Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 21, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
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 | $ 37,359,618 | ||
Entity Common Stock, Shares Outstanding | 19,269,213 | ||
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 $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-38907 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, State or Province | TX | ||
Entity Address, Address Line One | 6500 River Place Boulevard, Bldg. 7 | ||
Entity Address, Address Line Two | S#250 | ||
Entity Address, City or Town | Austin | ||
Entity Tax Identification Number | 94-3336783 | ||
Entity Address, Postal Zip Code | 78730 | ||
City Area Code | 650 | ||
Local Phone Number | 378-8100 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Moss Adams LLP | ||
Auditor Firm ID | 659 | ||
Auditor Location | Campbell, CA | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain information required by Part III, Items 10-14 of this Form 10-K will either be (i) included in an amendment to this Annual Report on Form 10-K, or (ii) incorporated by reference to the Registrant's Proxy Statement for the 2022 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission not later than 120 days after the end of the fiscal year covered by this Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 11,233 | $ 22,141 |
Accounts receivable, net | 10,803 | 4,152 |
Non-trade receivable | 2,255 | 453 |
Inventory | 5,544 | 11,344 |
Prepaid expenses and other current assets | 5,852 | 7,481 |
Total current assets | 35,687 | 45,571 |
Property and equipment, net | 534 | 843 |
Other assets | 4,869 | 3,898 |
Total assets | 41,090 | 50,312 |
Liabilities and stockholders' equity | ||
Current portion of long-term debt | 148 | 177 |
Accounts payable | 9,473 | 8,856 |
Accrued expenses | 11,353 | 11,436 |
Deferred revenue | 11 | 5 |
Total current liabilities | 20,985 | 20,474 |
Income tax payable | 1,409 | 1,243 |
Long-term debt, less current portion | 66 | 185 |
Total liabilities | 22,460 | 21,902 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity | ||
Common stock, $0.001 par value per share; 100,000,000 shares authorized: and 18,808,885 and 6,631,039 shares issued and outstanding at, December 31, 2021 and December 31, 2020, respectively. | 19 | 7 |
Preferred stock, $0.001 par value per share, 5,000,000 shares authorized | ||
Additional paid-in capital* | 253,416 | 224,581 |
Accumulated deficit | (234,805) | (196,178) |
Total stockholders’ equity | 18,630 | 28,410 |
Total liabilities and stockholders' equity | $ 41,090 | $ 50,312 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 18,808,885 | 6,631,039 |
Common stock, shares outstanding | 18,808,885 | 6,631,039 |
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, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | |||
Net revenues | $ 54,570 | $ 63,992 | |
Cost of revenues | 48,156 | 48,781 | |
Gross profit | 6,414 | 15,211 | |
Operating expenses: | |||
Research and development | 17,696 | 16,218 | |
Sales and marketing | 9,566 | 10,411 | |
General and administrative | 10,284 | 9,834 | |
Legal expenses | 6,869 | 6,462 | |
Restructuring costs | 1,546 | ||
Total operating expenses | 44,415 | 44,471 | |
Loss from operations | (38,001) | (29,260) | |
Interest expense | (759) | ||
Other expense, net | (459) | (434) | |
Loss before income taxes | (38,460) | (30,453) | |
Income tax (expense) benefit | (167) | 521 | |
Net loss | $ (38,627) | $ (29,932) | |
Net loss per share, basic and diluted* | [1] | $ (4.08) | $ (6.48) |
Weighted–average shares used in computing net loss per share, basic and diluted* | [1] | 9,464,560 | 4,620,855 |
[1] | Reflects the 1-for-10 reverse stock split that became effective on September 15, 2021. Refer to Note 1 – The Company and its Significant Accounting Policies for further information. |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) | Sep. 15, 2021 |
Income Statement [Abstract] | |
Reverse stock split | 1-for-10 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | ||
Balance, beginning of period at Dec. 31, 2019 | $ 25,525 | $ 2 | [1] | $ 191,769 | $ (166,246) | |
Balance, shares at Dec. 31, 2019 | [1] | 2,043,701 | ||||
Issuance of common stock, net of issuance costs | 25,086 | $ 4 | [1] | 25,082 | ||
Issuance of common stock, net of issuance costs, shares | [1] | 3,680,000 | ||||
Issuance of common stock, settlement of long-term debt | 6,170 | $ 1 | [1] | 6,169 | ||
Issuance of common stock, settlement of long-term debt, shares | [1] | 822,682 | ||||
Issuance of common stock upon exercise of stock options | $ 382 | 382 | ||||
Issuance of common stock upon exercise of stock options, shares | 54,116 | 54,127 | [1] | |||
Issuance of common stock upon purchase of ESPP | $ 98 | 98 | ||||
Issuance of common stock upon purchase of ESPP, shares | [1] | 19,210 | ||||
Net settlement of common stock upon release of RSU | (6) | (6) | ||||
Net settlement of common stock upon release of RSU, shares | [1] | 11,319 | ||||
Employee and nonemployee stock-based compensation | 1,087 | 1,087 | ||||
Net loss | (29,932) | (29,932) | ||||
Balance, at end of period at Dec. 31, 2020 | 28,410 | $ 7 | [1] | 224,581 | (196,178) | |
Balance, shares at Dec. 31, 2020 | [1] | 6,631,039 | ||||
Issuance of common stock, net of issuance costs | 27,702 | $ 12 | [1] | 27,690 | ||
Issuance of common stock, net of issuance costs, shares | [1] | 12,101,691 | ||||
Common stock variance, reverse stock split | [1] | 29 | ||||
Issuance of common stock upon exercise of stock options | $ 5 | 5 | ||||
Issuance of common stock upon exercise of stock options, shares | 707 | 707 | [1] | |||
Issuance of shares for RSU awards | [1] | 55,683 | ||||
Issuance of common stock upon purchase of ESPP | $ 55 | 55 | ||||
Issuance of common stock upon purchase of ESPP, shares | [1] | 19,736 | ||||
Employee and nonemployee stock-based compensation | 1,085 | 1,085 | ||||
Net loss | (38,627) | (38,627) | ||||
Balance, at end of period at Dec. 31, 2021 | $ 18,630 | $ 19 | [1] | $ 253,416 | $ (234,805) | |
Balance, shares at Dec. 31, 2021 | [1] | 18,808,885 | ||||
[1] | Reflects the 1-for-10 reverse stock split that became effective on September 15, 2021. Refer to Note 1 – The Company and its Significant Accounting Policies for further information. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) | Sep. 15, 2021 |
Statement Of Stockholders Equity [Abstract] | |
Reverse stock split | 1-for-10 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (38,627) | $ (29,932) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,129 | 2,728 |
Stock-based compensation | 1,085 | 1,087 |
Loss on disposal of assets | 54 | |
Inventory write-downs | 1,594 | 702 |
Noncash interest expense | 166 | |
Accretion of debt discount | 328 | |
Deferred income taxes | (35) | 21 |
Bad debt expense | 867 | 302 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,518) | 5,917 |
Non-trade receivable | (1,802) | (453) |
Inventory | 4,181 | 7,485 |
Prepaid expenses and other current assets | 1,167 | (1,104) |
Other assets | (2,727) | 531 |
Accounts payable | 617 | 1,494 |
Accrued expenses | 611 | 1,172 |
Deferred revenue | 6 | (286) |
Income tax payable | 166 | (718) |
Net cash used in operating activities | (38,476) | (10,560) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (46) | (11) |
Net cash used in investing activities | (46) | (11) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net of costs | 27,702 | 25,086 |
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) | |
Proceeds from exercise of stock options | 5 | 382 |
Proceeds from ESPP | 55 | 98 |
Repayment of long-term debt | (148) | (4,146) |
Net cash provided by financing activities | 27,614 | 21,414 |
Net increase (decrease) in cash and cash equivalents | (10,908) | 10,843 |
Cash and cash equivalents at beginning of the year | 22,141 | 11,298 |
Cash and cash equivalents at end of the year | 11,233 | 22,141 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 260 | |
Cash paid for income taxes | $ 87 | 76 |
Non-cash investing and financing activities: | ||
Other assets included in accounts payable | 128 | |
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, 2021 | |
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. On September 15, 2021, the Company effected a 1-for-10 stock split (the “Reverse Stock Split”) of its issued and outstanding shares of common stock on that date. Additionally, the number of shares of the Company’s common stock subject to outstanding stock options and restricted stock units, the exercise price of all of its outstanding stock options, and the number of shares of common stock reserved for future issuance pursuant to its equity compensation plans were adjusted proportionately in connection with the Reverse Stock Split. The number of authorized shares of common stock under the Company’s Amended and Restated Certificate of Incorporation and the par value per share of its common stock were unchanged. All historical share and per share amounts presented herein have been adjusted retrospectively to reflect these changes. 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, 2021, consist of existing cash and cash equivalents totaling $11,233 , and our ability to raise additional capital through the issuance of equity, and positive cash flow from the sale of products that are currently in development over the next year. The Company had a net loss for the year ended December 31, 2021 of $38,627and used $38,476 in cash from operations that raises substantial doubt regarding the Company’s ability to continue as a going concern for a period of at least one yar from the date of issuance of these consolidated financial statements. To alleviate a potential lack of liquidity, management is currently evaluating various funding alternatives and may continue to issue and sell the Company’s stock through their current at-the-market stock sale program. Management is also evaluating various funding alternatives and may seek to raise additional funds through other issuances of equity, mezzanine or debt securities, through arrangements with strategic or investment partners with greater sources of financing or through obtaining credit from government or financial institutions. The Company’s ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, the Company’s performance and investor sentiment with respect to the Company and its industry. 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 India Private Limited, Sonim Technologies (Shenzhen) Limited, Sonim Technologies (Hong Kong) Limited and Sonim Communications India Private Limited (collectively, the “Company”). All significant intercompany transactions and balances have been eliminated in consolidation. Estimates —The preparation of 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; the recognition and measurement of income tax assets and liabilities, including uncertain tax positions; the net realizable value of inventory; and allowances for bad debt. 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, 2021 and 2020. 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 $932 and $65 at December 31, 2021 and 2020, respectively, and recognized $936 and $302 in bad debt expense during the years ended December 31, 2021 and 2020, 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, 2021, and 2020, 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 $432 and $822 of foreign cash and cash equivalents included in the Company’s cash positions on December 31, 2021 and 2020, respectively. Accounts Receivable and Allowance for Doubtful Accounts —Accounts 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, 2021 and 2020, amortization of NRE tooling and NRE software costs approximating $72 and $2,303 were charged to cost of revenues. The related net book value is $26 and $90, respectively, as of December 31, 2021 and 2020. In addition, as of December 31, 2021 and 2020, other Assets includes $2,345 and $2,889, 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 accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers . The Company recognizes revenue primarily from the sale of products, including our mobile phones, scanners, and accessories. The Company also recognizes revenue from other contractual arrangements that may include a combination of products and 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. 