Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Sep. 01, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PI | |
Entity Registrant Name | IMPINJ INC | |
Entity Central Index Key | 1,114,995 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,775,815 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 14,432 | $ 10,121 |
Accounts receivable, net | 15,623 | 12,889 |
Inventory | 19,228 | 11,837 |
Prepaid expenses and other current assets | 1,142 | 1,095 |
Total current assets | 50,425 | 35,942 |
Property and equipment, net | 12,621 | 12,351 |
Other non-current assets | 1,528 | 637 |
Goodwill | 3,881 | 3,881 |
Other intangible assets, net | 37 | |
Total assets | 68,455 | 52,848 |
Current liabilities: | ||
Accounts payable | 7,473 | 3,182 |
Accrued compensation and employee related benefits | 4,006 | 4,038 |
Accrued liabilities | 4,225 | 2,895 |
Current portion of long-term debt | 13,162 | 5,227 |
Current portion of capital lease obligations | 1,100 | 1,190 |
Current portion of deferred rent | 182 | 258 |
Current portion of deferred revenue | 371 | 684 |
Total current liabilities | 30,519 | 17,474 |
Long-term debt, net of current portion | 15,033 | 10,683 |
Capital lease obligations, net of current portion | 2,115 | 2,526 |
Long-term liabilities—other | 724 | 678 |
Warrant liability | 2,711 | 2,865 |
Deferred rent, net of current portion | 5,104 | 4,984 |
Deferred revenue, net of current portion | 970 | 710 |
Total liabilities | 57,176 | 39,920 |
Commitment and contingencies | ||
Total redeemable convertible preferred stock | 103,731 | 97,963 |
Stockholders' deficit: | ||
Common stock, $0.001 par value, 17,083 shares authorized; 4,478 and 4,382 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 4 | 4 |
Additional paid in capital | 95,443 | 100,276 |
Accumulated deficit | (187,899) | (185,315) |
Total stockholders' deficit | (92,452) | (85,035) |
Total liabilities, redeemable convertible preferred stock and stockholders' deficit | 68,455 | 52,848 |
Series 1 | ||
Current liabilities: | ||
Total redeemable convertible preferred stock | 65,834 | 60,184 |
Series 2 | ||
Current liabilities: | ||
Total redeemable convertible preferred stock | $ 37,897 | $ 37,779 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Redeemable convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 17,083,000 | 17,083,000 |
Common stock, shares issued | 4,478,000 | 4,382,000 |
Common stock, shares outstanding | 4,478,000 | 4,382,000 |
Series 1 | ||
Redeemable convertible preferred stock, shares authorized | 5,334,000 | 5,334,000 |
Redeemable convertible preferred stock, shares issued | 5,334,000 | 5,334,000 |
Redeemable convertible preferred stock, shares outstanding | 5,334,000 | 5,334,000 |
Series 2 | ||
Redeemable convertible preferred stock, shares authorized | 2,979,000 | 2,979,000 |
Redeemable convertible preferred stock, shares issued | 2,557,000 | 2,557,000 |
Redeemable convertible preferred stock, shares outstanding | 2,557,000 | 2,557,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Product revenue | $ 25,862 | $ 18,871 | $ 47,413 | $ 34,866 |
Development, service and licensing revenue | 126 | 252 | 206 | 322 |
Total revenue | 25,988 | 19,123 | 47,619 | 35,188 |
Cost of revenue: | ||||
Cost of product revenue | 12,339 | 8,901 | 22,834 | 16,901 |
Cost of development, service and licensing revenue | 57 | 59 | 95 | 96 |
Total cost of revenue | 12,396 | 8,960 | 22,929 | 16,997 |
Gross profit | 13,592 | 10,163 | 24,690 | 18,191 |
Operating expenses: | ||||
Research and development | 5,726 | 4,023 | 11,160 | 8,184 |
Sales and marketing | 5,288 | 3,333 | 10,318 | 6,379 |
General and administrative | 2,356 | 1,597 | 4,858 | 3,151 |
Total operating expenses | 13,370 | 8,953 | 26,336 | 17,714 |
Income (loss) from operations | 222 | 1,210 | (1,646) | 477 |
Interest expense and other income (expense), net | ||||
Interest expense | (490) | (230) | (977) | (445) |
Other income (expense), net | 54 | 24 | 94 | 86 |
Total interest expense and other income (expense), net | (436) | (206) | (883) | (359) |
Income (loss) before tax expense | (214) | 1,004 | (2,529) | 118 |
Income tax expense | (40) | (30) | (55) | (49) |
Net income (loss) | (254) | 974 | (2,584) | 69 |
Less: Accretion of preferred stock | (2,825) | (2,825) | (5,650) | (5,650) |
Net loss attributable to common stockholders—basic and diluted | $ (3,079) | $ (1,851) | $ (8,234) | $ (5,581) |
Net loss per share attributable to common stockholders—basic and diluted | $ (0.71) | $ (0.48) | $ (1.92) | $ (1.48) |
Weighted—average shares used to compute net loss per share attributable to common stockholders—basic and diluted | 4,321 | 3,845 | 4,294 | 3,766 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income (loss) | $ (2,584) | $ 69 |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,483 | 839 |
Amortization of debt issuance costs | 84 | 64 |
Revaluation of warrant liability | (91) | (71) |
Stock-based compensation | 662 | 600 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,734) | (3,313) |
Inventory | (7,391) | (4,390) |
Prepaid expenses and other assets | (621) | (166) |
Deferred revenue | (53) | 105 |
Deferred rent | 44 | (375) |
Accounts payable | 4,291 | 2,821 |
Accrued compensation and benefits | (235) | 77 |
Accrued liabilities | 829 | 53 |
Net cash provided by (used in) operating activities | (6,316) | (3,687) |
Investing activities: | ||
Purchases of property and equipment | (1,048) | (436) |
Net cash used in investing activities | (1,048) | (436) |
Financing activities: | ||
Payments on capital lease financing obligations | (622) | (335) |
Payments on term loans | (45,733) | (598) |
Proceeds from term loans | 57,934 | 4,009 |
Proceeds from issuance of common stock upon exercise of stock options | 358 | 282 |
Proceeds from issuance of preferred stock upon exercise of warrants | 55 | |
Payments of deferred offering costs | (317) | |
Net cash provided by (used in) financing activities | 11,675 | 3,358 |
Net increase (decrease) in cash and cash equivalents | 4,311 | (765) |
Cash and cash equivalents | ||
Beginning of period | 10,121 | 6,939 |
