Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AIRG | |
Entity Registrant Name | AIRGAIN, INC. | |
Entity Central Index Key | 0001272842 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-37851 | |
Entity Tax Identification Number | 95-4523882 | |
Entity Address, Address Line One | 3611 Valley Centre Drive | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92130 | |
City Area Code | 760 | |
Local Phone Number | 579-0200 | |
Entity Common Stock, Shares Outstanding | 11,301,507 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 8,416 | $ 7,881 |
Trade accounts receivable, net | 8,642 | 7,375 |
Inventories | 3,144 | 2,403 |
Prepaid expenses and other current assets | 1,109 | 1,422 |
Total current assets | 21,311 | 19,081 |
Property and equipment, net | 2,220 | 2,507 |
Leased right-of-use assets | 1,146 | 1,392 |
Goodwill | 10,845 | 10,845 |
Intangible assets, net | 6,751 | 8,234 |
Other assets | 164 | 170 |
Total assets | 42,437 | 42,229 |
Current liabilities: | ||
Accounts payable | 5,844 | 6,472 |
Accrued compensation | 1,295 | 728 |
Accrued liabilities and other | 2,287 | 1,926 |
Short-term lease liabilities | 881 | 865 |
Total current liabilities | 10,307 | 9,991 |
Deferred tax liability | 170 | 151 |
Long-term lease liabilities | 370 | 674 |
Total liabilities | 10,847 | 10,816 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital, par value $0.0001, 200,000 shares authorized; 11,842 shares issued and 11,301 shares outstanding at June 30, 2024; and 11,010 shares issued and 10,469 shares outstanding at December 31, 2023. | 120,444 | 115,295 |
Treasury stock, at cost: 541 shares at June 30, 2024 and December 31, 2023. | (5,364) | (5,364) |
Accumulated deficit | (83,489) | (78,521) |
Accumulated other comprehensive (loss) income | (1) | 3 |
Total stockholders’ equity | 31,590 | 31,413 |
Total liabilities and stockholders’ equity | $ 42,437 | $ 42,229 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
common stock issue | 11,842,000 | 11,010,000 |
Common stock, shares outstanding | 11,301,000 | 10,469,000 |
Treasury stock, shares at cost | 541,000 | 541,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Sales | $ 15,184 | $ 15,830 | $ 29,415 | $ 32,274 |
Cost of goods sold | 9,036 | 9,551 | 17,691 | 19,677 |
Gross profit | 6,148 | 6,279 | 11,724 | 12,597 |
Operating expenses: | ||||
Research and development | 3,116 | 2,590 | 6,236 | 5,039 |
Sales and marketing | 2,349 | 2,305 | 4,507 | 5,171 |
General and administrative | 3,188 | 3,596 | 6,115 | 7,389 |
Total operating expenses | 8,653 | 8,491 | 16,858 | 17,599 |
Loss from operations | (2,505) | (2,212) | (5,134) | (5,002) |
Other (income) expense: | ||||
Interest income, net | (27) | (16) | (53) | (34) |
Other expense (income) | 1 | 11 | (7) | 15 |
Total other income | (26) | (5) | (60) | (19) |
Loss before income taxes | (2,479) | (2,207) | (5,074) | (4,983) |
Income tax expense (benefit) | 34 | (2) | (106) | 80 |
Net loss | $ (2,513) | $ (2,205) | $ (4,968) | $ (5,063) |
Net loss per share: | ||||
Basic | $ (0.23) | $ (0.21) | $ (0.46) | $ (0.49) |
Diluted | $ (0.23) | $ (0.21) | $ (0.46) | $ (0.49) |
Weighted average shares used in calculating loss per share: | ||||
Basic | 10,938 | 10,413 | 10,736 | 10,340 |
Diluted | 10,938 | 10,413 | 10,736 | 10,340 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (2,513) | $ (2,205) | $ (4,968) | $ (5,063) |
Other comprehensive loss: | ||||
Foreign currency translation adjustment | (2) | 0 | (4) | 0 |
Comprehensive loss | $ (2,515) | $ (2,205) | $ (4,972) | $ (5,063) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 | 10,767 | (541) | |||
Beginning balance at Dec. 31, 2022 | $ 39,825 | $ 111,282 | $ (5,364) | $ (66,093) | |
Net Income (Loss) | (2,858) | (2,858) | |||
Stock-based compensation | 1,874 | $ 1,874 | |||
Common stock Issued through restricted stock awards | 278 | ||||
Common stock withheld related to net share settlement of equity awards, Share | (118) | ||||
Common stock withheld related to net share settlement of equity awards | (678) | $ (678) | |||
Common stock issued under ESPP, Share | 22 | ||||
Common stock issued under ESPP, Value | 137 | $ 137 | |||
Ending balance at Mar. 31, 2023 | 38,300 | $ 112,615 | $ (5,364) | (68,951) | |
Shares, Outstanding, Ending Balance at Mar. 31, 2023 | 10,949 | (541) | |||
Shares, Outstanding, Beginning Balance at Dec. 31, 2022 | 10,767 | (541) | |||
Beginning balance at Dec. 31, 2022 | 39,825 | $ 111,282 | $ (5,364) | (66,093) | |
Net Income (Loss) | (5,063) | ||||
Foreign currency translation adjustment | 0 | ||||
Ending balance at Jun. 30, 2023 | 37,079 | $ 113,599 | $ (5,364) | (71,156) | |
Shares, Outstanding, Ending Balance at Jun. 30, 2023 | 10,964 | (541) | |||
Shares, Outstanding, Beginning Balance at Mar. 31, 2023 | 10,949 | (541) | |||
Beginning balance at Mar. 31, 2023 | 38,300 | $ 112,615 | $ (5,364) | (68,951) | |
Net Income (Loss) | (2,205) | (2,205) | |||
Stock-based compensation | 968 | $ 968 | |||
Common stock Issued through restricted stock awards | 5 | ||||
Common stock Issued through stock options, Share | 12 | ||||
Common stock Issued through stock options | 28 | $ 28 | |||
Common stock withheld related to net share settlement of equity awards, Share | (2) | ||||
Common stock withheld related to net share settlement of equity awards | (12) | $ (12) | |||
Foreign currency translation adjustment | 0 | ||||
Ending balance at Jun. 30, 2023 | 37,079 | $ 113,599 | $ (5,364) | (71,156) | |
Shares, Outstanding, Ending Balance at Jun. 30, 2023 | 10,964 | (541) | |||
Shares, Outstanding, Beginning Balance at Dec. 31, 2023 | 11,010 | (541) | |||
Beginning balance at Dec. 31, 2023 | 31,413 | $ 115,295 | $ (5,364) | $ 3 | (78,521) |
Net Income (Loss) | (2,455) | (2,455) | |||
Stock-based compensation | 1,087 | $ 1,087 | |||
Common stock Issued through restricted stock awards | 169 | ||||
Common stock withheld related to net share settlement of equity awards, Share | (24) | ||||
Common stock withheld related to net share settlement of equity awards | (94) | $ (94) | |||
Common stock issued under ESPP, Share | 23 | ||||
Common stock issued under ESPP, Value | 76 | $ 76 | |||
Foreign currency translation adjustment | (2) | (2) | |||
Common stock Issued in connection with at-the-market offerings, net Share | 124 | ||||
Common stock Issued in connection with at-the-market offerings, net Value | 488 | $ 488 | |||
Ending balance at Mar. 31, 2024 | 30,513 | $ 116,852 | $ (5,364) | 1 | (80,976) |
Shares, Outstanding, Ending Balance at Mar. 31, 2024 | 11,302 | ||||
Shares, Outstanding, Beginning Balance at Dec. 31, 2023 | 11,010 | (541) | |||
Beginning balance at Dec. 31, 2023 | 31,413 | $ 115,295 | $ (5,364) | 3 | (78,521) |
Net Income (Loss) | (4,968) | ||||
Foreign currency translation adjustment | (4) | ||||
Ending balance at Jun. 30, 2024 | 31,590 | $ 120,444 | $ (5,364) | (1) | (83,489) |
Shares, Outstanding, Ending Balance at Jun. 30, 2024 | 11,842 | (541) | |||
Shares, Outstanding, Beginning Balance at Mar. 31, 2024 | 11,302 | ||||
Beginning balance at Mar. 31, 2024 | 30,513 | $ 116,852 | $ (5,364) | 1 | (80,976) |
Net Income (Loss) | (2,513) | (2,513) | |||
Stock-based compensation | 1,049 | $ 1,049 | |||
Common stock Issued through restricted stock awards | 27 | ||||
Common stock Issued through stock options, Share | 8 | ||||
Common stock Issued through stock options | 25 | $ 25 | |||
Foreign currency translation adjustment | (2) | (2) | |||
Common stock Issued in connection with at-the-market offerings, net Share | 505 | ||||
Common stock Issued in connection with at-the-market offerings, net Value | 2,518 | $ 2,518 | |||
Ending balance at Jun. 30, 2024 | $ 31,590 | $ 120,444 | $ (5,364) | $ (1) | $ (83,489) |
Shares, Outstanding, Ending Balance at Jun. 30, 2024 | 11,842 | (541) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (4,968) | $ (5,063) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 284 | 342 |
Loss on disposal of property and equipment | 0 | 11 |
Amortization of intangible assets | 1,484 | 1,485 |
Stock-based compensation | 2,253 | 1,949 |
Deferred tax liability | 19 | 7 |
Amortization of prepaid assets | 132 | 0 |
Accrual of property and equipment | 22 | 0 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (1,267) | 115 |
Inventories | (740) | (571) |
Prepaid expenses and other current assets | 312 | 596 |
Other assets | 6 | 6 |
Accounts payable | (628) | (877) |
Accrued compensation | 379 | (880) |
Accrued liabilities and other | 432 | 912 |
Lease liabilities | (42) | (36) |
Net cash used in operating activities | (2,322) | (2,004) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (150) | (104) |
Net cash used in investing activities | (150) | (104) |
Cash flows from financing activities: | ||
Proceeds from at-the-market common stock offering, net of offering costs | 3,006 | 0 |
Payments for withholding taxes related to net share settlement of equity awards | (95) | (690) |
Proceeds from employee stock purchase and option exercises | 101 | 165 |
Net cash provided by (used in) financing activities | 3,012 | (525) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (5) | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 535 | (2,633) |
Cash, cash equivalents, and restricted cash; beginning of period | 7,976 | 12,078 |
Cash, cash equivalents, and restricted cash; end of period | 8,511 | 9,445 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid | 38 | 64 |
Income taxes refunded | 50 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Operating lease liabilities resulting from right-of-use assets | 179 | 11 |
Accrual of property and equipment | 0 | 29 |
Accrued offering costs charged against proceeds from sale of common stock | 10 | 0 |
Cash and cash equivalents | 8,416 | 9,270 |
Restricted cash included in prepaid expenses and other current assets and other assets long term | 95 | 175 |
Total cash, cash equivalents, and restricted cash | $ 8,511 | $ 9,445 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (2,513) | $ (2,455) | $ (2,205) | $ (2,858) | $ (4,968) | $ (5,063) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non-Rule 10b5-1 Arrangement Modified | false |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Note 1. Description of Business and Basis of Presentation Description of Business Airgain, Inc. was incorporated in the State of California on March 20, 1995; and reincorporated in the State of Delaware on August 17, 2016. Airgain, Inc. together with its subsidiaries are herein referred to as the “Company,” “we,” or “our.” The Company is a leading provider of connectivity solutions including embedded components, external antennas, and integrated systems that enable wireless networking in the consumer, enterprise, and automotive markets. The Company’s headquarters is in San Diego, California. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 , from which the balance sheet information herein was derived. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and investments have been eliminated in consolidation. Segment Information The Company’s operations are located primarily in the United States and most of its assets are located in San Diego, California and Plymouth, Minnesota. The Company operates in one segment related to providing connectivity solutions – embedded components, external antennas, and integrated systems. The Company’s chief operating decision-maker is our chief executive officer, who reviews operating results on an aggregate consolidated basis for purposes of regularly making operating decisions, allocation of resources and assessing performance as a single operating segment. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies During the six months ended June 30, 2024, there have been no material changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Trade Accounts Receivable We perform ongoing credit evaluations of our customers and assess each customer’s credit worthiness. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. We monitor collections and payments from our customers and analyze for an allowance for credit losses. The allowance for credit losses is based upon applying an expected credit loss rate to receivables based on the historical loss rate and is adjusted for current conditions, including any specific customer collection issues identified, and economic conditions forecast. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful. Inventories As of April 2022, all of the Company’s products are manufactured by third parties that retain ownership of the inventory until title is transferred to the customer at the shipping point. In some situations, the Company retains ownership of consigned inventories at third-party contract manufacturer (CM) locations due to actual or pending customers' orders. The Company recognized the consigned inventory as an asset in its financial statements . In certain instances, shipping terms are delivery-at-place and the Company is responsible for arranging transportation and delivery of goods ready for unloading at the named place. In those instances, the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying consolidated balance sheets. In the second quarter of 2022, we closed our facility located in Scottsdale, Arizona where certain of our products were previously manufactured. Inventory is stated at the lower of cost or net realizable value. For items manufactured by our CMs, cost is determined using the weighted average cost method. For items manufactured by third parties, cost is determined using the first-in, first-out method (FIFO). Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Write downs for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, generally three to ten years . The estimated useful lives for leasehold improvements are determined as either the estimated useful life of the asset or the lease term, whichever is shorter. Repairs and maintenance are expensed as incurred. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. When assets are disposed of (or otherwise sold), the cost and related accumulated depreciation are removed from the accounts and any gain or loss on the disposal of property and equipment is classified as other expense (income) in the Company's consolidated statement of operations. Goodwill We account for our goodwill under the authoritative guidance ASC 250 for goodwill and other intangible assets and the provisions of ASU 2017-04, Simplifying the Test for Goodwill Impairment, which we early adopted in fiscal year 2020. Goodwill is not amortized but is tested for impairment annually as of December 31 or more frequently if events or changes in circumstances indicate that our goodwill might be impaired. Such circumstances may include, but not limited to (1) a decline in macro-economic conditions, (2) a significant decline in our financial performance or (3) a significant decline in the price of our common stock for a sustained period of time. We consider the aggregation of the relevant qualitative factors, and conclude whether it is more likely than not that the fair value of our reporting unit is less than the carrying value. If we conclude that it is more likely than not that the fair value of our reporting unit is less than the carrying value, we perform a quantitative impairment test. The quantitative impairment test compares the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not considered impaired. However, if the fair value of the reporting unit is lower than the carrying amount of the net assets assigned to the reporting unit, an impairment charge is recognized equal to the excess of the carrying amount over the fair value. The impairment charge is limited to the goodwill amount of the reporting unit. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. For the market approach of valuation, we may use the guideline public company method. Under this method we utilize information from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit to derive an indication of value. For the income approach of valuation, we use a discounted cash flow methodology to derive an indication of value, which required management to make estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, income tax rates, EBITDA, perpetual growth rates, and long-term discount rates, among others. In addition, we make certain judgments and assumptions in determining our reporting unit. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. Intangibles The Company’s identifiable finite-lived intangible assets are comprised of acquired intangibles, developed technologies, customer relationships and non-compete agreements. The cost of the market-related intangible assets with finite lives is amortized on a straight-line basis over the assets’ respective estimated useful lives. We assess potential impairments to our intangible assets in accordance with the authoritative guidance for impairment or disposal of long-lived assets (ASC 360) when events or changes in circumstances indicate that the carrying value may not be recoverable. We assess the impairment of long-lived and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As a first step, we consider factors, which may include the following, but are not limited to: (1) significant underperformance relative to historical or projected future operating results; (2) significant negative industry or economic trends; or (3) a significant decline in our stock price for a sustained period. If this assessment indicates that the carrying value of the assets may not be recoverable, the Company is required to perform the second step to test the asset group for recoverability. This recoverability test compares the future undiscounted cash flows expected from the use of the asset group to its carrying value. If the carrying value is more than the undiscounted future cash flows, the Company is required perform a third step to determine the fair value of the asset group and compare fair value against the carrying value. Any excess carrying value over the fair value needs to be recognized as an impairment loss. Determining the recoverability of long-lived or intangible assets is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows and the future market value of our asset group. In addition, we make certain judgments and assumptions in determining our asset group. We base our recoverability estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. Revenue Recognition Under ASC Topic 606 “Revenue from Contracts with Customers”, the Company recognize revenue when, or as the control of the promised goods or services is transferred to the customers in an amount that reflects the consideration the Company expects to be entitled in exchange for those goods or services. In applying this core principle, the Company performs the following five-steps only when it is probable that substantially all of the consideration that it will be entitled in exchange for the goods or services that will be transferred to the customer: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligation(s) in the contract and (v) recognize revenue when or as the entity satisfies performance obligations. A performance obligation is at a point in time, except if it meets any of the three criteria, which will require recognition of revenue over time: • the customer simultaneously receives and consumes the benefit provided by the entity’s performance as the entity performs, • the entity’s performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced, and • the entity's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Most of the Company's revenue is generated from product sales and the revenue is recognized at a point-in-time when control is transferred to the customer. Each purchase order, along with existing customer agreements, when applicable, represents a contract from a customer and each product sold represents a distinct performance obligation. Revenue is recognized when control is transferred to the customer at a point in time either when the product is shipped to or received by the customer, based on the terms of the specific agreement with the customer, and the Company has an enforceable right to payment for the product. The Company allocates the transaction price, which is generally the quoted price per terms of the contract and the consideration the Company expects to receive, to each performance obligation. The Company offers return rights and/or pricing credits under certain circumstances. We estimate product returns based on historical sales and return trends and record against revenue and corresponding refund liability. A portion of the Company's revenue is recognized over time, including: data subscription, test services or custom design services. Revenue from data subscription plans relate to purchased asset trackers with activated data lines, through a third-party service provider. Data subscription plan revenues are recognized monthly based on the fee stated in the contract, as the customer is simultaneously receiving and consuming the benefits provided throughout the Company's monthly performance obligation. Test service revenues are recognized monthly based on the fee stated in the contract for obligations over time on assets that the customer controls. Design service fees are paid in advance; the prepayments are deferred revenues and are recorded as contract liabilities. Most of the design service fees are recognized based on the Company's achievement of milestones. The Company's performance for the design services does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. We recognize from the contract liabilities as milestones are achieved over service periods ranging from three (3) to eighteen (18) months. The Company's contracts with customers do not typically include extended payment terms. Payment terms may vary by contract and type of customer and generally range from 30 to 90 days from delivery. The Company provides assurance-type warranties on all product sales ranging from one to two years. The estimated warranty costs are accrued for at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period as allowed under ASC 606. The Company has also elected to record sales commissions when incurred, pursuant to the practical expedient under ASC 340, Other Assets and Deferred Costs, as the period over which the sales commission asset that would have been recognized is less than one year. Shipping and Transportation Costs Shipping and other transportation costs expensed as incurred were $ 0.1 million for each of the three months ended June 30, 2024 and 2023 . These costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. Research and Development Costs Research and development costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred. These costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. Income Taxes The Company records income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When applicable a valuation allowance is established to reduce any deferred tax asset when we determine that it is more likely than not that some portion of the deferred tax asset will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses. Stock-Based Compensation We recognize compensation costs related to stock options and restricted stock units granted to employees and directors based on the estimated fair value of the awards on the date of grant. We estimate the option grant fair values, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The grant date fair value of stock-based awards are expensed on a straight-line basis over the requisite service period of the entire reward. The Company recognizes forfeitures when incurred. The assumptions used in the Black-Scholes option-pricing model are as follows: • Fair value of our common stock. The Company’s common stock is valued by reference to the publicly traded price of our common stock. • Expected term. The expected term represents the period of time stock-based awards are expected to be outstanding. • Expected weighted average volatility. Beginning 2022, we estimated expected volatility using solely our historical share price volatilities. • Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term. • Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and have no current plans to pay any dividends. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, accrued liabilities and deferred purchase price obligations approximate their fair values due to the short maturity of these instruments. Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. The Company follows a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable in active markets. Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” ASU No. 2023-07 require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (CODM), amounts and descriptions of other reportable segments, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU is applicable to entities with a single reportable segment. This ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The ASU should be applied retrospectively to all prior periods presented in the financial statements. The Company will evaluate the ASU to determine its impact on the Company’s disclosures. The Company does not expect adoption to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures.". ASU No. 2023-09 requires expanded disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disclosure of income taxes paid by jurisdiction. The amendments in ASU are effective for fiscal years beginning after December 15, 2024 with early adoption permitted. Retrospective application of the amendments are permitted. The Company will evaluate the ASU to determine its impact on the Company’s disclosures. As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, "Codification Improvements—Amendments to Remove References to the Concepts Statements." ASU No. 2024-02 removes various references to concepts statements from the FASB Accounting Standards Codification. The ASU indicates that the goal of the amendments is to simplify the Codification and distinguish between non-authoritative and authoritative guidance since, unlike the Codification, the concepts statements are non-authoritative. The amendments in ASU are effective for fiscal years beginning after December 15, 2024 with early adoption permitted. Retrospective application of the amendments are permitted. The Company will evaluate the ASU to determine its impact on the Company’s disclosures. The Company does not expect adoption to have a material impact on its consolidated financial statements. We have assessed all other ASUs issued but not yet adopted and concluded that those not disclosed are not relevant to the Company or are not expected to have a material impact. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 3. Net Loss Per Share Basic net loss per share is calculated by dividing net loss available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted loss per common share using the treasury stock method. The following table presents the computation of net loss per share (in thousands except per share data) : Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 2,513 ) $ ( 2,205 ) $ ( 4,968 ) $ ( 5,063 ) Denominator: Basic weighted average common shares outstanding 10,938 10,413 10,736 10,340 Plus dilutive effect of potential common shares — — — — Diluted weighted average common shares outstanding 10,938 10,413 10,736 10,340 Net loss per share: Basic $ ( 0.23 ) $ ( 0.21 ) $ ( 0.46 ) $ ( 0.49 ) Diluted $ ( 0.23 ) $ ( 0.21 ) $ ( 0.46 ) $ ( 0.49 ) Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follow s (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Stock options, restricted stock and performance stock 2,387 2,413 2,443 2,369 Common stock equivalent shares 2,387 2,413 2,443 2,369 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 4. Cash and Cash Equivalents The following tables show the Company’s cash and cash equivalents by significant investment category (in thousands): June 30, 2024 December 31, 2023 Cash $ 8,316 $ 7,581 Level 1: Money market funds 100 300 Total $ 8,416 $ 7,881 Restricted Cash As of June 30, 2024 and December 31, 2023, the Company had $ 95,000 in cash on deposit to secure certain lease commitments; $ 40,000 of which is short-term in nature and recorded in prepaid expenses and other current assets and $ 55,000 of which is restricted for more than twelve months and recorded in other assets in the Company’s consolidated balance sheet. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 5. Inventory Inventories are comprised of the following (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 487 $ 661 Finished goods 2,657 1,742 Total Inventory $ 3,144 $ 2,403 Consigned inventories, which are included in total inventories, are comprised of the following (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 459 $ 558 Finished goods 1,508 598 Total Consigned Inventory $ 1,967 $ 1,156 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6. Property and Equipment Depreciation and amortization of property and equipment is calculated on the straight-line method based on the shorter of the estimated useful life or the term of the lease for tenant improvements and three to ten years for all other property and equipment. Property and equipment consist of the following (in thousands) : June 30, 2024 December 31, 2023 Manufacturing and testing equipment $ 5,507 $ 5,371 Leasehold improvements 848 848 Computers and software 550 811 Furniture, fixtures, and equipment 427 427 Vehicles 55 55 Construction in process 30 45 Property and equipment, gross 7,417 7,557 Less accumulated depreciation ( 5,197 ) ( 5,050 ) Property and equipment, net $ 2,220 $ 2,507 Depreciation expense was $ 0.1 million and $ 0.2 million for the three months ended June 30, 2024 and 2023 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets and Goodwill | Note 7. Intangible Assets and Goodwill Other Intangible Assets The following is a summary of the Company’s acquired other intangible assets (dollars in thousands): June 30, 2024 Weighted average amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount Market related intangibles 5 $ 1,820 $ 1,304 $ 516 Customer relationships 7 13,780 10,130 3,650 Developed technologies 11 4,380 1,795 2,585 Covenants to non-compete 2 115 115 — Total intangible assets, net $ 20,095 $ 13,344 $ 6,751 December 31, 2023 Weighted average amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount Market related intangibles 5 $ 1,820 $ 1,135 $ 685 Customer relationships 7 13,780 8,993 4,787 Developed technologies 11 4,380 1,618 2,762 Covenants to non-compete 2 115 115 — Total intangible assets, net $ 20,095 $ 11,861 $ 8,234 Amortization expense was $ 0.7 million for each of the three months ended June 30, 2024 and 2023. Estimated annual amortization of intangible assets for the next five years and thereafter is shown in the foll owing table (in thousands): Estimated future amortization 2024 (remaining six months) $ 1,484 2025 2,958 2026 557 2027 356 Thereafter 1,396 Total $ 6,751 Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors. No impairment losses were recorded against the other intangibles during each of the three months ended June 30, 2024 and 2023. During the fourth quarter of 2023 and second quarter of 2024, the Company determined that there were no triggering events or circumstances to indicate that the carrying value of the finite-lived asset group may not be recoverable. Based on the assessment performed, we concluded that an impairment charge to finite-lived intangible assets was not required as of December 31, 2023 and June 30, 2024 and the useful lives remain appropriate. Goodwill No impairment losses were recorded against the goodwill during the three months ended June 30, 2024 and 2023. During the fourth quarter of 2023 and second quarter of 2024, the Company's current and expected cash flows, and the macro-economic and industry conditions have not significantly changed, while the Company’s market capitalization materially increased since December 31, 2023. After assessing the totality of events or circumstances, the Company determined that there were no events or circumstances in the fourth quarter of 2023 and second quarter of 2024 that indicated that the fair value of a reporting unit is more likely than not less than its carrying amount. Therefore, an impairment charge to goodwill was not required as of December 31, 2023 and June 30, 2024. Certain future events and circumstances could result in changes to our assumptions and judgments used in the impairment tests. A downward revision of these assumptions could cause the total fair value of our goodwill and intangible assets to fall below carrying values and a non-cash impairment charge would be required. Such a charge may have a material effect on the consolidated financial statements. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other | No t e 8. Accrued Liabilities and Other Accrued liabilities and other is comprised of the follo wing (in thousands): June 30, 2024 December 31, 2023 Accrued expenses $ 1,150 $ 1,031 VAT payable — 339 Accrued income taxes 38 145 Advanced payments from contract manufacturers 30 — Contract liabilities — 17 Goods received not invoiced 883 185 Other current liabilities 186 209 Accrued liabilities and other $ 2,287 $ 1,926 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Note 9. Leases Operating Leases The Company made certain assumptions and judgments when applying ASC 842 and it elected not to recognize right-of-use assets and lease liabilities for short-term leases (lease terms of twelve months or less). Operating lease arrangements primarily consist of office, warehouse and test house leases expiring during different years through 2025 . The facility leases have original terms of approximately one to five years and may contain options to extend up to 5 years and/or terminate early. Options to extend are included in leased right-of-use assets and lease liabilities in the consolidated balance sheet when we are reasonably certain to renew a lease. Since the implicit rate of such leases is unknown and we may not be reasonably certain to renew leases, the Company elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments. As of June 30, 2024 and December 31, 2023, the weighted average discount rate for operating leases were 4.4 % and 3.8 % , respectively. As of June 30, 2024 and December 31, 2023, the weighted average remaining lease term for operating leases was 1.4 years and 1.8 years, respectiv ely. The Company has entered into various short-term operating leases, primarily for test houses and office equipment with initial terms of 12 months or less. These short-term leases are not recorded on the Company’s consolidated balance sheet, and the related short-term lease expense was $ 13,000 and $ 27,000 , for the three months ended June 30, 2024 and 2023, respectively. Total operating lease cost was $ 0.2 million for each of the three months ended June 30, 2024 and 2023. The table below presents aggregate future minimum payments due under leases, reconciled to lease liabilities included in the consolidated balance sheet as of June 30, 2024 (in thousands): Estimated future lease obligation 2024 (remaining six months) $ 471 2025 785 2026 36 Total minimum payments 1,292 Less imputed interest ( 39 ) Less unrealized translation gain ( 2 ) Total lease liabilities 1,251 Less short-term lease liabilities ( 881 ) Long-term lease liability $ 370 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10. Income Taxes The Company’s effective income tax rate was 2.1 % and - 1.6 % for the six months ended June 30, 2024 and 2023, respectively. The variance from the U.S. federal statutory rate of 21.0 % for the six months ended June 30, 2024 was primarily attributable to the utilization of deferred tax attributes that had a full valuation allowance. Management assesses its deferred tax assets quarterly to determine whether all or any portion of the asset is more likely than not unrealizable under Accounting Standards Codification (ASC) Topic 740. The Company is required to establish a valuation allowance for any portion of the asset that management concludes is more likely than not to be unrealizable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company’s assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. As of December 31, 2023, the Company had a valuation allowance against net deferred tax assets of $ 14.6 million, however, the exclusion of a deferred tax liability generated by goodwill (an indefinite lived intangible) may not be considered a future source of taxable income in evaluating the need for a valuation allowance. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Class of Stock Disclosures [Abstract] | |