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, 2021 and 2020 were approximately zero and $17, 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 determined that the NRE technical approval costs and the NRE field test costs are contract fulfillment costs, and recognizes the associated NRE asset as these costs are incurred. The Company tracks the NRE asset by product and customer, then amortizes 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. 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 9. 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. 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 warranty coverage is an assurance type warranty, and thus is not a separate performance obligation. 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. Comprehensive Income or Loss —The Company had no items of comprehensive income or loss other than net loss for the years ended December 31, 2021 and 2020. 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 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, 2021 and 2020, the Company had approximately $378 and $389, respectively, in net foreign currency transactions losses, which are included in other expense, net on the consolidated statements of operations. Sales taxes —Sales and value added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and not included in revenue. Income taxes —The (expense) 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 10, “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, 2021 and 2020, for purposes of the calculation of diluted net loss per share, 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 share is the same as the basic net loss per share for the periods presented . Restructuring and Reduction in Force — The Company reduced its global headcount from approximately 402 employees and 98 contractors at year-end 2019 to 263 employees and 54 contractors as of December 31, 2020 and to 77 During 2020, we reduced 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 22 employees to that partner to enhance their efficiency in taking over our production work. The severance liability related to these restructuring costs as of December 31, 2021 and 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 Payments: expenses paid out (459) Balance at December 31, 2021 $ — ATM Program On June 30, 2021, we entered into an At Market Issuance Sales Agreement (“Sales Agreement”) with B. Riley Securities, Inc. and EF Hutton, a division of Benchmark Investments, LLC (“Sales Agents”) to sell shares of our common stock having an aggregate offering price of up to $10,000, from time to time, through an “at-the-market offering” program (the “June 2021 ATM Program”). Under the terms of the Sales Agreement, we paid the Sales Agents a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. We exhausted this June 2021 ATM Program on July 14, 2021, selling an aggregate of 1,820,785 shares of our common stock at a weighted net On September 23, 2021, we entered into a new At Market Issuance Sales Agreement with B. Riley Securities, Inc., as sales agent, to sell shares of our common stock having an aggregate offering price of up to $41,637 from time to time, through a new “at the market offering” program (the “ATM Program”). Under the terms of the Sales Agreement, we will pay B. Riley Securities, Inc. a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. From September 27, 2021 through December 31, 2021, we issued and sold an aggregate of 10,280,906 shares of our common stock at an average net price per share of $1.89 under the ATM Program for net proceeds of approximately $19,389. Public Offering The 2020 Offering (“PO”) —On June 9, 2020, the Company completed an underwritten public offering (“PO”) in which the Company sold 3,680,000 shares of its common stock, at a price to the public of $7.50 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. New accounting pronouncements: 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. Pronouncements adopted in 2021: In December 2019, FASB issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) Pronouncements not yet adopted: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2 — The Company recognizes revenue primarily from the sale of products, including mobile phones, scanners, 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, 2021 and 2020, 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, except for certain distributors where the company estimates future returns and reduces revenue on sales subject to return and maintains a reserve for returns allowance . 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 material s . 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. Control is generally transferred when the Company has a present right to payment and title and the significant risks and rewards of ownership of products or services are transferred to its customers. For most of the Company’s revenue attributable to hardware, control transfers when products are shipped. for Disaggregation of revenue The following table presents our net revenue disaggregate by product category for the years ended: Year Ended December 31, 2021 2020 (in thousands) Smartphones $ 14,794 $ 25,880 Feature Phones 37,723 35,332 Accessories/Other 2,053 2,780 Total Revenue $ 54,570 $ 63,992 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 non-recurring costs associated with design and development of new products for technical approval, represent costs to fulfill a contract pursuant to ASC 340-40 , Other Assets and Deferred Costs . 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 4 years , the estimated life of a particular model phone The total capitalized costs to fulfill a contract is primarily associated with Company’s introduction of the XP8 model phone and the XP3plus model feature phone. As of December 31, 2021, and 2020, the total costs to fulfill a contract included in other assets were $2,345 and $2,889, respectively. Contract balances The Company records accounts receivable when it has an unconditional right to consideration. As of December 31, 2021, and 2020, 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, 2021: Contractual Liability Balance at January 1, 2021 $ 5 Recognition of revenue (880 ) Addition of revenue 886 Balance at December 31, 2021 $ 11 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
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 markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. 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, 2021 and 2020. 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, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 1,500 $ — $ — $ 1,500 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 17,905 $ — $ — $ 17,905 * Included in cash and cash equivalents on the consolidated balance |
Significant Balance Sheet Compo
Significant Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Significant Balance Sheet Components [Abstract] | |
Significant Balance Sheet Components | NOTE 4 —Significant Balance Sheet Components Inventory consisted of the following: December 31 2021 2020 Devices - for resale $ 2,952 $ 7,792 Raw materials 1,986 2,590 Accessories 606 962 $ 5,544 $ 11,344 During the year ended December 31, 2021, the Company recorded a $1,594 write-down of the inventory value for scanners, aging raw materials and aging finished goods. The Company accrued a loss of approximately $300 on purchase commitments in connection with end-of-life products. During the year ended December 31, 2020, the Company recorded an inventory reserve adjustment of approximately $700 as a result of aging materials and finished goods, and accrued a loss of approximately $500 of purchase commitments in connection with end-of-life products. Distributor returns allowance The Company records reductions to revenue related to future distributor product returns based on the Company’s expectation. The Company had inventory related to distributor product returns totaling approximately $229 and zero as of December 31, 2021 and 2020. Prepaid expenses and other current assets consisted of the following: December 31 2021 2020 Deposits for manufacturing inventory $ 1,041 $ 1,133 Prepaid taxes 544 641 Refundable value added taxes 1,693 509 Prepaid – NRE 350 2,629 Prepaid licenses and royalties 552 728 Director and officer insurance 770 862 Prepaid parts (direct buy) 185 167 Other 717 812 $ 5,852 $ 7,481 Property and equipment consisted of the following: December 31 2021 2020 Computer equipment $ 3,994 $ 4,858 Software 981 981 Furniture, fixtures, and office equipment 175 175 Leasehold Improvements 179 179 5,329 6,193 Less: accumulated depreciation and amortization (4,795 ) (5,350 ) $ 534 $ 843 Depreciation and amortization expense of property and equipment for the years ended December 31, 2021 and 2020, was $301 and $426, respectively. During 2021, the Company disposed of computer equipment with a cost of $910 and accumulated depreciation of $856. Other assets consisted of the following: December 31 2021 2020 Deferred NRE $ 2,345 $ 2,889 Advances to third party manufacturers 2,000 547 Deposits 431 339 Other 93 123 $ 4,869 $ 3,898 Accrued Expenses consisted of the following: December 31 2021 2020 Customer allowances $ 3,148 $ 3,042 Employee-related liabilities 1,893 2,273 Warranties 836 1,530 Accrual for goods received not invoiced 668 1,942 Contractual obligations 1,035 849 Royalties 1,210 655 Contractors — 55 Research and development 1,158 61 Shipping 157 170 Returns allowance 390 — Legal 517 320 Other 341 539 $ 11,353 $ 11,436 The table below sets forth the activity in the warranty liability account, which is included in accrued expenses on the C onsolidated B alance S heets for the years ended December 31, 20 2 1 and 20 20 : Balance, January 1, 2021 $ 1,530 Additions 1,086 Cost of warranty claims (1,780 ) Balance, December 31, 2021 $ 836 Balance, January 1, 2020 $ 1,154 Additions 2,088 Cost of warranty claims (1,712 ) Balance, December 31, 2020 $ 1,530 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable | NOTE 5 — Accounts Receivable The following table presents the components of the Company’s receivables as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Trade receivables $ 11,735 $ 4,217 Allowance for doubtful accounts (932 ) (65 ) Accounts receivable, net 10,803 4,152 Vendor non-trade receivables 2,255 453 Total accounts receivable $ 13,058 $ 4,605 The Company has non-trade receivables from a manufacturing vendor resulting from the sale of components to this vendor who manufactures and assembles final products for the Company. 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 $932 and $65 as of December 31, 2021 and 2020, respectively. The entire amount of the allowance at December 31, 2021, was for a distributor who is not a 10% customer. Trade receivables from one customer approximated 70% of total accounts receivable at December 31, 2021, and receivables from approximated % of total at December 31, 2020. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | NOTE 6 —Borrowings 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 to 1% after the second anniversary 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 $4,000 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 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 $214 and $362 at December 31, 2021 and 2020, 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: 2021 2020 Promissory note payable $ 214 $ 362 Less current portion (148 ) (177 ) Total long-term debt $ 66 $ 185 Future aggregate annual principal payments on all long-term debt, are as of December 31, 2021: Year Ending, December 31 st 2022 $ 148 2023 66 $ 214 |
Convertible Preferred Stock and
