Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Jun. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SONM | |
Entity Registrant Name | SONIM TECHNOLOGIES INC | |
Entity Central Index Key | 0001178697 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 20,326,944 | |
Entity Current Reporting Status | No | |
Entity Shell Company | false | |
Entity Address, State or Province | CA |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 9,852 | $ 13,049 |
Accounts receivable, net | 7,501 | 18,877 |
Inventory | 29,063 | 21,831 |
Prepaid expenses and other current assets | 12,363 | 10,111 |
Total current assets | 58,779 | 63,868 |
Property and equipment, net | 1,009 | 1,071 |
Other assets | 2,155 | 2,406 |
Total assets | 61,943 | 67,345 |
Liabilities and stockholders’ equity | ||
Current portion of long-term debt | 282 | 301 |
Accounts payable | 27,028 | 27,295 |
Accrued expenses | 16,063 | 16,381 |
Deferred revenue | 3,950 | 4,223 |
Total current liabilities | 47,323 | 48,200 |
Income tax payable | 901 | 807 |
Long-term debt, less current portion | 13,104 | 13,209 |
Total liabilities | 61,328 | 62,216 |
Stockholders' equity | ||
Common stock, $0.001 par value per share; 100,000,000 shares authorized: and 15,873,705 and 15,591,357 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively. | 16 | 15 |
Additional paid-in capital | 150,332 | 148,641 |
Accumulated deficit | (149,733) | (143,527) |
Total stockholders’ equity | 615 | 5,129 |
Total liabilities and stockholders’ equity | $ 61,943 | $ 67,345 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (UNAUDITED) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 15,873,705 | 15,591,357 |
Common stock, shares outstanding | 15,873,705 | 15,591,357 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenues | $ 26,484 | $ 18,190 |
Cost of revenues | 17,105 | 12,927 |
Gross profit | 9,379 | 5,263 |
Operating expenses: | ||
Research and development | 8,401 | 5,141 |
Sales and marketing | 3,726 | 2,543 |
General and administrative | 2,476 | 1,593 |
Total operating expenses | 14,603 | 9,277 |
Loss from operations | (5,224) | (4,014) |
Interest expense | (422) | (406) |
Other expense, net | (265) | (117) |
Loss before income taxes | (5,911) | (4,537) |
Income tax expense | (295) | (534) |
Net loss | (6,206) | (5,071) |
Cumulative dividends on Series A, Series A-1 and Series A-2 preferred shares | (2,967) | |
Net loss attributable to common stockholders | $ (6,206) | $ (8,038) |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.39) | $ (7.77) |
Weighted–average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 15,783,744 | 1,034,641 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) - USD ($) $ in Thousands | Total | Series A Convertible Preferred Stock | Series A-1 Convertible Preferred Stock [Member] | Series A-2 Convertible Preferred Stock | Series B Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2017 | $ (89,911) | $ 1 | $ 54,892 | $ (144,804) | ||||
Balance, shares at Dec. 31, 2017 | 7,471,765 | 1,586,024 | 1,183,703 | 1,665,291 | ||||
Balance at Dec. 31, 2017 | $ 44,564 | $ 4,487 | $ 9,733 | $ 21,613 | ||||
Balance, shares at Dec. 31, 2017 | 1,027,113 | |||||||
Issuance of common stock upon exercise of stock options | 11 | 11 | ||||||
Issuance of common stock upon exercise of stock options, shares | 8,457 | |||||||
Employee and nonemployee stock-based compensation | 33 | 33 | ||||||
Net loss | (5,071) | (5,071) | ||||||
Balance at Mar. 31, 2018 | (94,938) | $ 1 | 54,936 | (149,875) | ||||
Balance, shares at Mar. 31, 2018 | 7,471,765 | 1,586,024 | 1,183,703 | 1,665,291 | ||||
Balance at Mar. 31, 2018 | $ 44,564 | $ 4,487 | $ 9,733 | $ 21,613 | ||||
Balance, shares at Mar. 31, 2018 | 1,035,570 | |||||||
Balance at Dec. 31, 2017 | (89,911) | $ 1 | 54,892 | (144,804) | ||||
Balance, shares at Dec. 31, 2017 | 7,471,765 | 1,586,024 | 1,183,703 | 1,665,291 | ||||
Balance at Dec. 31, 2017 | $ 44,564 | $ 4,487 | $ 9,733 | $ 21,613 | ||||
Balance, shares at Dec. 31, 2017 | 1,027,113 | |||||||
Balance at Dec. 31, 2018 | 5,129 | $ 15 | 148,641 | (143,527) | ||||
Balance, shares at Dec. 31, 2018 | 0 | 0 | 0 | 0 | ||||
Balance at Dec. 31, 2018 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Balance, shares at Dec. 31, 2018 | 15,591,357 | |||||||
Issuance of common stock, net of issuance costs | 1,604 | $ 1 | 1,603 | |||||
Issuance of common stock, net of issuance costs, shares | 227,628 | |||||||
Issuance of common stock upon exercise of stock options | $ 41 | 41 | ||||||
Issuance of common stock upon exercise of stock options, shares | 54,720 | 54,720 | ||||||
Employee and nonemployee stock-based compensation | $ 47 | 47 | ||||||
Net loss | (6,206) | (6,206) | ||||||
Balance at Mar. 31, 2019 | $ 615 | $ 16 | $ 150,332 | $ (149,733) | ||||
Balance, shares at Mar. 31, 2019 | 0 | 0 | 0 | 0 | ||||
Balance at Mar. 31, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Balance, shares at Mar. 31, 2019 | 15,873,705 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (6,206) | $ (5,071) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 534 | 467 |
Stock-based compensation | 47 | 33 |
Trade-in guarantee | (268) | |
Noncash interest expense | 228 | |
Deferred income taxes | (11) | (14) |
Provision for doubtful accounts | (3) | (41) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 11,379 | (2,887) |
Inventory | (7,233) | (2,802) |
Prepaid expenses and other current assets | (2,252) | (2,533) |
Other assets | (19) | (16) |
Accounts payable | (268) | 7,730 |
Accrued expenses | (319) | 475 |
Deferred revenue | (3) | (370) |
Income tax payable | 94 | 121 |
Net cash used in operating activities | (4,528) | (4,680) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (82) | (69) |
Development of tooling and purchased software licenses | (109) | (841) |
Net cash used in investing activities | (191) | (910) |
Cash flows from financing activities: | ||
Proceeds from borrowings on long-term debt | 3,000 | |
Proceeds on line of credit | 17,510 | |
Repayment on line of credit | (123) | (15,738) |
Proceeds from issuance of common stock, net of costs | 1,604 | |
Cost associated with amendments to credit agreements | 18 | |
Proceeds from exercise of stock options | 41 | 11 |
Net cash provided by financing activities | 1,522 | 4,801 |
Net decrease in cash and cash equivalents | (3,197) | (789) |
Cash and cash equivalents at beginning of period | 13,049 | 1,581 |
Cash and cash equivalents at end of period | 9,852 | 792 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 358 | 113 |
Cash paid for income taxes | 84 | 29 |
Non-cash investing and financing activities: | ||
Other assets included in accounts payable | $ 4 | $ 238 |
The Company and its Significant
The Company and its Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Company And Significant Accounting Policies [Abstract] | |
The Company and its significant accounting policies | NOTE 1 —The Company and its significant accounting policies Description of Business —Sonim Technologies, Inc. was incorporated in the state of Delaware on August 5, 1999 and is headquartered in San Mateo, California. The Company is a leading U.S. provider of ultra-rugged mobile phones and accessories designed specifically for task workers physically engaged in their work environments, often in mission-critical roles. Financial Statement Presentation —The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“ U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2018, as filed with the SEC on Form S-1 (the “2018 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2018 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements. Principles of Consolidation — The accompanying condensed consolidated financial statements include the accounts of Sonim Technologies. Inc. and its wholly-owned foreign subsidiaries, Sonim Technologies Spain SL, Sonim Technologies India Private Limited, Sonim Technologies (Shenzhen) Limited, Sonim Technologies (Hong Kong) Limited, and Sonim Communications India Private Limited (collectively, the “Company”). All significant intercompany transactions and balances have been eliminated in consolidation. Estimates —The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include, but are not limited to, estimates related to revenue recognition; valuation assumptions regarding the determination of the fair value of common stock, as well as stock warrants; the useful lives of our long-lived assets; product warranties; loss contingencies; and the recognition and measurement of income tax assets and liabilities, including uncertain tax positions; The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Significant accounting policies — There have been no material changes in the accounting policies from those disclosed in the audited 2018 consolidated financial statements and the related notes included in the filed Form S-1. Revenue Recognition — We recognize revenues primarily from the sale of products. We also enter into multiple-element agreements that include a combination of products and NRE services. Revenues from the sale of our mobile phones and accessories is recognized when all of the following conditions are met per Accounting Standards Codification, or ASC, Topic 605, Revenue Recognition, or ASC 605: (i) there is persuasive evidence of an arrangement; (ii) the product has been delivered to the customer; (iii) the collection of the fees is reasonably assured; and (iv) the amount of fees to be paid by the customer is fixed or determinable. Terms of product sales are generally FOB destination. Revenue recognition also incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. Terms of product sales are generally FOB destination. Revenue recognition also incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, certain distributors are able to exchange certain products based on the number of qualified purchases made during the period. The Company monitors and tracks