End of period | $ 14,432 | $ 6,174 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | Note 1. Organization and Description of Business Impinj, Inc. enables wireless connectivity to everyday items, delivering each items’ unique identity, location and authenticity to business and consumer applications. The Impinj Platform, spanning endpoints, connectivity and software provides this wireless item connectivity and information delivery. Impinj derives revenue from selling endpoint integrated circuits, or ICs, that attach-to and uniquely identify items; reader ICs, readers and gateways that enable bidirectional radio connectivity to the items; operating-system software that manages platform resources and delivers services and item data to partner applications via open APIs; as well as from development, service and license agreements. Our integrated platform connects billions of everyday items such as apparel, medical supplies, automobile parts, drivers’ licenses, food and luggage to applications such as inventory management, patient safety, asset tracking and item authentication, delivering real-time information to businesses about items they create, manage, transport and sell. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes as of and for the year ended December 31, 2015 included our prospectus, or the Prospectus, filed with the SEC on pursuant to Rule 424(b) under the Securities Act of 1933 on July 21, 2016. The condensed consolidated balance sheet as of December 31, 2015, included herein, was derived from the audited financial statements of Impinj, Inc. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position as of June 30, 2016, our results of operations for the three and six month periods ended June 30, 2016 and 2015, and our cash flows for the six month periods ended June 30, 2016 and 2015. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ended December 31, 2016 or for any other future period. Reclassifications In the consolidated statements of operations, certain prior year amounts have been reclassified to conform to the current year presentation. During the three and six months ended June 30, 2015, respectively, cost of product revenue increased $24,000 and $46,000, research and development expenses increased $106,000 and $209,000, sales and marketing expenses increased $44,000 and $86,000 and general and administrative expenses decreased $174,000 and $341,000. There was no change to the net income as a result of the reclassification. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, reserve for returns, collectability of accounts receivable, estimated costs to complete development contracts, warranty obligations, deferred revenue, inventory excess and obsolescence, depreciable lives of fixed assets, the determination of the fair value of stock awards and warrants and accrued liabilities, compensation and employee related benefits. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. Certain Significant Risks and Uncertainties Inherent in our business are various risks and uncertainties, including that we are developing advanced technologies and new applications in a rapidly changing industry. These risks include the failure to develop and extend our products and the rejection of our products by consumers, as well as other risks and uncertainties. If we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenue from the use of our technology. Deferred Offering Costs Deferred offering costs, consisting of legal, accounting and other fees and costs related to our initial public offering, are capitalized. The deferred offering costs will be offset against proceeds upon the closing of the offering. These costs have been deferred through the completion of the initial public offering and on the closing date of July 26, 2016, will be reclassified to additional paid-in capital as a reduction of the proceeds. There were $1.5 million of capitalized deferred offering costs as of June 30, 2016 and $637,000 of capitalized deferred offering costs as of December 31, 2015. Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board, or FASB, issued guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, impact of forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In February 2016, the FASB issued guidance on leases. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and early adoption is permitted. We expect to adopt this guidance on January 1, 2019. We believe adoption of this standard will have a significant impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement or presentation of lease expenses within the Consolidated Statements of Operations and Cash Flows. In January 2016, the FASB issued guidance on the recognition and measurement of financial instruments. This standard requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. This standard also requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, early adoption is permitted, and the guidance must be applied prospectively to equity investments that exist as of the adoption date. We expect to adopt this guidance on January 1, 2018. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes. This standard requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. We adopted this guidance as of January 1, 2016. The adoption of this guidance has no impact on our financial position, results of operations or cash flows. In July 2015, the FASB issued guidance on the measurement of inventory. The amendments require the measurement of inventory at the lower of cost or net realizable value; where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for interim and annual reporting periods beginning after December 31, 2016, and early adoption is permitted. We expect to adopt this guidance on January 1, 2017. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In August 2014, the FASB issued guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. This standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual reporting periods ending after December 15, 2016, and early adoption is permitted. We expect to adopt this guidance for the year ending December 31, 2016. We do not expect the adoption of this guidance to have any impact on our financial position, results of operations or cash flows. In May 2014, the FASB issued guidance on revenue recognition. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The original effective date of this guidance was for interim and annual reporting periods beginning after December 15, 2016, early adoption is not permitted, and the guidance must be applied retrospectively or modified retrospectively. In July 2015, the FASB approved an optional one-year deferral of the effective date. As a result, we expect to adopt this guidance on January 1, 2018. In 2016, the FASB issued final amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows, if any. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory The following table presents the detail of inventories as of the dates presented (in thousands): June 30, December 31, 2016 2015 Raw materials $ 4,234 $ 852 Work-in-process 3,743 3,269 Finished goods 11,251 7,716 Total Inventory $ 19,228 $ 11,837 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 4. Stock-Based Compensation The following table summarizes option award activity under our equity incentive plans for the year ended December 31, 2015 and the six months ended June 30, 2016 (in thousands, except per share data): Number of Shares Underlying Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at December 31, 2015 1,896 $ 3.72 $ 7.77 $ 8,666 Granted 99 8.48 Exercised (96 ) 3.72 Forfeited or Cancelled (54 ) 5.17 Outstanding at June 30, 2016 1,845 3.95 7.39 8,693 Vested and exercisable at June 30, 2016 1,000 2.17 6.22 6,490 As of June 30, 2016, there was a total of $2.0 million in unrecognized compensation cost related to unvested stock options. The following table presents the effects of stock-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands): Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of