
Security12b Title | Common Stock, $0.001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 22,298,610 | ||
Entity Public Float | $ 323,453,815 | ||
Auditor Firm ID | 207 | ||
Auditor Name | BPM LLP | ||
Auditor Location | San Jose, California | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Designated portions of the Company’s Proxy Statement to be filed within 120 days after the Registrant’s fiscal year end of December 31, 2021 are incorporated by reference into Part II, Item 5 and Part III of this Report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 28,553 | $ 11,409 |
Restricted cash | 1,254 | |
Accounts receivable, net of allowances of $2,745 and $178 as of December 31, 2021 and 2020, respectively | 19,963 | 18,927 |
Inventories | 19,924 | 20,296 |
Prepaid expenses and other current assets | 3,032 | 2,813 |
Total current assets | 72,726 | 53,445 |
Property and equipment, net | 4,066 | 2,827 |
Operating lease right-of-use assets | 2,088 | 3,405 |
Intangible assets, net | 6,445 | 7,563 |
Goodwill | 10,268 | 10,266 |
Other assets | 1,070 | 1,171 |
Total assets | 96,663 | 78,677 |
Current liabilities: | ||
Accounts payable | 10,502 | 10,964 |
Current portion - contractual payment obligation | 1,040 | |
Current portion - financial liabilities, net of debt issuance costs of $0 and $59 as of December 31, 2021 and 2020, respectively | 20,084 | |
Operating lease liabilities | 1,269 | 1,279 |
Deferred revenue | 2,153 | 1,981 |
Accrued compensation and related benefits | 3,150 | 2,985 |
Other accrued expenses and liabilities | 3,774 | 3,240 |
Total current liabilities | 20,848 | 41,573 |
Long-term operating lease liabilities | 938 | 2,272 |
Long-term deferred revenue | 280 | 385 |
Other long-term liabilities | 85 | 258 |
Total liabilities | 22,151 | 44,488 |
Commitments and contingencies (see Note 17) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value: 50,000 shares authorized; 23,707 and 19,450 shares issued and 22,230 and 18,055 shares outstanding as of December 31, 2021 and 2020, respectively | 24 | 19 |
Additional paid-in capital | 492,657 | 452,129 |
Treasury stock 1,477 and 1,395 shares as of December 31, 2021 and 2020, respectively | (11,134) | (9,933) |
Accumulated deficit | (408,989) | (410,609) |
Accumulated other comprehensive income | 1,949 | 2,578 |
Total stockholders' equity | 74,512 | 34,189 |
Total liabilities and stockholders' equity | 96,663 | 78,677 |
Series B Convertible Preferred Stock | ||
Stockholders' equity: | ||
Series B preferred stock, $0.001 par value: 5,000 shares authorized; 5,000 shares issued and outstanding as of December 31, 2021 and 2020, respectively | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, allowances | $ 2,745 | $ 178 |
Debt instrument debt issuance costs, current | $ 0 | $ 59 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 23,707,000 | 19,450,000 |
Common stock, shares outstanding | 22,230,000 | 18,055,000 |
Treasury stock, shares | 1,477,000 | 1,395,000 |
Series B Convertible Preferred Stock | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 5,000,000 | 5,000,000 |
Preferred stock, outstanding | 5,000,000 | 5,000,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 103,769 | $ 86,920 |
Cost of revenue | 66,702 | 53,239 |
Gross profit | 37,067 | 33,681 |
Operating expenses: | ||
Research and development | 8,673 | 9,781 |
Selling and marketing | 17,033 | 17,270 |
General and administrative | 11,891 | 8,623 |
Decrease in fair value of earnout liability | (261) | |
Restructuring and severance | 817 | 1,716 |
Total operating expenses | 38,414 | 37,129 |
Loss from operations | (1,347) | (3,448) |
Non-operating income (expense): | ||
Interest expense, net | (483) | (1,462) |
Gain on forgiveness of Paycheck Protection Program note | 2,946 | |
Gain on investment | 611 | |
Foreign currency losses, net | (79) | (122) |
Income (loss) before income tax provision | 1,648 | (5,032) |
Income tax provision | (28) | (73) |
Net income (loss) | 1,620 | (5,105) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (629) | 553 |
Comprehensive income (loss) | $ 991 | $ (4,552) |
Net income (loss) per common share: | ||
Basic | $ 0.02 | $ (0.34) |
Diluted | $ 0.02 | $ (0.34) |
Weighted average shares used in computing net income (loss) per common share: | ||
Basic | 21,340 | 17,978 |
Diluted | 22,267 | 17,978 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred StockSeries B Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning Balances at Dec. 31, 2019 | $ 35,466 | $ 5 | $ 18 | $ 447,965 | $ (9,043) | $ (405,504) | $ 2,025 |
Beginning Balances (in shares) at Dec. 31, 2019 | 5,000,000 | 16,986,000 | |||||
Net income (loss) | (5,105) | (5,105) | |||||
Unrealized income (loss) from foreign currency translation adjustments | 553 | 553 | |||||
Issuance of common stock in connection with vesting of stock awards (shares) | 632,000 | ||||||
Proceeds from exercise of stock options | 13 | 13 | |||||
Proceeds from exercise of stock options | 3,000 | ||||||
Stock-based compensation | 3,027 | 3,027 | |||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units | (890) | (890) | |||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units (shares) | (172,000) | ||||||
Issuance of common stock in connection with earnout | 489 | 489 | |||||
Issuance of common stock in connection with Earnout, (shares) | 157,000 | ||||||
Issuance of shares to non-employees | 304 | 304 | |||||
Issuance of shares to non-employees (shares) | 62,000 | ||||||
Issuance of common stock in connection with warrant exercise | $ 1 | (1) | |||||
Issuance of common stock in connection with warrant exercise (shares) | 387,000 | ||||||
Issuance of warrants | 332 | 332 | |||||
Ending Balances at Dec. 31, 2020 | 34,189 | $ 5 | $ 19 | 452,129 | (9,933) | (410,609) | 2,578 |
Ending Balances (in shares) at Dec. 31, 2020 | 5,000,000 | 18,055,000 | |||||
Net income (loss) | 1,620 | 1,620 | |||||
Unrealized income (loss) from foreign currency translation adjustments | (629) | (629) | |||||
Issuance of common stock in connection with vesting of stock awards | 1 | $ 1 | |||||
Issuance of common stock in connection with vesting of stock awards (shares) | 421,000 | ||||||
Proceeds from exercise of stock options | $ 299 | 299 | |||||
Proceeds from exercise of stock options | 29,934 | 29,000 | |||||
Stock-based compensation | $ 2,606 | 2,606 | |||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units | (1,201) | (1,201) | |||||
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units (shares) | (82,000) | ||||||
Issuance of common stock in connection with warrant exercise (shares) | 28,000 | ||||||
Issuance of common stock in connection with public offering | 37,627 | $ 4 | 37,623 | ||||
Issuance of common stock in connection with public offering (shares) | 3,779,000 | ||||||
Ending Balances at Dec. 31, 2021 | $ 74,512 | $ 5 | $ 24 | $ 492,657 | $ (11,134) | $ (408,989) | $ 1,949 |
Ending Balances (in shares) at Dec. 31, 2021 | 5,000,000 | 22,230,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows used in operating activities: | ||
Net income (loss) | $ 1,620 | $ (5,105) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,971 | 3,313 |
Provision for doubtful accounts | 2,562 | (41) |
Gain on forgiveness of Paycheck Protection Program note | (2,946) | |
Gain on investment | (611) | |
Accretion of interest on contractual payment obligation | 43 | 139 |
Amortization of debt issuance costs | 108 | 497 |
Stock-based compensation expense | 2,606 | 3,027 |
Impairment of right-of-use operating lease asset | 281 | 1,294 |
Decrease in fair value of earnout liability | (261) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,572) | (550) |
Inventories | 389 | (4,105) |
Prepaid expenses and other assets | (12) | (570) |
Accounts payable | (441) | 2,455 |
Contractual payment obligation liability | (1,083) | (770) |
Deferred revenue | 67 | (467) |
Accrued expenses and other liabilities | 246 | (622) |
Net cash provided by (used in) operating activities | 1,228 | (1,766) |
Cash flows from investing activities: | ||
Capital expenditures | (2,087) | (1,564) |
Proceeds from investment | 611 | |
Net cash used in investing activities | (1,476) | (1,564) |
Cash flows from financing activities: | ||
Borrowings under revolving loan facility, net of issuance costs | 3,964 | 3,362 |
Repayments under revolving loan facility | (18,548) | (3,347) |
Borrowings under East West Bank term loan | 4,500 | |
Repayments under East West Bank term loan | (4,500) | |
Proceeds from April 21 Funds promissory notes | 4,000 | |
Repayments of April 21 Funds promissory notes | (2,800) | (1,200) |
Proceeds from the sale of common stock, net of issuance costs | (37,627) | |
Proceeds from Paycheck Protection Program promissory note | 2,915 | |
Taxes paid related to net share settlement of restricted stock units | (1,201) | (890) |
Proceeds from exercise of stock options | 299 | 13 |
Net cash provided by financing activities | 19,341 | 4,853 |
Effect of exchange rates on cash, cash equivalents, and restricted cash | (695) | 503 |
Net increase in cash, cash equivalents, and restricted cash | 18,398 | 2,026 |
Cash, cash equivalents, and restricted cash at beginning of year | 11,409 | 9,383 |
Cash, cash equivalents, and restricted cash at end of year | 29,807 | 11,409 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 340 | 945 |
Taxes paid, net | 74 | 112 |
Non-cash investing and financing activities: | ||
Common stock issued to settle vendor liability | 304 | |
Common stock issued to settle earnout liability | 489 | |
Fair value of warrants issued in connection with financial liabilities | 332 | |
Dividends earned on Series B preferred stock | 1,148 | $ 1,094 |
Reclassification of debt issuance costs to prepaid expenses and other current assets | $ 114 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | 1. Description of Business Description of Business — Identiv, Inc. and its wholly owned subsidiaries (the “Company”) is a global security technology company provider of secure identification and physical security solutions that secure things, data and physical places. Global organizations in the mobility, consumer, government, healthcare, education and other markets rely upon the Company’s solutions. The Company’s solutions allow its customers to create safe, secure, validated and convenient experiences in their interaction with physical things around them and physical places like schools, government offices, factories, transportation, hospitals and other types of facilities. The Company’s corporate headquarters are in Fremont, California. The Company maintains research and development facilities in California, and Chennai, India and local operations and sales facilities in Germany, Hong Kong, Japan, Singapore, Canada, and the United States. The Company was founded in 1990 in Munich, Germany and was incorporated in 1996 under the laws of the State of Delaware. |
Significant Accounting Policies
Significant Accounting Policies and Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Significant Accounting Policies and Recent Accounting Pronouncements | 2. Significant Accounting Policies and Recent Accounting Pronouncements Principles of Consolidation — The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications — Certain reclassifications have been made to the fiscal year 2020 consolidated financial statements to conform to the fiscal year 2021 presentation. The reclassifications had no impact on net income (loss), total assets, total liabilities, or stockholders’ equity. Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company believes judgment is involved in determining revenue recognition; impairment of goodwill and intangible assets; the recoverability of long-lived assets; stock-based compensation expense; and income tax uncertainties. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ materially from those estimates and assumptions. Cash and Cash Equivalents and Restricted Cash — The Company considers all highly liquid investments with an original maturity of 90 days or less or investments with a remaining maturity of 90 days or less at the date of purchase to be cash equivalents and investments with original maturities greater than 90 days but less than one year to be short-term investments. The Company classifies debt securities with readily determinable market values as available-for-sale. Restricted cash of $1.3 million pertains primarily to a stand by letter of credit with a manufacturer for equipment purchased for the Company’s manufacturing facility in Singapore. Concentration of Credit Risk — Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with what it considers high credit quality financial institutions. No customer accounted for 10% or more of net revenue for the years ended December 31, 2021 or 2020, respectively. No customer accounted for 10% or more of the Company’s accounts receivable balance as of December 31, 2021 or 2020. The Company does not require collateral or other security to support accounts receivable. To reduce risk, the Company’s management performs ongoing credit evaluations of its customers’ financial condition. The Company maintains allowances for potential credit losses in its consolidated financial statements. The Company relies upon a limited number of suppliers for some key components of their products which exposes them to various risks. No supplier accounted for 10% or more of the Company’s accounts payable balance as of December 31, 2021 or 2020. Allowance for Doubtful Accounts — The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of customer accounts. The Company regularly reviews its receivables that remain outstanding past their applicable payment terms and establishes an allowance and potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. Although the Company expects to collect net amounts due as stated on the consolidated balance sheets, actual collections may differ from these estimated amounts. Inventories — Inventories are stated at the lower of cost (using average cost or standard cost, as applicable) or net realizable value (market). Inventory is written down for excess inventory, technical obsolescence and the inability to sell based primarily on historical sales and expectations for future use. The Company operates in an industry characterized by technological change. The planning of production and inventory levels is based on internal forecasts of customer demand, which are highly unpredictable and can fluctuate substantially. Should the demand for the Company’s products prove to be significantly less than anticipated, the ultimate realizable value of the Company’s inventory could be substantially less than amounts in the consolidated balance sheets. Once inventory has been written down below cost, it is not subsequently written up. Property and Equipment — Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed using the straight-line method over estimated useful lives of three to ten years for furniture, fixture and office equipment, five to seven years for machinery, five years for automobiles and three years for computer software. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. Intangible Assets — Amortizable intangible assets include trademarks, developed technology and customer relationships acquired as part of business combinations. Intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives ranging from four to twelve years and are reviewed for impairment. Goodwill — Goodwill represents the excess of the aggregate of the fair value of consideration transferred in a business combination, over the fair value of assets acquired, net of liabilities assumed. In accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other (“ASC 350”), goodwill is not amortized but is tested for impairment on an annual basis, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing the qualitative assessment, the Company identifies and considers the significance of relevant key factors, events, and circumstances that affect the fair value of its reporting units. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, then it performs the quantitative impairment test which compares the estimated fair value of the reporting unit to its carrying value, including goodwill. If the carrying amount of the reporting unit is in excess of its fair value, an impairment loss would be recorded in the consolidated statement of comprehensive income (loss) Long-Lived Assets — The Company reviews long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the total estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, is assessed using discounted cash flows or other appropriate measures of fair value. There were no impairment losses recorded during the years ended December 31, 2021 or 2020. Leases — The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. Freight Costs — The Company reflects the cost of shipping its products to customers as a cost of revenue. Reimbursements received from customers for freight costs are recognized as product revenue. Research and Development — Costs to research, design, and develop the Company’s products are expensed as incurred and consist primarily of employee compensation, external contractor costs, and fees for the development of prototype products. Software development costs are capitalized beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Generally, the Company’s products are released soon after technological feasibility has been established. Costs incurred subsequent to achieving technological feasibility have not been significant and generally have been expensed as incurred. As of December 31, 2021 and 2020, the net amount of capitalized software development costs were $303,000 and $280,000, respectively, and are included in other current and long term assets in the accompanying consolidated balance sheets. The Company capitalizes certain costs for its internal-use software incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight line basis over its estimated useful life, generally three years. The estimated useful life is determined based on management’s judgment on how long the core technology and functionality serves internal needs and the customer base. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company recorded amortization expense related to software development costs of $55,000 and $78,000 for the years ended December 31, 2021 and 2020, respectively. The Company capitalized software development costs of $84,000 in 2021. No software development costs were capitalized in 2020. Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant for the years ended December 31, 2021 and 2020. Stock-based Compensation — The Company accounts for all stock-based payment awards, including employee stock options, restricted stock awards, and performance share units in accordance with ASC 718, (“ASC 718”). Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award. Compensation expense for all stock-based payment awards is recognized using the straight-line single-option approach. Employee stock options awards are valued under the single-option approach and amortized on a straight-line basis, net of estimated forfeitures. The value of the portion of the stock option award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of comprehensive income (loss). See Note 11, , for further information regarding the Company’s stock-based compensation assumptions and expenses. The Company has elected to use the Black Scholes pricing model to estimate the fair value of its stock options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Since the Company has been publicly traded for many years, it utilizes its own historical volatility in valuing its stock option grants. The expected life of an award is based on historical experience, the terms and conditions of the stock awards granted to employees, as well as the potential effect from options that have not been exercised at the time. The assumptions used in calculating the fair value of stock-based payment awards represent management’s estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and the Company uses different assumptions, its stock-based compensation expense could be materially different in the future. In addition, the Company estimates the expected forfeiture rate and recognizes expense only for those awards which are ultimately expected-to-vest shares. If the actual forfeiture rate is materially different from the Company’s estimate, the recorded stock-based compensation expense could be different. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Income Taxes — The Company accounts for income taxes in accordance with ASC 740, (“ASC 740”), which requires the asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes reflect the recognition of future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The carrying value of net deferred tax assets reflects that the Company has been unable to generate sufficient taxable income in certain tax jurisdictions. A valuation allowance is provided to reduce the deferred tax asset to an amount that is more likely than not to be realized. The deferred tax assets are still available for the Company to use in the future to offset taxable income, which would result in the recognition of a tax benefit and a reduction in the Company’s effective tax rate. Actual operating results and the underlying amount and category of income in future years could render the Company’s current assumptions, judgments and estimates of the realizability of deferred tax assets inaccurate, which could have a material impact on its financial position or results of operations. The Company accounts for uncertain tax positions in accordance with ASC 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. It prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Such changes in recognition or measurement might result in the recognition of a tax benefit or an additional charge to the tax provision in the period. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of comprehensive income (loss). Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. See Note 9, Income Taxes Net Income (Loss) Per Share — Basic net income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is based upon the weighted average number of common shares and dilutive-potential common share equivalents outstanding during the period (using the treasury stock or if-converted method), if applicable. Dilutive-potential common share equivalents are excluded from the computation of net income (loss) per share in loss periods, as their effect would be antidilutive. See Note 12, , for further information regarding the Company’s computation of both basic and diluted net income (loss) per common share. Comprehensive Income (Loss) — Comprehensive income (loss) for the years ended December 31, 2021 and 2020 has been disclosed within the consolidated statements of comprehensive income (loss). Other accumulated comprehensive income (loss) includes net foreign currency translation adjustments, which are excluded from consolidated net income (loss). Foreign Currency Translation and Transactions — The functional currencies of the Company’s foreign subsidiaries are the local currencies, except for the Singapore subsidiary, which uses the U.S. dollar as its functional currency. For those subsidiaries whose functional currency is the local currency, the Company translates assets and liabilities to U.S. dollars using period-end exchange rates and translates revenues and expenses using average exchange rates during the period. Exchange gains and losses arising from translation of foreign entity financial statements are included as a component of other comprehensive income (loss) and gains and losses from transactions denominated in currencies other than the functional currency of the Company are included in the Company’s consolidated statements of comprehensive income (loss). The Company recognized net currency losses of $0.1 million in 2021, and $0.1 million in 2020. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. Unless otherwise discussed, the Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on its financial position or results of operations upon adoption. In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments Codification Improvement to Topic 326, Financial Instruments – Credit Losses Codification Improvements to Topic 326, Financial Instruments – Credit Losses Derivatives and Hedging , Financial Instruments Financial Instruments Credit Losses (Topic 326) Targeted Transition Relief Financial Instruments-Credit Losses Derivatives and Hedging Leases Codification Improvements to Topic 326, Financial Instruments-Credit Losses. Additionally, ASU No. 2019-10 defers the effective date for the adoption of the new standard on credit losses for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which will be fiscal 2023 for the Company if it continues to be classified as a SRC. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The subsequent amendments will have the same effective date and transition requirements as ASU No. 2016-13. Early adoption is permitted. Topic 326 requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company is currently evaluating the impact of Topic 326, the Company does not expect the adoption of the ASU to have a material impact on its consolidated financial statements. In December 2019, FASB issued ASU 2019-12, Income Taxes (740), Simplifying the Accounting for Income Taxes The Company adopted this standard on January 1, 2021, and it did not have a material impact on the Company’s consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. Revenue Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of its products, software licenses, and services, which are generally capable of being distinct and accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its standalone selling price. The stated contract value is generally the transaction price to be allocated to the separate performance obligations. Revenue is recognized net of any taxes collected from customers that are subsequently remitted to governmental authorities. Nature of Products and Services The Company derives revenues from sales of hardware products, software licenses, subscriptions, professional services, software maintenance and support, and extended hardware warranties. Hardware Product Revenues — Guarantees Software License Revenues — Subscription Revenues — the right to take possession of the software supporting the subscription service, or if applicable, any hardware devices at any time during the contract period, and as such are not considered separate performance obligations. Revenue is recognized ratably on a straight-line basis over the term of the contract beginning when the service is made available to the customer. Subscription contract terms range from month-to-month to six years in length and billed monthly or annually. Professional Services Revenues — Software Maintenance and Support Revenues — Extended Hardware Warranties Revenues — two Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Hardware products When customer obtains control of the product (point-in-time) Within 30-60 days of shipment Observable in transactions without multiple performance obligations Software licenses When license is delivered to customer or made available for download, and the applicable license period has begun (point-in-time) Within 30-60 days of the beginning of license period Established pricing practices for software licenses bundled with software maintenance, which are separately observable in renewal transactions Subscriptions Ratably over the course of the subscription term (over time) In advance of subscription term Contractually stated or list price Professional services As services are performed and/or when contract is fulfilled (point-in-time) Within 30-60 days of delivery Observable in transactions without multiple performance obligations Software maintenance and support services Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions Extended hardware warranties Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. For such arrangements, the Company allocates the transaction price to each performance obligation based on its relative standalone selling price (“SSP”). Judgment is required to determine the SSP for each distinct performance obligation in a contract. For the majority of items, the Company estimates SSP using historical transaction data. The Company uses a range of amounts to estimate SSP when it sells each of the products and services separately and needs to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when the product or service is not sold separately, the Company determines the SSP using information that may include market conditions and other observable inputs. The determination of SSP is an ongoing process and information is reviewed regularly in order to ensure SSPs reflect current information or trends. Disaggregation of Revenues The Company disaggregates revenue from contracts with customers based on the timing of transfer of goods or services to customers (point-in-time or over time) and geographic region based on the shipping location of the customer. The geographic regions that are tracked are the Americas, Europe and the Middle East, and Asia-Pacific regions. Total net sales based on the disaggregation criteria described above are as follows (in thousands): Year Ended December 31, 2021 2020 Point-in- Point-in- Time Over Time Total Time Over Time Total Americas $ 66,162 $ 3,234 $ 69,396 $ 54,491 $ 3,811 $ 58,302 Europe and the Middle East 12,507 369 12,876 9,124 373 9,497 Asia-Pacific 21,497 — 21,497 19,121 — 19,121 Total $ 100,166 $ 3,603 $ 103,769 $ 82,736 $ 4,184 $ 86,920 Contract Balances Amounts invoiced in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company’s deferred revenue balance is related software maintenance contracts. Payment terms and conditions vary by contract type, although payment is typically due within 30 to 60 days of contract inception. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, not to receive financing from its customers. Changes in deferred revenue during the years ended December 31, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2021 2020 Deferred revenue, beginning of period $ 2,366 $ 2,833 Deferral of revenue billed in current period, net of recognition 1,905 1,591 Recognition of revenue deferred in prior periods (1,838 ) (2,058 ) Deferred revenue, end of period $ 2,433 $ 2,366 Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables and are included in other current assets on the consolidated balance sheet. As of December 31, 2021 and 2020, the amount of unbilled receivables was immaterial. Unsatisfied Performance Obligations Revenue expected to be recognized in future periods related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less, and contracts where revenue is recognized as invoiced, was approximately $0.6 million as of December 31, 2021. Since the Company typically invoices customers at contract inception, this amount is included in the deferred revenue balance. As of December 31, 2021, the Company expects to recognize approximately 57% of the revenue related to these unsatisfied performance obligations during 2022, 24% during 2023, and 19% thereafter. Practical Expedients The Company has elected the following practical expedients in accordance with ASC 606, Revenue from Contracts with Customers • The Company expenses costs as incurred for costs to obtain a contract when the amortization period would have been one year or less. These costs include internal sales force compensation programs and certain partner sales incentive programs as the Company has determined annual compensation is commensurate with annual sales activities. • The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling and marketing expense. • The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. • The Company does not consider the time value of money for contracts with original durations of one year or less. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The Company determines the fair values of its financial instruments based on a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. Under ASC 820, Fair Value Measurement and Disclosures • Level 1 – Quoted prices (unadjusted) for identical assets and liabilities in active markets; • Level 2 – Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly; and • Level 3 – Unobservable inputs. Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2021 and 2020, the only assets measured and recognized at fair value on a recurring basis were nominal cash equivalents. As of December 31, 2021 and 2020, there were no liabilities measured and recognized at fair value on a recurring basis, other than contingent consideration related to prior acquisitions as of December 31, 2020 which had no fair value. Assets and Liabilities Measured at Fair Value on a Non-recurring Basis Certain of the Company's assets, including goodwill, intangible assets, and privately-held investments, are measured at fair value on a nonrecurring basis if impairment is indicated. Purchased intangible assets are measured at fair value primarily using discounted cash flow projections. For additional discussion of measurement criteria used in evaluating potential impairment involving goodwill and intangible assets, refer to Note 5, Goodwill and Intangible Assets As of December 31, 2021 and 2020, the Company had $348,000 of privately-held investments measured at fair value on a nonrecurring basis, which were classified as Level 3 assets due to the absence of quoted market prices and inherent lack of liquidity. The Company reviews its investments to identify and evaluate investments that have an indication of possible impairment. The Company adjusts the carrying value for its privately-held investments for any impairment if the fair value is less than the carrying value of the respective assets on an other-than-temporary basis. The amount of privately-held investments is included in other assets in the accompanying consolidated balance sheets. During the year ended December 31, 2021, t he Company received proceeds of approximately $611,000 from the acquisition of a private company that the Company had invested in, which had been fully impaired and had no carrying value. As of December 31, 2021 and 2020, there were no liabilities that are measured and recognized at fair value on a non-recurring basis. Assets and Liabilities Not Measured at Fair Value The carrying amounts of the Company's accounts receivable, prepaid expenses and other current assets, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. The carrying value of the Company’s financial liabilities approximates fair value based upon borrowing rates currently available to the Company for loans with similar terms. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill The following table summarizes the activity of goodwill (in thousands): Identity Premises Total Balance as of December 31, 2019 $ 3,554 $ 6,684 $ 10,238 Currency translation adjustment — 28 28 Balance as of December 31, 2020 $ 3,554 $ 6,712 $ 10,266 Balance as of December 31, 2020 $ 3,554 $ 6,712 $ 10,266 Currency translation adjustment — 2 2 Balance as of December 31, 2021 $ 3,554 $ 6,714 $ 10,268 In accordance with ASC 350, the Company tests goodwill for impairment on an annual basis, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing the qualitative assessment, the Company identifies and considers the significance of relevant key factors, events, and circumstances that affect the fair value of its reporting units. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, then the Company will perform the quantitative impairment test which compares the estimated fair value of the reporting unit to its carrying value, including goodwill. If the carrying amount of the reporting unit is in excess of its fair value, an impairment loss would be recorded in the consolidated statement of comprehensive income (loss). During Intangible Assets The following table summarizes the gross carrying amount and accumulated amortization for intangible assets resulting from acquisitions (in thousands): Developed Customer Trademarks Technology Relationships Total Amortization period (in years) 5 10 - 12 4 - 12 Gross carrying amount as of December 31, 2021 $ 764 $ 9,127 $ 15,774 $ 25,665 Accumulated amortization (536 ) (6,219 ) (12,465 ) (19,220 ) Intangible assets, net as of December 31, 2021 $ 228 $ 2,908 $ 3,309 $ 6,445 Gross carrying amount as of December 31, 2020 $ 765 $ 9,123 $ 15,771 $ 25,659 Accumulated amortization (382 ) (5,773 ) (11,941 ) (18,096 ) Intangible assets, net as of December 31, 2020 $ 383 $ 3,350 $ 3,830 $ 7,563 Each period, the Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. If a revision to the remaining period of amortization is warranted, amortization is prospectively adjusted over the remaining useful life of the intangible asset. Intangible assets subject to amortization are amortized on a straight-line basis over their useful lives as indicated in the table above. The Company performs an evaluation of its amortizable intangible assets for impairment at the end of each reporting period. The Company did not identify any impairment indicators during the years ended December 31, 2021 and 2020. The following table summarizes the amortization expense included in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Cost of revenue $ 453 $ 899 Selling and marketing 671 1,666 Total $ 1,124 $ 2,565 The estimated annual future amortization expense for purchased intangible assets with definite lives as of December 31, 2021 was as follows (in thousands): 2022 $ 1,120 2023 1,044 2024 967 2025 967 2026 967 Thereafter 1,380 Total $ 6,445 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Statement Of Financial Position [Abstract] | |
