Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-30269 | ||
Entity Registrant Name | PIXELWORKS, INC | ||
Entity Incorporation, State or Country Code | OR | ||
Entity Tax Identification Number | 91-1761992 | ||
Entity Address, Address Line One | 16760 Upper Boones Ferry Rd. Ste. 101 | ||
Entity Address, City or Town | Portland | ||
Entity Address, State or Province | OR | ||
Entity Address, Postal Zip Code | 97224 | ||
City Area Code | 503 | ||
Local Phone Number | 601-4545 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | PXLW | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 172,650,121 | ||
Entity Public Float, Share Price | $ 3.41 | ||
Entity Common Stock, Shares Outstanding | 53,966,262 | ||
Documents Incorporated by Reference | Part III incorporates information by reference to the registrant’s definitive proxy statement, to be filed with the Securities and Exchange Commission within 120 days after the close of the fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001040161 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 32 |
Auditor Name | Armanino LLP |
Auditor Location | San Ramon, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 61,587 | $ 31,257 |
Short-term marketable securities | 0 | 250 |
Accounts receivable, net | 8,708 | 4,672 |
Inventories | 1,469 | 2,445 |
Prepaid expenses and other current assets | 2,732 | 1,010 |
Total current assets | 74,496 | 39,634 |
Property and equipment, net | 5,656 | 5,103 |
Operating lease right-of-use assets | 4,789 | 6,606 |
Other assets, net | 3,162 | 1,081 |
Acquired intangible assets, net | 90 | 1,207 |
Goodwill | 18,407 | 18,407 |
Total assets | 106,600 | 72,038 |
Current liabilities: | ||
Accounts payable | 2,747 | 995 |
Accrued liabilities and current portion of long-term liabilities | 13,563 | 9,452 |
Current portion of income taxes payable | 128 | 147 |
Total current liabilities | 16,438 | 10,594 |
Long-term liabilities, net of current portion | 519 | 1,007 |
Deposit liability | 12,716 | 0 |
Operating lease liabilities, net of current portion | 2,853 | 5,088 |
Income taxes payable, net of current portion | 2,948 | 2,479 |
Total liabilities | 35,474 | 19,168 |
Commitments and contingencies (Note 11) | ||
Redeemable non-controlling interest | 30,905 | 0 |
Shareholders' equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.001 par value; 250,000,000 shares authorized, 53,367,136 and 51,078,942 shares issued and outstanding as of December 31, 2021 and 2020, respectively. | 475,644 | 467,957 |
Accumulated other comprehensive income (loss) | (468) | 47 |
Accumulated deficit | (434,955) | (415,134) |
Total shareholders' equity | 40,221 | 52,870 |
Total liabilities, redeemable non-controlling interest and shareholders' equity | $ 106,600 | $ 72,038 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 53,367,136 | 51,078,942 |
Common stock, shares outstanding (in shares) | 53,367,136 | 51,078,942 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue, net | $ 55,102 | $ 40,855 |
Cost of revenue | 27,409 | 20,670 |
Gross profit | 27,693 | 20,185 |
Operating expenses: | ||
Research and development | 27,250 | 25,040 |
Selling, general and administrative | 20,445 | 19,840 |
Restructuring | 0 | 2,041 |
Total operating expenses | 47,695 | 46,921 |
Loss from operations | (20,002) | (26,736) |
Interest income and other, net | 457 | 9 |
Gain on loan extinguishment | 0 | 796 |
Total other income, net | 457 | 805 |
Loss before income taxes | (19,545) | (25,931) |
Loss before income taxes | (19,545) | (25,931) |
Provision (benefit) for income taxes | (133) | 598 |
Net loss | (19,412) | (26,529) |
Less: Net income attributable to redeemable non-controlling interest | (409) | 0 |
Net loss attributable to Pixelworks, Inc. | $ (19,821) | $ (26,529) |
Net loss attributable to Pixelworks, Inc. per share - basic (in usd per share) | $ (0.38) | $ (0.65) |
Net loss attributable to Pixelworks, Inc. per share - diluted (in usd per share) | $ (0.38) | $ (0.65) |
Weighted average shares outstanding - basic (in shares) | 52,509,000 | 40,712,000 |
Weighted average shares outstanding - diluted (in shares) | 52,509,000 | 40,712,000 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring | $ 0 | $ 2,041 |
Amortization of acquired intangible assets | 1,118 | |
Cost of revenue | ||
Amortization of acquired intangible assets | 899 | 1,192 |
Stock-based compensation | 43 | 432 |
Restructuring | 0 | 173 |
Amortization of acquired intangible assets | 899 | |
Research and development | ||
Stock-based compensation | 2,363 | 2,943 |
Selling, general and administrative | ||
Stock-based compensation | 3,678 | 4,296 |
Amortization of acquired intangible assets | $ 219 | $ 304 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (19,412) | $ (26,529) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | (520) | 0 |
Foreign pension adjustment | 6 | 48 |
Tax effect of foreign pension adjustment | (1) | (10) |
Unrealized loss on available-for-sale securities | 0 | (3) |
Total comprehensive loss attributable to Pixelworks, Inc. | (19,927) | (26,494) |
Less: Net income attributable to redeemable non-controlling interest | (409) | 0 |
Total comprehensive loss attributable to Pixelworks, Inc. | $ (20,336) | $ (26,494) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (19,412) | $ (26,529) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock-based compensation | 6,084 | 7,853 |
Depreciation and amortization | 3,648 | 3,737 |
Amortization of acquired intangible assets | 1,118 | 1,496 |
Deferred income tax expense (benefit) | (768) | 26 |
Reversal of uncertain tax positions | (2) | (88) |
Gain on loan extinguishment | 0 | (796) |
Accretion on short-term marketable securities | 0 | (4) |
Gain on sale of marketable securities | 0 | (4) |
Other | 10 | 9 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (4,036) | 6,243 |
Inventories | 976 | 2,956 |
Prepaid expenses and other current and long-term assets, net | (46) | 3,295 |
Accounts payable | 1,282 | 166 |
Accrued current and long-term liabilities | 1,537 | (2,361) |
Income taxes payable | 452 | 290 |
Net cash used in operating activities | (9,157) | (3,711) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,475) | (2,637) |
Proceeds from sales and maturities of marketable securities | 250 | 8,229 |
Purchases of available-for-sale marketable securities | 0 | (1,500) |
Purchases of licensed technology | 0 | (152) |
Net cash provided by (used in) investing activities | (3,225) | 3,940 |
Cash flows from financing activities: | ||
Net proceeds from issuance of equity interest to certain entities owned by employees | 29,976 | 0 |
Proceeds from Issuance of Equity Interest to Entities Owned by Employees | 12,329 | 0 |
Proceeds from issuances of common stock under employee equity incentive plans | 1,282 | 600 |
Payments on asset financings | (1,195) | (1,007) |
Net proceeds from "at the market" equity offering | 320 | 4,429 |
Net proceeds from equity offering | 0 | 12,743 |
Net proceeds from private placement investment | 0 | 6,210 |
Proceeds from Paycheck Protection Program loan | 0 | 796 |
Net cash provided by financing activities | 42,712 | 23,771 |
Net increase in cash and cash equivalents | 30,330 | 24,000 |
Cash and cash equivalents, beginning of period | 31,257 | 7,257 |
Cash and cash equivalents, end of period | 61,587 | 31,257 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds received | 376 | 397 |
Cash paid during the year for interest | 162 | 217 |
Non-cash investing and financing activities: | ||
Acquisitions of property and equipment and other assets under extended payment terms | 1,229 | 1,495 |
Gain on loan extinguishment | $ 0 | $ (796) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Equity Offering | Private Placement | At the Market Offering | Common Stock | Common StockEquity Offering | Common StockPrivate Placement | Common StockAt the Market Offering | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance, shares at Dec. 31, 2019 | 38,434,488 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 47,529 | $ 436,122 | $ 12 | $ (388,605) | ||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||
Stock issued under employee equity incentive plans, shares | 2,061,988 | |||||||||
Stock issued under employee equity incentive plans | 600 | $ 600 | ||||||||
Equity offering, shares | 5,635,000 | 3,200,000 | 1,747,466 | |||||||
Equity offering | $ 12,743 | $ 6,210 | $ 4,429 | $ 12,743 | $ 6,210 | $ 4,429 | ||||
Stock-based compensation expense | 7,853 | 7,853 | ||||||||
Unrealized loss on available-for-sale securities | (3) | (3) | ||||||||
Foreign currency translation adjustment | 0 | |||||||||
Net loss attributable to Pixelworks Inc. | (26,529) | (26,529) | ||||||||
Foreign pension adjustment, net of tax | 38 | 38 | ||||||||
Ending balance at Dec. 31, 2020 | 52,870 | $ 467,957 | 47 | (415,134) | ||||||
Ending balance, shares at Dec. 31, 2020 | 51,078,942 | |||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ||||||||||
Stock issued under employee equity incentive plans, shares | 2,227,176 | |||||||||
Stock issued under employee equity incentive plans | 1,282 | $ 1,282 | ||||||||
Equity offering, shares | 61,018 | |||||||||
Equity offering | $ 321 | $ 321 | ||||||||
Stock-based compensation expense | 6,084 | 6,084 | ||||||||
Foreign currency translation adjustment | (520) | (520) | ||||||||
Net loss attributable to Pixelworks Inc. | (19,821) | (19,821) | ||||||||
Foreign pension adjustment, net of tax | 5 | 5 | ||||||||
Ending balance at Dec. 31, 2021 | $ 40,221 | $ 475,644 | $ (468) | $ (434,955) | ||||||
Ending balance, shares at Dec. 31, 2021 | 53,367,136 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Foreign pension adjustment, tax | $ 1 | $ 10 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Nature of Business Pixelworks is a leading provider of high-performance and power-efficient visual processing solutions that bridge the gap between video content formats and rapidly advancing display capabilities. We develop and market semiconductor and software solutions that enable consistently high-quality, authentic viewing experiences in a wide variety of applications from cinema to smartphones. Our primary target markets include Mobile (smartphone, gaming and tablet), Home Entertainment (TV, personal video recorder ("PVR"), over-the-air ("OTA") and projector), Content (creation, remastering and delivery), and Business & Education (projector). As of December 31, 2021, we had an intellectual property portfolio of 335 patents related to the visual display of digital image data. We focus our research and development efforts on developing video algorithms that improve quality, and architectures that reduce system power, cost, bandwidth and increase overall system performance and device functionality. We seek to expand our technology portfolio through internal development and co-development with business partners, and we continually evaluate acquisition opportunities and other ways to leverage our technology into other high-value markets. Pixelworks was founded in 1997 and is incorporated under the laws of the state of Oregon. On August 2, 2017, we acquired ViXS Systems, Inc., a corporation organized in Canada ("ViXS") ("the Acquisition"). During the third quarter of 2021, we engaged in a strategic plan to re-align our mobile, projector, and video delivery businesses to improve their focus on the Asia-centered customers and employee stakeholders of those businesses. The global center of the mobile, projector, and video delivery businesses continues to be in Asia, and the steps we have taken to date and going forward are intended to improve our ability to access capital, customers, and talent. We have operated our primary R&D center in Asia for over 15 years and feel that the time is right to take advantage of that existing footprint and develop our subsidiary, Pixelworks Semiconductor Technology (Shanghai) Co., Ltd. (or "PWSH") as a full profit-and-loss center underneath Pixelworks, Inc. for the mobile, projector, and video delivery businesses. Most of these steps have been completed as of the end of 2021. This plan will further enable PWSH to seek qualification to file an application for an initial public offering on the Shanghai Stock Exchange’s Science and Technology Innovation Board, known as the STAR Market (the “Listing”). We believe that the Listing will have many benefits, including improved access to new capital markets and the funding of its growth worldwide. We presently intend to qualify PWSH to apply for the Listing so that the Listing is consummated in 2023. The process of going public on the STAR Market includes several periods of review and, therefore, is a lengthy process. There is no guarantee that PWSH will be approved for a Listing at any point in the future. Our consolidated financial statements include the accounts of Pixelworks and its subsidiaries. Intercompany accounts and transactions have been eliminated. All foreign subsidiaries use the U.S. dollar as the functional currency, and as a result, transaction gains and losses are included in the consolidated statements of operations. Transaction (gains) and losses were $(258) and $419 for the years ended December 31, 2021 and 2020, respectively. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, stock-based compensation and income taxes. The actual results experienced could differ materially from our estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash and Cash Equivalents We classify all cash and highly liquid investments with original maturities of three months or less at the date of purchase as cash and cash equivalents. Cash equivalents, which as of December 31, 2021 and 2020 consisted of U.S. denominated money market funds, totaled $15,254 and $23,832 as of December 31, 2021 and 2020, respectively. Marketable Securities Our investments in marketable securities are classified as available-for-sale. Available-for-sale securities are stated at fair value based on quoted market prices with unrealized holding gains or losses, net of tax, included in accumulated other comprehensive income, a component of shareholders’ equity. The cost of securities sold is based on the specific identification method. Accounts Receivable Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. At the end of each reporting period, we estimate the allowance for doubtful accounts based on an account-by-account risk analysis of outstanding receivable balances. The determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status. Past due status is based on invoice date and terms specific to each customer. 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). Property and Equipment Property and equipment are stated at cost. Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of the assets which are generally as follows: Software Lesser of 3 years or contractual license term Equipment, furniture and fixtures 2 years Tooling 2 to 4 years Leasehold improvements Lesser of lease term or estimated useful life The cost of property and equipment repairs and maintenance is expensed as incurred. Licensed Technology We have capitalized licensed technology assets in other long-term assets. These assets are stated at cost and are amortized on a straight-line basis over the term of the license or the estimated life of the asset, if the license is not contractually limited, which is generally two Useful Lives and Recoverability of Equipment and Other Long-Lived Assets We evaluate the remaining useful life and recoverability of equipment and other assets, including identifiable intangible assets, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If there is an indicator of impairment, we prepare an estimate of future, undiscounted cash flows expected to result from the use of each asset and its eventual disposition. If these cash flows are less than the carrying value of the asset, we adjust the carrying amount of the asset to its estimated fair value. We have concluded that the carrying value of our long-lived assets is recoverable as of December 31, 2021. Goodwill Goodwill is not amortized, rather it is tested, at least annually, for impairment at a reporting unit level. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment using the guidance set forth in FASB Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") which states that an entity may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. Accordingly, we have elected to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. We tested goodwill for impairment under the quantitative goodwill impairment test during the fourth quarter of 2021 and concluded that goodwill was not impaired. Warranty Program We warrant that our products will be free from defects in material and workmanship for a period of twelve months from delivery. Warranty repairs are guaranteed for the remainder of the original warranty period. Our warranty is limited to repairing or replacing products, or refunding the purchase price. At the end of each reporting period, we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions. The reserve for warranty returns is included in accrued liabilities in our consolidated balance sheets. Stock-Based Compensation We currently sponsor a stock incentive plan that allows for issuance of employee stock options and restricted stock awards, including restricted stock units. We also have an employee stock purchase plan for all eligible employees. The fair value of share-based payment awards is expensed straight-line over the requisite service period, which is generally the vesting period, for the entire award. Additionally, any modification of an award that increases its fair value will require us to recognize additional expense. The fair value of our stock option grants and purchase rights under our employee stock purchase plan are estimated as of the grant date using the Black-Scholes option pricing model which is affected by our estimates of the risk free interest rate, our expected dividend yield, expected term and the expected share price volatility of our common shares over the expected term. The fair value of our restricted stock awards are based on the market value of our stock on the date of grant. Research and Development Costs associated with research and development activities are expensed as incurred, except for items with alternate future uses which are capitalized and depreciated over their estimated useful lives. On occasion, we enter into co-development arrangements with current or prospective customers to defray a portion of the research and development expenses we expect to incur in connection with our development of an IC product. As amounts become due and payable, they are offset against research and development expense on a pro-rata basis. Income Taxes We account for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish a valuation allowance to reduce deferred tax assets if it is "more likely than not" that a portion or all of the asset will not be realized in future tax returns. An uncertain tax position represents treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, we do not recognize the tax benefits resulting from such positions and report the tax effects for uncertain tax positions in our consolidated balance sheets. Risks and Uncertainties Concentration of Suppliers We do not own or operate a semiconductor fabrication facility and do not have the resources to manufacture our products internally. We rely on a limited number of foundries and assembly and test vendors to produce all of our wafers and for completion of finished products. We do not have any long-term agreements with any of these suppliers. In light of these dependencies, it is reasonably possible that failure to perform by one of these suppliers could have a severe impact on our results of operations. Additionally, the concentration of these vendors within Taiwan and the People’s Republic of China increases our risk of supply disruption due to natural disasters, economic instability, political unrest or other regional disturbances. Risk of Technological Change The markets in which we compete, or seek to compete, are subject to rapid technological change, frequent new product introductions, changing customer requirements for new products and features, and evolving industry standards. The introduction of new technologies and the emergence of new industry standards could render our products less desirable or obsolete, which could harm our business. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash equivalents and accounts receivable. We limit our exposure to credit risk associated with cash equivalent balances by holding our funds in high quality, highly liquid money market accounts. We limit our exposure to credit risk associated with accounts receivable by carefully evaluating creditworthiness before offering terms to customers. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2019-12, Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 removes certain exceptions to the general principles in Accounting Standards Codification ("ASC") 740 and also clarifies and amends existing guidance to provide for more consistent application. ASU 2019-12 became effective for us in the first quarter of fiscal 2021, and early adoption is permitted. The adoption of ASU 2019-12 did not have a material impact on our financial position, results of operations and cash flows. In November 2018, the FASB issued Accounting Standards Update No. 2018-18, Collaborative Arrangements: Clarifying the Interaction Between Topic 808 and Topic 606 ("ASU 2018-18"). ASU 2018-18 requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counterparty is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. ASU 2018-18 became effective for us on January 1, 2020. The adoption of ASU 2018-18 did not have a material impact on our financial position, results of operations and cash flows. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | BALANCE SHEET COMPONENTS Accounts Receivable, Net Accounts receivable consists of the following: December 31, 2021 2020 Accounts receivable, gross $ 8,744 $ 4,713 Allowance for doubtful accounts (36) (41) Accounts receivable, net $ 8,708 $ 4,672 The following is a summary of the change in our allowance for doubtful accounts: Year Ended December 31, 2021 2020 Balance at beginning of year $ 41 $ 23 Additions charged (reductions credited) (5) 18 Balance at end of year $ 36 $ 41 Inventories Inventories consist of the following: December 31, 2021 2020 Finished goods $ 461 $ 1,775 Work-in-process 1,008 670 Inventories $ 1,469 $ 2,445 We recorded inventory write-downs of $488 and $95 for the years ended December 31, 2021 and 2020, respectively. The inventory write-downs were for lower of cost or net realizable value and excess and obsolescence exposure. The inventory write-downs were offset by sales of previously written-down inventory of $9 and $29 for the years ended December 31, 2021 and 2020, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of current prepaid expenses, deposits, income taxes receivable and other receivables. Property and Equipment, Net Property and equipment consists of the following: December 31, 2021 2020 Equipment, furniture and fixtures $ 9,463 $ 8,889 Tooling 5,749 6,298 Software 5,230 5,711 Leasehold improvements 1,375 1,393 21,817 22,291 Accumulated depreciation and amortization (16,161) (17,188) Property and equipment, net $ 5,656 $ 5,103 Software amortization was $1,214 and $1,174 for the years ended December 31, 2021 and 2020, respectively. Depreciation and amortization expense for equipment, furniture, fixtures, tooling and leasehold improvements was $2,281 and $2,227 for the years ended December 31, 2021 and 2020, respectively. Other Assets, Net Other assets consist primarily of deposits, deferred tax assets and licensed technology. Amortization of licensed technology was $153 and $336 for the years ended December 31, 2021 and 2020, respectively. Acquired Intangible Assets, Net In connection with the Acquisition, we recorded certain identifiable intangible assets. Acquired intangible assets resulting from this transaction consist of the following: December 31, 2021 2020 Developed technology $ 5,050 $ 5,050 Customer relationships 1,270 1,270 Backlog and tradename 410 410 6,730 6,730 Less: accumulated amortization (6,640) (5,523) Acquired intangible assets, net $ 90 $ 1,207 Intangible assets are amortized over the following estimated useful lives: developed technology and customer relationships, 3 to 5 years; tradename and backlog, 6 to 18 months. Backlog was fully amortized as of December 31, 2018 and tradename was fully amortized as of December 31, 2019. Amortization expense for intangible assets was $1,118 for the year ended December 31, 2021, with $899 included in cost of revenue and $219 included in selling, general and administrative on the consolidated statements of operations. As of December 31, 2021, future estimated amortization expense is as follows: Year ending December 31, 2022 $ 90 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 as of December 31, 2021. Goodwill Goodwill resulted from the Acquisition, whereby we recorded goodwill of $18,407. See Note 2: "Summary of Significant Accounting Policies" for information on our assessment of goodwill impairment. Accrued Liabilities and Current Portion of Long-Term Liabilities Accrued liabilities and current portion of long-term liabilities consist of the following: December 31, 2021 2020 Accrued payroll and related liabilities $ 3,490 $ 2,867 Operating lease liability, current 2,439 2,039 Deferred research and development reimbursement 1,838 — Current portion of accrued liabilities for asset financings 1,077 786 Accrued interest payable 361 429 Accrued commissions and royalties 259 474 Deferred revenue 50 179 Accrued costs related to restructuring — 630 Other 4,049 2,048 Accrued liabilities and current portion of long-term liabilities $ 13,563 $ 9,452 The following is a summary of the change in deferred revenue: Year Ended December 31, 2021 2020 Deferred revenue: Balance at beginning of period $ 179 $ 146 Revenue recognized (1,127) (902) Revenue deferred 998 935 Balance at end of period $ 50 $ 179 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 over time, including as recently as December 14, 2020 (as amended, the "Revolving Loan Agreement"). The Revolving Loan Agreement provided 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. The Revolving Line had a maturity date of March 26, 2021. In addition, the Revolving Loan Agreement provided for non-formula advances of up to $10,000 which could be made solely during the last five business days of any fiscal month or quarter and which were required to be repaid by the Company on or before the fifth business day after the applicable fiscal month or quarter end. The Revolving Loan Agreement, as amended, contained customary affirmative and negative covenants as well as customary events of default. The occurrence of an event of default could have resulted in the acceleration of our obligations under the Revolving Loan Agreement, as amended, and an increase to the applicable interest rate, and would have permitted the Bank to exercise remedies with respect to its security interest. The Revolving Line had a maturity date of March 26, 2021. We did not renew the Revolving Loan Agreement upon its maturity. As of December 31, 2020, we had no outstanding borrowings on the Revolving Line. Paycheck Protection Program Loan On April 25, 2020, we entered into a loan with Silicon Valley Bank as the lender in an aggregate principal amount of $796 (the “Loan”) pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan was evidenced by a promissory note (the “Note”) dated April 25, 2020, and matured 2 years from the disbursement date. The Note bore interest at a rate of 1.000% per annum, with the first six months of interest deferred. Principal and interest were payable monthly commencing 6 months after the disbursement date and could be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Note contained customary events of default relating to, among other things, payment defaults or breaches of the terms of the Note. Upon the occurrence of an event of default, the Lender could require immediate repayment of all amounts outstanding under the Note. Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. The Loan is subject to forgiveness to the extent proceeds are used for payroll costs, including payments required to continue group health care benefits, and certain rent, utility, and mortgage interest expenses (collectively, “Qualifying Expenses”), pursuant to the terms and limitations of the PPP. We used the Loan amount for Qualifying Expenses. During the fourth quarter of 2020, we applied for and received full forgiveness and recorded a gain of $796 within other income in our consolidated statements of operations. |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | MARKETABLE SECURITIES AND FAIR VALUE MEASUREMENTS Marketable Securities We had no marketable securities as of December 31, 2021. As of December 31, 2020, all of our marketable securities were classified as available-for-sale, had contractual maturities of one year or less and consisted of the following: Cost Unrealized Gain (Loss) Fair Value Short-term marketable securities: As of December 31, 2020: Corporate debt securities $ 253 $ (3) $ 250 $ 253 $ (3) $ 250 Unrealized holding gains and losses are recorded in accumulated other comprehensive income, a component of shareholders’ equity, in the consolidated balance sheets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2: Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The following table presents information about our assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets as of December 31, 2021 and 2020: Level 1 Level 2 Level 3 Total As of December 31, 2021: Assets: Cash equivalents: Money market funds $ 15,254 $ — $ — $ 15,254 As of December 31, 2020: Assets: Cash equivalents: Money market funds $ 23,832 $ — $ — 23,832 Short-term marketable securities: Corporate debt securities — 250 — 250 We primarily use the market approach to determine the fair value of our financial instruments. The fair value of our current assets and liabilities, including accounts receivable and accounts payable approximates the carrying value due to the short-term nature of these balances. We have currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with U.S. GAAP. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURINGS In August 2020, we executed a restructuring plan to make the operation of the Company more efficient (the "August 2020 Plan"). The August 2020 Plan included an approximately 14% reduction in workforce, primarily in the areas of operations, research and development, sales and marketing. In January 2020, we executed a restructuring plan to make the operation of the Company more efficient (the "January 2020 Plan"). The January 2020 Plan included an approximately4% reduction in workforce, primarily in the areas of research and development and sales. Total restructuring expense included in our statement of operations for the years ended December 31, 2021 and 2020 is comprised of the following: Year Ended December 31, 2021 2020 Cost of revenue — restructuring: Employee severance and benefits $ — $ 173 — 173 Operating expenses — restructuring: Employee severance and benefits $ — $ 2,041 — 2,041 Total restructuring expense $ — $ 2,214 The following is a rollforward of the accrued liabilities related to restructuring for the year ended December 31, 2021: Balance as of December 31, 2020 Expensed Payments Balance as of December 31, 2021 Employee severance and benefits $ 630 $ — $ (630) $ — Accrued costs related to restructuring $ 630 $ — $ (630) $ — |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | LEASES We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, other current liabilities, and operating lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating lease ROU assets also exclude lease incentives received. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of 1 year to 6 years. Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows: Year Ended Year Ended December 31, 2021 December 31, 2020 Operating lease cost $ 2,622 $ 2,721 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,809 2,816 Leased assets obtained in exchange for new operating lease liabilities 629 3,535 Weighted average remaining lease term (in years) 2.95 3.76 Weighted average discount rate 4.96 % 4.99 % Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Lease Payments Years ending December 31: 2022 $ 2,652 2023 1,376 2024 877 2025 364 2026 364 Thereafter 91 Total operating lease payments 5,724 Less imputed interest (432) Total operating lease liabilities $ 5,292 As of December 31, 2021, the Company had no operating lease liabilities that had not commenced. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our principal revenue generating activities consist of the following: Product Sales - We sell integrated circuit products, also known as “chips” or “ICs”, based upon a customer purchase order, which includes a fixed price per unit. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods, and not evaluate whether these activities are promised services to the customer. We generally satisfy our single performance obligation upon shipment of the goods to the customer and recognize revenue at a point in time upon shipment of the underlying product. Our shipments are subject to limited return rights subject to our limited warranty for our products sold. In addition, we may provide other credits to certain customers pursuant to price protection and stock rotation rights, all of which are considered variable consideration when estimating the amount of revenue to recognize. We use the “most likely amount” method to determine the amount of consideration to which we are entitled. Our estimate of variable consideration is reassessed at the end of each reporting period based on changes in facts and circumstances. Historically, returns and credits have not been material. Engineering Services - We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our engineering services agreements (“ESAs”) at contract inception. The ESA generally includes project deliverables specified by the customer. The performance obligations in the ESA are generally combined into one deliverable, with the pricing for services stated at a fixed amount. Services provided under the ESA generally result in the transfer of control over time. We recognize revenue on ESAs based on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. ESAs could include substantive customer acceptance provisions. In ESAs that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance. License Revenue - On occasion, we derive revenue from the license of our internally developed intellectual property ("IP"). Additionally, for certain IP license agreements, royalties are collected as customers sell their own products that incorporate our IP. IP licensing agreements that we enter into generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Fees under these agreements generally include license fees or royalty fees relating to our IP and support service fees, resulting in two performance obligations. We evaluate each performance obligation, which generally results in the transfer of control at a point in time for the license fee and over time for support services. Royalties are recognized as revenue is earned, generally when the customer sells its products that incorporate our IP. Other - From time-to-time, we enter into arrangements for other revenue generating activities, such as providing technical support services to customers through technical support agreements. In each circumstance, we evaluate such arrangements for our performance obligations which generally results in the transfer of control for such services over time. Historically, such arrangements have not been material to our operating results. The following table provides information about disaggregated revenue based on the preceding categories for the years ended December 31, 2021 and 2020: Year ended December 31, 2021 2020 IC sales $ 50,807 $ 39,205 Engineering services, license and other 4,295 1,650 Total revenues $ 55,102 $ 40,855 For segment information, including revenue by geographic region, see "Note 14. Segment Information". Our contract balances include accounts receivable, deferred revenue and our liability for warranty returns. For information concerning these contract balances, see "Note 3. Balance Sheet Components". Payment terms and conditions for goods and services provided vary by contract; however, payment is generally required within 30 to 60 days of invoicing. |
Interest Income (Expense) and O
Interest Income (Expense) and Other, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Interest Expense and Other, Net | INTEREST INCOME AND OTHER, NET Interest income and other, consists of the following: Year Ended December 31, 2021 2020 Other income $ 246 $ 161 Interest income 211 87 Interest expense — (239) Total interest income and other, net $ 457 $ 9 |
Research and Development
Research and Development | 12 Months Ended |
Dec. 31, 2021 | |
Research and Development [Abstract] | |
Research and Development | RESEARCH AND DEVELOPMENT During the third quarter of 2021, we entered into a best-efforts co-development agreement with a customer to defray a portion of the research and development expenses we expect to incur in connection with our development of an integrated circuit product. We expect our development costs to exceed the amounts received from the customer, and although we expect to sell units of the product to the customer, there is no commitment or agreement from the customer for such sales at this time. Additionally, we retain ownership of any modifications or improvements to our pre-existing intellectual property and may use such improvements in products sold to other customers. Under the co-development agreement, $5,800 was payable by the customer within 60 days of the date of the agreement and three additional payments of $2,200, $1,300 and $1,300 are each payable upon completion of certain development milestones. As amounts become due and payable, they are offset against research and development expense on a pro rata basis. During the year ended December 31, 2021, we recognized an offset to research and development expense of $3,962. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Current and Deferred Income Tax Expense Domestic and foreign pre-tax loss is as follows: Year Ended December 31, 2021 2020 Domestic $ (10,967) $ (25,590) Foreign (8,578) (341) Domestic and foreign pre-tax loss $ (19,545) $ (25,931) Income tax expense attributable to operations is comprised of the following: Year Ended December 31, 2021 2020 Current: Federal $ (27) $ (74) State 19 3 Foreign 643 643 Total current 635 572 Deferred: Foreign (768) 26 Total deferred (768) 26 Income tax expense (benefit) $ (133) $ 598 The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2021 2020 Federal statutory rate 21 % 21 % Corporate restructuring (38) — Change in valuation allowance 24 — Expiration of tax attributes (6) (14) Tax contingencies, net of reversals (5) — Impact of foreign earnings 3 (7) Permanent items 4 (1) Research and development credits 2 1 Stock-based compensation (1) (2) Other (3) — Effective income tax rate 1 % (2) % Deferred Tax Assets, Liabilities and Valuation Allowance Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows: December 31, 2021 2020 Deferred tax assets: Research and experimentation credit and deduction carryforwards $ 62,771 $ 65,772 Net operating loss carryforwards 45,985 50,917 Depreciation and amortization 5,664 2,282 Deferred stock-based compensation 994 1,158 Reserves and accrued expenses 992 145 Foreign tax credit carryforwards 208 275 Other 1,451 2,074 Total gross deferred tax assets 118,065 122,623 Deferred tax liabilities: Other (812) (1,526) Total gross deferred tax liabilities (812) (1,526) Less valuation allowance (116,372) (120,981) Net deferred tax assets $ 881 $ 116 We continue to record a full valuation allowance against our U.S. net deferred tax assets as of December 31, 2021 and 2020, as it is not more likely than not that we will realize a benefit from these assets in a future period. In the third quarter of 2021, we recorded a valuation allowance against our net deferred tax assets in China in conjunction with the restructuring of our intercompany agreements and intellectual property. In the fourth quarter of 2021, we recognized $558 of our Canadian net deferred tax assets as we are more likely than not to realize a benefit from these assets in a future period. We have not provided a valuation allowance against our other foreign net deferred tax assets as we have concluded it is more likely than not that we will realize a benefit from these assets in a future period because our subsidiaries in these jurisdictions are cost-plus taxpayers. The net valuation allowance decreased $4,609 for the year ended December 31, 2021 and decreased $24 for the year ended December 31, 2020. As of December 31, 2021, we had federal, state and foreign net operating loss carryforwards of $166,448, $6,756 and $39,450 respectively, which will begin to expire in 2022 with $31,705 of our federal net operating loss carryforward lasting indefinitely. As of December 31, 2021, we had available federal, state and foreign research and experimentation tax credit carryforwards of $7,823, $4,993, and $24,252 respectively. The federal and state tax credits will begin expiring in 2022 while the foreign credits have an indefinite life. In addition, our Canadian subsidiary has unclaimed scientific and experimental expenditures to be carried forward and applied against future income in Canada of approximately $120,906. We have a general foreign tax credit of $118 which will begin to expire in 2022. Our ability to utilize our federal net operating losses may be limited by Section 382 of the Internal Revenue Code of 1986, as amended, which imposes an annual limit on the ability of a corporation that undergoes an "ownership change" to use its net operating loss carryforwards to reduce its tax liability. An ownership change is generally defined as a greater than 50% increase in equity ownership by 5% shareholders in any three-year period. We are not indefinitely reinvested in the earnings of our subsidiaries in Canada, Japan and Taiwan and have accrued tax on the future repatriation of cash for jurisdictions where withholding taxes would apply . We are no longer indefinitely reinvested in our China subsidiary and have reversed our previous accrual of $620 as a result of changes to our operating plan and implementation of our China intellectual property strategy. Uncertain Tax Positions We have recorded tax liabilities to address potential exposures involving positions that could be challenged by taxing authorities. As of December 31, 2021, the amount of our uncertain tax positions was a liability of $2,493 and a reduction to deferred tax assets of $1,254. As of December 31, 2020, the amount of our uncertain tax positions was a liability of $1,610 and a reduction to deferred tax assets of $1,189. The following is a summary of the change in our liability for uncertain tax positions and interest and penalties: 2021 2020 Uncertain tax positions: Balance at beginning of year $ 2,711 $ 2,569 Accrual for positions taken in a prior year 825 24 Accrual for positions taken in current year 121 192 Reversals due to lapse of statute of limitations (11) (74) Balance at end of year $ 3,646 $ 2,711 Interest and penalties: Balance at beginning of year $ 88 $ 85 Accrual for positions taken in prior year 16 18 Accrual for positions taken in current year — — Reversals due to lapse of statute of limitations (3) (15) Balance at end of year $ 101 $ 88 During the years ended December 31, 2021 and 2020 we recognized $16 and $18, respectively, of interest and penalties in income tax expense in our consolidated statements of operations. We file income tax returns in the U.S. and various foreign jurisdictions. A number of years may elapse before an uncertain tax position is resolved by settlement or statute of limitations. Settlement of any particular position could require the use of cash. If the uncertain tax positions we have accrued for are sustained by the taxing authorities in our favor, the reduction of the liability will reduce our effective tax rate. We reasonably expect reductions in the liability for unrecognized tax benefits and interest and penalties of approximately $97 within the next twelve months due to the expiration of statutes of limitation in federal, state and foreign jurisdictions. We are no longer subject to U.S. federal, state, and foreign examinations for years before 2018, 2017 and 2014, respectively. Our net operating loss and tax credit carryforwards from all years may be subject to adjustment for three years following the year in which utilized. We do not anticipate that any potential tax adjustments will have a significant impact on our financial position or results of operations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Royalties We license technology from third parties and have agreed to pay certain suppliers a royalty based on the number of chips sold or manufactured, the net sales price of the chips containing the licensed technology or a fixed non-cancelable fee. Royalty expense is recognized based on our estimated average unit cost for royalty contracts with non-cancelable prepayments and the stated contractual per unit rate for all other agreements. Royalty expense was $225 and $242 for the years ended December 31, 2021 and 2020, respectively, which is included in cost of revenue in our consolidated statements of operations. 