Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 05, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 Public Float | $ 52,801,187 | ||
Entity Common Stock, Shares Outstanding | 66,317,949 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-38907 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, State or Province | TX | ||
Entity Address, Address Line One | 6836 Bee Cave Road Building 1, | ||
Entity Address, Address Line Two | Suite 279 | ||
Entity Address, City or Town | Austin | ||
Entity Tax Identification Number | 94-3336783 | ||
Entity Address, Postal Zip Code | 78746 | ||
City Area Code | 650 | ||
Local Phone Number | 378-8100 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain information required by Part III, Items 10-14 of this Form 10-K is incorporated by reference to the Registrant's Proxy Statement for the 2021 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Form 10-K, provided that if such Proxy Statement is not filed within such period, such information will be included in an amendment to this Form 10-K to be filed within such 120-day period. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 22,141 | $ 11,298 |
Accounts receivable, net | 4,605 | 10,082 |
Inventory | 11,344 | 19,531 |
Prepaid expenses and other current assets | 7,481 | 6,430 |
Total current assets | 45,571 | 47,341 |
Property and equipment, net | 843 | 1,442 |
Other assets | 3,898 | 6,676 |
Total assets | 50,312 | 55,459 |
Liabilities and stockholders' equity | ||
Current portion of long-term debt | 177 | 9,821 |
Accounts payable | 8,856 | 7,234 |
Accrued expenses | 11,436 | 10,265 |
Deferred revenue | 5 | 291 |
Total current liabilities | 20,474 | 27,611 |
Income tax payable | 1,243 | 1,961 |
Long-term debt, less current portion | 185 | 362 |
Total liabilities | 21,902 | 29,934 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity | 28,410 | 25,525 |
Common stock, $0.001 par value per share; 100,000,000 shares authorized: and 66,310,867 and 20,437,235 shares issued and outstanding at, December 31, 2020 and December 31, 2019, respectively. | 66 | 20 |
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized | ||
Additional paid-in capital | 224,522 | 191,751 |
Accumulated deficit | (196,178) | (166,246) |
Total stockholders’ equity | 28,410 | 25,525 |
Total liabilities and stockholders' equity | $ 50,312 | $ 55,459 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
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 | 66,310,867 | 20,437,235 |
Common stock, shares outstanding | 66,310,867 | 20,437,235 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Net revenues | $ 63,992 | $ 116,251 |
Cost of revenues | 48,781 | 81,742 |
Gross profit | 15,211 | 34,509 |
Operating expenses: | ||
Research and development | 16,218 | 26,064 |
Sales and marketing | 10,411 | 13,908 |
General and administrative | 9,834 | 15,088 |
Legal expenses | 6,462 | 1,094 |
Restructuring costs | 1,546 | 736 |
Total operating expenses | 44,471 | 56,890 |
Loss from operations | (29,260) | (22,381) |
Interest expense | (759) | (1,522) |
Other expense, net | (434) | (543) |
Loss before income taxes | (30,453) | (24,446) |
Income tax (expense) benefit | 521 | (1,388) |
Net loss | $ (29,932) | $ (25,834) |
Net loss per share, basic and diluted | $ (0.65) | $ (1.39) |
Weighted–average shares used in computing net loss per share, basic and diluted | 46,208,894 | 18,603,582 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | IPO | Common Stock | Common StockIPO | Additional Paid-in Capital | Additional Paid-in CapitalIPO | Accumulated Deficit |
Balance, beginning of period at Dec. 31, 2018 | $ 5,129,000 | $ 15,000 | $ 148,641,000 | $ (143,527,000) | |||
Balance, shares at Dec. 31, 2018 | 15,591,357 | ||||||
Beginning balance adjustment – impact of ASC 606 | 3,115,000 | 3,115,000 | |||||
Issuance of common stock, net of issuance costs | 1,604,000 | $ 36,850,000 | $ 1,000 | $ 4,000 | 1,603,000 | $ 36,846,000 | |
Issuance of common stock, net of issuance costs, shares | 227,628 | 4,297,901 | |||||
Issuance of common stock upon purchase of ESPP | 146,000 | 146,000 | |||||
Issuance of common stock upon purchase of ESPP, shares | 68,606 | ||||||
Issuance of common stock upon exercise of stock options | $ 81,000 | 81,000 | |||||
Issuance of common stock upon exercise of stock options, shares | 95,739 | 95,739 | |||||
Exercise of warrants | $ 23,000 | 23,000 | |||||
Exercise of warrants, shares | 155,338 | ||||||
Taxes paid on RSA | (1,897,000) | (1,897,000) | |||||
Employee and nonemployee stock-based compensation | 6,308,000 | 6,308,000 | |||||
Net loss | (25,834,000) | (25,834,000) | |||||
Balance, at end of period at Dec. 31, 2019 | 25,525,000 | $ 20,000 | 191,751,000 | (166,246,000) | |||
Balance, shares at Dec. 31, 2019 | 20,437,235 | ||||||
Issuance of common stock, net of issuance costs | 25,086 | $ 37,000 | 25,049,000 | ||||
Issuance of common stock, net of issuance costs, shares | 36,800,000 | ||||||
Issuance of common stock, settlement of long-term debt | 6,170,000 | $ 8,000 | 6,162,000 | ||||
Issuance of common stock, settlement of long-term debt, shares | 8,226,834 | ||||||
Issuance of common stock upon purchase of ESPP | 98,000 | 98,000 | |||||
Issuance of common stock upon purchase of ESPP, shares | 192,335 | ||||||
Issuance of common stock upon exercise of stock options | $ 382,000 | $ 1,000 | 381,000 | ||||
Issuance of common stock upon exercise of stock options, shares | 541,268 | 541,268 | |||||
Net settlement of common stock upon release of RSU | $ (6,000) | (6,000) | |||||
Net settlement of common stock upon release of RSU, shares | 113,195 | ||||||
Employee and nonemployee stock-based compensation | 1,087,000 | 1,087,000 | |||||
Net loss | (29,932,000) | (29,932,000) | |||||
Balance, at end of period at Dec. 31, 2020 | $ 28,410,000 | $ 66,000 | $ 224,522,000 | $ (196,178,000) | |||
Balance, shares at Dec. 31, 2020 | 66,310,867 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (29,932) | $ (25,834) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 2,728 | 3,525 |
Stock-based compensation | 1,087 | 6,308 |
Trade-in guarantee | (268) | |
Inventory write-downs | 702 | 3,109 |
Noncash interest expense | 166 | 367 |
Accretion of debt discount | 328 | 90 |
Deferred income taxes | 21 | 109 |
Bad debt expense | 302 | 45 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,464 | 8,749 |
Inventory | 7,485 | (809) |
Prepaid expenses and other current assets | (1,104) | 3,681 |
Other assets | 531 | (3,803) |
Accounts payable | 1,494 | (20,165) |
Accrued expenses | 1,172 | (6,117) |
Deferred revenue | (286) | (3,664) |
Income tax payable | (718) | 1,154 |
Net cash used in operating activities | (10,560) | (33,523) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (11) | (992) |
Development of tooling and purchased software licenses | (364) | |
Net cash used in investing activities | (11) | (1,356) |
Cash flows from financing activities: | ||
Proceeds on line of credit | 5,614 | |
Repayment on line of credit | (5,614) | |
Proceeds from issuance of common stock, net of costs | 25,086 | 38,468 |
Proceeds from PPP Loan | 2,289 | |
Repayment of PPP Loan | (2,289) | |
Taxes paid on net issuance of restricted stock award and restricted stock units | (6) | (1,897) |
Proceeds from exercise of warrants | 23 | |
Proceeds from exercise of stock options | 382 | 81 |
Proceeds from ESPP | 98 | 146 |
Repayment of long-term debt | (4,146) | (3,693) |
Net cash provided by financing activities | 21,414 | 33,128 |
Net increase (decrease) in cash and cash equivalents | 10,843 | (1,751) |
Cash and cash equivalents at beginning of the year | 11,298 | 13,049 |
Cash and cash equivalents at end of the year | 22,141 | 11,298 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 260 | 1,043 |
Cash paid for income taxes | 76 | 273 |
Non-cash investing and financing activities: | ||
Other assets included in accounts payable | 128 | |
IPO issuance costs included in accounts payable | $ 14 | |
Settlement of long-term debt with issuance of common stock | $ 6,170 |
The Company and its Significant
The Company and its Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 Austin, Texas. 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. Liquidity and Ability to Continue as a Going Concern – Our consolidated financial statements account for the continuation of our business as a going concern. We are subject to the risks and uncertainties associated with the development and release of new products. Our principal sources of liquidity as of December 31, 2020 consist of existing cash and cash equivalents totaling approximately $ 22.1 , which includes the impact of approximately $ 25.1 million in proceeds from an underwritten public offering, or PO, of common stock that closed on June 9, 2020, in which we sold 36,800,000 shares of our common stock at a price to the public of $0.75 per share. On June 1, 2020 , we entered into a Note Amendment and Debt Cancellation Agreement with BRPI, or the Note Amendment, which provided that, contingent upon the closing of the PO, we would repay $4 million of the outstanding indebtedness to BRPI in cash, or the “B. Riley Repayment”, and the remaining principal amount, accrued interest and other amounts outstanding under the B. Riley Convertible Note, after giving effect to the B. Riley Repayment, would convert into shares of common stock to be issued to BRPI or its affiliates at the public offering price of shares of our common stock in the PO. On April 13, 2020, the Company received approximately $2.3 million in loan proceeds from the Payroll Protections Program (the “PPP”) administered by the United States Small Business Administrations (the “SBA”). The PPP was established under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). Following further guidance from the SBA on April 23, 2020 and further deliberation by the Board of Directors of the Company (the “Board of Directors”), the Company repaid the PPP Loan on April 29, 2020. Pursuant to the Note Amendment, as amended, we made the B. Riley Repayment in June 2020 and the remaining principal amount, accrued interest and other amounts outstanding under the B. Riley Convertible Note, after giving effect to the B. Riley Repayment, in an amount of $6.2 million, converted into an aggregate of 8,226,834 shares of our common stock issued to B. Riley Principal Investments, LLC or BRPI and BRC Opportunity Fund, L.P., an affiliate of BRPI, or the “Conversion Shares”. During the year ended December 31, 2020, we used approximately $10.6 million of cash for operating activities, while also streamlining our operations to allow for further efficiencies going forward. After evaluating the aforementioned conditions, we believe our current resources, along with expected proceeds from forecasted billings, will provide sufficient funding for planned operations for at least the next 12 months. Financial Statement Presentation —The accompanying 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 annual financial information. Principles of Consolidation — The accompanying 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. Additional Sonim Subsidiary – On August 21, 2019, Sonim Technologies (Canada), Inc. was incorporated, as a fully owned subsidiary of the Company, to aide with sales and post sales services. During the year ended December 31, 2019, immaterial fees were incurred in the set-up of the subsidiary and the Company did not record any intercompany transactions. During the year ended December 31, 2020, the subsidiary was dissolved. Estimates —The preparation of 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 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 options; 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. 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 December 31, 2020 and 2019. 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 $65 and $52 at December 31, 2020 and 2019, respectively, and recognized $302 and $45 in bad debt expense during the years ended December 31, 2020 and 2019, respectively. 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. Cash and Cash Equivalents— The Company considers all highly liquid investments with an original maturity from the date of purchase of 90 days or less to be cash equivalents. As of December 31, 2020, and 2019, cash and cash equivalents consist of cash deposited with banks and money market funds. Included in the Company’s cash and cash equivalents are amounts held by foreign subsidiaries. The Company had $822 and $733 of foreign cash and cash equivalents included in the Company’s cash positions on December 31, 2020 and 2019, respectively. Accounts Receivable and Allowance for Doubtful Accounts —Account's receivable consist primarily of amounts due from customers in the course of normal business activities. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. Inventory —The Company reports inventories at the lower of cost or net realizable value. Cost is determined using a first-in, first-out method (“FIFO”) and includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The Company periodically reviews its inventory for potential slow-moving or obsolete items and writes down specific items to net realizable value, as appropriate. The Company writes down inventory based on forecasted demand and technological obsolescence. These factors are impacted by market and economic conditions, technology changes, new product introductions, and changes in strategic direction, and require estimates that may include uncertain elements. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. Any write-down of inventory to the lower of cost or net realizable value creates a new cost basis that subsequently would not be marked up based on changes in underlying facts and circumstances. Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. The cost for molds and tooling used in the Company’s manufacturing processes are capitalized and included in equipment. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, generally 24 to 36 months. Leasehold improvements are amortized over the shorter of estimated useful lives of the assets or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation and amortization are removed from the accounts and the resulting gain or loss is reflected in the consolidated statements of operations. Non-recurring Engineering (“NRE”) Tooling and Purchased Software Licenses —Third-party design services relating to the design of tooling materials and purchased software licenses used in the manufacturing process are capitalized and included in other assets within the consolidated balance sheets. During the years ended December 31, 2020 and 2019, amortization of NRE tooling and NRE software costs approximating $2,303 and $2,904 were charged to cost of revenues. The related net book value is $90 and $630, respectively, as of December 31, 2020 and 2019. In addition, as of December 31, 2020 and 2019, other Assets includes $2,889 and $4,524, respectively, of deferred NRE costs representing costs to fulfill contracts. Long-lived Assets —The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No such impairments have been identified to date. Revenue Recognition — The Company adopted the requirements of Accounting Standards Codification (“ASC”) 2014-09, Revenue from Contracts with Customers (Topic 606), effective January 1, 2019, using the modified retrospective method. The Company recognizes revenue primarily from the sale of products, including our mobile phones and accessories. The Company also recognizes revenue from other contractual arrangements that may include a combination of products and Non-Recurring Engineering (“NRE”) services or from the provision of solely NRE services. Revenue recognition incorporates discounts, price protection and customer incentives. 