Convertible Preferred Stock and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | NOTE 7 —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. As of December 31, 2021, no shares of preferred stock have been issued. The following table shows shares of common stock reserved as of: December 31 2021 2020 Shares subject to options to purchase common stock 95,413 144,303 Unvested restricted stock units 347,111 269,138 Shares subject to warrants to purchase common stock 2 2 Total 442,526 413,443 NOTE 8 —Stockholders’ Equity On September 15, 2021, the Company effected a 1-for-10 Reverse Stock Split of its issued and outstanding shares of common stock on that date. Additionally, the number of shares of the Company’s common stock subject to outstanding stock options and restricted stock units, the exercise price of all of its outstanding stock options, and the number of shares of common stock reserved for future issuance pursuant to its equity compensation plans were adjusted proportionately in connection with the Reverse Stock Split. The number of authorized shares of common stock under the Company’s Amended and Restated Certificate of Incorporation and the par value per share of its common stock were unchanged. All historical share and per share amounts presented herein have been adjusted retrospectively to reflect these changes. On June 30, 2021, we entered into a Sales Agreement with Sales Agents to sell shares of our common stock, $0.001 par value per share, having an aggregate offering price of up to $10,000, from time to time, through the June 2021 ATM Program. Under the terms of the Sales Agreement, we paid the Sales Agents a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. We exhausted this June 2021 ATM Program on July 14, 2021, selling an aggregate of 1,820,785 shares of our common stock at a weighted average net price per share of $4.59 and for net proceeds of approximately $8,313 during the year ended December 31, 2021. On September 23, 2021, we entered into a new Sales Agreement with the Sales Agent, to sell shares of our common stock, $0.001 par value per share, having an aggregate offering price of up to $41,637 from time to time, through a new ATM Program. Under the terms of the Sales Agreement, we will pay the Sales Agent a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. From September 27, 2021 through December 31, 2021, we issued and sold an aggregate of 10,280,906 shares of our common stock at a weighted average net price per share of $1.89 under the ATM Program for net proceeds of approximately $ 19,389 As of December 31, 2021, we had approximately $21,600 available for future issuances under the ATM Program. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Convertible Preferred Stock and Stockholders' Equity | NOTE 7 —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. As of December 31, 2021, no shares of preferred stock have been issued. The following table shows shares of common stock reserved as of: December 31 2021 2020 Shares subject to options to purchase common stock 95,413 144,303 Unvested restricted stock units 347,111 269,138 Shares subject to warrants to purchase common stock 2 2 Total 442,526 413,443 NOTE 8 —Stockholders’ Equity On September 15, 2021, the Company effected a 1-for-10 Reverse Stock Split of its issued and outstanding shares of common stock on that date. Additionally, the number of shares of the Company’s common stock subject to outstanding stock options and restricted stock units, the exercise price of all of its outstanding stock options, and the number of shares of common stock reserved for future issuance pursuant to its equity compensation plans were adjusted proportionately in connection with the Reverse Stock Split. The number of authorized shares of common stock under the Company’s Amended and Restated Certificate of Incorporation and the par value per share of its common stock were unchanged. All historical share and per share amounts presented herein have been adjusted retrospectively to reflect these changes. On June 30, 2021, we entered into a Sales Agreement with Sales Agents to sell shares of our common stock, $0.001 par value per share, having an aggregate offering price of up to $10,000, from time to time, through the June 2021 ATM Program. Under the terms of the Sales Agreement, we paid the Sales Agents a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. We exhausted this June 2021 ATM Program on July 14, 2021, selling an aggregate of 1,820,785 shares of our common stock at a weighted average net price per share of $4.59 and for net proceeds of approximately $8,313 during the year ended December 31, 2021. On September 23, 2021, we entered into a new Sales Agreement with the Sales Agent, to sell shares of our common stock, $0.001 par value per share, having an aggregate offering price of up to $41,637 from time to time, through a new ATM Program. Under the terms of the Sales Agreement, we will pay the Sales Agent a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. From September 27, 2021 through December 31, 2021, we issued and sold an aggregate of 10,280,906 shares of our common stock at a weighted average net price per share of $1.89 under the ATM Program for net proceeds of approximately $ 19,389 As of December 31, 2021, we had approximately $21,600 available for future issuances under the ATM Program. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | NOTE 9—Stock-based Compensation On September 15, 2021, the Company effected a 1-for-10 stock split (the “Reverse Stock Split”) of its issued and outstanding shares of common stock on that date. Additionally, the number of shares of the Company’s common stock subject to outstanding stock options and restricted stock units, the exercise price of all of its outstanding stock options, and the number of shares of common stock reserved for future issuance pursuant to its equity compensation plans were adjusted proportionately in connection with the Reverse Stock Split. All historical share and per share amounts presented herein have been adjusted retrospectively to reflect these changes. As of December 31, 2021, the Company had the 2012 Equity Incentive Plan (the “2012 Option Plan”), 2019 Equity Incentive Plan (the “2019 Option Plan”) and the 2019 Employee Stock Purchase Plan in place. As of December 31, 2021, the number of shares available to be issued under the 2019 Option Plan were 538,243. 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 four-year 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 54,137 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 50,000 a lesser increase, or no increase. The increase under the 2019 Option Plan for 2021 and 2020 was 331,551 and 102,185 shares. 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 300,000 shares, which was approved by the Company’s stockholders on September 29, 2020 . As of December 31, 2021 and 2020, 19,736 and 19,210 shares of common stock respectively were issued under the 2019 Employee Stock Purchase Plan. On June 17, 2021, and June 18, 2021, the Company granted an aggregate of 46,747 restricted stock units to the Company’s board of directors and an executive. On July 1, 2021, the Company granted an aggregate of 850 restricted stock units to the Company’s employees. On October 8, 2021, the Company granted an aggregate of 75,000 restricted stock units to a member of the board of directors. On November 12, 2021, the Company granted an aggregate of 97,671 restricted stock units to members of the board of directors. On June 9, 2020, the Company granted an aggregate of 201,550 restricted stock units to the Company’s board of directors, executives and employees. On September 29, 2020, the Company granted an aggregate of 67,650 restricted stock units to the Company’s executives and employees. On December 14, 2020, the Company granted an aggregate of 11,400 restricted stock units to an ex-member of the board of directors who will be serving in a consulting capacity. Stock-based compensation expense is as follows: For the Year Ended December 31 2021 2020 Research and development $ 159 $ 252 Sales and marketing 188 230 General and administrative 673 548 Cost of revenues 65 57 $ 1,085 $ 1,087 On January 27, 2022, 415,023 shares of common stock were issued under the 2019 Employee Stock Purchase Plan as payment to three executives for bonuses that relate to the 2021 year. The dollar value of these bonuses was fixed at $254 as of December 31, 2021, and the number of shares issued on January 27, 2022 was determined based on the closing stock price on that date. As of December 31, 2021, the bonus was fully vested and $254 was included in accrued expenses. Stock Options: Stock option activity for the years ended December 31, 2021 and 2020 is as follows and reflects the 1-for-10 Reverse Stock Split that became effective on September 15, 2021: Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic Options per share (in years) Value* Outstanding at January 1, 2020 264,443 $ 35.00 8.51 $ 4,184 Options granted 2,600 $ 8.58 Options exercised (54,116 ) $ 7.06 Options forfeited (51,079 ) $ 47.27 Options cancelled (17,545 ) $ 70.44 Outstanding at December 31, 2020 144,303 $ 36.37 7.82 $ 24 Options granted 0 $ Options exercised (707 ) $ 7.50 Options forfeited (23,171 ) $ 27.55 Options cancelled (25,012 ) $ 29.60 Outstanding at December 31, 2021 95,413 $ 40.00 6.73 $ 0 Vested and expected to vest at December 31, 2021 95,413 $ 40.00 6.71 $ 0 Exercisable at December 31, 2021 61,130 $ 44.34 6.05 $ 0 *The intrinsic value is calculated as the difference between the exercise price and the fair value of the common stock on the balance sheet date. As of December 31, 2021, there was approximately $2,034 of unamortized stock-based compensation cost related to unvested stock options and RSU’s, which is expected to be recognized over a weighted average period of four years. The total pre-tax intrinsic value of options exercised during the years ended December 31, 2021 and 2020 was zero and $50, 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 fair value of options granted during the years ended December 31, 2020 was $4.10. 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. Stock-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 fair value of option grants made during the years ended December 31, 2020, was estimated using the following Black-Scholes option pricing model assumptions: 2020 Expected dividend yield 0% Risk-free interest rate 0.26%-0.46% Expected volatility 50% Expected life (in years) 6.25 Restricted Stock Awards: As of December 31, 2021, and 2020, the unvested restricted stock units totaled 347,111 and 269,138 shares, respectively. The following table summarized the outstanding RSU’s as of December 31, 2021: RSU's Outstanding at January 1, 2021 269,138 Granted 220,268 Released (55,683 ) Forfeited (86,612 ) Outstanding at December 31, 2021 347,111 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 —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: 2021 2020 Domestic loss $ (39,065 ) $ (31,390 ) Foreign subsidiaries income 605 937 Income (loss) before income taxes $ (38,460 ) $ (30,453 ) 2021 2020 Current income tax expense: Federal $ — $ (53 ) State 17 5 Foreign 169 (494 ) Total Current 186 (542 ) Deferred income tax expense: Federal — 54 State — — Foreign (19 ) (33 ) Total Deferred (19 ) 21 Total provision (benefit) for income taxes $ 167 $ (521 ) The Company’s effective tax rate differs from the federal statutory rate due to the following for the years ended December 31: 2021 2020 Statutory federal income tax rate 21.00 % 21.00 % State income taxes, net of federal tax benefits 1.65 % -0.54 % Stock compensation -0.54 % -0.74 % Foreign rate differential -0.06 % 2.38 % Tax credits 0.26 % 0.00 % GILTI Inclusion -0.41 % -0.81 % Section 382 limits 0.00 % -27.71 % Non-deductible expenses -0.01 % -0.17 % Valuation allowance -22.34 % 8.30 % Effective tax rate -0.44 % 1.71 % 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: 2021 2020 Gross deferred tax assets: Net operating loss carryforward $ 20,702 $ 12,684 Tax credits 199 92 Accruals and reserves 2,333 2,113 Property and equipment 102 83 Alternative minimum tax credits 21 21 Total gross deferred tax assets 23,357 14,993 Less: valuation allowance (22,738 ) (14,281 ) Total deferred tax assets net of valuation allowance 619 712 Deferred tax liabilities: Property and equipment — — Accrual and reserves (550 ) (678 ) Net deferred tax assets (liabilities) $ 69 $ 34 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. The valuation allowance increased by $8,477 from $14,281 as of December 31, 2020 to $22,738 as of December 31, 2021, and by $2,467 from $11,814 to $14,281 as of December 31, 2020. At December 31, 2021 and 2020, the Company had net deferred income tax assets related primarily to net operating loss carry forwards, accruals and reserves and tax credit carryforward that are not currently being recognized of $22,738 and $14,281, respectively, which have been offset by a valuation allowance. We have not provided U.S. Federal and State income taxes, nor foreign withholding taxes on approximately $9,802 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 newly enacted 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: 2021 2020 China $ 4,741 $ 4,195 India 5,061 4,961 Total $ 9,802 $ 9,156 The Company had net operating loss carryovers (NOL) for federal and state income tax purposes of approximately $92,262 and $27,577, respectively, as of December 31, 2021. Approximately $9,939 2021 2020 Federal NOL $ 92,262 $ 56,805 State NOL $ 27,577 $ 12,418 The Company had research and development (“R&D”) credit carryforwards as follows as of December 31: 2021 2020 Federal R&D credits $ 99 $ — California R&D credits $ 126 $ 117 At December 31, 2021, the Company had approximately $99 of federal and $126 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. The federal research credits expire on December 31, 2040. 