revenue $ 11 $ 21 $ 6 $ 8 Research and development expense 134 184 65 81 Sales and marketing expense 411 317 206 173 General and administrative expense 106 78 51 32 Total stock-based compensation expense 662 600 328 294 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Note 5. Net Loss Per Share Attributable to Common Stockholders For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): For the Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income (loss) $ (2,584 ) $ 69 $ (254 ) $ 974 Less: Accretion of preferred stock (5,650 ) (5,650 ) (2,825 ) (2,825 ) Net loss attributable to common stockholders—basic and diluted $ (8,234 ) $ (5,581 ) $ (3,079 ) $ (1,851 ) Denominator: Weighted-average common shares outstanding 4,405 3,963 4,423 4,030 Weighted-average unvested shares of common stock subject to repurchase (111 ) (197 ) (102 ) (185 ) Weighted-average shares used to compute net loss per share attributable to common stockholders—basic and diluted 4,294 3,766 4,321 3,845 Net loss per share attributable to common stockholders— basic and diluted $ (1.92 ) $ (1.48 ) $ (0.71 ) $ (0.48 ) For the periods presented, the following outstanding options, warrants and shares of preferred stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because their effect would have been antidilutive (in thousands): For the Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Redeemable convertible preferred stock 7,891 7,885 7,891 7,885 Common stock warrants 25 25 25 25 Redeemable convertible preferred stock warrants 258 264 258 264 Unvested shares of common stock subject to repurchase 147 169 147 169 Stock options 1,845 2,081 1,845 2,081 |
Debt Facilities
Debt Facilities | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Facilities | Note 6. Debt Facilities Senior Credit Facility We have a loan and security agreement, which we refer to as our senior credit facility, with Silicon Valley Bank. The senior credit facility provides for both revolver and term borrowings. In May 2016, we amended our senior credit facility to, among other things, refinance our $10.5 million aggregate principal amount of outstanding term borrowings, extend the maturity date of the revolver to December 2017, add a $5.0 million sublimit under the revolver for the issuance of standby letters of credit, reduce the interest rate applicable to revolving loans, amend the tangible net worth covenant and provide for a new equipment term-loan facility of up to $2.0 million. Interest on term borrowings accrues at a floating rate equal to the lender’s prime rate plus 2.25% during a one year interest-only period and at a floating rate equal to the lender’s prime rate plus 1.75% after expiration of the interest-only period (5.75% at June 30, 2016). Beginning in June 2017, we must begin paying 36 equal monthly installments of principal, plus accrued and unpaid interest. All outstanding principal and accrued and unpaid interest on the term borrowings is due and payable in May 2020. We may at our option prepay the outstanding term loan balance by paying the lender all principal and accrued and unpaid interest, plus a prepayment fee equal to $210,000 if the term-loan is prepaid on or prior to the first anniversary of the May 2016 amendment, and $105,000 if the term loan is prepaid after the first anniversary but on or prior to the second anniversary of the May 2016 amendment. The revolver allows us to borrow up to the lesser of $15.0 million and a borrowing base tied to the amount of our eligible accounts receivable and inventory. Interest on revolver borrowings is payable monthly and accrues at a floating rate equal to the lender’s prime rate plus 2.50% at all times when our cash held at the bank plus the amount available to borrow on the revolver is less than or equal to $8.5 million, and 2.00% when our cash held at the bank plus the amount available to borrow on the revolver is greater than $8.5 million for a period of at least 60 consecutive days (5.25% at June 30, 2016). At June 30, 2016, we had $13.0 million of revolver borrowings outstanding. At June 30, 2016, $23.5 million of term loan and revolver borrowings were outstanding, excluding unamortized debt issuance costs of $195,000. The weighted average interest rate on these facilities was 5.5% at June 30, 2016. Scheduled principal maturities as of June 30, 2016 were as follows (in thousands): 2016 $ 13,000 2017 2,042 2018 3,500 2019 3,500 2020 1,458 $ 23,500 As amended in May 2016, our senior credit facility also provides for up to $2.0 million in equipment term loans to fund purchases of eligible equipment. Equipment loans are available for borrowing for one year following the May 2016 amendment date and mature in May 2020. Equipment loans are repaid in 36 equal monthly installments of principal, plus accrued and unpaid interest, following each borrowing and accrue interest at a floating rate equal to the lender’s prime rate plus 1.75%. We may at our option prepay the outstanding equipment loan balance by paying the lender all outstanding principal and accrued and unpaid interest plus a prepayment fee equal to 2.00% of the principal amount of each equipment loan prepaid if such equipment loan is prepaid on or prior to the first anniversary of the date such equipment loan was borrowed, and 1.00% of the principal amount of each equipment loan prepaid if such equipment loan is prepaid after the first anniversary of the date such equipment loan was borrowed. At June 30, 2016, we had no equipment loan borrowings outstanding. The senior credit facility contains customary conditions to borrowing and affirmative and negative covenants, including covenants that restrict our and our subsidiaries’ ability to, among other things, dispose of assets, have a change of control, merge with or acquire other entities, incur indebtedness, grant liens on our assets, make distributions to holders of our capital stock, make investments or engage in transactions with our affiliates. The senior credit facility also requires us to maintain a minimum tangible net worth and liquidity ratio. We were in compliance with all covenants under our senior credit facility as of December 31, 2015 and June 30, 2016. Substantially all of our assets other than intellectual property are pledged as collateral under the senior credit facility. Mezzanine Credit Facility We have a mezzanine loan and security agreement, which we refer to as our mezzanine credit facility, with SG Enterprises II, LLC, which provides for a $5.0 million term loan which was drawn in September 2015. Interest on the term loan accrues at a fixed per-year rate equal to 18.0% and is payable monthly. Beginning in October 2017, we are required to pay equal monthly installments of principal equal to $138,889 through the maturity date. We may at our option and upon certain conditions, prepay the outstanding term loan balance without premium or penalty. All outstanding principal and accrued and unpaid interest on the term loan under the mezzanine credit facility is due and payable in October 2020. The mezzanine credit