Stockholders' Equity | Note 11. Stockholders’ Equity In August 2016, the Company's Board adopted the 2016 Equity Incentive Plan (the 2016 Plan) for employees, directors and consultants. In February 2021, the Board adopted the 2021 Employment Inducement Incentive Award Plan (Inducement Plan), which provides for grants of equity-based awards. The following table presents common stock reserved for future issuance (1) (in thousands): June 30, 2024 December 31, 2023 Stock options issued and outstanding 2,482 2,104 Stock awards issued and outstanding 1,041 817 Authorized for grants under the 2016 Plan (2) 69 448 Authorized for grants under the Inducement Plan (3) 183 174 Authorized for grants under the 2016 Employee Stock Purchase Plan (4) 517 540 4,292 4,083 (1) The table above excludes 541,000 treasury stock shares as of June 30, 2024 and December 31, 2023 . (2) On January 1, 2024, the number of authorized shares in the 2016 Plan increased by 440,000 shares pursuant to the evergreen provisions of the 2016 Plan. (3) On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan. (4) On January 1, 2024, the number of authorized shares in the 2016 Employee Stock Purchase Plan increased by 100,000 sh ares pursuant to the evergreen provisions of the 2016 Employee Stock Purchase Plan. Issuance of Common Stock In March 2024, we established an at-the-market (ATM) offering program to sell up to $ 5.0 million of the Company's common stock. As of June 30, 2024, we have $ 1.7 million available under the offering program for future sales of our common stock. The Company recorded the ATM gross sales proceeds and offering costs in additional paid-in capital of the consolidated balance sheet. The following table summarizes the Company ’s ATM sales activity during the period indicated (in thousands): Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Shares issued 505 629 Gross proceeds $ 2,630 $ 3,309 Net proceeds after offering costs $ 2,518 $ 3,006 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 12 . Stock Based Compensation Stock-Based Compensation Expense Stock-based compensation is recorded in the consolidated statements of operations as fol lows (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Cost of goods sold $ 65 $ 29 $ 123 $ 44 Research and development 400 280 728 517 Sales and marketing 75 115 155 276 General and administrative 667 544 1,247 1,112 Total stock-based compensation expense $ 1,207 $ 968 $ 2,253 $ 1,949 Stock Options The following table summarizes the outstanding stock option activity during the period indi cated (shares in thousands): Weighted average Number of Exercise Remaining contractual term (in years) Aggregate intrinsic value (in thousands) Balance at December 31, 2023 2,104 $ 10.20 6.2 $ 329 Granted 408 $ 5.07 Exercised ( 8 ) $ 3.10 $ 18 Expired/Forfeited ( 22 ) $ 8.28 Balance at June 30, 2024 2,482 $ 9.40 6.4 $ 1,552 Vested and exercisable at June 30, 2024 1,639 $ 11.12 5.0 $ 657 Vested and expected to vest at June 30, 2024 2,482 $ 9.40 6.4 $ 1,552 The weighted average grant date fair value of options granted during the six months ended June 30, 2024 was $ 2.82 . The grant-date fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. For stock options vested and expected to vest, the aggregate intrinsic value as of June 30, 2024 was $ 1.6 million. At June 30, 2024, there was $ 2.4 million of unrecognized compensation cost related to unvested stock options granted under the Company’s equity plans that is expected to be recognized over the next 2.5 years. Restricted Stock The following table summarizes the Company ’s restricted stock unit (RSU) activity during the period indicated (shares in thousands): Restricted Weighted average grant date fair value Balance at December 31, 2023 706 $ 6.97 Grants 484 $ 5.14 Vested and released ( 196 ) $ 7.83 Forfeited ( 64 ) $ 5.77 Balance at June 30, 2024 930 $ 5.92 As of June 30, 2024, there was $ 4.2 million of total unrecognized compensation cost related to unvested RSUs having a weighted average remaining contractual term of 2.8 years. Performance Stock Units The following table summarizes the Company ’s performance stock unit (PSU) activity during the period indicated (shares in thousands): Performance Weighted average grant date fair value Balance at December 31, 2023 110 $ 1.79 Grants — $ — Vested and released — $ — Forfeited — $ — Balance at June 30, 2024 110 $ 1.79 Service as well as market and performance conditions determine the number of PSUs that the holder will earn from 0% to 150% of the target number of shares. The per centage received is based on the Company common stock price targets over a three-year service period. Additionally, the Company must achieve or exceed 75% of the year to date revenue target measured at the end of the quarter in which the price target is achieved. As of June 30, 2024, there was $ 10,693 of total unrecognized compensation cost related to unvested PSUs, having a weighted average remaining contractual term of 0.8 years. We estimate the fair value of PSUs with a market condition using a Monte Carlo simulation model as of the date of grant using historical volatility. Share-Settled Obligations When incurred, share-settled obligations to non-employees that will be paid in restricted stock units are recorded as accrued expense liability and stock-based compensation expense. The following table summarizes the Company ’s share-settled obligation RSU grants, which immediately vested during the period indicated: RSU grants that settled obligations (in thousands) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Grant date fair value $ 70.9 $ — $ 195.4 $ 949.2 RSU shares granted and vested 14 — 45 187 Employee Stock Purchase Plan (ESPP) The Company maintains the 2016 Employee Stock Purchase Plan (ESPP) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is implemented through consecutive 6 -month offering periods commencing on March 1 and September 1 of each year. The purchase price is set at 85 % of the fair market value of the Company ’ s common stock on either the first or last trading day of the offering period, whichever is lower. Annual contributions are limited to the lower of 20 % of an employee ’s eligible compensation or such other limits as apply under Section 423 of the Internal Revenue Code. The ESPP is intended to qualify as an employee stock purchase plan for purposes of Section 423 of the Internal Revenue Code. Based on the 15 % discount and the fair value of the option feature of the ESPP, it is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company currently uses authorized and unissued shares to satisfy share award exercises. During the three months ended June 30, 2024 , the Company did no t issue shares under the ESPP. During the six months ended June 30, 2024, the Company received $ 0.1 million from the issuance of 22,852 shares under the ESPP . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies Non-Recurring Severance and Exit Costs The non-recurring workforce reduction severance liability is recorded in accrued compensation on the accompanying unaudited condensed consolidated balance sheet. The severance and exit cost were recorded in the relevant operating expense departments in the accompanying unaudited condensed consolidated statement of operations. The following table presents activity that we recorded related to severance and exit costs: Severance and Exit Costs (In thousands) Balance at December 31, 2023 $ 50 Accrued to expense — Payments ( 50 ) Balance at March 31, 2024 $ — Accrued to expense — Payments — Balance at June 30, 2024 $ — Potential Product Warranty Claims The Company had a general warranty accrual of approximately $ 0.1 million as of each of June 30, 2024 and December 31, 2023. Indemnification In some agreements to which the Company is a party, the Company has agreed to indemnify the other party for certain matters, including, but not limited to, product liability and intellectual property. To date, we have not recorded any material liabilities in the accompanying consolidated financial statements. |
Concentrations
Concentrations | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Concentration | Note 14. Concentrations Concentration of Sales and Accounts Receivable The following represents customers that accounted for 10 % or more of total revenue: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Customer A 24 % 9 % 20 % 12 % Customer B 16 % 6 % 17 % 7 % The following represents customers that accounted for 10 % or more of total trade accounts receivable: June 30, 2024 December 31, 2023 Customer A 27 % 17 % Customer B 14 % 14 % The allowance for credit losses as of June 30, 2024 and December 31, 2023 was not material. Concentration of Purchases During the six months ended June 30, 2024, the Company’s products were manufactured by six CMs with locations in China, Vietnam, Mexico, and the United States. Concentration of Cash The Company’s cash deposits exceeded the Federal Deposit Insurance Corporation’s insured limits. The Company has not experienced losses on these accounts. Most of the Company's deposits are in several accounts at a large institutional bank. Concentration of Property and Equipment The Company’s property and equipment, net by geographic region, are as follows (in thousands): June 30, 2024 December 31, 2023 North America $ 2,038 $ 2,295 Asia Pacific (APAC) 71 86 Europe, Middle East and Africa (EMEA) 111 126 Property and equipment, net $ 2,220 $ 2,507 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 15. Revenue Disaggregated revenues are as fo llows (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 By Market Group: Enterprise $ 8,615 $ 7,366 $ 17,494 $ 15,803 Consumer 4,827 6,189 8,338 11,321 Automotive 1,742 2,275 3,583 5,150 Total sales $ 15,184 $ 15,830 $ 29,415 $ 32,274 By Geography: North America $ 9,337 $ 9,438 $ 19,361 $ 19,606 China (including Hong Kong and Taiwan) 5,397 6,059 8,700 12,028 Rest of the world 450 333 1,354 640 Total sales $ 15,184 $ 15,830 $ 29,415 $ 32,274 Timing of revenue recognition: Products and services transferred at a point in time $ 14,507 $ 14,795 $ 28,032 $ 30,639 Products and services transferred over time 677 1,035 1,383 1,635 Total sales $ 15,184 $ 15,830 $ 29,415 $ 32,274 Revenue generated from the United States was $ 9.3 million and $ 9.4 million for the three months ended June 30, 2024 and 2023, respectively, and $ 19.3 million and $ 19.5 million for the six months ended June 30, 2024 and 2023, respectively. Liability for potential rights of return was approximately $ 0.1 million as of June 30, 2024 and December 31, 2023 and is included within accrued liabilities in the accompanying unaudited condensed consolidated balance sheets. Contract liabilities are deferred revenues that were recorded when advance payment were received for remaining performance obligations that are recognized over time. The contract liabilities were $ 30,200 and $ 17,000 as of June 30, 2024 and December 31, 2023, respectively. The remaining non-cancellable revenue, that will be recognized over time on a series of distinct performance obligations, amounts to $ 0.2 million as of June 30, 2024 . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 16. Subsequent Events None. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Airgain, Inc. was incorporated in the State of California on March 20, 1995; and reincorporated in the State of Delaware on August 17, 2016. Airgain, Inc. together with its subsidiaries are herein referred to as the “Company,” “we,” or “our.” The Company is a leading provider of connectivity solutions including embedded components, external antennas, and integrated systems that enable wireless networking in the consumer, enterprise, and automotive markets. The Company’s headquarters is in San Diego, California. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 , from which the balance sheet information herein was derived. The unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and investments have been eliminated in consolidation. |
Segment Information | Segment Information The Company’s operations are located primarily in the United States and most of its assets are located in San Diego, California and Plymouth, Minnesota. The Company operates in one segment related to providing connectivity solutions – embedded components, external antennas, and integrated systems. The Company’s chief operating decision-maker is our chief executive officer, who reviews operating results on an aggregate consolidated basis for purposes of regularly making operating decisions, allocation of resources and assessing performance as a single operating segment. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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. |
Trade Accounts Receivable | Trade Accounts Receivable We perform ongoing credit evaluations of our customers and assess each customer’s credit worthiness. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. We monitor collections and payments from our customers and analyze for an allowance for credit losses. The allowance for credit losses is based upon applying an expected credit loss rate to receivables based on the historical loss rate and is adjusted for current conditions, including any specific customer collection issues identified, and economic conditions forecast. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful. |
Inventories | Inventories As of April 2022, all of the Company’s products are manufactured by third parties that retain ownership of the inventory until title is transferred to the customer at the shipping point. In some situations, the Company retains ownership of consigned inventories at third-party contract manufacturer (CM) locations due to actual or pending customers' orders. The Company recognized the consigned inventory as an asset in its financial statements . In certain instances, shipping terms are delivery-at-place and the Company is responsible for arranging transportation and delivery of goods ready for unloading at the named place. In those instances, the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying consolidated balance sheets. In the second quarter of 2022, we closed our facility located in Scottsdale, Arizona where certain of our products were previously manufactured. Inventory is stated at the lower of cost or net realizable value. For items manufactured by our CMs, cost is determined using the weighted average cost method. For items manufactured by third parties, cost is determined using the first-in, first-out method (FIFO). Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. Write downs for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, generally three to ten years . The estimated useful lives for leasehold improvements are determined as either the estimated useful life of the asset or the lease term, whichever is shorter. Repairs and maintenance are expensed as incurred. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. When assets are disposed of (or otherwise sold), the cost and related accumulated depreciation are removed from the accounts and any gain or loss on the disposal of property and equipment is classified as other expense (income) in the Company's consolidated statement of operations. |
Goodwill | Goodwill We account for our goodwill under the authoritative guidance ASC 250 for goodwill and other intangible assets and the provisions of ASU 2017-04, Simplifying the Test for Goodwill Impairment, which we early adopted in fiscal year 2020. Goodwill is not amortized but is tested for impairment annually as of December 31 or more frequently if events or changes in circumstances indicate that our goodwill might be impaired. Such circumstances may include, but not limited to (1) a decline in macro-economic conditions, (2) a significant decline in our financial performance or (3) a significant decline in the price of our common stock for a sustained period of time. We consider the aggregation of the relevant qualitative factors, and conclude whether it is more likely than not that the fair value of our reporting unit is less than the carrying value. If we conclude that it is more likely than not that the fair value of our reporting unit is less than the carrying value, we perform a quantitative impairment test. The quantitative impairment test compares the fair value of the reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit exceeds the carrying amount of the net assets assigned to that reporting unit, goodwill is not considered impaired. However, if the fair value of the reporting unit is lower than the carrying amount of the net assets assigned to the reporting unit, an impairment charge is recognized equal to the excess of the carrying amount over the fair value. The impairment charge is limited to the goodwill amount of the reporting unit. Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. For the market approach of valuation, we may use the guideline public company method. Under this method we utilize information from comparable publicly traded companies with similar operating and investment characteristics as the reporting unit to derive an indication of value. For the income approach of valuation, we use a discounted cash flow methodology to derive an indication of value, which required management to make estimates and assumptions related to forecasted revenues, gross profit margins, operating income margins, working capital cash flow, income tax rates, EBITDA, perpetual growth rates, and long-term discount rates, among others. In addition, we make certain judgments and assumptions in determining our reporting unit. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. |
Other Intangible Assets | Intangibles The Company’s identifiable finite-lived intangible assets are comprised of acquired intangibles, developed technologies, customer relationships and non-compete agreements. The cost of the market-related intangible assets with finite lives is amortized on a straight-line basis over the assets’ respective estimated useful lives. We assess potential impairments to our intangible assets in accordance with the authoritative guidance for impairment or disposal of long-lived assets (ASC 360) when events or changes in circumstances indicate that the carrying value may not be recoverable. We assess the impairment of long-lived and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As a first step, we consider factors, which may include the following, but are not limited to: (1) significant underperformance relative to historical or projected future operating results; (2) significant negative industry or economic trends; or (3) a significant decline in our stock price for a sustained period. If this assessment indicates that the carrying value of the assets may not be recoverable, the Company is required to perform the second step to test the asset group for recoverability. This recoverability test compares the future undiscounted cash flows expected from the use of the asset group to its carrying value. If the carrying value is more than the undiscounted future cash flows, the Company is required perform a third step to determine the fair value of the asset group and compare fair value against the carrying value. Any excess carrying value over the fair value needs to be recognized as an impairment loss. Determining the recoverability of long-lived or intangible assets is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows and the future market value of our asset group. In addition, we make certain judgments and assumptions in determining our asset group. We base our recoverability estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. |
Revenue Recognition | Revenue Recognition Under ASC Topic 606 “Revenue from Contracts with Customers”, the Company recognize revenue when, or as the control of the promised goods or services is transferred to the customers in an amount that reflects the consideration the Company expects to be entitled in exchange for those goods or services. In applying this core principle, the Company performs the following five-steps only when it is probable that substantially all of the consideration that it will be entitled in exchange for the goods or services that will be transferred to the customer: (i) identify the contract(s) with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligation(s) in the contract and (v) recognize revenue when or as the entity satisfies performance obligations. A performance obligation is at a point in time, except if it meets any of the three criteria, which will require recognition of revenue over time: • the customer simultaneously receives and consumes the benefit provided by the entity’s performance as the entity performs, • the entity’s performance creates or enhances an asset (for example, work in process) that the customer controls as the asset is created or enhanced, and • the entity's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Most of the Company's revenue is generated from product sales and the revenue is recognized at a point-in-time when control is transferred to the customer. Each purchase order, along with existing customer agreements, when applicable, represents a contract from a customer and each product sold represents a distinct performance obligation. Revenue is recognized when control is transferred to the customer at a point in time either when the product is shipped to or received by the customer, based on the terms of the specific agreement with the customer, and the Company has an enforceable right to payment for the product. The Company allocates the transaction price, which is generally the quoted price per terms of the contract and the