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’s handsets typically require a technical approval process. This process entails design and configuration activities required to conform the Company’s devices to a wireless carrier customer’s specific their network requirements. Each wireless carrier defines its own specific functional requirements and certification process in order for the product to be ready for manufacture. While the technical approval process does involve some level of customization, in addition to design and configuration, the Company does not charge separately and is not reimbursed for these activities to the extent that they do not involve significant customization and does not incur these costs in advance of entering into binding agreements with its wireless carrier customers. Such technical approval is obtained prior to shipment. Under Topic 606, revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for its arrangements, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Cost of Revenues —Cost of revenues includes direct and indirect costs associated with the manufacture of the Company’s products as well as with the performance of NRE services in connection with significant design modification and customization. Direct costs include material and labor, royalty, depreciation and amortization, while indirect costs include other labor and overhead costs incurred in manufacturing the product. Advertising —The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses for the years ended December 31, 2020 and 2019 were approximately $17 and $35, respectively. Shipping and Handling Costs —When the Company bills customers for shipping and handling it includes such amounts as part of revenue. Costs incurred for shipping and handling are recorded in cost of revenues. Deferred Revenues —Deferred revenues represents the amount that is allocated to undelivered elements in multiple element arrangements. We limit the revenue recognized to the amount that is not contingent on the future delivery of products or services or meeting other specified performance conditions. Research and Development —Research and development expenses consist of compensation costs, employee benefits, development fees paid to ODM partners, research supplies, allocated facility related expenses and allocated depreciation and amortization. Research and development expenses include costs incurred for the design and configuration activities of new products to conform to the specific functional requirements of the Company’s wireless carrier customers necessary to prepare the product for manufacture. The Company determines the NRE technical approval costs, and NRE field test costs are contract fulfillment costs and recognizes the associated NRE asset as these costs are incurred. The Company tracked the NRE asset by product and customer then amortized the NRE assets over a period of 4 years, which is management’s estimated average product life for each model phone, starting from the date of the first significant sales. This is a change in accounting under ASC 340-40, Other Assets and Deferred Costs. NRE costs are expensed based on a percentage of completion basis. Stock-Based Compensation —The Company measures equity classified stock-based awards granted to employees and directors based on the estimated fair value on the date of grant and recognizes compensation expense of those awards, net of estimated forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. For awards subject to performance conditions, the Company evaluates the probability of achieving each performance condition at each reporting date and begins to recognize expense over the requisite service period when it is deemed probable that a performance condition will be met using the accelerated attribution method. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model, which is described more fully in Note 8. The fair value of each restricted stock award is measured as the fair value per share of the Company’s common stock on the date of grant. Compensation expense related to share-based awards issued to nonemployees is recognized as the awards vest. At each reporting date, the Company revalues the fair value of the award, also using the Black-Scholes option pricing model, and expense related to the unvested portion of such nonemployee awards. As a result, compensation expense related to the unvested share-based awards issued to nonemployees fluctuates as the fair value of the Company’s common stock fluctuates. Warranty —The Company provides standard warranty coverage on its accessories and handsets for one and three years, respectively, providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost as a charge to cost of revenues when revenue is recognized. The estimated warranty cost is based on historical product performance and field expenses. Utilizing actual service records, the Company calculates the average service hours and parts expense per system to determine the estimated warranty charge. The Company updates these estimated charges periodically. The actual product performance and/or field expense profiles may differ, and in those cases the Company adjusts warranty accruals accordingly. From time to time, the Company ships mobile devices to its customers as seed stock. The seed stock represents extra units of mobile devices beyond the original mobile devices ordered by the customer and are primarily used to facilitate warranty coverage of mobile devices received by our customers from their direct customers, which is described in Note 4. Trade-in Guarantee —The Company has provided certain end customers, who purchase a particular device during a defined promotional period, the right to trade-in their original device for a newer model at no additional cost, however, only for a subsequent and defined period of time. The Company accounts for this trade-in right as a guarantee liability and recognizes product revenue net of the fair value of such right, with subsequent changes to the guarantee liability recognized within revenue on a straight-line basis as the trade-in right expires. The guarantee liability is initially measured at fair value and is determined based on assumptions including the probability and timing of a customer upgrading to a new device and the value of the upgraded device. As of December 31, 2019, the guarantee liability related to this trade-in was zero. The trade-in period began July 1, 2018 and ended April 1, 2019. Revenue recognized in 2019 approximated $268. Comprehensive Income or Loss —The Company had no items of comprehensive income or loss other than net loss for the years ended December 31, 2020 and 2019. Therefore, a separate statement of comprehensive loss has not been included in the accompanying consolidated financial statements. Foreign currency translation —The Company uses the U.S. dollar as its functional currency for its significant subsidiaries. Foreign currency assets and liabilities are translated into U.S. dollars at the end-of-period exchange rates except for property, plant and equipment, and related depreciation and amortization, which are translated at the historical exchange rates. Expenses are translated at average exchange rates in effect during each period. Foreign assets held directly by the Company include certain accounts receivable balances and bank accounts which are translated in the U.S. dollar at the end-of-period exchange rates. During the years ended December 31, 2020 and 2019, the Company had approximately $389 and $543, respectively, in net foreign currency transactions losses, which are included in other expense, net on the consolidated statement of operations. Sales taxes —Sales and value added taxes are accounted for on a net basis and collected from customers and remitted to governmental authorities are not included in revenue. Income taxes —The benefit for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Compliance with income tax regulations requires the Company to make decisions relating to the transfer pricing of revenue and expenses between each of its legal entities that are located in several countries. The Company’s determinations include many decisions based on management’s knowledge of the underlying assets of the business, the legal ownership of these assets, and the ultimate transactions conducted with customers and other third parties. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in multiple tax jurisdictions. The Company may be periodically reviewed by domestic and foreign tax authorities regarding the amount of taxes due. These reviews may include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves when it is more likely than not that an uncertain tax position will not be sustained upon examination by a taxing authority. Such estimates are subject to change. See Note 9, “Income Taxes”. Net Loss per Share —Net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. For the years ended December 31, 2020 and 2019, for purposes of the calculation of diluted net loss per share, convertible preferred stock, warrants to purchase stock, unvested restricted stock units and stock options to purchase common stock are considered potentially dilutive securities but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. As a result, diluted net loss per common share is the same as the basic net loss per share for the periods presented. The computation of net loss available to common stockholders is computed by deducting the dividends declared and cumulative dividends, whether or, not declared, in the period on preferred stock (whether or not paid) from the reported net loss. For the years ended December 31, 2020 and 2019, there were no cumulative dividends and no impact . Restructuring and Reduction in Force – The Company has reduced our global headcount from approximately 402 employees and 98 contractors at year-end 2019 to approximately 263 employees and 54 contractors as of December 31, 2020. The Company has also relocated our headquarters from San Mateo, California to Austin, Texas, a lower cost location. During 2020, we have continued to reduce our headcount to better align our expenses with our revenue profile. The Company executed a reduction in force of approximately 10% of its U.S. employees in February 2020 and has also reduced headcount in certain international locations in India and Shenzhen. Our headcount at December 31, 2020 was 317. During 2020, we decided to proceed with future product co-development and manufacturing with ODM partners. To ensure the efficient manufacturing of our legacy products through this transition, we outsourced our final assembly to a supply chain partner and transferred twenty two employees to that partner to enhance their efficiency in taking over our production work. In September 2019, the Board of Directors approved, and management commenced and completed, a restructuring plan to reduce operating costs and better align its workforce with the needs of its business. Under the plan, the Company reduced its workforce by 16 employees. In connection with the restructuring, the Company accrued $0.7 million in aggregate restructuring charges related to one-time termination severance payments and other employee-related costs. $0.2 million of the cash payments related to the personnel-related restructuring charges were paid during the second half of 2019, with the remaining $0.5 million was paid in the second quarter of 2020. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated, with the workforce reductions. The severance liability related to these restructuring costs as of December 31, 2020 is: Restructuring Costs Liability Balance at January 1, 2020 $ 511 Additions: expensed costs 1,663 Payments: expenses paid out (1,715) Balance at December 31, 2020 $ 459 Public Offering/Initial Public Offering The 2020 Offering (“PO”) —On June 9, 2020, the Company completed an underwritten public offering (“PO’) in which the Company sold 36,800,000 shares of its common stock, at a price to the public of $0.75 per share. The offer and sale of the shares in the PO were registered under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to a registration statement on Form S-1 (File No. 333-238869), which was declared effective by the SEC on June 4, 2020. The Company raised approximately $25,086 in net proceeds, after deducting underwriting discounts and commissions of $1,656 and offering expenses of approximately $689. Offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s PO, are offset against proceeds from the PO within stockholders’ equity. Initial Public Offering (“IPO”) —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 former 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 $36,850 in net proceeds, after deducting underwriting discounts and commissions of $3,139 and offering expenses paid by us of approximately $4,861. Offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s IPO, are offset against proceeds from the IPO within stockholders’ equity. During the year ended December 31, 2019, $4,861 in deferred offering costs were incurred and charged to additional paid in capital. Issuance costs totaling $14 were unpaid and charged to accounts payable/accrued expenses as of December 31, 2019. New accounting pronouncements: Pronouncements adopted in 2020: 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. The Company did not adopt any pronouncements in 2020. Pronouncements not yet adopted: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) , which simplifies the accounting for income taxes. This guidance is effective for fiscal years beginning after December 31, 2021 with early adoption permitted. The Company is evaluating the potential impact of the new standard on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Changes to the Disclosure Requirements for Fair Value Measurement In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2 — The Company recognizes revenue primarily from the sale of products, including mobile phones and accessories, and the majority of the Company’s contracts include only one performance obligation, namely the delivery of product. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is defined as the unit of account for revenue recognition under ASC 606. The Company also recognizes revenue from other contracts that may include a combination of products and NRE services or from the provision of solely NRE services. Where there is a combination of products and NRE services, the Company accounts for the promises as individual performance obligations if they are concluded as distinct. Performance obligations are considered distinct if they are both capable of being distinct and distinct within the context of the contract. In determining whether performance obligations meet the criteria for being distinct, the Company considers a number of factors, such as the degree of interrelation and interdependence between obligations, and whether or not the good or service significantly modifies or transforms another good or service in the contract. During the years ended December 31, 2020 and 2019, the Company did not have any contracts in which the products and NRE services were concluded to be a single performance obligation. In certain cases, the Company may offer tiered pricing based on volumes purchased for specific model phones. To date, all tiered pricing provisions have fallen into observable ranges of pricing to existing customers, thus, not resulting in any material right which could be concluded as its own performance obligation. In addition, the Company does not offer material post-contract support services to its customers. Net revenue for an individual contract is recognized at the related transaction price, which is the amount the Company expects to be entitled to in exchange for transferring the goods and/or services. The transaction price for product sales is calculated as the product selling price net of variable consideration which may include estimates for marketing development funds, sales incentives, and price protection and stock rotation rights. The Company generally does not offer a right of return to its customers. Typically, variable consideration does not need to be constrained as estimates are based on specific contract terms. However, the Company continues to assess variable consideration estimates such that it is probable that a significant reversal of revenue will not occur. The transaction price for a contract with multiple performance obligations is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices for products are determined based on the prices charged to customers, which are directly observable. Standalone selling price of the professional services are mostly based on time and materials. We determine our estimates of variable consideration based on historical collection experience with similar payor classes, aged accounts receivable by payor class, terms of payment agreements, correspondence from payors related to revenue audits or reviews, our historical settlement activity of audited and reviewed claims and current economic conditions using the portfolio approach. Revenue is recognized only to the extent that it is probable that a significant reversal of the cumulative amount recognized will not occur in future periods. Revenue is then recognized for each distinct performance obligation as control is transferred to the customer. Revenue attributable to hardware is recognized at the time control of the product transfers to the customer. Revenue attributable to professional services is recognized at the time the Company has performed the professional services to the customer. Disaggregation of revenue The following table presents our net revenue disaggregate by product category for the years ended: Year Ended December 31, 2020 2019 (in thousands) Smartphones $ 25,880 $ 57,981 Feature Phones 35,332 52,714 Accessories/Other 2,780 5,556 Total Revenue $ 63,992 $ 116,251 Shipping and handling costs The Company has elected to account for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products. Contract costs Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred when the amortization period of the assets that otherwise would have been recognized is one year or less. These costs are included in sales and marketing and general and administrative expenses. The costs associated with design and development non-recurring engineering activities for technical approval represent costs to fulfill a contract pursuant to ASC 340-40. Accordingly, the Company capitalizes these non-recurring engineering costs and amortizes such costs over the estimated period of time over which they are expected to be recovered, which is typically, the estimated life of a particular model phone. As of January 1, 2019, the total costs to fulfill a contract which were deferred and capitalized upon adoption of ASC 606 totaled $3,330 and were recorded in Other Assets. As of December 31, 2020, and 2019, the total costs to fulfill a contract were $2,889 and $4,525, respectively. The increase in the total capitalized costs to fulfill a contract during the year ended December 31, 2019 is primarily associated with the Company’s introduction of its XP8 model phone. Contract balances The Company records accounts receivable when it has an unconditional right to consideration. As of December 31, 2020, and 2019, the Company does not have a contract receivable balance. Contract liabilities are recorded when cash payments are received or due in advance of performance. Contract liabilities consist of advance payments and deferred revenue, where the Company has unsatisfied performance obligations. Contract liabilities are presented as a component of deferred revenue The following table is a rollforward of contract balances as of December 31, 2020: Contractual Liability Balance at January 1, 2020 $ 291 Recognition of revenue (467 ) Addition of revenue 181 Balance at December 31, 2020 $ 5 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | NOTE 3 — 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 for the years ended December 31, 2020 and 2019. Money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices. 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: December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 17,905 $ — $ — $ 17,905 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 9,250 $ — $ — $ 9,250 * Included in cash and cash equivalents on the consolidated balance The table below sets forth a summary of changes in the fair value of the Company’s level 3 liabilities for the years ended December 31, 2019: Trade-In Guarantee Balance at January 1, 2019 $ 268 Recognition of revenue (268 ) Balance at December 31, 2019 $ — |
