Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 26, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AIRG | ||
Entity Registrant Name | AIRGAIN INC | ||
Entity Central Index Key | 1,272,842 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 9,641,521 | ||
Entity Public Float | $ 94.7 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 15,026,068 | $ 45,161,403 |
Short term investments | 21,287,064 | |
Trade accounts receivable | 8,418,132 | 5,154,996 |
Inventory | 741,557 | 146,815 |
Prepaid expenses and other current assets | 609,786 | 349,550 |
Total current assets | 46,082,607 | 50,812,764 |
Property and equipment, net | 1,036,860 | 807,086 |
Goodwill | 3,700,447 | 1,249,956 |
Customer relationships, net | 4,075,918 | 2,822,918 |
Intangible assets, net | 1,052,333 | 286,719 |
Other assets | 349,743 | 84,060 |
Total assets | 56,297,908 | 56,063,503 |
Current liabilities: | ||
Accounts payable | 3,969,083 | 3,949,005 |
Accrued bonus | 2,224,517 | 1,748,551 |
Accrued liabilities | 1,121,833 | 1,072,242 |
Deferred purchase price | 1,000,000 | 1,000,000 |
Current portion of long-term notes payable | 1,333,333 | 1,388,563 |
Current portion of deferred rent obligation under operating lease | 81,332 | 81,332 |
Total current liabilities | 9,730,098 | 9,239,693 |
Long-term notes payable | 1,333,333 | |
Deferred tax liability | 7,971 | 6,166 |
Deferred rent obligation under operating lease | 334,860 | 451,909 |
Total liabilities | 10,072,929 | 11,031,101 |
Stockholders’ equity: | ||
Common shares, par value $0.0001, 200,000,000 shares authorized at December 31, 2017 and December 31, 2016; 9,616,992 and 9,275,062 shares issued at December 31, 2017 and December 31, 2016, respectively; 9,481,992 and 9,275,062 shares outstanding at December 31, 2017 and December 31, 2016, respectively | 961 | 928 |
Additional paid in capital | 89,907,766 | 88,582,470 |
Treasury stock, at cost: 135,000 shares and no shares at December 31, 2017 and December 31, 2016, respectively | (1,257,100) | |
Accumulated other comprehensive loss | (16,907) | |
Accumulated deficit | (42,409,741) | (43,550,996) |
Total stockholders’ equity | 46,224,979 | 45,032,402 |
Commitments and contingencies (note 12) | ||
Total liabilities and stockholders’ equity | $ 56,297,908 | $ 56,063,503 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
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, shares issued | 9,616,992 | 9,275,062 |
Common stock, shares outstanding | 9,481,992 | 9,275,062 |
Treasury stock, shares at cost | 135,000 | 0 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Sales | $ 49,521,171 | $ 43,433,867 | $ 27,793,073 |
Cost of goods sold | 26,218,965 | 24,156,792 | 16,148,163 |
Gross profit | 23,302,206 | 19,277,075 | 11,644,910 |
Operating expenses: | |||
Research and development | 7,319,575 | 5,622,132 | 4,257,400 |
Sales and marketing | 7,012,829 | 5,670,625 | 4,035,591 |
General and administrative | 8,000,602 | 4,532,151 | 3,453,288 |
IPO costs | 229,332 | ||
Total operating expenses | 22,333,006 | 15,824,908 | 11,975,611 |
Income (loss) from operations | 969,200 | 3,452,167 | (330,701) |
Other (income) expense: | |||
Interest income | (296,451) | (7,803) | |
Interest expense | 98,711 | 178,371 | 39,489 |
Fair market value adjustment - warrants | (460,289) | (85,325) | |
Exercise and expiration of warrants | (15,145) | ||
Total other (income) expense | (197,740) | (289,721) | (60,981) |
Income (loss) before income taxes | 1,166,940 | 3,741,888 | (269,720) |
Provision for income taxes | 25,685 | 8,181 | 622 |
Net income (loss) | 1,141,255 | 3,733,707 | (270,342) |
Accretion of dividends on preferred convertible stock | (1,537,021) | (2,444,954) | |
Net income (loss) attributable to common stockholders | $ 1,141,255 | $ 2,196,686 | $ (2,715,296) |
Net income (loss) per share: | |||
Basic | $ 0.12 | $ 0.65 | $ (4.17) |
Diluted | $ 0.11 | $ 0.40 | $ (4.30) |
Weighted average shares used in calculating income (loss) per share | |||
Basic | 9,485,271 | 3,373,316 | 651,593 |
Diluted | 10,361,373 | 4,667,503 | 651,593 |
Statement of Comprehensive Inco
Statement of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,141,255 | $ 3,733,707 | $ (270,342) |
Unrealized loss on available-for-sale securities | (16,907) | ||
