Document and Entity Information
Document and Entity Information Document | 12 Months Ended |
Dec. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 000-30718 |
Entity Registrant Name | SIERRA WIRELESS, INC |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 3663 |
Entity Tax Identification Number | 98-0163236 |
Entity Address, Address Line One | 13811 Wireless Way |
Entity Address, City or Town | Richmond |
Entity Address, State or Province | BC |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | V6V 3A4 |
City Area Code | 604 |
Local Phone Number | 231-1100 |
Title of 12(b) Security | Common Shares, without par value |
Trading Symbol | SWIR |
Security Exchange Name | NASDAQ |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 36,619,439 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001111863 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 111 Eighth Avenue |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10011 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Contact Personnel Name | CT Corporation |
RECENTLY IMPLEMENTED ACCOUNTING
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS | RECENTLY IMPLEMENTED ACCOUNTING STANDARDS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, Measurement of Credit Losses on Financial Instruments ("ASC 326"), replacing the incurred loss impairment model that recognizes losses when a probable threshold is met with a requirement to recognize lifetime expected credit losses immediately when a financial asset is originated or purchased. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The new guidance on the current expected credit loss ("CECL") impairment model requires an estimate of expected credit loss, measured over the contractual life of an asset, that considers reasonable and supportable forecasts of future economic conditions in addition to historical experience and current conditions. The objective is to present the entity’s estimate of the net amount expected to be collected on the financial assets. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, net investment in leases recognized by lessor and off-balance sheet credit exposures not accounted for as insurance. In addition, ASC 326 made changes to the accounting for available for sale debt securities. On January 1, 2020, the Company adopted ASC 326 using the modified retrospective method. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $779 as of January 1, 2020 for the cumulative effect of adopting ASC 326 as a result of measuring expected credit losses on trade accounts receivable. The cumulative effect is allocated between continuing and discontinued operations as follows: Effect of adoption of ASC 326 Amount Continuing operations $ 917 Discontinued operations (138) $ 779 In January 2017, FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This new guidance simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the new guidance, entities will perform goodwill impairment tests by comparing fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The standard is effective for fiscal years beginning after December 15, 2019 and we adopted it on January 1, 2020. The standard did not have any impact on our consolidated statements at adoption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, Topic 842). This update is to improve transparency and comparability among organizations by requiring lessees to recognize ROU assets and lease liabilities on the balance sheet and requiring additional disclosure about leasing arrangements. The standard is effective for fiscal years beginning after December 15, 2018. We adopted the standard effective January 1, 2019, applying the optional transition method permitted under ASU 2018-11, which relieves entities from restating comparative financial statements, allowing entities to apply and adopt the new lease standard as at the effective date, rather than as of the first date of the earliest period presented. We elected the package of practical expedients provided under the guidance, which applies to expired or existing leases and allows the Company not to reassess whether a contract contains a lease, the lease classification, and any initial direct costs incurred. We also elected the practical expedient to expense short term leases (12 months or less) on a straight-line basis over the lease term, and to not separate the lease and non-lease components for all of our leases. See note 20, Leases . Upon adoption of Topic 842 effective January 1, 2019, we recognized operating lease liabilities of $31.5 million and corresponding ROU assets of $27.0 million. The $4.5 million difference between operating lease liabilities and right-of-use assets recognized is due to deferred rent and exit cost accruals recorded under prior lease accounting standards. Topic 842 requires such balances to be reclassified against ROU assets at transition. In future periods such balances will not be presented separately. Our accounting for finance leases remains substantially unchanged. |
CHANGES IN FUTURE ACCOUNTING ST
CHANGES IN FUTURE ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
CHANGES IN FUTURE ACCOUNTING STANDARDS | CHANGES IN FUTURE ACCOUNTING STANDARDS In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Financial Risk Management Financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable, derivatives such as foreign currency forward and option contracts, accounts payable and accrued liabilities. We have exposure to the following business risks: We maintain substantially all of our cash and cash equivalents with major financial institutions or invest in government instruments. Our deposits with banks may exceed the amount of insurance provided on such deposits. We outsource manufacturing of our products to third parties and, accordingly, we are dependent upon the development and deployment by third parties of their manufacturing abilities. The inability of any supplier or manufacturer to fulfill our supply requirements could impact future results. We have supply commitments to our contract manufacturers based on our estimates of customer and market demand. Where actual results vary from our estimates, whether due to execution on our part or market conditions, we are at risk. Financial instruments that potentially subject us to concentrations of credit risk are primarily accounts receivable. We perform on-going credit evaluations of our customer’s financial condition and require letters of credit or other guarantees whenever deemed appropriate. Although a significant portion of our revenues are in U.S. dollars, we incur operating costs that are denominated in other currencies. Fluctuations in the exchange rates between these currencies could have a material impact on our business, financial condition and results of operations. To manage our foreign currency risks, we enter into foreign currency forward contracts and options contracts to reduce our exposure to future foreign exchange fluctuations. See note 25(a). We are subject to risks typical of an international business including, but not limited to, differing economic conditions, changes in political climate, differing tax structures other regulations and restrictions and foreign exchange rate volatility. Accordingly, our future results could be materially affected by changes in these or other factors. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue (note 6) | $ 448,588 | $ 547,276 |
Cost of Sales | 289,837 | 349,790 |
Gross margin | 158,751 | 197,486 |
Expenses | ||
Sales and marketing | 86,481 | 87,185 |
Research and development (note 7) | 82,029 | 78,761 |
Administration | 48,513 | 47,127 |
Restructuring (note 8) | 8,740 | 26,262 |
Acquisition-related and integration | 440 | 974 |
Impairment (note 20) | 0 | 877 |
Amortization | 20,584 | 20,554 |
Total expenses | 246,787 | 261,740 |
Loss from operations | (88,036) | (64,254) |
Foreign exchange gain (loss) | 8,003 | (1,224) |
Other expense (note 9) | (2,027) | (307) |
Loss before income taxes | (82,060) | (65,785) |
Income tax expense (recovery)(note 10) | (11,909) | 8,878 |
Net loss from continuing operations | (70,151) | (74,663) |
Net earnings from discontinued operations (note 5(c)) | 20,810 | 4,125 |
Net loss | (49,341) | (70,538) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of taxes of $nil | 7,636 | (4,070) |
Comprehensive loss | $ (41,705) | $ (74,608) |
Net earnings (loss) per share (in dollars)(note 12) | ||
Continuing Operations (in dollars per share) | $ (1.93) | $ (2.06) |
Discontinued operations (in dollars per share) | 0.57 | 0.11 |
Net earnings (loss) per share (in dollars)(note 12) | $ (1.36) | $ (1.95) |
Weighted average number of shares outstanding (in thousands) (note 12) | ||
Basic (in shares) | 36,393 | 36,166 |
Diluted (in shares) | 36,393 | 36,166 |
loT Solutions | ||
Revenue (note 6) | $ 327,323 | $ 377,808 |
Cost of Sales | 205,419 | 237,650 |
Embedded Broadband | ||
Revenue (note 6) | 121,265 | 169,468 |
Cost of Sales | $ 84,418 | $ 112,140 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 160,560,000 | $ 71,164,000 |
Restricted cash (note 24) | 10,864,000 | 3,629,000 |
Accounts receivable (note 13) | 68,575,000 | 94,491,000 |
Inventories (note 15) | 32,815,000 | 36,334,000 |
Prepaids and other (note 16) | 11,933,000 | 10,858,000 |
Assets held for sale (note 5(c)) | 0 | 67,586,000 |
Current assets | 284,747,000 | 284,062,000 |
Property and equipment, net (note 17) | 31,412,000 | 27,577,000 |
Operating lease right-of-use assets (note 20) | 20,068,000 | 25,466,000 |
Intangible assets, net (note 18) | 78,081,000 | 70,072,000 |
Goodwill (note 19) | 175,545,000 | 154,381,000 |
Deferred income taxes (note 10) | 1,135,000 | 1,779,000 |
Other assets | 10,383,000 | 9,982,000 |
Long-term assets held for sale (note 5(c)) | 0 | 66,021,000 |
Assets | 601,371,000 | 639,340,000 |
Current liabilities | ||
Accounts payable and accrued liabilities (note 21) | 162,138,000 | 149,596,000 |
Deferred revenue | 9,862,000 | 9,190,000 |
Liabilities held for sale (5(c)) | 0 | 25,380,000 |
Current liabilities | 172,000,000 | 184,166,000 |
Long-term obligations (note 22) | 45,646,000 | 43,407,000 |
Operating lease liabilities (note 20) | 17,054,000 | 25,154,000 |
Deferred income taxes (note 10) | 10,258,000 | 4,921,000 |
Long-term liabilities held for sale (note 5(c)) | 0 | 367,000 |
Liabilities | 244,958,000 | 258,015,000 |
Shareholders’ equity | ||
Common stock: no par value; unlimited shares authorized; issued and outstanding: 36,619,439 shares (December 31, 2017 — 36,233,361 shares) | 441,999,000 | 435,532,000 |
Preferred stock: no par value; unlimited shares authorized; issued and outstanding: nil shares | 0 | 0 |
Treasury stock: at cost; 46,505 shares (December 31, 2019 — 44,487 shares) | (542,000) | (370,000) |
Additional paid-in capital | 49,489,000 | 38,212,000 |
Retained deficit | (128,953,000) | (78,833,000) |
Accumulated other comprehensive loss (note 22) | (5,580,000) | (13,216,000) |
Total equity | 356,413,000 | 381,325,000 |
Total liabilities and equity | $ 601,371,000 | $ 639,340,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, issued shares | 36,619,439 | 36,233,361 |
Common stock, outstanding shares | 36,619,439 | 36,233,361 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Treasury stock, shares | 46,505 | 44,487 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Treasury Shares | Treasury SharesCumulative Effect, Period of Adoption, Adjusted Balance | Additional paid-in capital | Additional paid-in capitalCumulative Effect, Period of Adoption, Adjusted Balance | Retained deficit | Retained deficitCumulative Effect, Period of Adoption, Adjustment | Retained deficitCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss)Cumulative Effect, Period of Adoption, Adjusted Balance |
Balance (in shares) at Dec. 31, 2018 | 36,067,415 | |||||||||||||
Balance (in shares) at Dec. 31, 2018 | 119,584 | |||||||||||||
Balance at Dec. 31, 2018 | $ 444,130 | $ 432,552 | $ (1,965) | $ 30,984 | $ (8,295) | $ (9,146) | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||
Stock option exercises (note 11) (in shares) | 47,231 | |||||||||||||
Stock option exercises (note 11) | $ 488 | $ 690 | (202) | |||||||||||
Stock-based compensation (note 11) | 12,930 | 12,930 | ||||||||||||
Purchase of treasury shares for RSU distribution (in shares) | 68,500 | |||||||||||||
Purchase of treasury shares for RSU distribution | (674) | $ (674) | ||||||||||||
Distribution of vested RSUs (in shares) | 118,715 | (143,597) | ||||||||||||
Distribution of vested RSUs | (941) | $ 2,290 | $ 2,269 | (5,500) | ||||||||||
Net loss | (70,538) | (70,538) | ||||||||||||
Foreign currency translation adjustments, net of tax | $ (4,070) | (4,070) | ||||||||||||
Balance (in shares) at Dec. 31, 2019 | 36,233,361 | 36,233,361 | 36,233,361 | |||||||||||
Balance (in shares) at Dec. 31, 2019 | 44,487 | 44,487 | 44,487 | |||||||||||
Balance at Dec. 31, 2019 | $ 381,325 | $ (779) | $ 380,546 | $ 435,532 | $ 435,532 | $ (370) | $ (370) | 38,212 | $ 38,212 | (78,833) | $ (779) | $ (79,612) | (13,216) | $ (13,216) |
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Stock option exercises (note 11) (in shares) | 178,223 | |||||||||||||
Stock option exercises (note 11) | 1,964 | $ 2,765 | (801) | |||||||||||
Stock-based compensation (note 11) | 19,940 | 19,940 | ||||||||||||
Purchase of treasury shares for RSU distribution (in shares) | 240,800 | |||||||||||||
Purchase of treasury shares for RSU distribution | (2,802) | $ (2,802) | ||||||||||||
Distribution of vested RSUs (in shares) | 207,855 | (238,782) | ||||||||||||
Distribution of vested RSUs | (1,530) | $ 3,702 | $ 2,630 | (7,862) | ||||||||||
Net loss | (49,341) | |||||||||||||
Foreign currency translation adjustments, net of tax | $ 7,636 | 7,636 | ||||||||||||
Balance (in shares) at Dec. 31, 2020 | 36,619,439 | 36,619,439 | ||||||||||||
Balance (in shares) at Dec. 31, 2020 | 46,505 | 46,505 | ||||||||||||
Balance at Dec. 31, 2020 | $ 356,413 | $ 441,999 | $ (542) | $ 49,489 | $ (128,953) | $ (5,580) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net loss | $ (49,341) | $ (70,538) |
Items not requiring (providing) cash | ||
Amortization | 32,345 | 33,177 |
Stock-based compensation (note 11(a)) | 19,940 | 12,930 |
Deferred income taxes (note 10) | (1,150) | 8,711 |
Impairment (note 20) | 0 | 877 |
Gain on sale of Automotive business (note 5(c)) | (27,137) | 0 |
Unrealized foreign exchange loss (gain) | (8,808) | 1,122 |
Other | 43 | 1,218 |
Changes in non-cash working capital | ||
Accounts receivable | 1,232 | 37,965 |
Inventories | 10,997 | (3,712) |
Prepaids and other | 7,646 | (8,611) |
Accounts payable and accrued liabilities | 7,771 | (12,069) |
Deferred revenue | (1,305) | 5,792 |
Cash flows provided by (used in) operating activities | (7,767) | 6,862 |
Investing activities | ||
Additions to property and equipment | (18,952) | (16,494) |
Additions to intangible assets | (3,023) | (3,779) |
Proceeds from sale of property and equipment | 281 | 98 |
Proceeds from sale of iTank business (note 5(a)) | 144,156 | 500 |
Proceeds from sale of investment | 0 | 3,303 |
Acquisitions, net of cash acquired: | ||
M2M Group (note 5(a)) | 18,391 | 0 |
M2M New Zealand (note 5(b)) | (3,468) | 0 |
Cash flows provided by (used in) investing activities | 100,603 | (16,372) |
Financing activities | ||
Issuance of common shares, net of issuance cost | 1,964 | 488 |
Purchase of treasury shares for RSU distribution | (2,802) | (674) |
Taxes paid related to net settlement of equity awards | (1,530) | (941) |
Proceeds from long-term debt (note 25(b)) | 9,383 | 0 |
Repayment of long-term debt (note 25(b)) | (9,383) | 0 |
Decrease in other long-term obligations | (405) | (535) |
Cash flows used in financing activities | (2,773) | (1,662) |
Effect of foreign exchange rate changes on cash and cash equivalents | 2,278 | 958 |
Cash, cash equivalents and restricted cash, increase (decrease) in the year | 92,341 | (10,214) |
Cash, cash equivalents and restricted cash, beginning of year | 79,083 | 89,297 |
Cash, cash equivalents and restricted cash, end of year | $ 171,424 | $ 79,083 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Sierra Wireless, Inc., together with its subsidiaries (collectively, "the Company", "we", "our") was incorporated under the Canada Business Corporations Act on May 31, 1993. Sierra Wireless is an Internet of Things (“IoT”) pioneer that empowers businesses and industries to transform and thrive in the connected economy. Sierra Wireless provides integrated Device-To-Cloud IoT solutions that are comprised of our recurring connectivity services, our IoT cloud platform, and our embedded cellular modules and gateways. Enterprises, industrial companies and Original Equipment Manufacturers (“OEMs”) worldwide rely on our expertise to deliver fully-integrated IoT solutions to reduce complexity, gather intelligent edge data and enable connected loT products and services. We have sales, engineering, and research and development teams located in offices around the world. The primary markets for our products are North America, Europe and Asia Pacific. We operate our business under two reportable segments: IoT Solutions Integrated end-to-end IoT solutions that include recurring connectivity services, cloud management software, cellular modules and gateways targeted primarily at enterprises and OEMs in the IoT space. Embedded Broadband High-speed cellular embedded modules that are typically used in non-industrial applications, namely Mobile Computing and Enterprise Networking markets. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). (a) Basis of consolidation Our consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned, from their respective dates of acquisition of control. All inter-company transactions and balances have been eliminated on consolidation. (b) Use of estimates The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to revenue recognition, such as determining the nature and timing of satisfaction of performance obligations, determining the standalone selling price of performance obligations, and variable consideration; inventory obsolescence; estimated useful lives of long-lived assets; valuation of intangible assets and goodwill; royalty and warranty accruals; other liabilities; stock-based compensation; allowance for expected credit losses; allowance for doubtful accounts receivable; income taxes; restructuring costs; contingent consideration and commitments and contingencies, based on currently available information. Actual amounts could differ from estimates. (c) Revenue recognition Product revenue includes sales from embedded cellular modules, short range and GNSS wireless modules, intelligent routers and gateways, asset tracking and vertical market smart devices, antennas and accessories, and Smart SIMs. Recurring and other services revenue includes sales from cloud services, cellular connectivity services, managed connectivity and application services, software licenses, technical support services, extended warranty services, solution design and consulting services. We recognize revenues when we satisfy performance obligations by transferring the control of promised products or services to customers. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer. Recurring and other services revenue is recognized over time as the service is rendered or at a point in time upon completion of a service. Our customer contracts can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers. Our products are generally highly dependent on, and interrelated with, the underlying firmware and cannot function without the firmware. In these cases, the hardware and the firmware are accounted for as a single performance obligation and revenue is recognized at the point in time when control is transferred to resellers and distributors, OEMs, or directly to end customers. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the amount of incentives or credits to be provided to customers and reduce revenue recognized. The variable consideration is included in the transaction price to the extent that a significant reversal in the amount of cumulative revenue recognized is not expected to occur when the uncertainty associated with the variable consideration is subsequently resolved. The expected costs associated with assurance-type warranty are recognized as expense when products are sold. Warranty service that is in addition to the assurance that the product complies with agreed upon specifications is a separate performance obligation; its revenue is recognized ratably over the service period. Cloud and connectivity services are provided on either a subscription or consumption basis. Revenue related to cloud and connectivity services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud and connectivity services provided on a consumption basis is recognized based on the customer utilization of such resources. Revenues from SIM activation and initial application setup are deferred and recognized over the estimated customer life on a straight-line basis. Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. Revenue from distinct on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Revenue from software maintenance, unspecified upgrades and technical support contracts are recognized over the period such items are delivered or services are provided. Technical support contracts extending beyond the current period are deferred and revenue is recognized over the applicable earning period. Revenue from solution design and consulting services are recognized as services are being provided. Contract acquisition and fulfillment costs We recognize an asset for the incremental costs of obtaining or fulfilling a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive bonuses and initial setup costs of managed IoT services meet the requirements to be capitalized. We applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The incremental costs of obtaining or fulfilling a contract with a customer are deferred and amortized over the estimated life of the customer relationship. We classify these deferred contract costs as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred contract costs are included in Prepaids and other current assets and Other assets respectively in our consolidated balance sheets. Significant judgment We determine the transaction price of a customer contract by multiplying the unit price of a good or service with the committed order volume or service period. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the expected amount to be provided to customers and exclude it from the transaction price. Sales credits are included in Accounts payable and accrued liabilities in our consolidated balance sheets. Our customer contracts can include various combinations of products and services. When a customer contract includes multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis. We generally determine standalone selling prices based on the price charged to customers or a combination of expected cost, plus a margin and residual methods. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer as it represents the transfer of control of the promised good to a customer. Cloud, connectivity, and managed service revenues are recognized over time as the customer simultaneously receives and consumes the benefits provided by our performance as we perform. Other service revenue is recognized at a point in time upon completion of a service. Contract Balances Receivables - We recognize a right to consideration as a receivable when only the passage of time is required before payment of that consideration is due. Contract Assets - We recognize a right to consideration in exchange for goods or service that we have transferred to a customer as contract assets. Contract assets are comprised mainly of accrued revenue related to monthly IoT service subscriptions, which may include connectivity, cloud applications, and managed services. Contract assets are included in Accounts receivable in our consolidated balance sheet. Deferred Revenue - We recognize an obligation to transfer goods or services to a customer for which we have received consideration from the customer as deferred revenue. Deferred revenue consists of advance payments and billings in excess of revenue recognized, which includes support, extended warranty, cloud application services, and activation fees. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. (d) Research and development costs Research and development costs are expensed as they are incurred, with the exception of certain software development costs principally related to software coding, designing system interfaces and installation, and testing of the software, that we capitalize once technological feasibility is reached. We follow the cost reduction method of accounting for certain agreements, including government research and development funding, whereby the benefit of the funding is recognized as a reduction in the cost of the related expenditure when certain criteria stipulated under the terms of those funding agreements have been met, and there is reasonable assurance the research and development funding will be received. (e) Warranty costs Warranty costs are accrued upon the recognition of related revenue, based on our best estimates, with reference to past and expected future experience. Warranty obligations are included in accounts payable and accrued liabilities in our consolidated balance sheet. (f) Royalty costs We have intellectual property license agreements which generally require us to make royalty payments based on a combination of fixed fees and percentage of the revenue generated by sales of products incorporating the licensed technology. We recognize royalty obligations in accordance with the terms of the respective royalty agreements. Royalty costs are recorded as a component of cost of goods sold in the period when incurred. Where agreements are not in place, we recognize our current best estimate of the royalty obligation in cost of goods sold, accrued liabilities and long-term liabilities. We base our estimate on the smallest salable unit (“SSU”) principle (i.e., the principle that any royalty obligations should be no more than a portion of the profits for a component within the product that implements the patented technology) as the appropriate methodology for determining FRAND standard essential patent (“SEP”) royalties. Using this principle, the royalty accrual on our products is based on the value of the patented technology in the chipset, representing the SSU that implements the technology. (g) Market development costs Market development costs are charged to sales and marketing expense to the extent that the benefit is separable from the revenue transaction and the fair value of that benefit is determinable. To the extent that such costs either do not provide a separable benefit, or the fair value of the benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. (h) Income taxes Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities), non-capital loss, capital loss, and tax credits carry-forwards are measured using the enacted tax rates and laws expected to apply when these differences reverse. Deferred tax benefits, including non-capital loss, capital loss, and tax credits carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs. We include interest and penalties related to income taxes, including unrecognized tax benefits, in Income tax expense. Liabilities for uncertain tax positions are recorded based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. We recognize the tax effects related to share-based payments at settlement or expiration in Income tax expense . (i) Stock-based compensation and other stock-based payments Stock options and restricted share units granted to the Company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost for stock options is measured at fair value at the date of grant using the Black-Scholes valuation model and is expensed over the awards' vesting period using the straight-line method. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to common stock together with any related stock-based compensation expense. Compensation cost for restricted share units is measured at fair value at the date of grant which is the market price of the underlying security and is expensed over the awards' vesting period using the straight-line method. Compensation cost for performance-based restricted share units is measured using a Monte Carlo valuation model. We account for forfeitures in compensation expense when they occur. j) Earnings (loss) per common share Basic earnings (loss) per share is computed by dividing net earnings (loss) for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the Company has incurred a loss for the period, basic and diluted earnings (loss) per share are the same. We use net earnings (loss) from continuing operations as the control number in determining whether potential common shares are dilutive. Under the treasury stock method, the number of dilutive shares, if any, is determined by dividing the average market price of shares for the period into the net proceeds of in-the-money options. (k) Translation of foreign currencies Our functional and reporting currency is the U.S. dollar. Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in Net earnings (loss) for the period. We have foreign subsidiaries that are considered self-contained and integrated within their foreign jurisdiction, and accordingly, use the respective local currency as their functional currency. The assets and liabilities of the foreign subsidiaries, including goodwill and fair value adjustments arising on acquisition, are translated at exchange rates at the balance sheet dates, equity is translated at historical rates, and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from the translation are reported as a component of other comprehensive income (loss), as presented in note 23, Accumulated other comprehensive loss . (l) Cash and cash equivalents and restricted cash Cash and cash equivalents include cash and short-term deposits with original maturities of three months or less from the date of purchase. Cash equivalents are recorded at cost. The carrying amounts approximate fair value due to the short-term maturities of these instruments. The Company classifies cash and cash equivalents as restricted cash when it is unavailable for withdrawal or use in its general operations. See note 24. (m) Allowance for expected credit losses Upon adoption of ASC 326 effective January 1, 2020, we maintain an allowance for lifetime expected credit losses that may result from our customer's inability to pay. Current and future economic conditions, historical information (including credit agency reports, if applicable), credit-worthiness, the line of business from which the customer accounts receivable arose, aging of receivables, known uncollectible accounts and changes in customer payment cycles are all considered when determining the expected credit losses related to accounts receivable. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. If the financial condition of any of our customers deteriorates resulting in an impairment of their ability to make payments, we may increase our allowance. (n) Financing receivables We lease certain hardware devices to a small number of hardware distributors under sales-type leases which have terms ranging from 10 months to 48 months and bear interest at 5%. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. (o) Derivatives Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . (p) Inventories Inventories consist of electronic components and finished goods and are valued at the lower of cost or estimable realizable value, determined on a first-in-first-out basis. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions. We review the components of our inventory and our inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances and new product introductions that vary from current expectations. We believe that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demands for our inventory are substantially less than our estimates, additional inventory write-downs may be required. (q) Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years Research and development equipment related amortization is included in Research and development expense. Tooling, production, monitoring and certain network equipment related amortization is included in Cost of goods sold . All other amortization is included in Amortization expense. Leasehold improvements and leased vehicles are amortized on a straight-line basis over the lesser of their expected average service life or term of the lease. When we sell property and equipment, we net the historical cost less accumulated depreciation and amortization against the sale proceeds and include the difference in Other income (expense) . (r) Intangible assets The estimated useful life of intangible assets with definite lives is the period over which the assets are expected to contribute to our future cash flows. When determining the useful life, we consider the expected use of the asset, useful life of any related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three Intellectual property and customer relationships — 3-13 years Brand — over the estimated life Research and development — over the estimated life In-process research and development ("IPRD") is included in research and development and are intangible assets acquired as part of business combinations. Prior to their completion, IPRD are intangible assets with indefinite life and they are not amortized but subject to impairment test on an annual basis. Research and development related amortization is included in Research and development expense. All other amortization is included in Amortization expense. (s) Leases At inception of a contract, we apply judgment in assessing whether a contract is or contains a lease. This assessment involves determining whether we have control over the identified asset for a period of time in exchange for consideration. Operating leases are included in Operating lease right-of-use ("ROU") assets, Accounts payable and accrued liabilities , and Operating lease liabilities in our consolidated balance sheets. Finance leases are included in Property and equipment, Accounts payable and accrued liabilities, and Long-term obligations in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease right-of-use assets and liabilities at commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate as the discount rate for leases as the rates implicit in our leases are not readily determinable. Our incremental borrowing rate is estimated to approximate the interest on a collateralized basis with similar terms and payments and in economic environments where the leased asset is located. The operating lease ROU asset also includes any prepaid lease payments, initial direct costs and lease incentives. Our lease terms include non-cancelable periods and include options to renew the lease when it is reasonably certain that we will exercise that option. Operating lease cost for lease payments is recognized on a straight-line basis over the term of the lease. Our lease agreements have lease and non-lease components, which we have elected to account for as a single lease cost. We have elected not to record right-of-use assets and lease liabilities for short-term leases with a term of 12 months or less and recognize these short term leases to profit or loss on a straight-line basis over the lease term. (t) Goodwill Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to assets acquired and liabilities assumed in a business combination. We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. Goodwill has an indefinite life, is not amortized, and is subject to an annual impairment test, on October 1 of every year, at the reporting unit level. Goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include an adverse change in business climate, legal factors, operating performance indicators, competition or sale or disposition of a significant portion of a reporting unit. The goodwill impairment test compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired. If the carrying amount exceeds the implied fair value of the goodwill, an impairment loss is recognized equal to the amount by which the carrying amount exceeds the reporting unit's fair value. An evaluation of recoverability of goodwill requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the estimated fair value of each reporting unit. Significant judgments that are required on our part to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates, consideration of appropriate control premium, market conditions, and other assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and may result in impairment charges in future periods. In March 2020, the World Health Organization declared a global pandemic caused by the outbreak of the novel coronavirus specifically identified as COVID-19. It is not possible to reliably estimate the length or severity of these developments and the impact on the financial results of the Company in the future. There are significant uncertainties with respect to future development and impact to the Company related to COVID-19, including the duration, severity and scope of the outbreak and the measures taken by governments and businesses to contain the pandemic. We did not identify any indicators of impairment for the year ended December 31, 2020. The COVID-19 pandemic and its impact on the economy is constantly evolving and presents many variables and contingencies for modeling. In future periods, the effects of the pandemic may have material impacts on our anticipated revenue levels and the recoverable amount of our reporting units. (u) Impairment of long-lived assets Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. We did not identify any indicators of impairment for the year ended December 31, 2020. (v) Comprehensive income (loss) Comprehensive income (loss) includes net earnings (loss) as well as changes in equity from other non-owner sources. The other changes in equity included in comprehensive income (loss) are comprised of foreign currency cumulative translation adjustments. (w) Investment tax credits In Canada and the United States, investment tax credits are accounted for using the flow-through method whereby such credits are accounted for as a reduction of income tax expense in the period in which the credit arises. In France, the investment tax credits are reported as a reduction of cost as the credits are refundable irrespective of taxable income. (x) Comparative figures Certain figures presented in the consolidated financial statements have been reclassified to conform to the current year presentation. (y) Discontinued Operations We report a disposal of a component or a group of components as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect of the Company's operations and financial results when the components meet the criteria to be classified as held for sale. At the time an operation qualifies for held-for-sale accounting, the operation is evaluated to determine whether or not its carrying amount exceeds its fair value less cost to sell. Any loss as a result of carrying amounts in excess of fair value less cost to sell is recorded in the period the operation qualifies for held-for-sale accounting. Assets, once classified as held for sale, are not subject to depreciation or amortization, and both the assets and any liabilities directly associated with the assets held for sale are classified as current in the Company’s consolidated balance sheets. When a portion of a reporting unit that constitutes a business is disposed of, goodwill associated with that business is included in the carrying amount of the business in determining the gain or loss on disposal. The amount of goodwill is based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Management judgment is required to (i) assess the criteria required to qualify for held-for-sale accounting and (ii) estimate fair value. Our automotive business is presented as discontinued operations for all periods and as assets or liabilities held for sale for the year ended December 31, 2019. Our consolidated statements of cash flows include discontinued operations. See note 5, Disposition of Automotive Business . Supplemental cash flow information relating to discontinued operations is disclosed separately in the note disclosure. (z) Business Combination We account for our business combinations using the acquisition method. Under this method, estimates we make to determine the fair values of acquired assets and liabilities assumed include judgments in our determinations of acquired intangible assets and assessment of the fair value of existing property and equipment. Assumed liabilities can include litigation and other contingency reserves existing at the time of the acquisition. Goodwill is recognized as of the acquisition date as the excess of the fair value of consideration transferred over the estimated fair values of net identifiable assets acquired and liabilities assumed at their acquisition date. Acquisition related expenses are separately recognized from business combination and are expensed as incurred. |
ACQUISITIONS AND DISPOSALS
ACQUISITIONS AND DISPOSALS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSALS | ACQUISITIONS AND DISPOSALS Acquisition of M2M Group On January 7, 2020, we completed the acquisition of M2M Connectivity Pty Ltd, M2M One Pty Ltd and D-Square Innovation Pty Ltd (collectively, the "M2M Group") in Australia. Total purchase consideration for the acquisition of the M2M Group was $21,102, comprised of cash consideration to the shareholders of $19,587 for 100% of the equity of the M2M Group, plus approximately $1,343 for the retirement of certain obligations and $172 for normal course working capital adjustments. The purchase consideration has been fully paid and settled during the second quarter of 2020. We accounted for the transaction using the acquisition method and accordingly, recorded the tangible and intangible assets acquired and liabilities assumed on the basis of our estimates of their respective preliminary fair values as at January 7, 2020. The excess of the purchase price over the final value assigned to the net assets acquired is recorded as goodwill. The allocation of the purchase price was finalized as of June 30, 2020. The following table summarizes the final values assigned to the assets acquired at the acquisition date: Amount Assets acquired Cash $ 2,712 Net working capital (640) Deferred revenue (914) Identifiable intangible assets 16,064 Goodwill 8,699 Deferred income tax liability (4,819) Fair value of net assets acquired $ 21,102 Goodwill of $8,699 resulting from the acquisition consists largely of the expectation that the acquisition will expand the Company's IoT Solutions business in the Asia-Pacific region. Goodwill is not deductible for tax purposes. The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 10 years $ 14,646 Brand 5 years 1,418 $ 16,064 There was no significant impact on the Company's revenue and net earnings on a pro forma basis for all periods presented. On December 15, 2020, we completed the acquisition of M2M One NZ Ltd ("M2M New Zealand") in New Zealand. Total purchase consideration for the acquisition of M2M New Zealand was $3,686, comprised of cash consideration to the shareholders of $3,286 for 100% of the equity of M2M New Zealand, plus a $400 cash holdback amount to be released to the seller on December 15, 2021 to secure the the purchaser's rights of indemnification under the share purchase agreement. We accounted for the transaction using the acquisition method and accordingly, recorded the tangible and intangible assets acquired and liabilities assumed on the basis of our estimates of their respective preliminary fair values as at December 15, 2020. The excess of the purchase price over the preliminary value assigned to the net assets acquired is recorded as goodwill. The preliminary fair value of tangible and intangible assets acquired were based upon preliminary valuations. Our estimates and assumptions reflected in such preliminary valuations are subject to change within the measurement period (up to one year from the acquisition date). The primary areas that remain preliminary relate to the fair values of intangible assets, deferred income taxes and goodwill. The following table summarizes the preliminary values assigned to the assets acquired at the acquisition date: Amount Assets acquired Cash $ 218 Net working capital (277) Tangible assets 3 Deferred revenue (5) Identifiable intangible assets 1,853 Goodwill 2,377 Deferred income tax liability (483) Fair value of net assets acquired $ 3,686 Preliminary goodwill of $2,377 resulting from the acquisition consists largely of the expectation that the acquisition will expand the Company's IoT Solutions business in the Asia-Pacific region. Goodwill is not deductible for tax purposes. The following table provides the components of the preliminary identifiable intangible assets acquired that are subject to amortization: Estimated Amount Customer relationships 10 years $ 1,542 Brand 5 years 311 $ 1,853 On November 18, 2020, we completed the sale of substantially all of the assets and operations related to our Shenzhen, China-based automotive embedded module product line ("Automotive Business") to Rolling Wireless (H.K.) Limited for total gross proceeds of $165,000 in cash, subject to adjustments to working capital, including $10,000 of proceeds held in escrow that we recorded in restricted cash and were released on January 8, 2021. The automotive embedded module product line is part of our Embedded Broadband reportable segment. Pursuant to the sale transaction, approximately 150 employees became employees of Rolling Wireless, of which approximately 120 employees are located in Mainland China and 30 are located in Europe or the Asia-Pacific region. The gain on sale of the Automotive Business consists of the following: Amount Total gross proceeds $ 165,000 Transaction costs (4,011) Working capital adjustment (11,122) Net proceeds 149,867 Net assets disposed (including cash sold of $5,711) (122,730) Gain on disposal before income taxes 27,137 Income tax expense (11,914) Gain on disposal, net of taxes $ 15,223 The assets and liabilities held for sale were as follows: November 18, 2020 December 31, 2019 Cash and cash equivalents $ 5,711 $ 4,290 Accounts receivable 64,885 36,941 Inventories 11,521 17,957 Prepaids and other 289 8,398 Property and equipment, net 12,439 12,347 Operating lease right-of-use assets — 143 Goodwill 54,497 53,214 Deferred income taxes 488 317 Assets held for sale $ 149,830 $ 133,607 Accounts payable and accrued liabilities $ 25,877 $ 23,960 Deferred revenue 794 1,420 Long term obligations 429 367 Liabilities held for sale $ 27,100 $ 25,747 Classification: November 18, 2020 December 31, 2019 Current assets held for sale $ 149,830 $ 67,586 Long-term assets held for sale — 66,021 Assets held for sale $ 149,830 $ 133,607 Current liabilities held for sale $ 27,100 $ 25,380 Long-term liabilities held for sale — 367 Liabilities held for sale $ 27,100 $ 25,747 The results related to the Automotive business have been presented as discontinued operations in the consolidated statements of operations and comprehensive loss and were as follows: 2020 2019 Revenue $ 196,609 $ 166,237 Cost of sales 169,108 143,733 Gross margin 27,501 22,504 Expenses 19,878 16,337 Gain on sale of Automotive Business (27,137) — Earnings before income taxes 34,760 6,167 Income tax expense on gain of sale of Automotive Business (11,914) — Income tax expense (2,036) (2,042) Net earnings from discontinued operations $ 20,810 $ 4,125 The cash flows related to the Automotive business included in the consolidated statements of cash flows were as follows: 2020 2019 Cash flows provided by (used in) discontinued operations Net cash provided by (used in) operating activities $ (2,919) $ 27,395 Net cash used in investing activities (1) (1,277) (3,220) Net cash provided by (used in) discontinued operations $ (4,196) $ 24,175 (1) Net cash used in investing activities does not include proceeds from sale of the Automotive Business. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION | SEGMENTED INFORMATION We disaggregate our revenue from contracts with customers into reportable segments (see consolidated statements of operations and comprehensive loss), type and geographical region. We operate our business under two reportable segments (i) IoT Solutions and (ii) Embedded Broadband: IoT Solutions Our IoT Solutions segment is focused on end-to-end IoT solutions that include recurring connectivity services, cloud management software, and cellular modules and gateways targeted primarily at enterprises and OEMs in the IoT space. Our primary focus is on three key markets: (i) Industrial Edge for manufacturing asset monitoring; (ii) Mobile Edge for mobile asset tracking; and (iii) Infrastructure Edge for commercial infrastructure and building monitoring. Embedded Broadband Our Embedded Broadband segment is comprised of our high-speed cellular embedded modules that are typically used in non-industrial applications, namely Mobile Computing and Enterprise Networking markets. The products in this segment are typically high-speed 4G LTE and LTE-Advanced, and 5G cellular modules that are ordered in larger volumes. In this segment, we have limited opportunities to provide connectivity services or IoT solutions to the OEM customer. As our chief operating decision maker does not evaluate the performance of our operating segments based on segment assets, management does not present asset information on a segmented basis. REVENUE BY TYPE 2020 2019 Revenue Product $ 332,544 $ 449,063 Recurring and other services 116,044 98,213 $ 448,588 $ 547,276 REVENUE BY GEOGRAPHICAL REGION 2020 2019 Americas $ 199,472 $ 235,896 Europe, Middle East and Africa 76,500 85,243 Asia-Pacific 172,616 226,137 $ 448,588 $ 547,276 PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION 2020 2019 Americas $ 23,357 $ 19,075 Europe, Middle East and Africa 5,237 5,212 Asia-Pacific 2,818 3,290 $ 31,412 $ 27,577 We sell certain products through resellers, original equipment manufacturers and wireless service providers who sell these products to end-users. In 2020, we did not have any customers that accounted for more than 10% of total revenue. In 2019, we had one customer that accounted for 10.2% of total revenue. |