facility contains customary conditions to borrowing and affirmative and negative covenants, including covenants that restrict our and our subsidiaries’ ability to, among other things, dispose of assets, merge with or acquire other entities, incur indebtedness, grant liens on our assets, make distributions to holders of our capital stock, make investments or engage in transactions with our affiliates. The mezzanine credit facility also requires us to maintain minimum revenues of at least 80% of our board-approved annual operating plan, measured quarterly on a year-to-date basis. Substantially all of our assets other than intellectual property are pledged as collateral under the mezzanine credit facility. We were in compliance with all covenants as of June 30, 2016. As of June 30, 2016, $5.0 million of mezzanine loan borrowings, excluding unamortized debt discounts and issuance costs of $109,000 were outstanding. Scheduled principal maturities as of June 30, 2016 were as follows (in thousands): 2017 $ 416 2018 1,667 2019 1,667 2020 1,250 $ 5,000 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 7. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. We are organized as, and operate as, one reportable segment: the development and sale of integrated platform products and services. Our chief operating decision-maker is the executive team, led by our chief executive officer. Our executive team regularly reviews financial information presented on a total company basis, accompanied by information about revenue and direct material gross margin by product family for purposes of monitoring our product mix impact on total gross margin. Our executive team evaluates performance based primarily on total revenue as end users are generally deploying many of our products and services to obtain the benefits of our integrated platform. Our assets are primarily located in the United States and not allocated to any specific geographic region. Therefore, geographic information is presented only for total revenue. Over 95% of our long-lived assets are located in the United States. The following table is based on the location of the value-added resellers, inlay manufacturers, reader original equipment manufacturers, or For the Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Americas $ 12,396 $ 11,157 $ 6,100 $ 5,566 Asia Pacific 29,073 18,832 16,757 10,679 Europe, Middle East and Africa 6,150 5,199 3,131 2,878 Total Revenue $ 47,619 $ 35,188 $ 25,988 $ 19,123 Total revenue in the United States was $12.1 million and $10.8 million for the six months ended June 30, 2016 and 2015, respectively, and $6.1 million and $5.3 million for the three months ended June 30, 2016 and 2015, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. 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 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. · Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. Our assessment of the significance of a particular input to the fair value measurement requires management to make judgments and consider factors specific to the asset or liability. The fair values of our long-term debt approximates carrying value based on the borrowing rates currently available to us for loans with similar terms using level 2 inputs. Our convertible preferred stock contains redemption provisions and therefore our warrants issued to purchase such Series 2 redeemable convertible preferred stock are classified as liabilities and recorded at fair value. These preferred stock warrants are subject to remeasurement at each consolidated balance sheet date and any change in fair value is recognized as a component of other income (expense), net. Whenever possible, we use observable market data and rely on unobservable inputs only when observable market data is not available to determine fair value. The following tables summarize our liabilities measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Fair Value at June 30, 2016 Convertible preferred stock warrants $ — $ — $ 2,711 $ 2,711 Total liabilities measured at fair $ — $ — $ 2,711 $ 2,711 Level 1 Level 2 Level 3 Fair Value at December 31, 2015 Convertible preferred stock warrants $ — $ — $ 2,865 $ 2,865 Total liabilities measured at fair value $ — $ — $ 2,865 $ 2,865 The following table provides a roll-forward of the fair value of the preferred stock warrant liabilities categorized as Level 3 for the six months ended June 30, 2016 (in thousands): Balance at December 31, 2015 2,865 Remeasurement of convertible preferred stock warrants (91 ) Exercise of preferred stock warrants (63 ) Balance at June 30, 2016 $ 2,711 Our Series 2 redeemable convertible preferred stock warrant liabilities are categorized as Level 3 because they are valued based on unobservable inputs and our judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments. We perform a fair value assessment of the preferred stock warrant liabilities on a quarterly basis using the Black-Scholes model and the following variable input assumptions: Series 2 redeemable convertible preferred stock fair market value of $21.48 at December 31, 2014, and $19.20 at both December 31, 2015 and June 30, 2016, Series 2 redeemable convertible preferred stock exercise price of $9.318 per share, remaining contractual lives of the warrants ranging from one to seven years, volatility of 50% and risk-free interest rates ranging from 0.6% to 2.1%. The assumptions used in the Black-Scholes model are inherently subjective and involve significant judgment. Any change in fair value is recognized as a component of other income (expense). |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9. Subsequent Events On June 16, 2016, our board of directors and stockholders approved an amendment to our certificate of incorporation to effect a reverse split of our authorized, issued and outstanding common stock and redeemable convertible preferred stock at a 1-for-12 ratio per share. The reverse stock split was effected on July 8, 2016. The par value of our common stock and the par value of our redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. All authorized, issued and outstanding shares of common stock and redeemable convertible preferred stock, warrants for common stock and redeemable convertible preferred stock, options to purchase common stock and the related per share amounts contained in these condensed consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. On July 26, 2016, we closed our initial public offering of 5,520,000 shares of common stock at an initial price to public of $14.00 per share, including 720,000 shares of common stock pursuant to the underwriters’ option to purchase additional shares, resulting in aggregate net proceeds to us of $69.2 million after deducting underwriting discounts and commissions and estimated costs. Upon the effectiveness of the registration statement related to the initial public offering on July 20, 2016, all of our outstanding shares of redeemable convertible preferred stock and underlying warrants automatically converted into 