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 the past that materially impacts the availability of its net operating losses and tax credits. 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. The Company had excess interest expense carryforwards of $1,499 as of December 31, 2021. Federal laws impose restrictions on the utilization of sec 163 (j) excess interest expense 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 June 2020 that materially impacts the availability of its excess interest expense. However, since the Section 163(j) excess interest expense carryover does not expire, there will be no limitation under Section 382 against the excess interest expense carryover in 2021. Should the Company utilize the excess interest expense in the future, the availability of its carryforwards would be substantially restricted. Uncertain Tax Positions The Company accounts for uncertainty in income taxes in accordance with ASC 740, Income Taxes. The following table summarizes the activity related to unrecognized tax benefits as follows as of December 31: In thousands 2021 2020 Unrecognized benefit-beginning of period $ 1,190 $ 6,900 Gross increases-prior period tax positions 34 96 Gross (decreases)-prior period tax positions — (5,818 ) Decrease prior period tax positions - settlements — (95 ) Gross increases -current period tax positions 82 107 Unrecognized benefit-end of period $ 1,306 $ 1,190 $66 of the unrecognized tax benefits as of December 31, 2021, are accounted for as a reduction in the Company’s deferred tax assets. Due to the Company’s valuation allowance, only $1,240 of the $1,306 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 expense of $52 of interest and penalties in 2021 and the Company has accrued a $136 liability for accrued interest and penalties related to unrecognized tax benefit as of December 31, 2021. 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 California purposes and for 2017 and forward for federal tax purposes. The statute of limitations remains open for China tax years 2015 and later, and for India tax years 2016 and later . Accounting for GILTI requires companies to adopt tax accounting policies related to: Treating the book-tax differences as either period costs or to recognize GILTI related deferred tax assets/liabilities in accounting for the GILTI book-tax differences. The Company has elected to treat this difference as a period cost. In the Company’s valuation allowance analysis, the Company will elect the Increment Cash Tax Savings Approach in determining its U.S. valuation allowance. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 —Commitments and Contingencies The terms and conditions of applicable bylaws, certificates or articles of incorporation, agreements or applicable law may obligate Sonim Operating leases— The Company leases several facilities under noncancelable operating leases that began 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 2022 $ 747 2023 515 2024 467 2025 318 $ 2,047 Rent expense was approximately $1,071 and $1,568 for the years ended December 31, 2021 and 2020. Third Party Designer Commitments —The aggregate amount of noncancelable outsourced third party designer services for our next generation phones as of December 31, 2021 and 2020, was approximately $6,460 and zero, respectively, and were related to the XP5plus and the XP10 . Purchase Commitments —The aggregate amount of noncancelable purchase orders as of December 31, 2021 and 2020, was approximately $5,663 and $5,113, 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 from 2022 through 2026. Royalty expense for the years ended December 31, 2021 and 2020, was $2,168 and $2,288 , respectively, which are included in cost of revenues on the consolidated statements of operations. The Company may be required to pay additional royalties to additional patent holder and technology providers on future products. 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 into events that occurred in 2018-2019. The Company has been cooperating in the SEC’s ongoing investigation. In October 2021, the Company and the SEC Staff began discussions regarding a potential resolution of the investigation. These discussions are ongoing. The Company is unable to predict the likely outcome of the investigation, including whether it can be resolved through settlement negotiations, 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 Company 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”). The allegations in the Gupta complaint are generally similar to those in the Kusiak action. The Company filed a motion to dismiss the Gupta derivative action based on plaintiff’s failure to make a litigation demand on Sonim’s directors. Given the early stages of this proceeding and the limited information available, the Company 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 Arrangements) 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 in accordance to the terms of the agreements. On May 31, 2021, the Company and Tom Wilkinson agreed that he will cease serving as the Company’s Chief Executive Officer. In connection with his departure, the Company entered into a Separation and Release Agreement with him pursuant to which he will continue to be paid his base salary of $400, the rate in effect on the effective date for a period of twelve months, subject to tax withholding and any other authorized deductions. 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 . |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | NOTE 12 — The following table sets forth the computation of the Company’s basic and diluted net loss per share for the periods ended and reflects the 1-for-10 Reverse Stock Split that became effective on September 15, 2021: : For the Years Ended December 31 2021 2020 Numerator: Net loss $ (38,627 ) $ (29,932 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 9,464,560 4,620,855 Net loss per share, basic and diluted $ (4.08 ) $ (6.48 ) 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 2021 2020 Shares subject to options to purchase common stock 95,413 144,303 Unvested restricted stock units 347,111 269,138 Shares subject to warrants to purchase common stock 2 2 Total 442,526 413,443 |
Entity Level Information
Entity Level Information | 12 Months Ended |
Dec. 31, 2021 | |
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 operating 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 2021 2020 U.S. $ 42,356 $ 46,107 Canada and Latin America 9,401 14,228 Europe and Middle East 1,142 1,978 Asia Pacific 1,671 1,679 $ 54,570 $ 63,992 Long-lived assets located in the United States and Asia Pacific region were $2,370 and $3,040, The composition of revenues is as follows: For the Years Ended December 31 2021 2020 Product Sales $ 54,476 $ 63,627 Services 94 365 Total revenues $ 54,570 $ 63,992 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, 2021 and 2020. 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 $932 and $65 at December 31, 2021 and 2020, respectively. Receivables from one customer approximated 70% of total accounts receivable at December 31, 2021 and two customers approximated 26% and 10% of total accounts receivable at December 31, 2020. Revenue from certain customers in 2021 and 2020 accounted for approximately the following percentage of total revenues: For the Years Ended December 31, 2021 2020 Customer A 23 % 15 % Customer B 23 % 40 % Customer C 22 % 10 % Customer D 8 % 11 % Total 76 % 76 % |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | NOTE 14 —Restructuring Costs At the beginning of 2021, the Company outsourced substantially all of its software development to a third-party and transferred 105 employees to support the ongoing work to be performed. In connection with outsourcing its software development, the Company entered into an agreement of future business volume over the next three years in the amount of $7,120, of which the Company has committed to that a minimum value of $3,100 will be assured in the first year of business. The Company has paid $3,127 during the year ended December 31, 2021. Additionally, at the beginning of 2021, the Company outsourced its manufacturing work to a supply chain partner and transferred 22 employees as part of this solution. During 2020, the Company continued to reduce headcount to better align its expenses with its 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. The Company has also relocated its headquarters from San Mateo, California to Austin, Texas, a lower cost location. The table below sets forth the activity in the Company’s restructuring costs during 2021 and 2020: Restructuring Costs Liability Balance at $ 511 Additions: expensed costs 1,663 Payments: expenses paid out (1,715 ) Balance at $ 459 Payments: expenses paid out (459) Balance at December 31, 2021 $ — Total restructuring costs of $1,663 The Company paid insignificant bonuses and cash settlement of options for the India employees for the year ended December 31, 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 —Subsequent Events On February 16, 2022, we received a deficiency letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying us that, for the last 30 consecutive business days, the bid price for our common stock had closed below $1.00 per share, which is the minimum closing price required to maintain continued listing on the Nasdaq Stock Market under Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we have been provided a period of 180 calendar days, or until August 15, 2022, in which to regain compliance. In order to regain compliance with the minimum bid price requirement, the closing bid price of our common stock must be at least $1.00 per share for a minimum of ten consecutive business days during this 180-day period. In the event that we do not regain compliance within this 180-day period, we may be eligible to seek an additional compliance period of 180 calendar days. We intend to actively monitor the closing bid price of our common stock and are evaluating available options to regain compliance with the Minimum Bid Requirement, including by effecting a reverse stock split |
The Company and its Significa_2
The Company and its Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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. On September 15, 2021, the Company effected a 1-for-10 stock split (the “Reverse Stock Split”) of its issued and outstanding shares of common stock on that date. Additionally, the number of shares of the Company’s common stock subject to outstanding stock options and restricted stock units, the exercise price of all of its outstanding stock options, and the number of shares of common stock reserved for future issuance pursuant to its equity compensation plans were adjusted proportionately in connection with the Reverse Stock Split. The number of authorized shares of common stock under the Company’s Amended and Restated Certificate of Incorporation and the par value per share of its common stock were unchanged. All historical share and per share amounts presented herein have been adjusted retrospectively to reflect these changes. |
