Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 09, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | PCTEL, Inc. | |
Entity Central Index Key | 0001057083 | |
Entity Incorporation, State or Country Code | DE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | PCTI | |
Security Exchange Name | NASDAQ | |
Entity File Number | 000-27115 | |
Entity Tax Identification Number | 77-0364943 | |
Entity Address, Address Line One | 471 Brighton Drive | |
Entity Address, City or Town | Bloomingdale | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60108 | |
City Area Code | 630 | |
Local Phone Number | 372-6800 | |
Entity Common Stock Shares Outstanding | 18,773,994 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 5,858 | $ 8,192 |
Short-term investment securities | 22,147 | 22,562 |
Accounts receivable, net of allowances of $143 and $64 at September 30, 2022 and December 31, 2021, respectively | 20,553 | 18,905 |
Inventories, net | 16,730 | 13,691 |
Prepaid expenses and other assets | 1,374 | 1,747 |
Total current assets | 66,662 | 65,097 |
Property and equipment, net | 10,300 | 11,949 |
Goodwill | 5,778 | 6,334 |
Intangible assets, net | 1,058 | 1,579 |
Other noncurrent assets | 2,636 | 2,438 |
TOTAL ASSETS | 86,434 | 87,397 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 6,194 | 5,360 |
Accrued liabilities | 10,618 | 11,117 |
Total current liabilities | 16,812 | 16,477 |
Long-term liabilities | 3,533 | 3,999 |
Total liabilities | 20,345 | 20,476 |
Stockholders’ equity: | ||
Common stock, $0.001 par value, 50,000,000 shares authorized at September 30, 2022 and December 31, 2021, respectively, and 18,676,629 and 18,238,030 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 19 | 18 |
Additional paid-in capital | 123,964 | 123,998 |
Accumulated deficit | (55,916) | (56,735) |
Accumulated other comprehensive loss | (1,978) | (360) |
Total stockholders’ equity | 66,089 | 66,921 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 86,434 | $ 87,397 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 143 | $ 64 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,676,629 | 18,238,030 |
Common stock, shares outstanding | 18,676,629 | 18,238,030 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
REVENUES | $ 25,988 | $ 22,411 | $ 73,506 | $ 61,799 |
COST OF REVENUES | 14,052 | 12,157 | 40,810 | 33,266 |
GROSS PROFIT | 11,936 | 10,254 | 32,696 | 28,533 |
OPERATING EXPENSES: | ||||
Research and development | 3,178 | 3,338 | 9,784 | 9,754 |
Sales and marketing | 3,600 | 3,347 | 10,910 | 9,497 |
General and administrative | 3,705 | 2,817 | 10,399 | 9,228 |
Amortization of intangible assets | 63 | 80 | 201 | 135 |
Restructuring expenses | 57 | (1) | 1,309 | 59 |
Total operating expenses | 10,603 | 9,581 | 32,603 | 28,673 |
OPERATING INCOME (LOSS) | 1,333 | 673 | 93 | (140) |
Other income (expense), net | 205 | (4) | 330 | (10) |
INCOME (LOSS) BEFORE INCOME TAXES | 1,538 | 669 | 423 | (150) |
(Benefit) Expense for income taxes | (434) | 5 | (396) | 17 |
NET INCOME (LOSS) | $ 1,972 | $ 664 | $ 819 | $ (167) |
Net Income (Loss) per Share: | ||||
Basic | $ 0.11 | $ 0.04 | $ 0.05 | $ (0.01) |
Diluted | $ 0.11 | $ 0.04 | $ 0.04 | $ (0.01) |
Weighted Average Shares: | ||||
Basic | 18,165,611 | 17,945,053 | 18,098,694 | 18,077,506 |
Diluted | 18,187,075 | 17,961,686 | 18,213,753 | 18,077,506 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
NET INCOME (LOSS) | $ 1,972 | $ 664 | $ 819 | $ (167) |
OTHER COMPREHENSIVE LOSS: | ||||
Foreign currency translation adjustments | (686) | (152) | (1,618) | (238) |
COMPREHENSIVE INCOME (LOSS) | $ 1,286 | $ 512 | $ (799) | $ (405) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid - In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
BALANCE at beginning of year at Dec. 31, 2020 | $ 71,398 | $ 18 | $ 128,250 | $ (56,888) | $ 18 |
Stock-based compensation expense | 2,029 | 1 | 2,028 | 0 | 0 |
Issuance of shares for stock purchase plans and stock options | 418 | 0 | 418 | 0 | 0 |
Cancellation of shares for payment of withholding tax | (782) | 0 | (782) | 0 | 0 |
Repurchase of common stock | (3,193) | (1) | (3,192) | 0 | 0 |
Dividends paid | (3,020) | 0 | (3,020) | 0 | 0 |
Net (loss) income | (167) | 0 | 0 | (167) | 0 |
Change in cumulative translation adjustment, net | (238) | 0 | 0 | 0 | (238) |
BALANCE at end of year at Sep. 30, 2021 | 66,445 | 18 | 123,702 | (57,055) | (220) |
BALANCE at beginning of year at Jun. 30, 2021 | 69,023 | 19 | 126,791 | (57,719) | (68) |
Stock-based compensation expense | 372 | 0 | 372 | 0 | 0 |
Issuance of shares for stock purchase plans and stock options | 0 | 0 | 0 | 0 | |
Cancellation of shares for payment of withholding tax | 0 | 0 | 0 | 0 | 0 |
Repurchase of common stock | (2,460) | (1) | (2,459) | 0 | 0 |
Dividends paid | (1,002) | 0 | (1,002) | 0 | 0 |
Net (loss) income | 664 | 0 | 0 | 664 | 0 |
Change in cumulative translation adjustment, net | (152) | 0 | 0 | 0 | (152) |
BALANCE at end of year at Sep. 30, 2021 | 66,445 | 18 | 123,702 | (57,055) | (220) |
BALANCE at beginning of year at Dec. 31, 2021 | 66,921 | 18 | 123,998 | (56,735) | (360) |
Stock-based compensation expense | 3,007 | 1 | 3,006 | 0 | 0 |
Issuance of shares for stock purchase plans and stock options | 404 | 0 | 404 | 0 | 0 |
Cancellation of shares for payment of withholding tax | (396) | 0 | (396) | 0 | 0 |
Dividends paid | (3,048) | 0 | (3,048) | 0 | 0 |
Net (loss) income | 819 | 0 | 0 | 819 | 0 |
Change in cumulative translation adjustment, net | (1,618) | 0 | 0 | 0 | (1,618) |
BALANCE at end of year at Sep. 30, 2022 | 66,089 | 19 | 123,964 | (55,916) | (1,978) |
BALANCE at beginning of year at Jun. 30, 2022 | 64,683 | 19 | 123,844 | (57,888) | (1,292) |
Stock-based compensation expense | 1,147 | 0 | 1,147 | 0 | 0 |
Issuance of shares for stock purchase plans and stock options | 0 | 0 | 0 | 0 | 0 |
Cancellation of shares for payment of withholding tax | 0 | 0 | 0 | 0 | 0 |
Dividends paid | (1,027) | 0 | (1,027) | 0 | 0 |
Net (loss) income | 1,972 | 0 | 0 | 1,972 | 0 |
Change in cumulative translation adjustment, net | (686) | 0 | 0 | 0 | (686) |
BALANCE at end of year at Sep. 30, 2022 | $ 66,089 | $ 19 | $ 123,964 | $ (55,916) | $ (1,978) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) (unaudited) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividend per share | $ 0.055 | $ 0.055 | $ 0.165 | $ 0.165 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities: | ||
Net income (loss) | $ 819 | $ (167) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 2,231 | 2,257 |
Intangible asset amortization | 257 | 171 |
Stock-based compensation | 3,007 | 2,029 |
Loss on disposal of property and equipment | 0 | 3 |
Restructuring costs | (291) | (15) |
Bad debt provision | 70 | (39) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,081) | 2,162 |
Inventories | (3,402) | (1,734) |
Prepaid expenses and other assets | 574 | 932 |
Deferred tax assets | (484) | 0 |
Accounts payable | 974 | (700) |
Income taxes payable | 15 | (15) |
Other accrued liabilities | (175) | 1,405 |
Deferred revenue | (93) | 82 |
Net cash provided by operating activities | 1,421 | 6,371 |
Investing Activities: | ||
Capital expenditures | (550) | (2,006) |
Purchases of investments | (21,971) | (21,124) |
Redemptions/maturities of short-term investments | 22,386 | 33,666 |
Cash paid for acquisition, net of cash acquired | 0 | (6,277) |
Net cash (used in) provided by investing activities | (135) | 4,259 |
Financing Activities: | ||
Proceeds from issuance of common stock | 404 | 418 |
Payment of withholding tax on stock-based compensation | (396) | (782) |
Principal payments on finance leases | (48) | (54) |
Purchase of common stock from repurchase program | 0 | (3,193) |
Cash dividends | (3,048) | (3,020) |
Net cash used in financing activities | (3,088) | (6,631) |
Net (decrease) increase in cash and cash equivalents | (1,802) | 3,999 |
Effect of exchange rate changes on cash | (532) | 12 |
Cash and cash equivalents, beginning of period | 8,192 | 5,761 |
Cash and Cash Equivalents, End of Period | $ 5,858 | $ 9,772 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal, recurring nature that are considered necessary for a fair presentation have been included. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Form 10-K”). Throughout this Quarterly Report on Form 10-Q, including under Part 1, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” we disclose certain macroeconomic impacts of the novel coronavirus (“COVID-19”) pandemic and the ensuing supply chain disruption, as well as macroeconomic trends, including inflationary pressures, an economic downturn and the potential for a recession. The full extent to which the COVID-19 pandemic and these macroeconomic trends will directly or indirectly impact the Company’s business, results of operations and financial condition will depend on future developments that remain highly uncertain at this time. Nature of Operations PCTEL, Inc. (“PCTEL” or “the Company”) was incorporated in California in 1994 and reincorporated in Delaware in 1998. The Company is a leading global provider of wireless technology, including purpose-built Industrial IoT devices, antenna systems, and test and measurement solutions. PCTEL solves complex wireless challenges to help organizations stay connected, transform, and grow and it has expertise in RF, digital, and mechanical engineering. The Company has two businesses (antennas & Industrial IoT devices and test & measurement products). These businesses are supported by the Company’s talent and expertise in RF, digital, and mechanical engineering. The Company’s principal executive offices are located at 471 Brighton Drive, Bloomingdale, Illinois 60108. The telephone number at that address is (630) 372-6800 and the website is www.pctel.com. Additional information about the Company can be obtained on the Company’s website; however, the information within, or that can be accessed through, the Company’s website is not part of this Quarterly Report on Form 10-Q. Basis of Consolidation The unaudited interim condensed consolidated financial statements of the Company include the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, the condensed consolidated statement of cash flows for the nine months ended September 30, 2022 and 2021, and the condensed consolidated statements of operations, condensed consolidated statements of comprehensive (loss) income, and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, respectively. The interim condensed consolidated financial statements are unaudited and reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The condensed consolidated balance sheet as of December 31, 2021 is derived from the audited financial statements as of December 31, 2021. The unaudited interim condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The significant accounting policies followed by the Company are set forth in the 2021 Form 10-K. There were no material changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2022. In addition, the Company reaffirms the use of estimates in the preparation of the financial statements as set forth in the 2021 Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the 2021 Form 10-K. The results of operations for the period ended September 30, 2022 may not be indicative of the results for the period ending December 31, 2022. Foreign Operations Cross-border transactions, both with external parties and in our internal operations, result in exposure to foreign exchange rate fluctuations. We are exposed to currency risk by having foreign locations with suppliers and employees located outside the U.S. Fluctuations could have an adverse effect on our results of operations and cash flows. We manage certain operating activities at the local level with revenues, costs, assets, and liabilities generally being denominated in local currencies. However, our results of operations and assets and liabilities are reported in U.S. dollars and thus will fluctuate with changes in exchange rates between such local currencies and the U.S. dollar. Gains and losses resulting from transactions originally in foreign currencies and then translated into U.S. dollars are included in the condensed consolidated statements of operations. For the nine months ended September 30, 2022, approximately 11 % of revenues and 13 % of expenses were transacted in foreign currencies as compared to 9 % and 20 % for the nine months ended September 30, 2021. Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income, net were $ 114 and $( 10 ) for the three months ended September 30, 2022 and 2021, respectively. Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income, net were $ 187 and $( 54 ) for the nine months ended September 30, 2022 and 2021, respectively. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-14 Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The changes are effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company does not expect the adoption of this standard to have an impact on our financial statements or the related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. Topic 848 is effective upon issuance and generally can be applied through December 31, 2022. The Company does not expect the adoption of this standard to have an impact on our financial statements or the related disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts. This ASU should be applied prospectively to business combinations occurring on or after the effective date of the update. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, but should be applied to all acquisitions occurring in the annual period of adoption. The Company does not expect the adoption of this standard to have an impact on our financial statements or the related disclosures. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This update clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to contractual restrictions that prohibit the sale of the equity security. This update also requires specific disclosures related to such an equity security including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. This ASU is effective for all public business entities in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 2. Fair Value of Financial Instruments The Company follows accounting guidance for fair value measurements and disclosures, which establishes a fair value hierarchy that requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of assets or liabilities. Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash equivalents are measured at fair value and investments are recognized at amortized cost in the Company’s financial statements. Accounts receivable is a financial asset with a carrying value that approximates fair value due to the short-term nature of these assets. Accounts payable, accrued employee compensation and certain operating liabilities are financial liabilities with a carrying value that approximates fair value due to the short-term nature of these liabilities. |
Income (Loss) per Share
Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | 3. Income (Loss) per Share The following table is the computation of basic and diluted income per share: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic Income Per Share computation: Numerator: Net Income (loss) $ 1,972 $ 664 $ 819 $ ( 167 ) Denominator: Weighted shares outstanding - basic 18,165,611 17,945,053 18,098,694 18,077,506 Net Income (loss) per common share - basic $ 0.11 $ 0.04 $ 0.05 $ ( 0.01 ) Diluted Income Per Share computation: Denominator: Weighted shares outstanding - basic 18,165,611 17,945,053 18,098,694 18,077,506 Restricted shares subject to vesting 21,394 16,633 115,013 0 Common stock option grants 70 0 46 0 Weighted shares outstanding - diluted 18,187,075 17,961,686 18,213,753 18,077,506 Net Income (loss) per common share - diluted $ 0.11 $ 0.04 $ 0.04 $ ( 0.01 ) |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Business Combination | 4. Business Combinations On April 30, 2021, the Company acquired all the outstanding stock of Smarteq Wireless Aktiebolag (“Smarteq”), a Swedish company based in Kista, Sweden that designs antennas for specialized Industrial IoT and vehicular applications, pursuant to a Share Sale and Purchase Agreement (the “SPA”) between PCTEL and Allgon Aktiebolag, a Swedish company and holder of the outstanding stock of Smarteq. Pursuant to the SPA, the Company acquired Smarteq for a cash purchase price consisting of SEK 53.0 million plus working capital adjustments of SEK 1.6 million and an adjustment for the net cash at closing of SEK 2.1 million for total cash consideration of SEK 56.8 million (USD $ 6.8 million), all of which was provided from PCTEL’s existing cash. The Company believes the acquisition of Smarteq provides a strong local presence, expertise, and channel partners to accelerate revenue growth in Europe, as well as a complementary portfolio of products. The results for Smarteq are combined with the Company’s antenna and Industrial IoT device product line. The Company applied the provisions of Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired, and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used its best estimates and assumptions where applicable to accurately value assets acquired and liabilities assumed at the acquisition date. The operating results of the acquired business are included in the Company’s consolidated financial statements from the date of the acquisition. Fair Value of Purchase Consideration: The following table summarizes the fair value of purchase consideration to acquire Smarteq: Fair value of purchase consideration Cash $ 6,785 Working capital adjustment ( 5 ) Total purchase consideration $ 6,780 Purchase Price Allocation: The Company acquired all of the assets and liabilities of Smarteq, including cash of $ 0.5 million and debt of $ 0.1 million. The following is an allocation of the purchase price as of the April 30, 2021 closing date based upon the fair value of the assets acquired and liabilities assumed by the Company in the acquisition: Purchase Price Allocation: Cash $ 503 Accounts receivable 1,415 Prepaid expenses and other assets 109 Inventories 1,286 Right of use assets 232 Property and equipment 131 Intangible assets 1,983 Accounts payable ( 981 ) Accrued liabilities ( 837 ) Lease liabilities - short-term ( 102 ) Lease liabilities - long-term ( 112 ) Debt ( 91 ) Identifiable assets acquired $ 3,536 Goodwill 3,244 Total purchase price $ 6,780 The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets: Finite-lived assets: Customer relationships $ 787 Trade names 639 Technology 438 Other intangible assets 119 $ 1,983 Intangible Assets: Useful Life Customer relationships 5 years Trade names 5 years Technology 5 years Other intangible assets .5 to 5 years Assumptions in the Allocations of Purchase Price The Company prepared the purchase price allocation for the acquired Smarteq assets and in doing so utilized reports of a third-party valuation expert to calculate the fair value of the identifiable intangible assets. Estimates of fair value required management to make significant estimates and assumptions. The goodwill recognized is attributable primarily to the acquired workforce, expected synergies, and other benefits that the Company believes will result from integrating the Smarteq operations with the operations of the Company. The Company completed the final purchase price allocation. The fair value of the customer relationships was determined using the multi-period excess earnings method (“MPEEM”). MPEEM estimates the value of an intangible asset by quantifying the amount of residual (or excess) cash flows generated by the future customer cash flows and discounting those cash flows to the present value. Future cash flows for customers were estimated based on forecasted revenue and costs, taking into account the growth rates, customer attrition, and contributory charges. The fair value of the customer backlog was calculated using the present value of the cash flows associated with the acquired backlog. The fair values of the trade names, developed technology, and exclusive rights were determined using the relief-from-royalty method. The relief-from-royalty method is a specific application of the discounted-cash-flow method, which is a form of the income approach. It is based on the principle that ownership of the intangible asset relieves the owner of the need to pay a royalty to another party in exchange for rights to use the asset. Key assumptions to estimate the hypothetical royalty rate include observable royalty rates, which are royalty rates in negotiated licenses and market-based royalty rates which are royalty rates found in available market data for licenses involving similar assets. The fair value of covenants not to compete was estimated using the with-or-without method. The with-and-without method estimates the value of an intangible asset by quantifying the loss of economic profits under a hypothetical condition where only the subject intangible does not exist and needs to be re-created. Projected revenues, operating expenses and cash flows are calculated in each "with" and "without" scenario and the difference in the cash flow is discounted to present value. Inventory was valued at net realizable value. Raw materials were valued at book value and finished goods were valued assuming hypothetical revenues from finished goods adjusted for disposal costs, profit attributable to the seller and holding costs. An inventory step-up of $ 0.5 million is included in the purchase price allocation above. The inventory step-up was calculated based on the net realizable value, on a part-by-part basis, of the inventory on the opening balance sheet. The amortization of the inventory step-up was recorded based on the consumption of those parts and was fully recognized during the period from the acquisition date through December 31, 2021. The Company assumed gross accounts receivable of $ 1.4 million. Based on Smarteq’s bad debt experience and a review of the receivables, the Company does not anticipate an issue with collectability. The Company assumed liabilities in the acquisition which primarily consist of accounts payable, accrued employee compensation and certain operating liabilities. The fair value of the liabilities assumed are valued at their cash settlement value. As part of the acquisition of Smarteq on April 30, 2021, the Company assumed an office lease. The office in Kista, Sweden has 4,080 square feet used for engineering, sales, and administration and the lease term is through July 31, 2023 . On the acquisition date, the Company recorded $ 0.2 million for each of the right-of-use assets and the lease liabilities. In connection with the acquisition of Smarteq, the Company assumed a five-year euro-denominated loan of approximately $ 0.1 million with an interest rate of 0.57 % and due in monthly installments from June 2022 until the loan term ends in May 2026 . The loan was part of a program from the French Ministry of Economy and Finance to support French businesses during the COVID-19 pandemic. In September 2022, the Company repaid the principal of the loan and all interest due. The Company recorded net deferred tax assets of $ 2.4 million, primarily relating to deferred tax assets for net operating losses. The Company also booked a deferred tax asset for inventory reserves and deferred tax liabilities related to intangible asset amortization that is not deductible for income taxes. As of the acquisition date, the Company booked a full valuation allowance against the net deferred tax assets. While the Company expects book and tax profits in 2022 and future periods, Smarteq has recorded a three-year cumulative tax loss before the acquisition. Based on this objective evidence and uncertainty associated with the COVID-19 pandemic, the Company recorded a full valuation allowance on the opening balance sheet. In September 2022, the Company reversed $ 0.4 million of the valuation allowance in recognition of the performance of and expectations for the Smarteq business. Goodwill recorded in connection with the acquisition was $ 3.2 million. The Company did not deduct any of the acquired goodwill for tax purposes. The Company recorded $ 0.3 million of transaction costs in general and administrative expenses in the statement of operations. The transaction costs were not deductible for income tax purposes. Supplemental pro forma financial information The following unaudited pro forma financial information presents the combined results of operations for each of the periods presented as if the Smarteq acquisition had occurred as of January 1, 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Revenue - pro forma combined $ 25,988 $ 22,411 $ 73,506 $ 64,517 Net Income - pro forma combined 1,972 797 905 493 Weighted Average Shares: Basic 18,166 17,945 18,099 18,078 Diluted 18,187 17,962 18,214 18,078 Net Income (Loss) per Share: Basic $ 0.11 $ 0.04 $ 0.05 $ 0.03 Diluted $ 0.11 $ 0.04 $ 0.05 $ 0.03 The following adjustments were included in the unaudited pro forma combined net revenues: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Revenue $ 25,988 $ 22,411 $ 73,506 $ 61,799 Add: Net Revenue - acquired business 0 0 0 2,718 Net Revenue - pro forma combined $ 25,988 $ 22,411 $ 73,506 $ 64,517 The following adjustments were included in the unaudited pro forma combined net income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Income (Loss) $ 1,972 $ 664 $ 819 $ ( 167 ) Add: Results of operations of acquired business 0 0 0 183 Less: pro forma adjustments Amortization of intangibles 0 3 0 ( 226 ) Inventory fair value adjustments 0 133 0 416 Acquisition related expenses 0 0 86 304 Interest income 0 ( 3 ) 0 ( 17 ) Net Income - pro forma combined $ 1,972 $ 797 $ 905 $ 493 The unaudited pro forma financial information has been adjusted to reflect the amortization expense for acquired intangibles, removal of historical intangible asset amortization and recognition of expense associated with the step-up of inventory. The pro forma data is presented for illustrative purposes only, and the historical results of Smarteq are based on its books and records prior to the acquisition and is not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred as of January 1, 2021. In addition, future results may vary significantly from the pro forma results reflected herein and should not be relied upon as an indication of the results of future operations of the combined business. The unaudited pro forma financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquired entity. |
Cash, Cash Equivalents and Inve
Cash, Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2022 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | 5. Cash, Cash Equivalents and Investments The Company’s cash, cash equivalents, and investments consisted of the following: September 30, December 31, 2022 2021 Cash $ 4,235 $ 6,789 Cash equivalents 1,623 1,403 Short-term investments 22,147 22,562 Total $ 28,005 $ 30,754 Cash and Cash Equivalents At September 30, 2022 and December 31, 2021, cash and cash equivalents included bank balances and investments with original maturities of less than 90 days. At September 30, 2022 and December 31, 2021, the Company’s cash equivalents were invested in highly liquid AAA rated money market funds that are required to comply with Rule 2a-7 of the Investment Company Act of 1940. Such funds utilize the amortized cost method of accounting, seek to maintain a constant $ 1.00 per share price, and are redeemable upon demand. The Company restricts its investments in AAA money market funds to those invested 100 % in either short-term U.S. government agency securities or bank repurchase agreements collateralized by these same securities. The fair values of these money market funds are established through quoted prices in active markets for identical assets (Level 1 inputs). The Company’s cash in U.S. banks is insured by the Federal Deposit Insurance Corporation up to the insurable limit of $ 250 . The cash in foreign accounts was as follows: September 30, December 31, 2022 2021 China $ 2,439 $ 2,801 Europe 1,445 1,108 Total $ 3,884 $ 3,909 As of September 30, 2022, the Company has no intention of repatriating the cash in its foreign bank accounts. If the Company decides to repatriate the cash in the foreign bank accounts, it may have trouble doing so in a timely manner. The Company may also be exposed to foreign currency fluctuations and taxes if it repatriates these funds. Investments At September 30, 2022 and December 31, 2021, the Company’s investments consisted of corporate bonds with ratings at the purchase date of A or higher and certificates of deposit. The investments at September 30, 2022 and December 31, 2021 were classified as held-to-maturity. The bonds and certificates of deposit classified as short-term investments have original maturities greater than 90 days and mature within one year . The Company’s bond investments are recorded at the purchase price and carried at amortized cost. Under ASU 2016-13, the Company classifies its held-to-maturity investment portfolio by the investment type and further classifies the corporate bonds by the bond ratings. For estimating potential credit losses, the Company considers historical loss data and bond rating, as well as current and future economic conditions. Cash equivalents and investments were as follows at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 1,623 $ 0 $ 1,623 $ 1,403 $ 0 $ 1,403 Total cash equivalents $ 1,623 $ 0 $ 1,623 $ 1,403 $ 0 $ 1,403 Short-term investments: Corporate bonds $ 0 $ 21,044 $ 21,044 $ 0 $ 19,659 $ 19,659 Certificates of deposit 1,103 0 1,103 2,903 0 2,903 Total short-term investments $ 1,103 $ 21,044 $ 22,147 $ 2,903 $ 19,659 $ 22,562 Cash equivalents and investments - book value $ 2,726 $ 21,044 $ 23,770 $ 4,306 $ 19,659 $ 23,965 Unrealized gains (losses) $ 0 $ ( 27 ) $ ( 27 ) $ 1 $ ( 2 ) $ ( 1 ) Cash equivalents and investments - fair value $ 2,726 $ 21,017 $ 23,743 $ 4,307 $ 19,657 $ 23,964 The Company categorizes its financial instruments within a fair value hierarchy according to accounting guidance for fair value. The fair value hierarchy is described under the Fair Value of Financial Instruments in Note 2. For the Level 1 investments, the Company uses fair value estimates based on quoted prices in active markets for identical assets or liabilities. For the Level 2 investments, the Company uses quoted prices of similar assets in active markets. The fair values in the table above reflect net unrealizable losses of $ 27 at September 30, 2022, and net unrealized losses of $ 1 at December 31, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The change in the carrying amount of goodwill during the nine months ended September 30, 2022 is as follows: Amount Balance at December 31, 2021 $ 6,334 Foreign currency translation ( 556 ) Balance at September 30, 2022 $ 5,778 The Company performs an annual impairment test of goodwill as of the end of the first month of the fourth fiscal quarter (October 31), or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred. In performing the annual impairment test, the Company may consider qualitative factors that would indicate possible impairment. A quantitative fair value assessment is also performed at the reporting unit level. If the fair value exceeds the carrying value, then goodwill is not impaired, and no further testing is performed. If the carrying value exceeds the fair value, the implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment. In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company considered the current and expected future economic and market conditions, including those related to the COVID-19 pandemic and their impact on each of the reporting units. Further, the Company assessed the current market capitalization and financial forecasts. There were no triggering events during the nine months ended September 30, 2022 or September 30, 2021. The Company will continue to monitor goodwill for impairment going forward. Intangible Assets The Company amortized intangible assets with finite lives on a straight-line basis over the estimated useful lives, which ranged from one to five years . The summary of amortization expense in the condensed consolidated statement of operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 17 $ 21 $ 56 $ 36 Operating expenses 63 80 201 135 Total $ 80 $ 101 $ 257 $ 171 The summary of other intangible assets, net is as follows: September 30, 2022 December 31, 2021 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Customer contracts and relationships $ 17,474 $ 17,049 $ 425 $ 17,609 $ 16,978 $ 631 Patents and technology 9,974 9,737 237 10,049 9,698 351 Trademarks and trade names 1,453 1,108 345 1,563 1,051 512 Other intangible assets 90 39 51 110 25 85 Total $ 28,991 $ 27,933 $ 1,058 $ 29,331 $ 27,752 $ 1,579 In April 2021, the Company recorded $ 2.0 million of finite-lived intangible assets for the acquisition of Smarteq, and during the nine months ended September 30, 2022, the Company recorded amortization expense of $ 0.3 million and foreign currency translation adjustment of $ 0.2 million. Prior to the acquisition of Smarteq in April 2021, the Company’s intangible assets were fully amortized as of February 2020. During the three months ended September 30, 2021, the Company recorded amortization expense of $ 0.1 million. The assigned lives and weighted average amortization periods by intangible asset category are summarized below: Intangible Assets Assigned Life Weighted Customer contracts and relationships 5 years 5.0 Patents and technology 5 years 5.0 Trademarks and trade names 5 years 5.0 Other intangible assets .5 to 5 years 3.6 The future amortization expenses are as follows: Fiscal Year Amount 2022 (remaining three months) $ 76 2023 305 2024 293 2025 288 2026 96 Thereafter 0 Total $ 1,058 |
Balance Sheet Information