RESEARCH AND DEVELOPMENT
RESEARCH AND DEVELOPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT The components of research and development costs consist of the following: 2020 2019 Gross research and development $ 82,320 $ 79,014 Government tax credits (291) (253) $ 82,029 $ 78,761 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING On April 30, 2019, we announced two initiatives related to the acceleration of our transformation to a Device-to-Cloud IoT solutions company: (i) Consolidation of engineering resources and the transfer of certain functions to lower cost locations resulting in a significant reduction in our engineering team in Issy-Les-Moulineaux, outside of Paris, France; and (ii) outsourcing of a select group of general and administrative transaction-based activities to a global outsourcing partner. Transition activities commenced in the third quarter of 2019 and are substantially completed. During the year ended December 31, 2020, we expensed $0.4 million relating to these two initiatives (2019 - $26.5 million). As at December 31, 2020, outstanding liability of $1.3 million is included in Accounts payable and accrued liabilities. The liability relates to outplacement and training costs where employees have up to 30 months from their termination notices to submit the claim. In addition, during the year ended December 31, 2019, we recorded $1.7 million for severance and other related costs as a result of previous restructuring initiatives. During the third quarter of 2020, we took the first step to initiate actions to reduce our operating expenses, in conjunction with the expected closing of the sale of our automotive business in the fourth quarter of 2020. We implemented some organizational changes, including consolidation of our engineering resources resulting in a reduction in our engineering team in Hong Kong. These actions are part of our transformation to a Device-to-Cloud IoT solutions company. During the year ended December 31, 2020, approximately 120 employees were impacted, and we recorded $10.2 million for severances and related costs, of which $1.7 million is included in discontinued operations. As at December 31, 2020, the outstanding liability of $4.5 million for this initiative is included in Accounts Payable and accrued liabilities and is expected to be paid by the end of February 2022. The following table provides the activity in the restructuring liability: 2020 2019 Balance, beginning of period $ 8,655 $ 2,486 Reclassification from long-term obligations — 1,617 Expensed - continuing operations 8,740 26,262 Expensed - discontinued operations 1,741 1,898 Disbursements (13,475) (23,424) Foreign exchange 89 (184) $ 5,750 $ 8,655 Classification: Accounts payable and accrued liabilities (note 21) 5,750 8,655 $ 5,750 $ 8,655 By restructuring initiative: April 2019 1,254 8,655 Q3 2020 4,496 — $ 5,750 $ 8,655 |
OTHER EXPENSE
OTHER EXPENSE | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE | OTHER EXPENSE The components of other income (expense) for the years ended December 31 were as follows: 2020 2019 Interest income $ 131 $ 429 Interest expense (818) (269) Discount fees (note 25(d)) (414) (347) Financing costs (695) — Other (231) (120) $ (2,027) $ (307) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of earnings (loss) before income taxes consist of the following: 2020 2019 Continuing operations Canadian $ (24,872) $ (23,451) Foreign (57,188) (42,334) $ (82,060) $ (65,785) The income tax expense (recovery) consists of: 2020 2019 Canadian: Current $ (8,349) $ 126 Deferred — 8,706 $ (8,349) $ 8,832 Foreign: Current $ (2,410) $ 41 Deferred (1,150) 5 $ (3,560) $ 46 Total: Current $ (10,759) $ 167 Deferred (1,150) 8,711 $ (11,909) $ 8,878 The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision for the years ended December 31 was as follows: 2020 2019 Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2019 -26.99%) $ (22,148) $ (17,755) Increase (decrease) in income taxes for: Permanent and other differences 1,353 2,007 Investment tax credits (2,396) (3,494) Foreign exchange and tax rates differential (7,434) 976 Change in valuation allowance 20,221 34,230 Stock-based compensation expense 894 1,263 Change in estimate (2,399) (8,349) Income tax expense (recovery) $ (11,909) $ 8,878 Deferred tax assets and liabilities The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows at December 31: 2020 2019 Deferred income tax assets (liabilities) Property and equipment $ (4,801) $ (3,515) Non capital loss carry-forwards 114,744 101,340 Capital loss carry-forwards 2,160 3,284 Scientific research and development expenses and credits 28,932 25,437 Reserves and other 24,533 19,777 Investments (1,309) (1,106) Acquired intangibles (9,468) (6,591) Lease liabilities 4,219 6,144 159,010 144,770 Valuation allowance 168,133 147,912 $ (9,123) $ (3,142) 2020 2019 Classification: Assets Non-current $ 1,135 $ 1,779 Liabilities Non-current (10,258) (4,921) $ (9,123) $ (3,142) At December 31, 2020, we have provided for a valuation allowance on our deferred tax assets of $168,133 (2019 - 147,912) At December 31, 2020, we have Canadian allowable capital loss carry-forwards of $8,626 that are available, indefinitely, to be deducted against future Canadian taxable capital gains. In addition, we have Canadian SR&ED expenditure carry-forwards of $6,989 that are available, indefinitely, to be deducted against future Canadian taxable income, tax credits of $23,500 and $10,724 available to offset future Canadian federal and provincial income taxes payable, respectively. The investment tax credits expire between 2024 and 2039. At December 31, 2020, our U.S. subsidiary has $6,445 of California research & development tax credits which may be carried forward indefinitely. At December 31, 2020, net operating loss carry-forwards for our foreign subsidiaries were $78,406 for U.S. income tax purposes, of which, $22,417 may be carried forward indefinitely, and $55,989 expires between 2021 and 2037, $876 for Sweden income tax purposes, $25 for Norway income tax purposes, $90,874 for Luxembourg income tax purposes, of which, $38,763 may be carried forward indefinitely, and $52,111 expires from 2035, and $275,430 for French income tax purposes. The Sweden, Norway, and French net operating loss carry-forward may be carried forward indefinitely. Our foreign subsidiaries may be limited in their ability to use foreign net operating losses in any single year depending on their ability to generate significant taxable income. In addition, the utilization of the U.S. net operating losses is also subject to ownership change limitations provided by U.S. federal and specific state income tax legislation. The amount of French net operating losses deducted each year is limited to €1.0 million plus 50% of French taxable income in excess of €1.0 million. Our French net operating losses carry-forward is subject to the “continuity of business” requirement. Our French subsidiaries also have research tax credit carried forward of $3,226 and employment tax credit carried forward of $119 as at December 31, 2020. The French tax credits may be used to offset against corporate income tax and if any tax credits are not fully utilized within a three-year period following the year the tax credits are earned, it may be refunded by the French tax authorities. Tax loss and tax credits carry-forwards are denominated in the currency of the countries in which the respective subsidiaries are located and operate. Fluctuations in currency exchange rates could reduce the U.S. dollar equivalent value of these tax loss and research tax credit carry forwards in future years. We estimated utilizing $3,291 of Canadian allowable capital loss to offset the capital gain resulting from the divestiture of the automotive business. In assessing the realizability of our deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible and the loss carry-forwards or tax credits can be utilized. Management considers projected future taxable income and tax planning strategies in making our assessment. Accounting for uncertainty in income taxes At December 31, 2020, we had gross unrecognized tax benefits of $4,474 (2019 — $4,628). Of this total, $559 (2019 — $447) represents the amount of unrecognized tax benefits that, if recognized, would favorably impact our effective tax rate. Below is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31: 2020 2019 Unrecognized tax benefits, beginning of year $ 4,628 $ 4,482 Increases — tax positions taken in prior periods 70 49 Increases — tax positions taken in current period — — Settlements and lapses of statute of limitations (224) 97 Unrecognized tax benefits, end of year $ 4,474 $ 4,628 We recognize interest expense and penalties related to unrecognized tax benefits within the provision for income tax expense on the consolidated statement of operations. At December 31, 2020, we had increased $50 (2019 - increased $56) for accruals of interest and penalties. In the normal course of business, we are subject to audit by the Canadian federal and provincial taxing authorities, by the U.S. federal and various state taxing authorities and by the taxing authorities in various foreign jurisdictions. Tax years ranging from 2007 to 2020 remain subject to examination in Canada, the United States, the United Kingdom, France, Germany, Australia, New Zealand, China, Hong Kong, Brazil, South Africa, Japan, Korea, Taiwan, Italy, Sweden, Norway, India, Spain, and Luxembourg. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes it is reasonably possible that certain tax matters may be concluded in the next 12 months. The Company estimates that the unrecognized tax benefits at December 31, 2020 could reduce by approximately $833 in the next 12 months. Deferred taxes on foreign earnings No provision for taxes has been provided on undistributed foreign earnings, as it is the Company’s intention to indefinitely reinvest undistributed earnings of its foreign subsidiaries. It is not practical to estimate the income tax liability that might be incurred if there is a change in management’s intention in the event that a remittance of such earnings occur in the future. Government Subsidies Government grant is recognized when there is reasonable assurance that (a) the Company will comply with eligible requirements attached to the grant and (b) the grant will be received. Government grant is recorded as a reduction in the cost of the related expenditures. In 2020, the Company recorded government grants under the Canada Emergency Wage Subsidy of $6,332 and other COVID-19 related subsidies of $920. 2020 Cost of sales $ 180 Sales and marketing 1,588 Research and development 4,186 Administration 1,298 $ 7,252 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS (a) Stock-based compensation expense: 2020 2019 Cost of goods sold $ 319 $ 167 Sales and marketing 5,241 3,644 Research and development 4,014 2,752 Administration 8,379 5,988 Continuing operations $ 17,953 $ 12,551 Discontinued operations 1,987 379 19,940 12,930 Stock option plan 2,361 2,890 Restricted stock plan 17,579 10,040 $ 19,940 $ 12,930 (b) Stock option plan Under the terms of the Company's Stock Option Plan (the “Plan”), the Board of Directors may grant stock options to employees, officers and directors. At the Company's Annual General and Special Meeting of Shareholders on May 21, 2020, shareholders approved a resolution to amend and restate the terms of the Plan. The amendments increased the maximum number of shares issuable pursuant to the Plan to the lesser of 8.9% (increased from 8.1%) of the number of issued and outstanding common shares from time to time or 7,000,000 common shares. In addition, the maximum number of shares issuable pursuant to the Plan, together with any shares issuable pursuant to other security-based compensation arrangements, shall not exceed 8.9% of the number of issued and outstanding common shares from time to time. Based on the number of shares outstanding as at December 31, 2020, stock options exercisable into 720,871 co mmon shares are available for future allocation under the Plan. The Plan provides that the exercise price of a stock option will be determined on the date of grant and will not be less than the c losing market price of the Company's stock at that date. Stock options generally vest over four years, with the first 25% vesting at the first anniversary date of the grant and the balance vesting in equal amounts at the end of each month thereafter. The Company determines the expiry date of each stock option at the time it is granted, which cannot be more than five years after the date of the grant. The fair value of stock options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2020 2019 Risk-free interest rate 0.31 % 2.03 % Annual dividends per share Nil Nil Expected stock price volatility 53 % 54 % Expected option life (in years) 4.0 4.0 Average fair value of options granted (in dollars) $5.26 $5.38 There is no dividend yield as the Company does not pay, and does not plan to pay cash dividends on their common shares. The expected stock price volatility is based on the historical volatility of the Company's average monthly stock closing prices over a period equal to the expected life of each option grant. The risk-free interest rate is based on yields from risk-free instruments with a term equal to the expected term of the options being valued. The expected life of options represents the period of time that the options are expected to be outstanding based on historical data of option holder exercise and termination behavior. Forfeitures are accounted for in compensation expense as they occur. The following table presents stock option activity for the years ended December 31: Number of Options Weighted Weighted Aggregate Outstanding $ In Years $ Outstanding, December 31, 2018 1,378,348 19.64 2.8 822 Granted 462,937 12.34 Exercised (47,231) 10.43 80 Forfeited (205,911) 20.31 Outstanding, December 31, 2019 1,588,143 18.14 2.6 30 Granted 289,518 13.01 Exercised (178,223) 11.36 497 Forfeited (338,327) 21.95 Outstanding, December 31, 2020 1,361,111 17.27 2.4 1,399 The intrinsic value of outstanding and exercisable stock options is calculated as the quoted market price of the stock at the balance sheet date, or date of exercise, less the exercise price of the option. The following table summarizes the stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Number Weighted Average Remaining Option Life Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Exercise Prices Outstanding (years) $ Exercisable $ $8.46 - $12.73 258,201 2.5 11.40 139,893 11.42 $12.74 - $13.38 273,330 3.8 12.99 69,333 13.03 $13.39 - $16.23 269,416 3.3 14.74 101,628 15.93 $16.24 - $25.15 299,304 1.4 21.09 265,989 21.43 $25.16 - $25.82 260,860 1.1 25.81 249,913 25.81 1,361,111 2.4 17.27 826,756 19.68 The options outstanding at December 31, 2020 expire between March 12, 2021 and November 17, 2025. As at December 31, 2020, the unrecognized stock-based compensation cost related to the non-vested stock options was $2,763 (2019 — $4,548), which is expected to be recognized over a weighted average period of 2.4 years (2019 — 2.6 years). (c) Restricted share plans The Company has two market based restricted share unit plans: one for U.S. employees and one for all non-U.S. employees, and a treasury based restricted share unit plan (collectively, the “RSPs”). The RSPs support our growth and profitability objectives by providing long-term incentives to employees and also encourage our objective of employee share ownership through the granting of RSUs. There is no exercise price or monetary payment required from the employees upon the grant of an RSU or upon the subsequent delivery of our common shares (or, in certain jurisdictions, cash in lieu at the option of the Company) to settle vested RSUs. The form and timing of settlement is subject to local laws. At the Company's Annual General and Special Meeting of Shareholders on May 21, 2020, shareholders approved a resolution to amend the treasury based restricted share unit plan (the "Treasury Plan"). The amendments increased the maximum number of shares issuable pursuant to outstanding awards under the Treasury Plan to 4.6% (increased from 3.7%) of the number of issued and outstanding shares and the maximum number of shares issuable pursuant to all of our security-based compensation arrangements is 8.9% (increased from 8.1%) of the number of issued and outstanding shares. Based on the number of shares outstanding as at December 31, 2020, 341,142 share units are available for future allocation under the Treasury Plan. With respect to the two market-based RSPs, independent trustees purchase Sierra Wireless common shares over the facilities of the Toronto Stock Exchange and Nasdaq, which are used to settle vested RSUs. The existing trust funds are variable interest entities and are included in these consolidated financial statements as treasury shares held for RSU distribution. As at December 31, 2020, there were 2,614,135 market RSUs outstanding. The Company includes a performance-based component to certain grants of units under our RSPs ("PSUs"). The current outstanding PSUs (market condition) have a performance-based three In February 2019, the Board of Directors approved the issuance of PSUs that are measured against an internal performance benchmark based on achieving service revenue targets or cost savings initiatives as well as PSUs measured against a benchmark index. The fair value of the PSUs (performance condition) that are measured against an internal performance benchmark based on achieving service revenue targets or cost savings initiatives is the Company's stock price on the date of grant. The fair value of the PSUs that are measured against a benchmark index at date of grant is determined using the Monte Carlo simulation model. These outstanding PSUs have a performance-based three Generally, non-performance based RSUs vest over three years, in equal one-third amounts on each anniversary date of the grant and some cliff vest in one year. RSU grants to employees who are resident in France for French tax purposes will not vest before the second anniversary from the date of grant, and any shares issued are subject to an additional two In February 2020, the Company issued certain non-performance based RSUs that cliff-vest in two years. The intrinsic value of outstanding RSUs is calculated as the quoted market price of the stock at the balance sheet date. The intrinsic value of vested/settled RSUs is calculated as the quoted market price of the stock at date of vesting. The following table summarizes the RSU activity for the years ended December 31: Number of Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate RSUs $ In years $ Outstanding, December 31, 2018 1,046,275 19.24 2.6 13,289 Granted 1,222,131 12.44 Vested / settled (333,865) 18.22 4,607 Forfeited (118,782) 15.20 Outstanding, December 31, 2019 1,815,759 15.42 2.3 17,310 Granted 2,865,042 12.80 Vested / settled (586,343) 16.30 6,569 Forfeited (303,175) 12.83 Outstanding, December 31, 2020 3,791,283 13.61 2.0 55,242 Outstanding – vested and not settled 168,028 Outstanding – unvested 3,623,255 Outstanding, December 31, 2020 3,791,283 As at December 31, 2020, the total remaining unrecognized compensation cost associated with the RSUs totaled $30,055 ( 2019 — $14,871), which is expected to be recognized over a weighted average period of 1.8 y ears (2019 — 1.9 years). |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The following table provides the reconciliation between basic and diluted earnings (loss) per share: 2020 2019 Net earnings (loss) Net loss from continuing operations $ (70,151) $ (74,663) Net earnings from discontinued operations 20,810 4,125 $ (49,341) $ (70,538) Weighted average shares used in computation of: Basic 36,393 36,166 Diluted 36,393 36,166 Basic and diluted net earnings (loss) per share (in dollars): Continuing operations $ (1.93) $ (2.06) Discontinued operations 0.57 0.11 $ (1.36) $ (1.95) As the Company incurred losses for the years ended December 31, 2020 and 2019, all equity awards for those years were anti-dilutive and were excluded from the diluted weighted average shares. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE The components of accounts receivable at December 31 were as follows: 2020 2019 Trade receivables $ 53,213 $ 81,612 Less: allowance for doubtful accounts (3,631) (2,975) 49,582 78,637 Sales taxes receivable 4,419 3,341 R&D tax credits 3,350 3,816 Financing receivables 342 959 Contract assets (note 2(c)) 2,132 1,688 Other receivables 8,750 6,050 $ 68,575 $ 94,491 The movement in the allowance for expected credit losses during the years ended December 31 was as follows: 2020 2019 Balance, beginning of year $ 2,975 $ 2,968 Effect of adoption of ASC 326 (note 3) 917 3,892 Current period provision for expected credit losses 418 490 Write-offs charged against allowance for credit losses (792) (285) Recoveries of amounts previously written off 15 — Foreign exchange 98 (3) Assets held for sale — $ (195) $ 3,631 $ 2,975 |
CONTRACT BALANCES
CONTRACT BALANCES | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT BALANCES | Contract Balances 2020 2019 Change Contract assets $ 2,132 $ 1,688 $ 444 Deferred revenue - current 9,862 9,190 672 Deferred revenue - noncurrent 7,863 8,078 (215) Contract assets are included in Accounts receivable in our consolidated balance sheets. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES The components of inventories at December 31 were as follows: 2020 2019 Electronic components $ 19,468 $ 17,504 Finished goods 13,347 18,830 $ 32,815 $ 36,334 |
PREPAIDS AND OTHER