Total comprehensive income (loss) | $ 1,124,348 | $ 3,733,707 | $ (270,342) |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Deficit) - USD ($) | Total | Preferred Convertible Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Note to Employee | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2014 | $ (37,670,138) | $ 5,968,549 | $ 1,017,003 | $ (266,282) | $ (44,389,408) | |||
Beginning balance, shares at Dec. 31, 2014 | 6,244,174 | 625,282 | ||||||
Stock-based compensation | 341,554 | $ 341,554 | ||||||
Shares issued pursuant to stock awards, shares | 16,300 | |||||||
Exercise of stock options | $ 77,372 | $ 77,372 | ||||||
Exercise of stock options, shares | 24,260 | 24,260 | ||||||
Change in note to employee | $ 266,282 | $ 266,282 | ||||||
Effect of accretion to redemption value | (2,157,550) | (341,554) | (1,815,996) | |||||
Net income (loss) | (270,342) | (270,342) | ||||||
Ending balance at Dec. 31, 2015 | (39,412,822) | $ 5,968,549 | $ 1,094,375 | (46,475,746) | ||||
Ending balance, shares at Dec. 31, 2015 | 6,244,174 | 665,842 | ||||||
Stock-based compensation | 298,535 | 298,535 | ||||||
Conversion of warrants | 249,215 | 249,215 | ||||||
Conversion of warrants, shares | 127,143 | |||||||
Exercise of stock options | $ 137,403 | $ 112,101 | 25,302 | |||||
Exercise of stock options, shares | 58,155 | 58,155 | ||||||
Effect of accretion to redemption value | $ (1,356,707) | (547,750) | (808,957) | |||||
Change in par value from no par value to $0.0001 | $ (1,206,391) | 1,206,391 | ||||||
Issuance of common stock upon initial public offering, net of issuance costs | 10,816,978 | $ 170 | 10,816,808 | |||||
Issuance of common stock upon initial public offering, net of issuance costs, shares | 1,700,100 | |||||||
Issuance of warrants to underwriters | 126,218 | 126,218 | ||||||
Conversion of preferred redeemable convertible stock to common stock upon initial public offering | 44,463,613 | $ 378 | 44,463,235 | |||||
Conversion of preferred redeemable convertible stock to common stock upon initial public offering, shares | 3,778,753 | |||||||
Conversion of preferred convertible stock to common stock upon initial public offering | $ (5,968,549) | $ 126 | 5,968,423 | |||||
Conversion of preferred convertible stock to common stock upon initial public offering, shares | (6,244,174) | 1,259,187 | ||||||
Issuance of common stock upon secondary public offering, net of issuance costs | 25,976,262 | $ 169 | 25,976,093 | |||||
Issuance of common stock upon secondary public offering, net of issuance costs, shares | 1,685,882 | |||||||
Net income (loss) | 3,733,707 | 3,733,707 | ||||||
Ending balance at Dec. 31, 2016 | 45,032,402 | $ 928 | 88,582,470 | (43,550,996) | ||||
Ending balance, shares at Dec. 31, 2016 | 9,275,062 | |||||||
Stock-based compensation | 736,066 | 736,066 | ||||||
Shares issued pursuant to stock awards | $ 5 | (5) | ||||||
Shares issued pursuant to stock awards, shares | 57,475 | |||||||
Exercise of stock options | $ 588,482 | $ 28 | 588,454 | |||||
Exercise of stock options, shares | 284,455 | 284,455 | ||||||
Common stock repurchases | $ (1,257,100) | $ (1,257,100) | ||||||
Common stock repurchases, shares | (135,000) | |||||||
Reversal of costs related to secondary offering | 781 | 781 | ||||||
Unrealized loss on available-for-sale securities | (16,907) | $ (16,907) | ||||||
Net income (loss) | 1,141,255 | 1,141,255 | ||||||
Ending balance at Dec. 31, 2017 | $ 46,224,979 | $ 961 | $ 89,907,766 | $ (1,257,100) | $ (42,409,741) | $ (16,907) | ||
Ending balance, shares at Dec. 31, 2017 | 9,481,992 |
Statements of Stockholders' Eq7
Statements of Stockholders' Equity (Deficit) (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement Of Stockholders Equity [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,141,255 | $ 3,733,707 | $ (270,342) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation | 436,247 | 495,347 | 458,734 |
Amortization | 581,386 | 373,350 | 14,013 |
Fair market value adjustment - warrants | (460,289) | (85,325) | |
Exercise and expiration of warrants | (15,145) | ||
Amortization of discounts on investments, net | (91,485) | ||
Stock-based compensation | 736,066 | 298,535 | 341,554 |
Forgiveness of note to employee | 266,282 | ||
Deferred tax liability | 1,805 | 6,166 | |
Changes in operating assets and liabilities: | |||
Trade accounts receivable | (2,678,746) | (1,422,998) | 210,140 |
Inventory | (161,972) | (27,082) | (119,733) |
Prepaid expenses and other assets | (525,919) | (120,567) | (36,265) |