401(k) Plan We sponsor a 401(k) plan for eligible employees. Participants may defer a percentage of their annual compensation on a pre-tax basis, not to exceed the dollar limit that is set by law. A discretionary matching contribution by the Company is allowed and is equal to a uniform percentage of the amount of salary reduction elected to be deferred, which percentage will be determined each year by the Company. We made contributions of $55 and $48 to the 401(k) plan during the years ended December 31, 2021 and 2020, respectively. Software licenses We acquire rights to use certain software engineer design tools under software licenses. As of December 31, 2021, future minimum payments under non-cancelable software licenses are as follows: Year Ending December 31, Software licenses 2022 $ 1,133 2023 365 1,498 Less: Interest component (65) Present value of minimum software license payments 1,433 Less: Current portion (1,077) Long-term portion of obligations $ 356 Other Contractual Obligation As part of the Acquisition, we acquired debt associated with an agreement with the Government of Canada called Technology Partnerships Canada ("TPC"). As part of the TPC agreement, ViXS Systems Inc. was provided funding to assist in research and development expenses of which a portion was later required to be repaid because the conditions for repayment were met. The scheduled payments are made on a quarterly basis and end in January 2024. $504 and $499 are included in accrued liabilities and current portion of long-term liabilities in our consolidated balance sheet as of December 31, 2021 and 2020, respectively. $57 and $268 are included in long-term liabilities, net of current portion in our consolidated balance sheets as of December 31, 2021 and 2020, respectively. Contract Manufacturers In the normal course of business, we commit to purchase products from our contract manufacturers to be delivered within the next 90 days. In certain situations, should we cancel an order, we could be required to pay cancellation fees. Such obligations could impact our immediate results of operations but would not materially affect our business. Indemnifications Certain of our agreements include limited indemnification provisions for claims from third-parties relating to our intellectual property. It is not possible for us to predict the maximum potential amount of future payments or indemnification costs under these or similar agreements due to the conditional nature of our obligations and the unique facts and circumstances involved in each particular agreement. We have not made any payments under these agreements in the past, and as of December 31, 2021, we have not incurred any material liabilities arising from these indemnification obligations. In the future, however, such obligations could immediately impact our results of operations but are not expected to materially affect our business. Legal Proceedings We are subject to legal matters that arise from time to time in the ordinary course of our business. Although we currently believe that resolving such matters, individually or in the aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows, these matters are subject to inherent uncertainties and our view of these matters may change in the future. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share amounts are computed based on the weighted average number of common shares outstanding. Diluted weighted average shares outstanding include the weighted average number of common shares outstanding plus potentially dilutive common shares outstanding during the period. The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, 2021 2020 Net loss $ (19,412) $ (26,529) Less: Net income attributable to redeemable non-controlling interest (409) — Less: Net income attributable to certain entities owned by employees (198) — Net loss attributable to Pixelworks Inc. - for purposes of earnings per share calculation $ (20,019) $ (26,529) Weighted average shares outstanding - basic and diluted 52,509 40,712 Net loss attributable to Pixelworks, Inc. per share - basic and diluted $ (0.38) $ (0.65) Basic and diluted earnings (loss) per share was computed by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period. The numerator adjustments include an allocation of PWSH income to the redeemable non-controlling interests and the employee owned entities. The equity interest associated with the employee-owned entities are considered participating securities at PWSH and will be allocated income, however, they are not required to fund losses, and therefore, no allocations of losses will be made to the employee owned entities in periods of loss at PWSH. Potentially dilutive common shares from employee equity incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units, and the assumed issuance of common stock under the employee stock purchase plan. The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Year Ended December 31, 2021 2020 Employee equity incentive plans 3,832 4,148 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 50,000,000 shares of preferred stock with a par value of $0.001 per share. The Board of Directors is authorized to fix or alter the rights, preferences, privileges and restrictions granted to, or imposed on, each series of preferred stock. There were no shares of preferred stock issued as of December 31, 2021 and 2020. Common Stock The Company is authorized to issue 250,000,000 shares of common stock with a par value of $0.001 per share. Shareholders of common stock have unlimited voting rights and are entitled to receive the net assets of the Company upon dissolution, subject to the rights of the preferred shareholders, if any. Equity Offering On December 14, 2020, we completed the sale of 4,900,000 shares of common stock in an underwritten registered offering. On December 16, 2020, an additional 735,000 shares were issued pursuant to the 30-day over-allotment option exercised by the underwriter. With the over-allotment shares, a total of 5,635,000 shares of common stock were sold in the offering at a price to the public of $2.45 per share. Net proceeds to the Company, after deducting underwriting discounts, commissions, and other expenses, were approximately $12,743. Private Placement Investment On December 7, 2020, we completed a private placement of 724,288 shares of common stock to a certain accredited investor at a purchase price of $2.071 per share. On December 15, 2020, we completed a private placement of 2,475,712 shares of common stock to a certain accredited investor at a purchase price of $2.071. Net proceeds to the Company, after deducting commissions and other expenses, were approximately $6,210. At the Market Offering On June 5, 2020, we entered into a sales agreement (the "Sales Agreement") with Cowen and Company, LLC ("Cowen"), pursuant to which we may issue and sell shares of the Company's common stock, par value $0.001 per share, having an aggregate offering price of up to $25,000, from time to time, through an "at the market" equity offering program under which Cowen will act as sales agent. Under the Sales Agreement, Cowen may sell the shares by methods deemed to be an "at the market offering" as defined in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers’ transactions on the Nasdaq Global Market or on any other existing trading market for the common stock or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise directed by the Company. We pay Cowen a commission equal to three percent (3.0%) of the gross sales proceeds of any common stock sold through Cowen under the Sales Agreement. The Sales Agreement may be terminated by us upon prior notice to Cowen or by Cowen upon prior notice to us, or at any time under certain circumstances, including but not limited to the occurrence of a material adverse change in the Company. We are not obligated to sell any shares under the Sales Agreement. During the year ended December 31, 2020, we sold an aggregate of 1,747,466 shares of our common stock under this at the market offering, resulting in aggregate net proceeds to us of approximately $4,429. During the year ended December 31, 2021, we sold an aggregate of 61,018 shares of our common stock under this at the market offering, resulting in aggregate net proceeds to us of approximately $321. Employee Equity Incentive Plans On May 23, 2006, our shareholders approved the adoption of the Pixelworks, Inc. 2006 Stock Incentive Plan (the "2006 Plan"). The 2006 Plan has since been amended and restated on certain occasions, most recently on May 10, 2021 when our shareholders approved an increase to the total number of authorized shares to 22,683,333 shares. As of December 31, 2021, 2,105,497 shares were available for grant under the 2006 Plan. Stock Options The contractual life of newly issued stock option awards is six years. Our new hire vesting schedule provides that each option becomes exercisable at a rate of 25% on the first anniversary date of the grant and 2.083% on the last day of every month thereafter for a total of 36 additional increments. Our merit vesting schedule provides that merit-type awards become exercisable monthly over a period of three years. The following is a summary of stock option activity: Number of Weighted Options outstanding as of December 31, 2020: 719,067 $ 2.53 Granted — — Exercised (352,375) 2.47 Canceled and forfeited (500) 4.56 Expired (11,583) 4.51 Options outstanding as of December 31, 2021: 354,609 $ 2.52 The following table summarizes information about options outstanding as of December 31, 2021: Options Outstanding Options Exercisable Range of exercise prices Number Weighted Weighted Number Weighted $2.00 - $2.00 237,500 4.79 $ 2.00 159,500 $ 2.00 2.46 - 2.46 109,109 1.67 3.40 97,521 3.33 2.79- 6.05 8,000 2.08 6.05 7,667 6.05 $2.00 - $6.05 354,609 3.77 $ 2.52 264,688 $ 2.61 During the years ended December 31, 2021 and 2020 the total intrinsic value of options exercised was $445 and $28, respectively, for which no income tax benefit has been recorded because a full valuation allowance has been provided for our U.S. deferred tax assets. As of December 31, 2021, options outstanding had a total intrinsic value of $684. Options outstanding that have vested and are expected to vest as of December 31, 2021 are as follows: Number of Weighted Weighted Aggregate Vested 264,688 $ 2.61 3.48 $ 491 Expected to vest 88,517 2.26 4.64 190 Total 353,205 $ 2.52 3.77 $ 681 Restricted Stock The 2006 Plan provides for the issuance of restricted stock, including restricted stock units. During the years ended December 31, 2021 and 2020 we granted 2,123,844 and 2,137,317 shares, respectively, of restricted stock with a weighted average grant date fair value of $3.70 and $3.42 per share, respectively. The following is a summary of restricted stock activity: Number of Weighted average grant date fair value Unvested at December 31, 2020: 3,176,605 $ 3.68 Granted 2,123,844 3.70 Vested (1,715,624) 3.67 Canceled (268,790) 3.84 Unvested at December 31, 2021: 3,316,035 $ 3.69 Expected to vest after December 31, 2021 3,090,192 $ 3.68 Employee Stock Purchase Plans On May 18, 2010, our shareholders approved the adoption of the 2010 Pixelworks, Inc. Employee Stock Purchase Plan (the "ESPP") for U.S. employees and for certain foreign subsidiary employees. The ESPP provides for separate offering periods commencing on February 1 and August 1, with the first offering period beginning August 1, 2010. Each offering period continues for a period of 18 months with purchases every six months. Each eligible employee may purchase up to 3,000 shares of stock on each purchase date, with a maximum annual purchase amount of $25. The purchase price is equal to 85% of the lesser of the fair market value of the shares on the offering date or on the purchase date. On May 15, 2020 the ESPP was amended when our shareholders approved an increase to the total number of shares of common stock reserved for issuance to 3,300,000. During the years ended December 31, 2021 and 2020, we issued 159,177 and 202,019 shares, respectively for proceeds of $411 and $529, respectively, under the ESPP. Stock-Based Compensation Expense The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2021 2020 Stock Option Plans: Risk free interest rate 0 % 2.00 % Expected dividend yield 0 % 0 % Expected term (in years) 0 3.75 Volatility 0 % 64 % Employee Stock Purchase Plan: Risk free interest rate 0.12 % 0.79 % Expected dividend yield 0 % 0 % Expected term (in years) 1.17 1.05 Volatility 75 % 65 % There were no options granted during the year ended December 31, 2021. The weighted average fair value of options granted during the year ended December 31, 2020 was $0.93. The risk free interest rate is estimated using an average of treasury bill interest rates. The expected dividend yield is zero as we have not paid any dividends to date and do not expect to pay dividends in the future. Expected volatility is estimated based on the historical volatility of our common stock over the expected term as this represents our best estimate of future volatility. The contractual life of newly issued stock options is six years, and we have elected to use the "simplified method" to estimate expected term. Under the simplified method, an option's expected term is calculated as the average of its vesting period and original contractual life. The expected term of ESPP purchase rights is based on the estimated weighted average time to purchase. As of December 31, 2021, unrecognized stock-based compensation expense is $5,560, which is expected to be recognized as stock-based compensation expense over a weighted average period of 1.12 years. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We have identified a single operating segment: the design and development of ICs for use in electronic display devices. The majority of our assets are located in the United States and China. Geographic Information Revenue by geographic region, was as follows: Year Ended December 31, 2021 2020 Japan $ 27,001 $ 26,554 China 23,977 8,935 Taiwan 2,142 1,668 U.S. 1,624 3,057 Europe 242 333 Korea 116 308 $ 55,102 $ 40,855 Significant Customers The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented more than 10% of revenue in at least one of the periods presented, is as follows: Year Ended December 31, 2021 2020 Distributors: All distributors 56 % 49 % Distributor A 27 % 7 % Distributor B 13 % 23 % End Customers: 1 Top five end customers 76 % 58 % End customer A 35 % 40 % End customer B 22 % 5 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. Each of the following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: December 31, 2021 2020 Account X 41 % 39 % Account Y 27 % 20 % Account Z 15 % 7 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Quarterly Period Ended March 31 June 30 September 30 December 31 2021 Revenue, net $ 9,270 $ 14,050 $ 15,196 $ 16,586 Gross profit 3,725 7,110 7,985 8,873 Loss from operations (7,914) (4,457) (3,904) (3,727) Loss before income taxes (7,858) (4,275) (3,850) (3,562) Net loss attributable to Pixelworks Inc. (8,075) (4,382) (4,073) (3,291) Net loss attributable to Pixelworks Inc. per share - basic and diluted (0.16) (0.08) (0.08) (0.06) 2020 Revenue, net $ 13,774 $ 9,253 $ 8,190 $ 9,638 Gross profit 6,775 5,049 3,976 4,385 Loss from operations (5,277) (6,421) (8,137) (6,901) Loss before income taxes (5,223) (6,445) (8,165) (6,098) Net loss attributable to Pixelworks Inc. (5,399) (6,552) (8,139) (6,439) Net loss attributable to Pixelworks Inc. per share - basic and diluted (0.14) (0.17) (0.20) (0.15) |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest and Equity Interest of Pwsh Sold to Employees | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest and Equity Interest of Pwsh Sold to Employees | REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY INTEREST OF PWSH SOLD TO EMPLOYEES During the third quarter of 2021, Pixelworks, Inc. and our subsidiary, PWSH, entered into a Capital Increase Agreement with certain private equity and strategic investors based in China (collectively, the “Investors”) and certain entities which collectively are owned by approximately 75% of the employees of PWSH and its subsidiaries (collectively, the “ESOP”). The ESOP entities do not qualify as Employee Share Ownership Programs under IRC 4975(e)(7), but function as a qualified ESOP and hold an equity ownership in trust for employees. The Investors invested approximately $30,844 in exchange for a redeemable non-controlling equity interest of 10.45% of PWSH. The Investors will have a liquidation preference in PWSH, a right to co-sell their interest in PWSH along with the Company on the same terms and