PREPAIDS AND OTHER | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAIDS AND OTHER | PREPAIDS AND OTHER The components of prepaids and other at December 31 were as follows: 2020 2019 Inventory advances $ 1,434 $ 2,338 Insurance and licenses 873 292 Deposits 2,665 2,120 Contract acquisition and fulfillment costs 1,850 1,529 Other 5,111 4,579 $ 11,933 $ 10,858 In 2020, $1,276 of deferred contract acquisition and fulfillment costs were expensed to Sales and marketing and Cost of sales |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The components of property and equipment at December 31 were as follows: 2020 Cost Accumulated Net book Furniture and fixtures $ 3,467 $ 2,163 $ 1,304 Research and development equipment 33,583 21,770 11,813 Production equipment and tooling 31,999 23,466 8,533 Computer equipment 5,608 4,610 998 Software 7,608 5,838 1,770 Leasehold improvements 7,719 5,940 1,779 Leased vehicles 392 390 2 Office equipment 1,172 1,045 127 Monitoring equipment 6,141 2,455 3,686 Network equipment 6,417 5,017 1,400 $ 104,106 $ 72,694 $ 31,412 2019 Cost Accumulated Net book Furniture and fixtures $ 3,189 $ 1,948 $ 1,241 Research and development equipment 31,085 22,623 8,462 Production equipment and tooling 28,665 20,052 8,613 Computer equipment 9,274 7,748 1,526 Software 9,854 7,727 2,127 Leasehold improvements 7,319 5,124 2,195 Leased vehicles 584 560 24 Office equipment 1,184 996 188 Monitoring equipment 1,852 1,117 735 Network equipment 6,780 4,314 2,466 $ 99,786 $ 72,209 $ 27,577 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The components of intangible assets at December 31 were as follows: 2020 Cost Accumulated Net book Patents and trademarks $ 16,300 $ 14,649 $ 1,651 Licenses 57,480 53,153 4,327 Intellectual property 28,916 26,095 2,821 Customer relationships 140,892 83,858 57,034 Brand 17,070 5,631 11,439 Research and development 11,158 10,349 809 $ 271,816 $ 193,735 $ 78,081 2019 Cost Accumulated Net book Patents and trademarks $ 15,416 $ 13,540 $ 1,876 Licenses 52,517 48,912 3,605 Intellectual property 27,824 22,326 5,498 Customer relationships 116,576 69,883 46,693 Brand 14,613 3,727 10,886 Research and development 10,274 8,760 1,514 $ 237,220 $ 167,148 $ 70,072 Estimated annual amortization expense for the next 5 years ended December 31 is as follows: Amount 2021 15,691 2022 11,882 2023 11,242 2024 10,399 2025 8,779 Amortization expense relating to intangible assets was $17,216, and $16,920 for the years ended December 31, 2020, and 2019, respectively. The weighted-average remaining useful lives of intangible assets was 6.2 years as at December 31, 2020. At December 31, 2020 and 2019, substantially all intangible assets were subject to amortization. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill for the years ended December 31 were as follows: 2020 2019 Balance at beginning of year $ 154,381 $ 211,074 Goodwill allocated to discontinued operations (note 5(c)) — (53,214) Adjusted balance at beginning of year 154,381 157,860 Goodwill acquired (note 5(a) and 5(b)) 11,076 — Foreign currency translation adjustments 10,088 (3,479) $ 175,545 $ 154,381 IoT Solutions $ 138,630 $ 121,429 Embedded Broadband 36,915 32,952 $ 175,545 $ 154,381 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES The components of lease expenses were as follows: 2020 2019 Operating lease cost $ 8,616 $ 9,610 Finance lease cost 130 345 Short-term lease cost 2,020 1,961 ROU asset impairment — 877 10,766 12,793 Sublease income (1,534) (1,032) Total lease expenses $ 9,232 $ 11,761 We have operating leases for offices, data centers and certain office equipment. Our leases have remaining lease terms of 0.1 years to 11.0 years (2019 - 0.2 years to 12.0 years years). We sublease certain offices to third parties. Supplemental Balance Sheet information related to leases was as follows: 2020 2019 Operating Leases Operating lease right-of-use assets $ 20,068 $ 25,466 Accounts payable and accrued liabilities $ 7,376 $ 5,793 Operating lease liabilities 17,054 25,154 Total operating lease liabilities $ 24,430 $ 30,947 Finance Leases Property and equipment, gross $ 1,111 $ 1,362 Accumulated depreciation (1,084) (1,192) Property and equipment, net $ 27 $ 170 Accounts payable and accrued liabilities $ 171 $ 379 Long-term obligations 8 188 Total finance lease liabilities $ 179 $ 567 Weighted Average Remaining Lease Term Operating leases 6.9 7.1 Finance leases 1.2 1.6 Weighted Average Discount Rate Operating leases 2.6 % 2.6 % Finance leases 3.8 % 3.5 % Supplemental cash flow information related to leases was as follows: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,152 $ 7,860 Financing cash flow from finance leases 405 535 New lease assets obtained in exchange for lease liabilities (non-cash): Operating leases $ 678 $ 6,782 Financing leases — 38 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2021 $ 7,447 $ 181 $ 7,628 2022 2,063 14 2,077 2023 3,190 14 3,204 2024 2,268 1 2,269 2025 2,002 — 2,002 Thereafter 10,254 — 10,254 Total lease payments 27,224 210 27,434 Less: imputed interest (2,794) (31) (2,825) Total lease liabilities $ 24,430 $ 179 $ 24,609 |
LEASES | LEASES The components of lease expenses were as follows: 2020 2019 Operating lease cost $ 8,616 $ 9,610 Finance lease cost 130 345 Short-term lease cost 2,020 1,961 ROU asset impairment — 877 10,766 12,793 Sublease income (1,534) (1,032) Total lease expenses $ 9,232 $ 11,761 We have operating leases for offices, data centers and certain office equipment. Our leases have remaining lease terms of 0.1 years to 11.0 years (2019 - 0.2 years to 12.0 years years). We sublease certain offices to third parties. Supplemental Balance Sheet information related to leases was as follows: 2020 2019 Operating Leases Operating lease right-of-use assets $ 20,068 $ 25,466 Accounts payable and accrued liabilities $ 7,376 $ 5,793 Operating lease liabilities 17,054 25,154 Total operating lease liabilities $ 24,430 $ 30,947 Finance Leases Property and equipment, gross $ 1,111 $ 1,362 Accumulated depreciation (1,084) (1,192) Property and equipment, net $ 27 $ 170 Accounts payable and accrued liabilities $ 171 $ 379 Long-term obligations 8 188 Total finance lease liabilities $ 179 $ 567 Weighted Average Remaining Lease Term Operating leases 6.9 7.1 Finance leases 1.2 1.6 Weighted Average Discount Rate Operating leases 2.6 % 2.6 % Finance leases 3.8 % 3.5 % Supplemental cash flow information related to leases was as follows: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,152 $ 7,860 Financing cash flow from finance leases 405 535 New lease assets obtained in exchange for lease liabilities (non-cash): Operating leases $ 678 $ 6,782 Financing leases — 38 Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2021 $ 7,447 $ 181 $ 7,628 2022 2,063 14 2,077 2023 3,190 14 3,204 2024 2,268 1 2,269 2025 2,002 — 2,002 Thereafter 10,254 — 10,254 Total lease payments 27,224 210 27,434 Less: imputed interest (2,794) (31) (2,825) Total lease liabilities $ 24,430 $ 179 $ 24,609 |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The components of accounts payable and accrued liabilities at December 31 were as follows: 2020 2019 Trade payables and accruals $ 67,250 $ 55,796 Inventory commitment reserve 475 767 Accrued royalties 10,698 11,870 Accrued payroll and related liabilities 21,244 13,825 Professional services 5,329 4,415 Taxes payable (including sales taxes) 4,979 4,847 Product warranties (note 27(a)(iii)) 5,804 6,743 Sales credits 10,732 8,814 Restructuring liability (note 8) 5,750 8,655 Operating lease liabilities (note 20) 7,376 5,793 Finance lease liabilities (note 20) 171 379 Other 22,330 27,692 $ 162,138 $ 149,596 |
LONG-TERM OBLIGATIONS
LONG-TERM OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | |
LONG-TERM OBLIGATIONS | LONG-TERM OBLIGATIONS The components of long-term obligations at December 31 were as follows: 2020 2019 Accrued royalties $ 33,218 $ 30,988 Deferred revenue 7,863 8,078 Finance lease liabilities (note 20) 8 188 Other 4,557 4,153 $ 45,646 $ 43,407 Remaining performance obligations As at December 31, 2020, we had $21,608 of remaining performance obligations to be recognized (December 31, 2019 - $24,173), of which we expect to recognize approximately 45% in 2021, 29% in 2022, and 26% in subsequent years. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The changes by component in accumulated other comprehensive loss, net of taxes, were as follows: 2020 2019 Balance, beginning of period $ (13,216) $ (9,146) Foreign currency translation adjustments 1,914 (3,241) Loss on long term intercompany balances 5,722 (829) Balance, end of period $ (5,580) $ (13,216) |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes supplemental cash flow information and non-cash activities: 2020 2019 Net income taxes paid $ 3,333 $ 616 Net Interest (received) paid 739 (202) Discount fees paid (note 25 (d)) 414 347 Non-cash property and equipment additions — 485 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: 2020 2019 Cash and cash equivalents $ 160,560 $ 71,164 Restricted cash 10,864 3,629 Assets held for sale — 4,290 Total cash, cash equivalents, and $ 171,424 $ 79,083 As at December 31, 2020, $10,000 was held in escrow related to the divestiture of the Automotive Business and $100 is held in escrow related to certain vendor obligations. We collected $764 from trade receivables sold to CIBC under our Accounts Receivable Purchase Agreement which have not been remitted to CIBC as at December 31, 2020. See note 25(d). As at December 31, 2019, Assets held for sale |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT (a) Fair value presentation An established fair value hierarchy requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices in active markets for identical assets and liabilities, such as 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 the assets or liabilities. Level 3 - Inputs that are generally unobservable and are supported by little or no market activity and that are significant to the fair value determination of the assets or liabilities. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the immediate or short-term maturity of these financial instruments. Based on borrowing rates currently available to us for loans with similar terms, the carrying values of our obligations under capital leases, long-term obligations and other long-term liabilities approximate their fair values. Derivatives, such as foreign currency forward and options contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . Fair value of the foreign currency forward contracts are based on observable market inputs such as forward rates in active markets, which represents a Level 2 measurement within the fair value hierarchy. As at December 31, 2020, we were committed to foreign currency forward contracts totaling $28.8 million Canadian dollars with an average forward rate of 1.3140, maturing between January and December 2021. We recorded unrealized gain of $485 in Foreign exchange gain (loss) for those outstanding contracts in the year ended December 31, 2020 (2019 — Foreign exchange gain of $1,421). (b) Credit Facilities On April 30, 2020, we amended the revolving credit agreement (the “Revolving Facility”) with the Canadian Imperial Bank of Commerce (“CIBC”) as sole lender and as Administrative Agent, which increased our total borrowing capacity to $50 million and extended the maturity date to April 30, 2023. The amendments also included revising the availability under the Revolving Facility to be subject to a borrowing base related to eligible accounts receivable and inventory and is the lesser of the facility size or borrowing base. The Revolving Facility is secured by a pledge against substantially all of our assets. The Revolving Facility will be used for general corporate purposes, including, but not limited to, capital expenditures, working capital requirements and/or certain acquisitions permitted under the Revolving Facility. Borrowings under the Revolving Facility may bear interest at US Base Rate or LIBOR plus applicable margin. The Revolving Facility contains a financial covenant that requires the Company to be below a maximum total leverage ratio. As at December 31, 2020, there were no outstanding borrowings under the Revolving Facility (2019 — nil). In 2020, we recorded interest expense of $578 (2019-nil). On July 22, 2020, we amended the Revolving Facility and added a $12.5 million Canadian dollar term loan facility (the “Loan”) with CIBC. The Loan is backed by the Government of Canada under the Business Credit Availability Program (“BCAP”); specifically, 80% of the principal of the Loan is guaranteed by the Business Development Bank of Canada (“BDC”). The Loan bears interest at CIBC’s Prime Lending rate or Bankers Acceptance rate plus applicable margin. Repayment is interest only for the first 12 months, followed by regular quarterly payments of principal based on a ten-year amortization schedule plus interest. The outstanding amount owing plus accrued interest and fees are repayable on the maturity date, July 22, 2025. Under the terms of the BCAP, the proceeds must be used to finance operations, may not be used to refinance existing debt obligations, pay dividends or other distributions to shareholders, make shareholder contributions or shareholder loans, buy back shares and includes certain restrictions on executive compensation payouts. During 2020, we borrowed and fully repaid $9.4 million (Cdn $12.5 million) under the Loan. In 2020, we recorded interest expense of $161 (2019 - nil). On February 17, 2021, we entered into an additional amending agreement to the revolving credit agreement (the “Amended Revolving Facility”) with CIBC as sole lender and as Administrative Agent, which reduced the total borrowing capacity under the Revolving Facility to $30 million from $50 million. The Revolving Facility will be used for general corporate purposes, including, but not limited to, capital expenditures, working capital requirements and/or certain acquisitions permitted under the Revolving Facility. Borrowings under the Revolving Facility may bear interest at US Base Rate or LIBOR plus applicable margin. Availability under the Amended Revolving Facility is no longer subject to a borrowing base. The Amended Revolving Facility contains customary affirmative, negative and financial covenants. (c) Letters of credit We have access to a standby letter of credit facility of $1.5 million from Toronto Dominion Bank. The credit facility is used for the issuance of letters of credit and guarantees and is guaranteed by Export Development Canada. As of December 31, 2020, letters of credit issued against the revolving standby letter of credit facility were for a total value of $1.35 million (2019 — $0.1 million). (d) Accounts Receivable Purchase Agreement We have an uncommitted Receivables Purchase Agreement (the “RPA”) with CIBC, as purchaser, to improve our liquidity during high working capital periods. Under the RPA, the Company may offer to sell certain eligible accounts receivable (the “Receivables”) to CIBC, which may accept such offer, and purchase the offered Receivables. Under the RPA, up to $75.0 million of Receivables may be sold and remain outstanding at any time. Receivables are sold at 100% face value less discount with a 10% limited recourse to the Company arising from certain repurchase events. The RPA is on an uncommitted basis with no expiry date and carries a discount rate of CDOR (for purchased receivables in CAD) and LIBOR (for purchased receivables in USD) plus an applicable margin. After the sale, the Company does not retain any interests in the Receivables, but continues to service and collect, in an administrative capacity, the outstanding receivables on behalf of CIBC. The Company accounts for the sold Receivables as a sale in accordance with FASB ASC 860, Transfers and Servicing . Proceeds from the sale reflect the face value of the Receivables less discount fees charged by CIBC and one-time legal costs. The discount fees are recorded in Other expense in the Company’s consolidated statements of operations. Net proceeds are classified under operating activities in the consolidated statements of cash flows. Pursuant to the RPA, the Company sold and de-recognized $163,354 Receivables in 2020 (2019 - $86,856). As at December 31, 2020, $19,388 remained outstanding to be collected from customers and remitted to CIBC (2019 - $18,174). Discount fees of $414 for 2020 are included in Other expense in the consolidated statements of operations (2019 - discount fees of $347 and administration expense of $129). As at December 31, 2020, we collected $764 from Receivables that we previously sold and that have not been remitted to CIBC due to timing of settlement dates. We recorded the amount in Restricted cash in the consolidated balance sheets with a corresponding increase in accrued liabilities (2019 - $3,408). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES (a) Contingent liability on sale of products (i) Under license agreements, we are committed to make royalty payments based on the sales of products using certain technologies. We recognize royalty obligations as determinable in accordance with agreement terms. Where agreements are not in place, we have recognized our current best estimate of the obligation under accrued liabilities and long-term obligations. When agreements are finalized or the obligation becomes statute barred, the estimate will be revised accordingly. (ii) We are a party to a variety of agreements in the ordinary course of business under which we may be obligated to indemnify a third party with respect to certain matters. Typically, these obligations arise as a result of contracts for sale of our products to customers where we provide indemnification against losses arising from matters such as potential intellectual property infringements and product liabilities. The impact on our future financial results is not subject to reasonable estimation because considerable uncertainty exists as to whether claims will be made and the final outcome of potential claims. To date, we have not incurred material costs related to these types of indemnifications. (iii) We accrue product warranty costs to provide for the repair or replacement of defective products. Our accrual is based on an assessment of historical experience and on management’s estimates. Changes in the liability for product warranties were as follows: 2020 2019 Balance, beginning of year $ 6,743 $ 7,914 Provisions 4,834 3,686 Expenditures (5,773) (2,673) Liability held for sale — (2,184) Balance, end of year $ 5,804 $ 6,743 (b) Other commitments We have purchase commitments totaling approximately $93,865 (December 31, 2019 — $128,146, including $51,587 related to the automotive business), with certain contract manufacturers and suppliers under which we have committed to buy a minimum amount of designated products between January and June 2021. In certain of these agreements, we are required to acquire and pay for such products up to the prescribed minimum or forecasted purchases. We also have purchase commitments totaling approximately $2,836 (December 31, 2019 — $7,110) with certain mobile network operators, under which we have committed to buy a minimum amount of wireless data and wireless data services between January 2021 and October 2022. We have a purchase commitment totaling approximately $2,478 (December 31, 2019 - $2,458) with a supplier under which we have committed to buy a minimum amount of cloud computing services between January 2021 and May 2022. (c) Legal proceedings We are from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of our business. We accrue for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. These accruals are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and technical experts and other information and events pertaining to a particular matter. To the extent there is a reasonable possibility (within the meaning of ASC 450, Contingencies) that the losses could exceed the amounts already accrued for those cases for which an estimate can be made, management believes that the amount of any such additional loss would not be material to our results of operations or financial condition. In some instances, we are unable to reasonably estimate any potential loss or range of loss. The nature and progression of litigation can make it difficult to predict the impact a particular lawsuit will have on the Company. For instance, in the case of patent litigation, there are many reasons why we cannot make these assessments, including, among others, one or more of the following: in the early stage of a proceeding, the claimant is not required to specifically identify the manner in which the patent has allegedly been infringed; damages sought that are unspecified, unsupportable, unexplained or uncertain; discovery not having been started or being incomplete; the complexity of the facts that are in dispute (e.g., the analysis of the patent and a comparison to the activities of the Company is a labor-intensive and highly technical process); the difficulty of assessing novel claims; the parties not having engaged in any meaningful settlement discussions; the possibility that other parties may share in any ultimate liability; and the often slow pace of patent litigation. We are required to apply judgment with respect to any potential loss or range of loss in connection with litigation. While we believe we have meritorious defenses to the claims asserted against us in our currently outstanding litigation, and intend to defend ourselves vigorously in all cases, in light of the inherent uncertainties in litigation there can be no assurance that the ultimate resolution of these matters will not significantly exceed the reserves currently accrued by us for those cases for which an estimate can be made. Losses in connection with any litigation for which we are not presently able to reasonably estimate any potential loss or range of loss could be material to our results of operations and financial condition. In March 2020, Sunset Licensing LLC filed a patent infringement lawsuit in the United States District Court for the District of Delaware, which lawsuit makes certain allegations concerning our GNX-3 LTE devices. The lawsuit has been dismissed without prejudice. In November 2019, Stormborn Technologies LLC filed a patent infringement lawsuit in the United States District Court for the District of Delaware, which lawsuit makes certain allegations concerning our FX and GL series devices. The lawsuit has been dismissed with prejudice. In January 2017, Koninklijke KPN N.V. filed a patent infringement lawsuit in the United States District Court for the District of Delaware asserting patent infringement by us and our U.S. subsidiary. The lawsuit makes certain allegations concerning the alleged use of data transmission error checking technology in our wireless products. In March 2018, the Court granted our motion for judgment on the pleadings that the plaintiff’s patent is invalid. The plaintiff appealed this invalidity ruling to the Federal Circuit, and in November 2019, the Federal Circuit reversed the District Court’s invalidity ruling. In April 2019, the United States Patent and Trial Appeal Board rendered its final decision in our petition for Inter Partes Review of the patent-in-suit, and the instituted claims were not proved to be unpatentable. In April 2020, the District Court granted summary judgment to the plaintiffs with respect to our counterclaims alleging that the plaintiff had breached its commitments to standard setting organizations. The Court rendered its claim construction order in September 2020. A stipulated motion to stay filed by the parties was granted by the Court in February 2021. In August 2014, M2M Solutions LLC filed a patent infringement lawsuit against us in District Court for the District of Delaware asserting patent infringement by us and our US subsidiary. The lawsuit makes certain allegations concerning our wireless products with respect to US Patent No. 8,648,717. In March 2017, the United States Patent and Trial Appeal Board issued its decisions in the instituted Inter Partes Review proceedings filed by us and other defendants, invalidating all independent claims and several dependent claims in the single patent-in-suit. In April 2017, M2M Solutions assigned the patent-in-suit to Blackbird Tech LLC (“Blackbird”), and they became a plaintiff in the lawsuit in June of that year. In September 2018, the court denied a motion to dismiss the lawsuit. Blackbird was granted leave to identify additional asserted claims and accused products with respect to the patent-in-suit. In November 2019, the Judge issued a claim construction order finding two of the remaining five claims in the patent-in-suit to be indefinite and therefore invalid. In December 2020, a Report and Recommendation of the Magistrate was filed recommending that the Court grant our motion for summary judgment of non-infringement. The Court’s ruling on this matter is pending. Trial in our case has been continued and is not currently scheduled. Intellectual Property Indemnification Claims We have been notified by certain of our customers in the following matter that we may have an obligation to indemnify them in respect of the products we supply to them: In June 2019, Sisvel International S.A. and 3G Licensing S.A. (together, “First Suit Plaintiffs”), filed patent infringement lawsuits (the “First Suits”) in the United States District Court for the District of Delaware against one or more of our customers alleging patent infringement with respect to a portfolio of 12 patents purportedly owned by Sisvel and obtained from Nokia Corporation (5 patents) and Blackberry, Ltd. (7 patents), that First Suit Plaintiffs allege relate to technology for cellular communications networks including, but not limited to 2G, 3G and 4G/LTE. The allegations have been made in relation to certain of our customer’s products, which may include products which utilize modules sold to them by us. Following successful motions to dismiss filed by several defendants, the First Suit Plaintiffs have filed amended complaints, dropping 6 of the 7 Blackberry patents from the allegations against certain of the defendants, including at least one of our customers. Inter Partes Review petitions have been filed by us and other defendants with respect to all of the patents involved in the First Suits, eleven of which have been instituted and one has been denied. The First Suits are in the discovery stage and a first trial against one of the defendants is scheduled for November 2022. In May 2020, Sisvel International S.A., 3G licensing S.A. and Sisvel S.p.A. (collectively, the “Second Suit Plaintiffs”) filed patent infringement lawsuits (the "Second Suits”) in the United States District Court for the District of Delaware, against one or more of our customers alleging patent infringement with respect to a portfolio of 9 patents purportedly owned by the Second Suit Plaintiffs and obtained from Nokia Corporation (1 patent), Blackberry, Ltd. (2 patents) and LG Electronics Inc. (6 patents), that the Second Suit Plaintiffs allege relate to technology for cellular communications networks including, but not limited to 3G and 4G. The allegations have been made in relation to certain of our customers’ products, which may include products which utilize modules sold to them by us. The Second Suits are in the scheduling stage. Although there can be no assurance that an unfavorable outcome would not have a material adverse effect on our operating results, liquidity or financial position, we believe the claims made in the foregoing legal proceedings are without merit and intend to defend ourselves and our products vigorously in all cases. We are engaged in certain other claims, legal actions and arbitration matters, all in the ordinary course of business, and believe that the ultimate outcome of these claims, legal actions and arbitration matters will not have a material adverse effect on our operating results, liquidity or financial position. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTChange in Reportable SegmentsWe have revised our reportable segments to align with changes in how we report our financial results and manage our business. Commencing in the first quarter of 2021, we classify our operations into two reportable segments: IoT Solutions and Enterprise Solutions. Our new IoT Solutions segment is comprised of our portfolio of cellular modules from LPWA through to high-speed embedded 5G broadband modules with IoT connectivity, solutions and software. The Enterprise Solutions segment is comprised of our gateways, asset tracking and monitoring business, and our Enterprise connectivity, solutions and software. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Our consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). |