8,522,837 shares and 56,409 shares, respectively, of common stock. The 2016 Equity Incentive Plan and the 2016 Employee Stock Purchase Plan became effective on July 19, 2016 and included 1,771,024 and 365,411 shares of common stock, respectively, available for issuance pursuant to each plan. On July 26, 2016, we repaid the principal and accrued interest on the $5.0 million term loan pursuant to the mezzanine credit facility and wrote-off unamortized debt discounts and issuance costs of $109,000. Prior to our initial public offering, a portion of deferred offering costs for legal fees were contingent upon us completing a successful public offering. Due to the risks and uncertainties surrounding initial public offerings, the payment of the contingent legal fees was determined to be less than probable as of June 30, 2016. After the closing our public offering on July 26, 2016, the contingency lapsed and payment became probable. Had we completed the initial public offering prior to June 30, 2016, capitalized deferred offering costs and accrued liabilities would have increased by $504,000. In July 2016, we repaid $13.0 million of revolver borrowings under the senior credit facility. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include Impinj, Inc. and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes as of and for the year ended December 31, 2015 included our prospectus, or the Prospectus, filed with the SEC on pursuant to Rule 424(b) under the Securities Act of 1933 on July 21, 2016. The condensed consolidated balance sheet as of December 31, 2015, included herein, was derived from the audited financial statements of Impinj, Inc. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position as of June 30, 2016, our results of operations for the three and six month periods ended June 30, 2016 and 2015, and our cash flows for the six month periods ended June 30, 2016 and 2015. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the year ended December 31, 2016 or for any other future period. |
Reclassifications | Reclassifications In the consolidated statements of operations, certain prior year amounts have been reclassified to conform to the current year presentation. During the three and six months ended June 30, 2015, respectively, cost of product revenue increased $24,000 and $46,000, research and development expenses increased $106,000 and $209,000, sales and marketing expenses increased $44,000 and $86,000 and general and administrative expenses decreased $174,000 and $341,000. There was no change to the net income as a result of the reclassification. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to revenue recognition, reserve for returns, collectability of accounts receivable, estimated costs to complete development contracts, warranty obligations, deferred revenue, inventory excess and obsolescence, depreciable lives of fixed assets, the determination of the fair value of stock awards and warrants and accrued liabilities, compensation and employee related benefits. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. |
Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties Inherent in our business are various risks and uncertainties, including that we are developing advanced technologies and new applications in a rapidly changing industry. These risks include the failure to develop and extend our products and the rejection of our products by consumers, as well as other risks and uncertainties. If we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenue from the use of our technology. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs, consisting of legal, accounting and other fees and costs related to our initial public offering, are capitalized. The deferred offering costs will be offset against proceeds upon the closing of the offering. These costs have been deferred through the completion of the initial public offering and on the closing date of July 26, 2016, will be reclassified to additional paid-in capital as a reduction of the proceeds. There were $1.5 million of capitalized deferred offering costs as of June 30, 2016 and $637,000 of capitalized deferred offering costs as of December 31, 2015. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board, or FASB, issued guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, impact of forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In February 2016, the FASB issued guidance on leases. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and early adoption is permitted. We expect to adopt this guidance on January 1, 2019. We believe adoption of this standard will have a significant impact on our Consolidated Balance Sheets. Although we have not completed our assessment, we do not expect the adoption to change the recognition, measurement or presentation of lease expenses within the Consolidated Statements of Operations and Cash Flows. In January 2016, the FASB issued guidance on the recognition and measurement of financial instruments. This standard requires equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income. This standard also requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, early adoption is permitted, and the guidance must be applied prospectively to equity investments that exist as of the adoption date. We expect to adopt this guidance on January 1, 2018. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In November 2015, the FASB issued guidance on the balance sheet classification of deferred taxes. This standard requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. We adopted this guidance as of January 1, 2016. The adoption of this guidance has no impact on our financial position, results of operations or cash flows. In July 2015, the FASB issued guidance on the measurement of inventory. The amendments require the measurement of inventory at the lower of cost or net realizable value; where net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for interim and annual reporting periods beginning after December 31, 2016, and early adoption is permitted. We expect to adopt this guidance on January 1, 2017. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In August 2014, the FASB issued guidance on the disclosure of uncertainties about an entity’s ability to continue as a going concern. This standard provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The guidance is effective for annual reporting periods ending after December 15, 2016, and early adoption is permitted. We expect to adopt this guidance for the year ending December 31, 2016. We do not expect the adoption of this guidance to have any impact on our financial position, results of operations or cash flows. In May 2014, the FASB issued guidance on revenue recognition. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The original effective date of this guidance was for interim and annual reporting periods beginning after December 15, 2016, early adoption is not permitted, and the guidance must be applied retrospectively or modified retrospectively. In July 2015, the FASB approved an optional one-year deferral of the effective date. As a result, we expect to adopt this guidance on January 1, 2018. In 2016, the FASB issued final amendments to clarify the implementation guidance for principal versus agent considerations, identifying performance obligations and the accounting for licenses of intellectual property. We have not yet determined our approach to adoption or the impact the adoption of this guidance will have on our financial position, results of operations or cash flows, if any. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table presents the detail of inventories as of the dates presented (in thousands): June 30, December 31, 2016 2015 Raw materials $ 4,234 $ 852 Work-in-process 3,743 3,269 Finished goods 11,251 7,716 Total Inventory $ 19,228 $ 11,837 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The following table summarizes option award activity under our equity incentive plans for the year ended December 31, 2015 and the six months ended June 30, 2016 (in thousands, except per share data): Number of Shares Underlying Options Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Years) Total Intrinsic Value Outstanding at December 31, 2015 1,896 $ 3.72 $ 7.77 $ 8,666 Granted 99 8.48 Exercised (96 ) 3.72 Forfeited or Cancelled (54 ) 5.17 Outstanding at June 30, 2016 1,845 3.95 7.39 8,693 Vested and exercisable at June 30, 2016 1,000 2.17 6.22 6,490 |
Summary of Stock-based Compensation Expense | The following table presents the effects of stock-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands): Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Cost of revenue $ 11 $ 21 $ 6 $ 8 Research and development expense 134 184 65 81 Sales and marketing expense 411 317 206 173 General and administrative expense 106 78 51 32 Total stock-based compensation expense 662 600 328 294 |
Net Loss Per Share Attributab18
Net Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share attributable to common stockholders (in thousands, except per share amounts): For the Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net income (loss) $ (2,584 ) $ 69 $ (254 ) $ 974 Less: Accretion of preferred stock (5,650 ) (5,650 ) (2,825 ) (2,825 ) Net loss attributable to common stockholders—basic and diluted $ (8,234 ) $ (5,581 ) $ (3,079 ) $ (1,851 ) Denominator: Weighted-average common shares outstanding 4,405 3,963 4,423 4,030 Weighted-average unvested shares of common stock subject to repurchase (111 ) (197 ) (102 ) (185 ) Weighted-average shares used to compute net loss per share attributable to common stockholders—basic and diluted 4,294 3,766 4,321 3,845 Net loss per share attributable to common stockholders— basic and diluted $ (1.92 ) $ (1.48 ) $ (0.71 ) $ (0.48 ) |
Computation of Diluted Net Loss Per Share Attributable to Common Stockholders Effect in Antidilutive | For the periods presented, the following outstanding options, warrants and shares of preferred stock were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because their effect would have been antidilutive (in thousands): For the Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Redeemable convertible preferred stock 7,891 7,885 7,891 7,885 Common stock warrants 25 25 25 25 Redeemable convertible preferred stock warrants 258 264 258 264 Unvested shares of common stock subject to repurchase 147 169 147 169 Stock options 1,845 2,081 1,845 2,081 |
Debt Facilities (Tables)
Debt Facilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Senior Credit Facility | Silicon Valley Bank | |
Line Of Credit Facility [Line Items] | |
Scheduled Principal Maturities of Debt | Scheduled principal maturities as of June 30, 2016 were as follows (in thousands): 2016 $ 13,000 2017 2,042 2018 3,500 2019 3,500 2020 1,458 $ 23,500 |
Mezzanine Credit Facility | SG Enterprises II, LLC | |
Line Of Credit Facility [Line Items] | |
Scheduled Principal Maturities of Debt | Scheduled principal maturities as of June 30, 2016 were as follows (in thousands): 2017 $ 416 2018 1,667 2019 1,667 2020 1,250 $ 5,000 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of Sales by Geography | Sales by geography were as follows: For the Six Months Ended Three Months Ended June 30, June 30, 2016 2015 2016 2015 Americas $ 12,396 $ 11,157 $ 6,100 $ 5,566 Asia Pacific 29,073 18,832 16,757 10,679 Europe, Middle East and Africa 6,150 5,199 3,131 2,878 Total Revenue $ 47,619 $ 35,188 $ 25,988 $ 19,123 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Liabilities Measured at Fair Value on Recurring Basis | The following tables summarize our liabilities measured at fair value on a recurring basis (in thousands): Level 1 Level 2 Level 3 Fair Value at June 30, 2016 Convertible preferred stock warrants $ — $ — $ 2,711 $ 2,711 Total liabilities measured at fair $ — $ — $ 2,711 $ 2,711 Level 1 Level 2 Level 3 Fair Value at December 31, 2015 Convertible preferred stock warrants $ — $ — $ 2,865 $ 2,865 Total liabilities measured at fair value $ — $ — $ 2,865 $ 2,865 |
Roll-Forward of Fair Value of Preferred Stock Warrant Liabilities Categorized as Level 3 | The following table provides a roll-forward of the fair value of the preferred stock warrant liabilities categorized as Level 3 for the six months ended June 30, 2016 (in thousands): Balance at December 31, 2015 2,865 Remeasurement of convertible preferred stock warrants (91 ) Exercise of preferred stock warrants (63 ) Balance at June 30, 2016 $ 2,711 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||||
Cost of product revenue | $ 12,339,000 | $ 8,901,000 | $ 22,834,000 | $ 16,901,000 | |
Research and development expense | 5,726,000 | 4,023,000 | 11,160,000 | 8,184,000 | |
Sales and marketing expense | 5,288,000 | 3,333,000 | 10,318,000 | 6,379,000 | |
General and administrative expense | 2,356,000 | 1,597,000 | 4,858,000 | 3,151,000 | |
Net income | (254,000) | 974,000 | $ (2,584,000) | 69,000 | |
Initial public offering closing date | Jul. 26, 2016 | ||||
Capitalized deferred offering costs | $ 1,500,000 | $ 1,500,000 | $ 637,000 | ||
Reclassifications | |||||
Significant Accounting Policies [Line Items] | |||||
Cost of product revenue | 24,000 | 46,000 | |||
Research and development expense | 106,000 | 209,000 | |||
Sales and marketing expense | 44,000 | 86,000 | |||
General and administrative expense | (174,000) | (341,000) | |||
Net income | $ 0 | $ 0 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,234 | $ 852 |
Work-in-process | 3,743 | 3,269 |
Finished goods | 11,251 | 7,716 |
Total Inventory | $ 19,228 | $ 11,837 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Shares Underlying Options, Outstanding, Beginning balance | 1,896 | |
Number of Shares Underlying Options, Granted | 99 | |
Number of Shares Underlying Options, Exercised | (96) | |
Number of Shares Underlying Options, Forfeited or Cancelled | (54) | |
Number of Shares Underlying Options, Outstanding, Ending balance | 1,845 | 1,896 |
Number of Shares Underlying Options, Vested and exercisable | 1,000 | |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ 3.72 | |