these programs and records a provision, at the time of the sale, for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. When revenue arrangements involve multiple elements, each element, referred to as a deliverable, is evaluated to determine whether it represents a separate unit of accounting in accordance with ASC 605-25, Revenue Recognition – Multiple-Element Arrangements. software that is essential to the functionality of the hardware, revenues are recognized according to the milestone method in accordance with the provisions of ASC Topic 605-35, Construction-Type and Production- Type Contract . Under this method, we recognize revenues from milestone payments when: (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement, and (i) we do not have ongoing performance requirements related to the achievement of the milestone earned. Milestone payments are considered substantive if all of the following conditions are met: the milestone payment (i) is commensurate with either our performance to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable relative to all of the deliverables and payment terms ( other potential milestone consideration) within the arrangement. If a milestone is deemed non-substantive, we defer, if applicable, and recognize such non-substantive milestones over the estimated period of performance applicable to each agreement on a straight-line basis, as appropriate. Reverse Stock Split —In November 2018, the Company’s stockholders approved a one-for-fifteen reverse stock split of its common and convertible preferred stock which was effected on November 2, 2018. The par value of the common stock and convertible preferred stock were not adjusted as a result of the reverse stock split. Accordingly, all share and per share amounts for the period presented in the consolidated financial statements and notes thereto have been adjusted retrospectively to reflect this reverse stock split. Deferred Offering Costs — On May 9, 2019, our registration statement on Form S-1 (File No. 333-230887) related to our initial public offering (“IPO”) was declared effective by the SEC, and our common stock began trading on The Nasdaq Stock Market LLC (“Nasdaq”) on May 10, 2019. Our IPO closed on May 14, 2019. Deferred offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s IPO, are capitalized and will be offset against proceeds from the IPO within stockholders’ equity. As of December 31, 2018, there was $63 of deferred offering costs within other non-current assets on the condensed consolidated balance sheets. During the three months ended March 31, 2019, an additional $1,709 in deferred offering costs were incurred. In connection with the IPO, as of March 31, 2019, all deferred offering costs were charged to prepaid expenses. New accounting pronouncements: Pronouncements adopted in 2018: The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception. Distinguishing Liabilities from Equity Pronouncements not yet adopted: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718) In October 2016, the FASB issued ASU 2016-16 , Income Taxes—Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In January 2016, the FASB issued ASU 2016-01 , Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB, issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to The guidance permits two methods of adoption, the full retrospective method applying the standard to each prior reporting period presented, or the modified retrospective method with a cumulative effect of initially applying the guidance recognized at the date of initial application. The standard also allows entities to apply certain practical expedients at their discretion. We currently anticipate adopting the standard using the modified retrospective method with a cumulative adjustment and will provide additional disclosures comparing results to previous U.S. GAAP in our fiscal 2019 consolidated financial statements. We plan to apply the new revenue standards only to contracts not completed as of the date of initial application, referred to as open While the Company’s evaluation of the impact of this new guidance is not complete, we believe the impact of the new standard related to revenue recognition will not have a material impact on our consolidated financial statements other than potentially expanded disclosures. More judgements and estimates are required under Topic 606 than are required under Topic 605, including estimating the stand alone selling price (“SSP”) for each performance obligation identified within our arrangements with multiple elements and estimating the amount of variable considerations at inception of the arrangement. We will continue to evaluate sales incentives provided to our customers in order to determine the transaction price at inception of the This preliminary assessment is based on the revenue arrangements currently in place. The exact impact of ASC 606 will be dependent on facts and circumstances at adoption and could vary from quarter to quarter. New products or offerings, or changes to current offerings, may yield significantly different impacts than currently expected. Our conclusions will be reassessed periodically based on current facts and circumstances. We are also evaluating accounting systems, processes and internal controls over revenue recognition to assist us in the application of the new standard. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 2 —Fair value measurement The fair value measurements standard establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the standard are described Level 1—Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2—Inputs to the valuation methodology include: • Quoted market prices for similar assets or liabilities in active • Quoted prices for identical or similar assets or liabilities in inactive • Inputs other than quoted prices that are observable for the asset or • Inputs that are derived principally from or corroborated by observable market data by If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at March 31, 2019 and 2018, and December 31, 2018. Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices. The warrant liability was classified within level 3 of the fair value hierarchy because there was no active market for the warrant or for similar warrants. The fair value of the Series A and Series B warrants at March 31, 2018, was estimated by first applying a weighting of the income approach and the market approach to determine the equity value of the Company. An Option-Pricing Method (“OPM”) was then used to allocate the total equity value of the Company to the different classes of equity according to their rights and preferences. As the Company was a private company at March 31, 2018, the fair value measurement was based on significant inputs that are not observable in the market thus represents Level 3 inputs. As of March 31, 2019, and December 31, 2018, as a result of the Company’s November 2018 stock conversion of preferred shares into common shares, all Series A and Series B warrants outstanding are now exercisable into common stock and are no longer required to be remeasured at fair value on a recurring Trade-in guarantee liability is classified within level 3 of the fair value hierarchy because the fair value measurement is based on inputs that are not observable in the market, including the probability and timing of a customer upgrading to a new device and the value of the upgraded device. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following tables sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at fair value: March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 5,360 $ — $ — $ 5,360 Liabilities: Trade-in Guarantee $ — $ — $ — $ — December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 11,006 $ — $ — $ 11,006 Liabilities: Trade-in Guarantee** $ — $ — $ 268 $ 268 * Included in cash and cash equivalents on the condensed consolidated balance ** Included in deferred revenue on the condensed consolidated balance sheets. The table below sets forth a summary of changes in the fair value of the Company’s level 3 liabilities for the three months ended March 31, 2019 and 2018: Warrant Trade-In liability Guarantee Balance at January 1, 2019 $ — $ 268 Recognition of revenue — (268 ) Balance at March 31, 2019 $ — $ — Balance at January 1, 2018 $ 3,785 $ 805 New instrument — — Recognition of revenue — — Change in fair value 242 — Balance at March 31, 2018 $ 4,027 $ 805 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 3 —Inventory Inventory consisted of approximately the following: March 31, 2019 December 31, 2018 Devices - for resale $ 18,280 $ 11,319 Work in process 1,334 — Raw materials 7,538 8,826 Accessories 1,911 1,686 $ 29,063 $ 21,831 |
Warranty Liability
Warranty Liability | 3 Months Ended |
Mar. 31, 2019 | |
Guarantees And Product Warranties [Abstract] | |