Basis of consolidation | (a) Basis of consolidation Our consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned, from their respective dates of acquisition of control. All inter-company transactions and balances have been eliminated on consolidation. |
Use of estimates | Use of estimates The consolidated financial statements have been prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. On an ongoing basis, management reviews its estimates, including those related to revenue recognition, such as determining the nature and timing of satisfaction of performance obligations, determining the |
Revenue recognition and Market development cost | Market development costs Market development costs are charged to sales and marketing expense to the extent that the benefit is separable from the revenue transaction and the fair value of that benefit is determinable. To the extent that such costs either do not provide a separable benefit, or the fair value of the benefit cannot be reliably estimated, such amounts are recorded as a reduction of revenue. |
Research and Development costs | Research and development costs Research and development costs are expensed as they are incurred, with the exception of certain software development costs principally related to software coding, designing system interfaces and installation, and testing of the software, that we capitalize once technological feasibility is reached. We follow the cost reduction method of accounting for certain agreements, including government research and development funding, whereby the benefit of the funding is recognized as a reduction in the cost of the related expenditure when certain criteria stipulated under the terms of those funding agreements have been met, and there is reasonable assurance the research and development funding will be received. |
Warranty costs | Warranty costs Warranty costs are accrued upon the recognition of related revenue, based on our best estimates, with reference to past and expected future experience. Warranty obligations are included in accounts payable and accrued liabilities in our consolidated balance sheet. |
Royalty costs | Royalty costs We have intellectual property license agreements which generally require us to make royalty payments based on a combination of fixed fees and percentage of the revenue generated by sales of products incorporating the licensed technology. We recognize royalty obligations in accordance with the terms of the respective royalty agreements. Royalty costs are recorded as a component of cost of goods sold in the period when incurred. Where agreements are not in place, we recognize our current best estimate of the royalty obligation in cost of goods sold, accrued liabilities and long-term liabilities. We base our estimate on the smallest salable unit (“SSU”) principle (i.e., the principle that any royalty obligations should be no more than a portion of the profits for a component within the product that implements the patented technology) as the appropriate methodology for determining FRAND standard essential patent (“SEP”) royalties. Using this principle, the royalty accrual on our products is based on the value of the patented technology in the chipset, representing the SSU that implements the technology. |
Market development cost | Revenue recognition Product revenue includes sales from embedded cellular modules, short range and GNSS wireless modules, intelligent routers and gateways, asset tracking and vertical market smart devices, antennas and accessories, and Smart SIMs. Recurring and other services revenue includes sales from cloud services, cellular connectivity services, managed connectivity and application services, software licenses, technical support services, extended warranty services, solution design and consulting services. We recognize revenues when we satisfy performance obligations by transferring the control of promised products or services to customers. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer. Recurring and other services revenue is recognized over time as the service is rendered or at a point in time upon completion of a service. Our customer contracts can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of allowances for returns and any taxes collected from customers. Our products are generally highly dependent on, and interrelated with, the underlying firmware and cannot function without the firmware. In these cases, the hardware and the firmware are accounted for as a single performance obligation and revenue is recognized at the point in time when control is transferred to resellers and distributors, OEMs, or directly to end customers. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the amount of incentives or credits to be provided to customers and reduce revenue recognized. The variable consideration is included in the transaction price to the extent that a significant reversal in the amount of cumulative revenue recognized is not expected to occur when the uncertainty associated with the variable consideration is subsequently resolved. The expected costs associated with assurance-type warranty are recognized as expense when products are sold. Warranty service that is in addition to the assurance that the product complies with agreed upon specifications is a separate performance obligation; its revenue is recognized ratably over the service period. Cloud and connectivity services are provided on either a subscription or consumption basis. Revenue related to cloud and connectivity services provided on a subscription basis is recognized ratably over the contract period. Revenue related to cloud and connectivity services provided on a consumption basis is recognized based on the customer utilization of such resources. Revenues from SIM activation and initial application setup are deferred and recognized over the estimated customer life on a straight-line basis. Licenses for on-premise software provide the customer with a right to use the software as it exists when made available to the customer. Revenue from distinct on-premise licenses are recognized upfront at the point in time when the software is made available to the customer. Revenue from software maintenance, unspecified upgrades and technical support contracts are recognized over the period such items are delivered or services are provided. Technical support contracts extending beyond the current period are deferred and revenue is recognized over the applicable earning period. Revenue from solution design and consulting services are recognized as services are being provided. Contract acquisition and fulfillment costs We recognize an asset for the incremental costs of obtaining or fulfilling a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive bonuses and initial setup costs of managed IoT services meet the requirements to be capitalized. We applied a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The incremental costs of obtaining or fulfilling a contract with a customer are deferred and amortized over the estimated life of the customer relationship. We classify these deferred contract costs as current or non-current based on the timing of when we expect to recognize the expense. The current and non-current portions of deferred contract costs are included in Prepaids and other current assets and Other assets respectively in our consolidated balance sheets. Significant judgment We determine the transaction price of a customer contract by multiplying the unit price of a good or service with the committed order volume or service period. Certain customers may receive cash-based incentives or credits, which are accounted for as variable consideration. We estimate the expected amount to be provided to customers and exclude it from the transaction price. Sales credits are included in Accounts payable and accrued liabilities in our consolidated balance sheets. Our customer contracts can include various combinations of products and services. When a customer contract includes multiple performance obligations, we allocate the transaction price to each performance obligation on a relative standalone selling price basis. We generally determine standalone selling prices based on the price charged to customers or a combination of expected cost, plus a margin and residual methods. Product revenue is recognized at a point in time when a good is shipped or delivered to the customer as it represents the transfer of control of the promised good to a customer. Cloud, connectivity, and managed service revenues are recognized over time as the customer simultaneously receives and consumes the benefits provided by our performance as we perform. Other service revenue is recognized at a point in time upon completion of a service. Contract Balances Receivables - We recognize a right to consideration as a receivable when only the passage of time is required before payment of that consideration is due. Contract Assets - We recognize a right to consideration in exchange for goods or service that we have transferred to a customer as contract assets. Contract assets are comprised mainly of accrued revenue related to monthly IoT service subscriptions, which may include connectivity, cloud applications, and managed services. Contract assets are included in Accounts receivable in our consolidated balance sheet. Deferred Revenue - We recognize an obligation to transfer goods or services to a customer for which we have received consideration from the customer as deferred revenue. Deferred revenue consists of advance payments and billings in excess of revenue recognized, which includes support, extended warranty, cloud application services, and activation fees. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. |
Income taxes | Income taxes Income taxes are accounted for using the asset and liability method. Deferred income tax assets and liabilities are based on temporary differences (differences between the accounting basis and the tax basis of the assets and liabilities), non-capital loss, capital loss, and tax credits carry-forwards are measured using the enacted tax rates and laws expected to apply when these differences reverse. Deferred tax benefits, including non-capital loss, capital loss, and tax credits carry-forwards, are recognized to the extent that realization of such benefits is considered more likely than not. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that enactment occurs. We include interest and penalties related to income taxes, including unrecognized tax benefits, in Income tax expense. Liabilities for uncertain tax positions are recorded based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable and deferred taxes in the period in which the facts that give rise to a revision become known. We recognize the tax effects related to share-based payments at settlement or expiration in Income tax expense . |
Stock-based compensation and other stock-based payments | Stock-based compensation and other stock-based payments Stock options and restricted share units granted to the Company’s key officers, directors and employees are accounted for using the fair value-based method. Under this method, compensation cost for stock options is measured at fair value at the date of grant using the Black-Scholes valuation model and is expensed over the awards' vesting period using the straight-line method. Any consideration paid by plan participants on the exercise of stock options or the purchase of shares is credited to common stock together with any related stock-based compensation expense. Compensation cost for restricted share units is measured at fair value at the date of grant which is the market price of the underlying security and is expensed over the awards' vesting period using the straight-line method. Compensation cost for performance-based restricted share units is measured using a Monte Carlo valuation model. We account for forfeitures in compensation expense when they occur. |
Earnings (loss) per common share | Earnings (loss) per common share Basic earnings (loss) per share is computed by dividing net earnings (loss) for the period by the weighted average number of company common shares outstanding during the reporting period. Diluted earnings (loss) per share is computed using the treasury stock method. When the effect of options and other securities convertible into common shares is anti-dilutive, including when the Company has incurred a loss for the period, basic and diluted earnings (loss) per share are the same. We use net earnings (loss) from continuing operations as the control number in determining whether potential common shares are dilutive. Under the treasury stock method, the number of dilutive shares, if any, is determined by dividing the average market price of shares for the period into the net proceeds of in-the-money options. |
Translation of foreign currencies | Translation of foreign currencies Our functional and reporting currency is the U.S. dollar. Revenue and expense items denominated in foreign currencies are translated at exchange rates prevailing during the period. Monetary assets and liabilities denominated in foreign currencies are translated at the period-end exchange rates. Non-monetary assets and liabilities are translated at exchange rates in effect when the assets are acquired or the obligations are incurred. Foreign exchange gains and losses are reflected in Net earnings (loss) for the period. We have foreign subsidiaries that are considered self-contained and integrated within their foreign jurisdiction, and accordingly, use the respective local currency as their functional currency. The assets and liabilities of the foreign subsidiaries, including goodwill and fair value adjustments arising on acquisition, are translated at exchange rates at the balance sheet dates, equity is translated at historical rates, and revenue and expenses are translated at exchange rates prevailing during the period. The foreign exchange gains and losses arising from the translation are reported as a component of other comprehensive income (loss), as presented in note 23, Accumulated other comprehensive loss |
Cash and cash equivalents and restricted cash | Cash and cash equivalents and restricted cash Cash and cash equivalents include cash and short-term deposits with original maturities of three months or less from the date of purchase. Cash equivalents are recorded at cost. The carrying amounts approximate fair value due to the short-term maturities of these instruments. |
Allowance for expected credit losses | Allowance for expected credit losses Upon adoption of ASC 326 effective January 1, 2020, we maintain an allowance for lifetime expected credit losses that may result from our customer's inability to pay. Current and future economic conditions, historical information (including credit agency reports, if applicable), credit-worthiness, the line of business from which the customer accounts receivable arose, aging of receivables, known uncollectible accounts and changes in customer payment cycles are all considered when determining the expected credit losses related to accounts receivable. Amounts later determined and specifically identified to be uncollectible are charged against this allowance. |
Financing receivables | Financing receivables We lease certain hardware devices to a small number of hardware distributors under sales-type leases which have terms ranging from 10 months to 48 months and bear interest at 5%. We evaluate the credit quality of our financing receivables on an ongoing basis utilizing an aging of the accounts and write-offs, customer collection experience, the customer’s financial condition, known risk characteristics impacting the respective customer base, and other available economic conditions, to determine the appropriate allowance. |
Derivatives | Derivatives Derivatives, such as foreign currency forward contracts, may be used to hedge the foreign exchange risk on cash flows from commitments denominated in a foreign currency. Derivatives are recorded in Accounts receivable or Accounts payable and accrued liabilities and measured at fair value at each balance sheet date. Any resulting gains and losses from changes in the fair value are recorded in Foreign exchange gain (loss) . |
Inventories | Inventories Inventories consist of electronic components and finished goods and are valued at the lower of cost or estimable realizable value, determined on a first-in-first-out basis. Cost is defined as all costs that relate to bringing the inventory to its present condition and location under normal operating conditions. We review the components of our inventory and our inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances and new product introductions that vary from current expectations. We believe that the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory. If customer demands for our inventory are substantially less than our estimates, additional inventory write-downs may be required. |
Property and equipment | Property and equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years Research and development equipment related amortization is included in Research and development expense. Tooling, production, monitoring and certain network equipment related amortization is included in Cost of goods sold . All other amortization is included in Amortization expense. Leasehold improvements and leased vehicles are amortized on a straight-line basis over the lesser of their expected average service life or term of the lease. When we sell property and equipment, we net the historical cost less accumulated depreciation and amortization against the sale proceeds and include the difference in Other income (expense) . |
Intangible assets | Intangible assets The estimated useful life of intangible assets with definite lives is the period over which the assets are expected to contribute to our future cash flows. When determining the useful life, we consider the expected use of the asset, useful life of any related intangible asset, any legal, regulatory or contractual provisions that limit the useful life, any legal, regulatory, or contractual renewal or extension provisions without substantial costs or modifications to the existing terms and conditions, the effects of obsolescence, demand, competition and other economic factors, and the expected level of maintenance expenditures relative to the cost of the asset required to obtain future cash flows from the asset. We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three Intellectual property and customer relationships — 3-13 years Brand — over the estimated life Research and development — over the estimated life In-process research and development ("IPRD") is included in research and development and are intangible assets acquired as part of business combinations. Prior to their completion, IPRD are intangible assets with indefinite life and they are not amortized but subject to impairment test on an annual basis. Research and development related amortization is included in Research and development expense. All other amortization is included in Amortization expense. |
Leases | Leases At inception of a contract, we apply judgment in assessing whether a contract is or contains a lease. This assessment involves determining whether we have control over the identified asset for a period of time in exchange for consideration. Operating leases are included in Operating lease right-of-use ("ROU") assets, Accounts payable and accrued liabilities , and Operating lease liabilities in our consolidated balance sheets. Finance leases are included in Property and equipment, Accounts payable and accrued liabilities, and Long-term obligations in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease right-of-use assets and liabilities at commencement date based on the present value of lease payments over the lease term. We use the incremental borrowing rate as the discount rate for leases as the rates implicit in our leases are not readily determinable. Our incremental borrowing rate is estimated to approximate the interest on a collateralized basis with similar terms and payments and in economic environments where the leased asset is located. The operating lease ROU asset also includes any prepaid lease payments, initial direct costs and lease incentives. Our lease terms include non-cancelable periods and include options to renew the lease when it is reasonably certain that we will exercise that option. Operating lease cost for lease payments is recognized on a straight-line basis over the term of the lease. Our lease agreements have lease and non-lease components, which we have elected to account for as a single lease cost. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an acquired business over the fair value assigned to assets acquired and liabilities assumed in a business combination. We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination. Goodwill has an indefinite life, is not amortized, and is subject to an annual impairment test, on October 1 of every year, at the reporting unit level. Goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. These events or circumstances could include an adverse change in business climate, legal factors, operating performance indicators, competition or sale or disposition of a significant portion of a reporting unit. The goodwill impairment test compares the fair value of the reporting unit to its carrying amount, which includes the goodwill. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not to be impaired. If the carrying amount |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets, including property and equipment, and intangible assets other than goodwill, are assessed for potential impairment when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. An impairment loss is recognized when the carrying amount of the long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Any required impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value and is recorded as a reduction in the carrying value of the related asset and a charge to operating results. Intangible assets with indefinite lives are tested annually for impairment and in interim periods if certain events occur indicating that the carrying value of the intangible assets may be impaired. We did not identify any indicators of impairment for the year ended December 31, 2020. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) includes net earnings (loss) as well as changes in equity from other non-owner sources. The other changes in equity included in comprehensive income (loss) are comprised of foreign currency cumulative translation adjustments. |