conditions as the Company, a right to participate on a pro rata basis in any future financing rounds of PWSH, and the Company’s agreement while it remains an owner of PWSH and for two (2) years thereafter to not compete with the business of PWSH, nor solicit or otherwise cause any of PWSH’s core employees or customers to end their relationship with PWSH. These rights all expire upon initial public offering on the STAR Market. Each Investor has the right to require PWSH to redeem the entire equity interest held by such Investor, at the original purchase price paid plus 3% annual interest, if PWSH does not consummate an initial public offering on the STAR Market on or before June 30, 2024. Based on this contingency, the initial carrying amount of the redeemable non-controlling interests was recorded at fair value on the date of issuance of PWSH equity interests, net of issuance costs and presented in temporary equity on the condensed consolidated balance sheets. The Company has elected to accrete changes in the redemption value of the redeemable non-controlling interests from the issuance date through the earliest redemption date of June 30, 2024 using the interest method. Because the redeemable non-controlling interest is denominated in RMB, it will be revalued to USD at the end of each reporting period, with the changes in carrying value attributable to foreign currency being reflected within accumulated other comprehensive loss on the condensed consolidated balance sheets. The ESOP entities invested approximately $12,329 in exchange for a redeemable non-controlling equity interest representing 5.95% of PWSH, which includes a discount of 30% from the valuation paid by the Investors. Each of the ESOP entities has the right to require PWSH to redeem the entire equity interest held by such ESOP entities at the original purchase price paid plus 5% annual interest, if PWSH does not achieve its Listing on or before December 31, 2024. Because the ESOP entities are owned by employees of PWSH and its subsidiaries and employees are required to render service until either the initial public offering on the STAR Market or repurchase date, the equity interest owned by the ESOP entities will be accounted for under ASC 718 (Compensation - Stock Compensation). The initial carrying amount of the investment has been recorded as a long-term deposit liability on the condensed consolidated balance sheets as the initial public offering cannot be considered probable at this time. We will recognize the periodic interest component of the award as compensation expense and accrete the long-term deposit liability to its redemption value as of December 31, 2024. Because the long-term deposit liability is denominated in RMB and is considered a monetary liability as defined in ASC 255 (Changing Prices), it will be revalued to USD at the end of each reporting period, with the changes in carrying value recorded as foreign currency gain/loss in our condensed consolidated statements of operations. The process of going public on the STAR Market includes several periods of review and is therefore a lengthy process. There can be no assurances that PWSH will complete the Listing by June 30, 2024, or at all. In the event Pixelworks, Inc. is required to redeem the entire equity interest held by the Investors or the ESOP entities, we may be required to seek additional capital in order to redeem their PWSH shares and there would be no assurances that such capital would be available on terms acceptable to us, if at all. Any redemptions could have a material adverse effect on our business, financial condition and results of operations. The listing of PWSH on China's STAR Market will not change our status as a U.S. public company. The components of the change in redeemable non-controlling interests for the year ended December 31, 2021 are presented in the following table (in thousands): Carrying Value of Redeemable NCI as of January 1, 2021 $ — Increase in non-controlling interest due to issuance of stock 30,844 Closing costs incurred (868) Net income attributable to redeemable non-controlling interest 409 Effect of foreign currency translation attributable to redeemable non-controlling interest 520 Carrying Value of Redeemable NCI as of December 31, 2021 $ 30,905 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires us to make estimates and judgments that affect amounts reported in the financial statements and accompanying notes. Our significant estimates and judgments include those related to revenue recognition, valuation of excess and obsolete inventory, lives and recoverability of equipment and other long-lived assets, valuation of goodwill, stock-based compensation and income taxes. The actual results experienced could differ materially from our estimates. |
Cash and Cash Equivalents, Policy | We classify all cash and highly liquid investments with original maturities of three months or less at the date of purchase as cash and cash equivalents. Cash equivalents, which as of December 31, 2021 and 2020 consisted of U.S. denominated money market funds, totaled $15,254 and $23,832 as of December 31, 2021 and 2020, respectively. |
Marketable Securities, Policy | Our investments in marketable securities are classified as available-for-sale. Available-for-sale securities are stated at fair value based on quoted market prices with unrealized holding gains or losses, net of tax, included in accumulated other comprehensive income, a component of shareholders’ equity. The cost of securities sold is based on the specific identification method. |
Accounts Receivable, Policy | Accounts receivable are recorded at invoiced amount and do not bear interest when recorded or accrue interest when past due. We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of our customers to make required payments. At the end of each reporting period, we estimate the allowance for doubtful accounts based on an account-by-account risk analysis of outstanding receivable balances. The determination to write-off specific accounts receivable balances is made based on the likelihood of collection and past due status. Past due status is based on invoice date and terms specific to each customer. |
Inventories, Policy | 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). |
Property and Equipment, Policy | Property and equipment are stated at cost. Depreciation and amortization is calculated on a straight-line basis over the estimated useful life of the assets which are generally as follows: Software Lesser of 3 years or contractual license term Equipment, furniture and fixtures 2 years Tooling 2 to 4 years Leasehold improvements Lesser of lease term or estimated useful life The cost of property and equipment repairs and maintenance is expensed as incurred. |
Licensed Technology, Policy | We have capitalized licensed technology assets in other long-term assets. These assets are stated at cost and are amortized on a straight-line basis over the term of the license or the estimated life of the asset, if the license is not contractually limited, which is generally two |
Useful Lives and Recoverability of Equipment and Other Long-Lived Assets, Policy | If there is an indicator of impairment, we prepare an estimate of future, undiscounted cash flows expected to result from the use of each asset and its eventual disposition. If these cash flows are less than the carrying value of the asset, we adjust the carrying amount of the asset to its estimated fair value. |
Goodwill, Policy | Goodwill is not amortized, rather it is tested, at least annually, for impairment at a reporting unit level. Impairment of goodwill is the condition that exists when the carrying amount of a reporting unit that includes goodwill exceeds its fair value. A goodwill impairment loss is recognized for the amount that the carrying amount of the reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If the fair value of a reporting unit exceeds the carrying amount, goodwill of the reporting unit is not considered impaired. We evaluate impairment using the guidance set forth in FASB Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04") which states that an entity may first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test shall be used to identify goodwill impairment and measure the amount of goodwill impairment loss to be recognized. An entity has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to the quantitative goodwill impairment test. Accordingly, we have elected to bypass the qualitative assessment and proceed directly to the quantitative goodwill impairment test. We tested goodwill for impairment under the quantitative goodwill impairment test during the fourth quarter of 2021 and concluded that goodwill was not impaired. |
Warranty Program, Policy | We warrant that our products will be free from defects in material and workmanship for a period of twelve months from delivery. Warranty repairs are guaranteed for the remainder of the original warranty period. Our warranty is limited to repairing or replacing products, or refunding the purchase price. At the end of each reporting period, we estimate a reserve for warranty returns based on historical experience and knowledge of any applicable events or transactions. The reserve for warranty returns is included in accrued liabilities in our consolidated balance sheets. |
Share-Based Compensation, Policy | We currently sponsor a stock incentive plan that allows for issuance of employee stock options and restricted stock awards, including restricted stock units. We also have an employee stock purchase plan for all eligible employees. The fair value of share-based payment awards is expensed straight-line over the requisite service period, which is generally the vesting period, for the entire award. Additionally, any modification of an award that increases its fair value will require us to recognize additional expense. The fair value of our stock option grants and purchase rights under our employee stock purchase plan are estimated as of the grant date using the Black-Scholes option pricing model which is affected by our estimates of the risk free interest rate, our expected dividend yield, expected term and the expected share price volatility of our common shares over the expected term. The fair value of our restricted stock awards are based on the market value of our stock on the date of grant. |
Research and Development, Policy | Costs associated with research and development activities are expensed as incurred, except for items with alternate future uses which are capitalized and depreciated over their estimated useful lives. On occasion, we enter into co-development arrangements with current or prospective customers to defray a portion of the research and development expenses we expect to incur in connection with our development of an IC product. As amounts become due and payable, they are offset against research and development expense on a pro-rata basis. |
Income Taxes, Policy | We account for income taxes under the asset and liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between financial statement carrying amounts and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We establish a valuation allowance to reduce deferred tax assets if it is "more likely than not" that a portion or all of the asset will not be realized in future tax returns. An uncertain tax position represents treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. Until these positions are sustained by the taxing authorities, we do not recognize the tax benefits resulting from such positions and report the tax effects for uncertain tax positions in our consolidated balance sheets. |
Fair Value of Financial Instruments, Policy | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Three levels of inputs may be used to measure fair value: Level 1: Valuations based on quoted prices in active markets for identical assets and liabilities. Level 2: Valuations based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Valuations based on unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. |
Revenue, Policy | Revenue is recognized when control of the promised good or service is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Our principal revenue generating activities consist of the following: Product Sales - We sell integrated circuit products, also known as “chips” or “ICs”, based upon a customer purchase order, which includes a fixed price per unit. We have elected to account for shipping and handling as activities to fulfill the promise to transfer the goods, and not evaluate whether these activities are promised services to the customer. We generally satisfy our single performance obligation upon shipment of the goods to the customer and recognize revenue at a point in time upon shipment of the underlying product. Our shipments are subject to limited return rights subject to our limited warranty for our products sold. In addition, we may provide other credits to certain customers pursuant to price protection and stock rotation rights, all of which are considered variable consideration when estimating the amount of revenue to recognize. We use the “most likely amount” method to determine the amount of consideration to which we are entitled. Our estimate of variable consideration is reassessed at the end of each reporting period based on changes in facts and circumstances. Historically, returns and credits have not been material. Engineering Services - We enter into contracts for professional engineering services that include software development and customization. We identify each performance obligation in our engineering services agreements (“ESAs”) at contract inception. The ESA generally includes project deliverables specified by the customer. The performance obligations in the ESA are generally combined into one deliverable, with the pricing for services stated at a fixed amount. Services provided under the ESA generally result in the transfer of control over time. We recognize revenue on ESAs based on the proportion of labor hours expended to the total hours expected to complete the contract performance obligation. ESAs could include substantive customer acceptance provisions. In ESAs that include substantive customer acceptance provisions, we recognize revenue upon customer acceptance. License Revenue - On occasion, we derive revenue from the license of our internally developed intellectual property ("IP"). Additionally, for certain IP license agreements, royalties are collected as customers sell their own products that incorporate our IP. IP licensing agreements that we enter into generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Fees under these agreements generally include license fees or royalty fees relating to our IP and support service fees, resulting in two performance obligations. We evaluate each performance obligation, which generally results in the transfer of control at a point in time for the license fee and over time for support services. Royalties are recognized as revenue is earned, generally when the customer sells its products that incorporate our IP. Other - From time-to-time, we enter into arrangements for other revenue generating activities, such as providing technical support services to customers through technical support agreements. In each circumstance, we evaluate such arrangements for our performance obligations which generally results in the transfer of control for such services over time. Historically, such arrangements have not been material to our operating results. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Accounts Receivable, Net | Accounts receivable consists of the following: December 31, 2021 2020 Accounts receivable, gross $ 8,744 $ 4,713 Allowance for doubtful accounts (36) (41) Accounts receivable, net $ 8,708 $ 4,672 |