Weighted-Average Exercise Price Per Share, Granted | 8.48 | |
Weighted-Average Exercise Price Per Share, Exercised | 3.72 | |
Weighted-Average Exercise Price Per Share, Forfeited or Cancelled | 5.17 | |
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | 3.95 | $ 3.72 |
Weighted-Average Exercise Price Per Share, Vested and exercisable | $ 2.17 | |
Weighted-Average Remaining Contractual Life (Years), Outstanding | 7 years 4 months 21 days | 7 years 9 months 7 days |
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable | 6 years 2 months 19 days | |
Total Intrinsic Value, Outstanding | $ 8,693 | $ 8,666 |
Total Intrinsic Value, Vested and exercisable | $ 6,490 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | Jun. 30, 2016USD ($) |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unrecognized stock-based compensation cost | $ 2 |
Stock-Based Compensation - Su26
Stock-Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 328 | $ 294 | $ 662 | $ 600 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 6 | 8 | 11 | 21 |
Research and Development Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 65 | 81 | 134 | 184 |
Selling and Marketing Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 206 | 173 | 411 | 317 |
General and Administrative Expense | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 51 | $ 32 | $ 106 | $ 78 |
Net Loss Per Share Attributab27
Net Loss Per Share Attributable to Common Stockholders - Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Net income (loss) | $ (254) | $ 974 | $ (2,584) | $ 69 |
Less: Accretion of preferred stock | (2,825) | (2,825) | (5,650) | (5,650) |
Net loss attributable to common stockholders—basic and diluted | $ (3,079) | $ (1,851) | $ (8,234) | $ (5,581) |
Denominator: | ||||
Weighted-average common shares outstanding | 4,423 | 4,030 | 4,405 | 3,963 |
Weighted-average unvested shares of common stock subject to repurchase | (102) | (185) | (111) | (197) |
Weighted-average shares used to compute net loss per share attributable to common stockholders—basic and diluted | 4,321 | 3,845 | 4,294 | 3,766 |
Net loss per share attributable to common stockholders—basic and diluted | $ (0.71) | $ (0.48) | $ (1.92) | $ (1.48) |
Net Loss Per Share Attributab28
Net Loss Per Share Attributable to Common Stockholders - Computation of Diluted Net Loss Per Share Attributable to Common Stockholders Effect in Antidilutive (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Redeemable Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 7,891 | 7,885 | 7,891 | 7,885 |
Common Stock Warrants | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 25 | 25 | 25 | 25 |
Redeemable Convertible Preferred Stock Warrants | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 258 | 264 | 258 | 264 |
Unvested Shares of Common Stock Subject to Repurchase | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 147 | 169 | 147 | 169 |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 1,845 | 2,081 | 1,845 | 2,081 |
Debt Facilities - Senior Credit
Debt Facilities - Senior Credit Facility - Additional Information (Details) - Silicon Valley Bank - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | May 31, 2016 | |
Term Borrowings | ||
Line Of Credit Facility [Line Items] | ||
Amount of outstanding borrowings | $ 10,500,000 | |
Line of credit facility, interest rate description | Interest on term borrowings accrues at a floating rate equal to the lender’s prime rate plus 2.25% during a one year interest-only period and at a floating rate equal to the lender’s prime rate plus 1.75% after expiration of the interest-only period (5.75% at June 30, 2016). | |
Line of credit facility, month and year of first required payment | 2017-06 | |
Line of credit facility, frequency of payments | 36 equal monthly installments | |
Term Borrowings | Term Loan Prepaid On or Prior To First Anniversary of May 2016 Amendment | ||
Line Of Credit Facility [Line Items] | ||
Prepayment fee | $ 210,000 | |
Term Borrowings | Term Loan Prepaid After First Anniversary but On or Prior To Second Anniversary of May 2016 Amendment | ||
Line Of Credit Facility [Line Items] | ||
Prepayment fee | $ 105,000 | |
Term Borrowings | Prime Rate | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 5.75% | |
Term Borrowings | Prime Rate | One Year Interest Only Period | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 2.25% | |
Term Borrowings | Prime Rate | After Expiration of Interest Only Period | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 1.75% | |
Standby Letters of Credit | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 5,000,000 | |
Equipment Term Loan Facility | ||
Line Of Credit Facility [Line Items] | ||
Amount of outstanding borrowings | $ 0 | |
Line of credit facility, maximum borrowing capacity | $ 2,000,000 | |
Line of credit facility, interest rate description | Accrue interest at a floating rate equal to the lender’s prime rate plus 1.75% | |
Line of credit facility, frequency of payments | 36 equal monthly installments | |
Equipment Term Loan Facility | Equipment Loan Prepaid On or Prior To First Anniversary of Date Such Equipment Loan Was Borrowed | ||
Line Of Credit Facility [Line Items] | ||
Percentage of prepayment fee | 2.00% | |
Equipment Term Loan Facility | Equipment Loan Prepaid After First Anniversary of Date Such Equipment Loan Was Borrowed | ||
Line Of Credit Facility [Line Items] | ||
Percentage of prepayment fee | 1.00% | |
Revolver Borrowings | ||
Line Of Credit Facility [Line Items] | ||
Amount of outstanding borrowings | $ 13,000,000 | |
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |
Line of credit facility, interest rate description | Interest on revolver borrowings is payable monthly and accrues at a floating rate equal to the lender’s prime rate plus 2.50% at all times when our cash held at the bank plus the amount available to borrow on the revolver is less than or equal to $8.5 million, and 2.00% when our cash held at the bank plus the amount available to borrow on the revolver is greater than $8.5 million for a period of at least 60 consecutive days (5.25% at June 30, 2016). | |
Line of credit facility, amount available to borrow | $ 8,500,000 | |
Senior Credit Facility | ||
Line Of Credit Facility [Line Items] | ||
Term borrowings, extended maturity date | 2017-12 | |
Term loan and revolver borrowings outstanding, excluding unamortized debt issuance costs | $ 23,500,000 | |
Unamortized debt issuance costs | $ 195,000 | |
Credit facility, weighted average interest rate | 5.50% | |
Senior Credit Facility | Term Borrowings | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, maturity date | 2020-05 | |
Senior Credit Facility | Equipment Term Loan Facility | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, maturity date | 2020-05 | |
Senior Credit Facility | Equipment Term Loan Facility | Prime Rate | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 1.75% | |
Senior Credit Facility | Revolver Borrowings | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 5.25% | |