Accounts payable | (101,801) | 1,075,534 | 298,918 |
Accrued bonus | 475,966 | 413,051 | 516,409 |
Accrued liabilities | 49,591 | 411,255 | 361,067 |
Deferred obligation under operating lease | (117,049) | (106,732) | (91,482) |
Net cash provided by (used in) operating activities | (254,656) | 4,669,277 | 1,848,825 |
Cash flows from investing activities: | |||
Purchases of available-for-sale securities | (21,962,486) | ||
Maturities of available-for-sale securities | 750,000 | ||
Cash paid for acquisition | (6,348,730) | (4,000,000) | |
Purchases of property and equipment | (263,063) | (275,649) | (132,854) |
Net cash used in investing activities | (27,824,279) | (275,649) | (4,132,854) |
Cash flows from financing activities: | |||
Proceeds from notes payable | 4,000,000 | ||
Repayment of notes payable | (1,388,563) | (1,624,999) | (273,175) |
Proceeds from initial public offering and issuance of warrants to underwriters | 13,600,800 | ||
Costs related to initial public offering | 781 | (2,657,604) | |
Proceeds from secondary public offering | 26,797,094 | ||
Costs related to secondary public offering | (820,832) | ||
Proceeds from exercise of warrants | 225,000 | ||
Common stock repurchases | (1,257,100) | ||
Proceeds from exercise of stock options | 588,482 | 137,403 | 77,372 |
Net cash provided by (used in) financing activities | (2,056,400) | 35,431,862 | 4,029,197 |
Net increase (decrease) in cash and cash equivalents | (30,135,335) | 39,825,490 | 1,745,168 |
Cash and cash equivalents, beginning of period | 45,161,403 | 5,335,913 | 3,590,745 |
Cash and cash equivalents, end of period | 15,026,068 | 45,161,403 | 5,335,913 |
Supplemental disclosure of cash flow information | |||
Interest paid | 98,711 | 177,460 | 39,489 |
Taxes paid | $ 102,819 | 6,171 | |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accretion of Series E, F, and G preferred redeemable convertible stock to redemption amount | 1,356,707 | $ 2,157,549 | |
Conversion of warrants | 249,215 | ||
Conversion of preferred stock into common stock | $ 50,432,162 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (1) Significant Accounting Policies (a) Description of Business Airgain, Inc. (the Company) was incorporated in the State of California on March 20, 1995 and reincorporated in the State of Delaware on August 15, 2016. The Company is a leading provider of advanced antenna technologies used to enable high performance wireless networking across a broad range of devices and markets, including connected home, enterprise, automotive, and Internet of Things, (IoT). The Company designs, develops, and engineers its antenna products for original equipment and design manufacturers worldwide. The Company’s headquarters is in San Diego, California with office space and research facilities in San Diego, California, Rancho Santa Fe, California, Poway, California, Melbourne, Florida, Taipei, Taiwan, Gyeonggi-do, Korea, Shenzhen and Jiangsu, China and Cambridgeshire, United Kingdom and a design and manufacturing plant/facility in Scottsdale, Arizona. (b) Basis of Presentation The financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). (c) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ( d ) 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 Scottsdale, Arizona. The Company operates in one segment related to the sale of antenna products. The Company’s chief operating decision-maker is its chief executive officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a single operating segment. ( e ) Cash Equivalents and Short-Term Investments Cash equivalents are comprised of short-term, highly liquid investments with maturities of 90 days or less at the date of purchase. Short-term investments consist predominantly of commercial paper, corporate debt securities, U.S. Treasury securities and asset backed securities. The Company classifies short-term investments based on the facts and circumstances surrounding the investments at the time of purchase and evaluates such classification as of each balance sheet date. All short-term investments are classified as available-for-sale securities as of December 31, 2017 and are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. Realized gains and losses are included in other (income) expense, in the statement of operations. The Company evaluates its investments to determine whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before recovery of their cost basis. ( f ) Trade Accounts Receivable Trade accounts receivable is adjusted for all known uncollectible accounts. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. Accounts are written off once all collection efforts have been exhausted. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful. The allowance for doubtful accounts was $0 as of December 31, 2017 and December 31, 2016. ( g ) Inventory The majority 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 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. 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 balance sheet. With the acquisition of substantially all of the assets of Antenna Plus, LLC (“Antenna Plus”), in April 2017, the Company began manufacturing products at its Scottsdale, Arizona and Shullsburg, Wisconsin locations. In July 2017, the Company relocated all of its product manufacturing operations in Shullsburg, Wisconsin to the Scottsdale, Arizona facility. See Note 4 for additional information relating to the Company’s acquisition of the Antenna Plus assets. Inventory is stated at the lower of cost or market. For items manufactured by the Company, 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. As of December 31, 2017, the Company’s inventories consist primarily of raw materials. Provisions for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience. As of December 31, 2017, there is no provision for excess and obsolete inventories. ( h ) 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 years. The estimated useful lives for leasehold improvements is determined as either the estimated useful life of the asset or the lease term, whichever is shorter. Amortization of assets that are recorded under capital leases are included in depreciation expense. Maintenance and repairs 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 sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included as an operating expense. ( i ) Goodwill Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. The change in the carrying value of goodwill during the year ended December 31, 2017, was due to an acquisition during 2017. See Note 5. The Company reviews goodwill for impairment annually on December 1st and whenever events or changes in circumstances indicate that goodwill may be impaired. The Company completed its annual assessment for goodwill impairment in December 2017 and determined that goodwill is not impaired as of December 31, 2017. ( j ) Long-lived Assets The Company’s identifiable intangible assets are comprised of acquired developed technologies, customer relationships, tradenames and non-compete agreements. The cost of the identifiable intangible assets with finite lives is amortized on a straight-line basis over the assets’ respective estimated useful lives. The Company periodically re-evaluates the original assumptions and rationale utilized in the establishment of the carrying value and estimated lives of long-lived assets and finite-lived intangible assets. Long- lived assets and finite-lived intangibles are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is considered to be impaired, the impairment recognized is equal to the amount by which the carrying value of the asset exceeds its fair value. ( k ) Revenue Recognition The Company generates revenue primarily from the sale of its antenna products. The Company recognizes revenue when products are shipped and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is reasonably assured, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Title and risk of loss transfer to customers either when the products are shipped to or received by the customer, based on the terms of the specific agreement with the customer. A portion of the Company’s sales are made through distributors under agreements allowing for pricing credits and/or rights of return under certain circumstances. To date, pricing credits and returns under these provisions have been insignificant; accordingly, the Company recognizes revenue upon shipment to the distributor and the Company’s allowance for sales returns and pricing credits was insignificant for the years ended December 31, 2017, 2016 and 2015. ( l ) Shipping and Transportation Costs Shipping and other transportation costs are expensed as incurred. Shipping and