Allowance for Doubtful Accounts | The following is a summary of the change in our allowance for doubtful accounts: Year Ended December 31, 2021 2020 Balance at beginning of year $ 41 $ 23 Additions charged (reductions credited) (5) 18 Balance at end of year $ 36 $ 41 |
Inventories | Inventories consist of the following: December 31, 2021 2020 Finished goods $ 461 $ 1,775 Work-in-process 1,008 670 Inventories $ 1,469 $ 2,445 |
Property and Equipment, Net | Property and equipment consists of the following: December 31, 2021 2020 Equipment, furniture and fixtures $ 9,463 $ 8,889 Tooling 5,749 6,298 Software 5,230 5,711 Leasehold improvements 1,375 1,393 21,817 22,291 Accumulated depreciation and amortization (16,161) (17,188) Property and equipment, net $ 5,656 $ 5,103 |
Schedule of Finite-Lived Intangible Assets | Acquired intangible assets resulting from this transaction consist of the following: December 31, 2021 2020 Developed technology $ 5,050 $ 5,050 Customer relationships 1,270 1,270 Backlog and tradename 410 410 6,730 6,730 Less: accumulated amortization (6,640) (5,523) Acquired intangible assets, net $ 90 $ 1,207 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2021, future estimated amortization expense is as follows: Year ending December 31, 2022 $ 90 |
Accrued Liabilities and Current Portion of Long-Term Liabilities | Accrued liabilities and current portion of long-term liabilities consist of the following: December 31, 2021 2020 Accrued payroll and related liabilities $ 3,490 $ 2,867 Operating lease liability, current 2,439 2,039 Deferred research and development reimbursement 1,838 — Current portion of accrued liabilities for asset financings 1,077 786 Accrued interest payable 361 429 Accrued commissions and royalties 259 474 Deferred revenue 50 179 Accrued costs related to restructuring — 630 Other 4,049 2,048 Accrued liabilities and current portion of long-term liabilities $ 13,563 $ 9,452 |
Liability for Deferred Revenue | The following is a summary of the change in deferred revenue: Year Ended December 31, 2021 2020 Deferred revenue: Balance at beginning of period $ 179 $ 146 Revenue recognized (1,127) (902) Revenue deferred 998 935 Balance at end of period $ 50 $ 179 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Cost Unrealized Gain (Loss) Fair Value Short-term marketable securities: As of December 31, 2020: Corporate debt securities $ 253 $ (3) $ 250 $ 253 $ (3) $ 250 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents information about our assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets as of December 31, 2021 and 2020: Level 1 Level 2 Level 3 Total As of December 31, 2021: Assets: Cash equivalents: Money market funds $ 15,254 $ — $ — $ 15,254 As of December 31, 2020: Assets: Cash equivalents: Money market funds $ 23,832 $ — $ — 23,832 Short-term marketable securities: Corporate debt securities — 250 — 250 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expense by Components | Total restructuring expense included in our statement of operations for the years ended December 31, 2021 and 2020 is comprised of the following: Year Ended December 31, 2021 2020 Cost of revenue — restructuring: Employee severance and benefits $ — $ 173 — 173 Operating expenses — restructuring: Employee severance and benefits $ — $ 2,041 — 2,041 Total restructuring expense $ — $ 2,214 |
Schedule of Accrued Restructuring Liabilities | The following is a rollforward of the accrued liabilities related to restructuring for the year ended December 31, 2021: Balance as of December 31, 2020 Expensed Payments Balance as of December 31, 2021 Employee severance and benefits $ 630 $ — $ (630) $ — Accrued costs related to restructuring $ 630 $ — $ (630) $ — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Supplemental Information Related to Leases | We have operating leases for office buildings and one vehicle. Our leases have remaining lease terms of 1 year to 6 years. Supplemental information related to lease expense and valuation of the ROU assets and lease liabilities was as follows: Year Ended Year Ended December 31, 2021 December 31, 2020 Operating lease cost $ 2,622 $ 2,721 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 2,809 2,816 Leased assets obtained in exchange for new operating lease liabilities 629 3,535 Weighted average remaining lease term (in years) 2.95 3.76 Weighted average discount rate 4.96 % 4.99 % |
Future Minimum Payments Under Non-cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Lease Payments Years ending December 31: 2022 $ 2,652 2023 1,376 2024 877 2025 364 2026 364 Thereafter 91 Total operating lease payments 5,724 Less imputed interest (432) Total operating lease liabilities $ 5,292 As of December 31, 2021, future minimum payments under non-cancelable software licenses are as follows: Year Ending December 31, Software licenses 2022 $ 1,133 2023 365 1,498 Less: Interest component (65) Present value of minimum software license payments 1,433 Less: Current portion (1,077) Long-term portion of obligations $ 356 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue based on the preceding categories for the years ended December 31, 2021 and 2020: Year ended December 31, 2021 2020 IC sales $ 50,807 $ 39,205 Engineering services, license and other 4,295 1,650 Total revenues $ 55,102 $ 40,855 |
Interest Income (Expense) and_2
Interest Income (Expense) and Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | Interest income and other, consists of the following: Year Ended December 31, 2021 2020 Other income $ 246 $ 161 Interest income 211 87 Interest expense — (239) Total interest income and other, net $ 457 $ 9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Domestic and foreign pre-tax loss is as follows: Year Ended December 31, 2021 2020 Domestic $ (10,967) $ (25,590) Foreign (8,578) (341) Domestic and foreign pre-tax loss $ (19,545) $ (25,931) |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense attributable to operations is comprised of the following: Year Ended December 31, 2021 2020 Current: Federal $ (27) $ (74) State 19 3 Foreign 643 643 Total current 635 572 Deferred: Foreign (768) 26 Total deferred (768) 26 Income tax expense (benefit) $ (133) $ 598 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate is as follows: Year Ended December 31, 2021 2020 Federal statutory rate 21 % 21 % Corporate restructuring (38) — Change in valuation allowance 24 — Expiration of tax attributes (6) (14) Tax contingencies, net of reversals (5) — Impact of foreign earnings 3 (7) Permanent items 4 (1) Research and development credits 2 1 Stock-based compensation (1) (2) Other (3) — Effective income tax rate 1 % (2) % |
Schedule of Deferred Tax Assets, Liabilities, and Valuation Allowance | Significant components of our deferred tax assets and liabilities are as follows: December 31, 2021 2020 Deferred tax assets: Research and experimentation credit and deduction carryforwards $ 62,771 $ 65,772 Net operating loss carryforwards 45,985 50,917 Depreciation and amortization 5,664 2,282 Deferred stock-based compensation 994 1,158 Reserves and accrued expenses 992 145 Foreign tax credit carryforwards 208 275 Other 1,451 2,074 Total gross deferred tax assets 118,065 122,623 Deferred tax liabilities: Other (812) (1,526) Total gross deferred tax liabilities (812) (1,526) Less valuation allowance (116,372) (120,981) Net deferred tax assets $ 881 $ 116 |
Summary of Uncertain Tax Positions and Interest and Penalties | The following is a summary of the change in our liability for uncertain tax positions and interest and penalties: 2021 2020 Uncertain tax positions: Balance at beginning of year $ 2,711 $ 2,569 Accrual for positions taken in a prior year 825 24 Accrual for positions taken in current year 121 192 Reversals due to lapse of statute of limitations (11) (74) Balance at end of year $ 3,646 $ 2,711 Interest and penalties: Balance at beginning of year $ 88 $ 85 Accrual for positions taken in prior year 16 18 Accrual for positions taken in current year — — Reversals due to lapse of statute of limitations (3) (15) Balance at end of year $ 101 $ 88 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Disclosure | Future minimum lease payments under non-cancellable leases as of December 31, 2021 were as follows: Operating Lease Payments Years ending December 31: 2022 $ 2,652 2023 1,376 2024 877 2025 364 2026 364 Thereafter 91 Total operating lease payments 5,724 Less imputed interest (432) Total operating lease liabilities $ 5,292 As of December 31, 2021, future minimum payments under non-cancelable software licenses are as follows: Year Ending December 31, Software licenses 2022 $ 1,133 2023 365 1,498 Less: Interest component (65) Present value of minimum software license payments 1,433 Less: Current portion (1,077) Long-term portion of obligations $ 356 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following schedule reconciles the computation of basic and diluted net loss per share (in thousands, except per share data): Year Ended December 31, 2021 2020 Net loss $ (19,412) $ (26,529) Less: Net income attributable to redeemable non-controlling interest (409) — Less: Net income attributable to certain entities owned by employees (198) — Net loss attributable to Pixelworks Inc. - for purposes of earnings per share calculation $ (20,019) $ (26,529) Weighted average shares outstanding - basic and diluted 52,509 40,712 Net loss attributable to Pixelworks, Inc. per share - basic and diluted $ (0.38) $ (0.65) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following shares were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive (in thousands): Year Ended December 31, 2021 2020 Employee equity incentive plans 3,832 4,148 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activity | The following is a summary of stock option activity: Number of Weighted Options outstanding as of December 31, 2020: 719,067 $ 2.53 Granted — — Exercised (352,375) 2.47 Canceled and forfeited (500) 4.56 Expired (11,583) 4.51 Options outstanding as of December 31, 2021: 354,609 $ 2.52 |
Schedue of Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about options outstanding as of December 31, 2021: Options Outstanding Options Exercisable Range of exercise prices Number Weighted Weighted Number Weighted $2.00 - $2.00 237,500 4.79 $ 2.00 159,500 $ 2.00 2.46 - 2.46 109,109 1.67 3.40 97,521 3.33 2.79- 6.05 8,000 2.08 6.05 7,667 6.05 $2.00 - $6.05 354,609 3.77 $ 2.52 264,688 $ 2.61 |
Schedule of Stock Options Outstanding, Vested and Expected to Vest | Options outstanding that have vested and are expected to vest as of December 31, 2021 are as follows: Number of Weighted Weighted Aggregate Vested 264,688 $ 2.61 3.48 $ 491 Expected to vest 88,517 2.26 4.64 190 Total 353,205 $ 2.52 3.77 $ 681 |
Schedule of Restricted Stock Units Activity | The following is a summary of restricted stock activity: Number of Weighted average grant date fair value Unvested at December 31, 2020: 3,176,605 $ 3.68 Granted 2,123,844 3.70 Vested (1,715,624) 3.67 Canceled (268,790) 3.84 Unvested at December 31, 2021: 3,316,035 $ 3.69 Expected to vest after December 31, 2021 3,090,192 $ 3.68 |
Stock-Based Compensation, Valuation Assumptions | The fair value of stock-based compensation was determined using the Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2021 2020 Stock Option Plans: Risk free interest rate 0 % 2.00 % Expected dividend yield 0 % 0 % Expected term (in years) 0 3.75 Volatility 0 % 64 % Employee Stock Purchase Plan: Risk free interest rate 0.12 % 0.79 % Expected dividend yield 0 % 0 % Expected term (in years) 1.17 1.05 Volatility 75 % 65 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Region | Revenue by geographic region, was as follows: Year Ended December 31, 2021 2020 Japan $ 27,001 $ 26,554 China 23,977 8,935 Taiwan 2,142 1,668 U.S. 1,624 3,057 Europe 242 333 Korea 116 308 $ 55,102 $ 40,855 |
Schedule of Revenue from Significant Customers | The percentage of revenue attributable to our distributors, top five end customers, and individual distributors or end customers that represented more than 10% of revenue in at least one of the periods presented, is as follows: Year Ended December 31, 2021 2020 Distributors: All distributors 56 % 49 % Distributor A 27 % 7 % Distributor B 13 % 23 % End Customers: 1 Top five end customers 76 % 58 % End customer A 35 % 40 % End customer B 22 % 5 % 1 End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. |
Schedule of Accounts Receivable Percentages from Significant Customers | Each of the following accounts represented 10% or more of total accounts receivable in at least one of the periods presented: December 31, 2021 2020 Account X 41 % 39 % Account Y 27 % 20 % Account Z 15 % 7 % |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | Quarterly Period Ended March 31 June 30 September 30 December 31 2021 Revenue, net $ 9,270 $ 14,050 $ 15,196 $ 16,586 Gross profit 3,725 7,110 7,985 8,873 Loss from operations (7,914) (4,457) (3,904) (3,727) Loss before income taxes (7,858) (4,275) (3,850) (3,562) Net loss attributable to Pixelworks Inc. (8,075) (4,382) (4,073) (3,291) Net loss attributable to Pixelworks Inc. per share - basic and diluted (0.16) (0.08) (0.08) (0.06) 2020 Revenue, net $ 13,774 $ 9,253 $ 8,190 $ 9,638 Gross profit 6,775 5,049 3,976 4,385 Loss from operations (5,277) (6,421) (8,137) (6,901) Loss before income taxes (5,223) (6,445) (8,165) (6,098) Net loss attributable to Pixelworks Inc. (5,399) (6,552) (8,139) (6,439) Net loss attributable to Pixelworks Inc. per share - basic and diluted (0.14) (0.17) (0.20) (0.15) |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest and Equity Interest of Pwsh Sold to Employees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | The components of the change in redeemable non-controlling interests for the year ended December 31, 2021 are presented in the following table (in thousands): Carrying Value of Redeemable NCI as of January 1, 2021 $ — Increase in non-controlling interest due to issuance of stock 30,844 Closing costs incurred (868) Net income attributable to redeemable non-controlling interest 409 Effect of foreign currency translation attributable to redeemable non-controlling interest 520 Carrying Value of Redeemable NCI as of December 31, 2021 $ 30,905 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)patent | Dec. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of patents held | patent | 335 | |
Foreign currency transaction loss, realized | $ | $ 258 | $ (419) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Cash and cash equivalents) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||
Cash equivalents, at carrying value | $ 15,254 | $ 23,832 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Property and equipment) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Lesser of 3 years or contractual license term |
Equipment, furniture and fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Tooling [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 to 4 years |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Lesser of lease term or estimated useful life |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Licensed Technology) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Years of amortization period of licensed technology, lower limit | 2 years |
Years of amortization period of licensed technology, upper limit | 5 years |
Balance Sheet Components (Accou