Balance Sheet Information | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance Sheet Information | 7. Balance Sheet Information Accounts Receivable Accounts receivable are recorded at invoiced amounts with standard net terms that range between 30 and 90 days. The Company extends credit to its customers based on an evaluation of a customer’s financial condition and collateral is generally not required. The Company records reserves for credit losses and credit allowances that reduce the value of accounts receivable to fair value. The allowances for accounts receivable consisted of the following: September 30, 2022 December 31, 2021 Credit loss provision $ 89 $ 26 Credit allowances 54 38 Total allowances $ 143 $ 64 The Company is exposed to credit losses primarily through the sale of products. The Company’s methodology for expected losses on accounts receivable uses historical collection experience, current and future economic market conditions, and a review of the current status of customers’ trade accounts receivable. Due to the short-term nature of accounts receivable, the estimate of the amount of accounts receivable that may not be collected is based on aging of the account receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company’s monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. The Company’s allowance for credit losses was $ 89 at September 30, 2022 and $ 26 at December 31, 2021. The following table summarizes the allowance for credit losses activity during the nine months ended September 30, 2022: Balance at December 31, 2021 $ 26 Current period expense for credit losses 63 Balance at September 30, 2022 $ 89 Inventories Inventories are stated at the lower of cost or net realizable value and include material, labor and overhead costs using the first-in, first-out method of costing. Inventories as of September 30, 2022 and December 31, 2021 were composed of raw materials, work-in-process and finished goods. The Company had consigned inventory with customers of $ 0.3 million and $ 0.4 million at September 30, 2022 and December 31, 2021, respectively. The Company records allowances to reduce the value of inventory to the lower of cost or net realizable value, including allowances for excess and obsolete inventory. Reserves for excess inventory are calculated based on an estimate of inventory in excess of normal and planned usage. Obsolete reserves are based on identification of inventory where the carrying value is above net realizable value. The allowance for inventory losses was $ 3.1 million at September 30, 2022 and $ 4.1 million at December 31, 2021. Inventories, net consisted of the following: September 30, 2022 December 31, 2021 Raw materials $ 7,430 $ 6,171 Work-in-process 1,275 690 Finished goods 8,025 6,830 Inventories, net $ 16,730 $ 13,691 Prepaid Expenses and Other Assets Prepaid assets are stated at cost and are amortized over the useful lives (up to one year ) of the assets. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. The Company depreciates computer equipment and software licenses over three to five years ; office equipment, manufacturing and test equipment, and motor vehicles over five years ; furniture and fixtures over seven years ; and buildings over 30 years . Leasehold improvements are amortized over the shorter of the corresponding lease term or useful life. Depreciation expense and gains and losses on the disposal of property and equipment are included in cost of revenues and operating expenses in the condensed consolidated statements of operations. Maintenance and repairs are expensed as incurred. Property and equipment consisted of the following: September 30, 2022 December 31, 2021 Building $ 6,922 $ 6,892 Computers and office equipment 10,189 10,604 Manufacturing and test equipment 14,692 16,305 Furniture and fixtures 1,446 1,455 Leasehold improvements 1,965 3,021 Motor vehicles 20 20 Total property and equipment 35,234 38,297 Less: Accumulated depreciation and amortization ( 26,704 ) ( 28,118 ) Land 1,770 1,770 Property and equipment, net $ 10,300 $ 11,949 Depreciation and amortization expense was approximately $ 0.7 million and $ 0.8 million for the three months ended September 30, 2022 and 2021, respectively. Depreciation and amortization expense was approximately $ 2.2 million and $ 2.3 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization for finance leases is included in depreciation and amortization expense. See Note 11 for information related to finance leases. Liabilities Accrued liabilities consisted of the following: September 30, 2022 December 31, 2021 Accrued receipts $ 3,230 $ 4,302 Payroll and other employee benefits 2,822 2,266 Paid time off 1,343 1,284 Right of use assets 553 537 Employee stock purchase plan 471 253 Deferred revenues 441 538 Income and sales taxes 314 415 Warranties 309 257 Customer refunds for estimated returns 301 248 Professional fees and contractors 295 233 Real estate taxes 119 156 Restructuring 0 368 Other 420 260 Total $ 10,618 $ 11,117 Long-term liabilities consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 3,252 $ 3,600 Finance leases 60 92 Deferred revenue 190 181 Other 31 126 Total $ 3,533 $ 3,999 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation The condensed consolidated statements of operations include $ 1.1 million and $ 0.4 million of stock compensation expense for the three months ended September 30, 2022 and 2021, respectively. The condensed consolidated statements of operations include $ 3.0 million and $ 2.0 million of stock compensation expense for the nine months ended September 30, 2022 and 2021, respectively. The Company accounts for forfeitures as they occur. The stock-based compensation expense by type is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service-based awards $ 447 $ 341 $ 1,150 $ 1,435 Performance-based awards (short-term incentive plan) 346 ( 196 ) 689 0 Performance-based awards (long-term incentive plan) 278 160 949 394 Employee stock purchase plan 76 67 219 200 Total $ 1,147 $ 372 $ 3,007 $ 2,029 Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 61 $ 51 $ 156 $ 185 Research and development 163 102 472 384 Sales and marketing 241 73 694 458 General and administrative 682 146 1,685 1,002 Total $ 1,147 $ 372 $ 3,007 $ 2,029 The following table presents a summary of the remaining unrecognized share-based compensation expense related to outstanding share-based awards as of September 30, 2022: Award Type Remaining Unrecognized Compensation Expense Weighted Average Life (Years) Service-based awards $ 1,946 1.3 Performance-based awards $ 2,161 1.7 Service-Based Awards Restricted Stock The Company grants both service-based and performance-based stock awards to employees pursuant to the PCTEL, Inc. 2019 Stock Incentive Plan. When service-based restricted stock is granted, the Company records deferred stock compensation within additional paid-in capital, representing the fair value of the common stock on the date the restricted shares are granted. The Company records stock compensation expense on a straight-line basis over the vesting period of the applicable service-based restricted shares. For the annual awards granted to executives and key managers in the nine months ended September 30, 2022 and 2021, respectively, the Company awarded long-term incentives comprised of one-third service-based restricted stock and two-thirds performance-based restricted stock. The Company awarded service-based restricted stock to all other participating employees. The following table summarizes service-based restricted stock activity for the nine months ended September 30, 2022: Shares Weighted Unvested Restricted Stock Awards - December 31, 2021 326,336 $ 7.76 Shares awarded 233,744 4.66 Shares vested ( 166,473 ) 7.30 Shares cancelled ( 3,285 ) 5.85 Unvested Restricted Stock Awards - September 30, 2022 390,322 $ 6.12 The intrinsic value of service-based restricted shares that vested during the nine months ended September 30, 2022 and 2021 was $ 0.8 million and $ 2.2 million, respectively. Restricted Stock Units The Company grants service-based restricted stock units as employee incentives. Restricted stock units are primarily granted to foreign employees for long-term incentive purposes. Employee restricted stock units are service-based awards and are amortized over the vesting period. At the vesting date, these units are converted to shares of common stock. The Company records expense on a straight-line basis for restricted stock units. The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2022: Shares Weighted Unvested Restricted Stock Units - December 31, 2021 21,437 $ 7.23 Units awarded 26,667 4.40 Units vested/Shares awarded ( 4,501 ) 7.33 Units cancelled ( 2,000 ) 6.98 Unvested Restricted Stock Units - September 30, 2022 41,603 $ 5.42 The intrinsic value of service-based restricted stock units that vested and were issued as shares during the nine months ended September 30, 2022 and 2021 was $ 21 and $ 42 , respectively. Stock Options The Company may grant employees stock options to purchase common stock. The Company issues stock options with exercise prices no less than the fair value of the Company’s stock on the grant date. Employee stock options are subject to installment vesting. Stock options may be exercised at any time prior to their expiration date or within 180 days of termination of employment, or such shorter time as may be provided in the related stock option agreement. The stock options outstanding at September 30, 2022 have a seven-year life. There was no activity related to stock options during the third quarter of 2022. The following table summarizes information about stock options outstanding under all stock option plans at September 30, 2022: Options Outstanding Options Exercisable Range of Number Weighted Intrinsic Value Weighted Number Weighted Intrinsic Value Weighted $ 5.06 - $ 6.98 4,000 1.67 $ 0 $ 6.02 4,000 1.67 $ 0 $ 6.02 The intrinsic value is based on the share price of $ 4.72 on September 30, 2022. For outstanding employee stock options, the Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model. Because the Company’s employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, the existing models may not necessarily provide a reliable single measure of the fair value of the employee stock options. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility and expected option life. The dividend yield rate is calculated by dividing the Company’s annual dividend by the closing price on the grant date. The risk-free interest rate is based on the U.S. Treasury yields with a remaining term that approximates the expected life of the options granted. The expected volatility is based on a five-year historical period of the Company’s stock price. The expected life for options granted is based on historical data of employee exercise performance. The Company records expense based on the graded vesting method. Performance-Based Equity Awards Short-Term Incentive Plan The Company granted short-term inventive awards to executives, key managers, and non-sales employees under the Company’s 2022 Short-Term Incentive Plan (“STIP”) based on upon achievement of specifically identified corporate annual 2022 adjusted EBITDA and revenue goals. The 2022 STIP awards, like the 2021 STIP awards, will be paid 50 % in cash and 50 % in the Company’s stock. In the first quarter 2022, the Board of Directors exercised its discretion to approve bonus awards. The first quarter 2022 bonus was equal to those payable for achievement of the 2021 STIP adjusted EBITDA goal at the threshold level. No awards were received by 2021 STIP participants with respect to the revenue goal. These payments were made during the first quarter 2022, 50% in the Company’s common stock for a total of $ 0.3 million and 50% in cash for executives and key managers and 100 % in cash for all other participants. Long-Term Incentive Plan The Company grants performance-based awards to executives and key managers to encourage sustainable growth, consistent earnings, and management retention. Based on the fair value of the shares on the grant date, the Company records stock compensation expense over the performance period based on the estimated achievement of the award. The following table summarizes the performance award activity: Awards at Target Weighted Unvested Performance Awards - December 31, 2021 333,153 $ 8.44 Awards granted 269,618 4.84 Awards cancelled ( 18,800 ) 8.01 Unvested Performance Awards - September 30, 2022 583,971 $ 6.79 The Company granted performance awards under its long-term incentive plan to executives and key managers in February 2022 (“2022 LTIP”). The performance period for the 2022 LTIP is from January 1, 2022 through December 31, 2024 . At target, the total fair market value of the award was $ 1.3 million based on the average share price of $ 4.84 on the grant date. On the award date, the aggregate number of shares that could be earned at target was 269,618 and the maximum number of aggregate shares that could be earned was 471,832 . Under the 2022 LTIP and similar plans from 2021 and 2020, shares of the Company’s stock can be earned based on achievement of a three-year revenue growth target with a penalty if a certain Adjusted EBITDA level is not maintained. If the Company achieves less than the target growth over the performance period, the participant will receive fewer shares than the target award, determined on a straight-line basis. If the Company achieves greater than the target growth, the participant will receive more shares than the target award on an accelerated basis. Participants are required to be in service at the determination date of the award following the end of the performance period in order to receive the award. Shares earned will be fully vested shares. The Company records stock compensation expense over the performance period based on the Company’s estimate of the aggregate number of shares that will be earned under the incentive plan. The following table summarizes the active performance-based long-term incentive plans at September 30, 2022: Number of Shares Share Price That Could Be Earned: LTIP award on Grant Date Target Maximum Performance Period 2020 LTIP $ 8.70 135,889 237,806 January 1, 2020 through December 31, 2022 2021 LTIP $ 8.25 179,797 314,645 January 1, 2021 through December 31, 2023 2022 LTIP $ 4.84 268,285 469,499 January 1, 2022 through December 31, 2024 583,971 1,021,950 Employee Stock Purchase Plan (“ESPP”) The ESPP enables eligible employees to purchase common stock at the lower of 85 % of the fair market value of the common stock on the first or last day of each offering period. Each offering period is approximately six months . Based on the 15 % discount and the fair value of the option feature of the ESPP, it is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company calculated the fair value of each employee stock purchase grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Employee Stock Purchase Plan 2022 2021 Dividend yield 4.7 % 3.1 % Risk-free interest rate 1.7 % 0.1 % Expected volatility 48 % 48 % Expected life (in years) 0.5 0.5 The dividend yield rate was calculated by dividing the Company’s annual dividend by the closing price on the grant date. The risk-free interest rate was based on the U.S. Treasury yields with a remaining term that approximates the expected life of the options granted. The volatility was based on a five-year historical period of the Company’s stock price. The expected life was based on the offering period. Board of Director Equity Awards The Company grants equity awards to members of its Board of Directors as an annual retainer and for committee service. These awards are shares of the Company’s stock that vest one year after issuance. In addition, new directors receive a one-time grant that vests over three years . In May 2022, the Company issued 120,768 shares to directors for their annual retainer and committee services. In July 2022, in conjunction with the changes in the directors serving as Chairman of the Board and the Audit Committee Chair positions, an additional 4,033 shares were issued and 4,105 shares were cancelled. The fair value of the service-based restricted shares for directors that vested during the nine months ended September 30, 2022 was $ 47 . The following table summarizes the director awards activity: Shares Weighted Outstanding - December 31, 2021 11,534 $ 6.57 Shares awarded 124,801 4.02 Shares vested ( 11,534 ) 6.57 Shares cancelled ( 4,105 ) 4.02 Outstanding - September 30, 2022 120,696 $ 4.02 Employee Withholding Taxes on Stock Awards For ease in administering the issuance of stock awards, the Company withholds shares of vested restricted stock awards, stock option exercises and short-term and long-term incentive plan stock awards for taxes. The Company withholds the number of shares it computes as having the value of the relevant withholding tax and remits the tax payment to the appropriate tax authority. For withholding taxes related to stock awards, the Company paid $ 0.4 million and $ 0.8 million during the nine months ended September 30, 2022 and 2021, respectively. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 9. Benefit Plans Employee Benefit Plans The Company’s 401(k) plan covers all U.S. employees beginning the first day of the month following the first month of their employment. Under this plan, employees may elect to contribute up to 15 % of their current compensation to the 401(k) plan up to the statutorily prescribed annual limit. The Company matches employee contributions up to 4 % of compensation and may also make discretionary contributions to the 401(k) plan. The Company also contributes to various retirement plans for foreign employees. The Company’s contributions to retirement plans during the three and nine months ended September 30, 2022 and 2021, respectively, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 PCTEL, Inc. 401(k) profit sharing plan - US employees $ 187 $ 184 $ 593 $ 540 Defined contribution plans - Foreign employees 55 115 190 322 Total $ 242 $ 299 $ 783 $ 862 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Tianjin Manufacturing Restructuring Due to uncertainties with its Tianjin facility lease and to optimize the cost structure of the antenna product line and create flexibility in antenna manufacturing, the Company initiated a restructuring plan in 2019 to transition manufacturing from its Tianjin, China facility primarily to contract manufacturers in China. The Company substantially completed the transition in the first quarter 2022. For the nine months ended September 30, 2022, the Company incurred restructuring expenses of $ 1.3 million, including $ 1.2 million for employee severance and benefits related to the separation of 78 employees and $ 0.1 million related to fixed assets and facilities. Severance costs were paid from the Company’s cash in its China bank accounts. When the facility transition was completed in April 2022, the Company vacated the Tianjin manufacturing facility and relocated a small team of employees associated with sourcing, quality, and local customer support in a new leased facility in Tianjin, China. See Note 11 for additional information on the Tianjin lease. Beijing Restructuring As a cost saving initiative, the Company separated 14 employees from its Beijing office in November 2021. The terminated positions were primarily related to antenna engineering and sales support. The Company incurred restructuring expenses of $ 0.8 million consisting of employee severance and related employee benefits and for professional fees associated with employee separations. The Company engaged four former Beijing employees through a third-party employment agency to provide sales and engineering support. In January 2022, the Company paid $ 0.4 million related to severance benefits accrued at December 31, 2021. The following table summarizes the restructuring activity and the status of the reserves during the nine months ended September 30, 2022: Tianjin Manufacturing Beijing Total Balance at December 31, 2021 $ 0 $ 368 $ 368 Restructuring expense 1,309 0 1,309 Payments made ( 1,309 ) ( 368 ) ( 1,677 ) Balance at September 30, 2022 $ 0 $ 0 $ 0 The restructuring liability at December 31, 2021 is recorded in accrued liabilities on the accompanying condensed consolidated balance sheet. Warranty Reserve and Sales Returns The Company allows its major distributors and certain other customers to return unused product under specified terms and conditions. The Company accrues for product returns based on historical sales and return trends. The refund liability related to estimated sales returns was $ 0.3 million and $ 0.2 million at September 30, 2022 and December 31, 2021, respectively, and is included within accrued liabilities on the accompanying condensed consolidated balance sheets. The Company offers repair and replacement warranties of up to five years for certain antenna products and test & measurement products. The Company’s warranty reserve is based on historical sales and costs of repair and replacement trends. The warranty reserve was $ 0.3 million at September 30, 2022 and 2021, respectively, and is included in accrued liabilities in the accompanying condensed consolidated balance sheets. The following table summarizes the warranty activity during the nine months ended September 30, 2022 and 2021: Nine Months Ended September 30, 2022 2021 Beginning balance $ 257 $ 285 Provisions for warranties 162 64 Consumption of reserves ( 110 ) ( 77 ) Ending balance $ 309 $ 272 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | 11. Leases The Company has operating leases for facilities and finance leases for office equipment. Leases with an initial term of 12 months or less are not recorded in the balance sheet. The Company determines if an arrangement is a lease at inception of a contract. Right of Use (“ROU”) assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term is deemed to include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. ROU assets also include any advance lease payments made and exclude lease incentives. As most of the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on a collateralized basis. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term. The Company's lease cost for the three and nine months ended September 30, 2022 and 2021, respectively, included the following components: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease costs $ 119 $ 121 $ 377 $ 333 Short-term lease costs 10 41 60 123 Variable lease costs 2 5 4 9 Amortization of finance lease assets 12 18 47 53 Interest on finance lease liabilities 1 2 4 6 Total lease cost $ 144 $ 187 $ 492 $ 524 The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases recorded on the balance sheet as of September 30, 2022: Year Operating Leases Finance Leases 2022 (remaining three months) $ 131 $ 13 2023 668 44 2024 591 33 2025 501 15 2026 494 5 Thereafter 2,180 0 Total minimum payments required 4,565 110 Less: amount representing interest ( 804 ) ( 6 ) Present value of net minimum lease payments 3,761 104 Less: current maturities of lease obligations ( 509 ) ( 44 ) Long-term lease obligations $ 3,252 $ 60 The weighted average remaining lease terms and discount rates for all the Company’s operating and finance leases were as follows as of September 30, 2022: September 30, 2022 Weighted-average remaining lease term - finance leases 2.7 years Weighted-average remaining lease term - operating leases 7.8 years Weighted-average discount rate - finance leases 4.0 % Weighted-average discount rate - operating leases 5.0 % The table below presents supplemental cash flow information related to leases during the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 167 $ 160 $ 553 $ 413 Operating cash flows for finance leases $ 1 $ 2 $ 4 $ 6 Financing cash flows for finance leases $ 11 $ 25 $ 48 $ 54 The following table summarizes the classification of ROU assets and lease liabilities as of September 30, 2022 and December 31, 2021: Leases Consolidated Balance Sheet Classification September 30, 2022 December 31, 2021 Assets: Operating right-of-use assets Other noncurrent assets $ 2,092 $ 2,289 Finance right-of-use assets Other noncurrent assets 99 148 Total leased assets $ 2,191 $ 2,437 Liabilities: Current Operating lease liabilities Accrued liabilities $ 509 $ 475 Finance lease liabilities Accrued liabilities 44 62 Noncurrent Operating lease liabilities Long-term liabilities 3,252 3,600 Finance lease liabilities Long-term liabilities 60 92 Total lease liabilities $ 3,865 $ 4,229 The Company completed the transition of antenna manufacturing from its Tianjin, China facility to contract manufacturers during 2022. In April 2022, the Company vacated the manufacturing facility and moved a small team of employees associated with sourcing, quality, and local customer support to a new leased facility in Tianjin, China. The Company entered into a two-year lease ending December 31, 2023 for 1,694 square feet of space in a new office located in Tianjin, China. The Company recognized a present value of the right of use asset of $ 0.1 million for this new office lease. As a cost saving initiative, the Company separated all 14 employees from its Beijing office in November 2021 and the Company closed this office in the first quarter of 2022. In April 2022, the Company entered into a two-year office lease ending April 30, 2024 for 350 square feet of office space. The Company recognized a present value of the right of use asset of $ 0.1 for this new office lease. Four former employees in Beijing were engaged through a third-party employment agency and will provide sales and technical support from the new smaller office. As part of the acquisition of Smarteq on April 30, 2021, the Company assumed an office lease and two automotive leases. The office in Kista, Sweden has 4,080 square feet used for engineering, sales, and administration with a lease term ending July 31, 2023 . On the acquisition date, the Company recorded $ 0.2 million for each of the ROU assets and the lease liabilities. In October 2022, the office lease was extended for 36 months ending July 31, 2026 . |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2022 | |
Subordinated Borrowings [Abstract] | |
Borrowings | 12. Borrowings As part of the Smarteq acquisition, the Company assumed a five-year euro-denominated loan of approximately $ 0.1 million with an interest rate of 0.57 % and originally due in monthly installments from June 2022 until May 2026 . The loan was part of a program from the French Ministry of Economy and Finance as financial support for French businesses during the COVID-19 pandemic. In September 2022, the Company repaid the principal and interest due on the loan. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company recorded an income tax benefit of $ 0.4 million for the nine months ended September 30, 2022, and income tax expense of $ 17 for the nine months ended September 30, 2021. The income tax benefit recorded for the nine months ended September 30, 2022 differs from the statutory rate primarily because it reflects a $ 0.4 million benefit related to a partial reversal of the valuation allowance, established in connection with the acquisition of Smarteq, for Swedish deferred tax assets. The expense recorded for the nine months ended September 30, 2021 differed from the Federal statutory rate of 21 % primarily because the Company maintains a full valuation allowance on its deferred tax assets in all jurisdictions. The Company’s valuation allowances are due to uncertainty regarding the utilization of the deferred tax assets. The Company had deferred tax assets net of deferred tax liabilities of $ 14.6 million at September 30, 2022 and $ 15.3 million at December 31, 2021. By jurisdiction at September 30, 2022, $ 11.9 million was associated with the U.S., $ 1.1 million was associated with China, and $ 1.6 million was associated with Sweden. The Company’s gross deferred tax assets consist of federal and state net operating losses (“NOLs”), credits, and timing differences. On a regular basis, the Company evaluates the recoverability of deferred tax assets and the need for a valuation allowance. Such evaluations involve the application of significant judgment. The Company considers multiple factors in its evaluation of the need for a valuation allowance. The Company’s federal NOLs generated in 2018 and later periods will not expire, but the Company’s NOLs generated through December 31, 2017 have a finite life primarily based on the 20 -year carry forward of federal net operating losses. The timing differences have a ratable reversal pattern over 12 years . The Company has met its projections in 2022, but did not meet its projections in 2020 or 2021. While the Company believes its financial outlook remains positive, the Company’s performance versus its projections in both of the prior two years is considered significant negative evidence that is difficult to overcome on a “more likely than not” standard in the current year through objectively verifiable data. Under the accounting standards, objective verifiable evidence has greater weight than subjective evidence such as the Company’s projections for future growth. In addition, the Company faces uncertainties from recent macroeconomic trends, including inflationary pressures, the economic downturn and the potential for a recession. As a result of all these factors, the Company maintained a full valuation allowance on its U.S. deferred tax assets at September 30, 2022. The pre-tax profits for the Sweden jurisdiction were positive in 2021 and have increased in 2022 due to higher revenues and profit margins. With revenue from new and existing customers, the revenue and profit forecast has increased for 2023. The Company considers the three-year cumulative income in the Sweden jurisdiction and the fact that the Company exceeded its projections associated with the Sweden jurisdiction for 2021 and 2022 as positive evidence of the ability to utilize a portion of its deferred tax assets. Thus, the Company recorded a partial reversal of the valuation allowance for the deferred tax assets associated with the Sweden jurisdiction. Until an appropriate level of profitability is attained, the Company expects to maintain a full valuation allowance on its U.S. and China net deferred tax assets and a partial valuation allowance on its Sweden net deferred tax assets. Any U.S. or Chinese tax benefits or tax expense recorded on its consolidated statements of operations will be offset with a corresponding valuation allowance until such time that the Company changes its determination related to the realization of deferred tax assets. In the event that the Company changes its determination as to the amount of deferred tax assets that can be realized, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such a determination is made. The analysis that the Company prepared to determine the valuation allowance required significant judgment and assumptions regarding future market conditions as well as forecasts for profits, taxable income, and taxable income by jurisdiction. Due to the sensitivity of the analysis, changes to the assumptions in subsequent periods could have a material effect on the valuation allowance. The Company files a consolidated federal income tax return, income tax returns with various states, and foreign income tax returns in various foreign jurisdictions. The Company’s U.S. federal tax returns remain subject to examination for 2018 and subsequent periods. The Company’s U.S. state tax returns remain subject to examination for 2017 and subsequent periods. The Company’s foreign tax returns remain subject to examination for 2011 and subsequent periods. The Company’s gross unrecognized tax benefit was $ 0.8 million at September 30, 2022 and December 31, 2021. On March 27, 2020, the “Coronavirus Aid, Relief and Economic Security Act” (CARES Act) was signed into law. The CARES Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. Under the CARES Act, the Company deferred the employer portion of social security taxes and applied for a refund of its Alternative Minimum Tax credit. As of September 30, 2022, the Company had deferred $ 0.2 million of payroll taxes which will be paid by December 31, 2022. |
Product Line and Geographic Inf