other transportation costs were $462,297, $321,093 and $221,974 for the years ended December 31, 2017, 2016 and 2015, respectively. These costs are included in general and administrative expenses in the accompanying statements of operations. ( m ) Research and Development Costs Costs incurred in connection with research and development are expensed as incurred. ( n ) 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 it is determined 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. ( o ) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity classified awards are measured at the grant-date fair value of the award. The Company estimates the grant-date fair value using the Black-Scholes-Merton option-pricing model. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized for all stock-based compensation. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Stock-based compensation expense for the years ended December 31, 2017, 2016 and 2015 was $736,066, $298,535 and $341,554, respectively. ( p ) Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, and accrued liabilities 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. The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2, or Level 3 for the years ended December 31, 2017 and 2016. The following table provides a rollforward of the Company’s Level 3 fair value measurements during the years ended December 31, 2017 and 2016: As of December 31, 2017 2016 Beginning balance $ — $ 709,504 Change in fair value of warrant liability — (460,289 ) Conversion of warrants — (249,215 ) Ending balance $ — $ — ( q ) 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation of the preferred redeemable convertible stock warrant liability, stock- based compensation and intangible assets. ( r ) Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Accumulated other comprehensive loss on the balance sheet at December 31, 2017 includes unrealized gains and losses on the Company’s available-for-sale securities. ( s ) Net Income or Loss Per Share Basic net income or loss per share is calculated by dividing net income or loss available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted net income or loss per share is calculated by dividing net income or 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. Preferred dividends are deducted from net income or loss in arriving at net income or loss attributable to common stockholders. The Company calculates diluted earnings or loss per common share using the treasury stock method and the as-if-converted method, as applicable. The following table presents the computation of net income or loss per share: For the Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 1,141,255 $ 3,733,707 $ (270,342 ) Accretion of dividends on preferred stock — (1,537,021 ) (2,444,954 ) Net income attributable to common stockholders - basic $ 1,141,255 $ 2,196,686 $ (2,715,296 ) Accretion of dividends on preferred stock — 125,205 — Adjustment for change in fair value of warrant liability — (460,289 ) (85,325 ) Net income (loss) attributable to common stockholders - diluted $ 1,141,255 $ 1,861,602 $ (2,800,621 ) Denominator: Weighted average common shares outstanding Basic 9,485,271 3,373,316 651,593 Diluted 10,361,373 4,667,503 651,593 Net income (loss) per share: Basic $ 0.12 $ 0.65 $ (4.17 ) Diluted $ 0.11 $ 0.40 $ (4.30 ) Diluted weighted average common shares outstanding for the year ended December 31, 2017 includes 1,532 warrants and 874,571 options outstanding. Diluted weighted average common shares outstanding for the year ended December 31, 2016 includes 577,529 options outstanding and 716,658 preferred shares. Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares): For the Year Ended December 31, 2017 2016 2015 Preferred redeemable convertible stock, including accumulated dividends — 2,406,894 4,891,205 Employee stock options 513,869 — 756,692 Warrants outstanding — 51,003 — Series G preferred stock warrants outstanding — — 788,338 Total 513,869 2,457,897 6,436,235 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | ( 2 ) Cash, Cash Equivalents and Short-Term Investments The following table shows the Company’s cash and cash equivalents and short-term investments by significant investment category as of December 31, 2017: December 31, 2017 Amortized Cost Gross Unrealized Losses Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 