Warranty Liability | NOTE 4 —Warranty Liability The table below sets forth the activity in the warranty liability, which is included in accrued expenses on the condensed consolidated balance sheet, for the three months ended March 31, 2019 and 2018: Balance, January 1, 2019 $ 1,103 Additions 442 Cost of warranty claims (352 ) Balance, March 31, 2019 $ 1,193 Balance, January 1, 2018 $ 1,742 Additions 121 Cost of warranty claims (372 ) Balance, March 31, 2018 $ 1,491 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5 —Borrowings Senior Credit Agreement The Company has a loan and security agreement (“LSA”) with East West Bank (the “Senior Lender”). The maximum borrowings available under the line of credit is $8,000 and will bear interest at 1% plus the Prime Rate with a maturity date of May 2019. As of both March 31, 2019 and December 31, 2018, the Company had remaining borrowing capacity of $8,000 against the line of credit. Long-Term Debt Riley Loan — On October 26, 2017 (the “Effective Date”), the Company entered into a Subordinated Term Loan and Security agreement (the “Loan Agreement”) with B. Riley Principal Investments, LLC (“BRPI”), an affiliate of B. Riley Financial, Inc., a shareholder of the Company. Under the original Loan Agreement, the Company could borrow principal up to $10,000 via a subordinated secured convertible promissory note (the “Convertible Note”), with an optional conversion feature as described below. During the year ended December 31, 2018, the Company amended the Loan Agreement to increase the available aggregate principal borrowings to $12,000. The 2018 amendments did not change the terms of the original Loan Agreement other than to provide a waiver of the defined prepayment penalties if any repayment does not reduce the principal amount outstanding below $10,000. The Loan Agreement, as amended, matures on September 1, 2022 (the “Maturity Date”) and carries a stated interest rate of 10% and provided that the first year of interest be compounded into the principal on October 26, 2018, with interest-only payments beginning thereafter. As of both March 31, 2019 and December 31, 2018, the total outstanding borrowings under the Loan Agreement, as amended, was Optional Conversion — On November 2, 2018, in conjunction with the Company’s conversion of all of its outstanding shares of preferred stock into shares of common stock (See Note 6) and the 15-to-1 reverse stock split, the Company amended the optional conversion terms of its existing Convertible Note. As amended the Convertible Note provides that at any time, on or prior to the Maturity Date, BRPI may elect to convert principal amounts outstanding, including accrued interest, as limited below, into shares of common stock at $8.87 per share. The number of shares of common stock to be issued upon conversion is limited to the sum of (A) the lesser of (i) the principal outstanding and (ii) the aggregate principal amount borrowed under the Loan Agreement to date multiplied by the Designated Percentage as described below, and (B) accrued interest. The “Designated Percentage” is one hundred percent (100%) if the conversion date is prior to the first anniversary of the Effective Date, seventy-five percent (75%) in Year 2 of the Loan Agreement, fifty percent (50%) in Year 3, twenty-five percent (25%) in Year 4, and twelve and a half of percent (12.5%) in the final year of the Loan Agreement on or prior to the Maturity Date. Promissory Notes Payable —In 2014 and 2017, the Company entered into agreements with one of its suppliers, whereby certain of its trade payables for royalties and royalty up-front payments were converted to payment plans. In December 2018, the Company amended its accounts payable financing agreements, effective January 1, 2019, which provides for the $736 outstanding balance to be paid in twenty equal quarterly installments. The amounts due under these agreements would be paid in quarterly installments over periods from two to four years, with interest ranging up to 8%. Remaining balances are $619 and $718 at March 31, 2019 and December 31, 2018, respectively. Other Financing Arrangements —In 2017, the Company entered three financing arrangements totaling approximately $472 with remaining maturity dates of June 2020 and August 2020. As of March 31, 2019 and December 31, 2018, the remaining balances are $184 and $238, respectively. Future aggregate annual principal payment on all long-term debt, excluding discount of $418, are as follows for the next 5 years as of March 31, 2019: Year Ending, December 31 st 2019 $ 148 2020 224 2021 144 2022 13,145 2023 143 $ 13,804 |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | NOTE 6 —Convertible Preferred Stock And Stockholders’ Equity Under the Company’s Amended and Restated Certificate of Incorporation dated October 23, 2017 the authorized capital stock of the Company consisted of 33,853,333 shares of capital stock (par value of $0.001 per share), comprising 18,666,666 shares of common stock and 15,186,664 shares of convertible preferred stock, of which 1,266,666 shares were designated as Series A-3, 1,186,666 shares were designated as Series A-2 convertible preferred stock (“Series A-2”), 1,733,333 shares were designated as Series A-1 convertible preferred stock (“Series A-1”), 9,333,333 shares were designated as Series A, and 1,666,666 shares have been designated as Series B convertible preferred stock (“Series B”). On November 2, 2018, the Company amended and restated its previous certificate of incorporation and adjusted its authorized capital stock (par value of $.001) to consist of 100,000,000 shares of common stock and 5,000,000 shares of preferred stock. On November 1, 2018, the Company also converted all outstanding shares of Series A, Series A-1, Series A-2 and Series B into shares of common stock. Prior to this conversion, the Company also approved the payment of dividends to all holders of Series A, Series A-1 and Series A-2 of record on this date. The value of the dividends of $6,539 were determined in accordance with the terms of the Amended and Restated Certificate of Incorporation dated October 23, 2017 based on the stated dividend rate per respective Series. The total Series A, Series A-1 and Series A-2 shares issued as dividends in the year ended December 31, 2018 was 944,694, 66,255 and 49,456, respectively. The dividends of $10,152 were recorded at fair value as of the date of Board approval. The total outstanding preferred shares of 13,277,864, inclusive of historical shares issued as dividends, were converted into common stock. Each outstanding share of common stock entitles the holder to one vote of each matter properly submitted to the stockholders of the Company for vote. During the three months ended March 31, 2019, no shares of preferred have been issued. On November 2, 2018, the Company entered into a Securities Purchase Agreement for the sale of 2,089,136 shares of common stock, under which 1,270,905 shares of common stock were sold as of December 31, 2018, at $7.18 per share for net proceeds of approximately $8,295. Issuance cost approximating $831 were incurred and netted against the proceeds within the condensed consolidated statements of stockholder’s equity (deficit). The Company sold an additional 227,628 shares of common stock for gross proceeds of $1,634 in January 2019. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2019 | |
Warrants [Abstract] | |
Warrants | NOTE 7 —Warrants During the three months ended March 31, 2019, there was no activity related to the Company’s warrants. The following table discloses warrants issued and outstanding as of both March 31, 2019 and December 31, 2018: Number of Exercise warrant Year of Issuance date price shares expiration Common November 2012 $ 6.00 7 2028 November 2012 $ 6.00 927 2020 November 2012 $ 14.50 22 2028 August 2016 $ 0.15 155,338 2023 Total warrants 156,294 |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 8 —Stock-based Compensation As of March 31, 2019, the Company had the 2012 Equity Incentive Plan (the “Option Plan”) in place. As of March 31, 2019, the number of shares available to be issued under the Option Plan was 459,075. The Option Plan provides for the grant of incentive and nonstatutory stock options (“Options”), stock appreciation rights (“SAR”), restricted stock awards (“RSA”), and restricted stock unit awards (“RSU”) to employees, nonemployee directors, and consultants of the Company. Awards granted under the Option Plan generally becomes exercisable ratably over a two-year or four-year period following the date of grant and expire ten years from the date of grant. At the discretion of the Company’s Board of Directors, certain awards may be exercisable immediately at the date of grant but are subject to a repurchase right, under which the Company may buy back any unvested shares at their original exercise price in the event of an employee’s termination prior to full vesting. All other awards are exercisable only to the extent vested. At March 31, 2019 and December 31, 2018, there were no shares that had been early exercised that were subject to the Company’s repurchase right at that date. The exercise price or strike price for Options and SARs granted under the Option Plan must generally be at least equal to 100% of the fair value of the Company’s common stock at the date of grant, as determined by the Board of Directors. The exercise price of incentive stock options granted under the Option Plan to ten percent stockholders must be at least equal to 110% of the fair value of the Company’s common stock at the date of grant, as determined by the Board of Directors, and are not exercisable after five years from the date of grant. Stock-based compensation expense for the three months ended March 31, 2019 and 2018 is as follows: March 31, 2019 March 31, 2018 Research and development $ 4 $ 5 Sales and marketing 11 8 General and administrative 31 15 Cost of revenues 1 5 $ 47 $ 33 Stock Options: Stock option activity for the three months ended March 31, 2019 is as follows: Weighted average Weighted average remaining Aggregate exercise price contractual life Intrinsic Options per share (in years) Value Outstanding at January 1, 2019 1,320,197 $ 0.77 7.99 $ 8,465 Options granted — $ — Options exercised (54,720 ) $ 0.75 Options forfeited (3,531 ) $ 0.92 Options cancelled — $ — Outstanding at March 31, 2019 1,261,946 $ 0.77 7.75 $ 12,836 Vested and expected to vest at March 31, 2019 (1) 1,261,946 $ 0.77 7.75 $ 12,836 Vested at March 31, 2019 767,573 $ 0.75 6.97 $ 7,820 As of March 31, 2019, there was approximately $707 of unamortized stock-based compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of three years. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 —Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance against its deferred tax assets. For the three months ended March 31, 2019 and 2018, the Company recorded provisions for income taxes of $295, and $534, respectively. On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the Tax Act), which significantly changes existing U.S. tax laws, including a reduction in the corporate tax rate from 35% to 21%, a move from a worldwide tax system to a territorial system, as well as other changes. The tax rate reduction was effective January 1, 2018. Beginning in 2018, the Company became subject to the global intangible low-taxed income (GILTI) provisions of the Tax Act on the income of the Company’s foreign subsidiary. The Company’s foreign subsidiaries are profitable in Q1 2019 and forecast profits for all of 2019. The GILIT subjects the income of the foreign subsidiaries to U.S. taxation. The Company’s accounting policy related to the GILTI is to treat GILTI related book/tax differences as period costs and to use the incremental cash tax savings approach in evaluating the Company’s U.S. net operating loss valuation allowance assessment. The Company's income tax returns are subject to examinations by the Internal Revenue Service and other tax authorities in various jurisdictions. In accordance with the guidance on the accounting for uncertainty in income taxes, the Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. These assessments can require considerable estimates and judgments. As of March 31, 2019, the gross amount of unrecognized tax benefits was approximately $6,000, of which $700, if recognized, would reduce the effective income tax rate in future periods. If the Company's estimate of income tax liabilities proves to be less than the ultimate assessment, then a further charge to expense would be required. If events occur and the payment of these amounts ultimately proves to be unnecessary, the reversal of the liabilities would result in tax benefits being recognized in the period when the Company determines the liabilities are no longer necessary. The Company does not anticipate any material changes to its uncertain tax positions during the next twelve months. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 —Commitments and Contingencies Royalty payments —The Company is required to pay per unit royalties to wireless essential patent holders and other providers of integrated technologies on mobile devices delivered, which, in aggregate, amount to less than 5% of net revenues associated with each unit, and expire in 2021 and 2023. Royalty expense for the three months ended March 31, 2019 and 2018 was $451 and $411, respectively, which are included in cost of revenues on the condensed consolidated statements of operations. General litigation —The Company is involved in lawsuits, claims, investigation, and proceedings that arise in the ordinary course of business. The Company records a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company reviews these provisions at least quarterly and adjusts them to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Based on its experience, the Company believes that any settled amounts is not a meaningful indicator of the Company’s potential liability pertaining to litigation matters. The Company believes that it has valid defenses with respect to legal matters pending against it. Nevertheless, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. Indemnification —Under the terms of its agreements with wireless carriers and other partners, the Company has agreed to provide indemnification for intellectual property infringement claims related to Company’s product sold by them to their end customers. From time to time, the Company receives notices from these wireless carriers and other partners of a claim for infringement of intellectual property rights potentially related to their products. These infringement claims have been settled, dismissed, have not been further pursued by the customers, or are pending for further action by the Company. Contingent severance obligations —The Company has agreements in place with certain key employees guaranteeing severance payments under certain circumstances. Generally, in the event of termination by the Company without cause, termination due to death or disability, or resignation for good reason, the Company is obligated to the pay the employees: (i) any time before a Change in Control, amounts up to $1,057 or (ii) if at any time within 12 months of a Change in Control, amounts up to $1,407. In addition, in the event of termination by the Company with cause, the Company is obligated to pay the employees up to $88. The Company is obligated to pay one of the employees $140 if the Company has not been acquired or undertaken an Initial Public Offering at an equity valuation in excess of $125,000 at the time of one the events as defined above. As of March 31, 2019, and December 31, 2018, no accrual has been recorded. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11 —Related Party Transactions Revenue transactions with a certain investor —During the three months ended March 31, 2018, the Company recognized revenue of $797 with an investor and holder of the August 2016 Series B warrants which were amended to common stock warrants in conjunction with the November 2018 preferred stock conversion event. The Company did not recognize any revenue with this investor during the three months ended March 31, 2019. Management Services Agreement— In October 2017, the Company entered into a management services agreement with B. Riley Principal Investments, an investor, pursuant to which B. Riley Investments agreed to provide advisory and consulting services to the Company. The Company incurred approximately $50 in related consulting fees in each of the three months ended March 31, 2019 and 2018. The closing of the Company’s IPO (see Note 14), the management services agreement was terminated in accordance with its terms. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | NOTE 12 — Net loss per share attributable to common stockholders for the three months ended March 31, 2018 was determined by increasing Net l 2019 2018 Numerator: Net loss allocable to common stockholders $ (6,206 ) $ (8,038 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 15,783,744 1,034,641 Net loss per share, basic and diluted $ (0.39 ) $ (7.77 ) The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive for the three months ended March 31, 2019 and 2018, respectively, are presented are as follows: 2019 2018 Shares of convertible preferred stock — 11,906,783 Shares subject to options to purchase common stock 1,261,946 1,088,221 Shares subject to warrants to purchase convertible preferred stock — 472,947 Shares subject to warrants to purchase common stock 156,294 — Shares subject to term debt optional conversion into convertible preferred stock — 1,163,764 Shares subject to term debt optional conversion into common stock 1,099,278 — Total 2,517,518 14,631,715 |
Entity Level Information
Entity Level Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Entity Level Information | NOTE 13 —Entity Level Information Segment Information —The Company operates in one reporting segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. The following table summarizes the revenue by region based on ship-to destinations for the three months ended March 31, 2019 and 2018: 2019 2018 U.S $ 20,090 $ 12,425 Canada and Latin America 3,645 2,252 Europe and Middle East 1,800 3,163 Asia Pacific 949 350 $ 26,484 $ 18,190 Long-lived assets located in the United States and Asia Pacific region were $1,690 and $465 and $2,013 and $393 as of March 31, 2019 and December 31, 2018, respectively. The composition of revenues for the three months ended March 31, 2019 and 2018 is follows: 2019 2018 Product Sales $ 26,332 $ 16,967 Services 152 1,223 Total revenues $ 26,484 $ 18,190 Concentrations of Credit Risk —The Company’s product revenues are concentrated in the technology industry , which is highly competitive and rapidly changing. Significant technological changes in the industry or customer requirements, or the emergence of competitive products with new capabilities or technologies, could adversely affect the Company’s consolidated operating results. Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. Cash and cash equivalents are deposited with high-quality, federally insured commercial banks in the United States and cash balances are in excess of federal insurance limits at March 31, 2019 and December 31, 2018. The Company generally does not require collateral or other security in support of accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. The Company analyzes the need for reserves for potential credit losses and records allowances for doubtful accounts when necessary. The Company had allowances for such losses totaling approximately $7 and $11 at March 31, 2019 and December 31, 2018, respectively. Receivables from three customers approximated 49%, 24%, and 16% at March 31, 2019 and two customers approximated 44% and 43% of total accounts receivable at December 31, 2018. Revenue from customers with concentration greater than 10% in the three months ended March 31, 2019 and 2018 accounted for approximately the following percentage of total revenues: 2019 2018 Customer A 37% * Customer B 14% 38% Customer C 13% 6% Customer D * 17% Customer E * 10% * Customer revenue did not exceed 10% in the respective |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 —SUBSEQUENT EVENTS On May 14, 2019, the Company closed an initial public offering (“IPO’) in which the Company sold 3,571,429 shares of its common stock, at a price to the public of $11.00 per share. On May 22, 2019, the Company sold an additional 505,714 shares of common stock, and our Chief Executive Officer sold 30,000 shares of common stock, at a price to the public of $11.00 per share pursuant to the exercise of the underwriters’ option to purchase additional shares. The offer and sale of the shares in the IPO were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-230887), which