Balance Sheet Components | 6. Balance Sheet Components The Company’s inventories are stated at the lower of cost or market value. Inventories consist of (in thousands): December 31, 2021 2020 Raw materials $ 7,182 $ 6,518 Work-in-progress — 34 Finished goods 12,742 13,744 Total $ 19,924 $ 20,296 Property and equipment, net consists of (in thousands): December 31, 2021 2020 Building and leasehold improvements $ 1,304 $ 1,498 Furniture, fixtures and office equipment 1,379 1,295 Plant and machinery 13,244 11,429 Purchased software 2,281 2,191 Total 18,208 16,413 Accumulated depreciation (14,142 ) (13,586 ) Property and equipment, net $ 4,066 $ 2,827 The Company recorded depreciation expense of $0.8 million and $0.7 million during the years ended December 31, 2021 and 2020, respectively. Other accrued expenses and liabilities consist of (in thousands): December 31, 2021 2020 Rental payments due to landlord $ 922 $ — Accrued professional fees 576 586 Accrued restructuring 294 801 Customer deposits 149 72 Accrued warranties 377 321 Other accrued expenses 1,456 1,460 Total $ 3,774 $ 3,240 The rental payments due to landlord relate to leased office space acquired in a prior acquisition. The office space was subleased, but the tenant went into default for non-payment beginning April 1, 2020. The Company is currently in active negotiations with the lessor to negotiate a settlement of the outstanding lease obligation. |
Contractual Payment Obligation
Contractual Payment Obligation | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Contractual Payment Obligation | 7. Contractual Payment Obligation Hirsch Electronics Corporation (“Hirsch”) Acquisition – Secure Keyboards and Secure Networks . Prior to the Company’s acquisition of Hirsch in 2009, in November 1994, Hirsch had entered into a settlement agreement (the “1994 Settlement Agreement”) with two limited partnerships, Secure Keyboards, Ltd. (“Secure Keyboards”) and Secure Networks, Ltd. (“Secure Networks”). On April 8, 2009, the 1994 Settlement Agreement was amended and restated to replace the royalty-based payment arrangement with an installment payment schedule with contractual payments to be made in future periods through 2021 (the “2009 Settlement Agreement”). On April 30, 2009, as part of the acquisition of Hirsch, the Company provided Secure Keyboards and Secure Networks with a limited guarantee of Hirsch’s payment obligation under the 2009 Settlement Agreement. On April 13, 2020, the Company, Secure Keyboards, and Secure Networks, amended the 2009 Settlement Agreement. The amendment reduced the amount of quarterly payments due under the obligation in 2020, and required three additional quarterly payments in 2021. The Company’s remaining payment obligation under the 2009 Settlement Agreement, as amended, was extended through October 31, 2021. The Company included approximately $43,000 and $139,000 of interest expense during the years ended December 31, 2021 and 2020, respectively, in its consolidated statements of comprehensive income (loss) for interest accreted on the payment obligation. As of December 31, 2021, the Company had paid all amounts outstanding under the 2009 Settlement Agreement, as amended. |
Financial Liabilities
Financial Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Financial Liabilities | 8. Financial Liabilities Financial liabilities consist of (in thousands): December 31, 2021 2020 Revolving loan facility $ — $ 14,428 April 21 Funds promissory notes — 2,800 Paycheck Protection Program note — 2,915 Total — 20,143 Less: Current maturities of financial liabilities — (20,084 ) Less: Unamortized debt issuance costs — (59 ) Long-term financial liabilities $ — $ — East West Bank On February 8, 2017, the Company entered into a Loan and Security Agreement with East West Bank (“EWB”). Following subsequent amendments, on February 8, 2021 the Company amended and restated the Loan and Security Agreement in its entirety (the “Loan and Security Agreement”). The Loan and Security Agreement provides for a $20.0 million revolving loan facility subject to a borrowing base and a $4.0 million non-formula revolving loan facility that was not subject to a borrowing base. The maturity date of the main revolving loan facility is February 8, 2023. The non-formula revolving loan facility terminated on February 7, 2022. The Company’s obligations under the Loan and Security Agreement are collateralized by substantially all of its assets. As of December 31, 2021, the Company had repaid all amounts outstanding under its Loan and Security Agreement. Advances under the revolving loan facility will initially bear interest at a per annum rate equal to the prime rate as determined under the Loan and Security Agreement plus 0.25%. On April 30, 2021, the Company entered into an amendment to its Loan and Security Agreement which reduced the per annum interest rate to the prime interest rate. The Company may voluntarily prepay amounts outstanding under the revolving loan facility without prepayment charges. In the event the Loan and Security Agreement is terminated prior to February 8, 2023, the Company would be required to pay an early termination fee in the amount of 2.0% of the main revolving loan line if terminated prior to February 8, 2022 and 1% of the main revolving loan line thereafter. Additional borrowing requests under the revolving loan facilities are subject to various customary conditions precedent, including a borrowing base for the main revolving loan facility. The Loan and Security Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, limits or restrictions on the Company’s ability to incur liens, incur indebtedness, make certain restricted payments (including dividends), merge or consolidate and dispose of assets. In addition, the Loan and Security Agreement contains financial covenants requiring that the Company (i) hold $5 million in unrestricted cash in accounts with EWB, (ii) maintain a monthly minimum trailing six-month EBITDA of $0.6 million for the first two quarters of 2021 and $1.2 million thereafter and (iii) maintain, if the Company converts into the term loan and starting with the quarter ending March 31, 2022, a quarterly fixed charge coverage ratio of at least 1.35:1.00. The Loan and Security Agreement contains customary events of default that entitle EWB to cause any or all of the Company’s indebtedness under it to become immediately due and payable. The events of default (some of which are subject to applicable grace or cure periods), include, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. Upon the occurrence and during the continuance of an event of default, EWB may terminate its lending commitment and/or declare all or any part of the unpaid principal of all loans, all interest accrued and unpaid thereon and all other amounts payable under the Loan and Security Agreement to be immediately due and payable. As of December 31, 2021, there were no amounts outstanding, $14.5 million was available, and the Company was in compliance with all financial covenants under the Loan and Security Agreement. April 21 Funds On May 5, 2020, the Company issued secured subordinated promissory notes in an aggregate principal amount of $4.0 million (the “Notes”) to 21 April Fund, LP and 21 April Fund, Ltd. (collectively referred to as the “April 21 Funds”) pursuant to a Note and Warrant Purchase Agreement entered into with the April 21 Funds (the “Note Purchase Agreement”). The Notes were collateralized by the Company’s assets, but subordinate to the Company’s obligations to EWB under its Loan and Security Agreement. Proceeds from the sale of the Notes were only to be used for expenses incurred by the Company in connection with its provisions of goods and services under a statement of work with a third party. The Notes had an initial term of nine months and did not bear interest during that period. If the Notes were not repaid on or before the nine-month anniversary of issuance, (a) the Notes would thereafter bear interest of 8% per annum, payable quarterly, and (b) additional warrants to purchase common stock would be issuable to the April 21 Funds for each month all or a portion of the Notes remain unpaid, as further detailed in the Note Purchase Agreement. In the event the Notes were not paid in full by the first anniversary of their issuance, May 5, 2021, they would thereafter bear interest of 12% per annum, payable quarterly, and additional warrants would be issuable to the April 21 Funds. As discussed in Note 10, Stockholders’ Equity, On February 5, 2021, the Company entered into an amendment to the secured subordinated promissory note with April 21 Funds, which extended the initial term of the Notes to March 31, 2021. As a result of the amendment, if the Notes were repaid on or before March 31, 2021, the Company would incur no further interest on the Notes, or be obligated to issue additional warrants. On March 31, 2021, April 21 Funds waived any additional warrants issuable, and interest payable, to April 21 Funds through May 5, 2021. On April 13, 2021, the Company repaid the remaining principal amount outstanding of $ million. Paycheck Protection Program On April 9, 2020, the Company entered into a promissory note (the “PPP Note”) under the Paycheck Protection Program established under Section 1102 of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The PPP Note was dated April 8, 2020 with EWB. The Company borrowed a principal amount of approximately $2.9 million. The interest on the PPP Note was 1.0% per annum. The PPP Note was payable two years from the date of the PPP Note, and there was no prepayment penalty. All interest which accrues during the initial six months of the loan period was deferred and payable on the maturity date of the PPP Note. Notes issued under the CARES Act may be eligible for forgiveness in whole or in part in accordance with Small Business Administration rules established for the Paycheck Protection Program. On May 7, 2021, the principal and accrued interest amounts outstanding of approximately $2.9 million under the PPP Note had been forgiven. As a result, the Company recorded a gain on forgiveness of debt of $2.9 million in the second quarter of 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Income (loss) before income tax provision for domestic and non-U.S. operations is as follows (in thousands): December 31, 2021 2020 Income (loss) from operations before before income tax provision: U.S. $ (1,189 ) $ (6,321 ) Foreign 2,837 1,289 Income (loss) from operations before income tax provision $ 1,648 $ (5,032 ) The income tax provision consisted of the following (in thousands): December 31, 2021 2020 Deferred: Federal $ — $ — State — — Foreign — — $ — $ — Current: Federal $ — $ — State (24 ) (15 ) Foreign 52 88 Total current 28 73 Total income tax provision $ 28 $ 73 Significant items making up deferred tax assets and liabilities are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Allowances not currently deductible for tax purposes $ 978 $ 451 Net operating loss carryforwards 44,068 45,196 Operating lease liabilities 312 513 General carryforwards 16,433 16,242 Stock-based compensation 1,487 1,291 Accrued and other 1,961 1,990 65,239 65,683 Less valuation allowance (62,441 ) (62,699 ) 2,798 2,984 Deferred tax liabilities: Depreciation and amortization (925 ) (1,032 ) Operating lease right-of-use assets (10 ) (169 ) State income taxes (1,863 ) (1,783 ) (2,798 ) (2,984 ) Net deferred tax asset $ — $ — Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2021. Such objective evidence limits the ability to consider other subjective evidence such as the Company’s projections for future growth. A valuation allowance of $62.4 million and $62.7 million as of December 31, 2021 and 2020, respectively, has been recorded to offset the related net deferred tax assets as the Company is unable to conclude that it is more likely than not that such deferred tax assets will be realized. The net deferred tax liabilities are primarily from foreign tax liabilities as well as intangibles acquired as a result of the acquisition of Hirsch and 3VR, which are not deductible for tax purposes. Section 951A under the Tax Cuts and Jobs Act (the “Act”) requires a U.S. shareholder of a controlled foreign corporation to include in taxable income the shareholder’s share of global intangible low-taxed income (“GILTI”) for the year. The Company has determined that the Section 951A provisions do apply to its operations and relationships with its controlled foreign corporations (“CFCs”). The Company recorded $2.5 million of GILTI income in 2021. The Company did not record any GILTI income in 2020 due to net tested losses at its CFCs. As of December 31, 2021, the Company had net operating loss carryforwards of $119.5 million for federal, $45.3 million for state and $69.0 million for foreign income tax purposes. Certain of the Company’s federal, state and foreign loss carryforwards have started expiring and will continue to expire through 2041 if not utilized. The Tax Reform Act of 1986 (the “Tax Reform Act”) limits the use of net operating loss and tax credit carryforwards in certain situations where changes occur in stock ownership. The Company completed its acquisition of Bluehill ID AG on January 4, 2010, which resulted in a stock ownership change as defined by the Tax Reform Act. The Company also completed its acquisition of 3VR on February 14, 2018, which resulted in a stock ownership change as defined by the Tax Reform Act. These transactions resulted in limitations on the annual utilization of federal and state net operating loss carryforwards and credits. As a result, the Company reevaluated its available deferred tax assets, and the loss carryforward and credit amounts, excluding the valuation allowance presented above have been adjusted for the limitation resulting from the change in ownership in accordance with the provisions of the Tax Reform Act. The income tax provision reconciled to the amount computed by applying the statutory federal tax rate to the income (loss) before income tax provision is as follows (in thousands): December 31, 2021 2020 Income tax provision at statutory federal tax rate of 21% $ 345 $ (1,057 ) State taxes, net of federal benefit (19 ) (12 ) Foreign taxes provisions provided for at rates other than U.S statutory rate (494 ) (202 ) Section 951(A) inclusion 523 — Stock options (443 ) — Change in valuation allowance 700 1,432 Permanent differences 42 (76 ) PPP loan forgiveness (619 ) — Other (7 ) (12 ) Total provision for income taxes $ 28 $ 73 The Company applies the provisions of, and accounted for uncertain tax positions in accordance with, ASC 740. ASC 740 clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial statements. It prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, and alternative minimum tax credit refunds. The Company analyzed the provisions of the CARES Act and determined there was no significant impact to its provision for income taxes for the year ended December 31, 2020. On June 29, 2020, California Governor Gavin Newsom signed Assembly Bill 85 (“AB85”) into law as part of the California 2020 Budget Act, which temporarily suspends the use of California net operating losses and imposes a cap on the amount of business incentive tax credits that companies can utilize against their net income for tax years 2020, 2021, and 2022. The Company analyzed the provisions of AB85 and determined there was no impact on the Company’s income tax provision for the years ended December 31, 2021 and 2020. On December 27, 2020, the Consolidated Appropriations Act, 2021 (the “CAA”) was signed into law. The CAA includes provisions meant to clarify and modify certain items put forth in CARES Act, while providing aid to businesses affected by the pandemic. The Company recorded an income tax benefit of $6.2 million in the year ended December 31, 2021 as a result of deductibility of expenses paid by the forgiveness of the PPP loan. A reconciliation of the beginning and ending amount of unrecognized tax benefits with an impact on the Company’s consolidated balance sheets or statements of comprehensive income (loss) is as follows (in thousands): December 31, 2021 2020 Balance at January 1 $ 2,307 $ 2,687 Additions based on tax positions related to the current year 1 1 Additions for tax positions of prior years — — Reductions in prior year tax positions (32 ) (381 ) Balance at December 31 $ 2,276 $ 2,307 While timing of the resolution and/or finalization of tax audits is uncertain, the Company does not believe that its unrecognized tax benefits as presented in the above table would materially change in the next 12 months. As of December 31, 2021 and 2020, the Company recognized liabilities for unrecognized tax benefits of $2.3 million and $2.3 million, respectively. Since there was a full valuation allowance against these deferred tax assets, there was no impact on the Company’s consolidated balance sheets or statements of comprehensive income (loss) for the years ended December 31, 2021 and 2020. Also the subsequent recognition, if any, of these previously unrecognized tax benefits would not affect the effective tax rate. Such recognition would result in adjustments to other tax accounts, primarily deferred taxes. The amount of unrecognized tax benefits which, if recognized, would affect the tax rate is $0.0 million and $0.1 million as of December 31, 2021 and 2020, respectively. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. During fiscal 2021, the Company recorded a decrease to accrued penalties of $3,000 and a decrease in accrued interest of $9,000 related to the unrecognized tax benefits noted above. As of December 31, 2021, the Company has recognized a total liability for penalties of $3,000 and interest of $5,000. During fiscal 2020, the Company recorded a decrease in accrued penalties of $5,000 and a decrease in accrued interest of $21,000 related to the unrecognized tax benefits noted above. As of December 31, 2020, the Company had recognized a total liability for penalties of $7,000 and interest of $14,000. The Company files U.S. federal, U.S. state and foreign tax returns. The Company generally is no longer subject to tax examinations for years prior to 2017. However, if loss carryforwards of tax years prior to 2017 are utilized in the U.S., these tax years may become subject to investigation by the tax authorities. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, 40,000 of which have been designated as Series A Participating Preferred Stock, par value $0.001 per share, and 5,000,000 of which have been designated as Series B Non-Voting Convertible Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”). No shares of the Company’s Series A Participating Preferred Stock were outstanding as of December 31, 2021 and 2020. At both December 31, 2021 and 2020, 5,000,000 shares of the Series B convertible preferred stock The Board of Directors may from time to time, without further action by the Company’s stockholders, direct the issuance of shares of preferred stock in other series and may, at the time of issuance, determine the rights, preferences and limitations of each series, including voting rights, dividend rights and redemption and liquidation preferences. Satisfaction of any dividend preferences of outstanding shares of preferred stock would reduce the amount of funds available for the payment of dividends on shares of the Company’s common stock. Holders of shares of preferred stock may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding-up of the Company before any payment is made to the holders of shares of the Company’s common stock. Upon the affirmative vote of the Board, without stockholder approval, the Company may issue shares of preferred stock with voting and conversion rights, which could adversely affect the holders of shares of its common stock. Series B Convertible Preferred Stock and Private Placement On December 20, 2017, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with each of 21 April Fund, Ltd. and 21 April Fund, LP (collectively, the “Purchasers”), pursuant to which the Company, in a private placement, agreed to issue and sell to the Purchasers an aggregate of up to 5,000,000 shares of the Series B convertible preferred stock Each Share shall be convertible into the Company’s common stock (i) following the sixth (6th) anniversary of the initial closing of the Private Placement or (ii) if earlier, during the thirty (30) day period following the last trading day of any period of three (3) or more consecutive trading days that the closing market price of the Company’s common stock exceeds $10.00. Each Share is convertible at the option of the holder of the Shares into such number of shares of the Company’s common stock determined by taking the accreted value of such Share (purchase price plus accrued but unpaid dividends) and dividing such value by the stated value of such Share ($4.00 per share, subject to adjustment for dilutive issuances, stock splits, stock dividends and the like); provided, however, that the Company shall not convert any Shares if doing so would cause the holder thereof, along with its affiliates, to beneficially own in excess of 19.9% of the outstanding common stock immediately after giving effect to the applicable conversion (the “Ownership Limitation”), unless waiver of this restriction has been effected by the holder requesting conversion of Shares. Based on the current conversion price, the outstanding shares, including the accretion of dividends, of Series B convertible preferred stock as of December 31, 2021 would be convertible into 6,029,297 Each share of Series B convertible preferred stock a cumulative th Series B convertible preferred stock Series B convertible preferred stock applicable to the Series B convertible preferred stock). Series B Convertible The following table summarizes Series B convertible preferred stock and the accretion of dividend activity for the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Series B Convertible Preferred Stock : Balance at beginning of period $ 22,969 $ 21,875 Cumulative dividends on Series B convertible preferred stock 1,148 1,094 Balance at end of period $ 24,117 $ 22,969 Number of Common Shares Issuable Upon Conversion : Number of shares at beginning of period 5,742 5,469 Cumulative dividends on Series B convertible preferred stock 287 273 Number of shares at end of period 6,029 5,742 Sale of Common Stock On April 7, 2021, the Company sold an aggregate of 3,779,342 shares of its common stock at a public offering price of $10.65 per share in an underwritten public offering. The Company received net proceeds of approximately $37.6 million from the sale of the common stock in the public offering, after deducting the underwriting discounts and other offering related expenses of $2.6 million. Common Stock Warrants On February 8, 2017, the Company entered into a Loan and Security Agreement with EWB . On May 5, 2020, the Company entered into an amendment to the Loan and Security Agreement, which included amending the EWB Warrant, reducing its exercise price from $3.64 to $3.50 per share and extending the expiration date of the EWB Warrant from February 8, 2022 to February 8, 2023. The Company calculated the fair value of the amended EWB Warrant using the Black Scholes pricing model using the following assumptions: estimated volatility of 63.2%, risk free interest rate of 0.24%, no dividend yield, and an expected life of three years. The fair value of the amended EWB Warrant of $42,000, as well as legal and administrative costs of $92,000, were recorded as a direct reduction from the carrying amount of the Revolving Loan Facility and amortized as interest expense over the remaining term of the Loan and Security Agreement. On February 11, 2021, EWB On May 5, 2020, the Company entered into a Note and Warrant Purchase Agreement with the April 21 Funds, as discussed in Note 8, Financial Liabilities, Below is the summary of outstanding warrants issued by the Company as of December 31, 2021: Warrant Type Number of Shares Issuable Upon Exercise Weighted Average Exercise Price Issue Date Expiration Date April 21 Funds Warrants 275,000 3.50 May 5, 2020 May 5, 2023 Common Stock Reserved for Future Issuance Common stock reserved for future issuance as of December 31, 2021 was as follows: Exercise of outstanding stock options, vesting of restricted stock units ("RSU"), vesting of performance stock units ("PSU"), and issuance of RSUs vested but not released 1,471,899 Employee Stock Purchase Plan 293,888 Shares of common stock available for grant under the 2011 Plan 947,004 Warrants to purchase common stock 275,000 Shares of common stock issuable upon conversion of Series B convertible preferred stock 7,541,449 Total 10,529,240 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. Stock-Based Compensation Stock Incentive Plan The Company maintains a stock-based compensation plan, the 2011 Incentive Compensation Plan, as amended, (the “2011 Plan”), to attract, motivate, retain and reward employees, directors and consultants by providing its Board or a committee of the Board the discretion to award equity incentives to these persons. On June 6, 2011, the Company’s stockholders approved the 2011 Plan, which is administered by the Compensation Committee of the Board. The 2011 Plan provides that stock options, stock units, restricted shares, and stock appreciation rights may be granted to executive officers, directors, consultants, and other key employees. The Company reserved 400,000 shares of common stock under the 2011 Plan, plus 459,956 shares of common stock that remained available for delivery under the 2007 Plan and the 2010 Plan as of June 6, 2011. In aggregate, as of June 6, 2011, 859,956 shares were available for future grant under the 2011 Plan, including shares rolled over from the 2007 Plan and the 2010 Plan. Subsequent to June 6, 2011 through December 31, 2021, the number of shares of common stock authorized for issuance under the 2011 Plan has been increased by an aggregate of 4,400,000 shares. Stock Options The following is a summary of stock option activity for the year ended December 31, 2021: Number Outstanding Average Exercise Price per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance as of December 31, 2020 550,769 $ 5.56 4.88 $ 1,875,719 Granted — — — Cancelled or Expired (6,142 ) 21.46 — Exercised (29,934 ) 10.00 — Balance as of December 31, 2021 514,693 $ 5.11 4.11 $ 11,850,930 Vested or expected to vest as of December 31, 2021 514,693 $ 5.11 4.11 $ 11,850,930 Exercisable as of December 31, 2021 514,693 $ 5.11 4.11 $ 11,850,930 The aggregate intrinsic value in the table above represents the difference between the fair value of the Company’s common stock as of December 31, 2021 and the exercise price of in-the-money stock options multiplied by the number of such stock options. The following table summarizes information about stock options outstanding as of December 31, 2021: Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $4.36 - $7.20 452,510 4.37 $ 4.41 452,510 $ 4.41 $7.50 - $11.25 61,317 2.23 10.19 61,317 10.19 $11.30 - $16.95 500 2.25 11.30 500 11.30 $19.70 - $29.55 366 0.36 19.70 366 19.70 $4.36 - $29.55 514,693 4.11 $ 5.11 514,693 $ 5.11 As of December 31, 2021, there was no unrecognized stock-based compensation expense related to stock options. Restricted Stock Units The following is a summary of RSU activity for the year ended December 31, 2021: Number Outstanding Weighted Average Fair Value Unvested as of December 31, 2020 682,563 $ 4.34 Granted 288,368 14.64 Vested (395,242 ) 5.76 Forfeited (89,960 ) 4.92 Unvested as of December 31, 2021 485,729 $ 9.19 RSUs vested but not released 296,477 $ 5.31 The fair value of the Company’s RSUs is calculated based upon the fair market value of the Company’s common stock at the date of grant. As of December 31, 2021, there was $3.6 million of unrecognized compensation cost related to unvested RSUs granted, which is expected to be recognized over a weighted average period of 2.9 years. Performance Stock Units The Company granted 200,000 PSUs to a certain key employee during the year ended December 31, 2020, with a grant date fair value of $6.38 per share. The PSUs are subject to the attainment of performance goals established by the Company’s Compensation Committee, the periods during which performance is to be measured, and other limitations and conditions. Performance goals are based on pre-established objectives that specify the manner of determining the number of PSUs that will vest if performance goals are attained. If the employee terminates employment, the non-vested portion of the PSUs will not vest and all rights to the non-vested portion will terminate. The following is a summary of PSU activity for the year ended December 31, 2021: Number Outstanding Unvested as of December 31, 2020 200,000 Granted — Vested (23,500 ) Forfeited (1,500 ) Unvested as of December 31, 2021 175,000 As of December 31, 2021, there was $1.1 million of unrecognized compensation cost related to unvested PSUs, which is expected to be recognized over a period of 1.0 year. No tax benefit was realized from PSUs for the year ended December 31, 2021. Stock-Based Compensation Expense The following table summarizes stock-based compensation expense related to stock options, RSUs, and PSUs included in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Cost of revenue $ 183 $ 160 Research and development 486 685 Selling and marketing 545 480 General and administrative 1,392 1,702 Total $ 2,606 $ 3,027 Restricted Stock Unit Net Share Settlements During the years ended December 31, 2021 and 2020, the Company repurchased 82,351 and 171,641 shares, respectively, of common stock surrendered to the Company to satisfy tax withholding obligations in connection with the vesting of RSUs issued to employees. |
Net Income (Loss) per Common Sh
Net Income (Loss) per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | 12. Net Income (Loss) per Common Share Basic net income (loss) per common share is computed by dividing net income (loss) available to common stockholders during the period by the weighted average number of common shares outstanding during that period. Diluted net income (loss) per common share is impacted by equity instruments considered to be potential common shares, if dilutive, computed using the treasury stock or the if-converted method of accounting. The calculations for basic and diluted net income (loss) per common share for the years ended December 31, 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 Basic net income (loss) per common share: Numerator: Net income (loss) $ 1,620 $ (5,105 ) Less: accretion of Series B convertible preferred stock dividends (1,148 ) (1,094 ) Net income (loss) available to common stockholders $ 472 $ (6,199 ) Denominator: Weighted average common shares outstanding - basic 21,340 17,978 Net income (loss) per common share - basic $ 0.02 $ (0.34 ) Diluted net income (loss) per common share: Numerator: Net income (loss) available to common stockholders $ 472 $ (6,199 ) Plus: accretion of Series B convertible preferred stock dividends, if dilutive — — Net income (loss) available to common stockholders $ 472 $ (6,199 ) Denominator: Weighted average common shares outstanding - basic 21,340 17,978 Dilutive securities: Stock options, RSUs, and warrants 927 — Weighted average common shares outstanding - diluted 22,267 17,978 Net income (loss) per common share - diluted $ 0.02 $ (0.34 ) The following common stock equivalents have been excluded from diluted net income (loss) per share for the fiscal years ended December 31, 2021 and 2020 because their inclusion would have been anti-dilutive (in thousands): December 31, 2021 2020 Shares of common stock subject to outstanding RSUs — 683 Shares of common stock subject to outstanding stock options — 551 Shares of common stock subject to outstanding warrants — 315 Shares of common stock issuable upon conversion of Series B convertible preferred stock 6,029 5,742 Total 6,029 7,291 |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | 13. Segment Reporting and Geographic Information Segment Reporting ASC 280, Segment Reporting The CODM reviews financial information and business performance for each operating segment. The Company evaluates the performance of its operating segments at the revenue and gross profit levels. The Company does not report total assets, capital expenditures or operating expenses by operating segment as such information is not used by the CODM for purposes of assessing performance or allocating resources. Net revenue and gross profit information by segment for the years ended December 31, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2021 2020 Identity: Net revenue $ 64,725 $ 52,742 Gross profit 15,670 14,781 Gross profit margin 24 % 28 % Premises: Net revenue 39,044 34,178 Gross profit 21,397 18,900 Gross profit margin 55 % 55 % Total: Net revenue 103,769 86,920 Gross profit 37,067 33,681 Gross profit margin 36 % 39 % Operating expenses: Research and development 8,673 9,781 Selling and marketing 17,033 17,270 General and administrative 11,891 8,623 Decrease in fair value of earnout liability — (261 ) Restructuring and severance 817 1,716 Total operating expenses: 38,414 37,129 Loss from operations (1,347 ) (3,448 ) Non-operating income (expense): Interest expense, net (483 ) (1,462 ) Gain on forgiveness of Paycheck Protection Program note 2,946 — Gain on investment 611 — Foreign currency losses, net (79 ) (122 ) Income (loss) before income tax provision $ 1,648 $ (5,032 ) Geographic Information Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the years ended December 31, 2021 and 2020 is as follows (in thousands): Year Ended December 31, 2021 2020 Americas $ 69,396 $ 58,302 Europe and the Middle East 12,876 9,497 Asia-Pacific 21,497 19,121 Total $ 103,769 $ 86,920 As percentage of net revenue: Americas 67 % 67 % Europe and the Middle East 12 % 11 % Asia-Pacific 21 % 22 % Total 100 % 100 % Long-lived assets by geographic location as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 2020 Property and equipment, net: Americas $ 545 $ 606 Europe and the Middle East 334 73 Asia-Pacific 3,187 2,148 Total property and equipment, net $ 4,066 $ 2,827 Operating lease ROU assets: Americas $ 1,344 $ 2,100 Europe and the Middle East 135 224 Asia-Pacific 609 1,081 Total property and equipment, net $ 2,088 $ 3,405 |
Restructuring and Severance
Restructuring and Severance | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Severance | 14. Restructuring and Severance During the year ended December 31, 2021, the Company incurred restructuring expenses of $817,000, consisting of facility rental related of $521, and severance related costs of $296,000. Facility rental related costs during the year ended December 31, 2021 included a charge of $281,000 resulting from the impairment of a ROU operating lease asset for office space the Company vacated in the first quarter of 2021 During the year ended December 31, 2020, the Company incurred restructuring expenses of $1,716,000, consisting of severance related costs of $375,000, and facility rental related costs associated with office space of an acquired business of approximately $1,341,000. The latter included a charge of $1,296,000 associated with the impairment of the ROU operating lease assets for office space we vacated in 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 15. Leases The Company’s leases consist primarily of operating leases for administrative office space, research and development facilities, a manufacturing facility, and sales offices in various countries around the world. The Company determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. Total rent expense was $ 1.3 Initial lease terms are determined at commencement and may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Remaining lease terms range from one to four years, some of which include options to extend for up to five years. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. As the Company’s leases do not provide an implicit rate, the present value of future lease payments is determined using the Company’s incremental borrowing rate based on information available at the lease commencement date. The table below reconciles the undiscounted cash flows for the first five years and the total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheets as of December 31, 2021 (in thousands): December 31, 2021 2022 $ 1,372 2023 494 2024 250 2025 231 2026 42 Total minimum lease payments 2,389 Less: amount of lease payments representing interest (182 ) Present value of future minimum lease payments 2,207 Less: current liabilities under operating leases (1,269 ) Long-term operating lease liabilities $ 938 As of December 31, 2021, the weighted average remaining lease term for the Company’s operating leases was 2 5.9 1.6 Cash paid for amounts included in the measurement of operating lease liabilities was $ 1.4 years ended December 31, 2021 |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Proceedings | 16. Legal Proceedings The Company is and from time to time, may become subject to claims arising in the ordinary course of business or could be named a defendant in additional lawsuits. The outcome of such claims or other proceedings cannot be predicted with certainty and may have a material effect on the Company’s financial condition, results of operations or cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of December 31, 2021 (in thousands): Purchase Commitments Other Contractual Commitments Total 2022 $ 36,838 $ 173 $ 37,011 2023 1,479 — 1,479 Total $ 38,317 $ 173 $ 38,490 Purchase commitments for inventories are highly dependent upon forecasts of customer demand. Due to the uncertainty in demand from its customers, the Company may have to change, reschedule, or cancel purchases or purchase orders from its suppliers. These changes may lead to vendor cancellation charges on these purchases or contractual commitments. The following table summarizes the Company’s warranty accrual activity during the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of period $ 321 $ 407 Accruals for warranties charged to expense 59 55 Cost of warranty claims (3 ) (141 ) Balance at end of period $ 377 $ 321 The Company provides warranties on certain product sales for periods ranging from 12 to 36 months, and allowances for estimated warranty costs are recorded during the period of sale. The determination of such allowances requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The Company currently establishes warranty reserves based on historical warranty costs for each product line combined with liability estimates based on the prior 12 months’ sales activities. If actual return rates and/or repair and replacement costs differ significantly from the Company’s estimates, adjustments to recognize additional cost of sales may be required in future periods. Historically the warranty accrual and the expense amounts have been immaterial. |