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, 2021, consist of existing cash and cash equivalents totaling $11,233 , and our ability to raise additional capital through the issuance of equity, and positive cash flow from the sale of products that are currently in development over the next year. The Company had a net loss for the year ended December 31, 2021 of $38,627and used $38,476 in cash from operations that raises substantial doubt regarding the Company’s ability to continue as a going concern for a period of at least one yar from the date of issuance of these consolidated financial statements. To alleviate a potential lack of liquidity, management is currently evaluating various funding alternatives and may continue to issue and sell the Company’s stock through their current at-the-market stock sale program. Management is also evaluating various funding alternatives and may seek to raise additional funds through other issuances of equity, mezzanine or debt securities, through arrangements with strategic or investment partners with greater sources of financing or through obtaining credit from government or financial institutions. The Company’s ability to obtain additional financing in the debt and equity capital markets is subject to several factors, including market and economic conditions, the Company’s performance and investor sentiment with respect to the Company and its industry. |
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 India Private Limited, Sonim Technologies (Shenzhen) Limited, Sonim Technologies (Hong Kong) Limited and Sonim Communications India Private Limited (collectively, the “Company”). All significant intercompany transactions and balances have been eliminated in consolidation. |
Estimates | Estimates —The preparation of 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; the recognition and measurement of income tax assets and liabilities, including uncertain tax positions; the net realizable value of inventory; and allowances for bad debt. 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, 2021 and 2020. 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 $932 and $65 at December 31, 2021 and 2020, respectively, and recognized $936 and $302 in bad debt expense during the years ended December 31, 2021 and 2020, 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, 2021, and 2020, 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 $432 and $822 of foreign cash and cash equivalents included in the Company’s cash positions on December 31, 2021 and 2020, respectively. |
Accounts Receivable and Allowance For Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts —Accounts 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, 2021 and 2020, amortization of NRE tooling and NRE software costs approximating $72 and $2,303 were charged to cost of revenues. The related net book value is $26 and $90, respectively, as of December 31, 2021 and 2020. In addition, as of December 31, 2021 and 2020, other Assets includes $2,345 and $2,889, 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 accounts for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers . The Company recognizes revenue primarily from the sale of products, including our mobile phones, scanners, and accessories. The Company also recognizes revenue from other contractual arrangements that may include a combination of products and 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. |
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, 2021 and 2020 were approximately zero and $17, 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 determined that the NRE technical approval costs and the NRE field test costs are contract fulfillment costs, and recognizes the associated NRE asset as these costs are incurred. The Company tracks the NRE asset by product and customer, then amortizes 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. |
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 9. 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. |
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 warranty coverage is an assurance type warranty, and thus is not a separate performance obligation. 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. |
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, 2021 and 2020. 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 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, 2021 and 2020, the Company had approximately $378 and $389, respectively, in net foreign currency transactions losses, which are included in other expense, net on the consolidated statements of operations. |
Sales Taxes | Sales taxes —Sales and value added taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and not included in revenue. |
Income Taxes | Income taxes —The (expense) 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 10, “Income Taxes”. |
Net Loss per Share | 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, 2021 and 2020, for purposes of the calculation of diluted net loss per share, 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 share is the same as the basic net loss per share for the periods presented . |
Restructuring and Reduction in Force | Restructuring and Reduction in Force — The Company reduced its global headcount from approximately 402 employees and 98 contractors at year-end 2019 to 263 employees and 54 contractors as of December 31, 2020 and to 77 During 2020, we reduced 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 22 employees to that partner to enhance their efficiency in taking over our production work. The severance liability related to these restructuring costs as of December 31, 2021 and 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 Payments: expenses paid out (459) Balance at December 31, 2021 $ — |
ATM Program | ATM Program On June 30, 2021, we entered into an At Market Issuance Sales Agreement (“Sales Agreement”) with B. Riley Securities, Inc. and EF Hutton, a division of Benchmark Investments, LLC (“Sales Agents”) to sell shares of our common stock having an aggregate offering price of up to $10,000, from time to time, through an “at-the-market offering” program (the “June 2021 ATM Program”). Under the terms of the Sales Agreement, we paid the Sales Agents a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. We exhausted this June 2021 ATM Program on July 14, 2021, selling an aggregate of 1,820,785 shares of our common stock at a weighted net On September 23, 2021, we entered into a new At Market Issuance Sales Agreement with B. Riley Securities, Inc., as sales agent, to sell shares of our common stock having an aggregate offering price of up to $41,637 from time to time, through a new “at the market offering” program (the “ATM Program”). Under the terms of the Sales Agreement, we will pay B. Riley Securities, Inc. a commission equal to 3.0% of the gross proceeds from each sale of common stock sold through it under the Sales Agreement. From September 27, 2021 through December 31, 2021, we issued and sold an aggregate of 10,280,906 shares of our common stock at an average net price per share of $1.89 under the ATM Program for net proceeds of approximately $19,389. |
Public Offering | Public Offering The 2020 Offering (“PO”) —On June 9, 2020, the Company completed an underwritten public offering (“PO”) in which the Company sold 3,680,000 shares of its common stock, at a price to the public of $7.50 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. |
New accounting pronouncements | New accounting pronouncements: 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. Pronouncements adopted in 2021: In December 2019, FASB issued Accounting Standards Update (ASU) No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12) Pronouncements not yet adopted: 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, 2021 | |
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, 2021 and 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 Payments: expenses paid out (459) Balance at December 31, 2021 $ — The table below sets forth the activity in the Company’s restructuring costs during 2021 and 2020: Restructuring Costs Liability Balance at $ 511 Additions: expensed costs 1,663 Payments: expenses paid out (1,715 ) Balance at $ 459 Payments: expenses paid out (459) Balance at December 31, 2021 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 (in thousands) Smartphones $ 14,794 $ 25,880 Feature Phones 37,723 35,332 Accessories/Other 2,053 2,780 Total Revenue $ 54,570 $ 63,992 |
Summary of Contract Balances | The following table is a rollforward of contract balances as of December 31, 2021: Contractual Liability Balance at January 1, 2021 $ 5 Recognition of revenue (880 ) Addition of revenue 886 Balance at December 31, 2021 $ 11 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 1,500 $ — $ — $ 1,500 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds * $ 17,905 $ — $ — $ 17,905 * Included in cash and cash equivalents on the consolidated balance |
Significant Balance Sheet Com_2
Significant Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Balance Sheet Components [Abstract] | |
Schedule of Inventory | Inventory consisted of the following: December 31 2021 2020 Devices - for resale $ 2,952 $ 7,792 Raw materials 1,986 2,590 Accessories 606 962 $ 5,544 $ 11,344 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following: December 31 2021 2020 Deposits for manufacturing inventory $ 1,041 $ 1,133 Prepaid taxes 544 641 Refundable value added taxes 1,693 509 Prepaid – NRE 350 2,629 Prepaid licenses and royalties 552 728 Director and officer insurance 770 862 Prepaid parts (direct buy) 185 167 Other 717 812 $ 5,852 $ 7,481 |
Schedule of Property and Equipment | Property and equipment consisted of the following: December 31 2021 2020 Computer equipment $ 3,994 $ 4,858 Software 981 981 Furniture, fixtures, and office equipment 175 175 Leasehold Improvements 179 179 5,329 6,193 Less: accumulated depreciation and amortization (4,795 ) (5,350 ) $ 534 $ 843 |
Schedule of Other Assets | Other assets consisted of the following: December 31 2021 2020 Deferred NRE $ 2,345 $ 2,889 Advances to third party manufacturers 2,000 547 Deposits 431 339 Other 93 123 $ 4,869 $ 3,898 |
Schedule of Accrued Expenses | Accrued Expenses consisted of the following: December 31 2021 2020 Customer allowances $ 3,148 $ 3,042 Employee-related liabilities 1,893 2,273 Warranties 836 1,530 Accrual for goods received not invoiced 668 1,942 Contractual obligations 1,035 849 Royalties 1,210 655 Contractors — 55 Research and development 1,158 61 Shipping 157 170 Returns allowance 390 — Legal 517 320 Other 341 539 $ 11,353 $ 11,436 |
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 C onsolidated B alance S heets for the years ended December 31, 20 2 1 and 20 20 : Balance, January 1, 2021 $ 1,530 Additions 1,086 Cost of warranty claims (1,780 ) Balance, December 31, 2021 $ 836 Balance, January 1, 2020 $ 1,154 Additions 2,088 Cost of warranty claims (1,712 ) Balance, December 31, 2020 $ 1,530 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Components of Company's Receivable | The following table presents the components of the Company’s receivables as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Trade receivables $ 11,735 $ 4,217 Allowance for doubtful accounts (932 ) (65 ) Accounts receivable, net 10,803 4,152 Vendor non-trade receivables 2,255 453 Total accounts receivable $ 13,058 $ 4,605 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: 2021 2020 Promissory note payable $ 214 $ 362 Less current portion (148 ) (177 ) Total long-term debt $ 66 $ 185 |
Schedule of Future Aggregate Annual Principal Payment on All Long-Term Debt | Future aggregate annual principal payments on all long-term debt, are as of December 31, 2021: Year Ending, December 31 st 2022 $ 148 2023 66 $ 214 |
Convertible Preferred Stock a_2
Convertible Preferred Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved | The following table shows shares of common stock reserved as of: December 31 2021 2020 Shares subject to options to purchase common stock 95,413 144,303 Unvested restricted stock units 347,111 269,138 Shares subject to warrants to purchase common stock 2 2 Total 442,526 413,443 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2021 2020 Research and development $ 159 $ 252 Sales and marketing 188 230 General and administrative 673 548 Cost of revenues 65 57 $ 1,085 $ 1,087 |