Investment tax credits | Investment tax credits In Canada and the United States, investment tax credits are accounted for using the flow-through method whereby such credits are accounted for as a reduction of income tax expense in the period in which the credit arises. In France, the investment tax credits are reported as a reduction of cost as the credits are refundable irrespective of taxable income. |
Comparative figures | Comparative figures Certain figures presented in the consolidated financial statements have been reclassified to conform to the current year presentation. |
Discontinued Operations | Discontinued Operations We report a disposal of a component or a group of components as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect of the Company's operations and financial results when the components meet the criteria to be classified as held for sale. At the time an operation qualifies for held-for-sale accounting, the operation is evaluated to determine whether or not its carrying amount exceeds its fair value less cost to sell. Any loss as a result of carrying amounts in excess of fair value less cost to sell is recorded in the period the operation qualifies for held-for-sale accounting. Assets, once classified as held for sale, are not subject to depreciation or amortization, and both the assets and any liabilities directly associated with the assets held for sale are classified as current in the Company’s consolidated balance sheets. When a portion of a reporting unit that constitutes a business is disposed of, goodwill associated with that business is included in the carrying amount of the business in determining the gain or loss on disposal. The amount of goodwill is based on the relative fair values of the business to be disposed of and the portion of the reporting unit that will be retained. Management judgment is required to (i) assess the criteria required to qualify for held-for-sale accounting and (ii) estimate fair value. Our automotive business is presented as discontinued operations for all periods and as assets or liabilities held for sale for the year ended December 31, 2019. Our consolidated statements of cash flows include discontinued operations. See note 5, Disposition of Automotive Business . Supplemental cash flow information relating to discontinued operations is disclosed separately in the note disclosure. |
Business Combination | Business Combination We account for our business combinations using the acquisition method. Under this method, estimates we make to determine the fair values of acquired assets and liabilities assumed include judgments in our determinations of acquired intangible assets and assessment of the fair value of existing property and equipment. Assumed liabilities can include litigation and other contingency reserves existing at the time of the acquisition. Goodwill is recognized as of the acquisition date as the excess of the fair value of consideration transferred over the estimated fair values of net identifiable assets acquired and liabilities assumed at their acquisition date. Acquisition related expenses are separately recognized from business combination and are expensed as incurred. When establishing fair values, we make significant estimates and assumptions, especially with respect to intangible assets. Intangible assets acquired and recorded by us may include patents, intellectual property, customer relationships, brand, backlog and in-process research and development. Estimates include but are not limited to the forecasting of future cash flows and discount rates. From time to time, we may engage third-party firms to assist us in determining the fair value of assets and liabilities assumed. Our estimates of fair values are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. As a result, actual results may differ from estimates impacting our earnings. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of amortization of the entity's property and equipment on straight-line basis over the estimated economic lives | We amortize our property and equipment on a straight-line basis over the following estimated economic lives: Furniture and fixtures 3-5 years Research and development equipment 3-10 years Production equipment 2-7 years Tooling 1.5-3 years Computer equipment 1-5 years Software 1-5 years Office equipment 3-5 years Monitoring equipment 3-5 years Network equipment 3-7 years |
Schedule of the entity's amortization of intangible assets on a straight-line basis over the specified periods | We amortize our intangible assets on a straight-line basis over the following specific periods: Patents and trademarks — 3-5 years Licenses — over the shorter of the term of the license or an estimate of their useful life, ranging from three Intellectual property and customer relationships — 3-13 years Brand — over the estimated life Research and development — over the estimated life |
RECENTLY IMPLEMENTED ACCOUNTI_2
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Allocation of Cumulative Effect Of Accounting Change | The cumulative effect is allocated between continuing and discontinued operations as follows: Effect of adoption of ASC 326 Amount Continuing operations $ 917 Discontinued operations (138) $ 779 |
ACQUISITIONS AND DISPOSALS (Tab
ACQUISITIONS AND DISPOSALS (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combinations [Abstract] | ||
Allocation of Purchase Price | The following table summarizes the final values assigned to the assets acquired at the acquisition date: Amount Assets acquired Cash $ 2,712 Net working capital (640) Deferred revenue (914) Identifiable intangible assets 16,064 Goodwill 8,699 Deferred income tax liability (4,819) Fair value of net assets acquired $ 21,102 The following table summarizes the preliminary values assigned to the assets acquired at the acquisition date: Amount Assets acquired Cash $ 218 Net working capital (277) Tangible assets 3 Deferred revenue (5) Identifiable intangible assets 1,853 Goodwill 2,377 Deferred income tax liability (483) Fair value of net assets acquired $ 3,686 | |
Components of the Identifiable Intangible Assets Acquired | The following table provides the components of the identifiable intangible assets acquired that are subject to amortization: Estimated useful life Amount Customer relationships 10 years $ 14,646 Brand 5 years 1,418 $ 16,064 The following table provides the components of the preliminary identifiable intangible assets acquired that are subject to amortization: Estimated Amount Customer relationships 10 years $ 1,542 Brand 5 years 311 $ 1,853 | |
Schedule of Disposal of Business | The gain on sale of the Automotive Business consists of the following: Amount Total gross proceeds $ 165,000 Transaction costs (4,011) Working capital adjustment (11,122) Net proceeds 149,867 Net assets disposed (including cash sold of $5,711) (122,730) Gain on disposal before income taxes 27,137 Income tax expense (11,914) Gain on disposal, net of taxes $ 15,223 The assets and liabilities held for sale were as follows: November 18, 2020 December 31, 2019 Cash and cash equivalents $ 5,711 $ 4,290 Accounts receivable 64,885 36,941 Inventories 11,521 17,957 Prepaids and other 289 8,398 Property and equipment, net 12,439 12,347 Operating lease right-of-use assets — 143 Goodwill 54,497 53,214 Deferred income taxes 488 317 Assets held for sale $ 149,830 $ 133,607 Accounts payable and accrued liabilities $ 25,877 $ 23,960 Deferred revenue 794 1,420 Long term obligations 429 367 Liabilities held for sale $ 27,100 $ 25,747 Classification: November 18, 2020 December 31, 2019 Current assets held for sale $ 149,830 $ 67,586 Long-term assets held for sale — 66,021 Assets held for sale $ 149,830 $ 133,607 Current liabilities held for sale $ 27,100 $ 25,380 Long-term liabilities held for sale — 367 Liabilities held for sale $ 27,100 $ 25,747 The results related to the Automotive business have been presented as discontinued operations in the consolidated statements of operations and comprehensive loss and were as follows: 2020 2019 Revenue $ 196,609 $ 166,237 Cost of sales 169,108 143,733 Gross margin 27,501 22,504 Expenses 19,878 16,337 Gain on sale of Automotive Business (27,137) — Earnings before income taxes 34,760 6,167 Income tax expense on gain of sale of Automotive Business (11,914) — Income tax expense (2,036) (2,042) Net earnings from discontinued operations $ 20,810 $ 4,125 The cash flows related to the Automotive business included in the consolidated statements of cash flows were as follows: 2020 2019 Cash flows provided by (used in) discontinued operations Net cash provided by (used in) operating activities $ (2,919) $ 27,395 Net cash used in investing activities (1) (1,277) (3,220) Net cash provided by (used in) discontinued operations $ (4,196) $ 24,175 (1) Net cash used in investing activities does not include proceeds from sale of the Automotive Business. |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | REVENUE BY TYPE 2020 2019 Revenue Product $ 332,544 $ 449,063 Recurring and other services 116,044 98,213 $ 448,588 $ 547,276 |
Schedule of revenue by geographical region | REVENUE BY GEOGRAPHICAL REGION 2020 2019 Americas $ 199,472 $ 235,896 Europe, Middle East and Africa 76,500 85,243 Asia-Pacific 172,616 226,137 $ 448,588 $ 547,276 |
Schedule of property and equipment by geographical region | PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION 2020 2019 Americas $ 23,357 $ 19,075 Europe, Middle East and Africa 5,237 5,212 Asia-Pacific 2,818 3,290 $ 31,412 $ 27,577 |
RESEARCH AND DEVELOPMENT (Table
RESEARCH AND DEVELOPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Research and Development [Abstract] | |
Schedule of components of research and development costs | The components of research and development costs consist of the following: 2020 2019 Gross research and development $ 82,320 $ 79,014 Government tax credits (291) (253) $ 82,029 $ 78,761 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table provides the activity in the restructuring liability: 2020 2019 Balance, beginning of period $ 8,655 $ 2,486 Reclassification from long-term obligations — 1,617 Expensed - continuing operations 8,740 26,262 Expensed - discontinued operations 1,741 1,898 Disbursements (13,475) (23,424) Foreign exchange 89 (184) $ 5,750 $ 8,655 Classification: Accounts payable and accrued liabilities (note 21) 5,750 8,655 $ 5,750 $ 8,655 By restructuring initiative: April 2019 1,254 8,655 Q3 2020 4,496 — $ 5,750 $ 8,655 |
OTHER EXPENSE (Tables)
OTHER EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other income (expense) | The components of other income (expense) for the years ended December 31 were as follows: 2020 2019 Interest income $ 131 $ 429 Interest expense (818) (269) Discount fees (note 25(d)) (414) (347) Financing costs (695) — Other (231) (120) $ (2,027) $ (307) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of earnings (loss) before income taxes | The components of earnings (loss) before income taxes consist of the following: 2020 2019 Continuing operations Canadian $ (24,872) $ (23,451) Foreign (57,188) (42,334) $ (82,060) $ (65,785) |
Schedule of income tax expense (recovery) | The income tax expense (recovery) consists of: 2020 2019 Canadian: Current $ (8,349) $ 126 Deferred — 8,706 $ (8,349) $ 8,832 Foreign: Current $ (2,410) $ 41 Deferred (1,150) 5 $ (3,560) $ 46 Total: Current $ (10,759) $ 167 Deferred (1,150) 8,711 $ (11,909) $ 8,878 |
Schedule of reconciliation of income taxes calculated at the statutory rate to the actual income tax provision | The reconciliation of income taxes calculated at the statutory rate to the actual income tax provision for the years ended December 31 was as follows: 2020 2019 Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2019 -26.99%) $ (22,148) $ (17,755) Increase (decrease) in income taxes for: Permanent and other differences 1,353 2,007 Investment tax credits (2,396) (3,494) Foreign exchange and tax rates differential (7,434) 976 Change in valuation allowance 20,221 34,230 Stock-based compensation expense 894 1,263 Change in estimate (2,399) (8,349) Income tax expense (recovery) $ (11,909) $ 8,878 |
Schedule of tax effects of temporary differences that give rise to significant future tax assets and future tax liabilities | The tax effects of temporary differences that give rise to significant deferred tax assets and deferred tax liabilities were as follows at December 31: 2020 2019 Deferred income tax assets (liabilities) Property and equipment $ (4,801) $ (3,515) Non capital loss carry-forwards 114,744 101,340 Capital loss carry-forwards 2,160 3,284 Scientific research and development expenses and credits 28,932 25,437 Reserves and other 24,533 19,777 Investments (1,309) (1,106) Acquired intangibles (9,468) (6,591) Lease liabilities 4,219 6,144 159,010 144,770 Valuation allowance 168,133 147,912 $ (9,123) $ (3,142) 2020 2019 Classification: Assets Non-current $ 1,135 $ 1,779 Liabilities Non-current (10,258) (4,921) $ (9,123) $ (3,142) |
Schedule of reconciliation of the total amounts of unrecognized tax benefits | Below is a reconciliation of the total amounts of unrecognized tax benefits for the years ended December 31: 2020 2019 Unrecognized tax benefits, beginning of year $ 4,628 $ 4,482 Increases — tax positions taken in prior periods 70 49 Increases — tax positions taken in current period — — Settlements and lapses of statute of limitations (224) 97 Unrecognized tax benefits, end of year $ 4,474 $ 4,628 |
Schedule Of Government Subsidies By Income Statement Location | 2020 Cost of sales $ 180 Sales and marketing 1,588 Research and development 4,186 Administration 1,298 $ 7,252 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Stock-based compensation expense: 2020 2019 Cost of goods sold $ 319 $ 167 Sales and marketing 5,241 3,644 Research and development 4,014 2,752 Administration 8,379 5,988 Continuing operations $ 17,953 $ 12,551 Discontinued operations 1,987 379 19,940 12,930 Stock option plan 2,361 2,890 Restricted stock plan 17,579 10,040 $ 19,940 $ 12,930 |
Schedule of fair value of options estimated on the date of grant using the Black-Scholes option pricing model | The fair value of stock options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: 2020 2019 Risk-free interest rate 0.31 % 2.03 % Annual dividends per share Nil Nil Expected stock price volatility 53 % 54 % Expected option life (in years) 4.0 4.0 Average fair value of options granted (in dollars) $5.26 $5.38 |
Schedule of stock option activity | The following table presents stock option activity for the years ended December 31: Number of Options Weighted Weighted Aggregate Outstanding $ In Years $ Outstanding, December 31, 2018 1,378,348 19.64 2.8 822 Granted 462,937 12.34 Exercised (47,231) 10.43 80 Forfeited (205,911) 20.31 Outstanding, December 31, 2019 1,588,143 18.14 2.6 30 Granted 289,518 13.01 Exercised (178,223) 11.36 497 Forfeited (338,327) 21.95 Outstanding, December 31, 2020 1,361,111 17.27 2.4 1,399 |
Schedule of stock options outstanding and exercisable | The following table summarizes the stock options outstanding and exercisable at December 31, 2020: Options Outstanding Options Exercisable Range of Number Weighted Average Remaining Option Life Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Exercise Prices Outstanding (years) $ Exercisable $ $8.46 - $12.73 258,201 2.5 11.40 139,893 11.42 $12.74 - $13.38 273,330 3.8 12.99 69,333 13.03 $13.39 - $16.23 269,416 3.3 14.74 101,628 15.93 $16.24 - $25.15 299,304 1.4 21.09 265,989 21.43 $25.16 - $25.82 260,860 1.1 25.81 249,913 25.81 1,361,111 2.4 17.27 826,756 19.68 |
Schedule of restricted stock unit activity | The following table summarizes the RSU activity for the years ended December 31: Number of Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate RSUs $ In years $ Outstanding, December 31, 2018 1,046,275 19.24 2.6 13,289 Granted 1,222,131 12.44 Vested / settled (333,865) 18.22 4,607 Forfeited (118,782) 15.20 Outstanding, December 31, 2019 1,815,759 15.42 2.3 17,310 Granted 2,865,042 12.80 Vested / settled (586,343) 16.30 6,569 Forfeited (303,175) 12.83 Outstanding, December 31, 2020 3,791,283 13.61 2.0 55,242 Outstanding – vested and not settled 168,028 Outstanding – unvested 3,623,255 Outstanding, December 31, 2020 3,791,283 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation between basic and diluted earnings (loss) per share | The following table provides the reconciliation between basic and diluted earnings (loss) per share: 2020 2019 Net earnings (loss) Net loss from continuing operations $ (70,151) $ (74,663) Net earnings from discontinued operations 20,810 4,125 $ (49,341) $ (70,538) Weighted average shares used in computation of: Basic 36,393 36,166 Diluted 36,393 36,166 Basic and diluted net earnings (loss) per share (in dollars): Continuing operations $ (1.93) $ (2.06) Discontinued operations 0.57 0.11 $ (1.36) $ (1.95) |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of components of accounts receivable | The components of accounts receivable at December 31 were as follows: 2020 2019 Trade receivables $ 53,213 $ 81,612 Less: allowance for doubtful accounts (3,631) (2,975) 49,582 78,637 Sales taxes receivable 4,419 3,341 R&D tax credits 3,350 3,816 Financing receivables 342 959 Contract assets (note 2(c)) 2,132 1,688 Other receivables 8,750 6,050 $ 68,575 $ 94,491 |
Schedule of movement in the allowance for doubtful accounts | The movement in the allowance for expected credit losses during the years ended December 31 was as follows: 2020 2019 Balance, beginning of year $ 2,975 $ 2,968 Effect of adoption of ASC 326 (note 3) 917 3,892 Current period provision for expected credit losses 418 490 Write-offs charged against allowance for credit losses (792) (285) Recoveries of amounts previously written off 15 — Foreign exchange 98 (3) Assets held for sale — $ (195) $ 3,631 $ 2,975 |
CONTRACT BALANCES (Tables)
CONTRACT BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Balances | 2020 2019 Change Contract assets $ 2,132 $ 1,688 $ 444 Deferred revenue - current 9,862 9,190 672 Deferred revenue - noncurrent 7,863 8,078 (215) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories at December 31 were as follows: 2020 2019 Electronic components $ 19,468 $ 17,504 Finished goods 13,347 18,830 $ 32,815 $ 36,334 |
PREPAIDS AND OTHER (Tables)
PREPAIDS AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of components of prepaids and other | The components of prepaids and other at December 31 were as follows: 2020 2019 Inventory advances $ 1,434 $ 2,338 Insurance and licenses 873 292 Deposits 2,665 2,120 Contract acquisition and fulfillment costs 1,850 1,529 Other 5,111 4,579 $ 11,933 $ 10,858 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Schedule of components of property and equipment | The components of property and equipment at December 31 were as follows: 2020 Cost Accumulated Net book Furniture and fixtures $ 3,467 $ 2,163 $ 1,304 Research and development equipment 33,583 21,770 11,813 Production equipment and tooling 31,999 23,466 8,533 Computer equipment 5,608 4,610 998 Software 7,608 5,838 1,770 Leasehold improvements 7,719 5,940 1,779 Leased vehicles 392 390 2 Office equipment 1,172 1,045 127 Monitoring equipment 6,141 2,455 3,686 Network equipment 6,417 5,017 1,400 $ 104,106 $ 72,694 $ 31,412 | 2019 Cost Accumulated Net book Furniture and fixtures $ 3,189 $ 1,948 $ 1,241 Research and development equipment 31,085 22,623 8,462 Production equipment and tooling 28,665 20,052 8,613 Computer equipment 9,274 7,748 1,526 Software 9,854 7,727 2,127 Leasehold improvements 7,319 5,124 2,195 Leased vehicles 584 560 24 Office equipment 1,184 996 188 Monitoring equipment 1,852 1,117 735 Network equipment 6,780 4,314 2,466 $ 99,786 $ 72,209 $ 27,577 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Schedule of components of intangible assets | The components of intangible assets at December 31 were as follows: 2020 Cost Accumulated Net book Patents and trademarks $ 16,300 $ 14,649 $ 1,651 Licenses 57,480 53,153 4,327 Intellectual property 28,916 26,095 2,821 Customer relationships 140,892 83,858 57,034 Brand 17,070 5,631 11,439 Research and development 11,158 10,349 809 $ 271,816 $ 193,735 $ 78,081 | 2019 Cost Accumulated Net book Patents and trademarks $ 15,416 $ 13,540 $ 1,876 Licenses 52,517 48,912 3,605 Intellectual property 27,824 22,326 5,498 Customer relationships 116,576 69,883 46,693 Brand 14,613 3,727 10,886 Research and development 10,274 8,760 1,514 $ 237,220 $ 167,148 $ 70,072 |
Schedule of estimated annual amortization expense | Estimated annual amortization expense for the next 5 years ended December 31 is as follows: Amount 2021 15,691 2022 11,882 2023 11,242 2024 10,399 2025 8,779 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the years ended December 31 were as follows: 2020 2019 Balance at beginning of year $ 154,381 $ 211,074 Goodwill allocated to discontinued operations (note 5(c)) — (53,214) Adjusted balance at beginning of year 154,381 157,860 Goodwill acquired (note 5(a) and 5(b)) 11,076 — Foreign currency translation adjustments 10,088 (3,479) $ 175,545 $ 154,381 IoT Solutions $ 138,630 $ 121,429 Embedded Broadband 36,915 32,952 $ 175,545 $ 154,381 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Cost and Supplemental Cash Flow Information | The components of lease expenses were as follows: 2020 2019 Operating lease cost $ 8,616 $ 9,610 Finance lease cost 130 345 Short-term lease cost 2,020 1,961 ROU asset impairment — 877 10,766 12,793 Sublease income (1,534) (1,032) Total lease expenses $ 9,232 $ 11,761 Supplemental cash flow information related to leases was as follows: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,152 $ 7,860 Financing cash flow from finance leases 405 535 New lease assets obtained in exchange for lease liabilities (non-cash): Operating leases $ 678 $ 6,782 Financing leases — 38 |
Supplemental Balance Sheet Information | Supplemental Balance Sheet information related to leases was as follows: 2020 2019 Operating Leases Operating lease right-of-use assets $ 20,068 $ 25,466 Accounts payable and accrued liabilities $ 7,376 $ 5,793 Operating lease liabilities 17,054 25,154 Total operating lease liabilities $ 24,430 $ 30,947 Finance Leases Property and equipment, gross $ 1,111 $ 1,362 Accumulated depreciation (1,084) (1,192) Property and equipment, net $ 27 $ 170 Accounts payable and accrued liabilities $ 171 $ 379 Long-term obligations 8 188 Total finance lease liabilities $ 179 $ 567 Weighted Average Remaining Lease Term Operating leases 6.9 7.1 Finance leases 1.2 1.6 Weighted Average Discount Rate Operating leases 2.6 % 2.6 % Finance leases 3.8 % 3.5 % |
Maturity of Operating Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2021 $ 7,447 $ 181 $ 7,628 2022 2,063 14 2,077 2023 3,190 14 3,204 2024 2,268 1 2,269 2025 2,002 — 2,002 Thereafter 10,254 — 10,254 Total lease payments 27,224 210 27,434 Less: imputed interest (2,794) (31) (2,825) Total lease liabilities $ 24,430 $ 179 $ 24,609 |
Maturities of Finance Lease Liabilities | Maturities of lease liabilities were as follows: Operating Leases Finance Leases Total 2021 $ 7,447 $ 181 $ 7,628 2022 2,063 14 2,077 2023 3,190 14 3,204 2024 2,268 1 2,269 2025 2,002 — 2,002 Thereafter 10,254 — 10,254 Total lease payments 27,224 210 27,434 Less: imputed interest (2,794) (31) (2,825) Total lease liabilities $ 24,430 $ 179 $ 24,609 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of components of accounts payable and accrued liabilities | The components of accounts payable and accrued liabilities at December 31 were as follows: 2020 2019 Trade payables and accruals $ 67,250 $ 55,796 Inventory commitment reserve 475 767 Accrued royalties 10,698 11,870 Accrued payroll and related liabilities 21,244 13,825 Professional services 5,329 4,415 Taxes payable (including sales taxes) 4,979 4,847 Product warranties (note 27(a)(iii)) 5,804 6,743 Sales credits 10,732 8,814 Restructuring liability (note 8) 5,750 8,655 Operating lease liabilities (note 20) 7,376 5,793 Finance lease liabilities (note 20) 171 379 Other 22,330 27,692 $ 162,138 $ 149,596 |
LONG-TERM OBLIGATIONS (Tables)
LONG-TERM OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | |
Schedule of components of long-term obligations | The components of long-term obligations at December 31 were as follows: 2020 2019 Accrued royalties $ 33,218 $ 30,988 Deferred revenue 7,863 8,078 Finance lease liabilities (note 20) 8 188 Other 4,557 4,153 $ 45,646 $ 43,407 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of components of accumulated other comprehensive loss, net of taxes | The changes by component in accumulated other comprehensive loss, net of taxes, were as follows: 2020 2019 Balance, beginning of period $ (13,216) $ (9,146) Foreign currency translation adjustments 1,914 (3,241) Loss on long term intercompany balances 5,722 (829) Balance, end of period $ (5,580) $ (13,216) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | The following table summarizes supplemental cash flow information and non-cash activities: 2020 2019 Net income taxes paid $ 3,333 $ 616 Net Interest (received) paid 739 (202) Discount fees paid (note 25 (d)) 414 347 Non-cash property and equipment additions — 485 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows: 2020 2019 Cash and cash equivalents $ 160,560 $ 71,164 Restricted cash 10,864 3,629 Assets held for sale — 4,290 Total cash, cash equivalents, and $ 171,424 $ 79,083 As at December 31, 2020, $10,000 was held in escrow related to the divestiture of the Automotive Business and $100 is held in escrow related to certain vendor obligations. We collected $764 from trade receivables sold to CIBC under our Accounts Receivable Purchase Agreement which have not been remitted to CIBC as at December 31, 2020. See note 25(d). As at December 31, 2019, Assets held for sale |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of the changes in the liability for product warranties | 2020 2019 Balance, beginning of year $ 6,743 $ 7,914 Provisions 4,834 3,686 Expenditures (5,773) (2,673) Liability held for sale — (2,184) Balance, end of year $ 5,804 $ 6,743 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) - 12 months ended Dec. 31, 2020 | segment | employee |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of reportable segments | 2 | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Financing Receivables (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |
Interest rate | 5.00% |
Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Term | 10 months |
Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Term | 48 months |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Property and Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Research and development equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Research and development equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 10 years |
Production equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 2 years |
Production equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 7 years |
Tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year 6 months |
Tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 1 year |
Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Office equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Office equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Monitoring equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Monitoring equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 5 years |
Network equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 3 years |
Network equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated economic lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Intangible Assets Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Patents and trademarks | Minimum | |
Intangible assets | |
Estimated useful life | 3 years |
Patents and trademarks | Maximum | |
Intangible assets | |
Estimated useful life | 5 years |
Licenses | Minimum | |
Intangible assets | |
Estimated useful life | 3 years |
Licenses | Maximum | |
Intangible assets | |
Estimated useful life | 10 years |
Intellectual property and customer relationships | Minimum | |
Intangible assets | |
Estimated useful life | 3 years |
Intellectual property and customer relationships | Maximum | |
Intangible assets | |
Estimated useful life | 13 years |
RECENTLY IMPLEMENTED ACCOUNTI_3
RECENTLY IMPLEMENTED ACCOUNTING STANDARDS Narrative (Details) - USD ($) | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained deficit | $ (128,953,000) | $ (78,833,000) | ||
Total lease liabilities | 24,430,000 | 30,947,000 | ||
Operating lease right-of-use assets (note 20) | $ 20,068,000 | $ 25,466,000 | ||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained deficit | $ (779,000) | |||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Continuing operations | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained deficit | (917,000) | |||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Discontinued operations | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Retained deficit | $ 138,000 | |||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total lease liabilities | $ 31,500,000 | |||
Operating lease right-of-use assets (note 20) | 27,000,000 | |||
Deferred rent and exit cost | $ 4,500,000 |
ACQUISITIONS AND DISPOSALS - Ac
ACQUISITIONS AND DISPOSALS - Acquisition Narrative (Details) - USD ($) $ in Thousands | Dec. 15, 2020 | Jan. 07, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 175,545 | $ 154,381 | $ 157,860 | ||
M2M Group | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 21,102 | ||||
Cash consideration transfered | $ 19,587 | ||||
Equity interest acquired (in percent) | 100.00% | ||||
Retirement of certain obligation | $ 1,343 | ||||
Normal course working capital | 172 | ||||
Goodwill | $ 8,699 | ||||
M2M New Zealand | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 3,686 | ||||
Cash consideration transfered | $ 3,286 | ||||
Equity interest acquired (in percent) | 100.00% | ||||
Goodwill | $ 2,377 | ||||
Cash holdback | $ 400 |
ACQUISITIONS AND DISPOSALS - Pu
ACQUISITIONS AND DISPOSALS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 15, 2020 | Jan. 07, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 175,545 | $ 154,381 | $ 157,860 | ||
M2M Group | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 2,712 | ||||
Net working capital | (640) | ||||
Deferred revenue | (914) | ||||
Identifiable intangible assets | $ 1,853 | 16,064 | |||
Goodwill | 8,699 | ||||
Deferred income tax liability | (4,819) | ||||
Fair value of net assets acquired | $ 21,102 | ||||
M2M New Zealand | |||||
Business Acquisition [Line Items] | |||||
Cash | 218 | ||||
Net working capital | (277) | ||||
Tangible assets | 3 | ||||
Deferred revenue | (5) | ||||
Identifiable intangible assets | 1,853 | ||||
Goodwill | 2,377 | ||||
Deferred income tax liability | (483) | ||||
Fair value of net assets acquired | $ 3,686 |
ACQUISITIONS AND DISPOSALS - In
ACQUISITIONS AND DISPOSALS - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 15, 2020 | Jan. 07, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Estimated useful life | 6 years 2 months 12 days | ||
M2M Group | |||
Business Acquisition [Line Items] | |||
Amount | $ 1,853 | $ 16,064 | |
M2M Group | Customer relationships | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 10 years | 10 years | |
Amount | $ 1,542 | $ 14,646 | |
M2M Group | Brand | |||
Business Acquisition [Line Items] | |||
Estimated useful life | 5 years | 5 years | |
Amount | $ 311 | $ 1,418 |
ACQUISITIONS AND DISPOSALS - Di
ACQUISITIONS AND DISPOSALS - Disposal Narrative (Details) - Automotive Business - Discontinued Operations, Disposed of by Sale $ in Thousands | Nov. 18, 2020USD ($)employee |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash consideration received in business disposal | $ | $ 165,000 |
Cash consideration held in escrow | $ | $ 10,000 |
Number of employees transferred in disposal | 150 |
Mainland China | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of employees transferred in disposal | 120 |
Europe or Asia Pacific | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of employees transferred in disposal | 30 |
ACQUISITIONS AND DISPOSALS - Ga
ACQUISITIONS AND DISPOSALS - Gain on Disposal (Details) - USD ($) $ in Thousands | Nov. 18, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net proceeds | $ 144,156 | $ 500 | |
Gain on disposal, net of taxes | 27,137 | 0 | |
Discontinued Operations, Disposed of by Sale | Automotive Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total gross proceeds | $ 165,000 | ||
Transaction costs | (4,011) | ||
Working capital adjustment | (11,122) | ||
Net proceeds | 149,867 | ||
Net assets disposed (including cash sold of $5,711) | (122,730) | ||
Gain on disposal before income taxes | 27,137 | ||
Income tax expense | (11,914) | $ (11,914) | $ 0 |
Gain on disposal, net of taxes | $ 15,223 |
ACQUISITIONS AND DISPOSALS - As
ACQUISITIONS AND DISPOSALS - Assets and Liabilities Disposed (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Nov. 18, 2020 | Dec. 31, 2019 |
Disposal Group, Including Discontinued Operation, Unclassified Balance Sheet Disclosures [Abstract] | |||
Cash and cash equivalents | $ 0 | $ 4,290 | |
Assets held for sale | |||
Current assets held for sale | 0 | 67,586 | |
Long-term assets held for sale | 0 | 66,021 | |
Liabilities held for sale | |||
Current liabilities held for sale | 0 | 25,380 | |
Long-term liabilities held for sale | $ 0 | 367 | |
Discontinued Operations, Disposed of by Sale | Automotive Business | |||
Disposal Group, Including Discontinued Operation, Unclassified Balance Sheet Disclosures [Abstract] | |||
Cash and cash equivalents | $ 5,711 | 4,290 | |
Accounts receivable | 64,885 | 36,941 | |
Inventories | 11,521 | 17,957 | |
Prepaids and other | 289 | 8,398 | |
Property and equipment, net | 12,439 | 12,347 | |
Operating lease right-of-use assets | 0 | 143 | |
Goodwill | 54,497 | 53,214 | |
Deferred income taxes | 488 | 317 | |
Assets held for sale | 149,830 | 133,607 | |
Accounts payable and accrued liabilities | 25,877 | 23,960 | |
Deferred revenue | 794 | 1,420 | |
Long term obligations | 429 | 367 | |
Liabilities held for sale | 27,100 | 25,747 | |
Assets held for sale | |||
Current assets held for sale | 149,830 | 67,586 | |
Long-term assets held for sale | 0 | 66,021 | |
Assets held for sale | 149,830 | 133,607 | |
Liabilities held for sale | |||
Current liabilities held for sale | 27,100 | 25,380 | |
Long-term liabilities held for sale | 0 | 367 | |
Liabilities held for sale | $ 27,100 | $ 25,747 |
ACQUISITIONS AND DISPOSALS - _2
ACQUISITIONS AND DISPOSALS - Income Statement (Details) - Discontinued Operations, Disposed of by Sale - Automotive Business - USD ($) $ in Thousands | Nov. 18, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Consolidated statements of operations and comprehensive earnings (loss) | |||
Revenue | $ 196,609 | $ 166,237 | |
Cost of sales | 169,108 | 143,733 | |
Gross margin | 27,501 | 22,504 | |
Expenses | 19,878 | 16,337 | |
Gain on sale of Automotive Business | (27,137) | 0 | |
Earnings before income taxes | 34,760 | 6,167 | |
Income tax expense on gain of sale of Automotive Business | $ (11,914) | (11,914) | 0 |
Income tax expense | (2,036) | (2,042) | |
Net earnings from discontinued operations | 20,810 | 4,125 | |
Cash flows provided by (used in) discontinued operations | |||
Net cash provided by (used in) operating activities | (2,919) | 27,395 | |
Net cash used in investing activities(1) | (1,277) | (3,220) | |
Net cash provided by (used in) discontinued operations | $ (4,196) | $ 24,175 |
SEGMENTED INFORMATION Narrative
SEGMENTED INFORMATION Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2020segment | Dec. 31, 2020employee | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Number of Reportable Segments | 2 | 2 | |||
Customer Concentration Risk | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk (in percent) | 10.00% | 10.20% | |||
Number of customers | no | one |
SEGMENTED INFORMATION Schedule
SEGMENTED INFORMATION Schedule of revenue by type (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 448,588 | $ 547,276 |
Product | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 332,544 | 449,063 |
Recurring and other services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 116,044 | $ 98,213 |
SEGMENTED INFORMATION Schedul_2
SEGMENTED INFORMATION Schedule of revenue by geographical region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUE BY GEOGRAPHICAL REGION | ||
Revenue | $ 448,588 | $ 547,276 |
Americas | ||
REVENUE BY GEOGRAPHICAL REGION | ||
Revenue | 199,472 | 235,896 |
Europe, Middle East and Africa | ||
REVENUE BY GEOGRAPHICAL REGION | ||
Revenue | 76,500 | 85,243 |
Asia-Pacific | ||
REVENUE BY GEOGRAPHICAL REGION | ||
Revenue | $ 172,616 | $ 226,137 |
SEGMENTED INFORMATION Schedul_3
SEGMENTED INFORMATION Schedule of property and equipment by geographical region (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | $ 31,412 | $ 27,577 |
Americas | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | 23,357 | 19,075 |
Europe, Middle East and Africa | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | 5,237 | 5,212 |
Asia-Pacific | ||
PROPERTY AND EQUIPMENT BY GEOGRAPHICAL REGION | ||
Property and equipment | $ 2,818 | $ 3,290 |
RESEARCH AND DEVELOPMENT (Detai
RESEARCH AND DEVELOPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Research and Development [Abstract] | ||
Gross research and development | $ 82,320 | $ 79,014 |
Government tax credits | (291) | (253) |
Total | $ 82,029 | $ 78,761 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)employee | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Outstanding liabilities | $ 8,655 | $ 8,655 |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 8,655 | 2,486 |
Reclassification from long-term obligations | 0 | 1,617 |
Expensed - continuing operations | 8,740 | 26,262 |
Disbursements | (13,475) | (23,424) |
Foreign exchange | 89 | (184) |
Balance, end of period | 5,750 | 8,655 |
April 2019 | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 400 | 26,500 |
Outstanding liabilities | 8,655 | 8,655 |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 8,655 | |
Balance, end of period | $ 1,254 | 8,655 |
Previous Restructuring Initiatives | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1,700 | |
Q3 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of positions eliminated | employee | 120 | |
Severance Costs | $ 10,200 | |
Outstanding liabilities | 0 | 0 |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 0 | |
Balance, end of period | 4,496 | 0 |
Discontinued Operations, Disposed of by Sale | ||
Restructuring Reserve [Roll Forward] | ||
Expensed - continuing operations | 1,741 | 1,898 |
Discontinued Operations, Disposed of by Sale | Q3 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance Costs | 1,700 | |
Accounts payable and accrued liabilities (note 21) | ||
Restructuring Cost and Reserve [Line Items] | ||
Outstanding liabilities | 8,655 | 8,655 |
Restructuring Reserve [Roll Forward] | ||
Balance, beginning of period | 8,655 | |
Balance, end of period | 5,750 | $ 8,655 |
Accounts payable and accrued liabilities (note 21) | Q3 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||
Outstanding liabilities | 4,500 | |
Restructuring Reserve [Roll Forward] | ||
Balance, end of period | $ 4,500 |
OTHER EXPENSE (Details)
OTHER EXPENSE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 131 | $ 429 |
Interest expense | (818) | (269) |
Discount fees (note 25(d)) | (414) | (347) |
Financing costs | (695) | 0 |
Other | (231) | (120) |
Other expense | $ (2,027) | $ (307) |
INCOME TAXES - Schedule of comp
INCOME TAXES - Schedule of components of earnings (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Canadian | $ (24,872) | $ (23,451) |
Foreign | (57,188) | (42,334) |
Loss before income taxes | $ (82,060) | $ (65,785) |
INCOME TAXES - Schedule of inco
INCOME TAXES - Schedule of income tax expense (recovery) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Canadian: | ||
Current | $ (8,349) | $ 126 |
Deferred | 0 | 8,706 |
Total | (8,349) | 8,832 |
Foreign: | ||
Current | (2,410) | 41 |
Deferred | (1,150) | 5 |
Total | (3,560) | 46 |
Total: | ||
Current | (10,759) | 167 |
Deferred | (1,150) | 8,711 |
Total | $ (11,909) | $ 8,878 |
INCOME TAXES - Schedule of reco
INCOME TAXES - Schedule of reconciliation of income taxes calculated at the statutory rate to the actual income tax position (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of income taxes calculated at the statutory rate to the actual income tax provision | ||
Income tax expense (recovery) at Canadian statutory income tax rates of 26.99% (2019 -26.99%) | $ (22,148) | $ (17,755) |
Increase (decrease) in income taxes for: | ||
Permanent and other differences | 1,353 | 2,007 |
Investment tax credits | (2,396) | (3,494) |
Foreign exchange and tax rates differential | (7,434) | 976 |
Change in valuation allowance | 20,221 | 34,230 |
Stock-based compensation expense | 894 | 1,263 |
Change in estimate | (2,399) | (8,349) |
Total | $ (11,909) | $ 8,878 |
INCOME TAXES - Schedule of tax
INCOME TAXES - Schedule of tax effects of temporary differences that give rise to significant future tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets (liabilities) | ||
Property and equipment | $ (4,801) | $ (3,515) |
Non capital loss carry-forwards | 114,744 | 101,340 |
Capital loss carry-forwards | 2,160 | 3,284 |
Scientific research and development expenses and credits | 28,932 | 25,437 |
Reserves and other | 24,533 | 19,777 |
Investments | (1,309) | (1,106) |
Acquired intangibles | (9,468) | (6,591) |
Lease liabilities | 4,219 | 6,144 |
Future income tax assets ,Total | 159,010 | 144,770 |
Valuation allowance | 168,133 | 147,912 |
Deferred income tax assets (liabilities) | (9,123) | (3,142) |
Assets | ||
Non-current | 1,135 | 1,779 |
Liabilities | ||
Non-current | (10,258) | (4,921) |
Deferred income tax assets (liabilities) | $ (9,123) | $ (3,142) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Capital loss carry-forward | ||||
Valuation allowance | $ (168,133) | $ (147,912) | ||
Base amount limitation of net operating loss deduction | € | € 1,000 | |||
Limitation on net operating losses deduction as a percentage of taxable income (as a percent) | 50.00% | |||
Amount of taxable income over which the percentage limitation is applied | € | € 1,000 | |||
Unrecognized tax benefits | 4,474 | 4,628 | $ 4,482 | |
Unrecognized tax benefits that would impact effective tax rate | 559 | 447 | ||
Accruals of interest and penalties | 50 | 56 | ||
Estimated reduction over next 12 months | 833 | |||
Automotive Business | ||||
Capital loss carry-forward | ||||
Capital loss carry-forwards | 3,291 | |||
Cananda | ||||
Capital loss carry-forward | ||||
Capital loss carry-forwards | 8,626 | |||
Investment tax credits | Cananda | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 23,500 | |||
Investment tax credits | Canadian Provincial | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 10,724 | |||
R&D tax credit | Cananda | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 6,989 | |||
R&D tax credit | U.S. | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | $ 6,445 | |||
U.S. | Foreign subsidiaries | U.S. | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 78,406 | |||
U.S. | Foreign subsidiaries | U.S. | Indefinite-lived Intangible Assets | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 22,417 | |||
U.S. | Foreign subsidiaries | U.S. | Finite-Lived Intangible Assets | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 55,989 | |||
Sweden | Foreign subsidiaries | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 876 | |||
Norway | Foreign subsidiaries | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 25 | |||
Luxembourg | Foreign subsidiaries | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 90,874 | |||
Luxembourg | Foreign subsidiaries | Indefinite-lived Intangible Assets | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 38,763 | |||
Luxembourg | Foreign subsidiaries | Finite-Lived Intangible Assets | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 52,111 | |||
France | Foreign subsidiaries | France | ||||
Capital loss carry-forward | ||||
Net operating loss carry-forwards | 275,430 | |||
France | Foreign subsidiaries | R&D tax credit | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | 3,226 | |||
France | Foreign subsidiaries | Employment tax credit | ||||
Capital loss carry-forward | ||||
Tax credit carried forward | $ 119 |
INCOME TAXES - Schedule of re_2
INCOME TAXES - Schedule of reconciliation of the total amounts of unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of the total amounts of unrecognized tax benefits | ||
Unrecognized tax benefits, beginning of year | $ 4,628 | $ 4,482 |
Increases — tax positions taken in prior periods | 70 | 49 |
Increases — tax positions taken in current period | 0 | 0 |
Settlements and lapses of statute of limitations | (224) | 97 |
Unrecognized tax benefits, end of year | $ 4,474 | $ 4,628 |
INCOME TAXES - Government Grant
INCOME TAXES - Government Grants (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Canada Emergency Wage Subsidy | |
Disaggregation of Revenue [Line Items] | |
Government Grants | $ 6,332 |
COVID-19 Related Subsidies | |
Disaggregation of Revenue [Line Items] | |
Government Grants | 920 |
Grant | |
Disaggregation of Revenue [Line Items] | |
Government Grants | 7,252 |
Grant | Cost of goods sold | |
Disaggregation of Revenue [Line Items] | |
Government Grants | 180 |
Grant | Sales and marketing | |
Disaggregation of Revenue [Line Items] | |
Government Grants | 1,588 |
Grant | Research and development | |
Disaggregation of Revenue [Line Items] | |
Government Grants | 4,186 |
Grant | Administration | |
Disaggregation of Revenue [Line Items] | |
Government Grants | $ 1,298 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS Schedule of stock-based compensation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-based compensation expense: | ||
Stock-based compensation expense | $ 19,940 | $ 12,930 |
Continuing operations | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 17,953 | 12,551 |
Discontinued operations | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 1,987 | 379 |
Stock option plan | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 2,361 | 2,890 |
Restricted stock plan | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 17,579 | 10,040 |
Cost of goods sold | Continuing operations | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 319 | 167 |
Sales and marketing | Continuing operations | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 5,241 | 3,644 |
Research and development | Continuing operations | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | 4,014 | 2,752 |
Administration | Continuing operations | ||
Stock-based compensation expense: | ||
Stock-based compensation expense | $ 8,379 | $ 5,988 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS Stock option plan - Narrative (Details) $ in Thousands | 1 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | May 20, 2020 | Dec. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)planshares | Dec. 31, 2019USD ($) | May 21, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding stock maximum | 8.90% | |||||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | 4 years | ||||
Percentage of the award vesting at first anniversary | 25.00% | 25.00% | ||||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 2,763 | $ 2,763 | $ 4,548 | |||
Weighted average period for recognition of unrecognized stock-based compensation cost | 2 years 4 months 24 days | 2 years 7 months 6 days | ||||
Stock options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration term | 5 years | |||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding stock maximum | 8.10% | 8.90% | ||||
Unrecognized stock-based compensation cost (in dollars) | $ | $ 30,055 | $ 30,055 | $ 14,871 | |||
Weighted average period for recognition of unrecognized stock-based compensation cost | 1 year 9 months 18 days | 1 year 10 months 24 days | ||||
Stock option plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding stock maximum | 8.10% | 8.90% | ||||
Number of issued and outstanding common shares available for issue if the lesser of two alternatives | 7,000,000 | |||||
Common shares available for future allocation under the plan | 720,871 | 720,871 | ||||
Market Based Restricted Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of plans | plan | 2 | |||||
Treasury Based Restricted Stock Plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of outstanding stock maximum | 3.70% | 4.60% | ||||
Common shares available for future allocation under the plan | 341,142,000 | 341,142,000 | ||||
Units outstanding | 2,614,135 | 2,614,135 | ||||
Restricted stock plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Restricted stock plan | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 2 years | 3 years | ||||
Restricted Stock Plan 1 Year | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
U.S. | Market Based Restricted Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of plans | plan | 1 | |||||
Non-United States | Market Based Restricted Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of plans | plan | 1 | |||||