Significant Accounting Polici_2
Significant Accounting Policies and Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications — Certain reclassifications have been made to the fiscal year 2020 consolidated financial statements to conform to the fiscal year 2021 presentation. The reclassifications had no impact on net income (loss), total assets, total liabilities, or stockholders’ equity. |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The Company believes judgment is involved in determining revenue recognition; impairment of goodwill and intangible assets; the recoverability of long-lived assets; stock-based compensation expense; and income tax uncertainties. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ materially from those estimates and assumptions. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash — The Company considers all highly liquid investments with an original maturity of 90 days or less or investments with a remaining maturity of 90 days or less at the date of purchase to be cash equivalents and investments with original maturities greater than 90 days but less than one year to be short-term investments. The Company classifies debt securities with readily determinable market values as available-for-sale. Restricted cash of $1.3 million pertains primarily to a stand by letter of credit with a manufacturer for equipment purchased for the Company’s manufacturing facility in Singapore. |
Concentration of Credit Risk | Concentration of Credit Risk — Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with what it considers high credit quality financial institutions. No customer accounted for 10% or more of net revenue for the years ended December 31, 2021 or 2020, respectively. No customer accounted for 10% or more of the Company’s accounts receivable balance as of December 31, 2021 or 2020. The Company does not require collateral or other security to support accounts receivable. To reduce risk, the Company’s management performs ongoing credit evaluations of its customers’ financial condition. The Company maintains allowances for potential credit losses in its consolidated financial statements. The Company relies upon a limited number of suppliers for some key components of their products which exposes them to various risks. No supplier accounted for 10% or more of the Company’s accounts payable balance as of December 31, 2021 or 2020. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts — The allowance for doubtful accounts is based on the Company’s assessment of the collectibility of customer accounts. The Company regularly reviews its receivables that remain outstanding past their applicable payment terms and establishes an allowance and potential write-offs by considering factors such as historical experience, credit quality, age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. Although the Company expects to collect net amounts due as stated on the consolidated balance sheets, actual collections may differ from these estimated amounts. |
Inventories | Inventories — Inventories are stated at the lower of cost (using average cost or standard cost, as applicable) or net realizable value (market). Inventory is written down for excess inventory, technical obsolescence and the inability to sell based primarily on historical sales and expectations for future use. The Company operates in an industry characterized by technological change. The planning of production and inventory levels is based on internal forecasts of customer demand, which are highly unpredictable and can fluctuate substantially. Should the demand for the Company’s products prove to be significantly less than anticipated, the ultimate realizable value of the Company’s inventory could be substantially less than amounts in the consolidated balance sheets. Once inventory has been written down below cost, it is not subsequently written up. |
Property and Equipment | Property and Equipment — Property and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed using the straight-line method over estimated useful lives of three to ten years for furniture, fixture and office equipment, five to seven years for machinery, five years for automobiles and three years for computer software. Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life. |
Intangible Assets | Intangible Assets — Amortizable intangible assets include trademarks, developed technology and customer relationships acquired as part of business combinations. Intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives ranging from four to twelve years and are reviewed for impairment. |
Goodwill | Goodwill — Goodwill represents the excess of the aggregate of the fair value of consideration transferred in a business combination, over the fair value of assets acquired, net of liabilities assumed. In accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other (“ASC 350”), goodwill is not amortized but is tested for impairment on an annual basis, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing the qualitative assessment, the Company identifies and considers the significance of relevant key factors, events, and circumstances that affect the fair value of its reporting units. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, then it performs the quantitative impairment test which compares the estimated fair value of the reporting unit to its carrying value, including goodwill. If the carrying amount of the reporting unit is in excess of its fair value, an impairment loss would be recorded in the consolidated statement of comprehensive income (loss) |
Long-Lived Assets | Long-Lived Assets — The Company reviews long‑lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the total estimated future undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Impairment, if any, is assessed using discounted cash flows or other appropriate measures of fair value. There were no impairment losses recorded during the years ended December 31, 2021 or 2020. |
Leases | Leases — The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities, and long-term operating lease liabilities on the Company’s consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of future payments. The operating lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which are accounted for as a single lease component. |
Freight Costs | Freight Costs — The Company reflects the cost of shipping its products to customers as a cost of revenue. Reimbursements received from customers for freight costs are recognized as product revenue. |
Research and Development | Research and Development — Costs to research, design, and develop the Company’s products are expensed as incurred and consist primarily of employee compensation, external contractor costs, and fees for the development of prototype products. Software development costs are capitalized beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. Generally, the Company’s products are released soon after technological feasibility has been established. Costs incurred subsequent to achieving technological feasibility have not been significant and generally have been expensed as incurred. As of December 31, 2021 and 2020, the net amount of capitalized software development costs were $303,000 and $280,000, respectively, and are included in other current and long term assets in the accompanying consolidated balance sheets. The Company capitalizes certain costs for its internal-use software incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight line basis over its estimated useful life, generally three years. The estimated useful life is determined based on management’s judgment on how long the core technology and functionality serves internal needs and the customer base. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company recorded amortization expense related to software development costs of $55,000 and $78,000 for the years ended December 31, 2021 and 2020, respectively. The Company capitalized software development costs of $84,000 in 2021. No software development costs were capitalized in 2020. |
Advertising Costs | Advertising Costs — The Company expenses advertising costs as incurred. Advertising costs were not significant for the years ended December 31, 2021 and 2020. |
Stock-based Compensation | Stock-based Compensation — The Company accounts for all stock-based payment awards, including employee stock options, restricted stock awards, and performance share units in accordance with ASC 718, (“ASC 718”). Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award. Compensation expense for all stock-based payment awards is recognized using the straight-line single-option approach. Employee stock options awards are valued under the single-option approach and amortized on a straight-line basis, net of estimated forfeitures. The value of the portion of the stock option award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s consolidated statements of comprehensive income (loss). See Note 11, , for further information regarding the Company’s stock-based compensation assumptions and expenses. The Company has elected to use the Black Scholes pricing model to estimate the fair value of its stock options, which incorporates various subjective assumptions including volatility, risk-free interest rate, expected life, and dividend yield to calculate the fair value of stock option awards. Since the Company has been publicly traded for many years, it utilizes its own historical volatility in valuing its stock option grants. The expected life of an award is based on historical experience, the terms and conditions of the stock awards granted to employees, as well as the potential effect from options that have not been exercised at the time. The assumptions used in calculating the fair value of stock-based payment awards represent management’s estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and the Company uses different assumptions, its stock-based compensation expense could be materially different in the future. In addition, the Company estimates the expected forfeiture rate and recognizes expense only for those awards which are ultimately expected-to-vest shares. If the actual forfeiture rate is materially different from the Company’s estimate, the recorded stock-based compensation expense could be different. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Income Taxes | Income Taxes — The Company accounts for income taxes in accordance with ASC 740, (“ASC 740”), which requires the asset and liability approach for financial accounting and reporting of income taxes. Deferred income taxes reflect the recognition of future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The carrying value of net deferred tax assets reflects that the Company has been unable to generate sufficient taxable income in certain tax jurisdictions. A valuation allowance is provided to reduce the deferred tax asset to an amount that is more likely than not to be realized. The deferred tax assets are still available for the Company to use in the future to offset taxable income, which would result in the recognition of a tax benefit and a reduction in the Company’s effective tax rate. Actual operating results and the underlying amount and category of income in future years could render the Company’s current assumptions, judgments and estimates of the realizability of deferred tax assets inaccurate, which could have a material impact on its financial position or results of operations. The Company accounts for uncertain tax positions in accordance with ASC 740, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. It prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Such changes in recognition or measurement might result in the recognition of a tax benefit or an additional charge to the tax provision in the period. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statement of comprehensive income (loss). Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. See Note 9, Income Taxes |
Net Loss Per Share | Net Income (Loss) Per Share — Basic net income (loss) per share is based upon the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is based upon the weighted average number of common shares and dilutive-potential common share equivalents outstanding during the period (using the treasury stock or if-converted method), if applicable. Dilutive-potential common share equivalents are excluded from the computation of net income (loss) per share in loss periods, as their effect would be antidilutive. See Note 12, , for further information regarding the Company’s computation of both basic and diluted net income (loss) per common share. |
Comprehensive Loss | Comprehensive Income (Loss) — Comprehensive income (loss) for the years ended December 31, 2021 and 2020 has been disclosed within the consolidated statements of comprehensive income (loss). Other accumulated comprehensive income (loss) includes net foreign currency translation adjustments, which are excluded from consolidated net income (loss). |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions — The functional currencies of the Company’s foreign subsidiaries are the local currencies, except for the Singapore subsidiary, which uses the U.S. dollar as its functional currency. For those subsidiaries whose functional currency is the local currency, the Company translates assets and liabilities to U.S. dollars using period-end exchange rates and translates revenues and expenses using average exchange rates during the period. Exchange gains and losses arising from translation of foreign entity financial statements are included as a component of other comprehensive income (loss) and gains and losses from transactions denominated in currencies other than the functional currency of the Company are included in the Company’s consolidated statements of comprehensive income (loss). The Company recognized net currency losses of $0.1 million in 2021, and $0.1 million in 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that the Company adopts as of the specified effective date. Unless otherwise discussed, the Company does not believe that the impact of recently issued standards that are not yet effective will have a material impact on its financial position or results of operations upon adoption. In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments Codification Improvement to Topic 326, Financial Instruments – Credit Losses Codification Improvements to Topic 326, Financial Instruments – Credit Losses Derivatives and Hedging , Financial Instruments Financial Instruments Credit Losses (Topic 326) Targeted Transition Relief Financial Instruments-Credit Losses Derivatives and Hedging Leases Codification Improvements to Topic 326, Financial Instruments-Credit Losses. Additionally, ASU No. 2019-10 defers the effective date for the adoption of the new standard on credit losses for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which will be fiscal 2023 for the Company if it continues to be classified as a SRC. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The subsequent amendments will have the same effective date and transition requirements as ASU No. 2016-13. Early adoption is permitted. Topic 326 requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company is currently evaluating the impact of Topic 326, the Company does not expect the adoption of the ASU to have a material impact on its consolidated financial statements. In December 2019, FASB issued ASU 2019-12, Income Taxes (740), Simplifying the Accounting for Income Taxes The Company adopted this standard on January 1, 2021, and it did not have a material impact on the Company’s consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Performance Obligation | Performance Obligation When Performance Obligation is Typically Satisfied When Payment is Typically Due How Standalone Selling Price is Typically Estimated Hardware products When customer obtains control of the product (point-in-time) Within 30-60 days of shipment Observable in transactions without multiple performance obligations Software licenses When license is delivered to customer or made available for download, and the applicable license period has begun (point-in-time) Within 30-60 days of the beginning of license period Established pricing practices for software licenses bundled with software maintenance, which are separately observable in renewal transactions Subscriptions Ratably over the course of the subscription term (over time) In advance of subscription term Contractually stated or list price Professional services As services are performed and/or when contract is fulfilled (point-in-time) Within 30-60 days of delivery Observable in transactions without multiple performance obligations Software maintenance and support services Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions Extended hardware warranties Ratably over the course of the support contract (over time) Within 30-60 days of the beginning of the contract period Observable in renewal transactions |
Total Net Sales Based on Disaggregation Criteria | Total net sales based on the disaggregation criteria described above are as follows (in thousands): Year Ended December 31, 2021 2020 Point-in- Point-in- Time Over Time Total Time Over Time Total Americas $ 66,162 $ 3,234 $ 69,396 $ 54,491 $ 3,811 $ 58,302 Europe and the Middle East 12,507 369 12,876 9,124 373 9,497 Asia-Pacific 21,497 — 21,497 19,121 — 19,121 Total $ 100,166 $ 3,603 $ 103,769 $ 82,736 $ 4,184 $ 86,920 |
Changes in Deferred Revenue | Changes in deferred revenue during the years ended December 31, 2021 and 2020 were as follows (in thousands): Year Ended December 31, 2021 2020 Deferred revenue, beginning of period $ 2,366 $ 2,833 Deferral of revenue billed in current period, net of recognition 1,905 1,591 Recognition of revenue deferred in prior periods (1,838 ) (2,058 ) Deferred revenue, end of period $ 2,433 $ 2,366 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Activity in Goodwill | The following table summarizes the activity of goodwill (in thousands): Identity Premises Total Balance as of December 31, 2019 $ 3,554 $ 6,684 $ 10,238 Currency translation adjustment — 28 28 Balance as of December 31, 2020 $ 3,554 $ 6,712 $ 10,266 Balance as of December 31, 2020 $ 3,554 $ 6,712 $ 10,266 Currency translation adjustment — 2 2 Balance as of December 31, 2021 $ 3,554 $ 6,714 $ 10,268 |
Summary of Gross Carrying Amount and Accumulated Amortization for Intangible Assets Resulting from Acquisitions | The following table summarizes the gross carrying amount and accumulated amortization for intangible assets resulting from acquisitions (in thousands): Developed Customer Trademarks Technology Relationships Total Amortization period (in years) 5 10 - 12 4 - 12 Gross carrying amount as of December 31, 2021 $ 764 $ 9,127 $ 15,774 $ 25,665 Accumulated amortization (536 ) (6,219 ) (12,465 ) (19,220 ) Intangible assets, net as of December 31, 2021 $ 228 $ 2,908 $ 3,309 $ 6,445 Gross carrying amount as of December 31, 2020 $ 765 $ 9,123 $ 15,771 $ 25,659 Accumulated amortization (382 ) (5,773 ) (11,941 ) (18,096 ) Intangible assets, net as of December 31, 2020 $ 383 $ 3,350 $ 3,830 $ 7,563 |