was declared effective by the SEC on May 9, 2019. The Company raised approximately The Company’s board of directors adopted, and its stockholders approved, the 2019 Employee Stock Purchase Plan and the 2019 Equity Incentive Plan in March 2019 and April 2019, respectively, each which became effective in connection with the IPO. There are Plan. Additionally, the number of shares of common stock reserved for issuance under the 2019 Employee Stock Purchase Plan will automatically increase on January 1 of each calendar year for 10 years, starting January 1, 2020, and ending on, and including, January 1, 2029, in an amount equal to the lesser of 1% of the total number of shares of capital stock outstanding on December 31 st On May 10, 2019, the Company issued 155,338 shares of common stock upon the exercise of warrants in exchange for total related exercise cash proceeds of $23. On May 13, 2019, the Company granted a fully vested restricted stock award of 383,197 shares, and issued 210,758 net shares of common stock after withholding 172,439 shares of common stock to satisfy tax obligations associated with the grant, to the Company’s CEO as a bonus pursuant to his employment agreement. |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Company And Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business —Sonim Technologies, Inc. was incorporated in the state of Delaware on August 5, 1999 and is headquartered in San Mateo, California. The Company is a leading U.S. provider of ultra-rugged mobile phones and accessories designed specifically for task workers physically engaged in their work environments, often in mission-critical roles. |
Financial Statement Presentation | Financial Statement Presentation —The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“ U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. The unaudited interim condensed consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Significant Accounting Policies and Recent Accounting Pronouncements) included in the Company’s audited consolidated financial statements for the year ended December 31, 2018, as filed with the SEC on Form S-1 (the “2018 Report”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The unaudited condensed consolidated balance sheet at December 31, 2018 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by GAAP for annual financial statements. |
Principles of Consolidation | Principles of Consolidation — The accompanying condensed consolidated financial statements include the accounts of Sonim Technologies. Inc. and its wholly-owned foreign subsidiaries, Sonim Technologies Spain SL, Sonim Technologies India Private Limited, Sonim Technologies (Shenzhen) Limited, Sonim Technologies (Hong Kong) Limited, and Sonim Communications India Private Limited (collectively, the “Company”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Estimates | Estimates —The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates include, but are not limited to, estimates related to revenue recognition; valuation assumptions regarding the determination of the fair value of common stock, as well as stock warrants; the useful lives of our long-lived assets; product warranties; loss contingencies; and the recognition and measurement of income tax assets and liabilities, including uncertain tax positions; The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. |
Significant accounting policies | Significant accounting policies — There have been no material changes in the accounting policies from those disclosed in the audited 2018 consolidated financial statements and the related notes included in the filed Form S-1. Revenue Recognition — We recognize revenues primarily from the sale of products. We also enter into multiple-element agreements that include a combination of products and NRE services. Revenues from the sale of our mobile phones and accessories is recognized when all of the following conditions are met per Accounting Standards Codification, or ASC, Topic 605, Revenue Recognition, or ASC 605: (i) there is persuasive evidence of an arrangement; (ii) the product has been delivered to the customer; (iii) the collection of the fees is reasonably assured; and (iv) the amount of fees to be paid by the customer is fixed or determinable. Terms of product sales are generally FOB destination. Revenue recognition also incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. Terms of product sales are generally FOB destination. Revenue recognition also incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, certain distributors are able to exchange certain products based on the number of qualified purchases made during the period. The Company monitors and tracks these programs and records a provision, at the time of the sale, for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. When revenue arrangements involve multiple elements, each element, referred to as a deliverable, is evaluated to determine whether it represents a separate unit of accounting in accordance with ASC 605-25, Revenue Recognition – Multiple-Element Arrangements. software that is essential to the functionality of the hardware, revenues are recognized according to the milestone method in accordance with the provisions of ASC Topic 605-35, Construction-Type and Production- Type Contract . Under this method, we recognize revenues from milestone payments when: (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement, and (i) we do not have ongoing performance requirements related to the achievement of the milestone earned. Milestone payments are considered substantive if all of the following conditions are met: the milestone payment (i) is commensurate with either our performance to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable relative to all of the deliverables and payment terms ( other potential milestone consideration) within the arrangement. If a milestone is deemed non-substantive, we defer, if applicable, and recognize such non-substantive milestones over the estimated period of performance applicable to each agreement on a straight-line basis, as appropriate. |
Revenue Recognition | Revenue Recognition — We recognize revenues primarily from the sale of products. We also enter into multiple-element agreements that include a combination of products and NRE services. Revenues from the sale of our mobile phones and accessories is recognized when all of the following conditions are met per Accounting Standards Codification, or ASC, Topic 605, Revenue Recognition, or ASC 605: (i) there is persuasive evidence of an arrangement; (ii) the product has been delivered to the customer; (iii) the collection of the fees is reasonably assured; and (iv) the amount of fees to be paid by the customer is fixed or determinable. Terms of product sales are generally FOB destination. Revenue recognition also incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. Terms of product sales are generally FOB destination. Revenue recognition also incorporates allowances for discounts, price protection, returns and customer incentives that can be reasonably estimated. In addition to cooperative marketing and other incentive programs, the Company has arrangements with some distributors, which allow for price protection and limited rights of return, generally through stock rotation programs. Under the price protection programs, the Company gives distributors credits for the difference between the original price paid and the Company’s then current price. Under the stock rotation programs, certain distributors are able to exchange certain products based on the number of qualified purchases made during the period. The Company monitors and tracks these programs and records a provision, at the time of the sale, for future payments or credits granted as reductions of revenue based on historical experience. Recorded revenues are reduced by these allowances. When revenue arrangements involve multiple elements, each element, referred to as a deliverable, is evaluated to determine whether it represents a separate unit of accounting in accordance with ASC 605-25, Revenue Recognition – Multiple-Element Arrangements. software that is essential to the functionality of the hardware, revenues are recognized according to the milestone method in accordance with the provisions of ASC Topic 605-35, Construction-Type and Production- Type Contract . Under this method, we recognize revenues from milestone payments when: (i) the milestone event is substantive and its achievability was not reasonably assured at the inception of the agreement, and (i) we do not have ongoing performance requirements related to the achievement of the milestone earned. Milestone payments are considered substantive if all of the following conditions are met: the milestone payment (i) is commensurate with either our performance to achieve the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from our performance to achieve the milestone, (ii) relates solely to past performance, and (iii) is reasonable relative to all of the deliverables and payment terms ( other potential milestone consideration) within the arrangement. If a milestone is deemed non-substantive, we defer, if applicable, and recognize such non-substantive milestones over the estimated period of performance applicable to each agreement on a straight-line basis, as appropriate. |
Reverse Stock Split | Reverse Stock Split —In November 2018, the Company’s stockholders approved a one-for-fifteen reverse stock split of its common and convertible preferred stock which was effected on November 2, 2018. The par value of the common stock and convertible preferred stock were not adjusted as a result of the reverse stock split. Accordingly, all share and per share amounts for the period presented in the consolidated financial statements and notes thereto have been adjusted retrospectively to reflect this reverse stock split. |