Balance Sheet Components (Accounts Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Accounts receivable, gross | $ 8,744 | $ 4,713 | |
Allowance for doubtful accounts | (36) | (41) | $ (23) |
Accounts receivable, net | $ 8,708 | $ 4,672 |
Balance Sheet Components (Allow
Balance Sheet Components (Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts [Roll Forward] | ||
Balance at beginning of year | $ 41 | $ 23 |
Additions charged (reductions credited) | (5) | 18 |
Balance at end of year | $ 36 | $ 41 |
Balance Sheet Components (Inven
Balance Sheet Components (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 461 | $ 1,775 |
Work-in-process | 1,008 | 670 |
Inventories | $ 1,469 | $ 2,445 |
Balance Sheet Components (Inv_2
Balance Sheet Components (Inventories) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||
Inventory write-downs | $ 488 | $ 95 |
Sale of previously written-down inventory | $ 9 | $ 29 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Equipment, furniture and fixtures | $ 9,463 | $ 8,889 |
Tooling | 5,749 | 6,298 |
Software | 5,230 | 5,711 |
Leasehold improvements | 1,375 | 1,393 |
Gross carrying amount | 21,817 | 22,291 |
Accumulated depreciation and amortization | (16,161) | (17,188) |
Property and equipment, net | $ 5,656 | $ 5,103 |
Balance Sheet Components (Pro_2
Balance Sheet Components (Property and Equipment) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||
Software amortization | $ 1,214 | $ 1,174 |
Depreciation and amortization | $ 2,281 | $ 2,227 |
Balance Sheet Components (Other
Balance Sheet Components (Other Assets, Net) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||
Amortization of licensed technology | $ 153 | $ 336 |
Balance Sheet Components (Acqui
Balance Sheet Components (Acquired Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 6,730 | $ 6,730 |
Less: accumulated amortization | (6,640) | (5,523) |
Acquired intangible assets, net | 90 | 1,207 |
Amortization of acquired intangible assets | 1,118 | |
Cost of revenue | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | 899 | |
Selling, general and administrative | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of acquired intangible assets | 219 | 304 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 5,050 | 5,050 |
Developed technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 3 years | |
Developed technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 5 years | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 1,270 | 1,270 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 3 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 5 years | |
Backlog and tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired intangible assets, gross | $ 410 | $ 410 |
Backlog and tradename | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 6 months | |
Backlog and tradename | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful lives | 18 months |
Balance Sheet Components (Futur
Balance Sheet Components (Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 90 | |
Acquired intangible assets, net | $ 90 | $ 1,207 |
Balance Sheet Components (Goodw
Balance Sheet Components (Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 02, 2017 |
Goodwill [Line Items] | |||
Goodwill | $ 18,407 | $ 18,407 | |
ViXS Systems, Inc. | |||
Goodwill [Line Items] | |||
Goodwill | $ 18,407 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued Liabilities and Current Portion of Long-Term Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Balance Sheet Related Disclosures [Abstract] | |||
Accrued payroll and related liabilities | $ 3,490 | $ 2,867 | |
Operating lease liability, current | 2,439 | 2,039 | |
Deferred research and development reimbursement | 1,838 | 0 | |
Current portion of accrued liabilities for asset financings | 1,077 | 786 | |
Accrued interest payable | 361 | 429 | |
Accrued commissions and royalties | 259 | 474 | |
Deferred revenue | 50 | 179 | $ 146 |
Accrued costs related to restructuring | 0 | 630 | |
Other | 4,049 | 2,048 | |
Accrued liabilities and current portion of long-term liabilities | $ 13,563 | $ 9,452 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities and current portion of long-term liabilities | Accrued liabilities and current portion of long-term liabilities |
Balance Sheet Components (Defer
Balance Sheet Components (Deferred Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred revenue: | ||
Deferred revenue, beginning balance | $ 179 | $ 146 |
Revenue recognized | (1,127) | (902) |
Revenue deferred | 998 | 935 |
Deferred revenue, ending balance | $ 50 | $ 179 |
Balance Sheet Components (Short
Balance Sheet Components (Short-Term Line of Credit) (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Line of credit facility, maximum borrowing capacity | $ 10,000 | |
Line of credit facility, component of calculation for maximum borrowing amount under formula advances | $ 2,500 | |
Line of credit facility, maximum borrowing capacity, limited by eligible A/R | 80.00% | |
Line of credit facility, maximum borrowing capacity under non-formula advances | $ 10,000 | |
Line of credit facility, outstanding borrowings | $ 0 | $ 0 |
Balance Sheet Components (Paych
Balance Sheet Components (Paycheck Protection Program) (Narrative) (Details) - USD ($) | Apr. 25, 2020 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Gain on loan extinguishment | $ 0 | $ 796,000 | ||
Notes Payable to Banks | Paycheck Protection Program | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 796,000 | |||
Term of debt instrument | 2 years | |||
Stated interest rate (as a percent) | 1.00% | |||
Period until first payment | 6 months | |||
Gain on loan extinguishment | $ 796,000 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements (Short Term Marketable Securities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cost | $ 253 |
Unrealized Gain (Loss) | (3) |
Fair Value | 250 |
Corporate debt securities | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cost | 253 |
Unrealized Gain (Loss) | (3) |
Fair Value | $ 250 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements (Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Short-term marketable securities: | $ 250 | |
Cash equivalents: | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Cash equivalents: | $ 15,254 | 23,832 |
Cash equivalents: | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Cash equivalents: | 15,254 | 23,832 |
Cash equivalents: | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Cash equivalents: | 0 | 0 |
Cash equivalents: | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Cash equivalents: | $ 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Short-term marketable securities: | 250 | |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Short-term marketable securities: | 0 | |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Short-term marketable securities: | 250 | |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring [Line Items] | ||
Short-term marketable securities: | $ 0 |
Restructuring (Narrative) (Deta
Restructuring (Narrative) (Details) | 1 Months Ended |
Jun. 30, 2019 | |
August 2020 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Approximate reduction in workforce from restructuring plan (percent) | 14.00% |
January 2020 Plan | |
Restructuring Cost and Reserve [Line Items] | |
Approximate reduction in workforce from restructuring plan (percent) | 4.00% |
Restructuring (Components of Re
Restructuring (Components of Restructuring Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expense | $ 0 | $ 2,041 |
Restructuring Expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring expense | 0 | 2,214 |
Cost of revenue | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and benefits | 0 | 173 |
Total restructuring expense | 0 | 173 |
Operating expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Employee severance and benefits | 0 | 2,041 |
Total restructuring expense | $ 0 | $ 2,041 |
Restructuring (Restructuring Re
Restructuring (Restructuring Reserve) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2020 | $ 630 |
Expensed | 0 |
Payments | 630 |
Balance as of December 31, 2021 | 0 |
Employee Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 31, 2020 | 630 |
Expensed | 0 |
Payments | 630 |
Balance as of December 31, 2021 | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms on operating leases | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms on operating leases | 6 years |
Leases - Supplemental informati
Leases - Supplemental information related to leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 2,622 | $ 2,721 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 2,809 | 2,816 |
Leased assets obtained in exchange for new operating lease liabilities | $ 629 | $ 3,535 |
Weighted average remaining lease term (in years) | 2 years 11 months 12 days | 3 years 9 months 3 days |
Weighted average discount rate | 4.96% | 4.99% |
Leases - Future minimum lease p
Leases - Future minimum lease payments under noncancellable leases (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Years ending December 31: | |
2022 | $ 2,652 |
2023 | 1,376 |
2024 | 877 |
2025 | 364 |
2026 | 364 |
Thereafter | 91 |
Total operating lease payments | 5,724 |
Less imputed interest | (432) |
Total operating lease liabilities | $ 5,292 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 55,102 | $ 40,855 |
IC sales | ||
Revenue from External Customer [Line Items] | ||
Revenues | 50,807 | 39,205 |
Engineering services, license and other | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 4,295 | $ 1,650 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Unsatisfied performance obligations | $ 30 |
Expected timing of satisfaction of performance obligations | which we expect to recognize ratably over the next 3 months. |
Interest Income (Expense) and_3
Interest Income (Expense) and Other, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | ||
Other income | $ 246 | $ 161 |
Interest income | 211 | 87 |
Interest expense | 0 | (239) |
Total interest expense and other, net | $ 457 | $ 9 |
Research and Development (Detai
Research and Development (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research and development arrangement, receivable recognized | $ 3,962 |
Upfront Payment | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research and development arrangement, receivable | 5,800 |
First Additional Payment | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research and development arrangement, receivable | 2,200 |
Second Additional Payment | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research and development arrangement, receivable | 1,300 |
Third Additional Payment | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |
Research and development arrangement, receivable | $ 1,300 |
Income Taxes (Domestic and Fore
Income Taxes (Domestic and Foreign Pre-Tax Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||||||||
Domestic | $ (10,967) | $ (25,590) | ||||||||
Foreign | (8,578) | (341) | ||||||||
Loss before income taxes | $ (3,562) | $ (3,850) | $ (4,275) | $ (7,858) | $ (6,098) | $ (8,165) | $ (6,445) | $ (5,223) | $ (19,545) | $ (25,931) |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | ||
Federal | $ (27) | $ (74) |
State | 19 | 3 |
Foreign | 643 | 643 |
Total current | 635 | 572 |
Deferred: | ||
Foreign | (768) | 26 |
Total deferred | (768) | 26 |
Income tax expense (benefit) | $ (133) | $ 598 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of U.S. Federal Statuatory Rate to our Effective Rate) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 21.00% |
Corporate restructuring | (38.00%) | 0.00% |
Change in valuation allowance | 24.00% | 0.00% |
Expiration of tax attributes | (6.00%) | (14.00%) |
Tax contingencies, net of reversals | (5.00%) | 0.00% |
Impact of foreign earnings | 3.00% | (7.00%) |
Permanent items | 4.00% | (1.00%) |
Research and development credits | 2.00% | 1.00% |
Stock-based compensation | (1.00%) | (2.00%) |
Other | (3.00%) | 0.00% |
Effective income tax rate | 1.00% | (2.00%) |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Research and experimentation credit and deduction carryforwards | $ 62,771 | $ 65,772 |
Net operating loss carryforwards | 45,985 | 50,917 |
Depreciation and amortization | 5,664 | 2,282 |
Deferred stock-based compensation | 994 | 1,158 |
Foreign tax credit carryforwards | 208 | 275 |
Reserves and accrued expenses | 992 | 145 |
Other | 1,451 | 2,074 |
Total gross deferred tax assets | 118,065 | 122,623 |
Deferred tax liabilities: | ||
Other | (812) | (1,526) |
Total gross deferred tax liabilities | (812) | (1,526) |
Less valuation allowance | (116,372) | (120,981) |
Net deferred tax assets | $ 881 | $ 116 |
Income Taxes (Deferred Tax As_2
Income Taxes (Deferred Tax Assets, Liabilities and Valuation Allowance) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | ||
Deferred tax assets, net | $ 881 | $ 116 |
Change in net valuation allowance | 4,609 | $ 24 |
CANADA | ||
Tax Credit Carryforward [Line Items] | ||
Deferred tax assets, net | $ 558 |
Income Taxes (Net Operating Los
Income Taxes (Net Operating Loss Carryforwards and Tax Credits) (Narrative) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards, carried forward indefinetly | $ 31,705 |
Reversed accrual | 620 |
Federal [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 166,448 |
Tax credit carryforwards, research | 7,823 |
State [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 6,756 |
Tax credit carryforwards, research | 4,993 |
Foreign [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating loss carryforwards | 39,450 |
Tax credit carryforwards, research | 24,252 |
General foreign tax credit | 118 |
Canada Revenue Agency [Member] | Foreign [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards, research | $ 120,906 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 1,610 | |
Balance at end of year | 2,493 | $ 1,610 |
Uncertain Tax Positions [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 2,711 | 2,569 |
Accrual for positions taken in a prior year | 825 | 24 |
Accrual for positions taken in current year | 121 | 192 |
Reversals due to lapse of statute of limitations | (11) | (74) |
Balance at end of year | 3,646 | 2,711 |
Interest and Penalties [Member] | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | 88 | 85 |
Accrual for positions taken in a prior year | 16 | 18 |
Accrual for positions taken in current year | 0 | 0 |
Reversals due to lapse of statute of limitations | (3) | (15) |
Balance at end of year | $ 101 | $ 88 |
Income Taxes (Uncertain Tax P_2
Income Taxes (Uncertain Tax Positions) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Liability for uncertain tax positions, noncurrent | $ 2,493 | $ 1,610 |
Reduction to deferred tax assets | 1,254 | 1,189 |
Unrecognized tax benefits, income tax penalties and interest expense | 16 | $ 18 |
Anticipated decrease of unrecognized tax liability, within twelve months | $ 97 |
Commitments and Contingencies_2
Commitments and Contingencies (Royalties) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Royalty Expense | $ 225 | $ 242 |
Commitments and Contingencies_3
Commitments and Contingencies (401(k) Plan) (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Employer contributions to 401(k) plan | $ 55 | $ 48 |
Commitments and Contingencies_4
Commitments and Contingencies (Future Minimum Payments) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Software licenses | |
2022 | $ 1,133 |
2023 | 365 |
Total | 1,498 |
Less: Interest component | (65) |
Present value of minimum software license payments | 1,433 |