Significant Balance Sheet Compo
Significant Balance Sheet Components | 12 Months Ended |
Dec. 31, 2020 | |
Significant Balance Sheet Components [Abstract] | |
Significant Balance Sheet Components | NOTE 4 —Significant Balance Sheet Components Inventory consisted of the following: December 31 2020 2019 Devices - for resale $ 7,792 $ 13,559 Raw materials 2,590 4,522 Accessories 962 1,450 $ 11,344 $ 19,531 During the year ended December 31, 2020, the Company recorded an inventory reserve adjustment of $.07 million as a result of aging materials and finished goods and accrued a loss of $0.5 million of purchase commitments in connection with end-of-life products. During the year ended December 31, 2019, the Company recorded an inventory reserve adjustment of $3.1 million as a result of aging materials and finished goods and accrued a loss of $0.7 million of purchase commitments in connection with end-of-life products Prepaids and other current assets consisted of the following: December 31 2020 2019 Deposits for manufacturing inventory $ 1,133 $ 897 Prepaid taxes 641 1,031 Refundable value added taxes 509 1,376 Prepaid – NRE 2,629 — Prepaid licenses and royalties 728 761 Director and officer insurance 862 604 Prepaid parts (direct buy) 167 536 Other 1,076 1,225 $ 7,481 $ 6,430 Property and equipment consisted of the following: December 31 2020 2019 Computer equipment $ 4,858 $ 5,087 Software 981 981 Furniture, fixtures, and office equipment 175 175 Leasehold Improvements 179 179 6,193 6,422 Less: accumulated depreciation and amortization (5,350 ) (4,980 ) $ 843 $ 1,442 Depreciation expense of property and equipment for the years ended December 31, 2020 and 2019, was $426 and $621, respectively. Accrued Expenses consisted of the following: December 31 2020 2019 Customer allowances $ 3,042 $ 2,647 Employee-related liabilities 2,273 1,873 Warranties 1,530 1,154 Accrual for goods received not invoiced 1,942 1,047 Contractual obligations 849 1,230 Royalties 655 657 Contractors 55 285 Research and development 61 271 Shipping 170 120 Interest 11 33 Legal 320 97 Other 528 851 $ 11,436 $ 10,265 The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the Consolidated Balance Sheets for the years ended December 31, 2020 and 2019: Balance, January 1, 2020 $ 1,154 Additions 2,088 Cost of warranty claims (1,712 ) Balance, December 31, 2020 $ 1,530 Balance, January 1, 2019 $ 1,103 Additions 1,157 Cost of warranty claims (1,106 ) Balance, December 31, 2019 $ 1,154 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 5 —Borrowings Senior Credit Agreement In prior years, the Company maintained a loan and security agreement with East West Bank (the “Senior Lender” or “EWB”) . No borrowings were made under this facility in 2020, and the facility was cancelled 2020 As of December 31, 2019, no amounts were outstanding under the EWB Loan Agreement. As of December 31, 2019, the Company had remaining borrowing capacity of up to $8,000 against the line of credit. As of September 30, 2019, the Company was not in compliance with one of the financial covenants, specifically the fixed charge coverage ratio, however, the Senior Lender waived such noncompliance in October 2019 by amending the EWB Loan Agreement through February 2020. The Senior Lender subsequently extended the wavier to May 2020. Long-Term Debt Riley Loan — The Company had a Subordinated Term Loan and Security Agreement, as amended, (the “B. Riley Loan Agreement”) with B. Riley Principal Investments, LLC (“BRPI”), an affiliate of B. Riley Financial, Inc., a shareholder of the Company. Under the amended B. Riley Loan Agreement, the Company could borrow principal up to $12,000 via a subordinated secured convertible promissory note, with an optional conversion feature. The amended B. Riley Loan Agreement included repayment penalties if any repayment reduced the principal amount outstanding below $10,000. The prepayment penalty was 2% for 2019 and decreased to1% after the second aniversary through maturity. The borrowings under the B. Riley Loan Agreement, as amended would have matured on September 1, 2022 and carried a stated interest rate of 10% and provided that the first year of interest commencing on October 26, 2018 was compounded into the principal, with interest-only payments beginning thereafter. On June 1, 2020, the Company entered into a Note Amendment and Debt Cancellation Agreement with BRPI (the “Note Amendment”), which provided that, contingent upon the closing of the PO, the Company would repay $4 million of the outstanding indebtedness to BRPI in cash (the “B. Riley Repayment”) and the remaining principal amounts, accrued interest and other amounts outstanding under the B. Riley Loan Agreement, after giving effect to the B. Riley Repayment, would be redeemed for shares of common stock to be issued to BRPI or its affiliates at the public offering price of shares of common stock in the PO. Pursuant to the Note Amendment, as amended, the Company made the B. Riley Repayment on interest and under the Riley Loan Agreement, A by BRPI and BRC Partners Opportunity Fund, LP was declared effective by the SEC on July 13, 2020. As of December 31, 2020, and 2019, the total outstanding principal and interest under the B. Riley Loan Agreement, as amended, was zero and 10,003 As of December 31, 2019, the Company had classified the debt under the B. Riley Loan Agreement, as a current liability based on the occurrence of a material adverse change in its of an event default under the B. BRPI had the option, among other things, to accelerate the debt and foreclose upon the assets pledged as collateral. In addition, the Company was unable to borrow under the EWB facility during the continuance of an event of default thereunder or under the B. 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 $362 and $508 at December 31, 2020 and 2019, respectively. PPP Loan --On April 13, 2020, the Company received approximately $2.3 million in PPP loan proceeds. Following additional guidance issued by the SBA on April 23, 2020 that casted doubt on the ability of public companies to qualify for loans under the PPP, the Company repaid the PPP loan on April 29, 2020. The components of the long-term debt balance as of December 31, are as follows: 2020 2019 Convertible note $ — $ 10,003 Less unamortized discount and debt issuance costs — (328 ) Subtotal Convertible note — 9,675 Promissory note payable 362 508 Subtotal long-term debt 362 10,183 Less current portion (177 ) (9,821 ) Total long-term debt $ 185 $ 362 Future aggregate annual principal payment on all long-term debt, are as of December 31, 2020: Year Ending, December 31 st 2021 $ 177 2022 107 2023 78 $ 362 |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | NOTE 6 —Convertible Preferred Stock and Stockholders’ Equity On November 2, 2018, the Company amended and restated its previous certificate of incorporation and adjusted its authorized capital stock (par value of $0.001) to consist of 100,000,000 shares of common stock and 5,000,000 shares of preferred 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 year ended December 31, 2020, no shares of preferred stock have been issued. On April 24, 2019, the Company issued 10,000 shares of common stock to a former employee in exchange for a release of claims and other agreements. On October 15, 2019, the Company issued 666 shares of common stock to a vendor as compensation in exchange for timely completion of services. The following table shows shares of common stock reserved as of: December 31 2020 2019 Shares subject to options to purchase common stock 1,443,940 2,645,714 Unvested restricted stock units 2,691,375 249,500 Shares subject to warrants to purchase common stock 29 956 Shares subject to term debt optional conversion into common stock — 761,186 Total 4,135,344 3,657,356 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Warrants [Abstract] | |
Warrants | NOTE 7 —Warrants There were 155,338 warrants exercised on May 10, 2019 for total cash proceeds of $23. The following table discloses warrants issued and outstanding as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Exercise Number of warrant Year of Exercise Number of warrant Year of Issuance date price shares expiration price shares expiration Common November 2012 $ 6.03 7 2028 $ 6.00 7 2028 November 2012 2020 $ 6.00 927 2020 November 2012 $ 14.50 22 2028 $ 14.50 22 2028 Total warrants 29 956 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 8—Stock-based Compensation As of December 31, 2020, the Company had the 2012 Equity Incentive Plan (the “2012 Option Plan”) and 2019 Equity Incentive Plan (the “2019 Option Plan”) and the 2019 Employee Stock Purchase Plan in place. As of December 31, 2020, the number of shares available to be issued under the 2019 Option Plan were 2,921,714. In May 2020, the Board of Directors approved an increase in the number of shares of common stock reserved for future issuance under the 2019 Option Plan to 3,000,000 shares, which was approved by the Company’s stockholders on September 29, 2020. As of December 31, 2020, the number of shares available to be issued under the 2019 Employee Stock Purchase Plan was 280,438. The 2019 Option Plans provides for the grant of incentive and non-statutory 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. Option awards granted under the 2019 Option Plan generally become 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 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, December 31, 2020 and 2019, 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 2019 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 2019 Option Plan to ten percent or greater 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. The Board of Directors adopted, and its stockholders approved, the 2019 Employee Stock Purchase Plan and the 2019 Option Plan in March 2019 and April 2019, respectively, each of which became effective in connection with the IPO. There are Plan as of December 31, 2020. Additionally, the number of shares of common stock reserved for issuance under the 2019 Employee Stock Purchase Plan automatically increases 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 As of December 31,2020, 192,335 shares of common stock were issued under the 2019 Employee Stock Purchase Plan. On June 9, 2020, the Company granted an aggregate of 2,015,500 restricted stock units to the Company’s board of directors, executives and employees. On September 29, 2020, the Company granted an aggregate of 676,500 restricted stock units to the Company’s executives and employees. On December 14, 2020, the Company granted an aggregate of 114,000 restricted stock units to an ex-member of the board of directors who will be serving in a consulting capacity. On April 10, 2019, the Company granted an aggregate of 128,000 restricted stock units to the Company’s executives, of which 38,000 were forfeited and 90,000 are outstanding at December 31, 2019. 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 totaling $1,897, recorded as a reduction to additional paid-in capital, to satisfy tax obligations associated with the grant, to the Company’s Chief Executive Officer as a bonus pursuant to his employment agreement. As a result, the Company recorded $4,215 as compensation expense to operating expenses under the Statement of Operations during the year ended December 31, 2019. In connection with the IPO, the Company accelerated vesting of 201,666 options dated September 10, 2018, pursuant to the employment agreement of the Company’s prior Chief Financial Officer. As a result, the Company recorded $287 as compensation expense to operating expenses under the Statement of Operations during year ended December 31, 2019. Stock-based compensation expense is as follows: For the Year Ended December 31 2020 2019 Research and development $ 252 $ 394 Sales and marketing 230 664 General and administrative 548 5,208 Cost of revenues 57 42 $ 1,087 $ 6,308 Stock Options: Stock option activity for the years ended December 31, 2020 and 2019 is as follows: Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic Options per share (in years) Value Outstanding at January 1, 2019 1,320,197 $ 0.77 7.99 $ 8,465 Options granted 1,635,853 $ 5.94 Options exercised (95,739 ) $ 0.85 Options forfeited (186,266 ) $ 7.02 Options cancelled (28,331 ) 2.72 Outstanding at December 31, 2019 2,645,714 $ 3.50 8.51 $ 4,184 Options granted 26,000 $ 0.86 Options exercised (541,268 ) $ 0.71 Options forfeited (510,755 ) $ 4.73 Options cancelled (175,751 ) $ 7.04 Outstanding at December 31, 2020 1,443,940 $ 3.64 7.82 $ 24 Vested and expected to vest at December 31, 2020 1,443,940 $ 3.64 7.82 $ 24 Exercisable at December 31, 2020 669,852 $ 4.19 6.62 $ 24 As of December 31, 2020, there was approximately $3,298 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. The total pre-tax intrinsic value of options exercised during the years ended December 31, 2020 and 2019 was $50 and $266, respectively. The intrinsic value is the difference between the estimated fair value of the Company’s common stock at the date of exercise and the exercise price for in-the-money options. The weighted average grant date calculated value of options granted during the years ended December 31, 2020 and 2019 was $0.41 and $2.84, The fair value of employee stock options is determined using the Black-Scholes option-pricing model using various inputs, including the Company’s estimates of the fair value of common stock on the date of grant, expected term, expected volatility, risk-free interest rate, and expectations regarding future dividends. Share-based compensation also reflects the Company’s estimate regarding the portion of awards that may be forfeited. The following describes the key inputs used by the Company: Fair Value of Common Stock — The Company measures equity classified stock-based awards granted to employees and directors based on the estimated fair value on the date of grant and the expense is recognized on a straight-line basis, over the vesting period. We account for forfeitures as they occur. Expected Term—The expected term represents the period that the Company’s stock options are expected to be outstanding. The majority of stock option grants are considered to be “plain vanilla” and thus the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. Expected Volatility—The expected volatility was derived from the historical stock volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to the business over a period equivalent to the expected term of the stock option grants. The Company completed its IPO in May 2019, and therefore does not have sufficient history. Risk-Free Interest Rate—The risk-free interest rate is based on the interest yield in effect at the date of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the option’s expected term. Dividend Rate—The expected dividend rate was assumed to be zero, as the Company has not