Deferred offering costs | Deferred Offering Costs — On May 9, 2019, our registration statement on Form S-1 (File No. 333-230887) related to our initial public offering (“IPO”) was declared effective by the SEC, and our common stock began trading on The Nasdaq Stock Market LLC (“Nasdaq”) on May 10, 2019. Our IPO closed on May 14, 2019. Deferred offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s IPO, are capitalized and will be offset against proceeds from the IPO within stockholders’ equity. As of December 31, 2018, there was $63 of deferred offering costs within other non-current assets on the condensed consolidated balance sheets. During the three months ended March 31, 2019, an additional $1,709 in deferred offering costs were incurred. In connection with the IPO, as of March 31, 2019, all deferred offering costs were charged to prepaid expenses. |
New accounting pronouncements | New accounting pronouncements: Pronouncements adopted in 2018: The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s consolidated financial statements with another public company, which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception. Distinguishing Liabilities from Equity Pronouncements not yet adopted: In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718) In October 2016, the FASB issued ASU 2016-16 , Income Taxes—Intra-Entity Transfers of Assets Other Than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In January 2016, the FASB issued ASU 2016-01 , Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB, issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to The guidance permits two methods of adoption, the full retrospective method applying the standard to each prior reporting period presented, or the modified retrospective method with a cumulative effect of initially applying the guidance recognized at the date of initial application. The standard also allows entities to apply certain practical expedients at their discretion. We currently anticipate adopting the standard using the modified retrospective method with a cumulative adjustment and will provide additional disclosures comparing results to previous U.S. GAAP in our fiscal 2019 consolidated financial statements. We plan to apply the new revenue standards only to contracts not completed as of the date of initial application, referred to as open While the Company’s evaluation of the impact of this new guidance is not complete, we believe the impact of the new standard related to revenue recognition will not have a material impact on our consolidated financial statements other than potentially expanded disclosures. More judgements and estimates are required under Topic 606 than are required under Topic 605, including estimating the stand alone selling price (“SSP”) for each performance obligation identified within our arrangements with multiple elements and estimating the amount of variable considerations at inception of the arrangement. We will continue to evaluate sales incentives provided to our customers in order to determine the transaction price at inception of the This preliminary assessment is based on the revenue arrangements currently in place. The exact impact of ASC 606 will be dependent on facts and circumstances at adoption and could vary from quarter to quarter. New products or offerings, or changes to current offerings, may yield significantly different impacts than currently expected. Our conclusions will be reassessed periodically based on current facts and circumstances. We are also evaluating accounting systems, processes and internal controls over revenue recognition to assist us in the application of the new standard. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Assets and Liabilities | The following tables sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities at fair value: March 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 5,360 $ — $ — $ 5,360 Liabilities: Trade-in Guarantee $ — $ — $ — $ — December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 11,006 $ — $ — $ 11,006 Liabilities: Trade-in Guarantee** $ — $ — $ 268 $ 268 * Included in cash and cash equivalents on the condensed consolidated balance ** Included in deferred revenue on the condensed consolidated balance sheets. |
Summary of Changes in Fair Value of Company's Level 3 Financial Liabilities | The table below sets forth a summary of changes in the fair value of the Company’s level 3 liabilities for the three months ended March 31, 2019 and 2018: Warrant Trade-In liability Guarantee Balance at January 1, 2019 $ — $ 268 Recognition of revenue — (268 ) Balance at March 31, 2019 $ — $ — Balance at January 1, 2018 $ 3,785 $ 805 New instrument — — Recognition of revenue — — Change in fair value 242 — Balance at March 31, 2018 $ 4,027 $ 805 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of approximately the following: March 31, 2019 December 31, 2018 Devices - for resale $ 18,280 $ 11,319 Work in process 1,334 — Raw materials 7,538 8,826 Accessories 1,911 1,686 $ 29,063 $ 21,831 |
Warranty Liability (Tables)
Warranty Liability (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Guarantees And Product Warranties [Abstract] | |
Schedule of Warranty Liability Included in Accrued Expenses on Condensed Consolidated Balance Sheet | The table below sets forth the activity in the warranty liability, which is included in accrued expenses on the condensed consolidated balance sheet, for the three months ended March 31, 2019 and 2018: Balance, January 1, 2019 $ 1,103 Additions 442 Cost of warranty claims (352 ) Balance, March 31, 2019 $ 1,193 Balance, January 1, 2018 $ 1,742 Additions 121 Cost of warranty claims (372 ) Balance, March 31, 2018 $ 1,491 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Future Aggregate Annual Principal Payment on All Long-Term Debt | Future aggregate annual principal payment on all long-term debt, excluding discount of $418, are as follows for the next 5 years as of March 31, 2019: Year Ending, December 31 st 2019 $ 148 2020 224 2021 144 2022 13,145 2023 143 $ 13,804 |
Warrants (Tables)
Warrants (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Warrants Issued and Outstanding | During the three months ended March 31, 2019, there was no activity related to the Company’s warrants. The following table discloses warrants issued and outstanding as of both March 31, 2019 and December 31, 2018: Number of Exercise warrant Year of Issuance date price shares expiration Common November 2012 $ 6.00 7 2028 November 2012 $ 6.00 927 2020 November 2012 $ 14.50 22 2028 August 2016 $ 0.15 155,338 2023 Total warrants 156,294 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the three months ended March 31, 2019 and 2018 is as follows: March 31, 2019 March 31, 2018 Research and development $ 4 $ 5 Sales and marketing 11 8 General and administrative 31 15 Cost of revenues 1 5 $ 47 $ 33 |
Summary of Stock Option Activity | Stock option activity for the three months ended March 31, 2019 is as follows: Weighted average Weighted average remaining Aggregate exercise price contractual life Intrinsic Options per share (in years) Value Outstanding at January 1, 2019 1,320,197 $ 0.77 7.99 $ 8,465 Options granted — $ — Options exercised (54,720 ) $ 0.75 Options forfeited (3,531 ) $ 0.92 Options cancelled — $ — Outstanding at March 31, 2019 1,261,946 $ 0.77 7.75 $ 12,836 Vested and expected to vest at March 31, 2019 (1) 1,261,946 $ 0.77 7.75 $ 12,836 Vested at March 31, 2019 767,573 $ 0.75 6.97 $ 7,820 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | 2019 2018 Numerator: Net loss allocable to common stockholders $ (6,206 ) $ (8,038 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 15,783,744 1,034,641 Net loss per share, basic and diluted $ (0.39 ) $ (7.77 ) |
Summary of Potentially Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share | The potentially dilutive common shares that were excluded from the calculation of diluted net loss per share because their effect would have been antidilutive for the three months ended March 31, 2019 and 2018, respectively, are presented are as follows: 2019 2018 Shares of convertible preferred stock — 11,906,783 Shares subject to options to purchase common stock 1,261,946 1,088,221 Shares subject to warrants to purchase convertible preferred stock — 472,947 Shares subject to warrants to purchase common stock 156,294 — Shares subject to term debt optional conversion into convertible preferred stock — 1,163,764 Shares subject to term debt optional conversion into common stock 1,099,278 — Total 2,517,518 14,631,715 |
Entity Level Information (Table
Entity Level Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Region | Segment Information —The Company operates in one reporting segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the chief executive officer, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. The following table summarizes the revenue by region based on ship-to destinations for the three months ended March 31, 2019 and 2018: 2019 2018 U.S $ 20,090 $ 12,425 Canada and Latin America 3,645 2,252 Europe and Middle East 1,800 3,163 Asia Pacific 949 350 $ 26,484 $ 18,190 |
Composition of Revenues | The composition of revenues for the three months ended March 31, 2019 and 2018 is follows: 2019 2018 Product Sales $ 26,332 $ 16,967 Services 152 1,223 Total revenues $ 26,484 $ 18,190 |
Percentage of Total Revenues | Revenue from customers with concentration greater than 10% in the three months ended March 31, 2019 and 2018 accounted for approximately the following percentage of total revenues: 2019 2018 Customer A 37% * Customer B 14% 38% Customer C 13% 6% Customer D * 17% Customer E * 10% * Customer revenue did not exceed 10% in the respective |
The Company and its Significa_3