3,040,696 $ — $ 3,040,696 $ 3,040,696 $ — Level 1 (1): Money market funds 8,234,751 — 8,234,751 8,234,751 — U.S. treasury securities 2,490,799 (5,540 ) 2,485,259 — 2,485,259 Subtotal 10,725,550 (5,540 ) 10,720,010 8,234,751 2,485,259 Level 2 (2): Commercial paper 9,716,093 — 9,716,093 — 9,716,093 Corporate debt obligations 6,829,191 (9,414 ) 6,819,777 — 6,819,777 Repurchase agreements 3,000,233 — 3,000,233 3,000,233 — Asset-backed securities 3,018,276 (1,953 ) 3,016,323 750,388 2,265,935 Subtotal 22,563,793 (11,367 ) 22,552,426 3,750,621 18,801,805 Total $ 36,330,039 $ (16,907 ) $ 36,313,132 $ 15,026,068 $ 21,287,064 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. The Company’s investments were primarily valued based upon one or more valuations reported by its investment accounting and reporting service provider. The investment service provider values the securities using a hierarchical security pricing models that relies primarily on valuations provided by a third-party pricing vendor. Such valuations may be based on trade prices in active markets for identical assets or liabilities (Level 1 inputs) or valuation models using inputs that are observable either directly or indirectly (Level 2 inputs), such as quoted prices for similar assets or liabilities, yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. The Company performs certain procedures to corroborate the fair value of its holdings, including comparing valuations obtained from its investment service provider with other pricing sources to validate the reasonableness of the valuations. The Company typically invests in highly-rated securities, and its investment policy limits the amount of credit exposure to any one issuer. The policy requires investments in fixed income instruments denominated and payable in U.S. dollars only and requires investments to be investment grade, with a primary objective of minimizing the potential risk of principal loss. The following table presents the Company’s short-term investments with unrealized losses by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2017: Less Than 12 Months Description of Securities Estimated Fair Value Unrealized Losses December 31, 2017 U.S. treasury securities $ 2,485,259 $ (5,540 ) Corporate debt obligations 6,819,777 (9,414 ) Asset-backed securities 2,265,935 (1,953 ) Total $ 11,570,971 $ (16,907 ) The Company considers the declines in market value of its short-term investments to be temporary in nature. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s cost basis. As of December 31, 2017, the Company does not consider any of its investments to be other-than temporarily impaired. Contractual maturities of short-term investments as of December 31, 2017 are as follows: Estimated Fair Value Due within one year $ 21,287,064 Total $ 21,287,064 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (3) Property and Equipment Depreciation and amortization of property and equipment is calculated on the straight-line method based on estimated useful lives of six to ten years for tenant improvements and three to five years for all other property and equipment. Property and equipment consist of the following: As of December 31, 2017 2016 Lab equipment $ 1,914,911 $ 1,314,060 Computer equipment 169,366 165,415 Computer software 299,227 299,227 Furniture and fixtures 202,218 184,233 Tenant improvements 763,898 763,898 Other office equipment 63,825 20,591 3,413,445 2,747,424 Less accumulated depreciation (2,376,585 ) (1,940,338 ) $ 1,036,860 $ 807,086 Depreciation expense was $436,247, $495,347 and $458,734 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | (4) Acquisitions Antenna Plus On April 27, 2017, the Company completed the acquisition of substantially all of the assets of Antenna Plus. Antenna Plus is a supplier of antenna-based solutions for mobile and automotive fleet applications for government, public safety, and industrial Internet of Things (IOT) markets. The acquisition provides leverage for the Company’s existing products into several new markets, including the fast-growing automotive fleet and industrial IOT space. The transaction was completed pursuant to an Asset Purchase Agreement with MCA Financial Group, Ltd., acting as the court-appointed receiver for Antenna Plus. Upon the closing of the transaction, the Company paid to Antenna Plus total consideration of