previously paid dividends on common stock and has no current plans to do so. Forfeiture Rate—Forfeitures are recognized when they occur. Historically, the Company estimated the forfeiture rate based on an analysis of actual forfeiture experience, analysis of employee turnover behavior, and other factors. The calculated fair value of option grants made during the years ended December 31, 2020 and 2019, were estimated using the following Black-Scholes option pricing model assumptions: 2020 2019 Expected dividend yield 0 % 0 % Risk-free interest rate 0.26%-0.46% 1.59%-2.33% Expected volatility 50 % 50 % Expected life (in years) 6.25 6.25 Restricted Stock Awards: As of December 31, 2020, and 2019, the unvested restricted stock units totaled 2,691,375 and 249,500 shares, respectively. The following table summarized the outstanding RSU’s as of December 31, 2020: RSU's Outstanding at January 1, 2020 249,500 Granted 2,806,000 Released (119,875 ) Forfeited (244,250 ) Outstanding at December 31, 2020 2,691,375 Exercisable at December 31, 2020 — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 9 —Income Taxes The following table presents the income (loss) before income taxes for domestic and foreign operations, and the components of the provision (benefit) for income taxes for the years ended December 31: 2020 2019 Domestic loss $ (31,390 ) $ (26,964 ) Foreign subsidiaries income 937 2,518 Income (loss) before income taxes $ (30,453 ) $ (24,446 ) 2020 2019 Current income tax expense: Federal $ (53 ) $ — State 5 (3 ) Foreign (494 ) 1,282 Total Current (542 ) 1,279 Deferred income tax expense: Federal 54 — State — — Foreign (33 ) 109 Total Deferred 21 109 Total provision (benefit) for income taxes $ (521 ) $ 1,388 The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31: 2020 2019 Statutory federal income tax rate 21 % 21 % State income taxes, net of federal tax benefits -0.54 % 0.61 % Stock compensation -0.74 % -1.27 % Foreign rate differential 2.38 % -3.53 % Tax credits 0.00 % 0.68 % GILTI Inclusion -0.81 % -0.76 % Section 382 limits -27.71 % 0.00 % Non-deductible expenses -0.17 % -4.58 % Valuation allowance 8.30 % -14.58 % Other, net 0.00 % -3.25 % Effective tax rate 1.71 % -5.68 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31: 2020 2019 Gross deferred tax assets: Net operating loss carryforward $ 12,684 $ 9,587 Tax credits 92 725 Accruals and reserves 2,113 2,461 Property and equipment 83 — Alternative minimum tax credits 21 89 Total gross deferred tax assets 14,993 12,862 Less: valuation allowance (14,281 ) (11,814 ) Total deferred tax assets net of valuation allowance 712 1,048 Deferred tax liabilities: Property and equipment — (37 ) Accrual and reserves (678 ) (1,025 ) Net deferred tax assets (liabilities) $ 34 $ (14 ) A valuation allowance is provided for deferred tax assets where the recoverability of the assets is uncertain. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient future taxable income will be generated to utilize the deferred tax assets. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and the accumulated deficit, the Company provided a full valuation allowance against the U.S. deferred tax assets resulting from the accruals and reserves along with the net operating loss and credits carried forward. We have not provided U.S. Federal and State income taxes, nor foreign withholding. taxes on approximately $9,156 of undistributed earnings for certain non-US subsidiaries, because such earnings are intended to be indefinitely reinvested. If these earnings were distributed to the U.S. in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, we would not be subject to U.S. income tax due to the transition tax of IRC Section 965 or via the Global Intangible Low-Taxed Income (“GILTI”) provision, enacted as part of the 2017 U.S. Tax Act. The Company would be subject to U.S. state tax and potential foreign withholding taxes on a repatriation of the foreign earnings. The amount of unrecognized deferred income tax liability related to these earnings is not material. Estimate of cumulative foreign earnings is as follows as of December 31: 2020 2019 China $ 4,195 $ 5,818 India 4,961 4,580 Total $ 9,156 $ 10,398 The Company had net operating loss carryovers (NOL) for federal and state income tax purposes of approximately $56,805 and $12,418, respectively, as of December 31, 2020. Approximately $9,938 of federal NOLs will expire beginning in 2037, while approximately $46,866 generated beginning in 2018 have an indefinite life. The state NOLs will expire if unused in years 2026 through 2040: 2020 2019 Federal NOL $ 56,805 $ 42,415 State NOL $ 12,418 $ 11,492 The Company had research and development (“R&D”) credit carryforwards as follows as of December 31: 2020 2019 Federal R&D credits $ — $ 632 California R&D credits $ 117 $ 117 At December 31, 2020, the Company had approximately zero of federal and $117 of California research and development tax credit and other tax credit carryforwards available to offset future taxable income. The California research credits have no expiration dates. Federal and state laws impose restrictions on the utilization of net operating loss carryforwards and R&D credit carryforwards in the event of a change in ownership of the Company, which constitutes an 'ownership change' as defined by Internal Revenue Code Section 382 and 383. The Company experienced an ownership change in 2020 that caused the Company to de-recognize $37,206 and $7,319 of federal and state net operating losses, respectively. The amounts indicated in the above tables reflect the reduction of net operating losses and credit carryforwards as a result of previous ownership changes that the Company experienced. Should there be additional ownership changes in the future, the Company's ability to utilize existing carryforwards could be substantially restricted. Uncertain Tax Positions The Company accounts for uncertainty in income taxes in accordance with the Financial Accounting Standards Board guidance for income taxes, as provided in ASC 740, Accounting for Income Taxes. Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize, in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31: In thousands 2020 2019 Unrecognized benefit-beginning of period $ 6.900 $ 5,957 Gross increases-prior period tax positions 96 400 Gross (decreases)-prior period tax positions (5,818 ) — Settlements prior period tax positions (95 ) — Gross increases -current period tax positions 107 543 Unrecognized benefit-end of period $ 1,190 $ 6,900 The Company reported a $5,818 reduction in prior period uncertain tax positions in 2020, consisting of $5,042 of reductions in prior period uncertain tax positions related to de-recognized net operating losses and tax credits following the Section 382 ownership change in 2020, as discussed above and $776 of the reduction related to remeasuring uncertain tax positions following the completion of a tax audit. The unrecognized tax benefits at December 31, 2020 of $31 are accounted for as a reduction in the Company’s deferred tax assets. Due to the Company’s valuation allowance, only $1,159 of the $1,190 of unrecognized tax benefits would affect the Company’s effective tax rate, if recognized. The Company does not believe it is reasonably possible that its unrecognized tax benefits will significantly change in the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. The Company reported a tax benefit of ($262) in December 31, 2020 and accrued $229 of interest and penalties in December 31, 2019. The Company has accrued a $84 and $346 liability for accrued interest and penalties related to unrecognized tax benefit as of December 31, 2020 and 2019, respectively. The Company's material income tax jurisdictions are the United States (federal and California), China and India. As a result of net operating loss and credit carryforwards, the Company is subject to audit for tax years 2014 and forward for federal and California purposes. The China and India tax years are open under the statute of limitations from 2015 and forward. The Company completed an audit in China in 2020, paying approximately $95 of tax to settle prior year uncertain tax positions. The Company has no ongoing tax audits. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10 —Commitments and Contingencies Operating leases— The Company leases several facilities under noncancelable operating leases that begin expiring in 2021. The Company recognizes rent expense on a straight-line basis over the lease period. Future minimum lease payments under noncancelable operating lease commitments are approximately as follows: Year Ending, December 31 st 2021 $ 694 2022 484 2023 454 2024 467 2025 318 $ 2,417 Rent expense was approximately $1,568 and $1,243 for the years ended December 31, 2020 and 2019. Purchase Commitments —The aggregate amount of noncancelable purchase orders as of December 31, 2020 and 2019, was approximately $5,113 and $1,022, respectively, and were related to the purchase of components of our devices . 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 years ended December 31, 2020 and 2019, was $2,288 and $2,886 , respectively, which are included in cost of revenues on the consolidated statements of operations. Securities litigation — On September 20, 2019, a purported Sonim stockholder who allegedly purchased stock registered in Sonim’s initial public offering (“IPO”) filed a putative class action complaint in the Superior Court of the State of California, County of San Mateo, captioned Pearson v. Sonim Technologies, Inc., et al., Case No. 19CIV05564, on behalf of himself and others who purchased shares of Sonim registered in the IPO (the “Pearson Action”). On October 4 and 16, 2019, two additional purported class action complaints substantially similar to the Pearson Action were filed on behalf of different plaintiffs yet the same putative class of Sonim stockholders, in the same court as the Pearson Action (the “’33 Act State Court Actions”). The defendants asked the Superior court to dismiss the “33 Act State Court Actions based on the provision in the Company’s Amended and Restated Certificate of Incorporation requiring stockholders to file and litigate in federal court any claims under the Securities Act of 1933. On December 7, 2020, the Superior Court entered an order granting defendants’ motion to dismiss. On October 7, 2019, a substantially similar putative class action lawsuit was filed in the United States District Court for the Northern District of California (the “’33 Act Federal Action”). All four complaints allege violations of the Securities Act of 1933 by Sonim and certain of its current and former officers and directors for, among other things, alleged false or misleading statements and omissions in the registration statement issued in connection with the IPO, relating primarily to an alleged failure to disclose software defects in Sonim’s phones and alleged misstatements about performance characteristics of Sonim’s phones. In July 2020, the Company entered into an agreement with the Lead Plaintiff in the ‘33 Act Federal Action to settle that case on a class wide basis for $2.0 million. As a result , the Company has paid out the $2.0 million settlement as of December 31, 2020. On March 5, 2021, the court presiding over the ’33 Act Federal Action granted final approval of the settlement. Securities and Exchange Commission Formal Order of Private Investigation: In March 2020, the Company received a voluntary document request from the SEC San Francisco Regional office, and in August 2020, the Company was informed that the SEC Staff was conducting a formal investigation. The SEC’s investigation is ongoing. The Company has been cooperating with the SEC in the matter. The Company is unable to predict the likely outcome of the investigation or determine its potential impact, if any, on the Company. Derivative litigation —On September 21, 2020, the Company, and certain of its current and former directors and officers were sued by a stockholder on behalf of our Company in a derivative action in the United States District Court for the District of Delaware, captioned Kusiak v. Plaschke, et al., Case No 20-cv-1270-MN (“Kusiak”). The Kusiak complaint is based largely on the same underlying factual allegations as the ’33 Act Federal Action. The defendants filed a motion to dismiss the Kusiak derivative action based on plaintiff’s failure to make a litigation demand on Sonim’s directors. On February 1, 2021, plaintiff in Kusiak voluntarily dismissed the action without prejudice. On February 1, 2021, the same plaintiffs’ lawyers in the Kusiak action filed a new derivative action in the United States District Court for the District of Delaware against the Company and certain of its current and former directors and officers, captioned Gupta v. Plaschke, et al., Case No. 1:21-cv-130-MN (“Gupta”). Given the early stages of this proceeding and the limited information available, we cannot predict the outcome of this legal proceeding or determine its potential impact, if any, on the Company. General litigation — The Company is involved in various other legal proceedings arising in the normal course of business. The Company does not believe that the ultimate resolution of these other matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows. The results of any future litigation cannot be predicted with certainty and, regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management time and resources and other factors. 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 (Executive Severance Arrangement) 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. On December 11, 2019, the Board of Directors approved the Sonim Technologies Inc. Transaction Bonus Plan (the “Plan”) that is intended to incentivize Company employees who are in a position to significantly impact the value received by the Company’s stockholders in a change of control transaction. Pursuant to the Plan, upon consummation of a change of control transaction, 10% of the consideration payable to Company stockholders, after deducting transaction expenses, will be distributed to Plan participants, including the Company’s named executive officers. The Plan has a three-year term and may be extended by the administrator of the Plan. Subject to the terms of the Plan, participants must be continuously providing services to the Company through the date of the closing of a change in control transaction to be eligible to receive a bonus thereunder, and payment is contingent upon delivery and non-revocation of a general release of claims. In connection with the adoption of the Plan, the Board of Directors allocated a 50% interest in the Plan to Tom Wilkinson, the Company’s Chief Executive Officer, and a 10% interest in the Plan to Robert Tirva, the Company’s Chief Financial Officer and 40% to 9 other key employees and consultants . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11—Related Party Transactions 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 $56 in related consulting fees during the year ended December 31, 2019. At the closing of the Company’s IPO in May 2019, the management services agreement was terminated in accordance with its terms. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 12 — Net loss per share for the years ended December 31, 2020 and 2019, was determined by decreasing Net income or increasing Net loss for the years then ended by the number of cumulative dividends, not yet declared, on the Company's previously outstanding convertible preferred stock. The following table sets forth the computation of the Company’s basic and diluted net loss per share for the periods ended: For the Years Ended December 31 2020 2019 Numerator: Net loss $ (29,932 ) $ (25,834 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 46,208,894 18,603,582 Net loss per share, basic and diluted $ (0.65 ) $ (1.39 ) 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 periods ended: For the Years Ended December 31 2020 2019 Shares subject to options to purchase common stock 1,443,940 2,645,714 Unvested restricted stock units 2,691,375 249,500 Shares subject to warrants to purchase common stock 29 956 Shares subject to term debt optional conversion into common stock — 761,186 Total 4,135,344 3,657,356 |
Entity Level Information
Entity Level Information | 12 Months Ended |
Dec. 31, 2020 | |
