Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 13, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PCTI | ||
Entity Registrant Name | PCTEL, Inc. | ||
Entity Central Index Key | 0001057083 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Common Stock, $.001 Par Value Per Share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-27115 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0364943 | ||
Entity Common Stock Shares Outstanding | 18,990,921 | ||
Entity Public Float | $ 86,104,893 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
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 | ||
Documents Incorporated by Reference | Certain sections of the registrant's definitive proxy statement ( the “Def initive Proxy Statement”) relating to its 2023 Annual Stockholders’ Meeting are to be incorporated by reference into Part III of this Annual Report on Form 10-K. If the Definitive Proxy Statement is not filed with the Commission within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, then the registrant will file an amendment to this Annual Report on Form 10-K within such 120-day period that will contain the information required to be included or incorporated by reference into Part III of this Annual Report. | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Firm ID | 248 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Chicago, Illinois |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 7,736 | $ 8,192 |
Short-term investment securities | 22,254 | 22,562 |
Accounts receivable, net of allowances of $132 and $64 at December 31, 2022 and December 31, 2021, respectively | 18,853 | 18,905 |
Inventories, net | 18,918 | 13,691 |
Prepaid expenses and other assets | 1,861 | 1,747 |
Total current assets | 69,622 | 65,097 |
Property and equipment, net | 10,004 | 11,949 |
Goodwill | 5,935 | 6,334 |
Intangible assets, net | 1,045 | 1,579 |
Other noncurrent assets | 3,269 | 2,438 |
TOTAL ASSETS | 89,875 | 87,397 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Accounts payable | 4,648 | 5,360 |
Accrued liabilities | 12,605 | 11,117 |
Total current liabilities | 17,253 | 16,477 |
Long-term liabilities | 3,624 | 3,999 |
Total liabilities | 20,877 | 20,476 |
Stockholders’ equity: | ||
Common stock, $0.001 par value, 50,000,000 shares authorized at December 31, 2022 and December 31, 2021, and 18,748,529 and 18,238,030 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 19 | 18 |
Additional paid-in capital | 128,370 | 123,998 |
Accumulated deficit | (57,941) | (56,735) |
Accumulated other comprehensive loss | (1,450) | (360) |
Total stockholders’ equity | 68,998 | 66,921 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 89,875 | $ 87,397 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 132 | $ 64 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 18,748,529 | 18,238,030 |
Common stock, shares outstanding | 18,748,529 | 18,238,030 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
REVENUES | $ 99,428 | $ 87,807 |
COST OF REVENUES | 53,695 | 47,329 |
GROSS PROFIT | 45,733 | 40,478 |
OPERATING EXPENSES: | ||
Research and development | 12,833 | 13,358 |
Sales and marketing | 14,747 | 13,327 |
General and administrative | 14,517 | 12,444 |
Amortization of intangible assets | 263 | 210 |
Restructuring expenses | 1,309 | 900 |
Total operating expenses | 43,669 | 40,239 |
OPERATING INCOME | 2,064 | 239 |
Other income (expense), net | 431 | (47) |
INCOME BEFORE INCOME TAXES | 2,495 | 192 |
(Benefit) expense for income taxes | (374) | 39 |
NET INCOME | $ 2,869 | $ 153 |
Net Income per Share: | ||
Basic | $ 0.16 | $ 0.01 |
Diluted | $ 0.15 | $ 0.01 |
Weighted Average Shares: | ||
Basic | 18,150,289 | 18,017,006 |
Diluted | 18,529,437 | 18,121,804 |
Cash dividend per share | $ 0.22 | $ 0.22 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME | $ 2,869 | $ 153 |
OTHER COMPREHENSIVE LOSS | ||
Foreign currency translation adjustments | (1,090) | (378) |
COMPREHENSIVE INCOME (LOSS) | $ 1,779 | $ (225) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid - In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
BALANCE at beginning of year at Dec. 31, 2020 | $ 71,398 | $ 18 | $ 128,250 | $ (56,888) | $ 18 |
Stock-based compensation expense | 2,921 | 1 | 2,920 | 0 | 0 |
Issuance of shares for stock purchase and option plans | 840 | 0 | 840 | 0 | 0 |
Cancellation of shares for payment of withholding tax | (786) | 0 | (786) | 0 | 0 |
Repurchase of common stock | (3,193) | (1) | (3,192) | 0 | 0 |
Dividends paid | (4,034) | 0 | (4,034) | 0 | 0 |
Net income | 153 | 0 | 0 | 153 | 0 |
Change in cumulative translation adjustment, net | (378) | 0 | 0 | 0 | (378) |
BALANCE at end of year at Dec. 31, 2021 | 66,921 | 18 | 123,998 | (56,735) | (360) |
Stock-based compensation expense | 3,988 | 1 | 3,987 | 0 | 0 |
Issuance of shares for stock purchase and option plans | 797 | 0 | 797 | 0 | 0 |
Cancellation of shares for payment of withholding tax | (412) | 0 | (412) | 0 | 0 |
Dividends paid | (4,075) | 0 | 0 | (4,075) | 0 |
Net income | 2,869 | 0 | 0 | 2,869 | 0 |
Change in cumulative translation adjustment, net | (1,090) | 0 | 0 | 0 | (1,090) |
BALANCE at end of year at Dec. 31, 2022 | $ 68,998 | $ 19 | $ 128,370 | $ (57,941) | $ (1,450) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend per share | $ 0.22 | $ 0.22 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities: | ||
Net income from continuing operations | $ 2,869 | $ 153 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 2,811 | 3,027 |
Intangible asset amortization | 336 | 267 |
Stock-based compensation | 3,988 | 2,921 |
Loss on disposal/sale of property and equipment | 1 | 113 |
Restructuring costs | (291) | 353 |
Bad debt provision | 85 | (44) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | (275) | (896) |
Inventories | (5,533) | (2,481) |
Prepaid expenses and other assets | 153 | 531 |
Deferred tax assets | (909) | 0 |
Accounts payable | (605) | 14 |
Income taxes payable | 430 | 3 |
Other accrued liabilities | 1,127 | 1,417 |
Deferred revenue | (39) | 295 |
Net cash provided by operating activities | 4,148 | 5,673 |
Investing Activities: | ||
Capital expenditures | (809) | (2,330) |
Purchase of investments | (25,993) | (25,928) |
Redemptions/maturities of short-term investments | 26,301 | 38,588 |
Cash paid for acquisition, net of cash acquired | 0 | (6,277) |
Net cash (used in) provided by investing activities | (501) | 4,053 |
Financing Activities: | ||
Proceeds from issuance of common stock | 797 | 840 |
Payment of withholding tax on stock-based compensation | (412) | (786) |
Principle payments on finance leases | (61) | (73) |
Purchase of common stock from repurchase program | 0 | (3,193) |
Cash dividends | (4,075) | (4,034) |
Net cash used in financing activities | (3,751) | (7,246) |
Net (decrease) increase in cash and cash equivalents | (104) | 2,480 |
Effect of exchange rate changes on cash | (352) | (49) |
Cash and cash equivalents, beginning of year | 8,192 | 5,761 |
Cash and Cash Equivalents, End of Year | 7,736 | 8,192 |
Other information: | ||
Cash paid for income taxes | 40 | 30 |
Cash paid for interest | 5 | 7 |
Non-cash investing and financing information: | ||
(Decreases) increases to additional paid-in capital related to restricted stock | (90) | 88 |
Issuance of restricted common stock, net of cancellations | 967 | 575 |
Recognition of ROU assets under operating leases | 287 | 245 |
Recognition of ROU assets under finance leases | $ 32 | $ 63 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Nature of Operations PCTEL, Inc. (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. We solve complex wireless challenges to help organizations stay connected, transform, and grow and we have expertise in RF, digital and mechanical engineering. We have two businesses (antennas & Industrial IoT devices and test & measurement products). Our principal executive offices are located at 471 Brighton Drive, Bloomingdale, Illinois 60108. Our telephone number at that address is (630) 372-6800 and our website is www.pctel.com . Additional information about our Company can be obtained on our website; however, the information within, or that can be accessed through, our website, is not part of this report. Basis of Consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. Foreign Operations The Company is exposed to foreign currency fluctuations due to its foreign operations and because products are sold internationally. The functional currency for the Company’s foreign operations is predominantly the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using the year-end exchange rate for assets and liabilities and average monthly rates for revenue and expense accounts. Adjustments resulting from translation are included in accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses resulting from other transactions originally in foreign currencies and then translated into U.S. dollars are included in the consolidated statements of income. For the year ended December 31, 2022, approximately 11 % of revenue and 12 % of expenses were transacted in foreign currencies as compared to 9 % and 21 % for the year ended December 31, 2021. For the year ended December 31, 2022, foreign currency transactions resulted in foreign exchange gains of $ 0.2 million and for the year ended December 31, 2021, foreign currency transactions resulted in foreign exchange losses of $ 0.1 million. Foreign exchange gains and losses are recorded in other income in the consolidated statement of income. Fair Value of Financial Instruments The Company follows accounting pronouncements 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 and other investments are financial assets with carrying values that approximate fair value due to the short-term nature of these assets. Accounts payable is a financial liability with a carrying value that approximates fair value due to the short-term nature of these liabilities. Cash and Cash Equivalents and Investments The Company’s cash and cash equivalents and investments consist of the following: December 31, December 31, 2022 2021 Cash $ 5,780 $ 6,789 Cash equivalents 1,956 1,403 Short-term investments 22,254 22,562 $ 29,990 $ 30,754 Cash and Cash Equivalents On December 31, 2022 and 2021, cash and cash equivalents included bank balances and investments with original maturities less than 90 days. On December 31, 2022 and 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 under 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 cash in the Company’s U.S. banks is insured by the Federal Deposit Insurance Corporation up to the insurable limit of $ 250 . The Company's cash and cash equivalents in foreign bank accounts consist of the following: December 31, December 31, 2022 2021 China $ 2,672 $ 2,800 Sweden 1,868 1,004 France 0 105 $ 4,540 $ 3,909 The Company’s cash in these foreign bank accounts is not insured. As of December 31, 2022, the Company has no intentions 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 On December 31, 2022 and 2021, the Company’s short-term investments consisted of BBB or higher rated corporate bonds and certificates of deposit. All the investments on December 31, 2022 and 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 and the bonds and certificates of deposit classified as long-term investments have maturities greater than one year but less than two years . The Company’s bond investments are recorded at the purchase price and carried at amortized cost. Cash equivalents and Level 1 and Level 2 investments measured at fair value were as follows: December 31, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Certificates of deposit $ 0 $ 0 $ 0 $ - $ 0 $ 0 Money market funds 1,956 0 1,956 1,403 0 1,403 Total Cash Equivalents $ 1,956 $ 0 $ 1,956 $ 1,403 $ 0 $ 1,403 Short-Term Investments: Corporate bonds $ 0 $ 21,145 $ 21,145 $ 0 $ 19,659 $ 19,659 Certificates of deposit 1,109 0 1,109 2,903 0 2,903 Total Short-Term Investments $ 1,109 $ 21,145 $ 22,254 $ 2,903 $ 19,659 $ 22,562 Cash equivalents and Investments - book value $ 3,065 $ 21,145 $ 24,210 $ 4,306 $ 19,659 $ 23,965 Unrealized (losses) gains $ 0 $ ( 59 ) $ ( 59 ) $ 1 $ ( 2 ) $ ( 1 ) Cash equivalents and Investments - fair value $ 3,065 $ 21,086 $ 24,151 $ 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 1. For the Level 2 investments, the Company uses quoted prices of similar assets in active markets. There were no Level 3 investments on December 31, 2022 or 2021. The fair values in the table above reflect net unrealized losses of $ 59 and $ 1 on December 31, 2022 and December 31, 2021, respectively. Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at invoiced amount with standard net terms for most customers that range between 30 and 90 days. The Company extends credit to its customers based on an evaluation of the customer’s financial condition and collateral is generally not required. The Company records allowances 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: December 31, 2022 December 31, 2021 Credit loss provision $ 92 $ 26 Credit allowances 40 38 Total allowances $ 132 $ 64 The Company is exposed to credit losses primarily through the sale of products. The Company’s expected loss methodology for accounts receivable is developed using 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 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 balances with 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 $ 92 at December 31, 2022 and $ 26 at December 31, 2021. The following table summarizes the allowance for credit losses for the years ended December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Beginning Balance $ 26 $ 66 Current period reserve (benefit) for credit losses 66 ( 40 ) Ending Balance $ 92 $ 26 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 December 31, 2022 and 2021 were composed of raw materials, work-in-process, and finished goods. The Company had consigned inventory of $ 0.2 million and $ 0.4 million as of at December 31, 2022 and 2021, respectively. The Company records allowances to reduce the value of inventory to the lower of cost or market, including allowances for excess and obsolete inventory. Reserves for excess inventory are calculated based on the Company’s estimate of inventory more than normal and planned usage. Obsolete reserves are based on the Company’s identification of inventory where carrying value is above net realizable value. The allowance for inventory losses was $ 3.1 million and $ 4.1 million as of December 31, 2022 and 2021, respectively. Inventories consisted of the following: December 31, December 31, Raw materials $ 9,064 $ 6,171 Work in process 1,076 690 Finished goods 8,778 6,830 Inventories, net $ 18,918 $ 13,691 Prepaid and Other Current 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 sales and operating expenses in the consolidated statements of income. Maintenance and repairs are expensed as incurred. Property and equipment consisted of the following: December 31, December 31, Building $ 6,922 $ 6,892 Computers and office equipment 10,217 10,604 Manufacturing and test equipment 14,661 16,305 Furniture and fixtures 1,475 1,455 Leasehold improvements 1,965 3,021 Motor vehicles 20 20 Total property and equipment 35,260 38,297 Less: Accumulated depreciation and amortization ( 27,026 ) ( 28,118 ) Land 1,770 1,770 Property and equipment, net $ 10,004 $ 11,949 Depreciation and amortization expense was approximately $ 2.8 million and $ 3.0 million for the years ended December 31, 2022 and 2021, respectively. Liabilities Accrued liabilities consisted of the following: December 31, December 31, Payroll and other employee benefits $ 4,318 $ 2,266 Inventory receipts 3,720 4,302 Paid time off 1,001 1,284 Income and sales taxes 836 415 Operating leases 527 475 Deferred revenues 495 538 Professional fees and contractors 346 233 Warranties 317 257 Customer refunds for estimated returns 235 248 Employee stock purchase plan 232 253 Real estate taxes 158 156 Finance leases 51 62 Restructuring 0 368 Other 369 260 Total $ 12,605 $ 11,117 Long-term liabilities consisted of the following: December 31, December 31, Operating leases $ 3,327 $ 3,600 Deferred revenue 181 181 Finance leases 73 92 Other 43 126 Total $ 3,624 $ 3,999 Revenue Recognition The Company sells antennas and Industrial IoT devices and test & measurement products. All 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.” The Company satisfies its performance obligations related to the sale of its products 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 customer 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 recognizes revenue for sales of its products when control transfers, which is predominantly upon shipment from its factory. For products shipped on consignment, the Company recognizes revenue upon delivery from the consignment location. The Company allows its major antenna product distributors to return product under specified terms and conditions and accrues for product returns. See Note 14 for additional information related to revenue policies. Research and Development Costs The Company expenses research and development costs as incurred. To date, the Company has expensed all software development costs related to research and development because the costs incurred subsequent to the products reaching technological feasibility were not significant. Advertising Costs Advertising costs are expensed in the period in which they are incurred. Advertising expense was $ 0.2 million and $ 0.3 million during the year ended December 31, 2022 and December 31, 2021, respectively. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and deferred tax assets are recognized for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are provided against deferred tax assets, which are not likely to be realized. On a regular basis, management evaluates the recoverability of deferred tax assets and the need for a valuation allowance. The Company recognizes the effect of income tax positions only if those positions are more likely than not to being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 % likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Deferred tax assets arise when the Company recognizes charges or expenses in the financial statements that will not be allowed as income tax deductions until future periods. The deferred tax assets also include unused tax net operating losses and tax credits that the Company is allowed to carryforward to future years. Accounting rules permit the Company to carry the deferred tax assets on the balance sheet at full value as long as it is more likely than not the deductions, losses, or credits will be used in the future. A valuation allowance must be recorded against a deferred tax asset if this test cannot be met. The Company had a full valuation allowance for U.S. and China of $ 13.4 million and a partial valuation allowance for Sweden of $ 0.9 million at December 31, 2022, and a full valuation allowance for all Company tax jurisdictions of $ 15.3 million at December 31, 2021. See Note 6 for more information on the deferred tax valuation allowance. 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. At December 31, 2021 the Company had deferred payroll taxes of $ 0.2 million. The Company recorded a deferred tax asset for the payroll tax liability that was not deductible for income tax purposes. In December 2022, the remaining deferred payroll taxes were remitted to the taxing authorities. Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in cost of sales in the accompanying consolidated statements of income. Shipping and Handling Costs Shipping and handling costs are included on a gross basis in cost of sales in the accompanying consolidated statements of income. Goodwill The Company performs an annual impairment test of goodwill as of the end of the first month of the fourth fiscal quarter (October 31st), 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 tests, 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. The process of evaluating the potential impairment of goodwill is subjective because it requires the use of estimates and assumptions in determining a reporting unit’s fair value. The Company calculates the fair value of each reporting unit by using the income approach based on the present value of future discounted cash flows. The discounted cash flow method requires the Company to use estimates and judgments about the future cash flows of the reporting units. Although the Company bases cash flow forecasts on assumptions that are consistent with plans and estimates the Company uses to manage the underlying reporting units, there is significant judgment in determining the cash flows attributable to these reporting units, including markets and market share, sales volumes and mix, research and development expenses, tax rates, capital spending, discount rate and working capital changes. Cash flow forecasts are based on reporting unit operating plans for the early years and business projections in later years. The Company believes the accounting estimate related to the valuation of goodwill is a critical accounting estimate because it requires the Company to make assumptions that are highly uncertain about the future cash flows of the reporting units. Changes in these estimates can have a material impact on the Company’s financial statements. The Company performed its annual goodwill test at October 31, 2022 and at October 31, 2021 for the goodwill of $ 5.8 million and $ 6.3 million, respectively. The decrease in goodwill in 2022 was due to foreign currency fluctuations with the Swedish krona. The Company performed both a qualitative analysis of goodwill and a quantitative analysis. There were no triggering events during the year, and the fair value of the reporting unit was higher than its carrying value in the quantitative analysis. Based on the Company’s analysis, there was no impairment of goodwill as of the testing dates because the fair value of the reporting unit exceeded its carrying value by a significant margin. Long-Lived and Definite-Lived Intangible assets The Company reviews definite-lived intangible assets, investments, and other long-lived assets for impairment when events or changes in circumstances indicate that their carrying values may not be fully recoverable. This analysis differs from the Company’s goodwill analysis in that definite-lived intangible asset impairment is only deemed to have occurred if the sum of the forecasted undiscounted future cash flows related to the assets being evaluated is less than the carrying value of the assets. The estimate of long-term undiscounted cash flows includes long-term forecasts of revenue growth, gross margins, and operating expenses. All these items require significant judgment and assumptions. There were no impairments related to long-lived assets used for operations during the years ended December 31, 2022 and 2021. Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-14). 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 adoption of this standard did not 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 was effective upon issuance and generally could be applied through December 31, 2022 . The adoption of this standard did not 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 adoption of this standard did not have an impact on our financial statements or the related disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 831): Disclosures by Business Entities about Government Assistance. This Update, which aims to increase transparency of government assistance, require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. Under this ASU, an entity is required to disclose (1) the types of assistance, (2) an entity’s accounting for assistance, and (3) the effect of the assistance on entity’s financial statements. This Update is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early adoption was permitted. The Company did not utilize any government assistance programs in 2022 and, as such, the adoption of this ASU did not have an impact on either the 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. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 2. Earnings per Share The Company computes earnings per share data under two different disclosures, basic and diluted, for all periods in which consolidated statements of income are presented. Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, less shares subject to repurchase. Diluted earnings per share are computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents consist of stock options using the treasury stock method. Common stock options are excluded from the computation of diluted earnings per share if their effect is anti-dilutive. The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share: Years Ended December 31, 2022 2021 Basic Income Per Share computation: Numerator: Net income $ 2,869 $ 153 Denominator: Common shares outstanding 18,150,289 18,017,006 Net Income per common share - basic Net income $ 0.16 $ 0.01 Diluted Income Per Share computation: Denominator: Common shares outstanding 18,150,289 18,017,006 Restricted shares subject to vesting 139,280 104,798 Performance related awards 239,836 0 Common stock option grants 32 0 Total shares 18,529,437 18,121,804 Income per common share - diluted Net income $ 0.15 $ 0.01 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | 3. 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 Sale Purchase Agreement (“SPA”) between PCTEL and Allgon Aktiebolag, a Swedish company and holder of the outstanding stock of Smarteq. Smarteq owned all the outstanding stock of SAS Smarteq France (“Smarteq France”), which engaged in sales of Smarteq products. Smarteq France was merged into Smarteq Wireless Aktiebolag on November 1, 2022. 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 ($ 6.8 million), all of which was provided from PCTEL’s existing cash. The Company believes the acquisition of Smarteq will provide a strong local presence, expertise, and channel partners to accelerate revenue growth in Europe, as well as a complementary portfolio of products for our Industrial IoT and intelligent transportation customers worldwide. The Company has only one segment but reports revenues and gross margin by its two product lines. The results for Smarteq are included 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 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 require 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 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. Inventories of $ 1.3 million include a net positive fair value adjustment of $ 0.2 million. Finished goods were valued assuming hypothetical revenues adjusted for disposal costs and an adjustment was recorded for the inventory value not expected to be realized. 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 expense was recorded based on the consumption of those parts. Approximately $ 0.4 million for the inventory fair step-up was recognized during the period from the acquisition date through December 31, 2021. The Company assumed gross accounts receivable of $ 1.4 million. The Company did not have any issue with collectibility. 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. 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 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. The Company booked a full valuation allowance against the net deferred tax assets. While the Company expected book and tax profits in 2021 and future periods, Smarteq had recorded a three-year cumulative tax loss. 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. See footnote 6 related to income taxes for information related to deferred tax assets for Smarteq Wireless. Goodwill recorded in connection with the acquisition was $ 3.2 million. The Company does not expect to deduct any of the acquired goodwill for tax purposes. The Company recorded $ 0.3 million of transaction costs for the three months ended June 30, 2021 in general and administrative expenses in the statement of operations. The transaction costs will not be 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: Year Ended December 31, 2022 2021 Net Revenue - pro forma combined $ 99,428 $ 90,514 Net Income - pro forma combined 2,869 203 Weighted Average Shares: Basic 18,150 18,017 Diluted 18,529 18,122 Net Income per Share: Basic $ 0.16 $ 0.01 Diluted $ 0.15 $ 0.01 The following adjustments were included in the unaudited pro forma combined net revenues: Year Ended December 31, 2022 2021 Net Revenue $ 99,428 $ 87,807 Add: Net Revenue - acquired business 0 2,707 Net Revenue - pro forma combined $ 99,428 $ 90,514 The following adjustments were included in the unaudited pro forma combined net income: Year Ended December 31, 2022 2021 Net Income $ 2,869 $ 153 Add: Results of operations of acquired business 0 179 Less: pro forma adjustments Amortization of intangibles 0 ( 120 ) Interest income 0 ( 9 ) Net Income - pro forma combined $ 2,869 $ 203 The unaudited pro forma financial information has been adjusted to reflect the amortization expense for acquired intangibles and pro forma interest income. 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 are 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 4. Goodwill and Other Intangible Assets Goodwill The change in the carrying amount of goodwill during the year ended December 31, 2022 is as follows: Amount Balance at December 31, 2021 $ 6,334 Foreign currency translation ( 399 ) Balance at December 31, 2022 $ 5,935 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 years ended December 31, 2022 and December 31, 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 six months to five years . The summary of amortization expense in the consolidated statements of income is as follows: Years Ended December 31, 2022 2021 Cost of revenues $ 73 $ 57 Operating expenses 263 210 Total $ 336 $ 267 The summary of other intangible assets, net is as follows: December 31, 2022 December 31, 2021 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Customer contracts and relationships $ 17,512 $ 17,091 $ 421 $ 17,609 $ 16,978 $ 631 Patents and technology 9,995 9,761 234 10,049 9,698 351 Trademarks and trade names 1,484 1,143 341 1,563 1,051 512 Other 96 47 49 110 25 85 $ 29,087 $ 28,042 $ 1,045 $ 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 year ended December 31, 2022, the Company recorded amortization expense of $ 0.3 million and foreign currency translation adjustment of $ 0.2 million. The Company amortizes intangible assets with finite lives on a straight-line basis over the estimated useful lives, which range from six months to five years . In the Consolidated Statement of Income, amortization expense was approximately $ 0.3 million for the years ended December 31, 2022 and 2021. Amortization for technology assets is included in cost of revenues and amortization for all other intangible assets is included in operating expenses. For the years ended December 31, 2022 and 2021, intangible amortization of $ 0.1 million was included in cost of revenues. 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 .5 to 5 years 3.6 The future amortization expenses are as follows: Fiscal Year Amount 2023 $ 325 2024 312 2025 306 2026 102 2027 0 Total $ 1,045 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | 5. Restructuring The following table summarizes the Company’s restructuring accrual activity for the years ended December 31, 2022, and 2021: Severance Lease Termination Total Balance at January 1, 2021 $ 0 $ 15 $ 15 Restructuring expense 900 0 900 Payments made ( 532 ) ( 15 ) ( 547 ) Balance at December 31, 2021 $ 368 $ 0 $ 368 Restructuring expense 1,309 0 1,309 Payments made ( 1,677 ) 0 ( 1,677 ) Balance at December 31, 2022 $ 0 $ 0 $ 0 The restructuring liability is recorded on the balance sheet in accrued liabilities at December 31, 2022 and 2021. China Manufacturing The Company initiated a restructuring plan in 2019 to transition manufacturing from its Tianjin, China facility to contract manufacturers in China and to the Company’s Bloomingdale, Illinois facility due to uncertainties with its Tianjin facility lease and also to optimize the cost structure of the antenna product line and create flexibility in antenna manufacturing. For the year ended December 31, 2021, the Company incurred restructuring expenses of $ 0.1 million for employee severance and benefits related to the separation of 16 employees. During the first quarter 2022, the Company completed the manufacturing transition, and 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. For the year ended December 31, 2022, the Company incurred restructuring expenses of $ 1.3 million for employee severance and benefits related to the separation of 78 employees. Severance costs were paid from the Company’s cash in its China bank accounts. See Note 8 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 in addition to office 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. Two former Beijing employees work through a third-party employment agency to provide sales and technical sales support. In January 2022, the Company paid $ 0.4 million related to severance benefits accrued at December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The domestic and foreign components of the income (loss) before expense for income taxes were as follows: Years Ended December 31, 2022 2021 Domestic $ 2,375 $ 1,359 Foreign 120 ( 1,167 ) $ 2,495 $ 192 The expense for income taxes consisted of the following: Years Ended December 31, 2022 2021 Current: Federal $ 41 $ 0 State 440 33 Foreign ( 73 ) 6 408 39 Deferred: Federal 0 0 State 0 0 Foreign ( 782 ) 0 ( 782 ) 0 Total $ ( 374 ) $ 39 A reconciliation of the expense for income taxes at the federal statutory rate compared to the expense at the effective tax rate is as follows: Years Ended December 31, 2022 2021 Statutory federal income tax rate 21 % 21 % State income tax, net of federal benefit 6 % 56 % Tax effect of permanent differences 2 % 56 % Change in valuation allowance - 25 % 16 % Effective state rate change to deferred tax assets - 2 % 8 % Stock-based compensation windfalls 5 % - 53 % Foreign income taxed at different rates - 14 % 53 % Research and development credits - 18 % - 134 % Return to provision adjustments 10 % - 3 % - 15 % 20 % The Company recorded net income tax benefit of $ 0.4 million for the year ended December 31, 2022. The 2022 effective rate differed from the Federal rate of 21 % primarily due to the partial release of the valuation allowance for the Company's Sweden subsidiary. The Company’s valuation allowance is due to the uncertainty regarding the utilization of the deferred tax assets. The Company recorded net income tax expense of $ 39 for the year ended December 31, 2021. The 2021 effective rate differed from the Federal rate of 21 % primarily because the Company had a full valuation allowance on its deferred tax assets. The Company’s valuation allowance is due to the uncertainty regarding the utilization of the deferred tax assets. Under the U.S. tax guidelines, a U.S. shareholder of controlled foreign corporations (“CFCs”) is required to include in gross income the amount of its global intangible low-taxed income (“GILTI”). Generally, the GILTI inclusion is the U.S. shareholder’s allocable share of certain income earned through its CFCs (“net CFC tested income”) in excess of a deemed 10 % return on the shareholder’s allocable share of certain of the CFC’s depreciable, tangible assets less certain interest expense items (“net deemed tangible income return”). The Company elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the period cost method). The amount included for GILTI did not have a significant impact on the Company’s tax provision for the years ended December 31, 2022 or December 31, 2021. The Company recognizes all interest and penalties as income tax expense. There was no income tax expense related to interest and penalties for the years ended December 31, 2022 or 2021. Deferred Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net deferred tax accounts consist of the following: December 31, 2022 2021 Deferred Tax Assets: Net operating loss carryforwards $ 4,781 $ 6,874 Federal, foreign, and state credits 3,049 2,666 Research and experimental expenditures 1,783 0 Amortization 1,768 2,346 Inventory reserves 926 1,076 Deferred gain 868 863 Stock compensation 779 498 Deferred rent 435 476 Depreciation 242 0 Accrued vacation 222 276 Other 520 417 Gross deferred tax assets 15,373 15,492 Valuation allowance ( 14,275 ) ( 15,258 ) Net deferred tax asset 1,098 234 Deferred Tax Liabilities: Amortization ( 215 ) 0 Depreciation ( 1 ) ( 234 ) Net Deferred Tax Assets $ 882 $ 0 At December 31, 2022, the Company had gross deferred tax assets of $ 15.4 million, deferred tax liabilities of $ 0.2 million and a valuation allowance of $ 14.3 million. At December 31, 2021, the Company had gross deferred tax assets of $ 15.5 million, deferred tax liabilities of $ 0.2 million and a valuation allowance of $ 15.3 million. At December 31, 2022 and 2021 respectively, the net deferred tax assets included $ 1.6 million and $ 2.3 million related to intangible assets acquired under purchase accounting which are amortized for tax purposes over 15 years, but for shorter periods under generally accepted accounting principles. At December 31, 2022, the net deferred tax assets also included $ 1.8 million related to Research and experimental expenditures which were capitalized in accordance with IRC section 174. The deferred tax assets net of deferred tax liabilities consisted of the following balances by tax jurisdiction: December 31, 2022 2021 United States $ 11,981 $ 11,941 China 1,410 1,169 Sweden 1,766 2,148 Net Deferred Tax Assets before valuation allowance $ 15,157 $ 15,258 Valuation Allowance ( 14,275 ) ( 15,258 ) Net Deferred Tax Assets $ 882 $ 0 The Company continually evaluates the realizability of deferred tax assets and the requirement for a valuation allowance against those not expected to be realized. As part of the analysis, the Company considers positive and negative evidence which may include the application of significant judgment. The Company’s net deferred tax assets consist of assets related to net operating losses and credits as well as assets related to timing differences. The Company’s net operating losses and credits have a finite life primarily based on the 20 -year carryforward rule for federal net operating losses (NOLs) generated through December 31, 2017. The timing differences have a ratable reversal pattern over approximately 10 years. Under the new rules enacted with the Tax Act, tax losses incurred in 2018 and future periods will not expire, thereby extending the period by which the Company’s deferred tax assets can be realized. However, these post 2017 losses are subject to a limitation of 80 % of current taxable income. In accordance with ASC 740 “Accounting for Income Taxes” (“ASC 740”), the Company evaluates deferred income tax assets quarterly to determine if valuation allowances are required or should be adjusted. ASC 740 requires that companies assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence, both positive and negative, using a “more likely than not” standard. At December 31, 2022 and December 31, 2021, the Company had a full valuation allowance on its deferred tax assets in its U.S. and China jurisdictions. For U.S. tax purposes, the Company recorded book and taxable income. While the Company has recorded pretax book income for the prior three years and believes its financial outlook remains positive, it did not meet revenue or earnings expectations for the U.S. jurisdiction. Additionally, the Company recognized revenue for one-time projects in fiscal year 2022 which may not repeat in 2023 or future years. Because of difficulties with forecasting financial results historically, and due to the uncertainties associated with inflationary and recessionary issues, the Company maintained a full valuation allowance on its U.S. and China deferred tax assets at December 31, 2022. The Company’s performance versus its projections in both of the prior two years are considered significant negative evidence that is difficult to overcome on a “more likely than not” standard through objectively verifiable data. While the Company believes its financial outlook remains positive, under the accounting standards, objective verifiable evidence will have greater weight than subjective evidence such as the Company’s projections for future growth. Based on positive book and taxable income for Smarteq Wireless in 2021 and 2022, because their results exceeded their projections, and because of higher backlog at December 31, 2022, these facts are considered significant positive evidence. As such, the Company recognized $ 0.8 million related to the partial release of its valuation allowance for Smarteq Wireless. Based on an evaluation in accordance with the accounting standards, as of December 31, 2022, the Company has a valuation allowance of $ 12.0 million which was recorded against the net U.S. deferred tax assets, a valuation allowance of $ 1.4 million recorded against the net China deferred tax assets, and $ 0.9 million recorded against the net Sweden deferred tax assets in order to measure the deferred tax assets that are more likely than not to be realized based on the weight of all the available evidence. Until an appropriate level of profitability is attained and sufficient positive evidence is available to outweigh negative evidence, the Company expects to maintain a full valuation allowance on its U.S. net deferred tax assets. Any U.S. or foreign tax benefits or tax expense recorded on its consolidated statements of income 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. Accounting for Uncertainty for Income Taxes A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2022 2021 Beginning of period $ 848 $ 808 Addition related to tax positions in current year 67 40 Addition related to tax positions in prior years 67 0 End of period $ 982 $ 848 Because the Company has a full valuation allowance against its U.S. deferred tax assets, the reversal of these unrecognized tax benefits would have no impact on its effective tax rate. The Company does not anticipate that its unrecognized tax benefits will significantly increase or decrease within the next twelve months . Audits The Company and its subsidiaries file income tax returns in the U.S. and various foreign jurisdictions. The Company’s U.S. federal tax returns remain subject to examination for 2017 and subsequent periods, although loss carryovers generated in prior years remain subject to examination. The Company’s state tax returns remain subject to examination for 2015 and subsequent periods. The Company’s foreign tax returns in China remain subject to examination for 2011 and subsequent periods. The Company's foreign tax returns in Sweden remain subject to examination for 2016 and subsequent periods. The Company's foreign tax returns in France remain subject to examination for 2020 and subsequent periods. Summary of Carryforwards At December 31, 2022, the Company has a federal net operating loss carryforward of $ 4.6 million with no expiration. The Company has state net operating loss carryforwards of $ 13.9 million that expire between 2024 and 2041 . Additionally, the Company has $ 2.3 million of federal research credits that expire between 2030 and 2042 and $ 1.5 million of state research credits with no expiration. The Company has a China net operating loss carryforward of $ 3.8 million that expires between 2025 and 2028 and of China research credits of $ 0.4 million that expire between 2024 and 2027 . The Company has a Sweden net operating loss carryforward of $ 9.2 million with no expiration. Investment in Foreign Operations Under the Tax Cut and Jobs Act of 2017, the Company included Section 965 income related to the deemed repatriation of earnings for its subsidiary in China and decreased its NOL carryforward for the tax year beginning January 1, 2018. The Company considers such earnings permanently reinvested. Upon actual repatriation of these earnings, the Company would be subject to local withholding taxes. CARES Act 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 in 2020 and applied for a refund of its Alternative Minimum Tax credit. At December 31, 2021 the Company had deferred payroll taxes of $ 0.2 of payroll taxes and a deferred tax asset for the payroll tax liability that was not deductible for income tax purposes. In December 2022, the remaining deferred payroll taxes were remitted to the taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies 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 was $ 0.2 million at December 31, 2022 and 2021, respectively, and is included in other accrued liabilities in the accompanying consolidated balance sheets. The Company offers repair and replacement warranties of primarily five years for antennas and Industrial IoT devices and for scanning receivers. 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 December 31, 2022 and 2021 and is included in other accrued liabilities in the accompanying consolidated balance sheets. Year Ended December 31, 2022 2021 Beginning balance $ 257 $ 285 Provisions for warranties 203 65 Consumption of reserves ( 143 ) ( 93 ) Ending balance $ 317 $ 257 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 8. 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 on 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 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 years ended December 31, 2022 and 2021 included the following components: Year Ended December 31, 2022 2021 Operating lease costs $ 525 $ 453 Short-term lease costs 69 167 Variable lease costs 10 6 Amortization of finance lease assets 60 72 Interest on finance lease liabilities 5 7 Total lease cost $ 669 $ 705 The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases recorded on the balance sheet as of December 31, 2022: Year Operating Leases Finance Leases 2023 $ 671 $ 56 2024 675 45 2025 585 26 2026 522 5 2027 505 0 Thereafter 1,676 0 Total minimum payments required 4,634 132 Less: amount representing interest 780 8 Present value of net minimum lease payments 3,854 124 Less: current maturities of lease obligations ( 527 ) ( 51 ) Long-term lease obligations $ 3,327 $ 73 The weighted average remaining lease terms and discount rates for all the Company’s operating and finance leases were as follows as of December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Weighted-average remaining lease term - finance leases 2.6 years 3.0 years Weighted-average remaining lease term - operating leases 7.4 years 8.4 years Weighted-average discount rate - finance leases 4 % 4 % Weighted-average discount rate - operating leases 5 % 5 % The table below presents supplemental balance sheet information related to leases during the year ended December 31, 2022 and 2021: Year Ended December 31, Leases Consolidated Balance Sheet Classification 2022 2021 Assets: Operating right-of-use assets Other noncurrent assets $ 2,241 $ 2,289 Finance right-of-use assets Other noncurrent assets 120 148 Total lease assets $ 2,361 $ 2,437 Liabilities: Current Operating lease liabilities Accrued liabilities $ 527 $ 475 Finance lease liabilities Accrued liabilities 51 62 Noncurrent Operating lease liabilities Long-term liabilities 3,327 3,600 Finance lease liabilities Long-term liabilities 73 92 Total lease liabilities $ 3,978 $ 4,229 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 and the Company recorded a $ 0.2 million adjustment for each of the ROU assets and the lease liabilities. As a cost saving initiative, the Company separated all 14 employees from its Beijing office in November 2021 and 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 and 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 this new smaller office. On October 16, 2020, the Wang Zhuang Village Committee issued a notice informing PCTEL Tianjin that the Chinese Party Central Committee and the State Council were accelerating the layout optimization and transformation of the industrial park in which the leased premises is located, and accordingly leases and lease extensions for all premises in the industrial park were suspended. As a result of the uncertainty regarding the Tianjin Lease renewal, the Company accelerated its plan to transition all manufacturing in Tianjin to contract manufacturers. In November 2021, the Company entered into a two-year lease ending December 31, 2023 for 1,694 square feet of office space in Tianjin, China for a small team of employees associated with sourcing, quality, and local customer support and recognized a present value of the right of use asset of $ 0.1 million for this new office lease. The Company completed the transition of antenna manufacturing from its Tianjin, China facility to contract manufacturers during the first quarter of 2022 and, in April 2022, vacated the manufacturing facility and moved to the new leased facility in Tianjin, China. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 9. Shareholders’ Equity Common Stock The activity related to common shares outstanding is as follows: Year Ended December 31, 2022 2021 Beginning of year 18,238,030 18,429,350 Restricted stock awards, net of cancellations 211,519 171,634 Issuance of common stock from purchase of Employee Stock Purchase Plan shares 201,507 164,258 Director share awards 120,696 61,186 Equity awards under Short-Term Incentive Plan 60,590 0 Issuance of common stock on exercise of stock options 0 2,420 Common stock Repurchases 0 ( 495,144 ) Cancellation of stock for withholding tax for vested shares ( 83,813 ) ( 95,674 ) End of Year 18,748,529 18,238,030 Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock in one or more series, each with a par value of $ 0.001 per share. As of December 31, 2022, and 2021, no shares of preferred stock were issued or outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Plans Common Stock Reserved for Future Issuance A summary of the reserved shares of common stock for future issuance are as follows: December 31, Stock Plan 2022 2021 PCTEL, Inc. 2019 Stock Incentive Plan 1,463,639 1,870,260 PCTEL, Inc. 2015 Stock Incentive Plan 299,979 299,979 PCTEL, Inc. 2019 Employee Stock Purchase Plan 1,276,529 1,478,036 Total shares reserved 3,040,147 3,648,275 These shares available exclude stock options outstanding. Stock Incentive Plans At the 2019 Annual Meeting of Shareholders, the shareholders adopted and approved the PCTEL, Inc. 2019 Stock Incentive Plan (the “2019 Stock Plan”) upon the recommendation of the Board of Directors. The purpose of the 2019 Stock Plan is to promote the interests of the Company and its stockholders by aiding the Company in attracting and retaining employees, officers, consultants, independent contractors, and non-employee directors capable of assuring the future success of the Company, to provide such persons with opportunities for stock ownership in the Company and to offer such persons incentives to put forth maximum effort for the success of the Company’s business. The 2019 Stock Plan replaced the PCTEL, Inc. Stock Incentive Plan adopted in 2015 (the “2015 Stock Plan”). The 2019 Stock Plan, which is administered by the Compensation Committee of the Company’s Board of Directors, authorizes the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based awards. The aggregate number of shares that may be issued under all stock-based awards made under the 2019 Stock Plan will be the sum of (i) 2,213,000 shares and (ii) any shares subject to any outstanding award under the 2015 Stock Plan that after the effective date of the 2019 Stock Plan are not purchased, are forfeited, or are reacquired by the Company or otherwise not delivered to the participant due to termination or cancellation of such award. At December 31, 2022, the number of shares available in the 2019 Stock Plan that were from the 2015 Plan was 299,979 . The Board of Directors may from time to time amend, suspend, or terminate the 2019 Stock Plan, subject to its terms. Currently the 2019 Stock Plan does not allow share “recycling”, repricing of stock options or stock appreciation rights or dividend equivalents to be paid on unvested awards. Further, the 2019 Stock Plan does not contain an “evergreen” provision that will automatically increase the number of shares authorized for issuance under the 2019 Stock Plan. Employee Stock Purchase Plan The PCTEL, Inc. 2019 Employee Stock Purchase Plan (“the 2019 ESPP”) is to provide employees with an opportunity to purchase shares of PCTEL common stock through accumulated payroll deductions. Encouraging employees to acquire equity ownership in PCTEL assures a closer alignment of the interests of participating employees with those of the Company’s stockholders. The 2019 ESPP is administered by the Compensation Committee of the Company’s Board of Directors. Subject to change by the administrator, shares of PCTEL common stock may be purchased during consecutive offering periods that begin approximately every six months commencing on the first trading day on or after April 1 and terminating on the last trading day of the offering period ending on September 30 and commencing on the first trading day on or after October 1 and terminating on the last trading day of the offering period ending on March 31. Unless and until the administrator determines otherwise, the purchase price will be equal to 85 % of the fair market value of PCTEL common stock on the first day of an offering period or the last day of an offering period, whichever is lower. The administrator may from time to time amend, suspend, or terminate the 2019 ESPP, subject to its terms. Stock-Based Compensation Expense The consolidated statements of income include $ 4.0 million and $ 2.9 million of stock compensation expense for the years ended December 31, 2022 and 2021, respectively. The Company did no t capitalize any stock compensation expense during the years ended December 31, 2022, and 2021. The stock-based compensation expense by type is as follows: Years Ended December 31, 2022 2021 Service-based awards $ 1,267 $ 1,405 Director awards 313 373 Performance-based awards (long-term incentive plan) 968 576 Performance-based awards (short-term incentive plan) 1,160 300 Employee stock purchase plan 280 267 Total $ 3,988 $ 2,921 The stock-based compensation is reflected in the consolidated statements of income as follows: Years Ended December 31, 2022 2021 Cost of revenues $ 213 $ 268 Research and development 632 543 Sales and marketing 845 658 General and administrative 2,298 1,452 Total $ 3,988 $ 2,921 The following table presents a summary of the remaining unrecognized share-based compensation expense related to outstanding share-based awards as of December 31, 2022: Award Type Remaining Unrecognized Compensation Expense Weighted Average Life (Years) Service-based awards $ 1,389 1.3 Performance-based awards $ 1,523 1.5 Service-Based Awards Restricted Stock The Company grants service-based restricted shares as employee incentives under the 2019 Stock Plan. When service-based restricted stock is granted to employees, the Company records deferred stock compensation within additional paid-in capital, representing the fair value of the restricted stock on the grant date. The Company records stock compensation expense on a straight-line basis over the vesting period of the applicable service-based restricted shares. During the years ended December 31, 2022 and 2021, the Company awarded executives and key-managers long-term incentives comprised one-third of service-based restricted stock and two-thirds of performance-based restricted stock. The Company awarded service-based restricted stock to all other participating employees. The service-based restricted shares vest in three substantially equal annual increments. The following table summarizes service-based restricted stock activity: Year Ended December 31, 2022 2021 Unvested Restricted Stock Awards Shares Weighted Shares Weighted Beginning of year 326,336 $ 7.76 432,422 $ 6.91 Shares awarded 233,744 4.66 170,158 8.04 Shares vested ( 179,317 ) 7.26 ( 272,274 ) 6.58 Shares cancelled ( 26,726 ) 5.76 ( 3,970 ) 7.84 End of year 354,037 $ 6.12 326,336 $ 7.76 The intrinsic values of service-based restricted shares that vested were $ 0.9 million and $ 2.2 million during the years ended December 31, 2022, and 2021, 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 summarizes the service-based restricted stock unit activity: Year Ended December 31, 2022 2021 Unvested Restricted Stock Units Shares Weighted Shares Weighted Beginning of year 21,437 $ 7.23 9,083 $ 7.02 Units awarded 26,667 4.40 17,800 7.11 Units vested ( 4,501 ) 7.33 ( 5,446 ) 6.47 Units cancelled ( 8,350 ) 5.72 0 0 End of year 35,253 $ 5.42 21,437 $ 7.23 The intrinsic values of service-based restricted stock units that vested were $ 21 and $ 42 , during the years ended December 31, 2022, and 2021, respectively. Stock Options The Company may grant stock options to purchase common stock to employees, but generally issues stock options only to new employees. The Company issues stock options with exercise prices no less than the fair value of the Company’s stock on the grant date. Employee options are subject to installment vesting and although the vesting may vary from year to year, it is typically over a period of three years . 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 Company grants stock options with a ten-year life. The following table summarizes the stock option activity: Year Ended December 31, 2022 2021 Options Weighted Options Weighted Beginning of Year 4,000 $ 6.02 16,250 $ 6.54 Options exercised 0 0 ( 6,000 ) 5.48 Options cancelled/expired 0 0 ( 6,250 ) 7.89 End of Year 4,000 $ 6.02 4,000 $ 6.02 Exercisable 4,000 $ 6.02 3,916 $ 6.00 The Company did no t grant any stock options during 2022 or 2021. During the year ended December 31, 2022, no stock options were exercised. During the year ended December 31, 2021, the Company received proceeds of $ 8 and issued 1,420 shares for the exercise of 6,000 options. The intrinsic value of the options exercised was $ 53 . The following table summarizes information about stock options outstanding under all stock option plans at December 31, 2022: Options Outstanding Options Exercisable Range of Number Weighted Intrinsic Value Weighted- Number Weighted Intrinsic Value Weighted $ 5.06 - $ 6.98 4,000 1.42 $ 0 $ 6.02 4,000 1.42 $ 0 $ 6.02 The intrinsic value is based on the share price of $ 4.30 at December 31, 2022. For the outstanding stock options, the Company used the Black-Scholes option valuation model for estimating the fair value. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. Option valuation models require the input of highly subjective assumptions including the expected stock price volatility and expected option life as well a risk-free rate and the dividend yield. 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. 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 Company calculated the volatility based on a five-year historical period of the Company’s stock price. The expected life used for options granted was based on historical data of employee exercise performance. The Company records expense based on the grading vesting method. Performance-Based Awards Short-Term Incentive Plan Incentive compensation earned by executives and key managers under the Company’s 2022 Short-Term Incentive Plan (“STIP”) will be settled 50 % in cash and 50 % in shares of the Company’s stock. Executives and key managers earned shares valued at $ 1.2 million for the year ended December 31, 2022, based on achievement of revenue and Adjusted EBITDA. The shares earned under the 2022 STIP will be issued to participants during the first quarter 2023. For the year ended December 31, 2021, the Company’s board of directors approved bonuses of $ 0.3 million payable in the Company’s stock to executive and key managers. The shares related to the 2021 bonus were issued to executives and key managers during the first quarter 2022. Long-Term Incentive Plan The Company grants performance-based awards to executives and key managers under its Long-Term Incentive Plan (“LTIP”) 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: Years Ended December 31, 2022 2021 Unvested Performance Awards - at Target Awards Weighted Awards Weighted Beginning of Year 333,153 $ 8.39 316,726 $ 6.84 Awards granted 269,618 4.84 187,864 8.15 Awards cancelled ( 81,567 ) 6.57 ( 171,437 ) 5.27 End of Year 521,204 $ 6.84 333,153 $ 8.39 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 21, 2024 . At target, the total fair market value of the award was $ 1.3 million based on a weighted average share price of $ 4.84 . 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 will award 53,358 shares as a result of achieving 39 % of the 2020 LTIP plan. The Company records stock compensation expense over the performance periods based on the Company’s estimate of the aggregate number of shares that will be earned under the incentive plans. The following table summarizes the active performance-based long-term incentive plans at December 31, 2022: Number of Shares Share Price That Could Be Earned: LTIP award on Grant Date Target Maximum Performance Period 2020 LTIP $ 8.70 145,289 254,256 January 1, 2020 through December 31, 2022 2021 LTIP $ 8.25 153,697 268,970 January 1, 2021 through December 31, 2023 2022 LTIP $ 4.84 231,618 405,332 January 1, 2022 through December 31, 2024 530,604 928,558 Employee Stock Purchase Plan The following table summarizes the ESPP activity: Years Ended December 31, 2022 2021 Shares Weighted Shares Weighted Outstanding, beginning of year 0 $ 0.00 0 $ 0.00 Granted 201,507 1.38 164,258 1.62 Vested ( 201,507 ) 1.38 ( 164,258 ) 1.62 Outstanding, end of year 0 $ 0.00 0 $ 0.00 Based on the 15 % discount and the fair value of the option feature of this plan, the ESPP is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company received proceeds of $ 0.8 million from the ESPP during each of the years ended December 31, 2022 and 2021. The Company calculated the fair value of each employee stock purchase grant under the ESPP 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 remaining term that approximates the expected life of the options granted. The Company calculated the volatility based on a five-year historical period of the Company’s stock price. The expected life used was based on the offering period. Board of Director 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 of $ 55 paid in service-based restricted shares which vest in equal annual increments over three years . In May 2022, the remaining 11,534 shares vested with a fair value of $ 47 . 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. In May 2021, the Company issued 61,186 shares of the Company’s stock to directors for their annual retainer and committee services, of which 49,652 with a fair value of $ 0.3 million vested immediately upon issuance, with the remainder vesting one year after issuance. The following table summarizes the director awards activity: Years Ended December 31, 2022 2021 Shares Weighted Shares Weighted Outstanding, beginning of year 11,534 $ 6.57 2,416 $ 6.90 Granted 124,801 4.02 61,186 6.57 Vested ( 11,534 ) 6.57 ( 52,068 ) ( 6.65 ) Cancelled ( 4,105 ) 4.02 0 0.00 Outstanding, end of year 120,696 $ 4.02 11,534 $ 6.57 Employee Withholding Taxes on Stock Awards For ease in administering the issuance of stock awards, the Company holds back shares of vested restricted stock awards and short-term incentive plan stock awards, if paid in the Company’s stock, for the value of the statutory withholding taxes. For each individual receiving a stock award, the Company redeems the shares it computes as the value for the withholding tax and remits this amount to the appropriate tax authority. For withholding taxes related to stock awards, the Company paid $ 0.4 million and $0 .8 million during the years ended December 31, 2022 and December 31, 2021, respectively. Share Repurchases On November 4, 2020, the Board of Directors approved a share repurchase program, pursuant to which the Company was authorized to repurchase $ 5.0 million of its common stock through the end of 2021 (“2020 Repurchase Plan”). The 2020 Repurchase Plan became effective November 10, 2020 and was completed in September 2021. The Company spent $ 1.8 million to repurchase 288,573 shares at an average price of $ 6.30 during the three months ended December 31, 2020 and spent $ 3.2 million during the nine months ended September 30, 2021 to repurchase 495,144 shares at an average price of $ 6.45 . The Company retired all repurchased shares. The Company did no t repurchase shares of common stock during the year ended December 31, 2022. |
Product Line, Customer and Geog
Product Line, Customer and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Product Line, Customer and Geographic Information | 11. Product Line, Customer and Geographic Information Product Line Information: The following tables are the product line revenues and gross profits for the years ended December 31, 2022, and 2021: Year Ended December 31, 2022 Antennas and Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 69,662 $ 30,565 $ ( 799 ) $ 99,428 Gross Profit $ 23,293 $ 22,660 $ ( 220 ) $ 45,733 Gross Profit % 33.4 % 74.1 % NA 46.0 % Year Ended December 31, 2021 Antennas and Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 63,025 $ 25,704 $ ( 922 ) $ 87,807 Gross Profit $ 21,031 $ 19,592 $ ( 145 ) $ 40,478 Gross Profit % 33.4 % 76.2 % NA 46.1 % Customer Concentration: One customer accounted for 15% and 10% of revenues during the years ended December 31, 2022, and 2021, respectively. Years Ended December 31, Revenues 2022 2021 Customer C 15 % 10 % The following table represents the three customers that accounted for 10% or more of total trade accounts receivable on December 31, 2022. As of December 31, 2021, no customer accounted for more than 10% of accounts receivables. As of December 31, Trade Accounts Receivable 2022 2021 Customer A 12 % 5 % Customer C 12 % 9 % Customer D 11 % 6 % Geographic Information: The Company’s revenue to customers by geographic location, as a percent of total revenues, is as follows: Years Ended December 31, Region 2022 2021 Europe, Middle East, & Africa 21 % 23 % Asia Pacific 6 % 8 % Other Americas 3 % 4 % Total Foreign sales 30 % 35 % Total Domestic sales 70 % 65 % 100 % 100 % The long-lived assets by geographic region are as follows: December 31, 2022 2021 United States $ 15,204 $ 17,070 Sweden 5,008 4,897 China 41 333 $ 20,253 $ 22,300 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | 12. Benefit Plans The Company’s 401(k) plan covers all of the U.S. employees beginning the first 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 100 % of the employee’s elective deferrals up to 4 % of their compensation. The Company may make discretionary contributions to the 401(k) plan but there were no discretionary contributions during the years ended December 31, 2022 or 2021. The Company also contributes to various defined contribution retirement plans for foreign employees. Contributions for foreign employees in China decreased for the year ended December 31, 2022 due to the reduction in headcount related to restructuring for Tianjin manufacturing and the Beijing office. Contributions for foreign employees in Sweden increased for the year ended December 31, 2022 because contributions for Smarteq employees commenced in May 2021. The Company’s contributions to retirement plans were as follows: Years ended December 31, 2022 2021 PCTEL, Inc. 401(k) plan - US employees $ 772 $ 725 Defined contribution plans - China employees 75 303 Defined contribution plans - Sweden employees 132 101 Defined contribution plans - Other foreign employees 31 27 Total $ 1,010 $ 1,156 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 13. Accumulated Other Comprehensive Income Accumulated other comprehensive loss of $ 1.5 million at December 31, 2022 and accumulated other comprehensive income of $ 360 at December 31, 2021, consists of foreign currency translation adjustments. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 14. Revenue from Contracts with Customers Under Topic 606, a contract with a customer is an agreement which both parties have approved, that creates enforceable rights and obligations, has commercial substance, and has identified payment terms, and for which collectibility 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 purchase 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 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. For the test & measurement product line, performance obligations for the sale of products and software licenses are satisfied at a point in time and the performance obligations for post contract support (“PCS”), extended warranties, and data storage are satisfied over time. If there is no standalone selling price for the performance obligations satisfied over time, the Company uses a market assessment approach for the standalone selling price. This standalone selling price is consistent for all customers. Antenna product line sales have either contract pricing or negotiated prices on individual purchase orders. Variable consideration related to specific customers or orders that impacts the stand-alone selling price includes right of return, rebate incentives, or quantity-based pricing. The Company allows its major distributors and certain other customers to return unused antennas 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 $ 0.2 million at December 31, 2022 and December 31, 2021, and is included within accrued liabilities on the accompanying consolidated balance sheets. Additionally, the Company recorded an asset based on historical experience for the amount of product expected to be returned to inventory as a result of the return, which is recorded in inventories in the consolidated balance sheets. The product return asset was $ 0.1 million at December 31, 2022 and December 31, 2021. There were no contract assets at December 31, 2022 or December 31, 2021. The Company records contract liabilities for deferred revenue and customer prepayments. Contract liabilities are recorded in accrued liabilities and long-term liabilities in the consolidated balance sheets. The contract liability was $ 0.9 million at December 31, 2022 and December 31, 2021. The Company recognized revenue of $ 1.5 million and $ 1.1 million during the years ended December 31, 2022, and December 31, 2021 respectively, related to contract liabilities at the beginning of the period. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. 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 consolidated financial statements. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | PCTEL, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Charged to Balance at Beginning Costs and Additions End of of Year Expenses (Deductions) Year Year Ended December 31, 2021: Allowance for doubtful accounts $ 113 0 ( 49 ) $ 64 Warranty reserves $ 285 ( 95 ) 67 $ 257 Deferred tax asset valuation allowance $ 12,938 0 2,320 $ 15,258 Year Ended December 31, 2022: Allowance for doubtful accounts $ 64 0 68 $ 132 Warranty reserves $ 257 ( 143 ) 203 $ 317 Deferred tax asset valuation allowance $ 15,258 ( 782 ) ( 201 ) $ 14,275 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations PCTEL, Inc. (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. We solve complex wireless challenges to help organizations stay connected, transform, and grow and we have expertise in RF, digital and mechanical engineering. We have two businesses (antennas & Industrial IoT devices and test & measurement products). Our principal executive offices are located at 471 Brighton Drive, Bloomingdale, Illinois 60108. Our telephone number at that address is (630) 372-6800 and our website is www.pctel.com . Additional information about our Company can be obtained on our website; however, the information within, or that can be accessed through, our website, is not part of this report. |
Basis of Consolidation | Basis of Consolidation These consolidated financial statements include the accounts of the Company and its subsidiaries. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Actual results could differ from those estimates. |
Foreign Operations | Foreign Operations The Company is exposed to foreign currency fluctuations due to its foreign operations and because products are sold internationally. The functional currency for the Company’s foreign operations is predominantly the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using the year-end exchange rate for assets and liabilities and average monthly rates for revenue and expense accounts. Adjustments resulting from translation are included in accumulated other comprehensive loss, a separate component of stockholders’ equity. Gains and losses resulting from other transactions originally in foreign currencies and then translated into U.S. dollars are included in the consolidated statements of income. For the year ended December 31, 2022, approximately 11 % of revenue and 12 % of expenses were transacted in foreign currencies as compared to 9 % and 21 % for the year ended December 31, 2021. For the year ended December 31, 2022, foreign currency transactions resulted in foreign exchange gains of $ 0.2 million and for the year ended December 31, 2021, foreign currency transactions resulted in foreign exchange losses of $ 0.1 million. Foreign exchange gains and losses are recorded in other income in the consolidated statement of income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows accounting pronouncements 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 and other investments are financial assets with carrying values that approximate fair value due to the short-term nature of these assets. Accounts payable is a financial liability with a carrying value that approximates fair value due to the short-term nature of these liabilities. |
Cash and Cash Equivalents and Investments | Cash and Cash Equivalents and Investments The Company’s cash and cash equivalents and investments consist of the following: December 31, December 31, 2022 2021 Cash $ 5,780 $ 6,789 Cash equivalents 1,956 1,403 Short-term investments 22,254 22,562 $ 29,990 $ 30,754 |
Cash and Cash Equivalents | Cash and Cash Equivalents On December 31, 2022 and 2021, cash and cash equivalents included bank balances and investments with original maturities less than 90 days. On December 31, 2022 and 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 under 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 cash in the Company’s U.S. banks is insured by the Federal Deposit Insurance Corporation up to the insurable limit of $ 250 . The Company's cash and cash equivalents in foreign bank accounts consist of the following: December 31, December 31, 2022 2021 China $ 2,672 $ 2,800 Sweden 1,868 1,004 France 0 105 $ 4,540 $ 3,909 The Company’s cash in these foreign bank accounts is not insured. As of December 31, 2022, the Company has no intentions 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 | Investments On December 31, 2022 and 2021, the Company’s short-term investments consisted of BBB or higher rated corporate bonds and certificates of deposit. All the investments on December 31, 2022 and 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 and the bonds and certificates of deposit classified as long-term investments have maturities greater than one year but less than two years . The Company’s bond investments are recorded at the purchase price and carried at amortized cost. Cash equivalents and Level 1 and Level 2 investments measured at fair value were as follows: December 31, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Certificates of deposit $ 0 $ 0 $ 0 $ - $ 0 $ 0 Money market funds 1,956 0 1,956 1,403 0 1,403 Total Cash Equivalents $ 1,956 $ 0 $ 1,956 $ 1,403 $ 0 $ 1,403 Short-Term Investments: Corporate bonds $ 0 $ 21,145 $ 21,145 $ 0 $ 19,659 $ 19,659 Certificates of deposit 1,109 0 1,109 2,903 0 2,903 Total Short-Term Investments $ 1,109 $ 21,145 $ 22,254 $ 2,903 $ 19,659 $ 22,562 Cash equivalents and Investments - book value $ 3,065 $ 21,145 $ 24,210 $ 4,306 $ 19,659 $ 23,965 Unrealized (losses) gains $ 0 $ ( 59 ) $ ( 59 ) $ 1 $ ( 2 ) $ ( 1 ) Cash equivalents and Investments - fair value $ 3,065 $ 21,086 $ 24,151 $ 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 1. For the Level 2 investments, the Company uses quoted prices of similar assets in active markets. There were no Level 3 investments on December 31, 2022 or 2021. The fair values in the table above reflect net unrealized losses of $ 59 and $ 1 on December 31, 2022 and December 31, 2021, respectively. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable are recorded at invoiced amount with standard net terms for most customers that range between 30 and 90 days. The Company extends credit to its customers based on an evaluation of the customer’s financial condition and collateral is generally not required. The Company records allowances 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: December 31, 2022 December 31, 2021 Credit loss provision $ 92 $ 26 Credit allowances 40 38 Total allowances $ 132 $ 64 The Company is exposed to credit losses primarily through the sale of products. The Company’s expected loss methodology for accounts receivable is developed using 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 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 balances with 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 $ 92 at December 31, 2022 and $ 26 at December 31, 2021. The following table summarizes the allowance for credit losses for the years ended December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Beginning Balance $ 26 $ 66 Current period reserve (benefit) for credit losses 66 ( 40 ) Ending Balance $ 92 $ 26 |