The Company and its Significant Accounting Policies - Additional Information (Details) $ in Thousands | Nov. 02, 2018 | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Company And Significant Accounting Policies [Line Items] | |||
Reverse stock split ratio | 0.0667 | ||
IPO | |||
Company And Significant Accounting Policies [Line Items] | |||
Deferred offering costs | $ 1,709 | $ 63 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Fair Value Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Trade-in Guarantee | ||
Liabilities: | ||
Liabilities | $ 268 | |
Money Market Funds | ||
Assets: | ||
Assets | $ 5,360 | 11,006 |
Level 1 | Money Market Funds | ||
Assets: | ||
Assets | $ 5,360 | 11,006 |
Level 3 | Trade-in Guarantee | ||
Liabilities: | ||
Liabilities | $ 268 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Changes in Fair Value of Company's Level 3 Financial Liabilities (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Trade-In Guarantee | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 268 | $ 805 |
Recognition of revenue | $ (268) | |
Ending Balance | 805 | |
Warrant Liability | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 3,785 | |
Change in fair value | 242 | |
Ending Balance | $ 4,027 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Devices - for resale | $ 18,280 | $ 11,319 |
Work in process | 1,334 | |
Raw materials | 7,538 | 8,826 |
Accessories | 1,911 | 1,686 |
Total inventory | $ 29,063 | $ 21,831 |
Warranty Liability - Schedule o
Warranty Liability - Schedule of Warranty Liability Which is Included in Accrued Expenses on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Guarantees And Product Warranties [Abstract] | ||
Beginning balance | $ 1,103 | $ 1,742 |
Additions | 442 | 121 |
Cost of warranty claims | (352) | (372) |
Ending balance | $ 1,193 | $ 1,491 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | Nov. 02, 2018$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)FinancingArrangement | Jan. 01, 2019USD ($)Installment | Oct. 26, 2017USD ($) |
Debt Instrument [Line Items] | ||||||
Reverse stock split | 15-to-1 | |||||
Reverse stock split ratio | 0.0667 | |||||
Long-term debt | $ 13,804,000 | |||||
Other Financing Arrangements | ||||||
Debt Instrument [Line Items] | ||||||
Number of financing arrangements | FinancingArrangement | 3 | |||||
Debt instrument, face amount | $ 472,000 | |||||
Long-term debt | 184,000 | $ 238,000 | ||||
Debt instrument, discount | 418,000 | |||||
Other Financing Arrangement One | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | 2020-06 | |||||
Other Financing Arrangement Two | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | 2020-08 | |||||
Loan and Security Agreement | East West Bank | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings available | $ 8,000,000 | |||||
Line of credit facility, interest rate during period | 1.00% | |||||
Line of credit facility, maturity date | 2019-05 | |||||
Remaining borrowing capacity | $ 8,000,000 | 8,000,000 | ||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowings available | 12,000,000 | $ 10,000,000 | ||||
Minimum principal amount outstanding to have waiver of defined prepayment penalties | $ 10,000,000 | |||||
Debt instrument, stated interest rate | 10.00% | |||||
Line of credit facility, maturity date | Sep. 1, 2022 | |||||
Outstanding borrowings | 12,000,000 | $ 12,000,000 | ||||
Total accrued interest outstanding | 1,001,000 | 1,001,000 | ||||
Debt instrument, convertible, price of common stock per share | $ / shares | $ 8.87 | |||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | Prior to First Anniversary of Effective Date | ||||||
Debt Instrument [Line Items] | ||||||
Designated percentage | 100.00% | |||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | Year Two of Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Designated percentage | 75.00% | |||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | Year Three of Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Designated percentage | 50.00% | |||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | Year Four of Loan Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Designated percentage | 25.00% | |||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | Final Year of Agreement on or Prior to Maturity Date | ||||||
Debt Instrument [Line Items] | ||||||
Designated percentage | 12.50% | |||||
Promissory Notes Payable | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, outstanding balance | $ 619,000 | $ 718,000 | $ 736,000 | |||
Debt instrument, periodic payment, number of equal quarterly installments | Installment | 20 | |||||
Debt instrument, frequency of periodic payment | quarterly | |||||
Promissory Notes Payable | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, payment term | 2 years | |||||
Promissory Notes Payable | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, stated interest rate | 8.00% | |||||
Debt instrument, payment term | 4 years |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Aggregate Annual Principal Payment on All Long-Term Debt (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 148 |
2020 | 224 |
2021 | 144 |
2022 | 13,145 |
2023 | 143 |
Long-term debt | $ 13,804 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2017 | Jan. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Nov. 02, 2018 | Nov. 01, 2018 |
Class Of Stock [Line Items] | |||||||
Authorized capital stock | 33,853,333 | ||||||
Common stock, shares authorized | 18,666,666 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||
Capital stock par value | $ 0.001 | $ 0.001 | |||||
Convertible preferred stock | 5,000,000 | ||||||
Dividends, value | $ 6,539 | ||||||
Dividends, fair value | $ 10,152 | ||||||
Preferred shares converted into common stock | 13,277,864 | ||||||
Preferred stock, shares issued | 0 | ||||||
Proceeds from issuance of common stock, net of costs | $ 1,604 | ||||||
Securities Purchase Agreement | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, number of shares available for sale | 2,089,136 | ||||||
Proceeds from issuance of common stock, net of costs | $ 1,634 | $ 8,295 | |||||
Issuance cost | $ 831 | ||||||
Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Shares issued and sold | 227,628 | ||||||
Common Stock | Securities Purchase Agreement | |||||||
Class Of Stock [Line Items] | |||||||
Shares issued and sold | 227,628 | 1,270,905 | |||||
Common stock, shares issued price per share | $ 7.18 | $ 7.18 | |||||
Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Convertible preferred stock | 15,186,664 | ||||||
Series A-3 Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Convertible preferred stock | 1,266,666 | ||||||
Series A-2 Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Convertible preferred stock | 1,186,666 | ||||||
Number of shares issued as dividends | 49,456 | ||||||
Series A-1 Convertible Preferred Stock [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Convertible preferred stock | 1,733,333 | ||||||
Number of shares issued as dividends | 66,255 | ||||||
Series A Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Convertible preferred stock | 9,333,333 | ||||||
Number of shares issued as dividends | 944,694 | ||||||
Series B Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Convertible preferred stock | 1,666,666 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Issued and Outstanding (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Number of warrant shares | 156,294 |
Issuance Date, November 2012 Tranche One | |
Class Of Warrant Or Right [Line Items] | |
Exercise price | $ / shares | $ 6 |
Number of warrant shares | 7 |
Year of expiration | 2028 |
Issuance Date, November 2012 Tranche Two | |
Class Of Warrant Or Right [Line Items] | |
Exercise price | $ / shares | $ 6 |
Number of warrant shares | 927 |
Year of expiration | 2020 |
Issuance Date, November 2012 Tranche Three | |
Class Of Warrant Or Right [Line Items] | |
Exercise price | $ / shares | $ 14.50 |
Number of warrant shares | 22 |
Year of expiration | 2028 |
Issuance Date, August 2016 | |
Class Of Warrant Or Right [Line Items] | |
Exercise price | $ / shares | $ 0.15 |
Number of warrant shares | 155,338 |
Year of expiration | 2023 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares exercised | 54,720 | |
Unamortized stock-based compensation cost related to unvested stock options | $ 707 | |
Unamortized stock-based compensation cost, weighted average period of recognition | 3 years | |
2012 Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares available to be issued | 459,075 | |
Expiration period | 10 years | |
Number of shares exercised | 0 | 0 |
2012 Equity Incentive Plan | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 2 years | |
2012 Equity Incentive Plan | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 4 years | |
2012 Equity Incentive Plan | Options and SARs | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise price options granted from fair value common stock, percent | 100.00% | |
2012 Equity Incentive Plan | Granted to Ten Percent Stockholders | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise price options granted from fair value common stock, percent | 110.00% | |
2012 Equity Incentive Plan | Granted to Ten Percent Stockholders | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Vesting period | 5 years |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 47 | $ 33 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 4 | 5 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 11 | 8 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 31 | 15 |
Cost of revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1 | $ 5 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options Outstanding at January 1, 2019 | 1,320,197 | |
Options exercised | (54,720) | |
Options forfeited | (3,531) | |
Options cancelled | 0 | |
Options Outstanding at March 31, 2019 | 1,261,946 | 1,320,197 |
Outstanding at January, 1, 2019, Weighted average exercise price per share | $ 0.77 | |