Product Line and Geographic Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Product Line and Geographic Information | 14. Product Line and Geographic Information Product Line Information: The following tables are the product line revenues and gross profits for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 18,653 $ 7,683 $ ( 348 ) $ 25,988 Gross Profit $ 6,562 $ 5,544 $ ( 170 ) $ 11,936 Gross Profit % 35.2 % 72.2 % NA 45.9 % Nine Months Ended September 30, 2022 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 53,310 $ 20,698 $ ( 502 ) $ 73,506 Gross Profit $ 17,435 $ 15,466 $ ( 205 ) $ 32,696 Gross Profit % 32.7 % 74.7 % NA 44.5 % Three Months Ended September 30, 2021 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 16,686 $ 5,921 $ ( 196 ) $ 22,411 Gross Profit $ 5,655 $ 4,635 $ ( 36 ) $ 10,254 Gross Profit % 33.9 % 78.3 % NA 45.8 % Nine Months Ended September 30, 2021 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 43,971 $ 18,540 $ ( 712 ) $ 61,799 Gross Profit $ 14,578 $ 14,057 $ ( 102 ) $ 28,533 Gross Profit % 33.2 % 75.8 % NA 46.2 % Geographic Information: The Company’s revenue from customers by geographic location, as a percent of total revenues for the three and nine months ended September 30, 2022 and 2021, is as follows: Three Months Ended September 30, Nine Months Ended September 30, Region 2022 2021 2022 2021 Europe, Middle East & Africa 20 % 23 % 21 % 23 % Asia Pacific 7 % 9 % 6 % 8 % Other Americas 3 % 3 % 3 % 4 % Total Foreign sales 30 % 35 % 30 % 35 % Customer Concentration: The following table represents the customers that accounted for 10% or more of revenues during the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, Revenues 2022 2021 2022 2021 Customer C 18 % 5 % 15 % 8 % Customer A 11 % 2 % 9 % 4 % The following table represents the customers that accounted for 10% or more of total trade accounts receivable: Trade Accounts Receivable September 30, 2022 December 31, 2021 Customer A 27 % 5 % Customer C 9 % 9 % |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contracts with Customers | 15. Revenue from Contracts with Customers Under Topic 606, a contract with a customer is an agreement that both parties have approved, that creates enforceable rights and obligations, has commercial substance, and specified payment terms, and for which collectability is probable. Once the Company has entered into a contract, it is evaluated to identify performance obligations. For each performance obligation, revenue is recognized as control of promised goods or services transfers to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. The amount of revenue recognized takes into account variable consideration, such as returns and volume rebates. A majority of the Company’s revenue is short cycle in nature with shipments within one year from order. The Company's payment terms generally range between 30 to 90 days. All of the Company’s revenue relates to contracts with customers. The Company’s accounting contracts are from purchase orders or purchase orders combined with purchase agreements. The majority of the Company’s revenue is recognized on a “point-in-time” basis and a nominal amount of revenue is recognized “over time”. For the sale of antenna products and test & measurement products, the Company satisfies its performance obligations generally at the time of shipment or upon delivery based on the contractual terms with its customers. For products shipped on consignment, the Company recognizes revenue upon delivery from the consignment location. For its test & measurement software tools, the Company has a performance obligation to provide software maintenance and support for one year . The Company recognizes revenues for the maintenance and support over this period. The Company considers shipping and handling performed by the Company as fulfillment activities. Amounts billed for shipping and handling are included in revenues, while costs incurred for shipping and handling are included in cost of revenues. The Company excludes taxes from the transaction price. Cost of contracts include sales commissions. The Company expenses the cost of contracts when incurred because the amortization period is one year or less. The Company allows its major distributors and certain other customers to return unused product under specified terms and conditions. The Company estimates product returns based on historical sales and return trends and records a corresponding refund liability. The refund liability was $ 0.3 million and $ 0.2 million at September 30, 2022 and December 31, 2021, respectively, and is included within accrued liabilities in the accompanying condensed consolidated balance sheets. The Company records an asset based on historical experience for the amount of product it expects to return to inventory as a result of customer returns, which is recorded in inventories in the accompanying condensed consolidated balance sheets. The product return asset was $ 0.1 million at September 30, 2022 and December 31, 2021. There were no contract assets at September 30, 2022 or December 31, 2021. The Company records contract liabilities for deferred revenue and customer prepayments. Contract liabilities are recorded in accrued liabilities in the accompanying condensed consolidated balance sheets. The contract liability was $ 0.7 million and $ 0.9 million at September 30, 2022 and December 31, 2021, respectively. The Company recognized revenue of $ 1.2 million and $ 0.7 million during the nine months ended September 30, 2022 and 2021, respectively, related to contract liabilities that existed at the beginning of the period. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events The Company evaluates subsequent events occurring between the most recent balance sheet date and the date that the financial statements are available to be issued in order to determine whether the subsequent events are to be recorded and/or disclosed in the Company’s financial statements and footnotes. The financial statements are considered to be available to be issued at the time that they are filed with the SEC. There were no subsequent events or transactions that required recognition or disclosure in the unaudited interim condensed consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations PCTEL, Inc. (“PCTEL” or “the Company”) was incorporated in California in 1994 and reincorporated in Delaware in 1998. The Company is a leading global provider of wireless technology, including purpose-built Industrial IoT devices, antenna systems, and test and measurement solutions. PCTEL solves complex wireless challenges to help organizations stay connected, transform, and grow and it has expertise in RF, digital, and mechanical engineering. The Company has two businesses (antennas & Industrial IoT devices and test & measurement products). These businesses are supported by the Company’s talent and expertise in RF, digital, and mechanical engineering. The Company’s principal executive offices are located at 471 Brighton Drive, Bloomingdale, Illinois 60108. The telephone number at that address is (630) 372-6800 and the website is www.pctel.com. Additional information about the Company can be obtained on the Company’s website; however, the information within, or that can be accessed through, the Company’s website is not part of this Quarterly Report on Form 10-Q. |
Basis of Consolidation | Basis of Consolidation The unaudited interim condensed consolidated financial statements of the Company include the condensed consolidated balance sheets as of September 30, 2022 and December 31, 2021, the condensed consolidated statement of cash flows for the nine months ended September 30, 2022 and 2021, and the condensed consolidated statements of operations, condensed consolidated statements of comprehensive (loss) income, and the condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2022 and 2021, respectively. The interim condensed consolidated financial statements are unaudited and reflect all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair presentation of the interim period financial statements. The condensed consolidated balance sheet as of December 31, 2021 is derived from the audited financial statements as of December 31, 2021. The unaudited interim condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The significant accounting policies followed by the Company are set forth in the 2021 Form 10-K. There were no material changes in the Company’s significant accounting policies during the three and nine months ended September 30, 2022. In addition, the Company reaffirms the use of estimates in the preparation of the financial statements as set forth in the 2021 Form 10-K. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the 2021 Form 10-K. The results of operations for the period ended September 30, 2022 may not be indicative of the results for the period ending December 31, 2022. |
Foreign Operations | Foreign Operations Cross-border transactions, both with external parties and in our internal operations, result in exposure to foreign exchange rate fluctuations. We are exposed to currency risk by having foreign locations with suppliers and employees located outside the U.S. Fluctuations could have an adverse effect on our results of operations and cash flows. We manage certain operating activities at the local level with revenues, costs, assets, and liabilities generally being denominated in local currencies. However, our results of operations and assets and liabilities are reported in U.S. dollars and thus will fluctuate with changes in exchange rates between such local currencies and the U.S. dollar. Gains and losses resulting from transactions originally in foreign currencies and then translated into U.S. dollars are included in the condensed consolidated statements of operations. For the nine months ended September 30, 2022, approximately 11 % of revenues and 13 % of expenses were transacted in foreign currencies as compared to 9 % and 20 % for the nine months ended September 30, 2021. Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income, net were $ 114 and $( 10 ) for the three months ended September 30, 2022 and 2021, respectively. Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income, net were $ 187 and $( 54 ) for the nine months ended September 30, 2022 and 2021, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-14 Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The changes are effective for smaller reporting companies for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The Company does not expect the adoption of this standard to have an impact on our financial statements or the related disclosures. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This update provides optional expedients and exceptions for applying generally accepted accounting principles to certain contract modifications and hedging relationships that reference London Inter-bank Offered Rate (LIBOR) or another reference rate expected to be discontinued. Topic 848 is effective upon issuance and generally can be applied through December 31, 2022. The Company does not expect the adoption of this standard to have an impact on our financial statements or the related disclosures. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This update requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606 as if the acquirer had originated the contracts. This ASU should be applied prospectively to business combinations occurring on or after the effective date of the update. This update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period, but should be applied to all acquisitions occurring in the annual period of adoption. The Company does not expect the adoption of this standard to have an impact on our financial statements or the related disclosures. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This update clarifies the guidance in Topic 820 on the fair value measurement of an equity security that is subject to contractual restrictions that prohibit the sale of the equity security. This update also requires specific disclosures related to such an equity security including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. This ASU is effective for all public business entities in fiscal years beginning after December 15, 2023, and interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. |
Income (Loss) per Share (Tables
Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Income Per Share | The following table is the computation of basic and diluted income per share: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Basic Income Per Share computation: Numerator: Net Income (loss) $ 1,972 $ 664 $ 819 $ ( 167 ) Denominator: Weighted shares outstanding - basic 18,165,611 17,945,053 18,098,694 18,077,506 Net Income (loss) per common share - basic $ 0.11 $ 0.04 $ 0.05 $ ( 0.01 ) Diluted Income Per Share computation: Denominator: Weighted shares outstanding - basic 18,165,611 17,945,053 18,098,694 18,077,506 Restricted shares subject to vesting 21,394 16,633 115,013 0 Common stock option grants 70 0 46 0 Weighted shares outstanding - diluted 18,187,075 17,961,686 18,213,753 18,077,506 Net Income (loss) per common share - diluted $ 0.11 $ 0.04 $ 0.04 $ ( 0.01 ) |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combinations [Abstract] | |
Schedule of Fair Value Purchase Consideration | The following table summarizes the fair value of purchase consideration to acquire Smarteq: Fair value of purchase consideration Cash $ 6,785 Working capital adjustment ( 5 ) Total purchase consideration $ 6,780 |
Schedule of Fair Value Recognized Identified Assets Acquired and Liabilities Assumed | The following is an allocation of the purchase price as of the April 30, 2021 closing date based upon the fair value of the assets acquired and liabilities assumed by the Company in the acquisition: Purchase Price Allocation: Cash $ 503 Accounts receivable 1,415 Prepaid expenses and other assets 109 Inventories 1,286 Right of use assets 232 Property and equipment 131 Intangible assets 1,983 Accounts payable ( 981 ) Accrued liabilities ( 837 ) Lease liabilities - short-term ( 102 ) Lease liabilities - long-term ( 112 ) Debt ( 91 ) Identifiable assets acquired $ 3,536 Goodwill 3,244 Total purchase price $ 6,780 |
Schedule of Intangible Assets Acquired and Expected Lives for Finite-Lived Intangible Assets | The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets: Finite-lived assets: Customer relationships $ 787 Trade names 639 Technology 438 Other intangible assets 119 $ 1,983 Intangible Assets: Useful Life Customer relationships 5 years Trade names 5 years Technology 5 years Other intangible assets .5 to 5 years |
Supplemental Proforma Financial Information | The following unaudited pro forma financial information presents the combined results of operations for each of the periods presented as if the Smarteq acquisition had occurred as of January 1, 2021: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Revenue - pro forma combined $ 25,988 $ 22,411 $ 73,506 $ 64,517 Net Income - pro forma combined 1,972 797 905 493 Weighted Average Shares: Basic 18,166 17,945 18,099 18,078 Diluted 18,187 17,962 18,214 18,078 Net Income (Loss) per Share: Basic $ 0.11 $ 0.04 $ 0.05 $ 0.03 Diluted $ 0.11 $ 0.04 $ 0.05 $ 0.03 The following adjustments were included in the unaudited pro forma combined net revenues: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Revenue $ 25,988 $ 22,411 $ 73,506 $ 61,799 Add: Net Revenue - acquired business 0 0 0 2,718 Net Revenue - pro forma combined $ 25,988 $ 22,411 $ 73,506 $ 64,517 The following adjustments were included in the unaudited pro forma combined net income (loss): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net Income (Loss) $ 1,972 $ 664 $ 819 $ ( 167 ) Add: Results of operations of acquired business 0 0 0 183 Less: pro forma adjustments Amortization of intangibles 0 3 0 ( 226 ) Inventory fair value adjustments 0 133 0 416 Acquisition related expenses 0 0 86 304 Interest income 0 ( 3 ) 0 ( 17 ) Net Income - pro forma combined $ 1,972 $ 797 $ 905 $ 493 |
Cash, Cash Equivalents and In_2
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Investments | The Company’s cash, cash equivalents, and investments consisted of the following: September 30, December 31, 2022 2021 Cash $ 4,235 $ 6,789 Cash equivalents 1,623 1,403 Short-term investments 22,147 22,562 Total $ 28,005 $ 30,754 |
Summary of Cash in Foreign Accounts | The cash in foreign accounts was as follows: September 30, December 31, 2022 2021 China $ 2,439 $ 2,801 Europe 1,445 1,108 Total $ 3,884 $ 3,909 |
Cash Equivalents and Investments | Cash equivalents and investments were as follows at September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 1,623 $ 0 $ 1,623 $ 1,403 $ 0 $ 1,403 Total cash equivalents $ 1,623 $ 0 $ 1,623 $ 1,403 $ 0 $ 1,403 Short-term investments: Corporate bonds $ 0 $ 21,044 $ 21,044 $ 0 $ 19,659 $ 19,659 Certificates of deposit 1,103 0 1,103 2,903 0 2,903 Total short-term investments $ 1,103 $ 21,044 $ 22,147 $ 2,903 $ 19,659 $ 22,562 Cash equivalents and investments - book value $ 2,726 $ 21,044 $ 23,770 $ 4,306 $ 19,659 $ 23,965 Unrealized gains (losses) $ 0 $ ( 27 ) $ ( 27 ) $ 1 $ ( 2 ) $ ( 1 ) Cash equivalents and investments - fair value $ 2,726 $ 21,017 $ 23,743 $ 4,307 $ 19,657 $ 23,964 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amount of Goodwill | The change in the carrying amount of goodwill during the nine months ended September 30, 2022 is as follows: Amount Balance at December 31, 2021 $ 6,334 Foreign currency translation ( 556 ) Balance at September 30, 2022 $ 5,778 |
Summary of Amortization Expense | The summary of amortization expense in the condensed consolidated statement of operations is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 17 $ 21 $ 56 $ 36 Operating expenses 63 80 201 135 Total $ 80 $ 101 $ 257 $ 171 |
Summary of Other Intangible Assets | The summary of other intangible assets, net is as follows: September 30, 2022 December 31, 2021 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Customer contracts and relationships $ 17,474 $ 17,049 $ 425 $ 17,609 $ 16,978 $ 631 Patents and technology 9,974 9,737 237 10,049 9,698 351 Trademarks and trade names 1,453 1,108 345 1,563 1,051 512 Other intangible assets 90 39 51 110 25 85 Total $ 28,991 $ 27,933 $ 1,058 $ 29,331 $ 27,752 $ 1,579 |
Summary of Assigned Lives and Weighted Average Amortization Periods by Intangible Asset Category | The assigned lives and weighted average amortization periods by intangible asset category are summarized below: Intangible Assets Assigned Life Weighted Customer contracts and relationships 5 years 5.0 Patents and technology 5 years 5.0 Trademarks and trade names 5 years 5.0 Other intangible assets .5 to 5 years 3.6 |
Schedule of Future Amortization Expenses | The future amortization expenses are as follows: Fiscal Year Amount 2022 (remaining three months) $ 76 2023 305 2024 293 2025 288 2026 96 Thereafter 0 Total $ 1,058 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Allowances for Accounts Receivable | The allowances for accounts receivable consisted of the following: September 30, 2022 December 31, 2021 Credit loss provision $ 89 $ 26 Credit allowances 54 38 Total allowances $ 143 $ 64 |
Summary of Allowance for credit losses | The following table summarizes the allowance for credit losses activity during the nine months ended September 30, 2022: Balance at December 31, 2021 $ 26 Current period expense for credit losses 63 Balance at September 30, 2022 $ 89 |
Summary of Inventories, Net | Inventories, net consisted of the following: September 30, 2022 December 31, 2021 Raw materials $ 7,430 $ 6,171 Work-in-process 1,275 690 Finished goods 8,025 6,830 Inventories, net $ 16,730 $ 13,691 |
