| Balance Sheet Components | BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable are contract assets that arise from the performance of our performance obligation pursuant to our contracts with our customers and represent our unconditional right to payment for the satisfaction of our performance obligations. They are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. Accounts receivable are stated net of an allowance for doubtful accounts, which is maintained for estimated losses that may result from the inability of our customers to make required payments. Accounts receivable consists of the following: March 31, December 31, Accounts receivable, gross $ 8,915 $ 10,938 Less: allowance for doubtful accounts (65 ) (23 ) Accounts receivable, net $ 8,850 $ 10,915 The following is the change in our allowance for doubtful accounts: Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 23 $ 21 Additions charged 42 17 Balance at end of period $ 65 $ 38 Inventories Inventories consist of finished goods and work-in-process, and are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis) or market (net realizable value). Inventories consist of the following: March 31, December 31, Finished goods $ 2,580 $ 1,630 Work-in-process 1,960 3,771 Inventories $ 4,540 $ 5,401 Property and Equipment, Net Property and equipment consists of the following: March 31, December 31, Gross carrying amount $ 24,491 $ 22,866 Less: accumulated depreciation and amortization (19,207 ) (18,258 ) Property and equipment, net $ 5,284 $ 4,608 Acquired Intangible Assets, Net In connection with the acquisition of ViXS (the "Acquisition"), we recorded certain identifiable intangible assets. Acquired intangible assets resulting from this transaction were assigned to Pixelworks, Inc., and consist of the following: March 31, December 31, Developed technology $ 5,050 $ 5,050 Customer relationships 1,270 1,270 Backlog and tradename 410 410 6,730 6,730 Less: accumulated amortization (4,401 ) (4,026 ) Acquired intangible assets, net $ 2,329 $ 2,704 Developed technology and customer relationships are amortized over a useful life of 3 to 5 years. Backlog was fully amortized as of September 30, 2018 and tradename was fully amortized as of March 31, 2019. Amortization expense for intangible assets was $374 for the three months ended March 31, 2020, $298 was included in cost of revenue and $76 was included in selling, general and administrative in the condensed consolidated statements of operations. As of March 31, 2020, future estimated amortization expense is as follows: Nine months ending December 31: 2020 $ 1,122 Years ending December 31: 2021 1,117 2022 90 $ 2,329 Acquired intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Conditions that would trigger an impairment assessment include, but are not limited to, past, current, or expected cash flow or operating losses associated with the asset. There were no such triggering events requiring an impairment assessment of other intangible assets during the three months ended March 31, 2020. Goodwill Goodwill resulted from the Acquisition, whereby we recorded goodwill of $18,407 . Goodwill is not amortized; however, we review goodwill for impairment annually and whenever events or changes in circumstances indicate that the fair value of the reporting unit may be less than it's carrying value. Conditions that would trigger an impairment assessment include, but are not limited to, a significant adverse change in our business climate or a current period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continued losses or adverse changes in legal factors, regulation or business environment. There were no such triggering events requiring a goodwill impairment assessment during the three months ended March 31, 2020. We perform our annual impairment assessment for goodwill on November 30 of each year. Accrued Liabilities and Current Portion of Long-Term Liabilities Accrued liabilities and current portion of long-term liabilities consist of the following: March 31, December 31, Accrued payroll and related liabilities $ 2,910 $ 3,440 Operating lease liabilities, current 1,945 1,545 Current portion of accrued liabilities for asset financings 1,211 483 Accrued commissions and royalties 592 663 Accrued interest payable 396 397 Deferred revenue 186 146 Accrued costs related to restructuring — 66 Other 2,172 1,952 Accrued liabilities and current portion of long-term liabilities $ 9,412 $ 8,692 Deferred revenues are contract liabilities that arise when cash payments are received or due in advance of the satisfaction of our performance obligations. Any increase in deferred revenues is driven by cash payments received or due in advance of satisfying our performance obligation pursuant to the contract with the customer. Any decrease in deferred revenues is due to the recognition of revenue related to satisfying our performance obligation. The change in deferred revenue is as follows: Three Months Ended March 31, 2020 2019 Deferred revenue: Balance at beginning of period $ 146 $ 96 Revenue deferred 405 275 Revenue recognized (365 ) (185 ) Balance at end of period $ 186 $ 186 Short-Term Line of Credit On December 21, 2010, we entered into a Loan and Security Agreement with Silicon Valley Bank (the "Bank"), which was amended on December 14, 2012, December 4, 2013, December 18, 2015, December 15, 2016, July 21, 2017, December 21, 2017, December 18, 2018, December 18, 2019 and April 17, 2020 (as amended, the "Revolving Loan Agreement"). The Revolving Loan Agreement provides a secured working capital-based revolving line of credit (the "Revolving Line") in an aggregate amount of up to the lesser of (i) $10,000 , or (ii) $2,500 plus 80% of eligible domestic accounts receivable and certain foreign accounts receivable of both Pixelworks and ViXS Systems, Inc., subject to certain limitations on the amount of accounts receivables attributable to ViXS. The Revolving Line has a maturity date of December 27, 2020. In addition, the Revolving Loan Agreement provides for non-formula advances of up to $10,000 which may be made solely during the last five business days of any fiscal month or quarter and which must be repaid by us on or before the fifth business day after the applicable fiscal month or quarter end. Due to their repayment terms, non-formula advances do not provide us with usable liquidity. The Revolving Loan Agreement, as amended, contains customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could result in the acceleration of our obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would permit the Bank to exercise remedies with respect to its security interest. As of March 31, 2020, we were in compliance with all of the terms of the Revolving Loan Agreement, as amended. As of March 31, 2020, short-term borrowings outstanding under the Revolving Line consisted of $5,157 . The weighted-average interest rate on short-term borrowings outstanding as of March 31, 2020 was 3.5% . As of December 31, 2019, we had no |