Inventories | 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 December 31, 2022 and 2021 were composed of raw materials, work-in-process, and finished goods. The Company had consigned inventory of $ 0.2 million and $ 0.4 million as of at December 31, 2022 and 2021, respectively. The Company records allowances to reduce the value of inventory to the lower of cost or market, including allowances for excess and obsolete inventory. Reserves for excess inventory are calculated based on the Company’s estimate of inventory more than normal and planned usage. Obsolete reserves are based on the Company’s identification of inventory where carrying value is above net realizable value. The allowance for inventory losses was $ 3.1 million and $ 4.1 million as of December 31, 2022 and 2021, respectively. Inventories consisted of the following: December 31, December 31, Raw materials $ 9,064 $ 6,171 Work in process 1,076 690 Finished goods 8,778 6,830 Inventories, net $ 18,918 $ 13,691 |
Prepaid and Other Current Assets | Prepaid and Other Current 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 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 sales and operating expenses in the consolidated statements of income. Maintenance and repairs are expensed as incurred. Property and equipment consisted of the following: December 31, December 31, Building $ 6,922 $ 6,892 Computers and office equipment 10,217 10,604 Manufacturing and test equipment 14,661 16,305 Furniture and fixtures 1,475 1,455 Leasehold improvements 1,965 3,021 Motor vehicles 20 20 Total property and equipment 35,260 38,297 Less: Accumulated depreciation and amortization ( 27,026 ) ( 28,118 ) Land 1,770 1,770 Property and equipment, net $ 10,004 $ 11,949 Depreciation and amortization expense was approximately $ 2.8 million and $ 3.0 million for the years ended December 31, 2022 and 2021, respectively. |
Liabilities | Liabilities Accrued liabilities consisted of the following: December 31, December 31, Payroll and other employee benefits $ 4,318 $ 2,266 Inventory receipts 3,720 4,302 Paid time off 1,001 1,284 Income and sales taxes 836 415 Operating leases 527 475 Deferred revenues 495 538 Professional fees and contractors 346 233 Warranties 317 257 Customer refunds for estimated returns 235 248 Employee stock purchase plan 232 253 Real estate taxes 158 156 Finance leases 51 62 Restructuring 0 368 Other 369 260 Total $ 12,605 $ 11,117 Long-term liabilities consisted of the following: December 31, December 31, Operating leases $ 3,327 $ 3,600 Deferred revenue 181 181 Finance leases 73 92 Other 43 126 Total $ 3,624 $ 3,999 |
Revenue Recognition | Revenue Recognition The Company sells antennas and Industrial IoT devices and test & measurement products. All 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.” The Company satisfies its performance obligations related to the sale of its products 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 customer 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 recognizes revenue for sales of its products when control transfers, which is predominantly upon shipment from its factory. For products shipped on consignment, the Company recognizes revenue upon delivery from the consignment location. The Company allows its major antenna product distributors to return product under specified terms and conditions and accrues for product returns. See Note 14 for additional information related to revenue policies. |
Research and Development Costs | Research and Development Costs The Company expenses research and development costs as incurred. To date, the Company has expensed all software development costs related to research and development because the costs incurred subsequent to the products reaching technological feasibility were not significant. |
Advertising Costs | Advertising Costs Advertising costs are expensed in the period in which they are incurred. Advertising expense was $ 0.2 million and $ 0.3 million during the year ended December 31, 2022 and December 31, 2021, respectively. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and deferred tax assets are recognized for net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are provided against deferred tax assets, which are not likely to be realized. On a regular basis, management evaluates the recoverability of deferred tax assets and the need for a valuation allowance. The Company recognizes the effect of income tax positions only if those positions are more likely than not to being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 % likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Deferred tax assets arise when the Company recognizes charges or expenses in the financial statements that will not be allowed as income tax deductions until future periods. The deferred tax assets also include unused tax net operating losses and tax credits that the Company is allowed to carryforward to future years. Accounting rules permit the Company to carry the deferred tax assets on the balance sheet at full value as long as it is more likely than not the deductions, losses, or credits will be used in the future. A valuation allowance must be recorded against a deferred tax asset if this test cannot be met. The Company had a full valuation allowance for U.S. and China of $ 13.4 million and a partial valuation allowance for Sweden of $ 0.9 million at December 31, 2022, and a full valuation allowance for all Company tax jurisdictions of $ 15.3 million at December 31, 2021. See Note 6 for more information on the deferred tax valuation allowance. 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. At December 31, 2021 the Company had deferred payroll taxes of $ 0.2 million. The Company recorded a deferred tax asset for the payroll tax liability that was not deductible for income tax purposes. In December 2022, the remaining deferred payroll taxes were remitted to the taxing authorities. |
Sales and Value Added Taxes | Sales and Value Added Taxes Taxes collected from customers and remitted to governmental authorities are presented on a net basis in cost of sales in the accompanying consolidated statements of income. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included on a gross basis in cost of sales in the accompanying consolidated statements of income. |
Goodwill | Goodwill The Company performs an annual impairment test of goodwill as of the end of the first month of the fourth fiscal quarter (October 31st), 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 tests, 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. The process of evaluating the potential impairment of goodwill is subjective because it requires the use of estimates and assumptions in determining a reporting unit’s fair value. The Company calculates the fair value of each reporting unit by using the income approach based on the present value of future discounted cash flows. The discounted cash flow method requires the Company to use estimates and judgments about the future cash flows of the reporting units. Although the Company bases cash flow forecasts on assumptions that are consistent with plans and estimates the Company uses to manage the underlying reporting units, there is significant judgment in determining the cash flows attributable to these reporting units, including markets and market share, sales volumes and mix, research and development expenses, tax rates, capital spending, discount rate and working capital changes. Cash flow forecasts are based on reporting unit operating plans for the early years and business projections in later years. The Company believes the accounting estimate related to the valuation of goodwill is a critical accounting estimate because it requires the Company to make assumptions that are highly uncertain about the future cash flows of the reporting units. Changes in these estimates can have a material impact on the Company’s financial statements. The Company performed its annual goodwill test at October 31, 2022 and at October 31, 2021 for the goodwill of $ 5.8 million and $ 6.3 million, respectively. The decrease in goodwill in 2022 was due to foreign currency fluctuations with the Swedish krona. The Company performed both a qualitative analysis of goodwill and a quantitative analysis. There were no triggering events during the year, and the fair value of the reporting unit was higher than its carrying value in the quantitative analysis. Based on the Company’s analysis, there was no impairment of goodwill as of the testing dates because the fair value of the reporting unit exceeded its carrying value by a significant margin. |
Long-Lived and Definite-Lived Intangible assets | Long-Lived and Definite-Lived Intangible assets The Company reviews definite-lived intangible assets, investments, and other long-lived assets for impairment when events or changes in circumstances indicate that their carrying values may not be fully recoverable. This analysis differs from the Company’s goodwill analysis in that definite-lived intangible asset impairment is only deemed to have occurred if the sum of the forecasted undiscounted future cash flows related to the assets being evaluated is less than the carrying value of the assets. The estimate of long-term undiscounted cash flows includes long-term forecasts of revenue growth, gross margins, and operating expenses. All these items require significant judgment and assumptions. There were no impairments related to long-lived assets used for operations during the years ended December 31, 2022 and 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-14). 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 adoption of this standard did not 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 was effective upon issuance and generally could be applied through December 31, 2022 . The adoption of this standard did not 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 adoption of this standard did not have an impact on our financial statements or the related disclosures. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 831): Disclosures by Business Entities about Government Assistance. This Update, which aims to increase transparency of government assistance, require annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. Under this ASU, an entity is required to disclose (1) the types of assistance, (2) an entity’s accounting for assistance, and (3) the effect of the assistance on entity’s financial statements. This Update is effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early adoption was permitted. The Company did not utilize any government assistance programs in 2022 and, as such, the adoption of this ASU did not have an impact on either the 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. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash and Cash Equivalents and Investments | The Company’s cash and cash equivalents and investments consist of the following: December 31, December 31, 2022 2021 Cash $ 5,780 $ 6,789 Cash equivalents 1,956 1,403 Short-term investments 22,254 22,562 $ 29,990 $ 30,754 |
Summary of Cash and Cash Equivalents in Foreign Bank Accounts | The Company's cash and cash equivalents in foreign bank accounts consist of the following: December 31, December 31, 2022 2021 China $ 2,672 $ 2,800 Sweden 1,868 1,004 France 0 105 $ 4,540 $ 3,909 |
Cash Equivalents and Investments Measured at Fair Value | Cash equivalents and Level 1 and Level 2 investments measured at fair value were as follows: December 31, 2022 December 31, 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Certificates of deposit $ 0 $ 0 $ 0 $ - $ 0 $ 0 Money market funds 1,956 0 1,956 1,403 0 1,403 Total Cash Equivalents $ 1,956 $ 0 $ 1,956 $ 1,403 $ 0 $ 1,403 Short-Term Investments: Corporate bonds $ 0 $ 21,145 $ 21,145 $ 0 $ 19,659 $ 19,659 Certificates of deposit 1,109 0 1,109 2,903 0 2,903 Total Short-Term Investments $ 1,109 $ 21,145 $ 22,254 $ 2,903 $ 19,659 $ 22,562 Cash equivalents and Investments - book value $ 3,065 $ 21,145 $ 24,210 $ 4,306 $ 19,659 $ 23,965 Unrealized (losses) gains $ 0 $ ( 59 ) $ ( 59 ) $ 1 $ ( 2 ) $ ( 1 ) Cash equivalents and Investments - fair value $ 3,065 $ 21,086 $ 24,151 $ 4,307 $ 19,657 $ 23,964 |
Summary of Allowances for Accounts Receivable | The allowances for accounts receivable consisted of the following: December 31, 2022 December 31, 2021 Credit loss provision $ 92 $ 26 Credit allowances 40 38 Total allowances $ 132 $ 64 |
Summary of Allowance for Credit Losses | The following table summarizes the allowance for credit losses for the years ended December 31, 2022 and December 31, 2021: December 31, 2022 December 31, 2021 Beginning Balance $ 26 $ 66 Current period reserve (benefit) for credit losses 66 ( 40 ) Ending Balance $ 92 $ 26 |
Summary of Inventories | Inventories consisted of the following: December 31, December 31, Raw materials $ 9,064 $ 6,171 Work in process 1,076 690 Finished goods 8,778 6,830 Inventories, net $ 18,918 $ 13,691 |
Summary of Property and Equipment | Property and equipment consisted of the following: December 31, December 31, Building $ 6,922 $ 6,892 Computers and office equipment 10,217 10,604 Manufacturing and test equipment 14,661 16,305 Furniture and fixtures 1,475 1,455 Leasehold improvements 1,965 3,021 Motor vehicles 20 20 Total property and equipment 35,260 38,297 Less: Accumulated depreciation and amortization ( 27,026 ) ( 28,118 ) Land 1,770 1,770 Property and equipment, net $ 10,004 $ 11,949 |
Summary of Accrued Liabilities | Accrued liabilities consisted of the following: December 31, December 31, Payroll and other employee benefits $ 4,318 $ 2,266 Inventory receipts 3,720 4,302 Paid time off 1,001 1,284 Income and sales taxes 836 415 Operating leases 527 475 Deferred revenues 495 538 Professional fees and contractors 346 233 Warranties 317 257 Customer refunds for estimated returns 235 248 Employee stock purchase plan 232 253 Real estate taxes 158 156 Finance leases 51 62 Restructuring 0 368 Other 369 260 Total $ 12,605 $ 11,117 |
Summary of Long-term Liabilities | Long-term liabilities consisted of the following: December 31, December 31, Operating leases $ 3,327 $ 3,600 Deferred revenue 181 181 Finance leases 73 92 Other 43 126 Total $ 3,624 $ 3,999 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share: Years Ended December 31, 2022 2021 Basic Income Per Share computation: Numerator: Net income $ 2,869 $ 153 Denominator: Common shares outstanding 18,150,289 18,017,006 Net Income per common share - basic Net income $ 0.16 $ 0.01 Diluted Income Per Share computation: Denominator: Common shares outstanding 18,150,289 18,017,006 Restricted shares subject to vesting 139,280 104,798 Performance related awards 239,836 0 Common stock option grants 32 0 Total shares 18,529,437 18,121,804 Income per common share - diluted Net income $ 0.15 $ 0.01 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 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: Year Ended December 31, 2022 2021 Net Revenue - pro forma combined $ 99,428 $ 90,514 Net Income - pro forma combined 2,869 203 Weighted Average Shares: Basic 18,150 18,017 Diluted 18,529 18,122 Net Income per Share: Basic $ 0.16 $ 0.01 Diluted $ 0.15 $ 0.01 The following adjustments were included in the unaudited pro forma combined net revenues: Year Ended December 31, 2022 2021 Net Revenue $ 99,428 $ 87,807 Add: Net Revenue - acquired business 0 2,707 Net Revenue - pro forma combined $ 99,428 $ 90,514 The following adjustments were included in the unaudited pro forma combined net income: Year Ended December 31, 2022 2021 Net Income $ 2,869 $ 153 Add: Results of operations of acquired business 0 179 Less: pro forma adjustments Amortization of intangibles 0 ( 120 ) Interest income 0 ( 9 ) Net Income - pro forma combined $ 2,869 $ 203 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Amount of Goodwill | The change in the carrying amount of goodwill during the year ended December 31, 2022 is as follows: Amount Balance at December 31, 2021 $ 6,334 Foreign currency translation ( 399 ) Balance at December 31, 2022 $ 5,935 |
Summary of Amortization Expense | The summary of amortization expense in the consolidated statements of income is as follows: Years Ended December 31, 2022 2021 Cost of revenues $ 73 $ 57 Operating expenses 263 210 Total $ 336 $ 267 |
Summary of Other Intangible Assets | The summary of other intangible assets, net is as follows: December 31, 2022 December 31, 2021 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Customer contracts and relationships $ 17,512 $ 17,091 $ 421 $ 17,609 $ 16,978 $ 631 Patents and technology 9,995 9,761 234 10,049 9,698 351 Trademarks and trade names 1,484 1,143 341 1,563 1,051 512 Other 96 47 49 110 25 85 $ 29,087 $ 28,042 $ 1,045 $ 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 .5 to 5 years 3.6 |
Schedule of Future Amortization Expenses | The future amortization expenses are as follows: Fiscal Year Amount 2023 $ 325 2024 312 2025 306 2026 102 2027 0 Total $ 1,045 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Accrual Activity | The following table summarizes the Company’s restructuring accrual activity for the years ended December 31, 2022, and 2021: Severance Lease Termination Total Balance at January 1, 2021 $ 0 $ 15 $ 15 Restructuring expense 900 0 900 Payments made ( 532 ) ( 15 ) ( 547 ) Balance at December 31, 2021 $ 368 $ 0 $ 368 Restructuring expense 1,309 0 1,309 Payments made ( 1,677 ) 0 ( 1,677 ) Balance at December 31, 2022 $ 0 $ 0 $ 0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Expense for Income Taxes | The domestic and foreign components of the income (loss) before expense for income taxes were as follows: Years Ended December 31, 2022 2021 Domestic $ 2,375 $ 1,359 Foreign 120 ( 1,167 ) $ 2,495 $ 192 |
Summary of Expense for Income Taxes | The expense for income taxes consisted of the following: Years Ended December 31, 2022 2021 Current: Federal $ 41 $ 0 State 440 33 Foreign ( 73 ) 6 408 39 Deferred: Federal 0 0 State 0 0 Foreign ( 782 ) 0 ( 782 ) 0 Total $ ( 374 ) $ 39 |
Reconciliation of Expense for Income Taxes | A reconciliation of the expense for income taxes at the federal statutory rate compared to the expense at the effective tax rate is as follows: Years Ended December 31, 2022 2021 Statutory federal income tax rate 21 % 21 % State income tax, net of federal benefit 6 % 56 % Tax effect of permanent differences 2 % 56 % Change in valuation allowance - 25 % 16 % Effective state rate change to deferred tax assets - 2 % 8 % Stock-based compensation windfalls 5 % - 53 % Foreign income taxed at different rates - 14 % 53 % Research and development credits - 18 % - 134 % Return to provision adjustments 10 % - 3 % - 15 % 20 % |
Summary of Net Deferred Tax Accounts | The net deferred tax accounts consist of the following: December 31, 2022 2021 Deferred Tax Assets: Net operating loss carryforwards $ 4,781 $ 6,874 Federal, foreign, and state credits 3,049 2,666 Research and experimental expenditures 1,783 0 Amortization 1,768 2,346 Inventory reserves 926 1,076 Deferred gain 868 863 Stock compensation 779 498 Deferred rent 435 476 Depreciation 242 0 Accrued vacation 222 276 Other 520 417 Gross deferred tax assets 15,373 15,492 Valuation allowance ( 14,275 ) ( 15,258 ) Net deferred tax asset 1,098 234 Deferred Tax Liabilities: Amortization ( 215 ) 0 Depreciation ( 1 ) ( 234 ) Net Deferred Tax Assets $ 882 $ 0 The deferred tax assets net of deferred tax liabilities consisted of the following balances by tax jurisdiction: December 31, 2022 2021 United States $ 11,981 $ 11,941 China 1,410 1,169 Sweden 1,766 2,148 Net Deferred Tax Assets before valuation allowance $ 15,157 $ 15,258 Valuation Allowance ( 14,275 ) ( 15,258 ) Net Deferred Tax Assets $ 882 $ 0 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2022 2021 Beginning of period $ 848 $ 808 Addition related to tax positions in current year 67 40 Addition related to tax positions in prior years 67 0 End of period $ 982 $ 848 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Warranty Activity | Year Ended December 31, 2022 2021 Beginning balance $ 257 $ 285 Provisions for warranties 203 65 Consumption of reserves ( 143 ) ( 93 ) Ending balance $ 317 $ 257 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Cost | The Company's lease cost for the years ended December 31, 2022 and 2021 included the following components: Year Ended December 31, 2022 2021 Operating lease costs $ 525 $ 453 Short-term lease costs 69 167 Variable lease costs 10 6 Amortization of finance lease assets 60 72 Interest on finance lease liabilities 5 7 Total lease cost $ 669 $ 705 |