Senior Credit Facility | Revolver Borrowings | Cash Held At Bank Plus Amount Available To Borrow on Revolver Is Less Than or Equal To $8.5 Million | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 2.50% | |
Senior Credit Facility | Revolver Borrowings | Cash Held At Bank plus Amount Available To Borrow on Revolver Is Greater Than $8.5 Million | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, basis spread on variable rate | 2.00% |
Debt Facilities - Scheduled Pri
Debt Facilities - Scheduled Principal Maturities of Debt (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Senior Credit Facility | Silicon Valley Bank | |
Line Of Credit Facility [Line Items] | |
2,016 | $ 13,000 |
2,017 | 2,042 |
2,018 | 3,500 |
2,019 | 3,500 |
2,020 | 1,458 |
Long Term Debt | 23,500 |
Mezzanine Credit Facility | SG Enterprises II, LLC | |
Line Of Credit Facility [Line Items] | |
2,017 | 416 |
2,018 | 1,667 |
2,019 | 1,667 |
2,020 | 1,250 |
Long Term Debt | $ 5,000 |
Debt Facilities - Mezzanine Cre
Debt Facilities - Mezzanine Credit Facility - Additional Information (Details) - Mezzanine Credit Facility - SG Enterprises II, LLC - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2015 | |
Line Of Credit Facility [Line Items] | ||
Long-term debt | $ 5,000,000 | |
Term Loan | ||
Line Of Credit Facility [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |
Line of credit facility, interest rate description | Interest on the term loan accrues at a fixed per-year rate equal to 18.0% and is payable monthly. | |
Line of credit facility, fixed interest rate | 18.00% | |
Line of credit facility, month and year of first required payment | 2017-10 | |
Installments of principal amount | $ 138,889 | |
Line of credit facility, maturity date | 2020-10 | |
Debt instrument, covenant description | The mezzanine credit facility contains customary conditions to borrowing and affirmative and negative covenants, including covenants that restrict our and our subsidiaries’ ability to, among other things, dispose of assets, merge with or acquire other entities, incur indebtedness, grant liens on our assets, make distributions to holders of our capital stock, make investments or engage in transactions with our affiliates. The mezzanine credit facility also requires us to maintain minimum revenues of at least 80% of our board-approved annual operating plan, measured quarterly on a year-to-date basis. Substantially all of our assets other than intellectual property are pledged as collateral under the mezzanine credit facility. | |
Minimum percentage of revenue required under credit facility | 80.00% | |
Long-term debt | $ 5,000,000 | |
Unamortized debt discounts and issuance costs | $ 109,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 1 | |||
Total revenue | $ 25,988 | $ 19,123 | $ 47,619 | $ 35,188 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of long-lived assets | 95.00% | |||
Total revenue | $ 6,100 | $ 5,300 | $ 12,100 | $ 10,800 |
Segment Reporting - Summary of
Segment Reporting - Summary of Sales by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 25,988 | $ 19,123 | $ 47,619 | $ 35,188 |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 6,100 | 5,566 | 12,396 | 11,157 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | 16,757 | 10,679 | 29,073 | 18,832 |
Europe, Middle East and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total Revenue | $ 3,131 | $ 2,878 | $ 6,150 | $ 5,199 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 2,711 | $ 2,865 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | 2,711 | 2,865 |
Convertible Preferred Stock Warrants | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | 2,711 | 2,865 |
Convertible Preferred Stock Warrants | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 2,711 | $ 2,865 |
Fair Value Measurements - Roll-
Fair Value Measurements - Roll-Forward of Fair Value of Preferred Stock Warrant Liabilities Categorized as Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Remeasurement of convertible preferred stock warrants | $ 91 | $ 71 |
Convertible Preferred Stock Warrants | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | 2,865 | |
Remeasurement of convertible preferred stock warrants | (91) | |
Exercise of preferred stock warrants | (63) | |
Ending balance | $ 2,711 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Series 2 Redeemable Convertible Preferred Stock - $ / shares | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Stock fair market value | $ 19.20 | $ 19.20 | $ 21.48 |
Stock exercise price | $ 9.318 | ||
Volatility rate | 50.00% | ||
Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Remaining contractual life of warrants | 1 year | ||
Risk-free interest rate | 0.60% | ||
Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Remaining contractual life of warrants | 7 years | ||
Risk-free interest rate | 2.10% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Jul. 26, 2016USD ($)$ / sharesshares | Jun. 16, 2016 | Jul. 31, 2016USD ($) | Jun. 30, 2016shares | Jul. 20, 2016shares | Jul. 19, 2016shares | Dec. 31, 2015shares |
Subsequent Event [Line Items] | |||||||
Reverse split of common stock | On June 16, 2016, our board of directors and stockholders approved an amendment to our certificate of incorporation to effect a reverse split of our authorized, issued and outstanding common stock and redeemable convertible preferred stock at a 1-for-12 ratio per share. | ||||||
Reverse stock split ratio | 0.0833 | ||||||
Initial public offering closing date | Jul. 26, 2016 | ||||||
Common stock, shares issued | 4,478,000 | 4,382,000 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Increase in deferred offering costs and accrued liabilities | $ | $ 504,000 | ||||||
Subsequent Event | Senior Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Repayment of revolver borrowings | $ | $ 13,000,000 | ||||||
Subsequent Event | Mezzanine Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Repayment of principal and accrued interest | $ | 5,000,000 | ||||||
Unamortized debt discounts and issuance costs | $ | $ 109,000 | ||||||
Subsequent Event | 2016 Equity Incentive Plan | |||||||
Subsequent Event [Line Items] | |||||||
Shares of common stock available for issuance | 1,771,024 | ||||||
Subsequent Event | 2016 Employee Stock Purchase Plan | |||||||
Subsequent Event [Line Items] | |||||||
Shares of common stock available for issuance | 365,411 | ||||||
IPO | |||||||
Subsequent Event [Line Items] | |||||||
Initial public offering closing date | Jul. 26, 2016 | ||||||
IPO | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, share offering price | $ / shares | $ 14 | ||||||
Common stock, shares issued | 720,000 | ||||||
Outstanding shares of redeemable convertible preferred stock converted into common stock | 8,522,837 | ||||||
Warrants automatically converted into common stock | 56,409 | ||||||
IPO | Subsequent Event | Common Stock | |||||||
Subsequent Event [Line Items] | |||||||
Initial public offering of shares of common | 5,520,000 | ||||||
Aggregate net proceeds from issuance of stock | $ | $ 69,200,000 |