Amortization Expense Included in Consolidated Statements of Comprehensive Income (Loss) | The following table summarizes the amortization expense included in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Cost of revenue $ 453 $ 899 Selling and marketing 671 1,666 Total $ 1,124 $ 2,565 |
Estimated Future Amortization Expense of Purchased Intangible Assets with Definite Lives | The estimated annual future amortization expense for purchased intangible assets with definite lives as of December 31, 2021 was as follows (in thousands): 2022 $ 1,120 2023 1,044 2024 967 2025 967 2026 967 Thereafter 1,380 Total $ 6,445 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statement Of Financial Position [Abstract] | |
Inventories | The Company’s inventories are stated at the lower of cost or market value. Inventories consist of (in thousands): December 31, 2021 2020 Raw materials $ 7,182 $ 6,518 Work-in-progress — 34 Finished goods 12,742 13,744 Total $ 19,924 $ 20,296 |
Property and Equipment, Net | Property and equipment, net consists of (in thousands): December 31, 2021 2020 Building and leasehold improvements $ 1,304 $ 1,498 Furniture, fixtures and office equipment 1,379 1,295 Plant and machinery 13,244 11,429 Purchased software 2,281 2,191 Total 18,208 16,413 Accumulated depreciation (14,142 ) (13,586 ) Property and equipment, net $ 4,066 $ 2,827 |
Other Accrued Expenses and Liabilities | Other accrued expenses and liabilities consist of (in thousands): December 31, 2021 2020 Rental payments due to landlord $ 922 $ — Accrued professional fees 576 586 Accrued restructuring 294 801 Customer deposits 149 72 Accrued warranties 377 321 Other accrued expenses 1,456 1,460 Total $ 3,774 $ 3,240 |
Financial Liabilities (Tables)
Financial Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Financial Liabilities | Financial liabilities consist of (in thousands): December 31, 2021 2020 Revolving loan facility $ — $ 14,428 April 21 Funds promissory notes — 2,800 Paycheck Protection Program note — 2,915 Total — 20,143 Less: Current maturities of financial liabilities — (20,084 ) Less: Unamortized debt issuance costs — (59 ) Long-term financial liabilities $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) before Income Tax Provision for Domestic and Non-U.S. Operations | Income (loss) before income tax provision for domestic and non-U.S. operations is as follows (in thousands): December 31, 2021 2020 Income (loss) from operations before before income tax provision: U.S. $ (1,189 ) $ (6,321 ) Foreign 2,837 1,289 Income (loss) from operations before income tax provision $ 1,648 $ (5,032 ) |
Income Tax Provision | The income tax provision consisted of the following (in thousands): December 31, 2021 2020 Deferred: Federal $ — $ — State — — Foreign — — $ — $ — Current: Federal $ — $ — State (24 ) (15 ) Foreign 52 88 Total current 28 73 Total income tax provision $ 28 $ 73 |
Significant Items Making up Deferred Tax Assets and Liabilities | Significant items making up deferred tax assets and liabilities are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Allowances not currently deductible for tax purposes $ 978 $ 451 Net operating loss carryforwards 44,068 45,196 Operating lease liabilities 312 513 General carryforwards 16,433 16,242 Stock-based compensation 1,487 1,291 Accrued and other 1,961 1,990 65,239 65,683 Less valuation allowance (62,441 ) (62,699 ) 2,798 2,984 Deferred tax liabilities: Depreciation and amortization (925 ) (1,032 ) Operating lease right-of-use assets (10 ) (169 ) State income taxes (1,863 ) (1,783 ) (2,798 ) (2,984 ) Net deferred tax asset $ — $ — |
Income Tax Provision Reconciled to Amount Computed by Applying Statutory Federal Tax Rate to Income (Loss) Before Income Tax Provision | The income tax provision reconciled to the amount computed by applying the statutory federal tax rate to the income (loss) before income tax provision is as follows (in thousands): December 31, 2021 2020 Income tax provision at statutory federal tax rate of 21% $ 345 $ (1,057 ) State taxes, net of federal benefit (19 ) (12 ) Foreign taxes provisions provided for at rates other than U.S statutory rate (494 ) (202 ) Section 951(A) inclusion 523 — Stock options (443 ) — Change in valuation allowance 700 1,432 Permanent differences 42 (76 ) PPP loan forgiveness (619 ) — Other (7 ) (12 ) Total provision for income taxes $ 28 $ 73 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits with an impact on the Company’s consolidated balance sheets or statements of comprehensive income (loss) is as follows (in thousands): December 31, 2021 2020 Balance at January 1 $ 2,307 $ 2,687 Additions based on tax positions related to the current year 1 1 Additions for tax positions of prior years — — Reductions in prior year tax positions (32 ) (381 ) Balance at December 31 $ 2,276 $ 2,307 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Summary of Series B Preferred Stock and Accretion of Dividends | The following table summarizes Series B convertible preferred stock and the accretion of dividend activity for the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Series B Convertible Preferred Stock : Balance at beginning of period $ 22,969 $ 21,875 Cumulative dividends on Series B convertible preferred stock 1,148 1,094 Balance at end of period $ 24,117 $ 22,969 Number of Common Shares Issuable Upon Conversion : Number of shares at beginning of period 5,742 5,469 Cumulative dividends on Series B convertible preferred stock 287 273 Number of shares at end of period 6,029 5,742 |
Summary of Outstanding Warrants Issued by Company | Below is the summary of outstanding warrants issued by the Company as of December 31, 2021: Warrant Type Number of Shares Issuable Upon Exercise Weighted Average Exercise Price Issue Date Expiration Date April 21 Funds Warrants 275,000 3.50 May 5, 2020 May 5, 2023 |
Summary of Common Stock Reserved for Future Issuance | Common Stock Reserved for Future Issuance Common stock reserved for future issuance as of December 31, 2021 was as follows: Exercise of outstanding stock options, vesting of restricted stock units ("RSU"), vesting of performance stock units ("PSU"), and issuance of RSUs vested but not released 1,471,899 Employee Stock Purchase Plan 293,888 Shares of common stock available for grant under the 2011 Plan 947,004 Warrants to purchase common stock 275,000 Shares of common stock issuable upon conversion of Series B convertible preferred stock 7,541,449 Total 10,529,240 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Option Activity | The following is a summary of stock option activity for the year ended December 31, 2021: Number Outstanding Average Exercise Price per Share Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Balance as of December 31, 2020 550,769 $ 5.56 4.88 $ 1,875,719 Granted — — — Cancelled or Expired (6,142 ) 21.46 — Exercised (29,934 ) 10.00 — Balance as of December 31, 2021 514,693 $ 5.11 4.11 $ 11,850,930 Vested or expected to vest as of December 31, 2021 514,693 $ 5.11 4.11 $ 11,850,930 Exercisable as of December 31, 2021 514,693 $ 5.11 4.11 $ 11,850,930 |
Summary Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding as of December 31, 2021: Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $4.36 - $7.20 452,510 4.37 $ 4.41 452,510 $ 4.41 $7.50 - $11.25 61,317 2.23 10.19 61,317 10.19 $11.30 - $16.95 500 2.25 11.30 500 11.30 $19.70 - $29.55 366 0.36 19.70 366 19.70 $4.36 - $29.55 514,693 4.11 $ 5.11 514,693 $ 5.11 |
Summary of Stock Unit Activity | The following is a summary of RSU activity for the year ended December 31, 2021: Number Outstanding Weighted Average Fair Value Unvested as of December 31, 2020 682,563 $ 4.34 Granted 288,368 14.64 Vested (395,242 ) 5.76 Forfeited (89,960 ) 4.92 Unvested as of December 31, 2021 485,729 $ 9.19 RSUs vested but not released 296,477 $ 5.31 |
Stock-Based Compensation Expense Related to Stock Options, RSUs and PSUs | The following table summarizes stock-based compensation expense related to stock options, RSUs, and PSUs included in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Cost of revenue $ 183 $ 160 Research and development 486 685 Selling and marketing 545 480 General and administrative 1,392 1,702 Total $ 2,606 $ 3,027 |
Performance Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Stock Unit Activity | The following is a summary of PSU activity for the year ended December 31, 2021: Number Outstanding Unvested as of December 31, 2020 200,000 Granted — Vested (23,500 ) Forfeited (1,500 ) Unvested as of December 31, 2021 175,000 |
Net Income (Loss) per Common _2
Net Income (Loss) per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Calculations for Basic and Diluted Net Income (Loss) Per Common Share | The calculations for basic and diluted net income (loss) per common share for the years ended December 31, 2021 and 2020 are as follows: Year Ended December 31, 2021 2020 Basic net income (loss) per common share: Numerator: Net income (loss) $ 1,620 $ (5,105 ) Less: accretion of Series B convertible preferred stock dividends (1,148 ) (1,094 ) Net income (loss) available to common stockholders $ 472 $ (6,199 ) Denominator: Weighted average common shares outstanding - basic 21,340 17,978 Net income (loss) per common share - basic $ 0.02 $ (0.34 ) Diluted net income (loss) per common share: Numerator: Net income (loss) available to common stockholders $ 472 $ (6,199 ) Plus: accretion of Series B convertible preferred stock dividends, if dilutive — — Net income (loss) available to common stockholders $ 472 $ (6,199 ) Denominator: Weighted average common shares outstanding - basic 21,340 17,978 Dilutive securities: Stock options, RSUs, and warrants 927 — Weighted average common shares outstanding - diluted 22,267 17,978 Net income (loss) per common share - diluted $ 0.02 $ (0.34 ) |
Common Stock Equivalents Excluded From Diluted Net Income (Loss) Per Share | The following common stock equivalents have been excluded from diluted net income (loss) per share for the fiscal years ended December 31, 2021 and 2020 because their inclusion would have been anti-dilutive (in thousands): December 31, 2021 2020 Shares of common stock subject to outstanding RSUs — 683 Shares of common stock subject to outstanding stock options — 551 Shares of common stock subject to outstanding warrants — 315 Shares of common stock issuable upon conversion of Series B convertible preferred stock 6,029 5,742 Total 6,029 7,291 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Information Regarding Net Revenue and Gross Profit by Segment | Net revenue and gross profit information by segment for the years ended December 31, 2021 and 2020 are as follows (in thousands): Year Ended December 31, 2021 2020 Identity: Net revenue $ 64,725 $ 52,742 Gross profit 15,670 14,781 Gross profit margin 24 % 28 % Premises: Net revenue 39,044 34,178 Gross profit 21,397 18,900 Gross profit margin 55 % 55 % Total: Net revenue 103,769 86,920 Gross profit 37,067 33,681 Gross profit margin 36 % 39 % Operating expenses: Research and development 8,673 9,781 Selling and marketing 17,033 17,270 General and administrative 11,891 8,623 Decrease in fair value of earnout liability — (261 ) Restructuring and severance 817 1,716 Total operating expenses: 38,414 37,129 Loss from operations (1,347 ) (3,448 ) Non-operating income (expense): Interest expense, net (483 ) (1,462 ) Gain on forgiveness of Paycheck Protection Program note 2,946 — Gain on investment 611 — Foreign currency losses, net (79 ) (122 ) Income (loss) before income tax provision $ 1,648 $ (5,032 ) |
Information Regarding Net Revenue by Geographic Region | Geographic Information Geographic net revenue is based on the customer’s ship-to location. Information regarding net revenue by geographic region for the years ended December 31, 2021 and 2020 is as follows (in thousands): Year Ended December 31, 2021 2020 Americas $ 69,396 $ 58,302 Europe and the Middle East 12,876 9,497 Asia-Pacific 21,497 19,121 Total $ 103,769 $ 86,920 As percentage of net revenue: Americas 67 % 67 % Europe and the Middle East 12 % 11 % Asia-Pacific 21 % 22 % Total 100 % 100 % |
Long-Lived Assets by Geographic Location | Long-lived assets by geographic location as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 2020 Property and equipment, net: Americas $ 545 $ 606 Europe and the Middle East 334 73 Asia-Pacific 3,187 2,148 Total property and equipment, net $ 4,066 $ 2,827 Operating lease ROU assets: Americas $ 1,344 $ 2,100 Europe and the Middle East 135 224 Asia-Pacific 609 1,081 Total property and equipment, net $ 2,088 $ 3,405 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Reconciles Undiscounted Cash flows of Operating Lease Liabilities Recorded on the Consolidated Balance Sheets | The table below reconciles the undiscounted cash flows for the first five years and the total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheets as of December 31, 2021 (in thousands): December 31, 2021 2022 $ 1,372 2023 494 2024 250 2025 231 2026 42 Total minimum lease payments 2,389 Less: amount of lease payments representing interest (182 ) Present value of future minimum lease payments 2,207 Less: current liabilities under operating leases (1,269 ) Long-term operating lease liabilities $ 938 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Principal Contractual Obligations, Excluding Operating Leases | The following table summarizes the Company’s principal contractual commitments, excluding operating leases, as of December 31, 2021 (in thousands): Purchase Commitments Other Contractual Commitments Total 2022 $ 36,838 $ 173 $ 37,011 2023 1,479 — 1,479 Total $ 38,317 $ 173 $ 38,490 |
Summary of Warranty Accrual Activity | The following table summarizes the Company’s warranty accrual activity during the years ended December 31, 2021 and 2020 (in thousands): Year Ended December 31, 2021 2020 Balance at beginning of period $ 321 $ 407 Accruals for warranties charged to expense 59 55 Cost of warranty claims (3 ) (141 ) Balance at end of period $ 377 $ 321 |
Significant Accounting Polici_3
Significant Accounting Policies and Recent Accounting Pronouncements - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2021USD ($)CustomerSupplier | Dec. 31, 2020USD ($)CustomerSupplier | |
Accounting Policies [Line Items] | ||
Restricted cash | $ 1,254,000 | |
Concentration Risk, Customer | No customer accounted for 10% or more of net revenue for the years ended December 31, 2021 or 2020, respectively. No customer accounted for 10% or more of the Company’s accounts receivable balance as of December 31, 2021 or 2020. | |
Number of major customer represented stated percentage of total net revenue | Customer | 0 | 0 |
Number of customers who accounted for 10% or more accounts receivable balance | Customer | 0 | 0 |
Concentration Risk, Supplier | No supplier accounted for 10% or more of the Company’s accounts payable balance as of December 31, 2021 or 2020 | |
Number of supplier who accounted for 10% or more accounts payable balance | Supplier | 0 | 0 |
Impairment of goodwill | $ 0 | $ 0 |
Impairment losses on long lived assets | 0 | 0 |
Capitalized software development costs, net | 303,000 | 280,000 |
Amortization expense | 1,124,000 | 2,565,000 |
Software development costs capitalized in period | 84,000 | 0 |
Foreign currency translation and transactions gains (losses) | $ (100,000) | 100,000 |
Minimum | ||
Accounting Policies [Line Items] | ||
Estimated useful lives of intangible asset | 4 years | |
Maximum | ||
Accounting Policies [Line Items] | ||
Estimated useful lives of intangible asset | 12 years | |
Furniture, Fixtures and Office Equipment | Minimum | ||
Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Furniture, Fixtures and Office Equipment | Maximum | ||
Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 10 years | |
Plant and Machinery | Minimum | ||
Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 5 years | |
Plant and Machinery | Maximum | ||
Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 7 years | |
Automobiles | ||
Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 5 years | |
Purchased Software | ||
Accounting Policies [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Research and Development | ||
Accounting Policies [Line Items] | ||
Estimated useful lives of intangible asset | 3 years | |
Amortization expense | $ 55,000 | $ 78,000 |
Stand by Letter of Credit | ||
Accounting Policies [Line Items] | ||
Restricted cash | $ 1,300,000 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revenue From Contract With Customer [Line Items] | |
Remaining performance obligations | $ 0.6 |
Revenue, practical expedient, unsatisfied performance obligations non disclosure | true |
Revenue, practical expedient, time value of money for contracts consideration | false |
Minimum | |
Revenue From Contract With Customer [Line Items] | |
Payment period from contract inception | 30 days |
Maximum | |
Revenue From Contract With Customer [Line Items] | |
Payment period from contract inception | 60 days |
Software Licenses | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 year |
Software Licenses | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 3 years |
Subscriptions | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 month |
Subscriptions | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 6 years |
Software Maintenance and Support Services | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 year |
Software Maintenance and Support Services | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 3 years |
Extended Hardware Warranties | Minimum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 1 year |
Extended Hardware Warranties | Maximum | |
Revenue From Contract With Customer [Line Items] | |
Contract period | 2 years |
Schedule of Performance Obligat
Schedule of Performance Obligation (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Hardware Products | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Hardware products |
When Performance Obligation is Typically Satisfied | When customer obtains control of the product (point-in-time) |
When Payment is Typically Due | Within 30-60 days of shipment |
How Standalone Selling Price is Typically Estimated | Observable in transactions without multiple performance obligations |
Software Licenses | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Software licenses |
When Performance Obligation is Typically Satisfied | When license is delivered to customer or made available for download, and the applicable license period has begun (point-in-time) |
When Payment is Typically Due | Within 30-60 days of the beginning of license period |
How Standalone Selling Price is Typically Estimated | Established pricing practices for software licenses bundled with software maintenance, which are separately observable in renewal transactions |
Subscriptions | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Subscriptions |
When Performance Obligation is Typically Satisfied | Ratably over the course of the subscription term (over time) |
When Payment is Typically Due | In advance of subscription term |
How Standalone Selling Price is Typically Estimated | Contractually stated or list price |