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 December 31, 2022: Year Operating Leases Finance Leases 2023 $ 671 $ 56 2024 675 45 2025 585 26 2026 522 5 2027 505 0 Thereafter 1,676 0 Total minimum payments required 4,634 132 Less: amount representing interest 780 8 Present value of net minimum lease payments 3,854 124 Less: current maturities of lease obligations ( 527 ) ( 51 ) Long-term lease obligations $ 3,327 $ 73 |
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 December 31, 2022 and 2021: Year Ended December 31, 2022 2021 Weighted-average remaining lease term - finance leases 2.6 years 3.0 years Weighted-average remaining lease term - operating leases 7.4 years 8.4 years Weighted-average discount rate - finance leases 4 % 4 % Weighted-average discount rate - operating leases 5 % 5 % |
Schedule of Classification of Right of Use Assets and Lease liabilities | The table below presents supplemental balance sheet information related to leases during the year ended December 31, 2022 and 2021: Year Ended December 31, Leases Consolidated Balance Sheet Classification 2022 2021 Assets: Operating right-of-use assets Other noncurrent assets $ 2,241 $ 2,289 Finance right-of-use assets Other noncurrent assets 120 148 Total lease assets $ 2,361 $ 2,437 Liabilities: Current Operating lease liabilities Accrued liabilities $ 527 $ 475 Finance lease liabilities Accrued liabilities 51 62 Noncurrent Operating lease liabilities Long-term liabilities 3,327 3,600 Finance lease liabilities Long-term liabilities 73 92 Total lease liabilities $ 3,978 $ 4,229 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Activity Related to Common Shares Outstanding | The activity related to common shares outstanding is as follows: Year Ended December 31, 2022 2021 Beginning of year 18,238,030 18,429,350 Restricted stock awards, net of cancellations 211,519 171,634 Issuance of common stock from purchase of Employee Stock Purchase Plan shares 201,507 164,258 Director share awards 120,696 61,186 Equity awards under Short-Term Incentive Plan 60,590 0 Issuance of common stock on exercise of stock options 0 2,420 Common stock Repurchases 0 ( 495,144 ) Cancellation of stock for withholding tax for vested shares ( 83,813 ) ( 95,674 ) End of Year 18,748,529 18,238,030 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Reserved Shares of Common Stock for Future Issuance | A summary of the reserved shares of common stock for future issuance are as follows: December 31, Stock Plan 2022 2021 PCTEL, Inc. 2019 Stock Incentive Plan 1,463,639 1,870,260 PCTEL, Inc. 2015 Stock Incentive Plan 299,979 299,979 PCTEL, Inc. 2019 Employee Stock Purchase Plan 1,276,529 1,478,036 Total shares reserved 3,040,147 3,648,275 |
Summary of Stock-Based Compensation Expense by Type | The stock-based compensation expense by type is as follows: Years Ended December 31, 2022 2021 Service-based awards $ 1,267 $ 1,405 Director awards 313 373 Performance-based awards (long-term incentive plan) 968 576 Performance-based awards (short-term incentive plan) 1,160 300 Employee stock purchase plan 280 267 Total $ 3,988 $ 2,921 |
Stock-Based Compensation | The stock-based compensation is reflected in the consolidated statements of income as follows: Years Ended December 31, 2022 2021 Cost of revenues $ 213 $ 268 Research and development 632 543 Sales and marketing 845 658 General and administrative 2,298 1,452 Total $ 3,988 $ 2,921 The following table presents a summary of the remaining unrecognized share-based compensation expense related to outstanding share-based awards as of December 31, 2022: Award Type Remaining Unrecognized Compensation Expense Weighted Average Life (Years) Service-based awards $ 1,389 1.3 Performance-based awards $ 1,523 1.5 |
Summary of Service-based Restricted Stock Activity | The following table summarizes service-based restricted stock activity: Year Ended December 31, 2022 2021 Unvested Restricted Stock Awards Shares Weighted Shares Weighted Beginning of year 326,336 $ 7.76 432,422 $ 6.91 Shares awarded 233,744 4.66 170,158 8.04 Shares vested ( 179,317 ) 7.26 ( 272,274 ) 6.58 Shares cancelled ( 26,726 ) 5.76 ( 3,970 ) 7.84 End of year 354,037 $ 6.12 326,336 $ 7.76 The following summarizes the service-based restricted stock unit activity: Year Ended December 31, 2022 2021 Unvested Restricted Stock Units Shares Weighted Shares Weighted Beginning of year 21,437 $ 7.23 9,083 $ 7.02 Units awarded 26,667 4.40 17,800 7.11 Units vested ( 4,501 ) 7.33 ( 5,446 ) 6.47 Units cancelled ( 8,350 ) 5.72 0 0 End of year 35,253 $ 5.42 21,437 $ 7.23 |
Summary of Stock Option Activity | The following table summarizes the stock option activity: Year Ended December 31, 2022 2021 Options Weighted Options Weighted Beginning of Year 4,000 $ 6.02 16,250 $ 6.54 Options exercised 0 0 ( 6,000 ) 5.48 Options cancelled/expired 0 0 ( 6,250 ) 7.89 End of Year 4,000 $ 6.02 4,000 $ 6.02 Exercisable 4,000 $ 6.02 3,916 $ 6.00 |
Information about Stock Options Outstanding Under all Stock Plans | The following table summarizes information about stock options outstanding under all stock option plans at December 31, 2022: Options Outstanding Options Exercisable Range of Number Weighted Intrinsic Value Weighted- Number Weighted Intrinsic Value Weighted $ 5.06 - $ 6.98 4,000 1.42 $ 0 $ 6.02 4,000 1.42 $ 0 $ 6.02 |
Summary of Performance Share Activity | The following table summarizes the performance award activity: Years Ended December 31, 2022 2021 Unvested Performance Awards - at Target Awards Weighted Awards Weighted Beginning of Year 333,153 $ 8.39 316,726 $ 6.84 Awards granted 269,618 4.84 187,864 8.15 Awards cancelled ( 81,567 ) 6.57 ( 171,437 ) 5.27 End of Year 521,204 $ 6.84 333,153 $ 8.39 |
Summary of Active Performance-Based Long-Term Incentive Plans | The following table summarizes the active performance-based long-term incentive plans at December 31, 2022: Number of Shares Share Price That Could Be Earned: LTIP award on Grant Date Target Maximum Performance Period 2020 LTIP $ 8.70 145,289 254,256 January 1, 2020 through December 31, 2022 2021 LTIP $ 8.25 153,697 268,970 January 1, 2021 through December 31, 2023 2022 LTIP $ 4.84 231,618 405,332 January 1, 2022 through December 31, 2024 530,604 928,558 |
Summary of ESSP Activity | The following table summarizes the ESPP activity: Years Ended December 31, 2022 2021 Shares Weighted Shares Weighted Outstanding, beginning of year 0 $ 0.00 0 $ 0.00 Granted 201,507 1.38 164,258 1.62 Vested ( 201,507 ) 1.38 ( 164,258 ) 1.62 Outstanding, end of year 0 $ 0.00 0 $ 0.00 |
Calculation of Fair Value of Each Employee Stock Purchase Grant Under ESPP Using Black-Scholes Option-Pricing Model | The Company calculated the fair value of each employee stock purchase grant under the ESPP 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: Years Ended December 31, 2022 2021 Shares Weighted Shares Weighted Outstanding, beginning of year 11,534 $ 6.57 2,416 $ 6.90 Granted 124,801 4.02 61,186 6.57 Vested ( 11,534 ) 6.57 ( 52,068 ) ( 6.65 ) Cancelled ( 4,105 ) 4.02 0 0.00 Outstanding, end of year 120,696 $ 4.02 11,534 $ 6.57 |
Product Line, Customer and Ge_2
Product Line, Customer and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2022, and 2021: Year Ended December 31, 2022 Antennas and Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 69,662 $ 30,565 $ ( 799 ) $ 99,428 Gross Profit $ 23,293 $ 22,660 $ ( 220 ) $ 45,733 Gross Profit % 33.4 % 74.1 % NA 46.0 % Year Ended December 31, 2021 Antennas and Industrial IoT Devices Test & Measurement Products Corporate Total Revenues $ 63,025 $ 25,704 $ ( 922 ) $ 87,807 Gross Profit $ 21,031 $ 19,592 $ ( 145 ) $ 40,478 Gross Profit % 33.4 % 76.2 % NA 46.1 % |
Customers Accounted Revenues by Geographic Location | Geographic Information: The Company’s revenue to customers by geographic location, as a percent of total revenues, is as follows: Years Ended December 31, Region 2022 2021 Europe, Middle East, & Africa 21 % 23 % Asia Pacific 6 % 8 % Other Americas 3 % 4 % Total Foreign sales 30 % 35 % Total Domestic sales 70 % 65 % 100 % 100 % |
Long-lived Assets by Geographic Region | The long-lived assets by geographic region are as follows: December 31, 2022 2021 United States $ 15,204 $ 17,070 Sweden 5,008 4,897 China 41 333 $ 20,253 $ 22,300 |
Revenue [Member] | |
Schedule of Revenues and Total Trade Accounts Receivable Represents Customers Accounted for 10% or More Percentage | One customer accounted for 15% and 10% of revenues during the years ended December 31, 2022, and 2021, respectively. Years Ended December 31, Revenues 2022 2021 Customer C 15 % 10 % |
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 three customers that accounted for 10% or more of total trade accounts receivable on December 31, 2022. As of December 31, 2021, no customer accounted for more than 10% of accounts receivables. As of December 31, Trade Accounts Receivable 2022 2021 Customer A 12 % 5 % Customer C 12 % 9 % Customer D 11 % 6 % |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Contributions to Retirement Plans | The Company’s contributions to retirement plans were as follows: Years ended December 31, 2022 2021 PCTEL, Inc. 401(k) plan - US employees $ 772 $ 725 Defined contribution plans - China employees 75 303 Defined contribution plans - Sweden employees 132 101 Defined contribution plans - Other foreign employees 31 27 Total $ 1,010 $ 1,156 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Nature Of Operations [Line Items] | ||||
Percentage of revenue transacted in foreign currency | 11% | 9% | ||
Percentage of expenses transacted in foreign currency | 12% | 21% | ||
Net foreign exchange gains (losses) resulting from foreign currency transactions included in other income | $ 200,000 | $ (100,000) | ||
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 | |||
Long-term investments, maturities, minimum | 1 year | |||
Long-term investments, maturities, maximum | 2 years | |||
Net unrealized losses | $ 59,000 | $ 1,000 | ||
Credit loss provision | 92,000 | 26,000 | ||
Allowance for credit losses | 92,000 | 26,000 | ||
Consigned inventory with customers | 200,000 | 400,000 | ||
Allowance for inventory losses | 3,100,000 | 4,100,000 | ||
Depreciation and amortization | 2,800,000 | 3,000,000 | ||
Advertising expense | $ 200,000 | 300,000 | ||
Most likely than not benefit likelihood percentage being realized upon ultimate settlement with taxing authority resulting from sustainability of tax examination | 50% | |||
Deferred tax asset, valuation allowance | $ 14,275,000 | 15,258,000 | ||
Deferred payroll taxes | 200,000 | 200,000 | ||
Impairment of long-lived assets | 0 | $ 0 | ||
Foreign Tax Authority [Member] | ||||
Nature Of Operations [Line Items] | ||||
Deferred tax asset, valuation allowance | $ 1,400,000 | |||
Test & Measurement Product Line [Member] | ||||
Nature Of Operations [Line Items] | ||||
Goodwill impairment test | October 31, 2022 | |||
Goodwill acquired | $ 5,800,000 | |||
Test & Measurement Product Line [Member] | Product [Member] | ||||
Nature Of Operations [Line Items] | ||||
Goodwill impairment test | October 31, 2021 | |||
Goodwill acquired | $ 6,300,000 | |||
Equipment [Member] | ||||
Nature Of Operations [Line Items] | ||||
Period over which assets are depreciated | 5 years | |||
Furniture and Fixtures [Member] | ||||
Nature Of Operations [Line Items] | ||||
Period over which assets are depreciated | 7 years | |||
Building [Member] | ||||
Nature Of Operations [Line Items] | ||||
Period over which assets are depreciated | 30 years | |||
Level 3 [Member] | ||||
Nature Of Operations [Line Items] | ||||
Investments | $ 0 | $ 0 | ||
Cash [Member] | ||||
Nature Of Operations [Line Items] | ||||
Cash and cash equivalents in foreign bank | 4,540,000 | 3,909,000 | ||
CHINA [Member] | Cash [Member] | ||||
Nature Of Operations [Line Items] | ||||
Cash and cash equivalents in foreign bank | 2,672,000 | 2,800,000 | ||
U.S. and China [Member] | Foreign Tax Authority [Member] | ||||
Nature Of Operations [Line Items] | ||||
Deferred tax asset, valuation allowance | 13,400,000 | |||
Sweden [Member] | Foreign Tax Authority [Member] | ||||
Nature Of Operations [Line Items] | ||||
Deferred tax asset, valuation allowance | 900,000 | |||
Sweden [Member] | Cash [Member] | ||||
Nature Of Operations [Line Items] | ||||
Cash and cash equivalents in foreign bank | 1,868,000 | 1,004,000 | ||
France [Member] | Cash [Member] | ||||
Nature Of Operations [Line Items] | ||||
Cash and cash equivalents in foreign bank | 0 | $ 105,000 | ||
Maximum [Member] | ||||
Nature Of Operations [Line Items] | ||||
Federal Deposit Insurance Corporation insured limit | $ 250,000 | |||
Standard term of accounts receivable | 90 days | |||
Useful lives of the assets | 1 year | |||
Maximum [Member] | Computer Equipment and Software License [Member] | ||||
Nature Of Operations [Line Items] | ||||
Period over which assets are depreciated | 5 years | |||
Minimum [Member] | ||||
Nature Of Operations [Line Items] | ||||
Standard term of accounts receivable | 30 days | |||
Minimum [Member] | Computer Equipment and Software License [Member] | ||||
Nature Of Operations [Line Items] | ||||
Period over which assets are depreciated | 3 years |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Cash and Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 5,780 | $ 6,789 |
Cash equivalents | 1,956 | 1,403 |
Short-term investments | 22,254 | 22,562 |
Cash and investments | $ 29,990 | $ 30,754 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies - Summary of Cash and Cash Equivalents in Foreign Bank Accounts (Detail) - Cash [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents in foreign bank | $ 4,540 | $ 3,909 |
CHINA [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents in foreign bank | 2,672 | 2,800 |
Sweden [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents in foreign bank | 1,868 | 1,004 |
France [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents in foreign bank | $ 0 | $ 105 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies - Cash Equivalents and Investments Measured at Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 1,956 | $ 1,403 |
Short-term investments | 22,254 | 22,562 |
Cash equivalents and Investments - book value | 24,210 | 23,965 |
Unrealized (losses) gains | (59) | (1) |
Cash equivalents and Investments - fair value | 24,151 | 23,964 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,956 | 1,403 |
Short-term investments | 1,109 | 2,903 |
Cash equivalents and Investments - book value | 3,065 | 4,306 |
Unrealized (losses) gains | 0 | 1 |
Cash equivalents and Investments - fair value | 3,065 | 4,307 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 21,145 | 19,659 |
Cash equivalents and Investments - book value | 21,145 | 19,659 |
Unrealized (losses) gains | (59) | (2) |
Cash equivalents and Investments - fair value | 21,086 | 19,657 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 21,145 | 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 | 21,145 | 19,659 |
Certificates of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 1,109 | 2,903 |
Certificates of Deposit [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 1,109 | 2,903 |
Certificates of Deposit [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,956 | 1,403 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,956 | 1,403 |
Money Market Funds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies - Summary of Allowances for Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Credit loss provision | $ 92 | $ 26 |
Credit allowances | 40 | 38 |
Total allowances | $ 132 | $ 64 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies - Allowance for credit losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Beginning Balance | $ 26 | $ 66 |
Current period reserve (benefit) for credit losses | 66 | (40) |
Ending Balance | $ 92 | $ 26 |
Organization and Summary of _10
Organization and Summary of Significant Accounting Policies - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Raw materials | $ 9,064 | $ 6,171 |
Work in process | 1,076 | 690 |
Finished goods | 8,778 | 6,830 |
Inventories, net | $ 18,918 | $ 13,691 |
Organization and Summary of _11
Organization and Summary of Significant Accounting Policies - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 35,260 | $ 38,297 |
Less: Accumulated depreciation and amortization | (27,026) | (28,118) |
Land | 1,770 | 1,770 |
Property and equipment, net | 10,004 | 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 | 10,217 | 10,604 |
Manufacturing and Test Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,661 | 16,305 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 1,475 | 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 |
Organization and Summary of _12
Organization and Summary of Significant Accounting Policies - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | |||
Payroll and other employee benefits | $ 4,318 | $ 2,266 | |
Inventory receipts | 3,720 | 4,302 | |
Paid time off | 1,001 | 1,284 | |
Income and sales taxes | 836 | 415 | |
Operating leases | $ 527 | $ 475 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total | |
Deferred revenues | $ 495 | $ 538 | |
Professional fees and contractors | 346 | 233 | |
Warranties | 317 | 257 | $ 285 |
Customer refunds for estimated returns | 235 | 248 | |
Employee stock purchase plan | 232 | 253 | |
Real estate taxes | 158 | 156 | |
Finance leases | 51 | 62 | |
Restructuring | 0 | 368 | |
Other | 369 | 260 | |
Total | $ 12,605 | $ 11,117 |
Organization and Summary of _13
Organization and Summary of Significant Accounting Policies - Summary of Long-term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities, Noncurrent [Abstract] | ||
Operating leases | $ 3,327 | $ 3,600 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total | Total |
Deferred revenue | $ 181 | $ 181 |
Finance leases | 73 | 92 |
Other | 43 | 126 |
Total | $ 3,624 | $ 3,999 |
Earnings per Share - Computatio
Earnings per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
NET INCOME | $ 2,869 | $ 153 | $ 2,869 |
Denominator: | |||
Common shares outstanding | 18,150,289 | 18,017,006 | |
Net Income per common share - basic | |||
Net income | $ 0.16 | $ 0.01 | |
Weighted Average Shares: | |||
Common shares outstanding | 18,150,289 | 18,017,006 | |
Performance Related Awards | 239,836 | 0 | |
Common stock option grants | 32 | 0 | |
Total shares | 18,529,437 | 18,121,804 | |
Income per common share - diluted | |||
Net income | $ 0.15 | $ 0.01 | |
Restricted Stock [Member] | |||
Weighted Average Shares: | |||
Restricted shares subject to vesting | 139,280 | 104,798,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands, kr in Millions | 1 Months Ended | 8 Months Ended | 12 Months Ended | |||||