France | Restricted stock plan | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional tax holding period | 2 years |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS Schedule of fair value of share options assumptions used (Details) - Stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.31% | 2.03% |
Annual dividends per share | $ 0 | $ 0 |
Expected stock price volatility | 53.00% | 54.00% |
Expected option life (in years) | 4 years | 4 years |
Average fair value of options granted (in dollars) | $ 5.26 | $ 5.38 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS Schedule of stock option activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Outstanding at the beginning of the period (in shares) | 1,588,143 | 1,378,348 | |
Granted (in shares) | 289,518 | 462,937 | |
Exercised (in shares) | (178,223) | (47,231) | |
Forfeited (in shares) | (338,327) | (205,911) | |
Outstanding at the end of the period (in shares) | 1,361,111 | 1,588,143 | 1,378,348 |
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 18.14 | $ 19.64 | |
Granted (in dollars per share) | 13.01 | 12.34 | |
Exercised (in dollars per share) | 11.36 | 10.43 | |
Forfeited (in dollars per share) | 21.95 | 20.31 | |
Outstanding at the end of the period (in dollars per share) | $ 17.27 | $ 18.14 | $ 19.64 |
Weighted Average Remaining Contractual Life | |||
Outstanding at the beginning of the period | 2 years 4 months 24 days | 2 years 7 months 6 days | 2 years 9 months 18 days |
Outstanding at the end of the period | 2 years 4 months 24 days | 2 years 7 months 6 days | 2 years 9 months 18 days |
Aggregate Intrinsic Value | |||
Outstanding at the beginning of the period | $ 30 | $ 822 | |
Exercised | 497 | 80 | |
Outstanding at the end of the period | $ 1,399 | $ 30 | $ 822 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS Schedule of stock options outstanding and exercisable (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Options Outstanding | |
Number of Options | shares | 1,361,111 |
Weighted Average Remaining Option Life | 2 years 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 17.27 |
Options Exercisable | |
Number Of options Exercisable (in shares) | shares | 826,756 |
Weighted Average Exercise Price (in dollars per share) | $ 19.68 |
$8.46 - $12.73 | |
Stock options outstanding and exercisable | |
Exercise price range, lower range limit | 8.46 |
Exercise price range, upper range limit | $ 12.73 |
Options Outstanding | |
Number of Options | shares | 258,201 |
Weighted Average Remaining Option Life | 2 years 6 months |
Weighted Average Exercise Price (in dollars per share) | $ 11.40 |
Options Exercisable | |
Number Of options Exercisable (in shares) | shares | 139,893 |
Weighted Average Exercise Price (in dollars per share) | $ 11.42 |
$12.74 - $13.38 | |
Stock options outstanding and exercisable | |
Exercise price range, lower range limit | 12.74 |
Exercise price range, upper range limit | $ 13.38 |
Options Outstanding | |
Number of Options | shares | 273,330 |
Weighted Average Remaining Option Life | 3 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 12.99 |
Options Exercisable | |
Number Of options Exercisable (in shares) | shares | 69,333 |
Weighted Average Exercise Price (in dollars per share) | $ 13.03 |
$13.39 - $16.23 | |
Stock options outstanding and exercisable | |
Exercise price range, lower range limit | 13.39 |
Exercise price range, upper range limit | $ 16.23 |
Options Outstanding | |
Number of Options | shares | 269,416 |
Weighted Average Remaining Option Life | 3 years 3 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 14.74 |
Options Exercisable | |
Number Of options Exercisable (in shares) | shares | 101,628 |
Weighted Average Exercise Price (in dollars per share) | $ 15.93 |
$16.24 - $25.15 | |
Stock options outstanding and exercisable | |
Exercise price range, lower range limit | 16.24 |
Exercise price range, upper range limit | $ 25.15 |
Options Outstanding | |
Number of Options | shares | 299,304 |
Weighted Average Remaining Option Life | 1 year 4 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 21.09 |
Options Exercisable | |
Number Of options Exercisable (in shares) | shares | 265,989 |
Weighted Average Exercise Price (in dollars per share) | $ 21.43 |
$25.16 - $25.82 | |
Stock options outstanding and exercisable | |
Exercise price range, lower range limit | 25.16 |
Exercise price range, upper range limit | $ 25.82 |
Options Outstanding | |
Number of Options | shares | 260,860 |
Weighted Average Remaining Option Life | 1 year 1 month 6 days |
Weighted Average Exercise Price (in dollars per share) | $ 25.81 |
Options Exercisable | |
Number Of options Exercisable (in shares) | shares | 249,913 |
Weighted Average Exercise Price (in dollars per share) | $ 25.81 |
STOCK-BASED COMPENSATION PLAN_7
STOCK-BASED COMPENSATION PLANS Schedule of restricted stock unit activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of RSUs | |||
Outstanding at the beginning of the period (in shares) | 1,815,759 | 1,046,275 | |
Granted (in shares) | 2,865,042 | 1,222,131 | |
Vested (in shares) | (586,343) | (333,865) | |
Forfeited (in shares) | (303,175) | (118,782) | |
Outstanding at the end of the period (in shares) | 3,791,283 | 1,815,759 | 1,046,275 |
Outstanding - vested and not settled (in shares) | 168,028 | ||
Outstanding - unvested (in shares) | 3,623,255 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 15.42 | $ 19.24 | |
Granted (in dollars per share) | 12.80 | 12.44 | |
Vested (in dollars per share) | 16.30 | 18.22 | |
Forfeited (in dollars per share) | 12.83 | 15.20 | |
Outstanding at the end of the period (in dollars per share) | $ 13.61 | $ 15.42 | $ 19.24 |
Weighted Average Remaining Contractual Life In years | |||
Outstanding at the beginning of the period | 2 years | 2 years 3 months 18 days | 2 years 7 months 6 days |
Outstanding at the end of the period | 2 years | 2 years 3 months 18 days | 2 years 7 months 6 days |
Aggregate Intrinsic Value | |||
Outstanding at the beginning of the period (in dollars) | $ 17,310 | $ 13,289 | |
Vested (in dollars) | 6,569 | 4,607 | |
Outstanding at the end of the period (in dollars) | $ 55,242 | $ 17,310 | $ 13,289 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net loss from continuing operations | $ (70,151) | $ (74,663) |
Net earnings from discontinued operations | 20,810 | 4,125 |
Net loss | $ (49,341) | $ (70,538) |
Weighted average shares used in computation of: | ||
Basic (in shares) | 36,393 | 36,166 |
Diluted (in shares) | 36,393 | 36,166 |
Basic and diluted net earnings (loss) per share (in dollars): | ||
Continuing Operations (in dollars per share) | $ (1.93) | $ (2.06) |
Discontinued operations (in dollars per share) | 0.57 | 0.11 |
Net earnings (loss) per share (in dollars)(note 12) | $ (1.36) | $ (1.95) |
ACCOUNTS RECEIVABLE Schedule of
ACCOUNTS RECEIVABLE Schedule of components of accounts receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Components of accounts receivable | |||
Contract assets (note 2(c)) | $ 2,132 | $ 1,688 | |
Accounts receivables, net | 68,575 | 94,491 | |
Trade receivables | |||
Components of accounts receivable | |||
Accounts receivable, gross | 53,213 | 81,612 | |
Less: allowance for doubtful accounts | (3,631) | (2,975) | $ (2,968) |
Accounts receivables, net | 49,582 | 78,637 | |
Sales taxes receivable | |||
Components of accounts receivable | |||
Accounts receivable, gross | 4,419 | 3,341 | |
Financing receivables | |||
Components of accounts receivable | |||
Financing Receivables | 342 | 959 | |
Other receivables | |||
Components of accounts receivable | |||
Other receivables | 8,750 | 6,050 | |
R&D tax credits | |||
Components of accounts receivable | |||
Accounts receivable, gross | $ 3,350 | $ 3,816 |
ACCOUNTS RECEIVABLE Schedule _2
ACCOUNTS RECEIVABLE Schedule of movement in the allowance for doubtful accounts (Details) - Trade receivables - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in the allowance for doubtful accounts | ||
Balance, beginning of year | $ 2,975 | $ 2,968 |
Current period provision for expected credit losses | 418 | 490 |
Write-offs charged against allowance for credit losses | (792) | (285) |
Recoveries of amounts previously written off | 15 | 0 |
Foreign exchange | 98 | (3) |
Assets held for sale | 0 | (195) |
Balance, end of year | 3,631 | 2,975 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Movement in the allowance for doubtful accounts | ||
Balance, beginning of year | 917 | |
Balance, end of year | 917 | |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Movement in the allowance for doubtful accounts | ||
Balance, beginning of year | $ 3,892 | |
Balance, end of year | $ 3,892 |
CONTRACT BALANCES (Details)
CONTRACT BALANCES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 2,132 | $ 1,688 |
Change in contract assets | 444 | |
Deferred revenue - current | 9,862 | 9,190 |
Change in deferred revenue - current | 672 | |
Deferred revenue - noncurrent | 7,863 | 8,078 |
Change in deferred revenue - noncurrent | (215) | |
Deferred revenue recognized in revenue | $ 8,813 | $ 5,756 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Electronic components | $ 19,468 | $ 17,504 |
Finished goods | 13,347 | 18,830 |
Inventories | $ 32,815 | $ 36,334 |
PREPAIDS AND OTHER (Details)
PREPAIDS AND OTHER (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory advances | $ 1,434 | $ 2,338 |
Insurance and licenses | 873 | 292 |
Deposits | 2,665 | 2,120 |
Contract acquisition and fulfillment costs | 1,850 | 1,529 |
Other | 5,111 | 4,579 |
Prepaids and other | 11,933 | 10,858 |
Deferred contract acquisition and fulfillment costs | $ 1,276 | $ 357 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
PROPERTY AND EQUIPMENT | ||
Cost | $ 104,106 | $ 99,786 |
Accumulated amortization | 72,694 | 72,209 |
Net book value | 31,412 | 27,577 |
Furniture and fixtures | ||
PROPERTY AND EQUIPMENT | ||
Cost | 3,467 | 3,189 |
Accumulated amortization | 2,163 | 1,948 |
Net book value | 1,304 | 1,241 |
Research and development equipment | ||
PROPERTY AND EQUIPMENT | ||
Cost | 33,583 | 31,085 |
Accumulated amortization | 21,770 | 22,623 |
Net book value | 11,813 | 8,462 |
Production equipment and tooling | ||
PROPERTY AND EQUIPMENT | ||
Cost | 31,999 | 28,665 |
Accumulated amortization | 23,466 | 20,052 |
Net book value | 8,533 | 8,613 |
Computer equipment | ||
PROPERTY AND EQUIPMENT | ||
Cost | 5,608 | 9,274 |
Accumulated amortization | 4,610 | 7,748 |
Net book value | 998 | 1,526 |
Software | ||
PROPERTY AND EQUIPMENT | ||
Cost | 7,608 | 9,854 |
Accumulated amortization | 5,838 | 7,727 |
Net book value | 1,770 | 2,127 |
Leasehold improvements | ||
PROPERTY AND EQUIPMENT | ||
Cost | 7,719 | 7,319 |
Accumulated amortization | 5,940 | 5,124 |
Net book value | 1,779 | 2,195 |
Leased vehicles | ||
PROPERTY AND EQUIPMENT | ||
Cost | 392 | 584 |
Accumulated amortization | 390 | 560 |
Net book value | 2 | 24 |
Office equipment | ||
PROPERTY AND EQUIPMENT | ||
Cost | 1,172 | 1,184 |
Accumulated amortization | 1,045 | 996 |
Net book value | 127 | 188 |
Monitoring equipment | ||
PROPERTY AND EQUIPMENT | ||
Cost | 6,141 | 1,852 |
Accumulated amortization | 2,455 | 1,117 |
Net book value | 3,686 | 735 |
Network equipment | ||
PROPERTY AND EQUIPMENT | ||
Cost | 6,417 | 6,780 |
Accumulated amortization | 5,017 | 4,314 |
Net book value | $ 1,400 | $ 2,466 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Amortization expense relating to property and equipment | $ 15,129 | $ 16,257 |
Amortization expense related to discontinued operations | $ 1,712 | $ 2,944 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
INTANGIBLE ASSETS | ||
Cost | $ 271,816 | $ 237,220 |
Accumulated amortization | 193,735 | 167,148 |
Net book value | 78,081 | 70,072 |
Estimated annual amortization expense | ||
2021 | 15,691 | |
2022 | 11,882 | |
2023 | 11,242 | |
2024 | 10,399 | |
2025 | 8,779 | |
Patents and trademarks | ||
INTANGIBLE ASSETS | ||
Cost | 16,300 | 15,416 |
Accumulated amortization | 14,649 | 13,540 |
Net book value | 1,651 | 1,876 |
Licenses | ||
INTANGIBLE ASSETS | ||
Cost | 57,480 | 52,517 |
Accumulated amortization | 53,153 | 48,912 |
Net book value | 4,327 | 3,605 |
Intellectual property | ||
INTANGIBLE ASSETS | ||
Cost | 28,916 | 27,824 |
Accumulated amortization | 26,095 | 22,326 |
Net book value | 2,821 | 5,498 |
Customer relationships | ||
INTANGIBLE ASSETS | ||
Cost | 140,892 | 116,576 |
Accumulated amortization | 83,858 | 69,883 |
Net book value | 57,034 | 46,693 |
Brand | ||
INTANGIBLE ASSETS | ||
Cost | 17,070 | 14,613 |
Accumulated amortization | 5,631 | 3,727 |
Net book value | 11,439 | 10,886 |
Research and development | ||
INTANGIBLE ASSETS | ||
Cost | 11,158 | 10,274 |
Accumulated amortization | 10,349 | 8,760 |
Net book value | $ 809 | $ 1,514 |
INTANGIBLE ASSETS Narrative (De
INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense relating to intangible assets | $ 17,216 | $ 16,920 |
Estimated useful life | 6 years 2 months 12 days |
GOODWILL (Details)
GOODWILL (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)reportingUnit | Dec. 31, 2019USD ($) | |
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | $ 154,381,000 | $ 157,860,000 |
Goodwill acquired | 11,076,000 | 0 |
Foreign currency translation adjustments | 10,088,000 | (3,479,000) |
Balance at end of year | $ 175,545,000 | 154,381,000 |
Number of reporting units | reportingUnit | 2 | |
Impairment loss | $ 0 | 0 |
Previously Reported | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 154,381,000 | 211,074,000 |
Balance at end of year | 154,381,000 | |
Revision of Prior Period, Adjustment | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 0 | (53,214,000) |
Balance at end of year | 0 | |
loT Solutions | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 121,429,000 | |
Balance at end of year | 138,630,000 | 121,429,000 |
Embedded Broadband | ||
Changes in the carrying amount of goodwill | ||
Balance at beginning of year | 32,952,000 | |
Balance at end of year | $ 36,915,000 | $ 32,952,000 |
LEASES Schedule of Components o
LEASES Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 8,616 | $ 9,610 |
Finance lease cost | 130 | 345 |
Short-term lease cost | 2,020 | 1,961 |
ROU asset impairment | 0 | 877 |
Lease expense | 10,766 | 12,793 |
Sublease income | (1,534) | (1,032) |
Total lease expenses | $ 9,232 | $ 11,761 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease remaining lease term | 1 month 6 days | 2 months 12 days |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease remaining lease term | 11 years | 12 years |
LEASES Schedule of Supplemental
LEASES Schedule of Supplemental Balance Sheet (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 20,068,000 | $ 25,466,000 |
Accounts payable and accrued liabilities | 7,376,000 | 5,793,000 |
Operating lease liabilities | 17,054,000 | 25,154,000 |
Total operating lease liabilities | 24,430,000 | 30,947,000 |
Finance Leases | ||
Property and equipment, gross | 1,111,000 | 1,362,000 |
Accumulated depreciation | (1,084,000) | (1,192,000) |
Property and equipment, net | 27,000 | 170,000 |
Accounts payable and accrued liabilities | 171,000 | 379,000 |
Long-term obligations | 8,000 | 188,000 |
Total finance lease liabilities | $ 179,000 | $ 567,000 |
Weighted Average Remaining Lease Term | ||
Operating leases | 6 years 10 months 24 days | 7 years 1 month 6 days |
Finance leases | 1 year 2 months 12 days | 1 year 7 months 6 days |
Weighted Average Discount Rate | ||
Operating leases | 2.60% | 2.60% |
Finance leases | 3.80% | 3.50% |
LEASES Schedule of Lease Cost (
LEASES Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 6,152 | $ 7,860 |
Financing cash flow from finance leases | 405 | 535 |
Operating leases | 678 | 6,782 |
Financing leases | $ 0 | $ 38 |
LEASES Schedule of Lease Maturi
LEASES Schedule of Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2021 | $ 7,447 | |
2022 | 2,063 | |
2023 | 3,190 | |
2024 | 2,268 | |
2025 | 2,002 | |
Thereafter | 10,254 | |
Total lease payments | 27,224 | |
Less: imputed interest | (2,794) | |
Total lease liabilities | 24,430 | $ 30,947 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2021 | 181 | |
2022 | 14 | |
2023 | 14 | |
2024 | 1 | |
2025 | 0 | |
Thereafter | 0 | |
Total lease payments | 210 | |
Less: imputed interest | (31) | |
Total lease liabilities | 179 | $ 567 |
Operating And Finance Lease Liabilities, Payments, Due [Abstract] | ||
2021 | 7,628 | |
2022 | 2,077 | |
2023 | 3,204 | |
2024 | 2,269 | |
2025 | 2,002 | |
Thereafter | 10,254 | |
Total lease payments | 27,434 | |
Less: imputed interest | (2,825) | |
Total lease liabilities | $ 24,609 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||
Trade payables and accruals | $ 67,250 | $ 55,796 |
Inventory commitment reserve | 475 | 767 |
Accrued royalties | 10,698 | 11,870 |
Accrued payroll and related liabilities | 21,244 | 13,825 |
Professional services | 5,329 | 4,415 |
Taxes payable (including sales taxes) | 4,979 | 4,847 |
Product warranties (note 27(a)(iii)) | 5,804 | 6,743 |
Sales credits | 10,732 | 8,814 |
Restructuring liability (note 8) | 5,750 | 8,655 |
Operating lease liabilities (note 20) | 7,376 | 5,793 |
Finance lease liabilities (note 20) | 171 | 379 |
Other | 22,330 | 27,692 |
Total accounts payable and accrued liabilities | $ 162,138 | $ 149,596 |
LONG-TERM OBLIGATIONS (Details)
LONG-TERM OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities, Noncurrent [Abstract] | ||
Accrued royalties | $ 33,218 | $ 30,988 |
Deferred revenue | 7,863 | 8,078 |
Finance lease liabilities (note 20) | 8 | 188 |
Other | 4,557 | 4,153 |
Long-term obligations | $ 45,646 | $ 43,407 |
LONG-TERM OBLIGATIONS LONG-TERM
LONG-TERM OBLIGATIONS LONG-TERM OBLIGATIONS - Remaining Performance Obligations, Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Revenue, Remaining Performance Obligation, Amount | $ 21,608 | $ 24,173 |
LONG-TERM OBLIGATIONS LONG-TE_2
LONG-TERM OBLIGATIONS LONG-TERM OBLIGATIONS - Remaining Performance Obligations, Percent (Details) | Dec. 31, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in percent) | 45.00% |
Remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in percent) | 29.00% |
Remaining performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (in percent) | 26.00% |
Remaining performance obligation, period |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance | $ 381,325 | $ 444,130 |
Balance | 356,413 | 381,325 |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Foreign currency translation adjustments | 1,914 | (3,241) |
Loss on long term intercompany balances | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Foreign currency translation adjustments | 5,722 | (829) |
Accumulated other comprehensive income (loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance | (13,216) | (9,146) |
Balance | $ (5,580) | $ (13,216) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Nov. 18, 2020 | Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||||
Net income taxes paid | $ 3,333 | $ 616 | ||
Net Interest (received) paid | 739 | (202) | ||
Discount fees paid (note 25 (d)) | 414 | 347 | ||
Non-cash property and equipment additions | 0 | 485 | ||
Cash and cash equivalents | 160,560 | 71,164 | ||
Restricted cash | 10,864 | 3,629 | ||
Assets held for sale | 0 | 4,290 | ||
Total cash, cash equivalents, and restricted cash shown in the statements of cash flows | 171,424 | 79,083 | $ 89,297 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
RPA, receivables collected, previously sold, timing differences | 764 | |||
Assets held for sale | 0 | 4,290 | ||
Cloud Computing Services | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Purchase obligation | 2,478 | 2,458 | ||
Automotive Business | Discontinued Operations, Disposed of by Sale | ||||
Supplemental Cash Flow Information [Abstract] | ||||
Assets held for sale | 4,290 | $ 5,711 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Assets held for sale | $ 4,290 | $ 5,711 | ||
Held In Escrow Related to Divestiture | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 10,000 | |||
Held In Escrow For Vender Obligations | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 100 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) $ in Millions | Jul. 22, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019USD ($) | Feb. 17, 2021USD ($) | Dec. 31, 2020CAD ($) | Apr. 30, 2020USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Average forward exchange rate | 1.3140 | 1.3140 | |||||
Unrealized gain in foreign exchange gain (loss) | $ 485,000 | $ 1,421,000 | |||||
Borrowed | 9,383,000 | 0 | |||||
Repayment | 9,383,000 | 0 | |||||
Standby letters of credit facility | 1,500,000 | ||||||
Letters of credit outstanding, amount | 1,350,000 | 100,000 | |||||
RPA, receivables collected, previously sold, timing differences | 764,000 | ||||||
Secured Debt | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Interest expense | 161,000 | 0 | |||||
Debt instrument, face value | $ 12.5 | ||||||
Portion of loan guaranteed (in percent) | 80.00% | ||||||
Term of interest only payments | 12 months | ||||||
Term of quarterly principal payments | 10 years | ||||||
Borrowed | 9,400,000 | $ 12.5 | |||||
Repayment | 9,400,000 | $ 12.5 | |||||
Revolving Credit Facility | Line of Credit | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Outstanding borrowings | 0 | 0 | |||||
Interest expense | 578,000 | 0 | |||||
Revolving Credit Facility | Line of Credit | Subsequent Event | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Maximum borrowing capacity | $ 30,000,000 | ||||||
CIBC | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
RPA maximum amount that can be sold or outstanding | $ 75,000,000 | ||||||
RPA, amount that can be sold, face value, percent | 100.00% | 100.00% | |||||
RPA, Amount that can be sold, discount, percent | 10.00% | 10.00% | |||||
RPA, Sold and de-recognized | $ 163,354,000 | 86,856,000 | |||||
RPA, Receivables outstanding | 19,388,000 | 18,174,000 | |||||
RPA, receivables collected, previously sold, timing differences | 764,000 | 3,408,000 | |||||
CIBC | Other Expense | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
RPA, Discount fees | $ 414,000 | 347,000 | |||||
RPA, Administration expense | $ 129,000 | ||||||
Foreign Exchange Forward | Designated as Hedging Instrument | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Amount purchased | $ 28.8 |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES Contingent liability on sale of products (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the liability for product warranties | ||
Balance, beginning of year | $ 6,743 | |
Provisions | 4,834 | $ 3,686 |
Expenditures | (5,773) | (2,673) |
Liability held for sale | 0 | (2,184) |
Balance, end of year | $ 5,804 | 6,743 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||
Changes in the liability for product warranties | ||
Balance, beginning of year | $ 7,914 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Other commitments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Electronic components inventory | ||
Other commitments | ||
Remaining minimum amount committed | $ 93,865 | $ 128,146 |
Electronic components inventory | Automotive Business | ||
Other commitments | ||
Remaining minimum amount committed | 51,587 | |
Wireless data and services | ||
Other commitments | ||
Purchase obligation | 2,836 | 7,110 |
Cloud Computing Services | ||
Other commitments | ||
Purchase obligation | $ 2,478 | $ 2,458 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Legal proceedings and IP Indemnification Claims Narrative (Details) | 1 Months Ended | |
May 31, 2020patent | Jun. 30, 2019patentemployee | |
First Suit Plantiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 12 | |
Inter Partes Review Petitions Instituted | employee | 11 | |
Inter Partes Review Petitions Denied | employee | 1 | |
Second Suit Plaintiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 9 | |
Nokia Corporation | First Suit Plantiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 5 | |
Nokia Corporation | Second Suit Plaintiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 1 | |
Blackberry, Ltd. | First Suit Plantiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 7 | |
Number of patents not infringed | 6 | |
Blackberry, Ltd. | Second Suit Plaintiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 2 | |
LG Electronics, Inc. | Second Suit Plaintiffs | ||
COMMITMENTS AND CONTINGENCIES | ||
Number of patents allegedly infringed | 6 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Jan. 01, 2021segment | Dec. 31, 2020segment | Dec. 31, 2020employee |
Subsequent Event [Line Items] | |||
Number of reportable segments | 2 | 2 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Number of reportable segments | 2 |