Summary of Property and Equipment | Property and equipment consisted of the following: September 30, 2022 December 31, 2021 Building $ 6,922 $ 6,892 Computers and office equipment 10,189 10,604 Manufacturing and test equipment 14,692 16,305 Furniture and fixtures 1,446 1,455 Leasehold improvements 1,965 3,021 Motor vehicles 20 20 Total property and equipment 35,234 38,297 Less: Accumulated depreciation and amortization ( 26,704 ) ( 28,118 ) Land 1,770 1,770 Property and equipment, net $ 10,300 $ 11,949 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following: September 30, 2022 December 31, 2021 Accrued receipts $ 3,230 $ 4,302 Payroll and other employee benefits 2,822 2,266 Paid time off 1,343 1,284 Right of use assets 553 537 Employee stock purchase plan 471 253 Deferred revenues 441 538 Income and sales taxes 314 415 Warranties 309 257 Customer refunds for estimated returns 301 248 Professional fees and contractors 295 233 Real estate taxes 119 156 Restructuring 0 368 Other 420 260 Total $ 10,618 $ 11,117 |
Summary of Long-term Liabilities | Long-term liabilities consisted of the following: September 30, 2022 December 31, 2021 Operating leases $ 3,252 $ 3,600 Finance leases 60 92 Deferred revenue 190 181 Other 31 126 Total $ 3,533 $ 3,999 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-Based Compensation Expense by Type | The stock-based compensation expense by type is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service-based awards $ 447 $ 341 $ 1,150 $ 1,435 Performance-based awards (short-term incentive plan) 346 ( 196 ) 689 0 Performance-based awards (long-term incentive plan) 278 160 949 394 Employee stock purchase plan 76 67 219 200 Total $ 1,147 $ 372 $ 3,007 $ 2,029 |
Stock-Based Compensation | Total stock-based compensation is reflected in the condensed consolidated statements of operations as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenues $ 61 $ 51 $ 156 $ 185 Research and development 163 102 472 384 Sales and marketing 241 73 694 458 General and administrative 682 146 1,685 1,002 Total $ 1,147 $ 372 $ 3,007 $ 2,029 The following table presents a summary of the remaining unrecognized share-based compensation expense related to outstanding share-based awards as of September 30, 2022: Award Type Remaining Unrecognized Compensation Expense Weighted Average Life (Years) Service-based awards $ 1,946 1.3 Performance-based awards $ 2,161 1.7 |
Summary of Service-based Restricted Stock Activity | The following table summarizes service-based restricted stock activity for the nine months ended September 30, 2022: Shares Weighted Unvested Restricted Stock Awards - December 31, 2021 326,336 $ 7.76 Shares awarded 233,744 4.66 Shares vested ( 166,473 ) 7.30 Shares cancelled ( 3,285 ) 5.85 Unvested Restricted Stock Awards - September 30, 2022 390,322 $ 6.12 The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2022: Shares Weighted Unvested Restricted Stock Units - December 31, 2021 21,437 $ 7.23 Units awarded 26,667 4.40 Units vested/Shares awarded ( 4,501 ) 7.33 Units cancelled ( 2,000 ) 6.98 Unvested Restricted Stock Units - September 30, 2022 41,603 $ 5.42 |
Information about Stock Options Outstanding Under all Stock Plans | The following table summarizes information about stock options outstanding under all stock option plans at September 30, 2022: Options Outstanding Options Exercisable Range of Number Weighted Intrinsic Value Weighted Number Weighted Intrinsic Value Weighted $ 5.06 - $ 6.98 4,000 1.67 $ 0 $ 6.02 4,000 1.67 $ 0 $ 6.02 |
Summary of Performance Share Activity | The following table summarizes the performance award activity: Awards at Target Weighted Unvested Performance Awards - December 31, 2021 333,153 $ 8.44 Awards granted 269,618 4.84 Awards cancelled ( 18,800 ) 8.01 Unvested Performance Awards - September 30, 2022 583,971 $ 6.79 |
Summary Of Active Performance-Based Long-Term Incentive Plans | The following table summarizes the active performance-based long-term incentive plans at September 30, 2022: Number of Shares Share Price That Could Be Earned: LTIP award on Grant Date Target Maximum Performance Period 2020 LTIP $ 8.70 135,889 237,806 January 1, 2020 through December 31, 2022 2021 LTIP $ 8.25 179,797 314,645 January 1, 2021 through December 31, 2023 2022 LTIP $ 4.84 268,285 469,499 January 1, 2022 through December 31, 2024 583,971 1,021,950 |
Calculation of Fair Value of Each Employee Stock Purchase Grant Using Black-Scholes Option-Pricing Model | The Company calculated the fair value of each employee stock purchase grant on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Employee Stock Purchase Plan 2022 2021 Dividend yield 4.7 % 3.1 % Risk-free interest rate 1.7 % 0.1 % Expected volatility 48 % 48 % Expected life (in years) 0.5 0.5 |
Summary of Director Awards Activity | The following table summarizes the director awards activity: Shares Weighted Outstanding - December 31, 2021 11,534 $ 6.57 Shares awarded 124,801 4.02 Shares vested ( 11,534 ) 6.57 Shares cancelled ( 4,105 ) 4.02 Outstanding - September 30, 2022 120,696 $ 4.02 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Compensation And Retirement Disclosure [Abstract] | |
Summary of Contributions to Retirement Plans | The Company’s contributions to retirement plans during the three and nine months ended September 30, 2022 and 2021, respectively, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 PCTEL, Inc. 401(k) profit sharing plan - US employees $ 187 $ 184 $ 593 $ 540 Defined contribution plans - Foreign employees 55 115 190 322 Total $ 242 $ 299 $ 783 $ 862 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Restructuring Activity and Status of Reserves | The following table summarizes the restructuring activity and the status of the reserves during the nine months ended September 30, 2022: Tianjin Manufacturing Beijing Total Balance at December 31, 2021 $ 0 $ 368 $ 368 Restructuring expense 1,309 0 1,309 Payments made ( 1,309 ) ( 368 ) ( 1,677 ) Balance at September 30, 2022 $ 0 $ 0 $ 0 |
Summary of Warranty Activity | The following table summarizes the warranty activity during the nine months ended September 30, 2022 and 2021: Nine Months Ended September 30, 2022 2021 Beginning balance $ 257 $ 285 Provisions for warranties 162 64 Consumption of reserves ( 110 ) ( 77 ) Ending balance $ 309 $ 272 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The Company's lease cost for the three and nine months ended September 30, 2022 and 2021, respectively, included the following components: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease costs $ 119 $ 121 $ 377 $ 333 Short-term lease costs 10 41 60 123 Variable lease costs 2 5 4 9 Amortization of finance lease assets 12 18 47 53 Interest on finance lease liabilities 1 2 4 6 Total lease cost $ 144 $ 187 $ 492 $ 524 |
Schedule of Future Minimum Lease Payments under Operating and Finance Leases | The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases recorded on the balance sheet as of September 30, 2022: Year Operating Leases Finance Leases 2022 (remaining three months) $ 131 $ 13 2023 668 44 2024 591 33 2025 501 15 2026 494 5 Thereafter 2,180 0 Total minimum payments required 4,565 110 Less: amount representing interest ( 804 ) ( 6 ) Present value of net minimum lease payments 3,761 104 Less: current maturities of lease obligations ( 509 ) ( 44 ) Long-term lease obligations $ 3,252 $ 60 |
Summary of Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates for all the Company’s operating and finance leases were as follows as of September 30, 2022: September 30, 2022 Weighted-average remaining lease term - finance leases 2.7 years Weighted-average remaining lease term - operating leases 7.8 years Weighted-average discount rate - finance leases 4.0 % Weighted-average discount rate - operating leases 5.0 % |
Schedule of Supplemental Cash Flow Information Related to Leases | The table below presents supplemental cash flow information related to leases during the three and nine months ended September 30, 2022 and 2021, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 167 $ 160 $ 553 $ 413 Operating cash flows for finance leases $ 1 $ 2 $ 4 $ 6 Financing cash flows for finance leases $ 11 $ 25 $ 48 $ 54 |
Schedule of Classification of ROU Assets and Lease liabilities | The following table summarizes the classification of ROU assets and lease liabilities as of September 30, 2022 and December 31, 2021: Leases Consolidated Balance Sheet Classification September 30, 2022 December 31, 2021 Assets: Operating right-of-use assets Other noncurrent assets $ 2,092 $ 2,289 Finance right-of-use assets Other noncurrent assets 99 148 Total leased assets $ 2,191 $ 2,437 Liabilities: Current Operating lease liabilities Accrued liabilities $ 509 $ 475 Finance lease liabilities Accrued liabilities 44 62 Noncurrent Operating lease liabilities Long-term liabilities 3,252 3,600 Finance lease liabilities Long-term liabilities 60 92 Total lease liabilities $ 3,865 $ 4,229 |
Product Line and Geographic I_2
Product Line and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Result of Product Line Revenues and Gross Profits | Product Line Information: The following tables are the product line revenues and gross profits for the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, 2022 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 18,653 $ 7,683 $ ( 348 ) $ 25,988 Gross Profit $ 6,562 $ 5,544 $ ( 170 ) $ 11,936 Gross Profit % 35.2 % 72.2 % NA 45.9 % Nine Months Ended September 30, 2022 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 53,310 $ 20,698 $ ( 502 ) $ 73,506 Gross Profit $ 17,435 $ 15,466 $ ( 205 ) $ 32,696 Gross Profit % 32.7 % 74.7 % NA 44.5 % Three Months Ended September 30, 2021 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 16,686 $ 5,921 $ ( 196 ) $ 22,411 Gross Profit $ 5,655 $ 4,635 $ ( 36 ) $ 10,254 Gross Profit % 33.9 % 78.3 % NA 45.8 % Nine Months Ended September 30, 2021 Antennas & Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 43,971 $ 18,540 $ ( 712 ) $ 61,799 Gross Profit $ 14,578 $ 14,057 $ ( 102 ) $ 28,533 Gross Profit % 33.2 % 75.8 % NA 46.2 % |
Customers Accounted Revenues by Geographic Location | Geographic Information: The Company’s revenue from customers by geographic location, as a percent of total revenues for the three and nine months ended September 30, 2022 and 2021, is as follows: Three Months Ended September 30, Nine Months Ended September 30, Region 2022 2021 2022 2021 Europe, Middle East & Africa 20 % 23 % 21 % 23 % Asia Pacific 7 % 9 % 6 % 8 % Other Americas 3 % 3 % 3 % 4 % Total Foreign sales 30 % 35 % 30 % 35 % |
Revenue [Member] | |
Schedule of Revenues and Total Trade Accounts Receivable Represents Customers Accounted for 10% or More Percentage | The following table represents the customers that accounted for 10% or more of revenues during the three and nine months ended September 30, 2022 and 2021: Three Months Ended September 30, Nine Months Ended September 30, Revenues 2022 2021 2022 2021 Customer C 18 % 5 % 15 % 8 % Customer A 11 % 2 % 9 % 4 % |
Trade Accounts Receivable [Member] | |
Schedule of Revenues and Total Trade Accounts Receivable Represents Customers Accounted for 10% or More Percentage | The following table represents the customers that accounted for 10% or more of total trade accounts receivable: Trade Accounts Receivable September 30, 2022 December 31, 2021 Customer A 27 % 5 % Customer C 9 % 9 % |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Percentage of revenue transacted in foreign currency | 11% | 9% | ||
Percentage of expenses transacted in foreign currency | 13% | 20% | ||
Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income | $ 114 | $ (10) | $ 187 | $ (54) |
Income (Loss) per Share - Compu
Income (Loss) per Share - Computation of Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
NET INCOME (LOSS) | $ 1,972 | $ 664 | $ 819 | $ (167) |
Denominator: | ||||
Weighted shares outstanding - basic | 18,165,611 | 17,945,053 | 18,098,694 | 18,077,506 |
Net Income (loss) per common share - basic | $ 0.11 | $ 0.04 | $ 0.05 | $ (0.01) |
Weighted Average Shares: | ||||
Weighted shares outstanding - basic | 18,165,611 | 17,945,053 | 18,098,694 | 18,077,506 |
Common stock option grants | 70 | 0 | 46 | 0 |
Weighted shares outstanding - diluted | 18,187,075 | 17,961,686 | 18,213,753 | 18,077,506 |
Net Income (loss) per common share - diluted | $ 0.11 | $ 0.04 | $ 0.04 | $ (0.01) |
Restricted Stock [Member] | ||||
Weighted Average Shares: | ||||
Restricted shares subject to vesting | 21,394 | 16,633 | 115,013 | 0 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands, € in Millions, kr in Millions | 1 Months Ended | 9 Months Ended | |||||||
Apr. 30, 2021 USD ($) ft² | Apr. 30, 2021 SEK (kr) | Sep. 30, 2022 USD ($) | Apr. 30, 2022 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 EUR (€) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Apr. 30, 2021 EUR (€) ft² | |
Business Acquisition [Line Items] | |||||||||
Payments for business acquisition, net of cash | $ 0 | $ 6,277 | |||||||
Adjusted inventory | $ 500 | 500 | |||||||
Lease expiration date | Apr. 30, 2024 | ||||||||
Right of Use Asset | 2,092 | 2,092 | $ 2,289 | ||||||
Operating lease liability | 3,761 | $ 3,761 | |||||||
Borrowings termination date | 2026-05 | 2026-05 | |||||||
Repayments of loan | 100 | ||||||||
Net deferred tax assets | 14,600 | $ 14,600 | 15,300 | ||||||
Goodwill | 5,778 | $ 5,778 | $ 6,334 | ||||||
Smarteq [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Working capital adjustments | $ 5 | ||||||||
Total cash consideration | 6,785 | ||||||||
Cash | 503 | ||||||||
Debt | 91 | ||||||||
Reversed of valuation allowance | $ 400 | ||||||||
Gross accounts receivable | $ 1,415 | ||||||||
Area of lease | ft² | 4,080 | 4,080 | |||||||
Lease expiration date | Jul. 31, 2023 | Jul. 31, 2023 | |||||||
Right of Use Asset | $ 200 | ||||||||
Operating lease liability | 200 | ||||||||
Goodwill | 3,244 | ||||||||
Transaction costs | $ 300 | ||||||||
Smarteq France [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Loan term | 5 years | 5 years | |||||||
Loan amount | € | € 0.1 | ||||||||
Loan interest rate | 0.57% | 0.57% | |||||||
Borrowings termination date | 2026-05 | 2026-05 | |||||||
Repayments of loan | € | € 0.1 | ||||||||
Net deferred tax assets | $ 2,400 | ||||||||
SPA [Member] | Smarteq [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash purchase price | kr | kr 53 | ||||||||
Working capital adjustments | kr | 1.6 | ||||||||
Net cash adjustment | kr | 2.1 | ||||||||
Total cash consideration | kr | kr 56.8 | ||||||||
Payments for business acquisition, net of cash | $ 6,800 |
Business Combinations - Schedul
Business Combinations - Schedule of Fair Value Purchase Consideration (Detail) - Smarteq [Member] $ in Thousands | Apr. 30, 2021 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 6,785 |
Working capital adjustment | (5) |
Total purchase consideration | $ 6,780 |
Business Combinations - Sched_2
Business Combinations - Schedule of Fair Value Recognized Identified Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Intangible assets | $ 1,983 | ||
Goodwill | $ 5,778 | $ 6,334 | |
Smarteq [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 503 | ||
Accounts receivable | 1,415 | ||
Prepaid expenses and other assets | 109 | ||
Inventories | 1,286 | ||
Right of use assets | 232 | ||
Property and equipment | 131 | ||
Intangible assets | 1,983 | ||
Accounts payable | (981) | ||
Accrued liabilities | (837) | ||
Lease liabilities - short-term | (102) | ||
Lease liabilities - long-term | (112) | ||
Debt | (91) | ||
Identifiable assets acquired | 3,536 | ||
Goodwill | 3,244 | ||
Total purchase price | $ 6,780 |
Business Combinations - Sched_3
Business Combinations - Schedule of Intangible Assets Acquired and Expected Lives for Finite-Lived Intangible Assets (Detail) $ in Thousands | Apr. 30, 2021 USD ($) |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 1,983 |
Customer Relationships [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 787 |
Finite-lived intangible assets useful life | 5 years |
Trade Names [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 639 |
Finite-lived intangible assets useful life | 5 years |
Technology [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 438 |
Finite-lived intangible assets useful life | 5 years |
Other Intangible Assets [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Intangible assets | $ 119 |
Other Intangible Assets [Member] | Minimum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets useful life | 6 months |
Other Intangible Assets [Member] | Maximum [Member] | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets useful life | 5 years |
Business Combinations - Supplem
Business Combinations - Supplemental Proforma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Combinations [Abstract] | ||||
Net Revenue - pro forma combined | $ 25,988 | $ 22,411 | $ 73,506 | $ 64,517 |
Net Income - pro forma combined | $ 1,972 | $ 797 | $ 905 | $ 493 |
Weighted Average Shares: | ||||
Basic | 18,166 | 17,945 | 18,099 | 18,078 |
Diluted | 18,187 | 17,962 | 18,214 | 18,078 |
Net Income (Loss) per Share: | ||||
Basic | $ 0.11 | $ 0.04 | $ 0.05 | $ 0.03 |