Professional Services | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Professional services |
When Performance Obligation is Typically Satisfied | As services are performed and/or when contract is fulfilled (point-in-time) |
When Payment is Typically Due | Within 30-60 days of delivery |
How Standalone Selling Price is Typically Estimated | Observable in transactions without multiple performance obligations |
Software Maintenance and Support Services | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Software maintenance and support services |
When Performance Obligation is Typically Satisfied | Ratably over the course of the support contract (over time) |
When Payment is Typically Due | Within 30-60 days of the beginning of the contract period |
How Standalone Selling Price is Typically Estimated | Observable in renewal transactions |
Extended Hardware Warranties | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Performance Obligation | Extended hardware warranties |
When Performance Obligation is Typically Satisfied | Ratably over the course of the support contract (over time) |
When Payment is Typically Due | Within 30-60 days of the beginning of the contract period |
How Standalone Selling Price is Typically Estimated | Observable in renewal transactions |
Schedule of Performance Oblig_2
Schedule of Performance Obligation (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Hardware Products | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Hardware Products | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Software Licenses | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Software Licenses | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Professional Services | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Professional Services | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Software Maintenance and Support Services | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Software Maintenance and Support Services | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Extended Hardware Warranties | Minimum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 30 days |
Extended Hardware Warranties | Maximum | |
Revenue Recognition Multiple Deliverable Arrangements [Line Items] | |
Payment period, after shipment | 60 days |
Total Net Sales Based on Disagg
Total Net Sales Based on Disaggregation Criteria (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Net revenue | $ 103,769 | $ 86,920 |
Transferred at Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 100,166 | 82,736 |
Transferred over Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 3,603 | 4,184 |
Americas | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 69,396 | 58,302 |
Americas | Transferred at Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 66,162 | 54,491 |
Americas | Transferred over Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 3,234 | 3,811 |
Europe and the Middle East | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 12,876 | 9,497 |
Europe and the Middle East | Transferred at Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 12,507 | 9,124 |
Europe and the Middle East | Transferred over Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 369 | 373 |
Asia-Pacific | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | 21,497 | 19,121 |
Asia-Pacific | Transferred at Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenue | $ 21,497 | $ 19,121 |
Changes in Deferred Revenue (De
Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | ||
Deferred revenue | $ 2,366 | $ 2,833 |
Deferral of revenue billed in current period, net of recognition | 1,905 | 1,591 |
Recognition of revenue deferred in prior periods | (1,838) | (2,058) |
Deferred revenue | $ 2,433 | $ 2,366 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligation - Additional Information (Detail) | Dec. 31, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue From Contract With Customer [Line Items] | |
Unsatisfied performance obligations, expected to recognize | 57.00% |
Unsatisfied performance obligations, expected to recognize, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue From Contract With Customer [Line Items] | |
Unsatisfied performance obligations, expected to recognize | 24.00% |
Unsatisfied performance obligations, expected to recognize, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue From Contract With Customer [Line Items] | |
Unsatisfied performance obligations, expected to recognize | 19.00% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Proceeds from investment | $ 611,000 | |
Carrying value of investment | 0 | |
Fair Value Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability measured and recognized at fair value | 0 | $ 0 |
Fair Value Measurements, Non-recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liability measured and recognized at fair value | 0 | 0 |
Fair Value Measurements, Non-recurring | Fair Value, Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Privately-held investments measured at fair value | $ 348,000 | $ 348,000 |
Summary of Activity in Goodwill
Summary of Activity in Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Beginning Balance | $ 10,266 | $ 10,238 |
Currency translation adjustment | 2 | 28 |
Ending Balance | 10,268 | 10,266 |
Identity | ||
Goodwill [Line Items] | ||
Beginning Balance | 3,554 | 3,554 |
Ending Balance | 3,554 | 3,554 |
Premises | ||
Goodwill [Line Items] | ||
Beginning Balance | 6,712 | 6,684 |
Currency translation adjustment | 2 | 28 |
Ending Balance | $ 6,714 | $ 6,712 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill | $ 0 | $ 0 |
Impairment of intangible assets | $ 0 | $ 0 |
Summary of Gross Carrying Amoun
Summary of Gross Carrying Amount and Accumulated Amortization for Intangible Assets Resulting from Acquisitions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 25,665 | $ 25,659 |
Accumulated amortization | (19,220) | (18,096) |
Intangible assets, net | $ 6,445 | 7,563 |
Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 4 years | |
Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 12 years | |
Trademarks | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 5 years | |
Gross carrying amount | $ 764 | 765 |
Accumulated amortization | (536) | (382) |
Intangible assets, net | 228 | 383 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 9,127 | 9,123 |
Accumulated amortization | (6,219) | (5,773) |
Intangible assets, net | $ 2,908 | 3,350 |
Developed Technology | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 10 years | |
Developed Technology | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 12 years | |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 15,774 | 15,771 |
Accumulated amortization | (12,465) | (11,941) |
Intangible assets, net | $ 3,309 | $ 3,830 |
Customer Relationships | Minimum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 4 years | |
Customer Relationships | Maximum | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization period (in years) | 12 years |
Amortization Expense Included i
Amortization Expense Included in Consolidated Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 1,124 | $ 2,565 |
Cost of revenue | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 453 | 899 |
Selling and Marketing Expense | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 671 | $ 1,666 |
Estimated Future Amortization E
Estimated Future Amortization Expense of Purchased Intangible Assets with Definite Lives (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 1,120 | |
2023 | 1,044 | |
2024 | 967 | |
2025 | 967 | |
2026 | 967 | |
Thereafter | 1,380 | |
Intangible assets, net | $ 6,445 | $ 7,563 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,182 | $ 6,518 |
Work-in-progress | 34 | |
Finished goods | 12,742 | 13,744 |
Total | $ 19,924 | $ 20,296 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 18,208 | $ 16,413 |
Accumulated depreciation | (14,142) | (13,586) |
Property and equipment, net | 4,066 | 2,827 |
Building and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,304 | 1,498 |
Furniture, Fixtures and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,379 | 1,295 |
Plant and Machinery | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 13,244 | 11,429 |
Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,281 | $ 2,191 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 0.8 | $ 0.7 |
Other Accrued Expenses and Liab
Other Accrued Expenses and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities And Other Liabilities Current [Abstract] | ||
Rental payments due to landlord | $ 922 | |
Accrued professional fees | 576 | $ 586 |
Accrued restructuring | 294 | 801 |
Customer deposits | 149 | 72 |
Accrued warranties | 377 | 321 |
Other accrued expenses | 1,456 | 1,460 |
Total | $ 3,774 | $ 3,240 |
Contractual Payment Obligation
Contractual Payment Obligation - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Interest accreted on payment obligation | $ 43,000 | $ 139,000 |
Settlement Agreement | ||
Related Party Transaction [Line Items] | ||
Amended installment payment, contractual payment period | Oct. 31, 2021 |
Summary of Financial Liabilitie
Summary of Financial Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 20,143 | |
Less: Current maturities of financial liabilities | (20,084) | |
Less: Unamortized debt issuance costs | $ 0 | (59) |
April 21 Funds Promissory Notes | ||
Debt Instrument [Line Items] | ||
Total | 2,800 | |
Paycheck Protection Program Note | ||
Debt Instrument [Line Items] | ||
Total | 2,915 | |
Revolving Loan Facility | ||
Debt Instrument [Line Items] | ||
Total | $ 14,428 |
Financial Liabilities - Additio
Financial Liabilities - Additional Information (Detail) - USD ($) | Apr. 13, 2021 | Feb. 08, 2021 | May 05, 2020 | Apr. 20, 2020 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | May 07, 2021 |
Debt Instrument [Line Items] | |||||||||
Gain on forgiveness of debt | $ 2,946,000 | ||||||||
April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants outstanding term | 3 years | ||||||||
Estimated Volatility | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 63.2 | ||||||||
Risk Free Interest Rate | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 0.24 | ||||||||
Dividend Yield | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrant, measurement input | 0 | ||||||||
Expected Life | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Warrants outstanding term | 3 years | ||||||||
April 21 Funds Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Promissory notes principal amount | $ 4,000,000 | ||||||||
Interest rate | 8.00% | ||||||||
Debt instrument, frequency of periodic payment | quarterly | ||||||||
Principal amount, repaid | $ 2,800,000 | ||||||||
April 21 Funds Promissory Notes | April 21 Funds Warrants | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of warrants | $ 290,000 | ||||||||
Paycheck Protection Program Promissory Note | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.00% | ||||||||
Proceeds from lines of credit | $ 2,900,000 | ||||||||
Notes payable, description | The PPP Note was payable two years from the date of the PPP Note, and there was no prepayment penalty. | ||||||||
Number of years note payable | 2 years | ||||||||
Principal and accrued interest amount outstanding | $ 2,900,000 | ||||||||
Gain on forgiveness of debt | $ 2,900,000 | ||||||||
Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan conversion fixed charge coverage ratio | 1.35 | ||||||||
Loan and Security Agreements | East West Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility liquidity covenant in cash | $ 5,000,000 | ||||||||
Minimum trailing six month EBITDA | $ 1,200,000 | $ 600,000 | |||||||
Loan and Security Agreements | Revolving Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility early termination fee percentage | 2.00% | ||||||||
Line of credit facility termination fee percentage thereafter | 1.00% | ||||||||
Outstanding borrowing capacity under credit facility | 0 | $ 0 | |||||||
Available borrowing capacity under credit facility | $ 14,500,000 | $ 14,500,000 | |||||||
Loan and Security Agreements | Revolving Loan Facility | Prime Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of interest rate | 0.25% | ||||||||
Loan and Security Agreements | Revolving Loan Facility | East West Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing capacity under credit facility | $ 20,000,000 | ||||||||
Loan facility payable date | Feb. 8, 2023 | ||||||||
Loan and Security Agreements | Non-formula Revolving Credit Facility | East West Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing capacity under credit facility | $ 4,000,000 | ||||||||
Loan facility payable date | Feb. 7, 2022 | ||||||||
Period One | April 21 Funds Promissory Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 12.00% |
Income (Loss) before Income Tax
Income (Loss) before Income Tax Provision for Domestic and Non-U.S. Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. | $ (1,189) | $ (6,321) |
Foreign | 2,837 | 1,289 |
Income (loss) before income tax provision | $ 1,648 | $ (5,032) |
Income Tax Provision (Detail)
Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
State | $ (24) | $ (15) |
Foreign | 52 | 88 |
Total current | 28 | 73 |
Total income tax provision | $ 28 | $ 73 |
Significant Items Making up Def
Significant Items Making up Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Allowances not currently deductible for tax purposes | $ 978 | $ 451 |
Net operating loss carryforwards | 44,068 | 45,196 |
Operating lease liabilities | 312 | 513 |
General carryforwards | 16,433 | 16,242 |
Stock-based compensation | 1,487 | 1,291 |
Accrued and other | 1,961 | 1,990 |
Deferred Tax Assets, Gross, Total | 65,239 | 65,683 |
Less valuation allowance | (62,441) | (62,699) |
Deferred Tax Assets, Net of Valuation Allowance, Total | 2,798 | 2,984 |
Depreciation and amortization | (925) | (1,032) |
Operating lease right-of-use assets | (10) | (169) |
State income taxes | (1,863) | (1,783) |
Deferred Tax Liabilities, Gross, Total | $ (2,798) | $ (2,984) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||
Valuation allowance | $ 62,441 | $ 62,699 |
GILTI income | $ 2,500 | 0 |
Operating loss carryforwards, expiration end year | 2041 | |
Income tax benefit, PPP loan forgiveness | $ 6,200 | |
Liabilities for unrecognized tax benefits | 2,300 | 2,300 |
Amount of unrecognized tax benefits, which, if recognized, would affect the tax rate | 0 | 100 |
Penalties accrued related to unrecognized tax benefits | (3) | (5) |
Interest accrued related to unrecognized tax benefits | (9) | 21 |
Recognized total liability for penalties | 3 | 7 |
Recognized total liability for interest | 5 | $ 14 |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 119,500 | |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | 45,300 | |
Foreign | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards | $ 69,000 |
Income Tax Provision Reconciled
Income Tax Provision Reconciled to Amount Computed by Applying Statutory Federal Tax Rate to Income (Loss) Before Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ||
Income tax provision at statutory federal tax rate of 21% | $ 345 | $ (1,057) |
State taxes, net of federal benefit | (19) | (12) |
Foreign taxes provisions provided for at rates other than U.S statutory rate | (494) | (202) |
Section 951(A) inclusion | 523 | |
Stock options | (443) | |
Change in valuation allowance | 700 | 1,432 |
Permanent differences | 42 | (76) |
PPP loan forgiveness | (619) | |
Other | (7) | (12) |
Total income tax provision | $ 28 | $ 73 |
Income Tax Provision Reconcil_2
Income Tax Provision Reconciled to Amount Computed by Applying Statutory Federal Tax Rate to Income (Loss) Before Income Tax Provision (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal tax rate of income tax provision | 21.00% | 21.00% |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Reconciliation Of Beginning And Ending Amount Of Unrecognized Tax Benefits [Abstract] | ||
Balance at January 1 | $ 2,307 | $ 2,687 |
Additions based on tax positions related to the current year | 1 | 1 |
Reductions in prior year tax positions | (32) | (381) |
Balance at December 31 | $ 2,276 | $ 2,307 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | Apr. 07, 2021USD ($)$ / sharesshares | May 05, 2020USD ($)$ / sharesshares | May 30, 2018USD ($)$ / sharesshares | Dec. 20, 2017USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Feb. 11, 2021shares | Dec. 31, 2020$ / sharesshares | Feb. 08, 2017$ / sharesshares |
Stockholders Equity [Line Items] | ||||||||
Preferred stock, shares authorized | shares | 10,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | |||||||
Preferred stock, outstanding | shares | 0 | 0 | ||||||
Proceeds from the sale of common stock, net of issuance costs | $ | $ 37,627,000 | |||||||
EWB Warrant | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants issued to purchase common stock | shares | 40,000 | |||||||
Warrant exercise price | $ / shares | $ 3.64 | |||||||
Warrants or exercised received for common shares | shares | 27,599 | |||||||
Warrants and rights outstanding | $ | $ 42,000 | |||||||
Legal and administrative cost | $ | $ 92,000 | |||||||
EWB Warrant | Estimated Volatility | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants measurement input | 63.2 | |||||||
EWB Warrant | Risk Free Interest Rate | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants measurement input | 0.24 | |||||||
EWB Warrant | Dividend Yield | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants measurement input | 0 | |||||||
EWB Warrant | Expected Life | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants outstanding term | 3 years | |||||||
April 21 Funds Warrants | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants issued to purchase common stock | shares | 275,000 | |||||||
Warrant exercise price | $ / shares | $ 3.50 | |||||||
Warrants outstanding term | 3 years | |||||||
April 21 Funds Warrants | Estimated Volatility | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants measurement input | 63.2 | |||||||
April 21 Funds Warrants | Risk Free Interest Rate | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants measurement input | 0.24 | |||||||
April 21 Funds Warrants | Dividend Yield | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants measurement input | 0 | |||||||
April 21 Funds Warrants | Expected Life | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrants outstanding term | 3 years | |||||||
Common Stock | ||||||||
Stockholders Equity [Line Items] | ||||||||
Issuance of stock (in shares) | shares | 3,779,342 | |||||||
Offering price | $ / shares | $ 10.65 | |||||||
Proceeds from the sale of common stock, net of issuance costs | $ | $ 37,600,000 | |||||||
Offering related expenses | $ | $ 2,600,000 | |||||||
Minimum | EWB Warrant | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrant exercise price | $ / shares | $ 3.64 | |||||||
Warrants expiration date | Feb. 8, 2022 | |||||||
Maximum | EWB Warrant | ||||||||
Stockholders Equity [Line Items] | ||||||||
Warrant exercise price | $ / shares | $ 3.50 | |||||||
Warrants expiration date | Feb. 8, 2023 | |||||||
Maximum | Common Stock | ||||||||
Stockholders Equity [Line Items] | ||||||||