approximately $6.3 million in cash, net of post-closing working capital adjustments. In addition, the Company assumed certain contracts and other liabilities of Antenna Plus, as expressly set forth in the Asset Purchase Agreement. The following table shows the allocation of the purchase price for Antenna Plus to the acquired identifiable assets, liabilities assumed and goodwill: Consideration: Cash $ 6,383,500 Working capital adjustments (34,770 ) Fair value of total consideration transferred $ 6,348,730 Recognized amounts of identifiable assets acquired and liabilities assumed: Accounts receivable $ 584,390 Inventory 432,770 Fixed assets 402,958 Intangible assets 2,600,000 Current liabilities (121,879 ) Total identifiable net assets acquired 3,898,239 Goodwill 2,450,491 Total $ 6,348,730 Goodwill was primarily attributable to the anticipated synergies and economies of scale expected from the operations of the combined business. The synergies include certain cost savings, operating efficiencies, and other strategic benefits projected to be achieved as a result of the acquisition. Goodwill is expected to be deductible for tax purposes. Revenue associated with the acquired Antenna Plus assets since the date of acquisition was $5.2 million for the year ended December 31, 2017. Cost of goods sold associated with the acquired Antenna Plus assets since the date of acquisition was $2.3 million for the year ended December 31, 2017. Net income associated with the acquired Antenna Plus assets since the date of acquisition was net income of $0.4 million. Unaudited Pro Forma Information The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Antenna Plus had been acquired as of the beginning of the fiscal year 2015. The pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2015 or of the results of future operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below: For the Year Ended December 31, 2017 2016 2015 Pro forma sales $ 51,789,215 $ 50,940,773 $ 34,112,518 Pro forma income from operations $ 1,539,538 $ 4,436,281 $ 458,075 Pro forma net income $ 1,711,598 $ 4,717,872 $ 518,387 Skycross On December 17, 2015, the Company executed and entered into an asset purchase agreement for certain North American assets of Skycross, a manufacturer of advanced antenna and radio- frequency solutions. As a result of the acquisition, the Company expects to benefit from the acquisition primarily through the addition of new customers. The goodwill of $1,249,956 arising from the acquisition relates to expected synergies and cost reductions through economies of scale. The amount of goodwill expected to be deductible for tax purposes is $1,249,956. In addition to the $4.0 million paid up front, the purchase price also includes a contingent consideration arrangement. The $1.0 million of deferred consideration is payable upon the later of (i) the expiration of the Transition Services Agreement between the Company and Skycross which defines transition services to be provided by Skycross to the Company, and (ii) the date on which the Company has received copies of third party approvals with respect to each customer and program that was purchased. The potential undiscounted amount of all future payments that could be required to be paid under the contingent consideration arrangement is between $0 and $1.0 million. The fair value of the contingent consideration was estimated by applying the income approach. The income approach is based on estimating the value of the present worth of future net cash flow. The following table summarizes the consideration paid and the estimated fair value of the assets acquired and liabilities assumed at the acquisition date. Consideration: Cash $ 4,000,000 Contingent consideration arrangement 1,000,000 Fair value of total consideration transferred $ 5,000,000 Recognized amounts of identifiable assets acquired and liabilities assumed: Accounts receivable $ 429,267 Intangible assets 3,497,000 Current liabilities (176,223 ) Total identifiable net assets acquired 3,750,044 Goodwill 1,249,956 Total $ 5,000,000 The fair value of accounts receivable is $429,267. The contingent consideration of $1.0 million is included in the deferred purchase price balance on the accompanying balance sheets as of December 31, 2017 and 2016. Revenue associated with the acquired Skycross assets since the date of acquisition was $5.2 million