Diluted | $ 0.11 | $ 0.04 | $ 0.05 | $ 0.03 |
Business Combinations - Suppl_2
Business Combinations - Supplemental Proforma Combined Net Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Combinations [Abstract] | ||||
Net Revenue | $ 25,988 | $ 22,411 | $ 73,506 | $ 61,799 |
Add: Net Revenue - acquired business | 0 | 0 | 0 | 2,718 |
Net Revenue - pro forma combined | $ 25,988 | $ 22,411 | $ 73,506 | $ 64,517 |
Business Combinations - Suppl_3
Business Combinations - Supplemental Proforma Combined Net Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Business Combinations [Abstract] | ||||
Net Income (Loss) | $ 1,972 | $ (664) | $ 819 | $ (167) |
Add: Results of operations of acquired business | 0 | 0 | 0 | 183 |
Less: pro forma adjustments | ||||
Amortization of intangibles | 0 | (3) | 0 | (226) |
Inventory fair value adjustments | 0 | 133 | 0 | (416) |
Acquisition related expenses | 0 | 0 | 86 | 304 |
Interest income | 0 | (3) | 0 | (17) |
Net Income - pro forma combined | $ 1,972 | $ 797 | $ 905 | $ 493 |
Cash, Cash Equivalents and In_3
Cash, Cash Equivalents and Investments - Cash and Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash And Cash Equivalents [Abstract] | ||
Cash | $ 4,235 | $ 6,789 |
Cash equivalents | 1,623 | 1,403 |
Short-term investments | 22,147 | 22,562 |
Cash and investments | $ 28,005 | $ 30,754 |
Cash, Cash Equivalents and In_4
Cash, Cash Equivalents and Investments - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents maturities | 90 days | 90 days |
Investment of cash equivalents are redeemable upon demand using amortized cost method | $ 1 | |
Investment in money market funds restricted by investment in short term securities, percentage | 100% | |
Short-term investments, maturities, minimum | 90 days | |
Short-term investments, maturities, maximum | 1 year | |
Unrealized gains (losses) | $ 27,000 | $ 1,000 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Federal Deposit Insurance Corporation insured limit | $ 250,000 |
Cash, Cash Equivalents and In_5
Cash, Cash Equivalents and Investments - Summary of Cash in Foreign Accounts (Detail) - Cash [Member] - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Cash And Cash Equivalents [Line Items] | ||
Cash in foreign accounts | $ 3,884 | $ 3,909 |
CHINA [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash in foreign accounts | 2,439 | 2,801 |
Europe [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash in foreign accounts | $ 1,445 | $ 1,108 |
Cash, Cash Equivalents and In_6
Cash, Cash Equivalents and Investments - Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 1,623 | $ 1,403 |
Short-term investments | 22,147 | 22,562 |
Cash equivalents and investments - book value | 23,770 | 23,965 |
Unrealized gains (losses) | (27) | (1) |
Cash equivalents and investments - fair value | 23,743 | 23,964 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,623 | 1,403 |
Short-term investments | 1,103 | 2,903 |
Cash equivalents and investments - book value | 2,726 | 4,306 |
Unrealized gains (losses) | 0 | 1 |
Cash equivalents and investments - fair value | 2,726 | 4,307 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 21,044 | 19,659 |
Cash equivalents and investments - book value | 21,044 | 19,659 |
Unrealized gains (losses) | (27) | (2) |
Cash equivalents and investments - fair value | 21,017 | 19,657 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,623 | 1,403 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,623 | 1,403 |
Money Market Funds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 21,044 | 19,659 |
Corporate Bonds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 0 | 0 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 21,044 | 19,659 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,103 | 2,903 |
Certificates of Deposit [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 1,103 | 2,903 |
Certificates of Deposit [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | $ 0 | $ 0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Summary of Carrying Amount of Goodwill (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Beginning Balance | $ 6,334 |
Foreign currency translation | (556) |
Ending Balance | $ 5,778 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 63 | $ 80 | $ 201 | $ 135 | |
Foreign currency translation adjustment | 200 | ||||
Operating Expense [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 100 | $ 300 | |||
Smarteq Wireless Aktiebolag [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets | $ 2,000 | ||||
Minimum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets basis over estimated useful lives | 1 year | ||||
Maximum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets basis over estimated useful lives | 5 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Amortization Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense, total | $ 80 | $ 101 | $ 257 | $ 171 |
Cost of Revenues [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense, total | 17 | 21 | 56 | 36 |
Operating Expense [Member] | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense, total | $ 63 | $ 80 | $ 201 | $ 135 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 28,991 | $ 29,331 |
Accumulated Amortization | 27,933 | 27,752 |
Net Book Value | 1,058 | 1,579 |
Customer Contracts and Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 17,474 | 17,609 |
Accumulated Amortization | 17,049 | 16,978 |
Net Book Value | 425 | 631 |
Patents and Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 9,974 | 10,049 |
Accumulated Amortization | 9,737 | 9,698 |
Net Book Value | 237 | 351 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,453 | 1,563 |
Accumulated Amortization | 1,108 | 1,051 |
Net Book Value | 345 | 512 |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 90 | 110 |
Accumulated Amortization | 39 | 25 |
Net Book Value | $ 51 | $ 85 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Assigned Lives and Weighted Average Amortization Periods by Intangible Asset Category (Detail) | 9 Months Ended |
Sep. 30, 2022 | |
Minimum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 1 year |
Maximum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Customer Contracts and Relationships [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Weighted Average Amortization Period | 5 years |
Patents and Technology [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Weighted Average Amortization Period | 5 years |
Trademarks and Trade Names [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Weighted Average Amortization Period | 5 years |
Other Intangible Assets [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Weighted Average Amortization Period | 3 years 7 months 6 days |
Other Intangible Assets [Member] | Minimum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 6 months |
Other Intangible Assets [Member] | Maximum [Member] | |
Summary of assigned lives and weighted average amortization periods by intangible asset category | |
Assigned Life | 5 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 (remaining three months) | $ 76 | |
2023 | 305 | |
2024 | 293 | |
2025 | 288 | |
2026 | 96 | |
Thereafter | 0 | |
Net Book Value | $ 1,058 | $ 1,579 |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||||
Allowance for credit losses | $ 89 | $ 89 | $ 26 | ||
Consigned inventory with customers | 300 | 300 | 400 | ||
Allowance for inventory losses | 3,100 | 3,100 | $ 4,100 | ||
Depreciation and amortization | $ 700 | $ 800 | $ 2,200 | $ 2,300 | |
Equipment [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 5 years | ||||
Furniture and Fixtures [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 7 years | ||||
Building [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 30 years | ||||
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Standard term of accounts receivable | 30 days | ||||
Minimum [Member] | Computer Equipment and Software Licenses [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 3 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Standard term of accounts receivable | 90 days | ||||
Useful lives of the assets | 1 year | ||||
Maximum [Member] | Computer Equipment and Software Licenses [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Period over which assets are depreciated | 5 years |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Allowances for Accounts Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Credit loss provision | $ 89 | $ 26 |
Credit allowances | 54 | 38 |
Total allowances | $ 143 | $ 64 |
Balance Sheet Information - All
Balance Sheet Information - Allowance for credit losses (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Balance at December 31, 2021 | $ 26 |
Current period expense for credit losses | 63 |
Balance at June 30, 2022 | $ 89 |
Balance Sheet Information - S_2
Balance Sheet Information - Summary of Inventories, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Net [Abstract] | ||
Raw materials | $ 7,430 | $ 6,171 |
Work-in-process | 1,275 | 690 |
Finished goods | 8,025 | 6,830 |
Inventories, net | $ 16,730 | $ 13,691 |
Balance Sheet Information - S_3
Balance Sheet Information - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 35,234 | $ 38,297 |
Less: Accumulated depreciation and amortization | (26,704) | (28,118) |
Land | 1,770 | 1,770 |
Property and equipment, net | 10,300 | 11,949 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 6,922 | 6,892 |
Computers and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 10,189 | 10,604 |
Manufacturing and Test Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,692 | 16,305 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,446 | 1,455 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,965 | 3,021 |
Motor Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 20 | $ 20 |
Balance Sheet Information - S_4
Balance Sheet Information - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||||
Accrued receipts | $ 3,230 | $ 4,302 | ||
Payroll and other employee benefits | 2,822 | 2,266 | ||
Paid time off | 1,343 | 1,284 | ||
Right of use assets | 553 | 537 | ||
Employee stock purchase plan | 471 | 253 | ||
Deferred revenues | 441 | 538 | ||
Income and sales taxes | 314 | 415 | ||
Warranties | 309 | 257 | $ 272 | $ 285 |
Customer refunds for estimated returns | 301 | 248 | ||
Professional fees and contractors | 295 | 233 | ||
Real estate taxes | 119 | 156 | ||
Restructuring | 0 | 368 | ||
Other | 420 | 260 | ||
Total | $ 10,618 | $ 11,117 |
Balance Sheet Information - S_5
Balance Sheet Information - Summary of Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Liabilities Noncurrent [Abstract] | ||
Operating leases | $ 3,252 | $ 3,600 |
Finance leases | 60 | 92 |
Deferred revenue | 190 | 181 |
Other | 31 | 126 |
Total | $ 3,533 | $ 3,999 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Stock compensation expense | $ 1,147 | $ 372 | $ 3,007 | $ 2,029 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Stock Based Compensation [Line Items] | ||||
Total | $ 1,147 | $ 372 | $ 3,007 | $ 2,029 |
Service-based Awards [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 447 | 341 | 1,150 | 1,435 |
Performance-based Awards - Short-term Incentive Plan [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 346 | (196) | 689 | 0 |
Performance-based Awards - Long-term Incentive Plan [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | 278 | 160 | 949 | 394 |
Employee Stock Purchase Plan [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Total | $ 76 | $ 67 | $ 219 | $ 200 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | $ 1,147 | $ 372 | $ 3,007 | $ 2,029 |
Cost of Revenues [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | 61 | 51 | 156 | 185 |
Research and Development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | 163 | 102 | 472 | 384 |
Sales and Marketing [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | 241 | 73 | 694 | 458 |
General and Administrative [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock compensation expense | $ 682 | $ 146 | $ 1,685 | $ 1,002 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Remaining Unrecognized Share-based Compensation Expense Related to Outstanding Share-based Awards (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Service-based Awards [Member] | |
Stock Based Compensation [Line Items] | |
Remaining unrecognized share-based compensation expense | $ 1,946 |
Share based compensation arrangement by share based payment award options weighted average life in years | 1 year 3 months 18 days |
Performance-based Awards [Member] | |
Stock Based Compensation [Line Items] | |
Remaining unrecognized share-based compensation expense | $ 2,161 |
Share based compensation arrangement by share based payment award options weighted average life in years | 1 year 8 months 12 days |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Service-based Restricted Stock Activity (Detail) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Beginning balance, Shares | shares | 326,336 |
Shares awarded, Shares | shares | 233,744 |
Shares vested, Shares | shares | (166,473) |
Shares cancelled, Shares | shares | (3,285) |
Unvested Ending balance, Shares | shares | 390,322 |
Unvested Beginning balance, Weighted Average Fair Value | $ / shares | $ 7.76 |
Shares awarded, Weighted Average Fair Value | $ / shares | 4.66 |
Shares vested, Weighted Average Fair Value | $ / shares | 7.30 |
Shares cancelled, Weighted Average Fair Value | $ / shares | 5.85 |
Unvested Ending balance, Weighted Average Fair Value | $ / shares | $ 6.12 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units - Service Based - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares vested intrinsic value | $ 800 | $ 2,200 |
Service Based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares vested intrinsic value | $ 21 | $ 42 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Beginning balance, Shares | shares | 21,437 |
Units awarded, Shares | shares | 26,667 |
Units vested/Shares awarded, Shares | shares | (4,501) |
Units cancelled, Shares | shares | (2,000) |
Unvested Ending balance, Shares | shares | 41,603 |
Unvested Beginning balance, Weighted Average Fair Value | $ / shares | $ 7.23 |
Units awarded, Weighted Average Fair Value | $ / shares | 4.40 |
Units vested/Shares awarded, Weighted Average Fair Value | $ / shares | 7.33 |
Units cancelled, Weighted Average Fair Value | $ / shares | 6.98 |
Unvested Ending balance, Weighted Average Fair Value | $ / shares | $ 5.42 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Price | $ 4.72 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Period of termination of employment | 180 days |
Stock options granted period | 7 years |
Period of expected life, options granted | 5 years |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Stock Options Outstanding Under all Stock Plans (Detail) - Range One [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range of exercise prices | $ 5.06 |
Upper range of exercise prices | $ 6.98 |
Options Outstanding, Number | shares | 4,000 |
Options Outstanding, Weighted Average Contractual Life (Years) | 1 year 8 months 1 day |
Options Outstanding, Intrinsic Value | $ | $ 0 |
Options Outstanding, Weighted-Average Exercise Price | $ 6.02 |
Options Exercisable, Number | shares | 4,000 |
Options Exercisable, Weighted Average Contractual Life (Years) | 1 year 8 months 1 day |
Options Exercisable, Intrinsic Value | $ | $ 0 |
Options Exercisable, Weighted Average Exercise Price | $ 6.02 |
Stock-Based Compensation - Shor
Stock-Based Compensation - Short-Term Incentive Plan - Additional Information (Detail) - 2022 STIP [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2022 | Sep. 30, 2022 | |
Executives and Key Managers [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of incentive awards in shares | 50% | |
Percentage of incentive awards in cash | 50% | |
Payments of bonus awards in common stock | $ 0.3 | |
Other Participants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of incentive awards in cash | 100% |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Performance Share Activity (Detail) - Performance Related Awards [Member] | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested Beginning balance, Shares | shares | 333,153 |
Awards granted | shares | 269,618 |
Shares cancelled, Shares | shares | (18,800) |
Unvested Ending balance, Shares | shares | 583,971 |
Unvested Beginning balance, Weighted Average Fair Value | $ / shares | $ 8.44 |
Shares awarded, Weighted Average Fair Value | $ / shares | 4.84 |
Shares cancelled, Weighted Average Fair Value | $ / shares | 8.01 |
Unvested Ending balance, Weighted Average Fair Value | $ / shares | $ 6.79 |
Stock-Based Compensation - Long
Stock-Based Compensation - Long-Term Incentive Plan - Additional Information (Detail) - 2022 LTIP $ / shares in Units, $ in Millions | 1 Months Ended |
Feb. 28, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Revenue growth target performance period start date | Jan. 01, 2022 |
Revenue growth target performance period end date | Dec. 31, 2024 |
Total fair market value of award at target | $ | $ 1.3 |
Shares awarded, Weighted Average Fair Value | $ / shares | $ 4.84 |