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 periods ended: For the Years Ended December 31 2020 2019 U.S. $ 46,107 $ 90,597 Canada and Latin America 14,228 17,400 Europe and Middle East 1,978 5,308 Asia Pacific 1,679 2,946 $ 63,992 $ 116,251 Long-lived assets located in the United States and Asia Pacific region were $3,040 and $782, The composition of revenues is as follows: For the Years Ended December 31 2020 2019 Product Sales $ 63,627 $ 115,807 Services 365 444 Total revenues $ 63,992 $ 116,251 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 December 31, 2020 and 2019. 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 $65 and $52 at December 31, 2020 and 2019, respectively. Receivables from one customer approximated 23% of total accounts receivable at December 31, 2020 and 40% and 28% of total accounts receivable from two customers at December 31, 2019 Revenue from certain customers in 2020 and 2019 accounted for approximately the following percentage of total revenues: For the Years Ended December 31, 2020 2019 Customer A 15 % 37 % Customer B 10 % 18 % Customer C 40 % 15 % Customer D 11 % * Total 76 % 70 % * Customer revenue did not exceed 10% in the respective |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14 —Subsequent Events At the beginning of 2021, we outsourced to a third-party and transferred 105 employees to support the work to be performed. Additionally, in the beginning of 2021, we outsourced our manufacturing work to a partner and expect to ultimately transfer or eliminate 22 employees as part |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 Austin, Texas. 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. |
Liquidity and Ability to Continue as a Going Concern | Liquidity and Ability to Continue as a Going Concern – Our consolidated financial statements account for the continuation of our business as a going concern. We are subject to the risks and uncertainties associated with the development and release of new products. Our principal sources of liquidity as of December 31, 2020 consist of existing cash and cash equivalents totaling approximately $ 22.1 , which includes the impact of approximately $ 25.1 million in proceeds from an underwritten public offering, or PO, of common stock that closed on June 9, 2020, in which we sold 36,800,000 shares of our common stock at a price to the public of $0.75 per share. On June 1, 2020 , we entered into a Note Amendment and Debt Cancellation Agreement with BRPI, or the Note Amendment, which provided that, contingent upon the closing of the PO, we would repay $4 million of the outstanding indebtedness to BRPI in cash, or the “B. Riley Repayment”, and the remaining principal amount, accrued interest and other amounts outstanding under the B. Riley Convertible Note, after giving effect to the B. Riley Repayment, would convert into shares of common stock to be issued to BRPI or its affiliates at the public offering price of shares of our common stock in the PO. On April 13, 2020, the Company received approximately $2.3 million in loan proceeds from the Payroll Protections Program (the “PPP”) administered by the United States Small Business Administrations (the “SBA”). The PPP was established under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”). Following further guidance from the SBA on April 23, 2020 and further deliberation by the Board of Directors of the Company (the “Board of Directors”), the Company repaid the PPP Loan on April 29, 2020. Pursuant to the Note Amendment, as amended, we made the B. Riley Repayment in June 2020 and the remaining principal amount, accrued interest and other amounts outstanding under the B. Riley Convertible Note, after giving effect to the B. Riley Repayment, in an amount of $6.2 million, converted into an aggregate of 8,226,834 shares of our common stock issued to B. Riley Principal Investments, LLC or BRPI and BRC Opportunity Fund, L.P., an affiliate of BRPI, or the “Conversion Shares”. During the year ended December 31, 2020, we used approximately $10.6 million of cash for operating activities, while also streamlining our operations to allow for further efficiencies going forward. After evaluating the aforementioned conditions, we believe our current resources, along with expected proceeds from forecasted billings, will provide sufficient funding for planned operations for at least the next 12 months. |
Financial Statement Presentation | Financial Statement Presentation —The accompanying 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 annual financial information. |
Principles of Consolidation | Principles of Consolidation — The accompanying 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. |
Additional Sonim Subsidiary | Additional Sonim Subsidiary – On August 21, 2019, Sonim Technologies (Canada), Inc. was incorporated, as a fully owned subsidiary of the Company, to aide with sales and post sales services. During the year ended December 31, 2019, immaterial fees were incurred in the set-up of the subsidiary and the Company did not record any intercompany transactions. During the year ended December 31, 2020, the subsidiary was dissolved. |
Estimates | Estimates —The preparation of 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 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 options; 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. |
Concentration of Credit Risk | 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 December 31, 2020 and 2019. 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 $65 and $52 at December 31, 2020 and 2019, respectively, and recognized $302 and $45 in bad debt expense during the years ended December 31, 2020 and 2019, respectively. |
Segment 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents— The Company considers all highly liquid investments with an original maturity from the date of purchase of 90 days or less to be cash equivalents. As of December 31, 2020, and 2019, cash and cash equivalents consist of cash deposited with banks and money market funds. Included in the Company’s cash and cash equivalents are amounts held by foreign subsidiaries. The Company had $822 and $733 of foreign cash and cash equivalents included in the Company’s cash positions on December 31, 2020 and 2019, respectively. |
Accounts Receivable and Allowance For Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts —Account's receivable consist primarily of amounts due from customers in the course of normal business activities. Collateral on trade accounts receivable is generally not required. The Company maintains an allowance for doubtful accounts for estimated uncollectible accounts receivable. The allowance is based on our assessment of known delinquent accounts. Accounts are written off against the allowance account when they are determined to be no longer collectible. |
Inventory | Inventory —The Company reports inventories at the lower of cost or net realizable value. Cost is determined using a first-in, first-out method (“FIFO”) and includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal, and transportation. The Company periodically reviews its inventory for potential slow-moving or obsolete items and writes down specific items to net realizable value, as appropriate. The Company writes down inventory based on forecasted demand and technological obsolescence. These factors are impacted by market and economic conditions, technology changes, new product introductions, and changes in strategic direction, and require estimates that may include uncertain elements. Actual demand may differ from forecasted demand and such differences may have a material effect on recorded inventory values. Any write-down of inventory to the lower of cost or net realizable value creates a new cost basis that subsequently would not be marked up based on changes in underlying facts and circumstances. |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. The cost for molds and tooling used in the Company’s manufacturing processes are capitalized and included in equipment. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, generally 24 to 36 months. Leasehold improvements are amortized over the shorter of estimated useful lives of the assets or the lease term. Expenditures for repairs and maintenance are charged to expense as incurred. Upon disposition, the cost and related accumulated depreciation and amortization are removed from the accounts and the resulting gain or loss is reflected in the consolidated statements of operations. |
Non-Recurring Engineering Tooling and Purchased Software Licenses | Non-recurring Engineering (“NRE”) Tooling and Purchased Software Licenses —Third-party design services relating to the design of tooling materials and purchased software licenses used in the manufacturing process are capitalized and included in other assets within the consolidated balance sheets. During the years ended December 31, 2020 and 2019, amortization of NRE tooling and NRE software costs approximating $2,303 and $2,904 were charged to cost of revenues. The related net book value is $90 and $630, respectively, as of December 31, 2020 and 2019. In addition, as of December 31, 2020 and 2019, other Assets includes $2,889 and $4,524, respectively, of deferred NRE costs representing costs to fulfill contracts. |
Long-Lived Assets | Long-lived Assets —The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No such impairments have been identified to date. |
Revenue Recognition | Revenue Recognition — The Company adopted the requirements of Accounting Standards Codification (“ASC”) 2014-09, Revenue from Contracts with Customers (Topic 606), effective January 1, 2019, using the modified retrospective method. The Company recognizes revenue primarily from the sale of products, including our mobile phones and accessories. The Company also recognizes revenue from other contractual arrangements that may include a combination of products and Non-Recurring Engineering (“NRE”) services or from the provision of solely NRE services. Revenue recognition incorporates discounts, price protection and customer incentives. 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’s handsets typically require a technical approval process. This process entails design and configuration activities required to conform the Company’s devices to a wireless carrier customer’s specific their network requirements. Each wireless carrier defines its own specific functional requirements and certification process in order for the product to be ready for manufacture. While the technical approval process does involve some level of customization, in addition to design and configuration, the Company does not charge separately and is not reimbursed for these activities to the extent that they do not involve significant customization and does not incur these costs in advance of entering into binding agreements with its wireless carrier customers. Such technical approval is obtained prior to shipment. Under Topic 606, revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To determine revenue recognition for its arrangements, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. |
Cost of Revenues | Cost of Revenues —Cost of revenues includes direct and indirect costs associated with the manufacture of the Company’s products as well as with the performance of NRE services in connection with significant design modification and customization. Direct costs include material and labor, royalty, depreciation and amortization, while indirect costs include other labor and overhead costs incurred in manufacturing the product. |
Advertising | Advertising —The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses for the years ended December 31, 2020 and 2019 were approximately $17 and $35, respectively. |
Shipping and Handling Cost | Shipping and Handling Costs —When the Company bills customers for shipping and handling it includes such amounts as part of revenue. Costs incurred for shipping and handling are recorded in cost of revenues. |
Deferred Revenues | Deferred Revenues —Deferred revenues represents the amount that is allocated to undelivered elements in multiple element arrangements. We limit the revenue recognized to the amount that is not contingent on the future delivery of products or services or meeting other specified performance conditions. |
Research and Development | Research and Development —Research and development expenses consist of compensation costs, employee benefits, development fees paid to ODM partners, research supplies, allocated facility related expenses and allocated depreciation and amortization. Research and development expenses include costs incurred for the design and configuration activities of new products to conform to the specific functional requirements of the Company’s wireless carrier customers necessary to prepare the product for manufacture. The Company determines the NRE technical approval costs, and NRE field test costs are contract fulfillment costs and recognizes the associated NRE asset as these costs are incurred. The Company tracked the NRE asset by product and customer then amortized the NRE assets over a period of 4 years, which is management’s estimated average product life for each model phone, starting from the date of the first significant sales. This is a change in accounting under ASC 340-40, Other Assets and Deferred Costs. NRE costs are expensed based on a percentage of completion basis. |
Share-Based Compensation | Stock-Based Compensation —The Company measures equity classified stock-based awards granted to employees and directors based on the estimated fair value on the date of grant and recognizes compensation expense of those awards, net of estimated forfeitures, on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. For awards subject to performance conditions, the Company evaluates the probability of achieving each performance condition at each reporting date and begins to recognize expense over the requisite service period when it is deemed probable that a performance condition will be met using the accelerated attribution method. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option pricing model, which is described more fully in Note 8. The fair value of each restricted stock award is measured as the fair value per share of the Company’s common stock on the date of grant. Compensation expense related to share-based awards issued to nonemployees is recognized as the awards vest. At each reporting date, the Company revalues the fair value of the award, also using the Black-Scholes option pricing model, and expense related to the unvested portion of such nonemployee awards. As a result, compensation expense related to the unvested share-based awards issued to nonemployees fluctuates as the fair value of the Company’s common stock fluctuates. |
Warranty | Warranty —The Company provides standard warranty coverage on its accessories and handsets for one and three years, respectively, providing labor and parts necessary to repair the systems during the warranty period. The Company accounts for the estimated warranty cost as a charge to cost of revenues when revenue is recognized. The estimated warranty cost is based on historical product performance and field expenses. Utilizing actual service records, the Company calculates the average service hours and parts expense per system to determine the estimated warranty charge. The Company updates these estimated charges periodically. The actual product performance and/or field expense profiles may differ, and in those cases the Company adjusts warranty accruals accordingly. From time to time, the Company ships mobile devices to its customers as seed stock. The seed stock represents extra units of mobile devices beyond the original mobile devices ordered by the customer and are primarily used to facilitate warranty coverage of mobile devices received by our customers from their direct customers, which is described in Note 4. |
Trade-in Guarantee | Trade-in Guarantee —The Company has provided certain end customers, who purchase a particular device during a defined promotional period, the right to trade-in their original device for a newer model at no additional cost, however, only for a subsequent and defined period of time. The Company accounts for this trade-in right as a guarantee liability and recognizes product revenue net of the fair value of such right, with subsequent changes to the guarantee liability recognized within revenue on a straight-line basis as the trade-in right expires. The guarantee liability is initially measured at fair value and is determined based on assumptions including the probability and timing of a customer upgrading to a new device and the value of the upgraded device. As of December 31, 2019, the guarantee liability related to this trade-in was zero. The trade-in period began July 1, 2018 and ended April 1, 2019. Revenue recognized in 2019 approximated $268. |
Comprehensive Income or Loss | Comprehensive Income or Loss —The Company had no items of comprehensive income or loss other than net loss for the years ended December 31, 2020 and 2019. Therefore, a separate statement of comprehensive loss has not been included in the accompanying consolidated financial statements. |
Foreign Currency Translations | Foreign currency translation —The Company uses the U.S. dollar as its functional currency for its significant subsidiaries. Foreign currency assets and liabilities are translated into U.S. dollars at the end-of-period exchange rates except for property, plant and equipment, and related depreciation and amortization, which are translated at the historical exchange rates. Expenses are translated at average exchange rates in effect during each period. Foreign assets held directly by the Company include certain accounts receivable balances and bank accounts which are translated in the U.S. dollar at the end-of-period exchange rates. During the years ended December 31, 2020 and 2019, the Company had approximately $389 and $543, respectively, in net foreign currency transactions losses, which are included in other expense, net on the consolidated statement of operations. |