Options exercised, Weighted average exercise price per share | 0.75 | |
Options forfeited, Weighted average exercise price per share | 0.92 | |
Outstanding at March 31, 2019, Weighted average exercise price per share | $ 0.77 | $ 0.77 |
Outstanding, Weighted average remaining contractual life (in years) | 7 years 9 months | 7 years 11 months 26 days |
Outstanding, Aggregate Intrinsic Value | $ 12,836 | $ 8,465 |
Options Vested and expected to vest | 1,261,946 | |
Options Vested | 767,573 | |
Vested and expected to vest, Weighted average exercise price per share | $ 0.77 | |
Vested, Weighted average exercise price per share | $ 0.75 | |
Vested and expected to vest, Weighted average remaining contractual life (in years) | 7 years 9 months | |
Vested, Weighted average remaining contractual life (in years) | 6 years 11 months 19 days | |
Vested and expected to vest, Aggregate Intrinsic Value | $ 12,836 | |
Vested, Aggregate Intrinsic Value | $ 7,820 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provisions for income taxes | $ 295 | $ 534 | |
Corporate tax rate | 21.00% | 35.00% | |
Gross amount of unrecognized tax benefits | $ 6,000 | ||
Unrecognized tax benefits that would reduce effective tax rate | $ 700 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)Employee | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Loss Contingencies [Line Items] | |||
Severance obligation change in control period | 12 months | ||
Number of employee | Employee | 1 | ||
Severance obligation on event of acquisition or initial public offering. | $ 140,000 | ||
Contingent severance obligation accrual | 0 | $ 0 | |
Cost of Revenues | |||
Loss Contingencies [Line Items] | |||
Royalty expense | $ 451,000 | $ 411,000 | |
Wireless Essential Patent Holders | |||
Loss Contingencies [Line Items] | |||
Royalty expire year | 2021 | ||
Other Providers of Integrated Technologies | |||
Loss Contingencies [Line Items] | |||
Royalty expire year | 2023 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Severance obligation before change in control | $ 1,057,000 | ||
Severance obligation change in control | 1,407,000 | ||
Severance obligation in event of termination with cause | $ 88,000 | ||
Maximum | Wireless Essential Patent Holders | |||
Loss Contingencies [Line Items] | |||
Royalty payment percent of net revenues | 5.00% | ||
Maximum | Other Providers of Integrated Technologies | |||
Loss Contingencies [Line Items] | |||
Royalty payment percent of net revenues | 5.00% | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Equity valuation threshold limit in severance obligation | $ 125,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investor and Holder of August 2016 Series B Warrants | ||
Related Party Transaction [Line Items] | ||
Revenue from related party | $ 0 | $ 797 |
B . Riley Principal Investments | ||
Related Party Transaction [Line Items] | ||
Consulting fees | $ 50 | $ 50 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net loss allocable to common stockholders | $ (6,206) | $ (8,038) |
Denominator: | ||
Weighted–average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 15,783,744 | 1,034,641 |
Net loss per share attributable to common stockholders, basic and diluted | $ (0.39) | $ (7.77) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Summary of Potentially Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 2,517,518 | 14,631,715 |
Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 11,906,783 | |
Shares Subject to Options to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 1,261,946 | 1,088,221 |
Shares Subject to Warrants to Purchase Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 472,947 | |
Shares Subject to Warrants to Purchase Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 156,294 | |
Shares Subject to Term Debt Optional Conversion into Convertible Preferred Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 1,163,764 | |
Shares Subject to Term Debt Optional Conversion into Common Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 1,099,278 |
Entity Level Information - Addi
Entity Level Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of reporting segment | Segment | 1 | |
Allowance for credit losses | $ 7 | $ 11 |
Receivables | Customer Concentration | Customer One | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 49.00% | 44.00% |
Receivables | Customer Concentration | Customer Two | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 24.00% | 43.00% |
Receivables | Customer Concentration | Customer Three | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 16.00% | |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 1,690 | $ 2,013 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 465 | $ 393 |
Entity Level Information - Summ
Entity Level Information - Summary of Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 26,484 | $ 18,190 |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 20,090 | 12,425 |
Canada and Latin America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 3,645 | 2,252 |
Europe and Middle East [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 1,800 | 3,163 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 949 | $ 350 |
Entity Level Information - Comp
Entity Level Information - Composition of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 26,484 | $ 18,190 |
Product Sales | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | 26,332 | 16,967 |
Services | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 152 | $ 1,223 |
Entity Level Information - Perc
Entity Level Information - Percentage of Total Revenues (Details) - Revenues - Customer Concentration | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Customer A | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 37.00% | |
Customer B | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 14.00% | 38.00% |
Customer C | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 13.00% | 6.00% |
Customer D | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 17.00% | |
Customer E | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 10.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | May 22, 2019 | May 14, 2019 | May 13, 2019 | May 10, 2019 | Mar. 31, 2019 |
2019 Employee Stock Purchase Plan | |||||
Subsequent Event [Line Items] | |||||
Common stock reserved for issuance description | Additionally, the number of shares of common stock reserved for issuance under the 2019 Employee Stock Purchase Plan will automatically increase on January 1 of each calendar year for 10 years, starting January 1, 2020, and ending on, and including, January 1, 2029, in an amount equal to the lesser of 1% of the total number of shares of capital stock outstanding on December 31st of the prior calendar year, and (ii) 500,000 shares, unless the board of directors or compensation committee determines prior to such date that there will be a lesser increase, or no increase. | ||||
2019 Plan | |||||
Subsequent Event [Line Items] | |||||
Common stock reserved for issuance description | 1,885,039 shares of common stock are reserved for future issuance under the 2019 Equity Incentive Plan, plus the number of shares subject to outstanding stock options or other stock awards that were granted under the Option Plan that are forfeited, terminated, expire or are otherwise not issued. Additionally, the number of shares of common stock reserved for issuance under the 2019 Equity Incentive Plan will automatically increase on January 1 of each calendar year for 10 years, starting January 1, 2020 and ending on and including January 1, 2029, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31 of the prior calendar year, unless the board of directors or compensation committee determines prior to the date of increase that there will be a lesser increase, or no increase. | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
IPO closing date | May 14, 2019 | ||||
Subsequent Event | 2019 Employee Stock Purchase Plan | |||||
Subsequent Event [Line Items] | |||||
Common stock, number of shares available for sale | 337,007 | ||||
Period in which reserved shares will increase annually | 10 years | ||||
Increase in common stock reserved for issuance as a percentage of total number of shares of capital stock outstanding on the last day of the prior calendar year | 1.00% | ||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding on last day of prior calendar year | 500,000 | ||||
Subsequent Event | 2019 Plan | |||||
Subsequent Event [Line Items] | |||||
Common stock, number of shares available for sale | 1,885,039 | ||||
Period in which reserved shares will increase annually | 10 years | ||||
Increase in common stock reserved for issuance as a percentage of total number of shares of capital stock outstanding on the last day of the prior calendar year | 5.00% | ||||
Common Stock | |||||
Subsequent Event [Line Items] | |||||
Shares issued and sold | 227,628 | ||||
Common Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Shares issued upon exercise of warrants | 155,338 | ||||
Proceeds from issuance of shares upon exercise of warrants | $ 23 | ||||
Common Stock | Subsequent Event | Chief Executive Officer | |||||
Subsequent Event [Line Items] | |||||
Restricted stock award, fully vested shares | 383,197 | ||||
Restricted stock award, net shares issued | 210,758 | ||||
Restricted stock award, shares withheld to satisfy tax obligations | 172,439 | ||||
Common Stock | IPO | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Shares issued and sold | 505,714 | 3,571,429 | |||
Shares issued and sold, price per share | $ 11 | $ 11 | |||
Net proceeds from issuance of IPO | $ 37,606 | ||||
Underwriting discounts and commissions | 3,139 | ||||
Offering expenses paid | $ 4,102 | ||||
Common Stock | Over-Allotment | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Shares issued and sold | 30,000 | ||||
Shares issued and sold, price per share | $ 11 |