consideration the Company expects to receive, to each performance obligation. The Company offers return rights and/or pricing credits under certain circumstances. We estimate product returns based on historical sales and return trends and record against revenue and corresponding refund liability. A portion of the Company's revenue is recognized over time, including: data subscription, test services or custom design services. Revenue from data subscription plans relate to purchased asset trackers with activated data lines, through a third-party service provider. Data subscription plan revenues are recognized monthly based on the fee stated in the contract, as the customer is simultaneously receiving and consuming the benefits provided throughout the Company's monthly performance obligation. Test service revenues are recognized monthly based on the fee stated in the contract for obligations over time on assets that the customer controls. Design service fees are paid in advance; the prepayments are deferred revenues and are recorded as contract liabilities. Most of the design service fees are recognized based on the Company's achievement of milestones. The Company's performance for the design services does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. We recognize from the contract liabilities as milestones are achieved over service periods ranging from three (3) to eighteen (18) months. The Company's contracts with customers do not typically include extended payment terms. Payment terms may vary by contract and type of customer and generally range from 30 to 90 days from delivery. The Company provides assurance-type warranties on all product sales ranging from one to two years. The estimated warranty costs are accrued for at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period as allowed under ASC 606. The Company has also elected to record sales commissions when incurred, pursuant to the practical expedient under ASC 340, Other Assets and Deferred Costs, as the period over which the sales commission asset that would have been recognized is less than one year. |
Shipping and Transportation Costs | Shipping and Transportation Costs Shipping and other transportation costs expensed as incurred were $ 0.1 million for each of the three months ended June 30, 2024 and 2023 . These costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. These costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Income Taxes | Income Taxes The Company records income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. When applicable a valuation allowance is established to reduce any deferred tax asset when we determine that it is more likely than not that some portion of the deferred tax asset will not be realized. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses. |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation costs related to stock options and restricted stock units granted to employees and directors based on the estimated fair value of the awards on the date of grant. We estimate the option grant fair values, and the resulting stock-based compensation expense, using the Black-Scholes option-pricing model. The grant date fair value of stock-based awards are expensed on a straight-line basis over the requisite service period of the entire reward. The Company recognizes forfeitures when incurred. The assumptions used in the Black-Scholes option-pricing model are as follows: • Fair value of our common stock. The Company’s common stock is valued by reference to the publicly traded price of our common stock. • Expected term. The expected term represents the period of time stock-based awards are expected to be outstanding. • Expected weighted average volatility. Beginning 2022, we estimated expected volatility using solely our historical share price volatilities. • Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term. • Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and have no current plans to pay any dividends. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, accrued liabilities and deferred purchase price obligations approximate their fair values due to the short maturity of these instruments. Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. The Company follows a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below: • Level 1: Quoted prices in active markets for identical assets or liabilities. • Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable in active markets. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” ASU No. 2023-07 require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (CODM), amounts and descriptions of other reportable segments, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. The ASU is applicable to entities with a single reportable segment. This ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The ASU should be applied retrospectively to all prior periods presented in the financial statements. The Company will evaluate the ASU to determine its impact on the Company’s disclosures. The Company does not expect adoption to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures.". ASU No. 2023-09 requires expanded disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disclosure of income taxes paid by jurisdiction. The amendments in ASU are effective for fiscal years beginning after December 15, 2024 with early adoption permitted. Retrospective application of the amendments are permitted. The Company will evaluate the ASU to determine its impact on the Company’s disclosures. As the amendments apply to income tax disclosures only, the Company does not expect adoption to have a material impact on its consolidated financial statements. In March 2024, the FASB issued ASU 2024-02, "Codification Improvements—Amendments to Remove References to the Concepts Statements." ASU No. 2024-02 removes various references to concepts statements from the FASB Accounting Standards Codification. The ASU indicates that the goal of the amendments is to simplify the Codification and distinguish between non-authoritative and authoritative guidance since, unlike the Codification, the concepts statements are non-authoritative. The amendments in ASU are effective for fiscal years beginning after December 15, 2024 with early adoption permitted. Retrospective application of the amendments are permitted. The Company will evaluate the ASU to determine its impact on the Company’s disclosures. The Company does not expect adoption to have a material impact on its consolidated financial statements. We have assessed all other ASUs issued but not yet adopted and concluded that those not disclosed are not relevant to the Company or are not expected to have a material impact. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Net Loss Per Share | The following table presents the computation of net loss per share (in thousands except per share data) : Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Numerator: Net loss $ ( 2,513 ) $ ( 2,205 ) $ ( 4,968 ) $ ( 5,063 ) Denominator: Basic weighted average common shares outstanding 10,938 10,413 10,736 10,340 Plus dilutive effect of potential common shares — — — — Diluted weighted average common shares outstanding 10,938 10,413 10,736 10,340 Net loss per share: Basic $ ( 0.23 ) $ ( 0.21 ) $ ( 0.46 ) $ ( 0.49 ) Diluted $ ( 0.23 ) $ ( 0.21 ) $ ( 0.46 ) $ ( 0.49 ) |
Summary of Potentially Dilutive Securities | Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follow s (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Stock options, restricted stock and performance stock 2,387 2,413 2,443 2,369 Common stock equivalent shares 2,387 2,413 2,443 2,369 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents by Significant Investment Category | The following tables show the Company’s cash and cash equivalents by significant investment category (in thousands): June 30, 2024 December 31, 2023 Cash $ 8,316 $ 7,581 Level 1: Money market funds 100 300 Total $ 8,416 $ 7,881 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory And Consigned Inventories, Current | Inventories are comprised of the following (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 487 $ 661 Finished goods 2,657 1,742 Total Inventory $ 3,144 $ 2,403 Consigned inventories, which are included in total inventories, are comprised of the following (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 459 $ 558 Finished goods 1,508 598 Total Consigned Inventory $ 1,967 $ 1,156 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands) : June 30, 2024 December 31, 2023 Manufacturing and testing equipment $ 5,507 $ 5,371 Leasehold improvements 848 848 Computers and software 550 811 Furniture, fixtures, and equipment 427 427 Vehicles 55 55 Construction in process 30 45 Property and equipment, gross 7,417 7,557 Less accumulated depreciation ( 5,197 ) ( 5,050 ) Property and equipment, net $ 2,220 $ 2,507 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Summary of Acquired Intangible Assets | The following is a summary of the Company’s acquired other intangible assets (dollars in thousands): June 30, 2024 Weighted average amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount Market related intangibles 5 $ 1,820 $ 1,304 $ 516 Customer relationships 7 13,780 10,130 3,650 Developed technologies 11 4,380 1,795 2,585 Covenants to non-compete 2 115 115 — Total intangible assets, net $ 20,095 $ 13,344 $ 6,751 December 31, 2023 Weighted average amortization period (in years) Gross carrying amount Accumulated amortization Net carrying amount Market related intangibles 5 $ 1,820 $ 1,135 $ 685 Customer relationships 7 13,780 8,993 4,787 Developed technologies 11 4,380 1,618 2,762 Covenants to non-compete 2 115 115 — Total intangible assets, net $ 20,095 $ 11,861 $ 8,234 |
Schedule of Estimated Annual Amortization of Intangible Assets | Estimated annual amortization of intangible assets for the next five years and thereafter is shown in the foll owing table (in thousands): Estimated future amortization 2024 (remaining six months) $ 1,484 2025 2,958 2026 557 2027 356 Thereafter 1,396 Total $ 6,751 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Summary of Accrued Liabilities and Other | Accrued liabilities and other is comprised of the follo wing (in thousands): June 30, 2024 December 31, 2023 Accrued expenses $ 1,150 $ 1,031 VAT payable — 339 Accrued income taxes 38 145 Advanced payments from contract manufacturers 30 — Contract liabilities — 17 Goods received not invoiced 883 185 Other current liabilities 186 209 Accrued liabilities and other $ 2,287 $ 1,926 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Under Operating Leases | The table below presents aggregate future minimum payments due under leases, reconciled to lease liabilities included in the consolidated balance sheet as of June 30, 2024 (in thousands): Estimated future lease obligation 2024 (remaining six months) $ 471 2025 785 2026 36 Total minimum payments 1,292 Less imputed interest ( 39 ) Less unrealized translation gain ( 2 ) Total lease liabilities 1,251 Less short-term lease liabilities ( 881 ) Long-term lease liability $ 370 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | The following table presents common stock reserved for future issuance (1) (in thousands): June 30, 2024 December 31, 2023 Stock options issued and outstanding 2,482 2,104 Stock awards issued and outstanding 1,041 817 Authorized for grants under the 2016 Plan (2) 69 448 Authorized for grants under the Inducement Plan (3) 183 174 Authorized for grants under the 2016 Employee Stock Purchase Plan (4) 517 540 4,292 4,083 (1) The table above excludes 541,000 treasury stock shares as of June 30, 2024 and December 31, 2023 . (2) On January 1, 2024, the number of authorized shares in the 2016 Plan increased by 440,000 shares pursuant to the evergreen provisions of the 2016 Plan. (3) On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan. (4) On January 1, 2024, the number of authorized shares in the 2016 Employee Stock Purchase Plan increased by 100,000 sh ares pursuant to the evergreen provisions of the 2016 Employee Stock Purchase Plan. |