Number of shares earned | 269,618,000 |
Maximum number of shares that may be issued | 471,832,000 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary Of Active Performance-Based Long-Term Incentive Plans (Detail) | Sep. 30, 2022 shares |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 1,021,950 |
Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 583,971 |
2020 LTIP [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 237,806 |
2020 LTIP [Member] | Share Price On Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 8.70 |
2020 LTIP [Member] | Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 135,889 |
2021 LTIP [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 314,645 |
2021 LTIP [Member] | Share Price On Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 8.25 |
2021 LTIP [Member] | Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 179,797 |
2022 LTIP [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 469,499 |
2022 LTIP [Member] | Share Price On Grant Date | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 4.84 |
2022 LTIP [Member] | Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total shares reserved | 268,285 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan ("ESPP") - Additional Information (Detail) - Employee Stock Purchase Plan [Member] | 9 Months Ended |
Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of fair market value to determine purchase price | 85% |
Offering period | 6 months |
Rate of discount on fair market value of common stock under ESPP | 15% |
Stock-Based Compensation - Calc
Stock-Based Compensation - Calculation of Fair Value of Each Employee Stock Purchase Grant Using the Black-Scholes Option-Pricing Model (Detail) - Employee Stock Purchase Plan [Member] | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Calculation of fair value of each employee stock purchase grant using the Black-Scholes option-pricing model | ||
Dividend yield | 4.70% | 3.10% |
Risk-free interest rate | 1.70% | 0.10% |
Expected volatility | 48% | 48% |
Expected life (in years) | 6 months | 6 months |
Stock-Based Compensation - Boar
Stock-Based Compensation - Board of Director Equity Awards - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2022 | May 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted shares vested intrinsic value | $ 800 | $ 2,200 | ||
New Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants vesting period | 3 years | |||
Board of Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants vesting period | 1 year | |||
Common stock issued | 4,033 | 120,768 | ||
Restricted shares vested intrinsic value | $ 47 | |||
Shares cancelled | 4,105 | 4,105 |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Director Awards Activity (Detail) - Board of Directors [Member] - $ / shares | 1 Months Ended | 9 Months Ended |
Jul. 31, 2022 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, Beginning balance, Shares | 11,534 | |
Shares awarded, Shares | 124,801 | |
Shares vested, Shares | (11,534) | |
Shares cancelled, Shares | (4,105) | (4,105) |
Outstanding, Ending balance, Shares | 120,696 | |
Weighted Average Fair Value, Beginning balance | $ 6.57 | |
Shares awarded, Weighted Average Fair Value | 4.02 | |
Shares vested, Weighted Average Fair Value | 6.57 | |
Shares cancelled, Weighted Average Fair Value | 4.02 | |
Weighted Average Fair Value, Ending balance | $ 4.02 |
Stock-Based Compensation - Em_2
Stock-Based Compensation - Employee Withholding Taxes on Stock Awards - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment of withholding taxes related to stock awards | $ 396 | $ 782 |
Employee Withholding Taxes on Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment of withholding taxes related to stock awards | $ 400 | $ 800 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - Employee Benefit Plans [Member] | 9 Months Ended |
Sep. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |
Maximum percentage of current compensation of employee to contribute in plan | 15% |
Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Employer matches employee contribution percentage | 4% |
Benefit Plans - Summary of Cont
Benefit Plans - Summary of Contributions to Retirement Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | $ 242 | $ 299 | $ 783 | $ 862 |
US Employees [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | 187 | 184 | 593 | 540 |
Foreign Employees [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution to retirement plans | $ 55 | $ 115 | $ 190 | $ 322 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Nov. 30, 2021 USD ($) Employee | Sep. 30, 2022 USD ($) Employee | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||||
Restructuring expenses | $ 1,309 | |||||
Payments for restructuring | 1,677 | |||||
Refund liability | 301 | $ 248 | ||||
Warranties | 309 | 257 | $ 272 | $ 285 | ||
Warranty Reserves [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Refund liability | 300 | $ 200 | ||||
Warranties | $ 300 | $ 300 | ||||
Warranty Reserves [Member] | Antenna [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Repair and replacement warranty | 5 years | |||||
Beijing Restructuring [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Restructuring expenses | $ 0 | |||||
Payments for restructuring | 368 | |||||
Beijing Restructuring [Member] | Antenna [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Restructuring expenses | $ 800 | |||||
Number of employees separation | Employee | 14 | |||||
Number of former employees rehired | Employee | 4 | |||||
Employee Severance [Member] | Beijing Restructuring [Member] | Antenna [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Payments for restructuring | 400 | |||||
Tianjin [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Restructuring expenses | 1,300 | |||||
Tianjin [Member] | Employee Severance [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Restructuring expenses | $ 1,200 | |||||
Number of employees separation | Employee | 78 | |||||
Tianjin [Member] | Fixed Assets and Facilities [Member] | ||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||
Restructuring expenses | $ 100 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Restructuring Activity and Status of Reserves (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Beginning balance | $ 368 |
Restructuring expense | 1,309 |
Payments made | (1,677) |
Ending balance | 0 |
Tianjin Manufacturing Restructuring [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Beginning balance | 0 |
Restructuring expense | 1,309 |
Payments made | (1,309) |
Ending balance | 0 |
Beijing Restructuring [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Beginning balance | 368 |
Restructuring expense | 0 |
Payments made | (368) |
Ending balance | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Warranty Activity (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Valuation And Qualifying Accounts [Abstract] | ||
Beginning balance | $ 257 | $ 285 |
Provisions for warranties | 162 | 64 |
Consumption of reserves | (110) | (77) |
Ending balance | $ 309 | $ 272 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease costs | $ 119 | $ 121 | $ 377 | $ 333 |
Short-term lease costs | 10 | 41 | 60 | 123 |
Variable lease costs | 2 | 5 | 4 | 9 |
Amortization of finance lease assets | 12 | 18 | 47 | 53 |
Interest on finance lease liabilities | 1 | 2 | 4 | 6 |
Total lease cost | $ 144 | $ 187 | $ 492 | $ 524 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 (remaining three months) | $ 131 | |
2023 | 668 | |
2024 | 591 | |
2025 | 501 | |
2026 | 494 | |
Thereafter | 2,180 | |
Total minimum payments required | 4,565 | |
Less: amount representing interest | 804 | |
Present value of net minimum lease payments | 3,761 | |
Less: current maturities of lease obligations | (509) | $ (475) |
Long-term lease obligations | 3,252 | 3,600 |
Finance Leases | ||
2022 (remaining three months) | 13 | |
2023 | 44 | |
2024 | 33 | |
2025 | 15 | |
2026 | 5 | |
Thereafter | 0 | |
Total minimum payments required | 110 | |
Less: amount representing interest | 6 | |
Present value of net minimum lease payments | 104 | |
Less: current maturities of lease obligations | (44) | (62) |
Long-term lease obligations | $ 60 | $ 92 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Detail) | Sep. 30, 2022 |
Leases [Abstract] | |
Weighted-average remaining lease term - finance leases | 2 years 8 months 12 days |
Weighted-average remaining lease term - operating leases | 7 years 9 months 18 days |
Weighted-average discount rate - finance leases | 4% |
Weighted-average discount rate - operating leases | 5% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating cash flows for operating leases | $ 167 | $ 160 | $ 553 | $ 413 |
Operating cash flows for finance leases | 1 | 2 | 4 | 6 |
Financing cash flows for finance leases | $ 11 | $ 25 | $ 48 | $ 54 |
Leases - Schedule of Classifica
Leases - Schedule of Classification of ROU Assets and Lease liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Operating right-of-use assets | $ 2,092 | $ 2,289 |
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | Other noncurrent assets | Other noncurrent assets |
Finance right-of-use assets | $ 99 | $ 148 |
Finance Lease Right Of Use Asset Statement Of Financial Position Extensible List | Other noncurrent assets | Other noncurrent assets |
Total leased assets | $ 2,191 | $ 2,437 |
Current | ||
Operating lease liabilities | $ 509 | $ 475 |
Operating Lease Liability Current Statement Of Financial Position Extensible List | Accrued liabilities | Accrued liabilities |
Finance lease liabilities | $ 44 | $ 62 |
Finance Lease Liability Current Statement Of Financial Position Extensible List | Accrued liabilities | Accrued liabilities |
Noncurrent | ||
Operating leases | $ 3,252 | $ 3,600 |
Operating Lease Liability Noncurrent Statement Of Financial Position Extensible List | Long-term liabilities | Long-term liabilities |
Finance leases | $ 60 | $ 92 |
Finance Lease Liability Noncurrent Statement Of Financial Position Extensible List | Long-term liabilities | Long-term liabilities |
Total lease liabilities | $ 3,865 | $ 4,229 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Apr. 30, 2021 USD ($) ft² | Oct. 31, 2022 | Apr. 30, 2022 USD ($) ft² Employee | Nov. 30, 2021 Employee | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Leases [Line Items] | ||||||
Operating lease term of contract | 2 years | |||||
Right of Use Asset | $ 2,092 | $ 2,289 | ||||
Lease expiration date | Apr. 30, 2024 | |||||
Operating lease liability | $ 3,761 | |||||
Smarteq Wireless Aktiebolag [Member] | ||||||
Leases [Line Items] | ||||||
Right of Use Asset | $ 200 | |||||
Operating lease liability | $ 200 | |||||
Beijing Design Center [Member] | ||||||
Leases [Line Items] | ||||||
Right of Use Asset | $ 100 | |||||
Number of separate employees | Employee | 14 | |||||
Number of former employees rehired | Employee | 4 | |||||
Engineering Sales And Administration | Smarteq Wireless Aktiebolag [Member] | ||||||
Leases [Line Items] | ||||||
Area of lease | ft² | 4,080 | |||||
Lease expiration date | Jul. 31, 2023 | |||||
Engineering Sales And Administration | Subsequent Event [Member] | Smarteq Wireless Aktiebolag [Member] | ||||||
Leases [Line Items] | ||||||
Lease expiration date | Jul. 31, 2026 | |||||
Operating lease extended period | 36 months | |||||
Lessee, operating lease, existence of option to extend [true false] | true | |||||
Tianjin [Member] | ||||||
Leases [Line Items] | ||||||
Lease description | The Company completed the transition of antenna manufacturing from its Tianjin, China facility to contract manufacturers during 2022. In April 2022, the Company vacated the manufacturing facility and moved a small team of employees associated with sourcing, quality, and local customer support to a new leased facility in Tianjin, China. The Company entered into a two-year lease ending December 31, 2023 for 1,694 square feet of space in a new office located in Tianjin, China. The Company recognized a present value of the right of use asset of $0.1 million for this new office lease. | |||||
Operating lease term of contract | 2 years | |||||
Area of lease | ft² | 1,694 | |||||
Right of Use Asset | $ 100 | |||||
Lease expiration date | Dec. 31, 2023 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ in Millions | 1 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Subordinated Borrowings [Abstract] | ||
Loan period | 5 years | 5 years |
Payment of principal loan amount | $ 0.1 | $ 0.1 |
Loan interest rate | 0.57% | 0.57% |
Borrowings termination date | 2026-05 | |
Repayments of loan | $ 0.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | |||||
Income tax expense (benefit) | $ (434) | $ 5 | $ (396) | $ 17 | |
Statutory rate | 21% | ||||
Net deferred tax assets | 14,600 | $ 14,600 | $ 15,300 | ||
Operating loss and credit carry forward, expiration period | The Company’s federal NOLs generated in 2018 and later periods will not expire, but the Company’s NOLs generated through December 31, 2017 have a finite life primarily based on the 20-year carry forward of federal net operating losses. The timing differences have a ratable reversal pattern over 12 years | ||||
Net operating loss carry forward period | 20 years | ||||
Domestic deferred tax assets ratable reversal pattern period | 12 years | ||||
Gross unrecognized tax benefit | 800 | $ 800 | $ 800 | ||
Deferred payroll taxes | 200 | 200 | |||
Sweden [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax expense (benefit) | 400 | ||||
Domestic Tax Authority [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net deferred tax assets | 11,900 | 11,900 | |||
Foreign Tax Authority | CHINA [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net deferred tax assets | 1,100 | 1,100 | |||
Foreign Tax Authority | Sweden [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Net deferred tax assets | $ 1,600 | $ 1,600 |
Product Line and Geographic I_3
Product Line and Geographic Information - Result of Product Line Revenues and Gross Profits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Results of operations by segments | ||||
Revenues | $ 25,988 | $ 22,411 | $ 73,506 | $ 61,799 |
Gross Profit | $ 11,936 | $ 10,254 | $ 32,696 | $ 28,533 |
Gross Profit % | 45.90% | 45.80% | 44.50% | 46.20% |
Operating Segments [Member] | Antennas & Industrial IoT Devices [Member] | ||||
Results of operations by segments | ||||
Revenues | $ 18,653 | $ 16,686 | $ 53,310 | $ 43,971 |
Gross Profit | $ 6,562 | $ 5,655 | $ 17,435 | $ 14,578 |
Gross Profit % | 35.20% | 33.90% | 32.70% | 33.20% |
Operating Segments [Member] | Test & Measurement Products [Member] | ||||
Results of operations by segments | ||||
Revenues | $ 7,683 | $ 5,921 | $ 20,698 | $ 18,540 |
Gross Profit | $ 5,544 | $ 4,635 | $ 15,466 | $ 14,057 |
Gross Profit % | 72.20% | 78.30% | 74.70% | 75.80% |
Corporate, Non-Segment [Member] | ||||
Results of operations by segments | ||||
Revenues | $ (348) | $ (196) | $ (502) | $ (712) |
Gross Profit | $ (170) | $ (36) | $ (205) | $ (102) |
Product Line and Geographic I_4
Product Line and Geographic Information - Customers Accounted Revenues by Geographic Location (Detail) - Revenue [Member] - Geographic Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Europe, Middle East, & Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 20% | 23% | 21% | 23% |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 7% | 9% | 6% | 8% |
Other Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 3% | 3% | 3% | 4% |
Total Foreign Sales [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Sales | 30% | 35% | 30% | 35% |
Product Line and Geographic I_5
Product Line and Geographic Information - Schedule of Revenues and Total Trade Accounts Receivable Represents Customer Accounted for 10% or More Percentage (Detail) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Revenue, Segment Benchmark | Customer C | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 18% | 5% | 15% | 8% | |
Revenue, Segment Benchmark | Customer A | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 11% | 2% | 9% | 4% | |
Trade Accounts Receivable [Member] | Customer C | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 9% | 9% | |||
Trade Accounts Receivable [Member] | Customer A | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk percentage | 27% | 5% |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Order shipments, description | A majority of the Company’s revenue is short cycle in nature with shipments within one year from order. | ||
Payment terms, description | The Company's payment terms generally range between 30 to 90 days. | ||
Refund liability | $ 301,000 | $ 248,000 | |
Contract assets | 0 | 0 | |
Contract with customer liability, revenue recognized | 1,200,000 | $ 700,000 | |
Accrued Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Refund liability | 300,000 | 200,000 | |
Contract liability | 700,000 | 900,000 | |
Inventories [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Product return asset | $ 100,000 | $ 100,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information1 (Detail) | Sep. 30, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Period for performance obligation to provide software maintenance and support | 1 year |