Summary of Stock Option Activity | Stock option activity for the years ended December 31, 2021 and 2020 is as follows and reflects the 1-for-10 Reverse Stock Split that became effective on September 15, 2021: Weighted average exercise price Weighted average remaining contractual life Aggregate Intrinsic Options per share (in years) Value* Outstanding at January 1, 2020 264,443 $ 35.00 8.51 $ 4,184 Options granted 2,600 $ 8.58 Options exercised (54,116 ) $ 7.06 Options forfeited (51,079 ) $ 47.27 Options cancelled (17,545 ) $ 70.44 Outstanding at December 31, 2020 144,303 $ 36.37 7.82 $ 24 Options granted 0 $ Options exercised (707 ) $ 7.50 Options forfeited (23,171 ) $ 27.55 Options cancelled (25,012 ) $ 29.60 Outstanding at December 31, 2021 95,413 $ 40.00 6.73 $ 0 Vested and expected to vest at December 31, 2021 95,413 $ 40.00 6.71 $ 0 Exercisable at December 31, 2021 61,130 $ 44.34 6.05 $ 0 *The intrinsic value is calculated as the difference between the exercise price and the fair value of the common stock on the balance sheet date. |
Summary of Fair Value of Option Grants Valuation Assumptions | The fair value of option grants made during the years ended December 31, 2020, was estimated using the following Black-Scholes option pricing model assumptions: 2020 Expected dividend yield 0% Risk-free interest rate 0.26%-0.46% Expected volatility 50% Expected life (in years) 6.25 |
Summary of Outstanding RSU's | The following table summarized the outstanding RSU’s as of December 31, 2021: RSU's Outstanding at January 1, 2021 269,138 Granted 220,268 Released (55,683 ) Forfeited (86,612 ) Outstanding at December 31, 2021 347,111 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: 2021 2020 Domestic loss $ (39,065 ) $ (31,390 ) Foreign subsidiaries income 605 937 Income (loss) before income taxes $ (38,460 ) $ (30,453 ) 2021 2020 Current income tax expense: Federal $ — $ (53 ) State 17 5 Foreign 169 (494 ) Total Current 186 (542 ) Deferred income tax expense: Federal — 54 State — — Foreign (19 ) (33 ) Total Deferred (19 ) 21 Total provision (benefit) for income taxes $ 167 $ (521 ) |
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: 2021 2020 Statutory federal income tax rate 21.00 % 21.00 % State income taxes, net of federal tax benefits 1.65 % -0.54 % Stock compensation -0.54 % -0.74 % Foreign rate differential -0.06 % 2.38 % Tax credits 0.26 % 0.00 % GILTI Inclusion -0.41 % -0.81 % Section 382 limits 0.00 % -27.71 % Non-deductible expenses -0.01 % -0.17 % Valuation allowance -22.34 % 8.30 % Effective tax rate -0.44 % 1.71 % |
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: 2021 2020 Gross deferred tax assets: Net operating loss carryforward $ 20,702 $ 12,684 Tax credits 199 92 Accruals and reserves 2,333 2,113 Property and equipment 102 83 Alternative minimum tax credits 21 21 Total gross deferred tax assets 23,357 14,993 Less: valuation allowance (22,738 ) (14,281 ) Total deferred tax assets net of valuation allowance 619 712 Deferred tax liabilities: Property and equipment — — Accrual and reserves (550 ) (678 ) Net deferred tax assets (liabilities) $ 69 $ 34 |
Schedule of Estimate of Cumulative Foreign Earnings | Estimate of cumulative foreign earnings is as follows as of December 31: 2021 2020 China $ 4,741 $ 4,195 India 5,061 4,961 Total $ 9,802 $ 9,156 |
Schedule of Net Operating Loss Carryovers | The Company had net operating loss carryovers (NOL) for federal and state income tax purposes of approximately $92,262 and $27,577, respectively, as of December 31, 2021. Approximately $9,939 2021 2020 Federal NOL $ 92,262 $ 56,805 State NOL $ 27,577 $ 12,418 |
Schedule of Research and Development Credit Carryforwards | The Company had research and development (“R&D”) credit carryforwards as follows as of December 31: 2021 2020 Federal R&D credits $ 99 $ — California R&D credits $ 126 $ 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 2021 2020 Unrecognized benefit-beginning of period $ 1,190 $ 6,900 Gross increases-prior period tax positions 34 96 Gross (decreases)-prior period tax positions — (5,818 ) Decrease prior period tax positions - settlements — (95 ) Gross increases -current period tax positions 82 107 Unrecognized benefit-end of period $ 1,306 $ 1,190 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 2022 $ 747 2023 515 2024 467 2025 318 $ 2,047 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | The following table sets forth the computation of the Company’s basic and diluted net loss per share for the periods ended and reflects the 1-for-10 Reverse Stock Split that became effective on September 15, 2021: For the Years Ended December 31 2021 2020 Numerator: Net loss $ (38,627 ) $ (29,932 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 9,464,560 4,620,855 Net loss per share, basic and diluted $ (4.08 ) $ (6.48 ) |
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 2021 2020 Shares subject to options to purchase common stock 95,413 144,303 Unvested restricted stock units 347,111 269,138 Shares subject to warrants to purchase common stock 2 2 Total 442,526 413,443 |
Entity Level Information (Table
Entity Level Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Region | The following table summarizes the revenue by region based on ship-to destinations for the periods ended: For the Years Ended December 31 2021 2020 U.S. $ 42,356 $ 46,107 Canada and Latin America 9,401 14,228 Europe and Middle East 1,142 1,978 Asia Pacific 1,671 1,679 $ 54,570 $ 63,992 |
Composition of Revenues | The composition of revenues is as follows: For the Years Ended December 31 2021 2020 Product Sales $ 54,476 $ 63,627 Services 94 365 Total revenues $ 54,570 $ 63,992 |
Percentage of Total Revenues | Revenue from certain customers in 2021 and 2020 accounted for approximately the following percentage of total revenues: For the Years Ended December 31, 2021 2020 Customer A 23 % 15 % Customer B 23 % 40 % Customer C 22 % 10 % Customer D 8 % 11 % Total 76 % 76 % |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Severance Liability Related to the Restructuring Costs | The severance liability related to these restructuring costs as of December 31, 2021 and 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 Payments: expenses paid out (459) Balance at December 31, 2021 $ — The table below sets forth the activity in the Company’s restructuring costs during 2021 and 2020: Restructuring Costs Liability Balance at $ 511 Additions: expensed costs 1,663 Payments: expenses paid out (1,715 ) Balance at $ 459 Payments: expenses paid out (459) Balance at December 31, 2021 $ — |
The Company and its Significa_4
The Company and its Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | Sep. 23, 2021shares | Sep. 15, 2021 | Jun. 09, 2020USD ($)$ / sharesshares | Jun. 30, 2021shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)SegmentEmployeeNumberOfContractor$ / sharesshares | Dec. 31, 2020USD ($)EmployeeNumberOfContractorshares | Dec. 31, 2019EmployeeNumberOfContractor | Jul. 14, 2021$ / sharesshares | |
Company And Significant Accounting Policies [Line Items] | ||||||||||
Entity incorporation date | Aug. 5, 1999 | |||||||||
Reverse stock split | 1-for-10 | |||||||||
Cash and cash equivalents | $ 11,233 | $ 11,233 | $ 22,141 | |||||||
Net loss | (38,627) | (29,932) | ||||||||
Cash from operations | (38,476) | (10,560) | ||||||||
Allowance for credit losses | 932 | 932 | 65 | |||||||
Bad debt expense recognized | $ 936 | 302 | ||||||||
Number of reporting segment | Segment | 1 | |||||||||
Foreign cash and cash equivalents | $ 432 | $ 432 | 822 | |||||||
Advertising expenses | 0 | 17 | ||||||||
Net foreign currency transactions losses | $ 378 | $ 389 | ||||||||
Number of employees | Employee | 77 | 263 | 402 | |||||||
Number of contractors | NumberOfContractor | 25 | 54 | 98 | |||||||
Percentage of reduction in force | 10.00% | |||||||||
Restructuring cost | $ 1,663 | |||||||||
Restructuring cost paid | $ 459 | 1,204 | ||||||||
Cost of revenue | $ 100 | |||||||||
Common stock, number of shares available for sale | shares | 41,637 | |||||||||
Percentage of gross proceeds from sale of common stock | 3.00% | |||||||||
Common stock, shares issued | shares | 18,808,885 | 18,808,885 | 6,631,039 | |||||||
Change in accounting principle, accounting standards update, adopted | true | true | ||||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | Jan. 1, 2021 | ||||||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||||||
Accounting Standards Update [Extensible Enumeration] | us-gaap:AccountingStandardsUpdate201912Member | |||||||||
Common Stock | ||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||
Issuance of common stock, net of issuance costs, shares | shares | [1] | 12,101,691 | 3,680,000 | |||||||
June 2021 ATM Program | ||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||
Common stock, number of shares available for sale | shares | 10,000 | |||||||||
Percentage of gross proceeds from sale of common stock | 3.00% | |||||||||
Common stock, shares issued | shares | 1,820,785 | |||||||||
Net proceeds received from sale of common stock | $ 8,313 | |||||||||
Sale of stock, weighted net average price per share | $ / shares | $ 4.59 | |||||||||
ATM Program | ||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||
Common stock, number of shares available for sale | shares | 21,600 | 21,600 | ||||||||
Common stock, shares issued | shares | 10,280,906 | 10,280,906 | ||||||||
Net proceeds received from sale of common stock | $ 19,389 | |||||||||
Sale of stock, weighted net average price per share | $ / shares | $ 1.89 | $ 1.89 | ||||||||
2020 Offering | ||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||
IPO closing date | Jun. 9, 2020 | |||||||||
2020 Offering | Common Stock | ||||||||||
Company And Significant Accounting Policies [Line Items] | ||||||||||
Issuance of common stock, net of issuance costs, shares | shares | 3,680,000 | |||||||||
Shares issued and sold, price per share | $ / shares | $ 7.50 | |||||||||
Proceeds from issuance of public offering | $ 25,086 | |||||||||
Underwriting discounts and commissions | 1,656 | |||||||||
Offering expenses paid | $ 689 | |||||||||
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 | $ 72 | $ 2,303 | ||||||||
Net book value | $ 26 | 26 | 90 | |||||||
Deferred costs | $ 2,345 | $ 2,345 | $ 2,889 | |||||||
[1] | Reflects the 1-for-10 reverse stock split that became effective on September 15, 2021. Refer to Note 1 – The Company and its Significant Accounting Policies for further information. |
The Company and its Significa_5
The Company and its Significant Accounting Policies - Schedule of Severance Liability Related to the Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve Roll Forward | ||
Restructuring costs liability, Beginning balance | $ 459 | $ 511 |
Additions: expensed costs | 1,663 | |
Payments: expenses paid out | $ (459) | (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, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 54,570 | $ 63,992 |
Smartphones | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 14,794 | 25,880 |
Feature Phones | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | 37,723 | 35,332 |
Accessories/Other | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue | $ 2,053 | $ 2,780 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Estimated life of particular model phone | 4 years | |
Contract liabilities | $ 11 | $ 5 |
Other Assets | ||
Disaggregation Of Revenue [Line Items] | ||
Total capitalized costs | $ 2,345 | $ 2,889 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Contract Balances (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Balance at January 1, 2021 | $ 5 |
Balance at December 31, 2021 | 11 |
Contractual Liability | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Balance at January 1, 2021 | 5 |
Recognition of revenue | (880) |
Addition of revenue | 886 |
Balance at December 31, 2021 | $ 11 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Fair Value Assets and Liabilities (Details) - Money Market Funds - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Assets | $ 1,500 | $ 17,905 |
Level 1 | ||
Assets: | ||
Assets | $ 1,500 | $ 17,905 |
Significant Balance Sheet Com_3
Significant Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Balance Sheet Components [Abstract] | ||
Devices - for resale | $ 2,952 | $ 7,792 |
Raw materials | 1,986 | 2,590 |
Accessories | 606 | 962 |
Total inventory | $ 5,544 | $ 11,344 |
Significant Balance Sheet Com_4