Schedule Of The Company's ATM Sales Activity | The following table summarizes the Company ’s ATM sales activity during the period indicated (in thousands): Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Shares issued 505 629 Gross proceeds $ 2,630 $ 3,309 Net proceeds after offering costs $ 2,518 $ 3,006 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Expenses | Stock-based compensation is recorded in the consolidated statements of operations as fol lows (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Cost of goods sold $ 65 $ 29 $ 123 $ 44 Research and development 400 280 728 517 Sales and marketing 75 115 155 276 General and administrative 667 544 1,247 1,112 Total stock-based compensation expense $ 1,207 $ 968 $ 2,253 $ 1,949 |
Summary of Outstanding Stock Option Activity | The following table summarizes the outstanding stock option activity during the period indi cated (shares in thousands): Weighted average Number of Exercise Remaining contractual term (in years) Aggregate intrinsic value (in thousands) Balance at December 31, 2023 2,104 $ 10.20 6.2 $ 329 Granted 408 $ 5.07 Exercised ( 8 ) $ 3.10 $ 18 Expired/Forfeited ( 22 ) $ 8.28 Balance at June 30, 2024 2,482 $ 9.40 6.4 $ 1,552 Vested and exercisable at June 30, 2024 1,639 $ 11.12 5.0 $ 657 Vested and expected to vest at June 30, 2024 2,482 $ 9.40 6.4 $ 1,552 |
Summary of Outstanding Restricted Stock Unit Activity | The following table summarizes the Company ’s restricted stock unit (RSU) activity during the period indicated (shares in thousands): Restricted Weighted average grant date fair value Balance at December 31, 2023 706 $ 6.97 Grants 484 $ 5.14 Vested and released ( 196 ) $ 7.83 Forfeited ( 64 ) $ 5.77 Balance at June 30, 2024 930 $ 5.92 |
Schedule of Performance Stock Unit | The following table summarizes the Company ’s performance stock unit (PSU) activity during the period indicated (shares in thousands): Performance Weighted average grant date fair value Balance at December 31, 2023 110 $ 1.79 Grants — $ — Vested and released — $ — Forfeited — $ — Balance at June 30, 2024 110 $ 1.79 |
Schedule of Company's share-settled obligation RSU grants | The following table summarizes the Company ’s share-settled obligation RSU grants, which immediately vested during the period indicated: RSU grants that settled obligations (in thousands) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Grant date fair value $ 70.9 $ — $ 195.4 $ 949.2 RSU shares granted and vested 14 — 45 187 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of liability recorded related to severance and exit costs | The following table presents activity that we recorded related to severance and exit costs: Severance and Exit Costs (In thousands) Balance at December 31, 2023 $ 50 Accrued to expense — Payments ( 50 ) Balance at March 31, 2024 $ — Accrued to expense — Payments — Balance at June 30, 2024 $ — |
Concentration (Tables)
Concentration (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Sales and Accounts Receivable | The following represents customers that accounted for 10 % or more of total revenue: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Customer A 24 % 9 % 20 % 12 % Customer B 16 % 6 % 17 % 7 % The following represents customers that accounted for 10 % or more of total trade accounts receivable: June 30, 2024 December 31, 2023 Customer A 27 % 17 % Customer B 14 % 14 % |
Summary of Long Lived Assets By Geographical Region | The Company’s property and equipment, net by geographic region, are as follows (in thousands): June 30, 2024 December 31, 2023 North America $ 2,038 $ 2,295 Asia Pacific (APAC) 71 86 Europe, Middle East and Africa (EMEA) 111 126 Property and equipment, net $ 2,220 $ 2,507 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue | Disaggregated revenues are as fo llows (in thousands): Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 By Market Group: Enterprise $ 8,615 $ 7,366 $ 17,494 $ 15,803 Consumer 4,827 6,189 8,338 11,321 Automotive 1,742 2,275 3,583 5,150 Total sales $ 15,184 $ 15,830 $ 29,415 $ 32,274 By Geography: North America $ 9,337 $ 9,438 $ 19,361 $ 19,606 China (including Hong Kong and Taiwan) 5,397 6,059 8,700 12,028 Rest of the world 450 333 1,354 640 Total sales $ 15,184 $ 15,830 $ 29,415 $ 32,274 Timing of revenue recognition: Products and services transferred at a point in time $ 14,507 $ 14,795 $ 28,032 $ 30,639 Products and services transferred over time 677 1,035 1,383 1,635 Total sales $ 15,184 $ 15,830 $ 29,415 $ 32,274 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 Days | |
Significant Accounting Policies [Line Items] | |||
Shipping and other transportation costs | $ | $ 0.1 | $ 0.1 | |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years | 3 years | |
Deferred revenue recognition period | 3 months | ||
Revenue recognition, payment terms | 30 | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 10 years | 10 years | |
Deferred revenue recognition period | 18 months | ||
Revenue recognition, payment terms | 90 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||||
Net Income (Loss) | $ (2,513) | $ (2,455) | $ (2,205) | $ (2,858) | $ (4,968) | $ (5,063) |
Basic weighted average common shares outstanding | 10,938 | 10,413 | 10,736 | 10,340 | ||
Plus dilutive effect of potential common shares | 0 | 0 | 0 | 0 | ||
Diluted weighted average common shares outstanding | 10,938 | 10,413 | 10,736 | 10,340 | ||
Basic | $ (0.23) | $ (0.21) | $ (0.46) | $ (0.49) | ||
Diluted | $ (0.23) | $ (0.21) | $ (0.46) | $ (0.49) |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Potentially Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalent shares | 2,387 | 2,413 | 2,443 | 2,369 |
Stock Options, Restricted Stock and Performance Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock equivalent shares | 2,387 | 2,413 | 2,443 | 2,369 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents by Significant Investment Category (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||
Cash | $ 8,316 | $ 7,581 |
Cash and cash equivalents and Short term investments, Amortized cost | 8,416 | 7,881 |
Money Market Funds | Level 1 | ||
Cash And Cash Equivalents And Short Term Investments [Line Items] | ||
Cash equivalents | $ 100 | $ 300 |
Cash and Cash Equivalents (Addi
Cash and Cash Equivalents (Additional Information) (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted cash | $ 95,000 | $ 95,000 |
Restricted cash - short term | 40,000 | 40,000 |
Restricted cash - long term | $ 55,000 | $ 55,000 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory and Consigned Inventories, Current (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventories | ||
Total Inventory | $ 3,144 | $ 2,403 |
Inventories [Member] | ||
Inventories | ||
Raw materials | 487 | 661 |
Finished good | 2,657 | 1,742 |
Total Inventory | 3,144 | 2,403 |
Consigned inventories [Member] | ||
Inventories | ||
Raw materials | 459 | 558 |
Finished good | 1,508 | 598 |
Total Inventory | $ 1,967 | $ 1,156 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | $ 100 | $ 200 | $ 284 | $ 342 |
Minimum | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 3 years | 3 years | ||
Maximum | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 10 years | 10 years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 7,417 | $ 7,557 |
Less accumulated depreciation | (5,197) | (5,050) |
Property and equipment, net | 2,220 | 2,507 |
Manufacturing and Testing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 5,507 | 5,371 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 848 | 848 |
Computers and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 550 | 811 |
Furniture, Fixtures, and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 427 | 427 |
Vehicles | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 55 | 55 |
Construction in Process | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 30 | $ 45 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 20,095 | $ 20,095 |
Accumulated amortization | 13,344 | 11,861 |
Total | $ 6,751 | $ 8,234 |
Market related intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (in years) | 5 years | 5 years |
Gross carrying amount | $ 1,820 | $ 1,820 |
Accumulated amortization | 1,304 | 1,135 |
Total | $ 516 | $ 685 |
Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (in years) | 7 years | 7 years |
Gross carrying amount | $ 13,780 | $ 13,780 |
Accumulated amortization | 10,130 | 8,993 |
Total | $ 3,650 | $ 4,787 |
Developed technologies | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (in years) | 11 years | 11 years |
Gross carrying amount | $ 4,380 | $ 4,380 |
Accumulated amortization | 1,795 | 1,618 |
Total | $ 2,585 | $ 2,762 |
Covenants to non-compete | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (in years) | 2 years | 2 years |
Gross carrying amount | $ 115 | $ 115 |
Accumulated amortization | 115 | 115 |
Total | $ 0 | $ 0 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Estimated Annual Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2024 (remaining six months) | $ 1,484 | |
2025 | 2,958 | |
2026 | 557 | |
2027 | 356 | |
Thereafter | 1,396 | |
Total | $ 6,751 | $ 8,234 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||||
Amortization | $ 700 | $ 700 | $ 1,484 | $ 1,485 |
Goodwill impairment losses | 0 | 0 | ||
Impairment of intangible assets | $ 0 | $ 0 |
Accrued Liabilities and Other -
Accrued Liabilities and Other - Summary of Accrued Liabilities and Other (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued expenses | $ 1,150 | $ 1,031 |
VAT payable | 0 | 339 |
Accrued income taxes | 38 | 145 |
Advanced payments from contract manufacturer | 30 | 0 |
Contract liabilities | 0 | 17 |
Goods Received Not Invoiced | 883 | 185 |
Other current liabilities | 186 | 209 |
Accrued liabilities and other | $ 2,287 | $ 1,926 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Lease Expiration Date | Dec. 31, 2025 | |||
Operating lease option to extend | 5 years | |||
Operating lease weighted average discount rate percent | 4.40% | 4.40% | 3.80% | |
Operating lease weighted average remaining lease term | 1 year 4 months 24 days | 1 year 4 months 24 days | 1 year 9 months 18 days | |
Operating lease cost | $ 200,000 | $ 200,000 | ||
Short-term leases expense | $ 13,000 | $ 27,000 | ||
Maximum [Member] | ||||
Operating lease term of contract | 5 years | 5 years | ||
Minimum [Member] | ||||
Operating lease term of contract | 1 year | 1 year |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments on Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 (remaining six months) | $ 471 | |
2025 | 785 | |
2026 | 36 | |
Total minimum payments | 1,292 | |
Less imputed interest | (39) | |
Less unrealized translation gain | (2) | |
Total lease liabilities | 1,251 | |
Less short-term lease liabilities | (881) | $ (865) |
Long-term lease liability | $ 370 | $ 674 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 2.10% | (1.60%) | |
U.S. federal statutory tax rate | 21% | ||
Net deferred tax assets | $ 14.6 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Class Of Stock [Line Items] | ||||
Common Stock, Shares, Issued | 11,842,000 | 11,010,000 | ||
Proceeds from at-the-market common stock offering, net of offering costs | $ 3,006 | $ 0 | ||