Sales Taxes | Sales taxes —Sales and value added taxes are accounted for on a net basis and collected from customers and remitted to governmental authorities are not included in revenue. |
Income Taxes | Income taxes —The benefit for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. Compliance with income tax regulations requires the Company to make decisions relating to the transfer pricing of revenue and expenses between each of its legal entities that are located in several countries. The Company’s determinations include many decisions based on management’s knowledge of the underlying assets of the business, the legal ownership of these assets, and the ultimate transactions conducted with customers and other third parties. The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in multiple tax jurisdictions. The Company may be periodically reviewed by domestic and foreign tax authorities regarding the amount of taxes due. These reviews may include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, the Company records estimated reserves when it is more likely than not that an uncertain tax position will not be sustained upon examination by a taxing authority. Such estimates are subject to change. See Note 9, “Income Taxes”. |
Net Loss Per Share Attributable To Common Shareholders | Net Loss per Share —Net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. For the years ended December 31, 2020 and 2019, for purposes of the calculation of diluted net loss per share, convertible preferred stock, warrants to purchase stock, unvested restricted stock units and stock options to purchase common stock are considered potentially dilutive securities but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. As a result, diluted net loss per common share is the same as the basic net loss per share for the periods presented. The computation of net loss available to common stockholders is computed by deducting the dividends declared and cumulative dividends, whether or, not declared, in the period on preferred stock (whether or not paid) from the reported net loss. For the years ended December 31, 2020 and 2019, there were no cumulative dividends and no impact . |
Restructuring and Reduction in Force | Restructuring and Reduction in Force – The Company has reduced our global headcount from approximately 402 employees and 98 contractors at year-end 2019 to approximately 263 employees and 54 contractors as of December 31, 2020. The Company has also relocated our headquarters from San Mateo, California to Austin, Texas, a lower cost location. During 2020, we have continued to reduce our headcount to better align our expenses with our revenue profile. The Company executed a reduction in force of approximately 10% of its U.S. employees in February 2020 and has also reduced headcount in certain international locations in India and Shenzhen. Our headcount at December 31, 2020 was 317. During 2020, we decided to proceed with future product co-development and manufacturing with ODM partners. To ensure the efficient manufacturing of our legacy products through this transition, we outsourced our final assembly to a supply chain partner and transferred twenty two employees to that partner to enhance their efficiency in taking over our production work. In September 2019, the Board of Directors approved, and management commenced and completed, a restructuring plan to reduce operating costs and better align its workforce with the needs of its business. Under the plan, the Company reduced its workforce by 16 employees. In connection with the restructuring, the Company accrued $0.7 million in aggregate restructuring charges related to one-time termination severance payments and other employee-related costs. $0.2 million of the cash payments related to the personnel-related restructuring charges were paid during the second half of 2019, with the remaining $0.5 million was paid in the second quarter of 2020. The Company may also incur additional costs not currently contemplated due to events that may occur as a result of, or that are associated, with the workforce reductions. The severance liability related to these restructuring costs as of December 31, 2020 is: Restructuring Costs Liability Balance at January 1, 2020 $ 511 Additions: expensed costs 1,663 Payments: expenses paid out (1,715) Balance at December 31, 2020 $ 459 |
Public Offering/Initial Public Offering | Public Offering/Initial Public Offering The 2020 Offering (“PO”) —On June 9, 2020, the Company completed an underwritten public offering (“PO’) in which the Company sold 36,800,000 shares of its common stock, at a price to the public of $0.75 per share. The offer and sale of the shares in the PO were registered under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to a registration statement on Form S-1 (File No. 333-238869), which was declared effective by the SEC on June 4, 2020. The Company raised approximately $25,086 in net proceeds, after deducting underwriting discounts and commissions of $1,656 and offering expenses of approximately $689. Offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s PO, are offset against proceeds from the PO within stockholders’ equity. Initial Public Offering (“IPO”) —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 former 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 $36,850 in net proceeds, after deducting underwriting discounts and commissions of $3,139 and offering expenses paid by us of approximately $4,861. Offering costs, which consist of direct incremental legal, consulting, banking and accounting fees relating to the Company’s IPO, are offset against proceeds from the IPO within stockholders’ equity. During the year ended December 31, 2019, $4,861 in deferred offering costs were incurred and charged to additional paid in capital. Issuance costs totaling $14 were unpaid and charged to accounts payable/accrued expenses as of December 31, 2019. |
New accounting pronouncements | New accounting pronouncements: Pronouncements adopted in 2020: 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. The Company did not adopt any pronouncements in 2020. Pronouncements not yet adopted: In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) , which simplifies the accounting for income taxes. This guidance is effective for fiscal years beginning after December 31, 2021 with early adoption permitted. The Company is evaluating the potential impact of the new standard on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Changes to the Disclosure Requirements for Fair Value Measurement In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), |
The Company and its Significa_3
The Company and its Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Company And Significant Accounting Policies [Abstract] | |
Schedule of Severance Liability Related to the Restructuring Costs | The severance liability related to these restructuring costs as of December 31, 2020 is: Restructuring Costs Liability Balance at January 1, 2020 $ 511 Additions: expensed costs 1,663 Payments: expenses paid out (1,715) Balance at December 31, 2020 $ 459 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Net Revenue Disaggregate by Product Category | The following table presents our net revenue disaggregate by product category for the years ended: Year Ended December 31, 2020 2019 (in thousands) Smartphones $ 25,880 $ 57,981 Feature Phones 35,332 52,714 Accessories/Other 2,780 5,556 Total Revenue $ 63,992 $ 116,251 |
Summary of Contract Balances | The following table is a rollforward of contract balances as of December 31, 2020: Contractual Liability Balance at January 1, 2020 $ 291 Recognition of revenue (467 ) Addition of revenue 181 Balance at December 31, 2020 $ 5 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 17,905 $ — $ — $ 17,905 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 9,250 $ — $ — $ 9,250 * Included in cash and cash equivalents on the consolidated balance |
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 years ended December 31, 2019: Trade-In Guarantee Balance at January 1, 2019 $ 268 Recognition of revenue (268 ) Balance at December 31, 2019 $ — |
Significant Balance Sheet Com_2
Significant Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Balance Sheet Components [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: December 31 2020 2019 Devices - for resale $ 7,792 $ 13,559 Raw materials 2,590 4,522 Accessories 962 1,450 $ 11,344 $ 19,531 |
Schedule of Prepaids and Other Current Assets | Prepaids and other current assets consisted of the following: December 31 2020 2019 Deposits for manufacturing inventory $ 1,133 $ 897 Prepaid taxes 641 1,031 Refundable value added taxes 509 1,376 Prepaid – NRE 2,629 — Prepaid licenses and royalties 728 761 Director and officer insurance 862 604 Prepaid parts (direct buy) 167 536 Other 1,076 1,225 $ 7,481 $ 6,430 |
Schedule of Property and Equipment | Property and equipment consisted of the following: December 31 2020 2019 Computer equipment $ 4,858 $ 5,087 Software 981 981 Furniture, fixtures, and office equipment 175 175 Leasehold Improvements 179 179 6,193 6,422 Less: accumulated depreciation and amortization (5,350 ) (4,980 ) $ 843 $ 1,442 |
Schedule of Accrued Expenses | Accrued Expenses consisted of the following: December 31 2020 2019 Customer allowances $ 3,042 $ 2,647 Employee-related liabilities 2,273 1,873 Warranties 1,530 1,154 Accrual for goods received not invoiced 1,942 1,047 Contractual obligations 849 1,230 Royalties 655 657 Contractors 55 285 Research and development 61 271 Shipping 170 120 Interest 11 33 Legal 320 97 Other 528 851 $ 11,436 $ 10,265 |
Schedule of Warranty Liability Included in Accrued Expenses on Consolidated Balance Sheet | The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the Consolidated Balance Sheets for the years ended December 31, 2020 and 2019: Balance, January 1, 2020 $ 1,154 Additions 2,088 Cost of warranty claims (1,712 ) Balance, December 31, 2020 $ 1,530 Balance, January 1, 2019 $ 1,103 Additions 1,157 Cost of warranty claims (1,106 ) Balance, December 31, 2019 $ 1,154 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-term Debt | The components of the long-term debt balance as of December 31, are as follows: 2020 2019 Convertible note $ — $ 10,003 Less unamortized discount and debt issuance costs — (328 ) Subtotal Convertible note — 9,675 Promissory note payable 362 508 Subtotal long-term debt 362 10,183 Less current portion (177 ) (9,821 ) Total long-term debt $ 185 $ 362 |
Schedule of Future Aggregate Annual Principal Payment on All Long-Term Debt | Future aggregate annual principal payment on all long-term debt, are as of December 31, 2020: Year Ending, December 31 st 2021 $ 177 2022 107 2023 78 $ 362 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved | The following table shows shares of common stock reserved as of: December 31 2020 2019 Shares subject to options to purchase common stock 1,443,940 2,645,714 Unvested restricted stock units 2,691,375 249,500 Shares subject to warrants to purchase common stock 29 956 Shares subject to term debt optional conversion into common stock — 761,186 Total 4,135,344 3,657,356 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Warrants Issued and Outstanding | The following table discloses warrants issued and outstanding as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Exercise Number of warrant Year of Exercise Number of warrant Year of Issuance date price shares expiration price shares expiration Common November 2012 $ 6.03 7 2028 $ 6.00 7 2028 November 2012 2020 $ 6.00 927 2020 November 2012 $ 14.50 22 2028 $ 14.50 22 2028 Total warrants 29 956 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense is as follows: For the Year Ended December 31 2020 2019 Research and development $ 252 $ 394 Sales and marketing 230 664 General and administrative 548 5,208 Cost of revenues 57 42 $ 1,087 $ 6,308 |
Summary of Stock Option Activity | Stock option activity for the years ended December 31, 2020 and 2019 is as follows: Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic Options per share (in years) Value Outstanding at January 1, 2019 1,320,197 $ 0.77 7.99 $ 8,465 Options granted 1,635,853 $ 5.94 Options exercised (95,739 ) $ 0.85 Options forfeited (186,266 ) $ 7.02 Options cancelled (28,331 ) 2.72 Outstanding at December 31, 2019 2,645,714 $ 3.50 8.51 $ 4,184 Options granted 26,000 $ 0.86 Options exercised (541,268 ) $ 0.71 Options forfeited (510,755 ) $ 4.73 Options cancelled (175,751 ) $ 7.04 Outstanding at December 31, 2020 1,443,940 $ 3.64 7.82 $ 24 Vested and expected to vest at December 31, 2020 1,443,940 $ 3.64 7.82 $ 24 Exercisable at December 31, 2020 669,852 $ 4.19 6.62 $ 24 |
Summary of Fair Value of Option Grants Valuation Assumptions | The calculated fair value of option grants made during the years ended December 31, 2020 and 2019, were estimated using the following Black-Scholes option pricing model assumptions: 2020 2019 Expected dividend yield 0 % 0 % Risk-free interest rate 0.26%-0.46% 1.59%-2.33% Expected volatility 50 % 50 % Expected life (in years) 6.25 6.25 |
Summary of Stock Options Outstanding | |
Summary of Outstanding RSU's | The following table summarized the outstanding RSU’s as of December 31, 2020: RSU's Outstanding at January 1, 2020 249,500 Granted 2,806,000 Released (119,875 ) Forfeited (244,250 ) Outstanding at December 31, 2020 2,691,375 Exercisable at December 31, 2020 — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) Before Income Taxes and Components of Provision (Benefit) for Income Taxes | The following table presents the income (loss) before income taxes for domestic and foreign operations, and the components of the provision (benefit) for income taxes for the years ended December 31: 2020 2019 Domestic loss $ (31,390 ) $ (26,964 ) Foreign subsidiaries income 937 2,518 Income (loss) before income taxes $ (30,453 ) $ (24,446 ) 2020 2019 Current income tax expense: Federal $ (53 ) $ — State 5 (3 ) Foreign (494 ) 1,282 Total Current (542 ) 1,279 Deferred income tax expense: Federal 54 — State — — Foreign (33 ) 109 Total Deferred 21 109 Total provision (benefit) for income taxes $ (521 ) $ 1,388 |
Schedule of Effective Tax Rate Differs from Federal Statutory Rate | The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31: 2020 2019 Statutory federal income tax rate 21 % 21 % State income taxes, net of federal tax benefits -0.54 % 0.61 % Stock compensation -0.74 % -1.27 % Foreign rate differential 2.38 % -3.53 % Tax credits 0.00 % 0.68 % GILTI Inclusion -0.81 % -0.76 % Section 382 limits -27.71 % 0.00 % Non-deductible expenses -0.17 % -4.58 % Valuation allowance 8.30 % -14.58 % Other, net 0.00 % -3.25 % Effective tax rate 1.71 % -5.68 % |
Schedule of Significant Components of Deferred Tax Assets and Liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities at December 31: 2020 2019 Gross deferred tax assets: Net operating loss carryforward $ 12,684 $ 9,587 Tax credits 92 725 Accruals and reserves 2,113 2,461 Property and equipment 83 — Alternative minimum tax credits 21 89 Total gross deferred tax assets 14,993 12,862 Less: valuation allowance (14,281 ) (11,814 ) Total deferred tax assets net of valuation allowance 712 1,048 Deferred tax liabilities: Property and equipment — (37 ) Accrual and reserves (678 ) (1,025 ) Net deferred tax assets (liabilities) $ 34 $ (14 ) |
Schedule of Estimate of Cumulative Foreign Earnings | Estimate of cumulative foreign earnings is as follows as of December 31: 2020 2019 China $ 4,195 $ 5,818 India 4,961 4,580 Total $ 9,156 $ 10,398 |
Schedule of Net Operating Loss Carryovers | The Company had net operating loss carryovers (NOL) for federal and state income tax purposes of approximately $56,805 and $12,418, respectively, as of December 31, 2020. Approximately $9,938 of federal NOLs will expire beginning in 2037, while approximately $46,866 generated beginning in 2018 have an indefinite life. The state NOLs will expire if unused in years 2026 through 2040: 2020 2019 Federal NOL $ 56,805 $ 42,415 State NOL $ 12,418 $ 11,492 |
Schedule of Research and Development Credit Carryforwards | The Company had research and development (“R&D”) credit carryforwards as follows as of December 31: 2020 2019 Federal R&D credits $ — $ 632 California R&D credits $ 117 $ 117 |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31: In thousands 2020 2019 Unrecognized benefit-beginning of period $ 6.900 $ 5,957 Gross increases-prior period tax positions 96 400 Gross (decreases)-prior period tax positions (5,818 ) — Settlements prior period tax positions (95 ) — Gross increases -current period tax positions 107 543 Unrecognized benefit-end of period $ 1,190 $ 6,900 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Noncancelable Operating Lease Commitments | Future minimum lease payments under noncancelable operating lease commitments are approximately as follows: Year Ending, December 31 st 2021 $ 694 2022 484 2023 454 2024 467 2025 318 $ 2,417 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | For the Years Ended December 31 2020 2019 Numerator: Net loss $ (29,932 ) $ (25,834 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 46,208,894 18,603,582 Net loss per share, basic and diluted $ (0.65 ) $ (1.39 ) |