Significant Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | ||
Inventory reserve adjustment | $ 1,594 | $ 700 |
Accrued loss on purchase commitments | 300 | 500 |
Distributor product returns | 229 | 0 |
Depreciation and amortization expense | 301 | $ 426 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Equipment disposed | 910 | |
Accumulated depreciation | $ 856 |
Significant Balance Sheet Com_5
Significant Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Balance Sheet Components [Abstract] | ||
Deposits for manufacturing inventory | $ 1,041 | $ 1,133 |
Prepaid taxes | 544 | 641 |
Refundable value added taxes | 1,693 | 509 |
Prepaid – NRE | 350 | 2,629 |
Prepaid licenses and royalties | 552 | 728 |
Director and officer insurance | 770 | 862 |
Prepaid parts (direct buy) | 185 | 167 |
Other | 717 | 812 |
Total prepaid expenses and other current assets | $ 5,852 | $ 7,481 |
Significant Balance Sheet Com_6
Significant Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Computer equipment | $ 5,329 | $ 6,193 |
Less: accumulated depreciation and amortization | (4,795) | (5,350) |
Property and equipment, Net | 534 | 843 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Computer equipment | 3,994 | 4,858 |
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 Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Balance Sheet Components [Abstract] | ||
Deferred NRE | $ 2,345 | $ 2,889 |
Advances to third party manufacturers | 2,000 | 547 |
Deposits | 431 | 339 |
Other | 93 | 123 |
Other assets | $ 4,869 | $ 3,898 |
Significant Balance Sheet Com_8
Significant Balance Sheet Components - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Significant Balance Sheet Components [Abstract] | ||
Customer allowances | $ 3,148 | $ 3,042 |
Employee-related liabilities | 1,893 | 2,273 |
Warranties | 836 | 1,530 |
Accrual for goods received not invoiced | 668 | 1,942 |
Contractual obligations | 1,035 | 849 |
Royalties | 1,210 | 655 |
Contractors | 55 | |
Research and development | 1,158 | 61 |
Shipping | 157 | 170 |
Returns allowance | 390 | |
Legal | 517 | 320 |
Other | 341 | 539 |
Accrued expenses | $ 11,353 | $ 11,436 |
Significant Balance Sheet Com_9
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, 2021 | Dec. 31, 2020 | |
Significant Balance Sheet Components [Abstract] | ||
Beginning balance | $ 1,530 | $ 1,154 |
Additions | 1,086 | 2,088 |
Cost of warranty claims | (1,780) | (1,712) |
Ending balance | $ 836 | $ 1,530 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Components of Company's Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts And Notes Receivable Net [Abstract] | ||
Trade receivables | $ 11,735 | $ 4,217 |
Allowance for doubtful accounts | (932) | (65) |
Accounts receivable, net | 10,803 | 4,152 |
Vendor non-trade receivables | 2,255 | 453 |
Total accounts receivable | $ 13,058 | $ 4,605 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) $ in Thousands | Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowance for doubtful accounts | $ | $ 932 | $ 65 |
Number of customers | Customer | 1 | 2 |
Customers One | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts Receivable Percentage | 70.00% | 26.00% |
Customers Two | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accounts Receivable Percentage | 10.00% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) | Jun. 01, 2020USD ($)shares | Apr. 13, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($)Installment | Oct. 26, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Debt instrument, outstanding balance | $ 214,000 | $ 362,000 | ||||||
Proceeds from PPP Loan | $ 2,300,000 | 2,289,000 | ||||||
PPP Loan, repayment date | Apr. 29, 2020 | |||||||
Subordinated Term Loan and Security Agreement | B. Riley Principal Investments, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowings available | $ 12,000,000 | |||||||
Minimum principal amount outstanding of defined repayment penalties | $ 10,000,000 | |||||||
Prepayment penalty description | The prepayment penalty was 2% for 2019 and decreased to 1% after the second anniversary 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 | |||||||
Note Amendment and Debt Cancellation Agreement | B. Riley Principal Investments, LLC | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding indebtedness | $ 4,000,000 | |||||||
Outstanding borrowings | $ 6,170,000 | |||||||
Debt instrument redemption date | Jun. 9, 2020 | |||||||
Conversion shares | shares | 822,682 | |||||||
Promissory Notes Payable | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, outstanding balance | $ 214,000 | $ 362,000 | $ 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, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Promissory note payable | $ 214 | $ 362 |
Less current portion | (148) | (177) |
Total long-term debt | $ 66 | $ 185 |
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] | |
2022 | $ 148 |
2023 | 66 |
Long-term Debt | $ 214 |
Convertible Preferred Stock a_3
Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 02, 2018 |
Equity [Abstract] | |||
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 |
Convertible Preferred Stock a_4
Convertible Preferred Stock and Stockholders' Equity - Schedule of Common Stock Reserved (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 442,526 | 413,443 |
Shares Subject to Options to Purchase Common Stock | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 95,413 | 144,303 |
Unvested Restricted Stock Units | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 347,111 | 269,138 |
Shares Subject to Warrants to Purchase Common Stock | ||
Class Of Stock [Line Items] | ||
Shares of common stock reserved | 2 | 2 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 23, 2021 | Sep. 15, 2021 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Jul. 14, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | |||||||
Reverse stock split | 1-for-10 | ||||||
Common stock, number of shares available for sale | 41,637 | ||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Percentage of gross proceeds from sale of common stock | 3.00% | ||||||
Common stock, shares issued | 18,808,885 | 18,808,885 | 6,631,039 | ||||
June 2021 ATM Program | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, number of shares available for sale | 10,000 | ||||||
Common stock, par value | $ 0.001 | ||||||
Percentage of gross proceeds from sale of common stock | 3.00% | ||||||
Common stock, shares issued | 1,820,785 | ||||||
Net proceeds received from sale of common stock | $ 8,313 | ||||||
Sale of stock, weighted net average price per share | $ 4.59 | ||||||
ATM Program | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, number of shares available for sale | 21,600 | 21,600 | |||||
Common stock, shares issued | 10,280,906 | 10,280,906 | |||||
Net proceeds received from sale of common stock | $ 19,389 | ||||||
Sale of stock, weighted net average price per share | $ 1.89 | $ 1.89 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 27, 2022 | Nov. 12, 2021 | Oct. 08, 2021 | Sep. 15, 2021 | Jul. 01, 2021 | Jun. 18, 2021 | Jun. 17, 2021 | Dec. 14, 2020 | Sep. 29, 2020 | Jun. 09, 2020 | May 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 23, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Reverse stock split | 1-for-10 | |||||||||||||
Number of shares exercised | 707 | 54,116 | ||||||||||||
Common stock, number of shares available for sale | 41,637 | |||||||||||||
Dollar value of bonuses fixed amount | $ 254 | |||||||||||||
Fully vested included in accrued expenses | 254 | |||||||||||||
Unamortized stock-based compensation cost related to unvested stock options | $ 2,034 | |||||||||||||
Unamortized stock-based compensation cost, weighted average period of recognition | 4 years | |||||||||||||
Pre-tax intrinsic value of options exercised | $ 0 | $ 50 | ||||||||||||
Weighted average options grant fair value | $ 4.10 | |||||||||||||
Expected dividend yield | 0.00% | 0.00% | ||||||||||||
Restricted Stock | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Stock issued during period | 97,671 | 75,000 | 850 | 46,747 | 46,747 | 11,400 | 67,650 | 201,550 | ||||||
Number of shares, Unvested | 347,111 | 269,138 | ||||||||||||
Restricted Stock Units | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Unamortized stock-based compensation cost related to unvested RSU's | $ 2,034 | |||||||||||||
Number of shares, Unvested | 347,111 | 269,138 | ||||||||||||
2019 Option Plan | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Number of shares available to be issued | 538,243 | |||||||||||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 331,551 | 102,185 | ||||||||||||
Increase in common stock reserved for future issuance | 300,000 | |||||||||||||
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 Employee Stock Purchase Plan | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Common stock, number of shares available for sale | 54,137 | |||||||||||||
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 | 50,000 | |||||||||||||
Increase In common stock reserved for issuance of number of shares of capital stock outstanding | 50,000 | |||||||||||||
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) 50,000 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 | 19,736 | 19,210 | ||||||||||||
2019 Employee Stock Purchase Plan | Subsequent Event | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Number of shares issued | 415,023 | |||||||||||||
2019 Plan | ||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||||
Common stock, number of shares available for sale | 922,266 | |||||||||||||
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 | 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, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 1,085 | $ 1,087 |
Research and development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 159 | 252 |
Sales and marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 188 | 230 |
General and administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 673 | 548 |
Cost of revenues | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 65 | $ 57 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Options Outstanding | 144,303 | 264,443 | ||
Options granted | 0 | 2,600 | ||
Options exercised | (707) | (54,116) | ||
Options forfeited | (23,171) | (51,079) | ||
Options cancelled | (25,012) | (17,545) | ||
Options Outstanding | 95,413 | 144,303 | 264,443 | |
Options Vested and expected to vest at December 31, 2021 | 95,413 | |||
Options exercisable at December 31, 2021 | 61,130 | |||
Outstanding, Weighted average exercise price per share | $ 36.37 | $ 35 | ||
Options granted, Weighted average exercise price per share | 8.58 | |||
Options exercised, Weighted average exercise price per share | 7.50 | 7.06 | ||
Options forfeited, Weighted average exercise price per share | 27.55 | 47.27 | ||
Options cancelled, Weighted average exercise price per share | 29.60 | 70.44 | ||
Outstanding, Weighted average exercise price per share | 40 | $ 36.37 | $ 35 | |
Vested and expected to vest at December 31, 2021, Weighted average exercise price per share | 40 | |||
Exercisable at December 31, 2021, Weighted average exercise price per share | $ 44.34 | |||
Outstanding, Weighted average remaining contractual life (in years) | 6 years 8 months 23 days | 7 years 9 months 25 days | 8 years 6 months 3 days | |
Vested and expected to vest at December 31, 2021, Weighted average remaining contractual life (in years) | 6 years 8 months 15 days | |||
Exercisable at December 31, 2021, Weighted average remaining contractual life (in years) | 6 years 18 days | |||
Outstanding, Aggregate Intrinsic Value | [1] | $ 0 | $ 24 | $ 4,184 |
Vested and expected to vest at December 31, 2021, Aggregate Intrinsic Value | [1] | 0 | ||
Exercisable at December 31, 2021, Aggregate Intrinsic Value | [1] | $ 0 | ||
[1] | The intrinsic value is calculated as the difference between the exercise price and the fair value of the common stock on the balance sheet date. |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Fair Value of Options Grants (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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% | |
Risk-free interest rate, maximum | 0.46% | |
Expected volatility | 50.00% | |
Expected life (in years) | 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, 2021shares | |