Apr. 30, 2021 USD ($) ft² ProductLine Segment | Apr. 30, 2021 SEK (kr) ProductLine Segment | Apr. 30, 2022 | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||
Payments for business acquisition, net of cash | $ 0 | $ 6,277 | ||||||
Number of operating segments | Segment | 1 | 1 | ||||||
Number of product lines | ProductLine | 2 | 2 | ||||||
Inventories | 1,300 | |||||||
Net of fair value Adjustment | 200 | |||||||
Fair value of Inventory recognized | $ 400 | |||||||
Lease expiration date | Apr. 30, 2024 | |||||||
Right of Use Asset | 2,289 | 2,241 | 2,289 | |||||
Operating lease liability | 3,854 | |||||||
Net deferred tax assets | 0 | 882 | 0 | |||||
Goodwill | $ 6,334 | 5,935 | 6,334 | |||||
Revenues | 99,428 | 87,807 | ||||||
Net income | 2,869 | $ 153 | $ 2,869 | |||||
Smarteq [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Working capital adjustments | $ 5 | |||||||
Total cash consideration | 6,785 | |||||||
Cash | 503 | |||||||
Debt | 91 | |||||||
Inventories | 1,286 | |||||||
Gross accounts receivable | $ 1,415 | |||||||
Area of lease | ft² | 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 [Member] | SPA [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 | |||||||
Smarteq France [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Loan term | 5 years | 5 years | ||||||
Loan amount | $ 100 | |||||||
Repayments of loan | $ 100 | |||||||
Loan interest rate | 0.57% | 0.57% | ||||||
Borrowings termination date | 2026-05 | 2026-05 | ||||||
Net deferred tax assets | $ 2,400 |
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 (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Inventories | $ 1,300 | ||
Intangible assets | $ 1,983 | ||
Goodwill | $ 5,935 | $ 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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Net Revenue - pro forma combined | $ 99,428 | $ 90,514 |
Net Income - pro forma combined | $ 2,869 | $ 203 |
Weighted Average Shares: | ||
Basic | 18,150 | 18,017 |
Diluted | 18,529 | 18,122 |
Net Income per Share: | ||
Basic | $ 0.16 | $ 0.01 |
Diluted | $ 0.15 | $ 0.01 |
Business Combinations - Suppl_2
Business Combinations - Supplemental Proforma Combined Net Revenues (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Net Revenue | $ 99,428 | $ 87,807 |
Add: Net Revenue - acquired business | 0 | 2,707 |
Net Revenue - pro forma combined | $ 99,428 | $ 90,514 |
Business Combinations - Suppl_3
Business Combinations - Supplemental Proforma Combined Net Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Net Income | $ 2,869 | $ 153 |
Add: Results of operations of acquired business | 0 | 179 |
Less: pro forma adjustments | ||
Amortization of intangibles | 0 | (120) |
Interest income | 0 | (9) |
Net Income - pro forma combined | $ 2,869 | $ 203 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Carrying Amount of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Finite Lived Intangible Assets [Line Items] | |
Beginning Balance | $ 6,334 |
Foreign currency translation | (399) |
Ending Balance | $ 5,935 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 263 | $ 210 | |
Foreign currency translation adjustment | 200 | ||
Intangible asset amortization | 336 | 267 | |
Operating Expense [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 300 | ||
Intangible asset amortization | 263 | 210 | |
Cost of Revenues [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible asset amortization | $ 73 | $ 57 | |
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets basis over estimated useful lives | 6 months | ||
Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets basis over estimated useful lives | 5 years | ||
Smarteq Wireless Aktiebolag [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets | $ 2,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Amortization Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense, total | $ 336 | $ 267 |
Cost of Revenues [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense, total | 73 | 57 |
Operating Expense [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization expense, total | $ 263 | $ 210 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 29,087 | $ 29,331 |
Accumulated Amortization | 28,042 | 27,752 |
Net Book Value | 1,045 | 1,579 |
Customer Contracts and Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 17,512 | 17,609 |
Accumulated Amortization | 17,091 | 16,978 |
Net Book Value | 421 | 631 |
Patents and Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 9,995 | 10,049 |
Accumulated Amortization | 9,761 | 9,698 |
Net Book Value | 234 | 351 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,484 | 1,563 |
Accumulated Amortization | 1,143 | 1,051 |
Net Book Value | 341 | 512 |
Other [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 96 | 110 |
Accumulated Amortization | 47 | 25 |
Net Book Value | $ 49 | $ 85 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Summary of Assigned Lives and Weighted Average Amortization Periods by Intangible Asset Category (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Summary Of Assigned Lives And Weighted Average Amortization Periods By Intangible Asset Category [Abstract] | |
Assigned Life | 6 months |
Maximum [Member] | |
Summary Of Assigned Lives And Weighted Average Amortization Periods By Intangible Asset Category [Abstract] | |
Assigned Life | 5 years |
Customer Contracts and Relationships [Member] | |
Summary Of Assigned Lives And Weighted Average Amortization Periods By Intangible Asset Category [Abstract] | |
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 [Abstract] | |
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 [Abstract] | |
Assigned Life | 5 years |
Weighted Average Amortization Period | 5 years |
Other [Member] | |
Summary Of Assigned Lives And Weighted Average Amortization Periods By Intangible Asset Category [Abstract] | |
Weighted Average Amortization Period | 3 years 7 months 6 days |
Other [Member] | Minimum [Member] | |
Summary Of Assigned Lives And Weighted Average Amortization Periods By Intangible Asset Category [Abstract] | |
Assigned Life | 6 months |
Other [Member] | Maximum [Member] | |
Summary Of Assigned Lives And Weighted Average Amortization Periods By Intangible Asset Category [Abstract] | |
Assigned Life | 5 years |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Schedule of Future Amortization Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 | $ 325 | |
2024 | 312 | |
2025 | 306 | |
2026 | 102 | |
2027 | 0 | |
Net Book Value | $ 1,045 | $ 1,579 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Accrual Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 368 | $ 15 |
Restructuring expenses | 1,309 | 900 |
Payments made | (1,677) | (547) |
Ending balance | 0 | 368 |
Severance [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 368 | 0 |
Restructuring expenses | 1,309 | 900 |
Payments made | (1,677) | (532) |
Ending balance | 0 | 368 |
Lease Terminations [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 0 | 15 |
Restructuring expenses | 0 | 0 |
Payments made | 0 | (15) |
Ending balance | $ 0 | $ 0 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2022 USD ($) | Nov. 30, 2021 USD ($) Employee | Dec. 31, 2022 USD ($) Employee | Dec. 31, 2021 USD ($) Employee | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses | $ 1,309 | $ 900 | ||
Payments for restructuring | 1,677 | 547 | ||
Employee Severance [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses | 1,309 | 900 | ||
Payments for restructuring | 1,677 | 532 | ||
China Restructuring [Member] | Tianjin [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses | $ 1,300 | $ 100 | ||
Number of employees separation | Employee | 78 | 16 | ||
Restructuring and related activities, description | 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. | |||
Beijing Restructuring [Member] | Antenna [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring expenses | $ 800 | |||
Number of employees separation | Employee | 14 | |||
Beijing Restructuring [Member] | Antenna [Member] | Employee Severance [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Payments for restructuring | $ 400 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Expense for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | ||
Domestic | $ 2,375 | $ 1,359 |
Foreign | 120 | (1,167) |
INCOME BEFORE INCOME TAXES | $ 2,495 | $ 192 |
Income Taxes - Summary of Expen
Income Taxes - Summary of Expense for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | ||
Federal | $ 41 | $ 0 |
State | 440 | 33 |
Foreign | (782) | 0 |
Gross | (782) | 0 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | (73) | 6 |
Gross | 408 | 39 |
Total | $ (374) | $ 39 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expense for Income Taxes (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Statutory federal income tax rate | 21% | 21% |
State income tax, net of federal benefit | 6% | 56% |
Tax effect of permanent differences | 2% | 56% |
Change in valuation allowance | (25.00%) | 16% |
Effective state rate change to deferred tax assets | (2.00%) | 8% |
Stock-based compensation windfalls | 5% | (53.00%) |
Foreign income taxed at different rates | (14.00%) | 53% |
Research and development credits | (18.00%) | (134.00%) |
Return to provision adjustments | 10% | (3.00%) |
Total | (15.00%) | 20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | ||
Income tax expense (benefit) | $ (374,000) | $ 39,000 |
Statutory rate | 21% | 21% |
Designed to tax global intangible low taxed income, minimum percentage return on depreciable tangible assets. | 10% | 10% |
Recognition of interest and penalties as income tax expense | $ 0 | $ 0 |
Deferred tax assets, gross | 15,373,000 | 15,492,000 |
Deferred tax asset, valuation allowance | 14,275,000 | 15,258,000 |
Deferred tax liabilities, gross | 200,000 | 200,000 |
Deferred tax assets | 1,600,000 | 2,300,000 |
Deferred tax assets, research and experimental expenditures | $ 1,783,000 | $ 0 |
Acquired intangible asset amortization period for tax purpose | 15 years | 15 years |
Domestic deferred tax assets ratable reversal pattern period | 10 years | |
Operating loss and credit carry forward, expiration period | The Company’s net operating losses and credits have a finite life primarily based on the 20-year carryforward rule for federal net operating losses (NOLs) generated through December 31, 2017. | |
Net operating loss carry forward period | 20 years | |
Percentage of loss carry forwards of current taxable income | 80 | |
Period of increase or decrease in unrecognized tax benefits | 12 months | |
Operating Loss Carry forwards | $ 4,600,000 | |
Deferred payroll taxes | 200,000 | $ 200,000 |
Sweden [Member] | ||
Income Tax Disclosure [Line Items] | ||
Operating Loss Carry forwards | 9,200,000 | |
Smarteq Wireless Aktiebolag [Member] | ||
Income Tax Disclosure [Line Items] | ||
Deferred tax asset, valuation allowance | 800,000 | |
Foreign Tax Authority | ||
Income Tax Disclosure [Line Items] | ||
Deferred tax asset, valuation allowance | 1,400,000 | |
Operating Loss Carry forwards | $ 3,800,000 | |
Operating loss carry forwards expiration year | 2025 | |
Operating loss carry forwards expiration year | 2028 | |
Foreign Tax Authority | Research Tax Credit Carryforward [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax credit carry forwards | $ 400,000 | |
Tax credit carry forwards expiration year | 2024 | |
Tax credit carry forwards expiration year | 2027 | |
Foreign Tax Authority | Sweden [Member] | ||
Income Tax Disclosure [Line Items] | ||
Deferred tax asset, valuation allowance | $ 900,000 | |
Domestic Tax Authority [Member] | ||
Income Tax Disclosure [Line Items] | ||
Deferred tax asset, valuation allowance | 12,000,000 | |
Domestic Tax Authority [Member] | Research Tax Credit Carryforward [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax credit carry forwards | $ 2,300,000 | |
Tax credit carry forwards expiration year | 2030 | |
Tax credit carry forwards expiration year | 2042 | |
State and Local Jurisdiction [Member] | ||
Income Tax Disclosure [Line Items] | ||
Operating Loss Carry forwards | $ 13,900,000 | |
Operating loss carry forwards expiration year | 2024 | |
Operating loss carry forwards expiration year | 2041 | |
State and Local Jurisdiction [Member] | Research Tax Credit Carryforward [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax credit carry forwards | $ 1,500,000 |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Accounts (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets: | ||
Net operating loss carryforwards | $ 4,781 | $ 6,874 |
Federal, foreign, and state credits | 3,049 | 2,666 |
Research and experimental expenditures | 1,783 | 0 |
Amortization | 1,768 | 2,346 |
Inventory reserves | 926 | 1,076 |
Deferred gain | 868 | 863 |
Stock compensation | 779 | 498 |
Deferred rent | 435 | 476 |
Depreciation | 242 | 0 |
Accrued vacation | 222 | 276 |
Other | 520 | 417 |
Gross deferred tax assets | 15,373 | 15,492 |
Valuation allowance | (14,275) | (15,258) |
Net deferred tax asset | 1,098 | 234 |
Deferred Tax Liabilities: | ||
Amortization | (215) | 0 |
Depreciation | (1) | (234) |
Net Deferred Tax Assets | $ 882 | $ 0 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets Net of Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Valuation Allowance [Line Items] | ||
Net Deferred Tax Assets before valuation allowance | $ 15,157 | $ 15,258 |
Valuation allowance | (14,275) | (15,258) |
Net Deferred Tax Assets | 882 | 0 |
UNITED STATES | ||
Valuation Allowance [Line Items] | ||
Net Deferred Tax Assets before valuation allowance | 11,981 | 11,941 |
CHINA [Member] | ||
Valuation Allowance [Line Items] | ||
Net Deferred Tax Assets before valuation allowance | 1,410 | 1,169 |
Sweden [Member] | ||
Valuation Allowance [Line Items] | ||
Net Deferred Tax Assets before valuation allowance | $ 1,766 | $ 2,148 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning of period | $ 848 | $ 808 |
Addition related to tax positions in current year | 67 | 40 |
Addition related to tax positions in prior years | 67 | 0 |
End of period | $ 982 | $ 848 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Line Items] | |||
Refund liability | $ 235 | $ 248 | |
Warranties | 317 | 257 | $ 285 |
Warranty Reserves [Member] | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Refund liability | 200 | 200 | |
Warranties | $ 300 | $ 300 | |
Warranty Reserves [Member] | Antenna [Member] | |||
Commitments And Contingencies Disclosure [Line Items] | |||
Repair and replacement warranty | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Warranty Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | ||
Beginning balance | $ 257 | $ 285 |
Provisions for warranties | 203 | 65 |
Consumption of reserves | (143) | (93) |
Ending balance | $ 317 | $ 257 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease costs | $ 525 | $ 453 |
Short-term lease costs | 69 | 167 |
Variable lease costs | 10 | 6 |
Amortization of finance lease assets | 60 | 72 |
Interest on finance lease liabilities | 5 | 7 |
Total lease cost | $ 669 | $ 705 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments under Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 | $ 671 | |
2023 | 675 | |
2024 | 585 | |
2025 | 522 | |
2026 | 505 | |
Thereafter | 1,676 | |
Total minimum payments required | 4,634 | |
Less: amount representing interest | 780 | |
Present value of net minimum lease payments | 3,854 | |
Less: current maturities of lease obligations | (527) | $ (475) |
Long-term lease obligations | 3,327 | 3,600 |
Finance Leases | ||
2022 | 56 | |
2023 | 45 | |
2024 | 26 | |
2025 | 5 | |
2026 | 0 | |
Thereafter | 0 | |
Total minimum payments required | 132 | |
Less: amount representing interest | 8 | |
Present value of net minimum lease payments | 124 | |
Less: current maturities of lease obligations | (51) | (62) |
Long-term lease obligations | $ 73 | $ 92 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term - finance leases | 2 years 7 months 6 days | 3 years |
Weighted-average remaining lease term - operating leases | 7 years 4 months 24 days | 8 years 4 months 24 days |
Weighted-average discount rate - finance leases | 4% | 4% |
Weighted-average discount rate - operating leases | 5% | 5% |
Leases - Schedule of Classifica
Leases - Schedule of Classification of ROU Assets and Lease liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Operating right-of-use assets | $ 2,241 | $ 2,289 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets |
Finance right-of-use assets | $ 120 | $ 148 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets |
Total lease assets | $ 2,361 | $ 2,437 |
Current | ||
Operating leases | $ 527 | $ 475 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Finance leases | $ 51 | $ 62 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Noncurrent | ||
Operating leases | $ 3,327 | $ 3,600 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term liabilities | Long-term liabilities |
Finance leases | $ 73 | $ 92 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term liabilities | Long-term liabilities |
Total lease liabilities | $ 3,978 | $ 4,229 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2021 USD ($) ft² | Oct. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) Employee | Nov. 30, 2021 USD ($) ft² Employee | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Leases [Line Items] | ||||||
Operating lease term of contract | 2 years | |||||
Right of Use Asset | $ 2,241 | $ 2,289 | ||||
Lease expiration date | Apr. 30, 2024 | |||||
Lease description | On October 16, 2020, the Wang Zhuang Village Committee issued a notice informing PCTEL Tianjin that the Chinese Party Central Committee and the State Council were accelerating the layout optimization and transformation of the industrial park in which the leased premises is located, and accordingly leases and lease extensions for all premises in the industrial park were suspended. As a result of the uncertainty regarding the Tianjin Lease renewal, the Company accelerated its plan to transition all manufacturing in Tianjin to contract manufacturers. In November 2021, the Company entered into a two-year lease ending December 31, 2023 for 1,694 square feet of office space in Tianjin, China for a small team of employees associated with sourcing, quality, and local customer support and recognized a present value of the right of use asset of $0.1 million for this new office lease. The Company completed the transition of antenna manufacturing from its Tianjin, China facility to contract manufacturers during the first quarter of 2022 and, in April 2022, vacated the manufacturing facility and moved to the new leased facility in Tianjin, China. | |||||
Operating lease liability | $ 3,854 | |||||
Tianjin [Member] | ||||||
Leases [Line Items] | ||||||
Operating lease term of contract | 2 years | |||||
Area of lease | ft² | 1,694 | |||||
Right of Use Asset | $ 100 | |||||
Lease expiration date | Dec. 31, 2023 | |||||
Smarteq Wireless Aktiebolag [Member] | ||||||
Leases [Line Items] | ||||||
Right of Use Asset | $ 200 | $ 200 | ||||
Operating lease liability | $ 200 | $ 200 | ||||
Engineering Sales And Administration | Smarteq Wireless Aktiebolag [Member] | ||||||
Leases [Line Items] | ||||||
Area of lease | ft² | 4,080 | |||||
Lease expiration date | Jul. 31, 2023 | Jul. 31, 2026 | ||||
Lessee, operating lease, existence of option to extend [true false] | true | |||||
Operating lease extended period | 36 months | |||||
Beijing Design Center [Member] | ||||||
Leases [Line Items] | ||||||
Area of lease | ft² | 350 | |||||
Right of Use Asset | $ 100 | |||||