Shares issued, price per share | $ / shares | $ 4 | |||||||
Series A Participating Preferred Stock | ||||||||
Stockholders Equity [Line Items] | ||||||||
Preferred stock, shares authorized | shares | 40,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | |||||||
Preferred stock, outstanding | shares | 0 | 0 | ||||||
Series B Preferred Stock | ||||||||
Stockholders Equity [Line Items] | ||||||||
Preferred stock, shares authorized | shares | 5,000,000 | |||||||
Preferred stock, par value | $ / shares | $ 0.001 | |||||||
Series B Convertible Preferred Stock | ||||||||
Stockholders Equity [Line Items] | ||||||||
Preferred stock, shares authorized | shares | 5,000,000 | 5,000,000 | ||||||
Preferred stock, par value | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, outstanding | shares | 5,000,000 | 5,000,000 | ||||||
Preferred stock, issued | shares | 5,000,000 | 5,000,000 | ||||||
Shares issued, price per share | $ / shares | $ 4 | |||||||
Total purchase price payable | $ | $ 20,000,000 | |||||||
Convertible preferred stock, terms of conversion | Each Share shall be convertible into the Company’s common stock (i) following the sixth (6th) anniversary of the initial closing of the Private Placement or (ii) if earlier, during the thirty (30) day period following the last trading day of any period of three (3) or more consecutive trading days that the closing market price of the Company’s common stock exceeds $10.00. Each Share is convertible at the option of the holder of the Shares into such number of shares of the Company’s common stock | |||||||
Convertible preferred stock, threshold closing market price of entity stock | $ / shares | $ 10 | |||||||
Percentage of beneficially ownership limitation in excess of outstanding common stock immediately after effect to applicable conversion | 19.90% | |||||||
Minimum conversion price | $ / shares | $ 3.27 | |||||||
Dividend payment terms | Each share of Series B convertible preferred stock is entitled to a cumulative annual dividend of 5% for the first six (6) years following the issuance of such share and 3% for each year thereafter, with the Company retaining the option to settle each year’s dividend after the tenth (10th) year in cash. The dividends accrue and are payable in kind upon such time as the shares convert into the Company’s common stock. | |||||||
Cumulative annual dividend for first six years | 5.00% | |||||||
Cumulative annual dividend for each year after sixth year | 3.00% | |||||||
Price per share distributable to stockholders | $ / shares | $ 4 | |||||||
Series B Convertible Preferred Stock | Common Stock | ||||||||
Stockholders Equity [Line Items] | ||||||||
Preferred stock shares convertible into common stock | shares | 6,029,297 | |||||||
Series B Convertible Preferred Stock | Private Placement at Initial Closing of Transaction | ||||||||
Stockholders Equity [Line Items] | ||||||||
Issuance of stock (in shares) | shares | 3,000,000 | |||||||
Shares issued, price per share | $ / shares | $ 4 | |||||||
Total purchase price payable | $ | $ 12,000,000 | |||||||
Series B Convertible Preferred Stock | Private Placement at Second Closing of Transaction | ||||||||
Stockholders Equity [Line Items] | ||||||||
Issuance of stock (in shares) | shares | 2,000,000 | 2,000,000 | ||||||
Shares issued, price per share | $ / shares | $ 4 | $ 4 | ||||||
Total purchase price payable | $ | $ 8,000,000 | |||||||
Series B Convertible Preferred Stock | Maximum | ||||||||
Stockholders Equity [Line Items] | ||||||||
Preferred stock, issued | shares | 5,000,000 |
Summary of Series B Convertible
Summary of Series B Convertible Preferred Stock and Accretion of Dividend (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders Equity [Line Items] | ||
Dividends earned on Series B preferred stock | $ 1,148 | $ 1,094 |
Series B Convertible Preferred Stock | ||
Stockholders Equity [Line Items] | ||
Balance at beginning of period | 22,969 | 21,875 |
Dividends earned on Series B preferred stock | 1,148 | 1,094 |
Balance at end of period | $ 24,117 | $ 22,969 |
Number of shares at beginning of period | 5,742 | 5,469 |
Cumulative dividends on Series B convertible preferred stock | 287 | 273 |
Number of shares at end of period | 6,029 | 5,742 |
Summary of Outstanding Warrants
Summary of Outstanding Warrants Issued by Company (Detail) - April 21 Funds Warrants | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Number of Shares Issuable Upon Exercise | shares | 275,000 |
Weighted Average Exercise Price | $ / shares | $ 3.50 |
Issue Date | May 5, 2020 |
Expiration Date | May 5, 2023 |
Summary of Common Stock Reserve
Summary of Common Stock Reserved for Future Issuance (Detail) | Dec. 31, 2021shares |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 10,529,240 |
Exercise of Outstanding Stock Options, Vesting of Restricted Stock Units ("RSU"), Vesting of Performance Stock Units ("PSU") and Issuance of RSUs Vested but not Released | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 1,471,899 |
Employee Stock Purchase Plan | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 293,888 |
Shares of Common Stock Available for Grant Under the 2011 Plan | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 947,004 |
Warrants to Purchase Common Stock | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 275,000 |
Shares of Common Stock Issuable Upon Conversion of Series B Convertible Preferred Stock | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Common stock reserved for future issuance | 7,541,449 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | 127 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Jun. 06, 2011 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 10,529,240 | 10,529,240 | ||
Unrecognized compensation expense related to stock options | $ 0 | $ 0 | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 3,600,000 | 3,600,000 | ||
Unrecognized stock-based compensation expense, weighted average period of recognition | 2 years 10 months 24 days | |||
Granted | 288,368 | |||
Grant fair value | $ 14.64 | |||
Repurchase of common stock (in shares) | 82,351 | 171,641 | ||
Performance Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 1,100,000 | $ 1,100,000 | ||
Unrecognized stock-based compensation expense, weighted average period of recognition | 1 year | |||
Granted | 200,000 | |||
Grant fair value | $ 6.38 | |||
Realized tax benefit | $ 0 | |||
2011 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuance | 400,000 | |||
Number of shares available for grant | 859,956 | |||
Increase in shares of common stock authorized for issuance | 4,400,000 | |||
2007 Plan and 2010 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares available for grant | 459,956 |
Summary of Activity for Stock O
Summary of Activity for Stock Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options Number Outstanding | ||
Beginning Balance | 550,769 | |
Cancelled or Expired | (6,142) | |
Exercised | (29,934) | |
Ending Balance | 514,693 | 550,769 |
Vested or expected to vest as of December 31, 2021 | 514,693 | |
Exercisable as of December 31, 2021 | 514,693 | |
Stock Options Average Exercise Price per share | ||
Beginning Balance | $ 5.56 | |
Cancelled or Expired | 21.46 | |
Exercised | 10 | |
Ending Balance | 5.11 | $ 5.56 |
Vested or expected to vest as of December 31, 2021 | 5.11 | |
Exercisable as of December 31, 2021 | $ 5.11 | |
Stock Options Remaining Contractual Life (in years) | ||
Weighted Average Remaining Contractual Term (Years) | 4 years 10 months 17 days | 5 years 10 months 9 days |
Vested or expected to vest as of December 31, 2021 | 4 years 10 months 17 days | |
Exercisable as of December 31, 2021 | 4 years 10 months 17 days | |
Stock Options Average Intrinsic Value | ||
Average intrinsic value | $ 11,850,930 | $ 1,875,719 |
Vested or expected to vest as of December 31, 2021 | 11,850,930 | |
Exercisable as of December 31, 2021 | $ 11,850,930 |
Summary Information about Stock
Summary Information about Stock Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
$4.36 - $7.20 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | $ 4.36 |
Range of Exercise Prices, upper limit | $ 7.20 |
Stock Options Number Outstanding | shares | 452,510 |
Stock Options Outstanding Weighted Average Remaining Contractual Life (Years) | 4 years 4 months 13 days |
Stock Options Outstanding Weighted Average Exercise Price | $ 4.41 |
Stock Options Number Exercisable | shares | 452,510 |
Stock Options Exercisable Weighted Average Exercise Price | $ 4.41 |
$7.50 - $11.25 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 7.50 |
Range of Exercise Prices, upper limit | $ 11.25 |
Stock Options Number Outstanding | shares | 61,317 |
Stock Options Outstanding Weighted Average Remaining Contractual Life (Years) | 2 years 2 months 23 days |
Stock Options Outstanding Weighted Average Exercise Price | $ 10.19 |
Stock Options Number Exercisable | shares | 61,317 |
Stock Options Exercisable Weighted Average Exercise Price | $ 10.19 |
$11.30 - $16.95 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 11.30 |
Range of Exercise Prices, upper limit | $ 16.95 |
Stock Options Number Outstanding | shares | 500 |
Stock Options Outstanding Weighted Average Remaining Contractual Life (Years) | 2 years 3 months |
Stock Options Outstanding Weighted Average Exercise Price | $ 11.30 |
Stock Options Number Exercisable | shares | 500 |
Stock Options Exercisable Weighted Average Exercise Price | $ 11.30 |
$19.70 - $29.55 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 19.70 |
Range of Exercise Prices, upper limit | $ 29.55 |
Stock Options Number Outstanding | shares | 366 |
Stock Options Outstanding Weighted Average Remaining Contractual Life (Years) | 4 months 9 days |
Stock Options Outstanding Weighted Average Exercise Price | $ 19.70 |
Stock Options Number Exercisable | shares | 366 |
Stock Options Exercisable Weighted Average Exercise Price | $ 19.70 |
$4.36 - $29.55 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, lower limit | 4.36 |
Range of Exercise Prices, upper limit | $ 29.55 |
Stock Options Number Outstanding | shares | 514,693 |
Stock Options Outstanding Weighted Average Remaining Contractual Life (Years) | 4 years 1 month 9 days |
Stock Options Outstanding Weighted Average Exercise Price | $ 5.11 |
Stock Options Number Exercisable | shares | 514,693 |
Stock Options Exercisable Weighted Average Exercise Price | $ 5.11 |
Summary of RSU Activity (Detail
Summary of RSU Activity (Detail) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning Balance, Unvested, Number Outstanding | shares | 682,563 |
Granted, Number Outstanding | shares | 288,368 |
Vested, Number Outstanding | shares | (395,242) |
Forfeited, Number Outstanding | shares | (89,960) |
Ending Balance, Unvested, Number Outstanding | shares | 485,729 |
RSUs vested but not released, Number Outstanding | shares | 296,477 |
Beginning Balance, Unvested, Weighted Average Fair Value | $ / shares | $ 4.34 |
Granted, Weighted Average Fair Value | $ / shares | 14.64 |
Vested, Weighted Average Fair Value | $ / shares | 5.76 |
Forfeited, Weighted Average Fair Value | $ / shares | 4.92 |
Ending Balance, Unvested, Weighted Average Fair Value | $ / shares | 9.19 |
RSUs vested but not released, Weighted Average Fair Value | $ / shares | $ 5.31 |
Summary of PSU Activity (Detail
Summary of PSU Activity (Detail) - Performance Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Beginning Balance, Unvested, Number Outstanding | 200,000 | |
Granted, Number Outstanding | 200,000 | |
Vested, Number Outstanding | (23,500) | |
Forfeited, Number Outstanding | (1,500) | |
Ending Balance, Unvested, Number Outstanding | 175,000 | 200,000 |
Granted, Weighted Average Fair Value | $ 6.38 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense Related to Stock Options, RSUs and PSUs (Detail) - Stock Options and Restricted Stock Units - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | $ 2,606 | $ 3,027 |
Cost of revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | 183 | 160 |
Research and Development Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | 486 | 685 |
Selling and Marketing Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | 545 | 480 |
General and Administrative Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-Based Compensation Expense | $ 1,392 | $ 1,702 |
Calculations for Basic and Dilu
Calculations for Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | ||
Net income (loss) | $ 1,620 | $ (5,105) |
Less: accretion of Series B convertible preferred stock dividends | (1,148) | (1,094) |
Net income (loss) available to common stockholders | $ 472 | $ (6,199) |
Denominator: | ||
Weighted average common shares outstanding - basic | 21,340 | 17,978 |
Net income (loss) per common share - basic | $ 0.02 | $ (0.34) |
Dilutive securities: | ||
Stock options, RSUs, and warrants | 927 | |
Weighted average common shares outstanding - diluted | 22,267 | 17,978 |
Net income (loss) per common share - diluted | $ 0.02 | $ (0.34) |
Diluted net income (loss) per common share: | ||
Net income (loss) available to common stockholders | $ 472 | $ (6,199) |
Net income (loss) available to common stockholders | $ 472 | $ (6,199) |
Common Stock Equivalents Exclud
Common Stock Equivalents Excluded From Diluted Net Income (Loss) Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 6,029 | 7,291 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 683 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 551 | |
Warrants | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 315 | |
Shares of Common Stock Issuable Upon Conversion of Series B Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Common stock equivalents diluted net income (loss) per share inclusion anti-dilutive | 6,029 | 5,742 |
Information Regarding Net Reven
Information Regarding Net Revenue and Gross Profit by Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 103,769 | $ 86,920 |
Gross profit | $ 37,067 | $ 33,681 |
Gross profit margin | 36.00% | 39.00% |
Operating expenses: | ||
Research and development | $ 8,673 | $ 9,781 |
Selling and marketing | 17,033 | 17,270 |
General and administrative | 11,891 | 8,623 |
Decrease in fair value of earnout liability | (261) | |
Restructuring and severance | 817 | 1,716 |
Total operating expenses | 38,414 | 37,129 |
Loss from operations | (1,347) | (3,448) |
Non-operating income (expense): | ||
Interest expense, net | (483) | (1,462) |
Gain on forgiveness of Paycheck Protection Program note | 2,946 | |
Gain on investment | 611 | |
Foreign currency losses, net | (79) | (122) |
Income (loss) before income tax provision | 1,648 | (5,032) |
Identity | ||
Segment Reporting Information [Line Items] | ||
Net revenue | 64,725 | 52,742 |
Gross profit | $ 15,670 | $ 14,781 |
Gross profit margin | 24.00% | 28.00% |
Premises | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 39,044 | $ 34,178 |
Gross profit | $ 21,397 | $ 18,900 |
Gross profit margin | 55.00% | 55.00% |
Information Regarding Net Rev_2
Information Regarding Net Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Net revenue | $ 103,769 | $ 86,920 |
Geographic Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenue | 100.00% | 100.00% |
Americas | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 69,396 | $ 58,302 |
Americas | Geographic Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenue | 67.00% | 67.00% |
Europe and the Middle East | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 12,876 | $ 9,497 |
Europe and the Middle East | Geographic Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenue | 12.00% | 11.00% |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Net revenue | $ 21,497 | $ 19,121 |
Asia-Pacific | Geographic Concentration Risk | Revenue from Contract with Customer | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenue | 21.00% | 22.00% |
Long-Lived Assets by Geographic
Long-Lived Assets by Geographic Location (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 4,066 | $ 2,827 |
Operating lease ROU assets | 2,088 | 3,405 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 545 | 606 |
Operating lease ROU assets | 1,344 | 2,100 |
Europe and the Middle East | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 334 | 73 |
Operating lease ROU assets | 135 | 224 |
Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 3,187 | 2,148 |
Operating lease ROU assets | $ 609 | $ 1,081 |
Restructuring and Severance - A
Restructuring and Severance - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and severance expenses | $ 817,000 | $ 1,716,000 |
Impairment of ROU operating lease asset | 281,000 | 1,294,000 |
3VR | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and severance expenses | 817,000 | 1,716,000 |
3VR | Severance | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and severance expenses | 296,000 | 375,000 |
3VR | Facility Rental | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and severance expenses | 521 | 1,341,000 |
Impairment of ROU operating lease asset | $ 281,000 | |
3VR | Impairment of ROU Operating Lease Asset | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and severance expenses | $ 1,296,000 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee Lease Description [Line Items] | ||
Total rent expense | $ 1.3 | $ 1.5 |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | |
Weighted average remaining operating lease term | 2 years 4 months 24 days | |
Weighted average discount rate of operating lease | 5.90% | |
Sublease rental income due in future under non-cancelable subleases | $ 1.6 | |
Operating lease liabilities, cash paid | $ 1.4 | $ 2.1 |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Remaining lease term | 4 years | |
Operating leases, options to extend leases term | 5 years |
Leases - Schedule of Reconciles
Leases - Schedule of Reconciles Undiscounted Cash flows of Operating Lease Liabilities Recorded on the Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 1,372 | |
2023 | 494 | |
2024 | 250 | |
2025 | 231 | |
2026 | 42 | |
Total minimum lease payments | 2,389 | |
Less: amount of lease payments representing interest | (182) | |
Present value of future minimum lease payments | 2,207 | |
Less: current liabilities under operating leases | (1,269) | $ (1,279) |
Long-term operating lease liabilities | $ 938 | $ 2,272 |
Summary of Principal Contractua
Summary of Principal Contractual Obligations, Excluding Operating Leases (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Purchase Commitments | |
2022 | $ 36,838 |
2023 | 1,479 |
Total | 38,317 |
Other Contractual Commitments | |
2022 | 173 |
Total | 173 |
Total Commitments | |
2022 | 37,011 |
2023 | 1,479 |
Total | $ 38,490 |
Summary of Warranty Accrual Act
Summary of Warranty Accrual Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Balance at beginning of period | $ 321 | $ 407 |
Accruals for warranties charged to expense | 59 | 55 |
Cost of warranty claims | (3) | (141) |
Balance at end of period | $ 377 | $ 321 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Commitment And Contingencies [Line Items] | |
Term of warranties on certain product sales | 12 months |
Maximum | |
Commitment And Contingencies [Line Items] | |
Term of warranties on certain product sales | 36 months |