RSU's | |
Outstanding at January 1, 2021 | 269,138 |
Granted | 220,268 |
Released | (55,683) |
Forfeited | (86,612) |
Outstanding at December 31, 2021 | 347,111 |
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, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Domestic loss | $ (39,065) | $ (31,390) |
Foreign subsidiaries income | 605 | 937 |
Loss before income taxes | (38,460) | (30,453) |
Current income tax expense: | ||
Federal | (53) | |
State | 17 | 5 |
Foreign | 169 | (494) |
Total Current | 186 | (542) |
Deferred income tax expense: | ||
Federal | 54 | |
Foreign | (19) | (33) |
Total Deferred | (19) | 21 |
Total provision (benefit) for income taxes | $ 167 | $ (521) |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Differs from Federal Statutory Rate (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 21.00% | 21.00% |
State income taxes, net of federal tax benefits | 1.65% | (0.54%) |
Stock compensation | (0.54%) | (0.74%) |
Foreign rate differential | (0.06%) | 2.38% |
Tax credits | 0.26% | 0.00% |
GILTI Inclusion | (0.41%) | (0.81%) |
Section 382 limits | 0 | (27.71) |
Non-deductible expenses | (0.01%) | (0.17%) |
Valuation allowance | (22.34%) | 8.30% |
Effective tax rate | (0.44%) | 1.71% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Gross deferred tax assets: | |||
Net operating loss carryforward | $ 20,702 | $ 12,684 | |
Tax credits | 199 | 92 | |
Accruals and reserves | 2,333 | 2,113 | |
Property and equipment | 102 | 83 | |
Alternative minimum tax credits | 21 | 21 | |
Total gross deferred tax assets | 23,357 | 14,993 | |
Less: valuation allowance | (22,738) | (14,281) | $ (11,814) |
Total deferred tax assets net of valuation allowance | 619 | 712 | |
Deferred tax liabilities: | |||
Accrual and reserves | (550) | (678) | |
Net deferred tax assets (liabilities) | $ 69 | $ 34 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Line Items] | ||||
Valuation allowance | $ 22,738 | $ 14,281 | $ 11,814 | |
Change in valuation allowance | 8,477 | 2,467 | ||
Undistributed earnings of foreign subsidiaries | $ 9,802 | |||
Federal research credits expire date | Dec. 31, 2040 | |||
Interest expense carryforwards | $ 1,499 | |||
Unrecognized tax benefits accounted for as a reduction in deferred tax assets | 66 | |||
Unrecognized tax benefits would affect the effective tax rate if recognized | 1,240 | |||
Unrecognized tax benefits | 1,306 | 1,190 | $ 6,900 | |
Accrued interest and penalties related to unrecognized tax expense | 52 | |||
Accrued liability for Interest and penalties related to unrecognized tax benefits | 136 | |||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Research and development tax credit | 99 | |||
California | ||||
Income Tax Disclosure [Line Items] | ||||
Research and development tax credit | 126 | 117 | ||
Expire Beginning in 2037 | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryovers | 9,939 | |||
Federal | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryovers | 92,262 | 56,805 | $ 82,323 | |
State | ||||
Income Tax Disclosure [Line Items] | ||||
Net operating loss carryovers | $ 27,577 | $ 12,418 |
Income Taxes - Schedule of Esti
Income Taxes - Schedule of Estimate of Cumulative Foreign Earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Line Items] | ||
Estimate of cumulative foreign earnings | $ 9,802 | $ 9,156 |
China | ||
Income Tax Disclosure [Line Items] | ||
Estimate of cumulative foreign earnings | 4,741 | 4,195 |
India | ||
Income Tax Disclosure [Line Items] | ||
Estimate of cumulative foreign earnings | $ 5,061 | $ 4,961 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Operating Loss Carryovers (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 |
Federal | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | $ 92,262 | $ 56,805 | $ 82,323 |
State | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss carryovers | $ 27,577 | $ 12,418 |
Income Taxes - Schedule of Rese
Income Taxes - Schedule of Research and Development Credit Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Federal | ||
Income Tax Disclosure [Line Items] | ||
R&D credits | $ 99 | |
California | ||
Income Tax Disclosure [Line Items] | ||
R&D credits | $ 126 | $ 117 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized benefit-beginning of period | $ 1,190,000 | $ 6,900,000 |
Gross increases-prior period tax positions | 34,000 | 96,000 |
Gross (decreases)-prior period tax positions | (5,818,000) | |
Decrease prior period tax positions - settlements | (95,000) | |
Gross increases -current period tax positions | 82,000 | 107,000 |
Unrecognized benefit-end of period | $ 1,306,000 | $ 1,190,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Dec. 11, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2020 |
Loss Contingencies [Line Items] | ||||
Noncancelable operating leases expiration beginning year | 2021 | |||
Rent expense | $ 1,071 | $ 1,568 | ||
Aggregate amount of noncancelable outsourced third party designer services | 6,460 | 0 | ||
Aggregate amount of noncancelable purchase orders | 5,663 | 5,113 | ||
Contingent severance obligation accrual | 2,000 | |||
Transaction Bonus Plan ("Plan") | ||||
Loss Contingencies [Line Items] | ||||
Percentage of consideration payable | 10.00% | |||
Term of plan | 3 years | |||
Chief Executive Officer | ||||
Loss Contingencies [Line Items] | ||||
Salary to be paid | 400 | |||
President and Chief Operating Officer Member | 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 | 35.00% | |||
Consultants [Member] | Transaction Bonus Plan ("Plan") | ||||
Loss Contingencies [Line Items] | ||||
Percentage of ownership interest in plan | 6.00% | |||
Pearson Action | ||||
Loss Contingencies [Line Items] | ||||
Contingent severance obligation accrual | $ 2,000 | |||
Cost of Revenues | ||||
Loss Contingencies [Line Items] | ||||
Royalty expense | $ 2,168 | $ 2,288 | ||
Wireless Essential Patent Holders | ||||
Loss Contingencies [Line Items] | ||||
Royalty expire year | 2022 | |||
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 | 2026 | |||
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, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2022 | $ 747 |
2023 | 515 |
2024 | 467 |
2025 | 318 |
Future minimum lease payments under noncancelable operating lease commitments | $ 2,047 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) | Sep. 15, 2021 |
Earnings Per Share [Abstract] | |
Reverse stock split | 1-for-10 |
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, 2021 | Dec. 31, 2020 | ||
Numerator: | |||
Net loss | $ (38,627) | $ (29,932) | |
Denominator: | |||
Weighted-average shares used in computing net loss per share, basic and diluted | [1] | 9,464,560 | 4,620,855 |
Net loss per share, basic and diluted* | [1] | $ (4.08) | $ (6.48) |
[1] | Reflects the 1-for-10 reverse stock split that became effective on September 15, 2021. Refer to Note 1 – The Company and its Significant Accounting Policies for further information. |
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, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total dilutive common shares excluded from calculation of diluted net loss per share | 442,526 | 413,443 |
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 | 95,413 | 144,303 |
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 | 347,111 | 269,138 |
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 | 2 | 2 |
Entity Level Information - Addi
Entity Level Information - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)SegmentCustomer | Dec. 31, 2020USD ($)Customer | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of reporting segment | Segment | 1 | |
Allowance for credit losses | $ 932 | $ 65 |
Number of customers | Customer | 1 | 2 |
Receivables | Customer Concentration | Customer One | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 70.00% | 26.00% |
Receivables | Customer Concentration | Customer Two | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 10.00% | |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 2,370 | $ 3,040 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Long-lived assets | $ 534 | $ 782 |
Entity Level Information - Summ
Entity Level Information - Summary of Revenue by Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 54,570 | $ 63,992 |
U.S [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 42,356 | 46,107 |
Canada and Latin America [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 9,401 | 14,228 |
Europe and Middle East [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | 1,142 | 1,978 |
Asia Pacific [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue | $ 1,671 | $ 1,679 |
Entity Level Information - Comp
Entity Level Information - Composition of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 54,570 | $ 63,992 |
Product Sales | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | 54,476 | 63,627 |
Services | ||
Entity Wide Information Revenue From External Customer [Line Items] | ||
Total revenues | $ 94 | $ 365 |
Entity Level Information - Perc
Entity Level Information - Percentage of Total Revenues (Details) - Revenues - Customer Concentration | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Customer A | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 23.00% | 15.00% |
Customer B | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 23.00% | 40.00% |
Customer C | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 22.00% | 10.00% |
Customer D | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 8.00% | 11.00% |
Total Customers | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration risk percentage | 76.00% | 76.00% |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2020 | Dec. 31, 2021USD ($)Employee | Dec. 31, 2020USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||
Future business volume agreement amount over three years | $ 7,120 | ||
Minimum future business volume agreement committed amount in first year | 3,100 | ||
Payment related to outsourcing of software development | $ 3,127 | ||
Percentage of reduction in employees | 10.00% | ||
Restructuring costs | $ 1,663 | ||
Operating Expenses | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | 1,546 | ||
Cost of Revenues | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 117 | ||
Support Worker [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Number of employees and contractors | Employee | 105 | ||
Eliminate Employee [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Number of employees and contractors | Employee | 22 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring costs liability, Beginning balance | $ 459 | $ 511 |
Additions: expensed costs | 1,663 | |
Payments: expenses paid out | $ (459) | (1,715) |
Restructuring costs liability, Ending balance | $ 459 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event | Feb. 16, 2022$ / shares |
Subsequent Event [Line Items] | |
Description of Nasdaq compliance | On February 16, 2022, we received a deficiency letter from the Listing Qualifications Department (the “Staff”) of The Nasdaq Stock Market, LLC (“Nasdaq”) notifying us that, for the last 30 consecutive business days, the bid price for our common stock had closed below $1.00 per share, which is the minimum closing price required to maintain continued listing on the Nasdaq Stock Market under Nasdaq Listing Rule 5450(a)(1) (the “Minimum Bid Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we have been provided a period of 180 calendar days, or until August 15, 2022, in which to regain compliance. In order to regain compliance with the minimum bid price requirement, the closing bid price of our common stock must be at least $1.00 per share for a minimum of ten consecutive business days during this 180-day period. In the event that we do not regain compliance within this 180-day period, we may be eligible to seek an additional compliance period of 180 calendar days. We intend to actively monitor the closing bid price of our common stock and are evaluating available options to regain compliance with the Minimum Bid Requirement, including by effecting a reverse stock split. |
Failure to maintain common stock minimum closing bid price | $ 1 |
Closing bid price period | 180 days |
Minimum closing bid price per share | $ 1 |
Compliance regain calendar days | 180 days |
Additional compliance regain calendar days | 180 days |