Number of separate employees | Employee | 14 | |||||
Number of former employees rehired | Employee | 4 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Activity Related to Common Shares Outstanding (Detail) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Common stock shares outstanding, Beginning balance | 18,238,030 | 18,429,350 |
Restricted stock awards, net of cancellations | 211,519 | 171,634 |
Issuance of common stock from purchase of Employee Stock Purchase Plan shares | 201,507 | 164,258 |
Common stock issued | 120,696 | 61,186 |
Equity awards under Short-Term Incentive Plan | 60,590 | 0 |
Issuance of common stock on exercise of stock options | 0 | 2,420 |
Common stock Repurchases | 0 | (495,144) |
Cancellation of stock for withholding tax for vested shares | (83,813) | (95,674) |
Common stock shares outstanding, End of Year | 18,748,529 | 18,238,030 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of the Reserved Shares of Common Stock for Future Issuance (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 3,040,147 | 3,648,275 |
PCTEL, Inc. 2019 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 1,463,639 | 1,870,260 |
PCTEL, Inc. 2015 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 299,979 | 299,979 |
PCTEL, Inc. 2019 Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 1,276,529 | 1,478,036 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plans - Additional Information (Detail) - 2019 Stock Plan [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate number of shares that may be issued | 2,213,000 |
Number of shares available in plan to be issued | 299,979 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Percentage of fair market value to determine purchase price | 85% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock compensation expense | $ 3,988,000 | $ 2,921,000 |
Capitalize stock compensation expense | $ 0 | $ 0 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense by Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Based Compensation [Line Items] | ||
Total | $ 3,988 | $ 2,921 |
Service-based Awards [Member] | ||
Stock Based Compensation [Line Items] | ||
Total | 1,267 | 1,405 |
Director Awards [Member] | ||
Stock Based Compensation [Line Items] | ||
Total | 313 | 373 |
Performance-based Awards - Long-term Incentive Plan [Member] | ||
Stock Based Compensation [Line Items] | ||
Total | 968 | 576 |
Performance-based Awards - Short-term Incentive Plan [Member] | ||
Stock Based Compensation [Line Items] | ||
Total | 1,160 | 300 |
Employee Stock Purchase Plan [Member] | ||
Stock Based Compensation [Line Items] | ||
Total | $ 280 | $ 267 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock compensation expense | $ 3,988 | $ 2,921 |
Cost of Revenues [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock compensation expense | 213 | 268 |
Research and Development [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock compensation expense | 632 | 543 |
Sales and Marketing [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock compensation expense | 845 | 658 |
General and Administrative [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock compensation expense | $ 2,298 | $ 1,452 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Remaining Unrecognized Share-based Compensation Expense Related to Outstanding Share-based Awards (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Service-based Awards [Member] | |
Stock Based Compensation [Line Items] | |
Remaining unrecognized share-based compensation expense | $ 1,389 |
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 | $ 1,523 |
Share based compensation arrangement by share based payment award options weighted average life in years | 1 year 6 months |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units - Service-Based - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Service Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares vested grant date intrinsic value | $ 900 | $ 2,200 |
Service Based Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares vested grant date intrinsic value | $ 21 | $ 42 |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Service-based Restricted Stock Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Beginning balance, Shares | 326,336 | 432,422 |
Shares awarded, Shares | 233,744 | 170,158 |
Shares vested, Shares | (179,317) | (272,274) |
Shares cancelled, Shares | (26,726) | (3,970) |
Unvested Ending balance, Shares | 354,037 | 326,336 |
Unvested Beginning balance, Weighted Average Fair Value | $ 7.76 | $ 6.91 |
Shares awarded, Weighted Average Fair Value | 4.66 | 8.04 |
Shares vested, Weighted Average Fair Value | 7.26 | 6.58 |
Shares cancelled, Weighted Average Fair Value | 5.76 | 7.84 |
Unvested Ending balance, Weighted Average Fair Value | $ 6.12 | $ 7.76 |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Service-based Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Beginning balance, Shares | 21,437 | 9,083 |
Units awarded, Shares | 26,667 | 17,800 |
Units vested, Shares | (4,501) | (5,446) |
Shares cancelled, Shares | (8,350) | 0 |
Unvested Ending balance, Shares | 35,253 | 21,437 |
Unvested Beginning balance, Weighted Average Fair Value | $ 7.23 | $ 7.02 |
Units awarded, Weighted Average Fair Value | 4.40 | 7.11 |
Units vested, Weighted Average Fair Value | 7.33 | 6.47 |
Units cancelled, Weighted Average Fair Value | 5.72 | 0 |
Unvested Ending balance, Weighted Average Fair Value | $ 5.42 | $ 7.23 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Options - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options exercised | 0 | 2,420 |
Intrinsic value based on share price | $ 4.30 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee stock options vesting provisions, description | Employee options are subject to installment vesting and although the vesting may vary from year to year, it is typically over a period of three years. | |
Options vested in remaining period | 3 years | |
Period of termination of employment | 180 days | |
Stock options granted period | 10 years | |
Options Granted | 0 | 0 |
Options exercised | 0 | 6,000 |
Intrinsic value | $ 53 | |
Period of expected life, options granted | 5 years | |
Stock Options [Member] | Stock Option Plan One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from options exercised | $ 8 | |
Options exercised | 0 | |
Stock Options [Member] | Stock Option Plan Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued | 1,420 | |
Options exercised | 6,000 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Stock Option Activities [Line Items] | ||
Options Outstanding, Exercised | 0 | (2,420) |
Stock Options [Member] | ||
Summary Of Stock Option Activities [Line Items] | ||
Options Outstanding, Beginning balance, Shares | 4,000 | 16,250 |
Options Outstanding, Exercised | 0 | (6,000) |
Options Outstanding, Cancelled/expired | 0 | (6,250) |
Options Outstanding, Ending balance, Shares | 4,000 | 4,000 |
Options Exercisable, Ending balance, Shares | 4,000 | 3,916 |
Options Outstanding, Beginning balance, Weighted Average Exercise Price | $ 6.02 | $ 6.54 |
Weighted Average Exercise Price, Exercised | 0 | 5.48 |
Weighted Average Exercise Price, Expired or Cancelled | 0 | 7.89 |
Options Outstanding, Ending balance, Weighted Average Exercise Price | 6.02 | 6.02 |
Options Outstanding, Exercisable at End of Year, Weighted Average Exercise Price | $ 6.02 | $ 6 |
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 | 12 Months Ended |
Dec. 31, 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 5 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 5 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) - 2021 STIP [Member] - Certain Executives [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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% | |
Proceeds from issuance of shares | $ 1.2 | $ 0.3 |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Performance Share Activity (Detail) - Performance Awards [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested Beginning balance, Shares | 333,153 | 316,726 |
Awards granted | 269,618 | 187,864 |
Awards cancelled | (81,567) | (171,437) |
Unvested Ending balance, Shares | 521,204 | 333,153 |
Unvested Beginning balance, Weighted Average Fair Value | $ 8.39 | $ 6.84 |
Shares awarded, Weighted Average Fair Value | 4.84 | 8.15 |
Shares cancelled, Weighted Average Fair Value | 6.57 | 5.27 |
Unvested Ending balance, Weighted Average Fair Value | $ 6.84 | $ 8.39 |
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. 21, 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 |
Maximum number of shares that may be issued | 471,832 |
Awards granted | 53,358 |
Percentage of plan for issuance of award | 39% |
Stock-Based Compensation - Su_8
Stock-Based Compensation - Summary of Active Performance-Based Long-Term Incentive Plans (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 3,040,147 | 3,648,275 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 928,558 | |
Target | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 530,604 | |
2020 LTIP [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 254,256 | |
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 | 145,289 | |
2021 LTIP [Member] | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 268,970 | |
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 | 153,697 | |
2022 LTIP | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 405,332 | |
2022 LTIP | Share Price on Grant Date | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 4.84 | |
2022 LTIP | Target | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total shares reserved | 231,618 |
Stock-Based Compensation - Su_9
Stock-Based Compensation - Summary of ESSP Activity (Detail) - Employee Stock Purchase Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | ||
Options Outstanding, Beginning balance, Shares | 0 | 0 |
Units awarded, Shares | 201,507 | 164,258 |
Units vested, Shares | (201,507) | (164,258) |
Options Outstanding, Ending balance, Shares | 0 | 0 |
Options Outstanding, Beginning balance, Weighted Average Exercise Price | $ 0 | $ 0 |
Shares granted, Weighted Average Grant Date Fair Value | 1.38 | 1.62 |
Units vested, Weighted Average Fair Value | 1.38 | 1.62 |
Options Outstanding, Ending balance, Weighted Average Exercise Price | $ 0 | $ 0 |
Stock-Based Compensation - Em_2
Stock-Based Compensation - Employee Stock Purchase Plan ("ESPP") - Additional Information (Detail) - Employee Stock Purchase Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Rate of discount on fair market value of common stock under ESPP | 15% | |
Company received proceeds | $ 0.8 | $ 0.8 |
Period of expected life, options granted | 5 years |
Stock-Based Compensation - Calc
Stock-Based Compensation - Calculation of Fair Value of Stock Option Grant Under ESPP Using Black-Scholes Option-Pricing Model (Detail) - Employee Stock Purchase Plan [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 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 ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2022 | May 31, 2022 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock issued | 120,696 | 61,186 | |||
Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants vesting period | 1 year | 1 year | |||
Common stock issued | 4,033 | 120,768 | 61,186 | ||
Shares cancelled | 4,105 | 4,105 | 0 | ||
Shares vested | 49,652 | ||||
Shares vested | 11,534 | 11,534 | 52,068 | ||
Restricted shares vested grant date intrinsic value | $ 300,000 | ||||
One New Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Company's stock at fair value | $ 47 | ||||
Service Based Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted shares vested grant date intrinsic value | $ 900,000 | $ 2,200,000 | |||
Service Based Restricted Stock [Member] | One New Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants vesting period | 3 years | ||||
Service Based Restricted Stock [Member] | New Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity awards granted | $ 55,000 |
Stock-Based Compensation - S_10
Stock-Based Compensation - Summary of Director Awards Activity (Detail) - Director - $ / shares | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2022 | May 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Options [Line Items] | ||||
Options Outstanding, Beginning balance, Shares | 11,534 | 2,416 | ||
Shares awarded, Shares | 124,801 | 61,186 | ||
Shares vested, Shares | (11,534) | (11,534) | (52,068) | |
Shares cancelled, Shares | (4,105) | (4,105) | 0 | |
Options Outstanding, Ending balance, Shares | 120,696 | 11,534 | ||
Options Outstanding, Beginning balance, Weighted Average Exercise Price | $ 6.57 | $ 6.90 | ||
Shares awarded, Weighted Average Fair Value | 4.02 | 6.57 | ||
Shares vested, Weighted Average Fair Value | (6.57) | (6.65) | ||
Shares cancelled, Weighted Average Fair Value | 4.02 | 0 | ||
Options Outstanding, Ending balance, Weighted Average Exercise Price | $ 4.02 | $ 6.57 |
Stock-Based Compensation - Em_3
Stock-Based Compensation - Employee Withholding Taxes on Stock Awards - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payment of withholding taxes related to stock awards | $ 412 | $ 786 |
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 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Share Repurchases - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Repurchase of common stock | 288,573 | 495,144 | 0 | |
Expenses related to repurchase of shares | $ 1,800 | $ 3,200 | $ 0 | $ 3,193 |
Stock repurchase average price | $ 6.30 | $ 6.45 | ||
Stock repurchase program, authorized amount | $ 5,000 |
Stock-Based Compensation - Auth
Stock-Based Compensation - Authorized Shares - Additional Information (Detail) - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share-Based Payment Arrangement [Abstract] | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Product Line, Customer and Ge_3
Product Line, Customer and Geographic Information - Result of Product Line Revenues and Gross Profits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Results of operations by segments | ||
Revenues | $ 99,428 | $ 87,807 |
Gross Profit | $ 45,733 | $ 40,478 |
Gross Profit % | 46% | 46.10% |
Operating Segments [Member] | Antennas & Industrial IoT Devices [Member] | ||
Results of operations by segments | ||
Revenues | $ 69,662 | $ 63,025 |
Gross Profit | $ 23,293 | $ 21,031 |
Gross Profit % | 33.40% | 33.40% |
Operating Segments [Member] | Test & Measurement Products [Member] | ||
Results of operations by segments | ||
Revenues | $ 30,565 | $ 25,704 |
Gross Profit | $ 22,660 | $ 19,592 |
Gross Profit % | 74.10% | 76.20% |
Corporate, Non-Segment [Member] | ||
Results of operations by segments | ||
Revenues | $ (799) | $ (922) |
Gross Profit | $ (220) | $ (145) |
Product Line, Customer and Ge_4
Product Line, Customer and Geographic Information - Additional Information (Detail) - Customer Concentration Risk [Member] - Customer | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of customers | 1 | |
Number of customers | 1 | |
Trade Accounts Receivable [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of customers | 3 | 0 |
Product Line, Customer and Ge_5
Product Line, Customer and Geographic Information - Schedule of Revenues and Total Trade Accounts Receivable Represents Customer Accounted for 10% or More Percentage (Detail) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue [Member] | Customer C [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 15% | 10% |
Trade Accounts Receivable [Member] | Customer A [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 12% | 5% |
Trade Accounts Receivable [Member] | Customer C [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 12% | 9% |
Trade Accounts Receivable [Member] | Customer D [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 11% | 6% |
Product Line, Customer and Ge_6
Product Line, Customer and Geographic Information - Customers Accounted Revenues by Geographic Location (Detail) - Sales [Member] - Geographic Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total Sales | 100% | 100% |
Europe, Middle East, & Africa [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total Sales | 21% | 23% |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total Sales | 6% | 8% |
Other Americas [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total Sales | 3% | 4% |
Total Foreign Sales [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total Sales | 30% | 35% |
Total Domestic Sales [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Total Sales | 70% | 65% |
Product Line, Customer and Ge_7
Product Line, Customer and Geographic Information - Long-lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Geographic And Business Segment Information [Line Items] | ||
Long-Lived Assets | $ 20,253 | $ 22,300 |
UNITED STATES | ||
Geographic And Business Segment Information [Line Items] | ||
Long-Lived Assets | 15,204 | 17,070 |
Sweden [Member] | ||
Geographic And Business Segment Information [Line Items] | ||
Long-Lived Assets | 5,008 | 4,897 |
CHINA [Member] | ||
Geographic And Business Segment Information [Line Items] | ||
Long-Lived Assets | $ 41 | $ 333 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - Employee Benefit Plans [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Maximum percentage of current compensation of employee to contribute in plan | 15% | |
Percentage of matching contributions by the Company to employee's contributions to 401(k) plan | 100% | |
Discretionary contributions to the 401(k) plan | $ 0 | $ 0 |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to retirement plans | $ 1,010 | $ 1,156 |
US Employees [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to retirement plans | 772 | 725 |
CHINA [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to retirement plans | 75 | 303 |
Sweden [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to retirement plans | 132 | 101 |
Other Foreign [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution to retirement plans | $ 31 | $ 27 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Comprehensive Income [Abstract] | ||
Accumulated other comprehensive income (loss) | $ (1,500) | $ 360 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | 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 purchase order. | |
Payment terms, description | The Company's payment terms generally range between 30 to 90 days. | |
Refund liability | $ 235,000 | $ 248,000 |
Contract assets | 0 | 0 |
Contract with customer liability, revenue recognized | 1,500,000 | 1,100,000 |
Accrued Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Refund liability | 200,000 | 200,000 |
Contract liability | 900,000 | 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) | Dec. 31, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Period for performance obligation to provide software maintenance and support | 1 year |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Doubtful Accounts [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Year | $ 64 | $ 113 |
Charged to Costs and Expenses | 0 | 0 |
Addition (Deductions) | 68 | (49) |
Balance at End of Year | 132 | 64 |
Warranty Reserves [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Year | 257 | 285 |
Charged to Costs and Expenses | (143) | (95) |
Addition (Deductions) | 203 | 67 |
Balance at End of Year | 317 | 257 |
Valuation Allowance of Deferred Tax Assets [Member] | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Year | 15,258 | 12,938 |
Charged to Costs and Expenses | (782) | 0 |
Addition (Deductions) | (201) | 2,320 |
Balance at End of Year | $ 14,275 | $ 15,258 |