Less: Current portion | (1,077) |
Long-term portion of obligations | $ 356 |
Commitments and Contingencies_5
Commitments and Contingencies (Other Contractual Obligation) (Narrative) (Details) - ViXS Systems, Inc. - Debt associated with agreement with TPC - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Contractual obligation, other, current | $ 504 | $ 499 |
Contractual obligation, other, noncurrent | $ 57 | $ 268 |
Earnings Per Share (Earnings Pe
Earnings Per Share (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||||||||
Net loss | $ (19,412) | $ (26,529) | ||||||||
Less: Net income attributable to redeemable non-controlling interest | (409) | 0 | ||||||||
Less: Net income attributable to certain entities owned by employees | (198) | 0 | ||||||||
Net loss attributable to Pixelworks Inc. - for purposes of earnings per share calculation | $ (20,019) | $ (26,529) | ||||||||
Weighted average shares outstanding - diluted (in shares) | 52,509,000 | 40,712,000 | ||||||||
Weighted average shares outstanding - basic (in shares) | 52,509,000 | 40,712,000 | ||||||||
Net loss attributable to Pixelworks, Inc. per share - basic (in usd per share) | $ (0.06) | $ (0.08) | $ (0.08) | $ (0.16) | $ (0.15) | $ (0.20) | $ (0.17) | $ (0.14) | $ (0.38) | $ (0.65) |
Net loss attributable to Pixelworks, Inc. per share - diluted (in usd per share) | $ (0.06) | $ (0.08) | $ (0.08) | $ (0.16) | $ (0.15) | $ (0.20) | $ (0.17) | $ (0.14) | $ (0.38) | $ (0.65) |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Effect on Weighted Average Shares) (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee equity incentive plans | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 3,832 | 4,148 |
Shareholders' Equity (Sharehold
Shareholders' Equity (Shareholders' Equity) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 16, 2020 | Dec. 16, 2020 | Dec. 15, 2020 | Dec. 15, 2020 | Dec. 14, 2020 | Dec. 07, 2020 | Jun. 05, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders' Equity Note [Abstract] | |||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |||||||
Preferred stock, par value (in usd per share) | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | |||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Common stock, shares reserved for future issuance | 22,683,333 | ||||||||
2006 Plan, number of shares available for grant | 2,105,497 | ||||||||
Equity Offering, Excluding Underwriter's Option | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock issued in transaction (shares) | 4,900,000 | ||||||||
Underwriter's Option | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock issued in transaction (shares) | 735,000 | ||||||||
Sale of stock, agreement term | 30 days | ||||||||
Equity Offering | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock issued in transaction (shares) | 5,635,000 | ||||||||
Sale of stock, price per share (USD per share) | $ 2.45 | $ 2.45 | |||||||
Net proceeds from transaction | $ 12,743 | ||||||||
Private Placement | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock issued in transaction (shares) | 2,475,712 | 724,288 | |||||||
Sale of stock, price per share (USD per share) | $ 2.071 | $ 2.071 | $ 2.071 | ||||||
Net proceeds from transaction | $ 6,210 | ||||||||
At the Market Offering | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock issued in transaction (shares) | 61,018 | 1,747,466 | |||||||
Net proceeds from transaction | $ 321 | $ 4,429 | |||||||
Maximum aggregate offering price | $ 25,000 | ||||||||
Commissions and fees | 3.00% |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Options) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2009 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, percent vested on one year anniversary of grant | 25.00% | ||
Options, monthly vesting percentage beginning after year one anniversary | 2.083% | ||
Options, number of months vesting after one year anniversary | 36 | ||
Total intrinsic value of options exercised | $ 445 | $ 28 | |
Total intrinsic value of outstanding options | $ 684 | ||
Stock Option Plans: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, merit vesting period | 3 years | ||
Stock Option Plans: | Minimum | 2006 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan modification, contractual life | 6 years |
Shareholders' Equity (Stock O_2
Shareholders' Equity (Stock Options Activity Roll-forward) (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Options Outstanding - Number of Shares | |
Options outstanding as of December 31, 2020: | shares | 719,067 |
Granted | shares | 0 |
Exercised | shares | (352,375) |
Canceled and forfeited | shares | (500) |
Expired | shares | (11,583) |
Options outstanding as of December 31, 2021: | shares | 354,609 |
Options Outstanding - Weighted Average Exercise Price | |
Options outstanding as of December 31, 2020: | $ / shares | $ 2.53 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 2.47 |
Canceled and forfeited | $ / shares | 4.56 |
Expired | $ / shares | 4.51 |
Options outstanding as of December 31, 2021: | $ / shares | $ 2.52 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Shares Authorized Under Equity Compensation Plans, By Exercise Price) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number outstanding as of end of year | 354,609 | 719,067 |
$2.00 - $2.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices, minimum | $ 2 | |
Range of exercise prices, maximum | $ 2 | |
Number outstanding as of end of year | 237,500 | |
Options outstanding, weighted average remaining contractual life | 4 years 9 months 14 days | |
Options outstanding, weighted average exercise price | $ 2 | |
Number exercisable as of end of year | 159,500 | |
Options exerciseable, weighted average exercise price | $ 2 | |
2.46 - 2.46 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices, minimum | 2.46 | |
Range of exercise prices, maximum | $ 2.46 | |
Number outstanding as of end of year | 109,109 | |
Options outstanding, weighted average remaining contractual life | 1 year 8 months 1 day | |
Options outstanding, weighted average exercise price | $ 3.40 | |
Number exercisable as of end of year | 97,521 | |
Options exerciseable, weighted average exercise price | $ 3.33 | |
2.79- 6.05 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices, minimum | 2.79 | |
Range of exercise prices, maximum | $ 6.05 | |
Number outstanding as of end of year | 8,000 | |
Options outstanding, weighted average remaining contractual life | 2 years 29 days | |
Options outstanding, weighted average exercise price | $ 6.05 | |
Number exercisable as of end of year | 7,667 | |
Options exerciseable, weighted average exercise price | $ 6.05 | |
$2.00 - $6.05 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices, minimum | 2 | |
Range of exercise prices, maximum | $ 6.05 | |
Number outstanding as of end of year | 354,609 | |
Options outstanding, weighted average remaining contractual life | 3 years 9 months 7 days | |
Options outstanding, weighted average exercise price | $ 2.52 | |
Number exercisable as of end of year | 264,688 | |
Options exerciseable, weighted average exercise price | $ 2.61 |
Shareholders' Equity (Options V
Shareholders' Equity (Options Vested or are Expected to Vest as of December 31, 2021) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Stockholders' Equity Note [Abstract] | |
Vested, number of shares | shares | 264,688 |
Expected to vest, number of shares | shares | 88,517 |
Total, number of shares | shares | 353,205 |
Vested, weighted average exercise price | $ / shares | $ 2.61 |
Expected to vest, weighted average exercise price | $ / shares | 2.26 |
Total, weighted average exercise price | $ / shares | $ 2.52 |
Vested, weighted average remaining contractual term | 3 years 5 months 23 days |
Expected to vest, weighted average remaining contractual term | 4 years 7 months 20 days |
Total, weighted average remaining contractual term | 3 years 9 months 7 days |
Vested, aggregate intrinsic value | $ | $ 491 |
Expected to vest, aggregate intrinsic value | $ | 190 |
Total, aggregate intrinsic value | $ | $ 681 |
Shareholders' Equity (Restricte
Shareholders' Equity (Restricted Stock) (Narrative) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | ||
Restricted stock grants, number of shares | 2,123,844 | 2,137,317 |
Restricted stock grants, weighted average grant date fair value | $ 3.70 | $ 3.42 |
Shareholders' Equity (Unvested
Shareholders' Equity (Unvested Restricted Stock Units Activity Roll-Forward) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unvested Restricted Stock Units - Number of Shares | ||
Unvested at December 31, 2020: | 3,176,605 | |
Granted | 2,123,844 | |
Vested | (1,715,624) | |
Canceled | (268,790) | |
Unvested at December 31, 2021: | 3,316,035 | 3,176,605 |
Expected to vest after December 31, 2021 | 3,090,192 | |
Unvested Restricted Stock Units - Weighted Average Grant Date Fair Value | ||
Unvested at December 31, 2020: | $ 3.68 | |
Granted | 3.70 | $ 3.42 |
Vested | 3.67 | |
Canceled | 3.84 | |
Unvested at December 31, 2021: | 3.69 | $ 3.68 |
Expected to vest after December 31, 2021 | $ 3.68 |
Shareholders' Equity (Employee
Shareholders' Equity (Employee Stock Purchase Plans) (Narrative) (Details) - 2010 Employee Stock Purchase Plan [Member] - USD ($) $ in Thousands | May 18, 2010 | Dec. 31, 2021 | Dec. 31, 2020 |
Employee Stock Purchase Plan, Activity in Period [Line Items] | |||
Employee Stock Purchase Plan, offering period | 18 months | ||
Employee Stock Purchase Plan, purchase period | 6 months | ||
Employee Stock Purchase Plan, maximum number of shares per employee | 3,000 | ||
Employee Stock Purchase Plan, maximum annual purchase amount per employee | $ 25 | ||
Employee Stock Purchase Plan, purchase price of common stock, percent | 85.00% | ||
Employee Stock Purchase Plan, number of shares authorized | 3,300,000 | ||
Employee Stock Purchase Plans, shares issued | 159,177 | 202,019 | |
Employee Stock Purchase Plans, proceeds from shares issued | $ 411 | $ 529 |
Shareholders' Equity (Schedul_2
Shareholders' Equity (Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Option Plans: | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk free interest rate | 0.00% | 2.00% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (in years) | 3 years 9 months | |
Volatility | 0.00% | 64.00% |
Employee Stock Purchase Plan: | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk free interest rate | 0.12% | 0.79% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (in years) | 1 year 2 months 1 day | 1 year 18 days |
Volatility | 75.00% | 65.00% |
Shareholders' Equity (Stock-bas
Shareholders' Equity (Stock-based Compensation Expense) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2009 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options, grants in period, weighted average grant date fair value | $ 0.93 | ||
Nonvested awards, total compensation cost not yet recognized | $ 5,560 | ||
Nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 1 month 13 days | ||
Stock Option Plans: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | |
Minimum | 2006 Plan | Stock Option Plans: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan modification, contractual life | 6 years |
Segment Information (Geographic
Segment Information (Geographic Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, net | $ 16,586 | $ 15,196 | $ 14,050 | $ 9,270 | $ 9,638 | $ 8,190 | $ 9,253 | $ 13,774 | $ 55,102 | $ 40,855 |
Japan | ||||||||||
Revenue, net | 27,001 | 26,554 | ||||||||
China | ||||||||||
Revenue, net | 23,977 | 8,935 | ||||||||
Taiwan | ||||||||||
Revenue, net | 2,142 | 1,668 | ||||||||
U.S. | ||||||||||
Revenue, net | 1,624 | 3,057 | ||||||||
Europe | ||||||||||
Revenue, net | 242 | 333 | ||||||||
Korea | ||||||||||
Revenue, net | $ 116 | $ 308 |
Segment Information (Schedule o
Segment Information (Schedule of Revenue by Major Customer) (Details) - Revenue - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
All distributors | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | 56.00% | 49.00% | |
Distributor A | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | 27.00% | 7.00% | |
Distributor B | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | 13.00% | 23.00% | |
Top five end customers | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | [1] | 76.00% | 58.00% |
End customer A | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | [1] | 35.00% | 40.00% |
End customer B | |||
Revenue, Major Customer [Line Items] | |||
Percentage of revenue | [1] | 22.00% | 5.00% |
[1] | End customers include customers who purchase directly from us, as well as customers who purchase our products indirectly through distributors. |
Segment Information (Accounts R
Segment Information (Accounts Receivable by Major Customer) (Details) - Accounts receivable - Customer Concentration Risk | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Account X | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 41.00% | 39.00% |
Account Y | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 27.00% | 20.00% |
Account Z | ||
Segment Reporting Information [Line Items] | ||
Percentage of accounts receivable | 15.00% | 7.00% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue, net | $ 16,586 | $ 15,196 | $ 14,050 | $ 9,270 | $ 9,638 | $ 8,190 | $ 9,253 | $ 13,774 | $ 55,102 | $ 40,855 |
Gross profit | 8,873 | 7,985 | 7,110 | 3,725 | 4,385 | 3,976 | 5,049 | 6,775 | 27,693 | 20,185 |
Loss from operations | (3,727) | (3,904) | (4,457) | (7,914) | (6,901) | (8,137) | (6,421) | (5,277) | (20,002) | (26,736) |
Loss before income taxes | (3,562) | (3,850) | (4,275) | (7,858) | (6,098) | (8,165) | (6,445) | (5,223) | (19,545) | (25,931) |
Net loss | $ (3,291) | $ (4,073) | $ (4,382) | $ (8,075) | $ (6,439) | $ (8,139) | $ (6,552) | $ (5,399) | $ (19,821) | $ (26,529) |
Net loss per share: | ||||||||||
Basic (in dollars per share) | $ (0.06) | $ (0.08) | $ (0.08) | $ (0.16) | $ (0.15) | $ (0.20) | $ (0.17) | $ (0.14) | $ (0.38) | $ (0.65) |
Diluted (in dollars per share) | $ (0.06) | $ (0.08) | $ (0.08) | $ (0.16) | $ (0.15) | $ (0.20) | $ (0.17) | $ (0.14) | $ (0.38) | $ (0.65) |
Restructuring charges | $ 0 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest and Equity Interest of Pwsh Sold to Employees - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Redeemable Noncontrolling Interest [Line Items] | |
Increase in non-controlling interest due to issuance of stock | $ 30,844 |
PWSH Employees and Subsidiaries | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership percentage | 75.00% |
Annual interest percentage included | 0.05 |
PWSH Employees and Subsidiaries | Equity Sale to ESOP | |
Redeemable Noncontrolling Interest [Line Items] | |
Ownership percentage | 5.95% |
Increase in non-controlling interest due to issuance of stock | $ 12,329 |
Discount on valuation | 0.30 |
The Investors | Equity Sale to Investors | |
Redeemable Noncontrolling Interest [Line Items] | |
Increase in non-controlling interest due to issuance of stock | $ 30,844 |
Ownership percentage by noncontrolling owners | 10.45% |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest and Equity Interest of Pwsh Sold to Employees (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||
Carrying Value of Redeemable NCI as of January 1, 2021 | $ 0 | |
Increase in non-controlling interest due to issuance of stock | 30,844 | |
Closing costs incurred | (868) | |
Net income attributable to redeemable non-controlling interest | 409 | $ 0 |
Effect of foreign currency translation attributable to redeemable non-controlling interest | 520 | |
Carrying Value of Redeemable NCI as of December 31, 2021 | $ 30,905 | $ 0 |