ATM Offerings | ||||
Class Of Stock [Line Items] | ||||
Common Stock, Value, ATM Available for Issuance | $ 1,700 | $ 5,000 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares shares in Thousands | Jun. 30, 2024 | Dec. 31, 2022 | |
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1] | 4,292 | 4,083 |
Stock awards issued and outstanding | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1] | 1,041 | 817 |
Stock options issued and outstanding | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1] | 2,482 | 2,104 |
Authorized for grants under the 2016 Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1],[2] | 69 | 448 |
Authorized for grants under the 2016 Employee Stock Purchase Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1],[3] | 517 | 540 |
Authorized for Grants under the Inducement Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1],[4] | 183 | 174 |
[1] (1) The table above excludes 541,000 treasury stock shares as of June 30, 2024 and December 31, 2023 . (2) On January 1, 2024, the number of authorized shares in the 2016 Plan increased by 440,000 shares pursuant to the evergreen provisions of the 2016 Plan. (4) On January 1, 2024, the number of authorized shares in the 2016 Employee Stock Purchase Plan increased by 100,000 sh ares pursuant to the evergreen provisions of the 2016 Employee Stock Purchase Plan. (3) On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan. |
Stockholders' Equity- Schedule
Stockholders' Equity- Schedule of Common Stock Reserved for Future Issuance (Parenthetical) (Details) - shares | Jan. 01, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Feb. 05, 2021 |
Class Of Stock [Line Items] | ||||
Treasury stock, shares at cost | 541,000 | 541,000 | ||
2016 Equity Incentive Plan | ||||
Class Of Stock [Line Items] | ||||
Number of authorized shares increased | 440,000 | |||
2016 Employee Stock Purchase Plan | ||||
Class Of Stock [Line Items] | ||||
Number of authorized shares increased | 100,000 | |||
2021 Inducement Plan | ||||
Class Of Stock [Line Items] | ||||
Number of authorized shares | 300,000 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of the Company's ATM sales activity (Details) - ATM [Member] - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Subsidiary, Sale of Stock [Line Items] | ||
Shares issued | 505 | 629 |
Gross proceeds | $ 2,630 | $ 3,309 |
Net proceeds after offering costs | $ 2,518 | $ 3,006 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule Of Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 1,207 | $ 968 | $ 2,253 | $ 1,949 |
Cost of goods sold | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 65 | 29 | 123 | 44 |
Research and development | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 400 | 280 | 728 | 517 |
Sales and marketing | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | 75 | 115 | 155 | 276 |
General and administrative | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-based payment arrangement, expense | $ 667 | $ 544 | $ 1,247 | $ 1,112 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Outstanding Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of stock options, Beginning balance | 2,104 | |
Number of stock options, Granted | 408 | |
Number of stock options, Exercised | (8) | |
Number of stock options, Expired/Forfeited | (22) | |
Number of stock options, Ending balance | 2,482 | 2,104 |
Number of stock options, Vested and exercisable | 1,639 | |
Number of stock options, Vested and expected to vest | 2,482 | |
Weighted average exercise price, Beginning balance | $ 10.2 | |
Weighted average exercise price, Granted | 5.07 | |
Weighted average exercise price, Exercised | 3.1 | |
Weighted average exercise price, Expired/Forfeited | 8.28 | |
Weighted average exercise price, Ending balance | 9.4 | $ 10.2 |
Weighted average exercise price, Vested and exercisable | 11.12 | |
Weighted average exercise price, Vested and expected to vest | $ 9.4 | |
Weighted average remaining contractual term (in years) | 6 years 4 months 24 days | 6 years 2 months 12 days |
Weighted average remaining contractual term (in years), Vested and exercisable | 5 years | |
Intrinsic value of stock options exercised | $ 18 | |
Aggregate Intrinsic Value, Ending Balance | 1,552 | $ 329 |
Aggregate Intrinsic Value, Beginning Balance | $ 329 | |
Weighted average remaining contractual term (in years), Vested and expected to vest | 6 years 4 months 24 days | |
Aggregate intrinsic value vested and exercisable | $ 657 | |
Stock options expected to vest aggregate intrinsic value | $ 1,552 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2024 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock options vested and expected to vest aggregate intrinsic value | $ 1,552,000 | $ 1,552,000 | ||
Proceeds from stock issued during period | $ 76,000 | $ 137,000 | ||
Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Offering period of employee stock purchase plan | 6 months | |||
Limited percentage of annual contribution | 20% | 20% | ||
Percentage of discount and fair value of option | 15% | |||
Proceeds from stock issued during period | $ 0 | $ 100,000 | ||
Employee Stock Purchase Plan shares | 22,852 | |||
Employee Stock Purchase Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Purchase price percentage of market value of common stock | 85% | |||
Employee Stock Option | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average grant-date fair value of options granted | $ 2.82 | |||
Stock options vested and expected to vest aggregate intrinsic value | 1,600,000 | $ 1,600,000 | ||
Total unrecognized compensation cost, period for recognition | 2 years 6 months | |||
Total unrecognized compensation cost | 2,400,000 | $ 2,400,000 | ||
Restricted Stock Unit (RSU) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining contractual term | 2 years 9 months 18 days | |||
Total unrecognized compensation cost | 4,200,000 | $ 4,200,000 | ||
Performance stock unit (PSU) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average remaining contractual term | 9 months 18 days | |||
Total unrecognized compensation cost | $ 10,693 | $ 10,693 | ||
Description of performance stock unit | Service as well as market and performance conditions determine the number of PSUs that the holder will earn from 0% to 150% of the target number of shares. The percentage received is based on the Company common stock price targets over a three-year service period. Additionally, the Company must achieve or exceed 75% of the year to date revenue target measured at the end of the quarter in which the price target is achieved. |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Outstanding Restricted Stock Unit Activity (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock Unit (RSU) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock units, Beginning balance | shares | 706 |
Restricted stock units, Grants | shares | 484 |
Restricted stock units, Vested and released | shares | (196) |
Restricted stock units, Forfeited | shares | (64) |
Restricted stock units, Ending balance | shares | 930 |
Weighted average grant date fair value, Beginning balance | $ / shares | $ 6.97 |
Weighted average grant date fair value, Grants | $ / shares | 5.14 |
Weighted average grant date fair value, Vested and released | $ / shares | 7.83 |
Weighted average grant date fair value, Forfeited | $ / shares | 5.77 |
Weighted average grant date fair value, Ending balance | $ / shares | $ 5.92 |
Performance stock unit (PSU) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock units, Beginning balance | shares | 110 |
Restricted stock units, Grants | shares | 0 |
Restricted stock units, Vested and released | shares | 0 |
Restricted stock units, Forfeited | shares | 0 |
Restricted stock units, Ending balance | shares | 110 |
Weighted average grant date fair value, Beginning balance | $ / shares | $ 1.79 |
Weighted average grant date fair value, Grants | $ / shares | 0 |
Weighted average grant date fair value, Vested and released | $ / shares | 0 |
Weighted average grant date fair value, Forfeited | $ / shares | 0 |
Weighted average grant date fair value, Ending balance | $ / shares | $ 1.79 |
Stock Based Compensation - Comp
Stock Based Compensation - Company's share-settled obligation RSU grants (Details) - Restricted Stock Unit (RSU) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Grant date fair value | $ 70,900 | $ 0 | $ 195,400 | $ 949,200 |
RSU shares granted and vested | 14 | 0 | 45 | 187 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Commitment And Contingencies [Line Items] | ||
Warranty accrual expense | $ 0.1 | $ 0.1 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of liability recorded related to severance and exit costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Opening Balance | $ 0 | $ 50 |
Accrued to expense | 0 | 0 |
Payments | 0 | (50) |
Closing Balance | $ 0 | $ 0 |
Concentration - Additional Info
Concentration - Additional Information (Details) - Customer Concentration Risk - Major Customers | 6 Months Ended |
Jun. 30, 2024 | |
Net Revenue | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 10% |
Trade Accounts Receivable | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 10% |
Concentration - Schedule of Con
Concentration - Schedule of Concentration of Sales and Accounts Receivable (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Net Revenue | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 24% | 9% | 20% | 12% | |
Net Revenue | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 16% | 6% | 17% | 7% | |
Trade Accounts Receivable | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 27% | 17% | |||
Trade Accounts Receivable | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14% | 14% |
Concentration - Schedule of C_2
Concentration - Schedule of Concentration of Fixed Assets by Geographical Regions (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,220 | $ 2,507 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 2,038 | 2,295 |
Asia Pacific (APAC) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 71 | 86 |
Europe, Middle East and Africa (EMEA) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 111 | $ 126 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregated Revenue By Market Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 15,184 | $ 15,830 | $ 29,415 | $ 32,274 |
North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 9,337 | 9,438 | 19,361 | 19,606 |
China Including Hong Kong and Taiwan [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 5,397 | 6,059 | 8,700 | 12,028 |
Other Countries [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 450 | 333 | 1,354 | 640 |
Transferred At Point In Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 14,507 | 14,795 | 28,032 | 30,639 |
Transferred Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 677 | 1,035 | 1,383 | 1,635 |
Enterprise | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 8,615 | 7,366 | 17,494 | 15,803 |
Consumer | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 4,827 | 6,189 | 8,338 | 11,321 |
Automotive | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 1,742 | $ 2,275 | $ 3,583 | $ 5,150 |
Revenues - Additional Informati
Revenues - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 15,184,000 | $ 15,830,000 | $ 29,415,000 | $ 32,274,000 | |
Contract with Customer, Right to Recover Product | 100,000 | 100,000 | $ 100,000 | ||
Contract with Customer, Liability, Current | 30,200 | 30,200 | $ 17,000 | ||
Recognized revenue remaining performance obligations | 200,000 | 200,000 | |||
United States | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 9,300,000 | $ 9,400,000 | $ 19,300,000 | $ 19,500,000 |