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 periods ended: For the Years Ended December 31 2020 2019 Shares subject to options to purchase common stock 1,443,940 2,645,714 Unvested restricted stock units 2,691,375 249,500 Shares subject to warrants to purchase common stock 29 956 Shares subject to term debt optional conversion into common stock — 761,186 Total 4,135,344 3,657,356 |
Entity Level Information (Table
Entity Level Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 periods ended: For the Years Ended December 31 2020 2019 U.S. $ 46,107 $ 90,597 Canada and Latin America 14,228 17,400 Europe and Middle East 1,978 5,308 Asia Pacific 1,679 2,946 $ 63,992 $ 116,251 |
Composition of Revenues | The composition of revenues is as follows: For the Years Ended December 31 2020 2019 Product Sales $ 63,627 $ 115,807 Services 365 444 Total revenues $ 63,992 $ 116,251 |
Percentage of Total Revenues | Revenue from certain customers in 2020 and 2019 accounted for approximately the following percentage of total revenues: For the Years Ended December 31, 2020 2019 Customer A 15 % 37 % Customer B 10 % 18 % Customer C 40 % 15 % Customer D 11 % * Total 76 % 70 % * Customer revenue did not exceed 10% in the respective |
The Company and its Significa_4
The Company and its Significant Accounting Policies - Additional Information (Details) | Jun. 09, 2020USD ($)$ / sharesshares | Jun. 01, 2020USD ($)shares | Apr. 13, 2020USD ($) | May 22, 2019USD ($)$ / sharesshares | May 14, 2019$ / sharesshares | Jun. 30, 2020USD ($)shares | Sep. 30, 2019Employee | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)SegmentEmployeeNumberOfContractorshares | Dec. 31, 2019USD ($)EmployeeNumberOfContractorshares | Dec. 31, 2018USD ($) |
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Entity incorporation date | Aug. 5, 1999 | |||||||||||
Cash and cash equivalents | $ 11,298,000 | $ 22,141,000 | $ 11,298,000 | |||||||||
IPO closing date | May 14, 2019 | |||||||||||
Proceeds from PPP Loan | $ 2,300,000 | 2,289,000 | ||||||||||
Outstanding borrowings | 0 | |||||||||||
Net cash used in operating activities | 10,560,000 | 33,523,000 | ||||||||||
Allowance for credit losses | 52,000 | 65,000 | 52,000 | |||||||||
Bad debt expense recognized | $ 302,000 | 45,000 | ||||||||||
Number of reporting segment | Segment | 1 | |||||||||||
Foreign cash and cash equivalents | 733,000 | $ 822,000 | 733,000 | |||||||||
Advertising expenses | 17,000 | 35,000 | ||||||||||
Trade-in guarantee liability | 0 | 0 | ||||||||||
Revenue recognized, trade-in guarantee | 268,000 | |||||||||||
Net foreign currency transactions losses | $ 389,000 | $ 543,000 | ||||||||||
Number of employees | Employee | 16 | 263 | 402 | |||||||||
Number of contractors | NumberOfContractor | 54 | 98 | ||||||||||
Percentage of reduction in force | 10.00% | |||||||||||
Restructuring cost | $ 1,546,000 | $ 736,000 | ||||||||||
Restructuring cost paid | 1,000,000 | |||||||||||
Cost of revenue | 100,000 | |||||||||||
Restructuring and related cost, incurred cost | $ 700,000 | |||||||||||
Severance costs | $ 500,000 | 200,000 | ||||||||||
Unpaid issuance costs and charged to accounts payable or accrued expenses | 14,000 | 14,000 | ||||||||||
India | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Number of employees | Employee | 317 | |||||||||||
Shenzhen | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Number of employees | Employee | 317 | |||||||||||
Non-Recurring Engineering Tooling and Purchased Software Licenses | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Amortization costs | $ 2,303,000 | 2,904,000 | ||||||||||
Net book value | 630,000 | 90,000 | 630,000 | |||||||||
Deferred costs | $ 4,524,000 | 2,889,000 | $ 4,524,000 | |||||||||
Cares Act | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Proceeds from PPP Loan | $ 2,300,000 | |||||||||||
Note Amendment and Debt Cancellation Agreement | B. Riley Principal Investments, LLC | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Outstanding indebtedness | $ 4,000,000 | |||||||||||
Outstanding borrowings | $ 6,170,000 | $ 6,200,000 | $ 6,200,000 | $ 0 | ||||||||
Conversion shares | shares | 8,226,834 | 8,226,834 | ||||||||||
2020 Offering | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
IPO closing date | Jun. 9, 2020 | |||||||||||
Common Stock | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Issuance of common stock, net of issuance costs, shares | shares | 36,800,000 | 227,628 | ||||||||||
Common Stock | 2020 Offering | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Proceeds from issuance of public offering | $ 25,086,000 | |||||||||||
Issuance of common stock, net of issuance costs, shares | shares | 36,800,000 | |||||||||||
Shares issued and sold, price per share | $ / shares | $ 0.75 | |||||||||||
Underwriting discounts and commissions | $ 1,656,000 | |||||||||||
Offering expenses paid | $ 689,000 | |||||||||||
Common Stock | IPO | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Proceeds from issuance of public offering | $ 36,850,000 | |||||||||||
Issuance of common stock, net of issuance costs, shares | shares | 505,714 | 3,571,429 | 4,297,901 | |||||||||
Shares issued and sold, price per share | $ / shares | $ 11 | $ 11 | ||||||||||
Underwriting discounts and commissions | $ 3,139,000 | |||||||||||
Offering expenses paid | $ 4,861,000 | |||||||||||
Deferred offering costs | $ 4,861,000 | |||||||||||
Common Stock | Over-Allotment | ||||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||||
Issuance of common stock, net of issuance costs, shares | shares | 30,000 | |||||||||||
Shares issued and sold, price per share | $ / shares | $ 11 |
The Company and its Significa_5
The Company and its Significant Accounting Policies - Schedule of Severance Liability Related to the Restructuring Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Restructuring Reserve Roll Forward | |
Restructuring costs liability, Beginning balance | $ 511 |
Additions: expensed costs | 1,663 |
Payments: expenses paid out | (1,715) |
Restructuring costs liability, Ending balance | $ 459 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Net Revenue Disaggregate by Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 63,992 | $ 116,251 |
Smartphones | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 25,880 | 57,981 |
Feature Phones | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 35,332 | 52,714 |
Accessories/Other | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 2,780 | $ 5,556 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disaggregation Of Revenue [Line Items] | |||
Total capitalized costs | $ 2,889 | $ 4,525 | |
Contract liabilities | $ 5 | $ 291 | |
Other Assets | |||
Disaggregation Of Revenue [Line Items] | |||
Total capitalized costs | $ 3,330 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Balance at January 1, 2020 | $ 291 |
Balance at December 31, 2020 | 5 |
Contractual Liability | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Balance at January 1, 2020 | 291 |
Recognition of revenue | (467) |
Addition of revenue | 181 |
Balance at December 31, 2020 | $ 5 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Fair Value Assets and Liabilities (Details) - Money Market Funds - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Assets | $ 17,905 | $ 9,250 |
Level 1 | ||
Assets: | ||
Assets | $ 17,905 | $ 9,250 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Changes in Fair Value of Company's Level 3 Financial Liabilities (Details) - Level 3 - Trade-In Guarantee $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning Balance | $ 268 |
Recognition of revenue | $ (268) |
Significant Balance Sheet Com_3
Significant Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Significant Balance Sheet Components [Abstract] | ||
Devices - for resale | $ 7,792 | $ 13,559 |
Raw materials | 2,590 | 4,522 |
Accessories | 962 | 1,450 |
Total inventory | $ 11,344 | $ 19,531 |
Significant Balance Sheet Com_4
Significant Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Balance Sheet Components [Abstract] | ||
Inventory reserve adjustment | $ 70 | $ 3,100 |
Accrued loss on purchase commitments | 500 | 700 |
Depreciation expense | $ 426 | $ 621 |
Significant Balance Sheet Com_5
Significant Balance Sheet Components - Schedule of Prepaids and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Significant Balance Sheet Components [Abstract] | ||
Deposits for manufacturing inventory | $ 1,133 | $ 897 |
Prepaid taxes | 641 | 1,031 |
Refundable value added taxes | 509 | 1,376 |
Prepaid – NRE | 2,629 | |
Prepaid licenses and royalties | 728 | 761 |
Director and officer insurance | 862 | 604 |
Prepaid parts (direct buy) | 167 | 536 |
Other | 1,076 | 1,225 |
Total prepaids and other current assets | $ 7,481 | $ 6,430 |
Significant Balance Sheet Com_6
Significant Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Computer equipment | $ 6,193 | $ 6,422 |
Less: accumulated depreciation and amortization | (5,350) | (4,980) |
Property and equipment, Net | 843 | 1,442 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Computer equipment | 4,858 | 5,087 |
Software | ||
Property Plant And Equipment [Line Items] | ||
Computer equipment | 981 | 981 |
Furniture, Fixtures, and Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Computer equipment | 175 | 175 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Computer equipment | $ 179 | $ 179 |
Significant Balance Sheet Com_7
Significant Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Significant Balance Sheet Components [Abstract] | ||
Customer allowances | $ 3,042 | $ 2,647 |
Employee-related liabilities | 2,273 | 1,873 |
Warranties | 1,530 | 1,154 |
Accrual for goods received not invoiced | 1,942 | 1,047 |
Contractual obligations | 849 | 1,230 |
Royalties | 655 | 657 |
Contractors | 55 | 285 |
Research and development | 61 | 271 |
Shipping | 170 | 120 |
Interest | 11 | 33 |
Legal | 320 | 97 |
Other | 528 | 851 |
Accrued expenses | $ 11,436 | $ 10,265 |
Significant Balance Sheet Com_8
Significant Balance Sheet Components - Schedule of Warranty Liability Which is Included in Accrued Expenses on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Significant Balance Sheet Components [Abstract] | ||
Beginning balance | $ 1,154 | $ 1,103 |
Additions | 2,088 | 1,157 |
Cost of warranty claims | (1,712) | (1,106) |
Ending balance | $ 1,530 | $ 1,154 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | Jun. 01, 2020USD ($)shares | Apr. 13, 2020USD ($) | Jun. 30, 2020USD ($)shares | Jul. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($)Installment | Oct. 26, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||
Outstanding borrowings | $ 0 | ||||||||
Remaining borrowing capacity | $ 8,000,000 | ||||||||
Waiver extended date | 2020-05 | ||||||||
Lines of credit repaid principal amount | $ 5,614,000 | ||||||||
Debt instrument, outstanding balance | $ 362,000 | 508,000 | |||||||
Proceeds from PPP Loan | $ 2,300,000 | $ 2,289,000 | |||||||
PPP Loan, repayment date | Apr. 29, 2020 | ||||||||
Loan and Security Agreement | East West Bank | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowings available | $ 0 | ||||||||
Line of credit facility, cancellation date | Jun. 30, 2020 | ||||||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowings available | $ 10,000,000 | $ 12,000,000 | |||||||
Outstanding borrowings | $ 0 | 10,003,000 | |||||||
Minimum principal amount outstanding of defined repayment penalties | $ 10,000,000 | ||||||||
Prepayment penalty description | The prepayment penalty was 2% for 2019 and decreased to1% after the second aniversary through maturity | ||||||||
Interest rate, stated percentage | 10.00% | ||||||||
Debt prepayment penalties percentage | 1.00% | 2.00% | |||||||
Line of credit facility, maturity date | Sep. 1, 2022 | ||||||||
Lines of credit repaid principal amount | $ 3,250,000 | ||||||||
Lines of credit repaid principal amount percentage | 25.00% | ||||||||
Percentage of fee incurred | 2.00% | ||||||||
Compounded interest | $ 166,000 | 251,000 | |||||||
Note Amendment and Debt Cancellation Agreement | B. Riley Principal Investments, LLC | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowings | $ 6,170,000 | $ 6,200,000 | 0 | ||||||
Outstanding indebtedness | $ 4,000,000 | ||||||||
Debt instrument redemption date | Jun. 9, 2020 | ||||||||
Conversion shares | shares | 8,226,834 | 8,226,834 | |||||||
Promissory Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, outstanding balance | $ 362,000 | $ 508,000 | $ 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] | |||||||||
Interest rate, stated percentage | 8.00% | ||||||||
Debt instrument, payment term | 4 years |
Borrowings - Schedule of Compon
Borrowings - Schedule of Components of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Convertible note | $ 362 | |
Less unamortized discount and debt issuance costs | $ (328) | |
Subtotal Convertible note | 9,675 | |
Promissory note payable | 362 | 508 |
Subtotal long-term debt | 362 | 10,183 |
Less current portion | (177) | (9,821) |
Total long-term debt | $ 185 | 362 |
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | ||
Debt Instrument [Line Items] | ||
Convertible note | $ 10,003 |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Aggregate Annual Principal Payment on All Long-Term Debt (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 177 |
2022 | 107 |
2023 | 78 |
Long-term Debt | $ 362 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) - $ / shares | Oct. 15, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 24, 2019 | Nov. 02, 2018 |
Class Of Stock [Line Items] | |||||
Capital stock par value | $ 0.001 | ||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||
Convertible preferred stock | 5,000,000 | 5,000,000 | 5,000,000 | ||
Preferred stock, shares issued | 0 | ||||
Common stock, shares issued to former employee in exchange for release of claims and other agreements | 10,000 | ||||
Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares issued to former employee in exchange for timely completion of services | 666 | 8,226,834 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Equity - Schedule of Common Stock Reserved (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 4,135,344 | 3,657,356 |
Shares Subject to Options to Purchase Common Stock | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 1,443,940 | 2,645,714 |
Unvested Restricted Stock Units | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 2,691,375 | 249,500 |
Shares Subject to Warrants to Purchase Common Stock | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 29 | 956 |
Shares Subject to Term Debt Optional Conversion into Common Stock | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 761,186 |
Warrants - Additional Informati
Warrants - Additional Information (Details) - USD ($) $ in Thousands | May 10, 2019 | Nov. 02, 2018 | Aug. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2016 |
Class Of Warrant Or Right [Line Items] | ||||||
Number of warrants issued | 29 | 956 | ||||
Remeasurement of warrant fair value | $ 0 | $ 0 | ||||
Number of warrants exercised | 155,338 | |||||
Cash proceeds from warrants exercised | $ 23 | $ 23 | ||||
Reclassification of outstanding warrant liability to equity upon conversion and elimination of preferred stock | $ 1,804 | |||||
Series A Preferred Stock | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Number of warrants exercised | 310,676 | |||||
Cash proceeds from warrants exercised | $ 47 | |||||
Reclassification of warrant liability to equity upon exercise | $ 2,951 | |||||
Series A Preferred Stock | August 2016 PSA Warrant Exercisable in August 2017 | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Number of warrants issued | 155,338 | |||||
Series A Preferred Stock | August 2016 PSA Warrant Exercisable in August 2018 | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Number of warrants issued | 155,338 | |||||
Series A Preferred Stock | August 2016 PSA Warrant Exercisable in August 2019 | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Number of warrants issued | 155,338 |
Warrants - Schedule of Warrants
Warrants - Schedule of Warrants Issued and Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Class Of Warrant Or Right [Line Items] | ||
Number of warrant shares | 29 | 956 |
Issuance Date, November 2012 Tranche One | ||
Class Of Warrant Or Right [Line Items] | ||
Exercise price | $ 6.03 | $ 6 |
Number of warrant shares | 7 | 7 |
Year of expiration | 2028 | 2028 |
Issuance Date, November 2012 Tranche Two | ||
Class Of Warrant Or Right [Line Items] | ||
Exercise price | $ 6 | |
Number of warrant shares | 927 | |
Year of expiration | 2020 | 2020 |
Issuance Date, November 2012 Tranche Three | ||
Class Of Warrant Or Right [Line Items] | ||
Exercise price | $ 14.50 | $ 14.50 |
Number of warrant shares | 22 | 22 |
Year of expiration | 2028 | 2028 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 14, 2020 | Sep. 29, 2020 | Jun. 09, 2020 | May 13, 2019 | Apr. 10, 2019 | Sep. 10, 2018 | May 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of shares exercised | 541,268 | 95,739 | |||||||
Tax obligations recorded as reduction in additional paid in capital | $ (1,897) | ||||||||
Compensation expense | $ 1,087 | 6,308 | |||||||
Unamortized stock-based compensation cost related to unvested stock options | $ 3,298 | ||||||||
Unamortized stock-based compensation cost, weighted average period of recognition | 3 years | ||||||||
Pre-tax intrinsic value of options exercised | $ 50 | $ 266 | |||||||
Weighted average options grant fair value | $ 0.41 | $ 2.84 | |||||||
Expected dividend yield | 0.00% | 0.00% | |||||||
IPO | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Compensation expense | $ 287 | ||||||||
Common Stock | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of shares exercised | 541,268 | 95,739 | |||||||
Chief Executive Officer | Common Stock | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [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 | ||||||||
Tax obligations recorded as reduction in additional paid in capital | $ 1,897 | ||||||||
Chief Financial Officer | IPO | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Accelerated vesting of options | 201,666 | ||||||||
Restricted Stock | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock issued during period | 114,000 | 676,500 | 2,015,500 | ||||||
Aggregate restricted stock units, outstanding | 2,691,375 | 249,500 | |||||||
Compensation expense | $ 4,215 | ||||||||
Restricted Stock Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Aggregate restricted stock units, granted | 2,806,000 | ||||||||
Aggregate restricted stock units, outstanding | 2,691,375 | 249,500 | |||||||
Aggregate restricted stock units, forfeited | 244,250 | ||||||||
Restricted Stock Units | Executive Officer | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Aggregate restricted stock units, granted | 128,000 | ||||||||
Aggregate restricted stock units, outstanding | 90,000 | ||||||||
Aggregate restricted stock units, forfeited | 38,000 | ||||||||
2012 Equity Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of shares available to be issued | 2,921,714 | ||||||||
Increase in common stock reserved for future issuance | 3,000,000 | ||||||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 1,021,861 | ||||||||
2019 Employee Stock Purchase Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Number of shares available to be issued | 280,438 | ||||||||
Common stock, number of shares available for sale | 541,379 | ||||||||
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 | ||||||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 204,372 | ||||||||
Common stock reserved for issuance description | Additionally, the number of shares of common stock reserved for issuance under the 2019 Employee Stock Purchase Plan automatically increases 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 the compensation committee of the Board of Directors determines prior to such date that there will be a lesser increase, or no increase. | ||||||||
Number of shares issued | 192,335 | ||||||||
2012 Equity Incentive Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
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 | ||||||||
2019 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Common stock, number of shares available for sale | 5,906,900 | ||||||||
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 reserved for issuance description | 5,906,900 shares of common stock are reserved for future issuance under the 2019 Option Plan, plus the number of shares subject to outstanding stock options or other stock awards that were granted under the 2012 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 Option Plan automatically increases 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. |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,087 | $ 6,308 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 252 | 394 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 230 | 664 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 548 | 5,208 |
Cost of revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 57 | $ 42 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options Outstanding | 2,645,714 | 1,320,197 | |
Options granted | 26,000 | 1,635,853 | |
Options exercised | (541,268) | (95,739) | |
Options forfeited | (510,755) | (186,266) | |
Options cancelled | (175,751) | (28,331) | |
Options Outstanding | 1,443,940 | 2,645,714 | 1,320,197 |
Options Vested and expected to vest at December 31, 2020 | 1,443,940 | ||
Options exercisable at December 31, 2020 | 669,852 | ||
Outstanding, Weighted average exercise price per share | $ 3.50 | $ 0.77 | |
Options granted, Weighted average exercise price per share | 0.86 | 5.94 | |
Options exercised, Weighted average exercise price per share | 0.71 | 0.85 | |
Options forfeited, Weighted average exercise price per share | 4.73 | 7.02 | |
Options cancelled, Weighted average exercise price per share | 7.04 | 2.72 | |
Outstanding, Weighted average exercise price per share | 3.64 | $ 3.50 | $ 0.77 |
Vested and expected to vest at December 31, 2020, Weighted average exercise price per share | 3.64 | ||
Exercisable at December 31, 2020, Weighted average exercise price per share | $ 4.19 | ||
Outstanding, Weighted average remaining contractual life (in years) | 7 years 9 months 25 days | 8 years 6 months 3 days | 7 years 11 months 26 days |
Vested and expected to vest at December 31, 2020, Weighted average remaining contractual life (in years) | 7 years 9 months 25 days | ||
Exercisable at December 31, 2020, Weighted average remaining contractual life (in years) | 6 years 7 months 13 days | ||
Outstanding, Aggregate Intrinsic Value | $ 24 | $ 4,184 | $ 8,465 |
Vested and expected to vest at December 31, 2020, Aggregate Intrinsic Value | 24 | ||
Exercisable at December 31, 2020, Aggregate Intrinsic Value | $ 24 |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Fair Value of Options Grants (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate, minimum | 0.26% | 1.59% |
Risk-free interest rate, maximum | 0.46% | 2.33% |
Expected volatility | 50.00% | 50.00% |
Expected life (in years) | 6 years 3 months | 6 years 3 months |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of Outstanding RSU's (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2020shares | |
RSU's | |
Outstanding at January 1, 2020 | 249,500 |
Granted | 2,806,000 |
Released | (119,875) |
Forfeited | (244,250) |
Outstanding at December 31, 2020 | 2,691,375 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Taxes and Components of Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Domestic loss | $ (31,390) | $ (26,964) |
Foreign subsidiaries income | 937 | 2,518 |
Loss before income taxes | (30,453) | (24,446) |
Current income tax expense: | ||
Federal | (53) | |
State | 5 | (3) |
Foreign | (494) | 1,282 |
Total Current | (542) | 1,279 |
Deferred income tax expense: | ||
Federal | 54 | |
Foreign | (33) | 109 |
Total Deferred | 21 | 109 |
Total provision (benefit) for income taxes | $ (521) | $ 1,388 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Differs from Federal Statutory Rate (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21.00% | 21.00% |
State income taxes, net of federal tax benefits | (0.54%) | 0.61% |
Stock compensation | (0.74%) | (1.27%) |
Foreign rate differential | 2.38% | (3.53%) |
Tax credits | 0.00% | 0.68% |
GILTI Inclusion | (0.81%) | (0.76%) |
Section 382 limits | (27.71) | 0 |
Non-deductible expenses | (0.17%) | (4.58%) |
Valuation allowance | 8.30% | (14.58%) |
Other, net | 0.00% | (3.25%) |
Effective tax rate | 1.71% | (5.68%) |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Gross deferred tax assets: | |||
Net operating loss carryforward | $ 12,684 | $ 9,587 | |
Tax credits | 92 | 725 | |
Accruals and reserves | 2,113 | 2,461 | |
Property and equipment | 83 | ||
Alternative minimum tax credits | 21 | 89 | |
Total gross deferred tax assets | 14,993 | 12,862 | |
Less: valuation allowance | (14,281) | (11,814) | $ (8,088) |
Total deferred tax assets net of valuation allowance | 712 | 1,048 | |
Deferred tax liabilities: | |||
Property and equipment | (37) | ||
Accrual and reserves | (678) | (1,025) | |
Net deferred tax assets | 34 | ||
Net deferred tax liabilities | $ (14) | ||
Property and equipment | $ 83 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | |||
Valuation allowance | $ 14,281,000 | $ 11,814,000 | $ 8,088,000 |
Change in valuation allowance | 2,467,000 | 3,726,000 | |
Undistributed earnings of foreign subsidiaries | 9,156,000 | ||
Recognized federal net operating loss carryforwards net of tax | 37,206,000 | ||
Recognized state net operating loss carryforwards net of tax | 7,319,000 | ||
Unrecognized tax benefits accounted for as a reduction in deferred tax assets | 31,000 | ||
Unrecognized tax benefits would affect the effective tax rate if recognized | 1,159,000 | ||
Unrecognized tax benefits | 1,190,000 | 6,900,000 | 5,957,000 |
Gross (decreases)-prior period tax positions | 5,818,000 | ||
Decreases-prior period tax positions related to de-recognized net operating losses and tax credits | 5,042,000 | ||
Unrecognized tax benefits decrease resulting from settlements with taxing authorities | 776,000 | ||
Accrued interest and penalties related to unrecognized tax benefits | 262,000 | 229,000 | |
Accrued liability for Interest and penalties related to unrecognized tax benefits | 84,000 | 346,000 | |
Settlements prior period tax positions | 95,000 | ||
Federal | |||
Income Tax Disclosure [Line Items] | |||
Research and development tax credit | 0 | 632,000 | |
California | |||
Income Tax Disclosure [Line Items] | |||
Research and development tax credit | 117,000 | 117,000 | |
Expire Beginning in 2020 | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | 9,938,000 | ||
Federal | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | 56,805,000 | 42,415,000 | $ 46,866,000 |
State | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | $ 12,418,000 | $ 11,492,000 |
Income Taxes - Schedule of Esti
Income Taxes - Schedule of Estimate of Cumulative Foreign Earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Line Items] | ||
Estimate of cumulative foreign earnings | $ 9,156 | $ 10,398 |
China | ||
Income Tax Disclosure [Line Items] | ||
Estimate of cumulative foreign earnings | 4,195 | 5,818 |
India | ||
Income Tax Disclosure [Line Items] | ||
Estimate of cumulative foreign earnings | $ 4,961 | $ 4,580 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Operating Loss Carryovers (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Federal | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | $ 56,805 | $ 42,415 | $ 46,866 |
State | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | $ 12,418 | $ 11,492 |
Income Taxes - Schedule of Rese
Income Taxes - Schedule of Research and Development Credit Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
R&D credits | $ 0 | $ 632 |
California | ||
Income Tax Disclosure [Line Items] | ||
R&D credits | $ 117 | $ 117 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized benefit-beginning of period | $ 6,900,000 | $ 5,957,000 |
Gross increases-prior period tax positions | 96,000 | 400,000 |
Gross (decreases)-prior period tax positions | (5,818,000) | |
Settlements prior period tax positions | (95,000) | |
Gross increases -current period tax positions | 107,000 | 543,000 |
Unrecognized benefit-end of period | $ 1,190,000 | $ 6,900,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Dec. 11, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | |||
Noncancelable operating leases expiration beginning year | 2021 | ||
Rent expense | $ 1,568,000 | $ 1,243,000 | |
Aggregate amount of noncancelable purchase orders | 5,113,000 | 1,022,000 | |
Contingent severance obligation accrual | $ 0 | 0 | |
Severance obligation change in control period | 12 months | ||
Transaction Bonus Plan ("Plan") | |||
Loss Contingencies [Line Items] | |||
Percentage of consideration payable | 10.00% | ||
Term of plan | 3 years | ||
Chief Executive Officer | Transaction Bonus Plan ("Plan") | |||
Loss Contingencies [Line Items] | |||
Percentage of ownership interest in plan | 50.00% | ||
Chief Financial Officer | Transaction Bonus Plan ("Plan") | |||
Loss Contingencies [Line Items] | |||
Percentage of ownership interest in plan | 10.00% | ||
Other Key Employees [Member] | Transaction Bonus Plan ("Plan") | |||
Loss Contingencies [Line Items] | |||
Percentage of ownership interest in plan | 40.00% | ||
Consultants [Member] | Transaction Bonus Plan ("Plan") | |||
Loss Contingencies [Line Items] | |||
Percentage of ownership interest in plan | 9.00% | ||
Pearson Action | |||
Loss Contingencies [Line Items] | |||
Contingent severance obligation accrual | 2,000,000 | ||
Cost of Revenues | |||
Loss Contingencies [Line Items] | |||
Royalty expense | $ 2,288,000 | 2,886,000 | |
Maximum | |||
Loss Contingencies [Line Items] | |||
Severance obligation before change in control | 1,754,000 | ||
Severance obligation change in control | $ 2,345,000 | ||
Wireless Essential Patent Holders | |||
Loss Contingencies [Line Items] | |||
Royalty expire year | 2021 | ||
Wireless Essential Patent Holders | Maximum | |||
Loss Contingencies [Line Items] | |||
Royalty payment percent of net revenues | 5.00% | ||
Other Providers of Integrated Technologies | |||
Loss Contingencies [Line Items] | |||
Royalty expire year | 2023 | ||
Other Providers of Integrated Technologies | Maximum | |||
Loss Contingencies [Line Items] | |||
Royalty payment percent of net revenues | 5.00% |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments under Noncancelable Operating Lease Commitments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 694 |
2022 | 484 |
2023 | 454 |
2024 | 467 |
2025 | 318 |
Future minimum lease payments under noncancelable operating lease commitments | $ 2,417 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Related Party Transactions [Abstract] | |
Consulting fees | $ 56 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||
Net loss | $ (29,932) | $ (25,834) |
Denominator: | ||
Weighted–average shares used in computing net loss per share, basic and diluted | 46,208,894 | 18,603,582 |
Net loss per share, basic and diluted | $ (0.65) | $ (1.39) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Potentially Dilutive Common Shares were Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 4,135,344 | 3,657,356 |
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 | 1,443,940 | 2,645,714 |
Unvested Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 2,691,375 | 249,500 |
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 | 29 | 956 |
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 | 761,186 |
Entity Level Information - Addi
Entity Level Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of reporting segment | Segment | 1 | |
Allowance for credit losses | $ 65 | $ 52 |
Receivables | Customer Concentration | Customer One | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 23.00% | 40.00% |
Receivables | Customer Concentration | Customer Two | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 28.00% | |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 3,040 | $ 5,976 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 782 | $ 1,161 |
Entity Level Information - Summ
Entity Level Information - Summary of Revenue by Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 63,992 | $ 116,251 |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 46,107 | 90,597 |
Canada and Latin America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 14,228 | 17,400 |
Europe and Middle East [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 1,978 | 5,308 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 1,679 | $ 2,946 |
Entity Level Information - Comp
Entity Level Information - Composition of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 63,992 | $ 116,251 |
Product Sales | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | 63,627 | 115,807 |
Services | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 365 | $ 444 |
Entity Level Information - Perc
Entity Level Information - Percentage of Total Revenues (Details) - Revenues - Customer Concentration | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 76.00% | 70.00% |
Customer A | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 15.00% | 37.00% |
Customer B | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 10.00% | 18.00% |
Customer C | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 40.00% | 15.00% |
Customer D | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 11.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Jan. 01, 2021Employee |
Software | |
Subsequent Event [Line Items] | |
Transfer of employees | 105 |
Manufacturing | |
Subsequent Event [Line Items] | |
Transfer of employees | 22 |