and $5.0 million for the year ended December 31, 2017 and 2016, respectively. Cost of goods sold associated with the acquired Skycross assets since the date of acquisition was $1.7 million and $1.7 million for the year ended December 31, 2017 and 2016, respectively. The acquired assets were not managed as a discrete business by the previous owner. Accordingly, the historical financial information for the assets acquired was impracticable to obtain, and inclusion of pro forma information would require the Company to make estimates and assumptions regarding these assets’ historical financial results that may not be reasonable or accurate. As a result, pro forma results are not presented. It is not practicable to determine net income included in the Company’s operating results relating to Skycross assets since the date of acquisition because the assets have been fully integrated into the Company’s operations, and the operating results of the Skycross assets can therefore not be separately identified. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | ( 5 ) Goodwill Changes to the Company’s goodwill balance during the year ended December 31, 2017 and 2016 are as follows: Balance at December 31, 2015 $ 1,249,956 Current period adjustments — Balance at December 31, 2016 $ 1,249,956 Acquisition of Antenna Plus Assets 2,450,491 Balance at December 31, 2017 $ 3,700,447 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | ( 6 ) Intangible Assets The following is a summary of the Company’s acquired intangible assets: As of December 31, 2017 Weighted Average Amortization Period (years) Gross Carrying Amount Accumulated Amortization Intangibles, Net Customer relationships 10 $ 4,830,000 $ 754,082 $ 4,075,918 Developed technologies 9 1,080,000 142,477 937,523 Tradename 3 120,000 26,667 93,333 Non-compete agreement 3 67,000 45,523 21,477 Total intangible assets, net 10 $ 6,097,000 $ 968,749 $ 5,128,251 As of December 31, 2016 Weighted Average Amortization Period (years) Gross Carrying Amount Accumulated Amortization Intangibles, Net Customer relationships 10 $ 3,150,000 $ 327,082 $ 2,822,918 Developed technologies 5 280,000 37,091 242,909 Non-compete agreement 3 67,000 23,190 43,810 Total intangible assets, net 10 $ 3,497,000 $ 387,363 $ 3,109,637 In September 2016, the Company re-evaluated the useful life of the developed technologies intangible asset and determined the useful life should be reduced from 10 years to 5 years. The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a results of acquisitions, divestitures, asset impairments, among other factors. Estimated Future Amortization 2018 $ 676,529 2019 655,052 2020 627,667 2021 598,420 2022 563,000 Thereafter 2,007,583 Total $ 5,128,251 Amortization expense was $581,386, $373,350 and $14,013 for the years ended December 31, 2017, 2016 and 2015, respectively. |
Long-term Notes Payable (includ
Long-term Notes Payable (including current portion) and Line of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Long Term Debt [Abstract] | |
Long-term Notes Payable (including current portion) and Line of Credit | ( 7 ) Long-term Notes Payable (including current portion) and Line of Credit In June 2012, the Company amended its line of credit with Silicon Valley Bank. The amended revolving line of credit facility allows for an advance up to $3.0 million. The facility bears an interest rate of prime (4.50% as of December 31, 2017) plus 1.25%. The revolving credit facility is available as long as the Company maintains a liquidity ratio of cash and cash equivalents plus accounts receivable to outstanding debt under the facility of 1.25 to 1.00; otherwise, the facility reverts to its previous eligible receivables financing arrangement. The amended facility matures in April 2018. In January 2018, the Company amended and restated the revolving line of credit to increase the amount from $3.0 million to $10.0 million and extend the maturity date to January 31, 2020. See Note 17 for additional details. The bank has a first security interest in all the Company’s assets excluding intellectual property, for which the bank has received a negative pledge. There was no balance owed on the line of credit as of December 31, 2017 and 2016. In December 2013, the Company further amended its revolving line of credit under the amended and restated loan and security with Silicon Valley Bank to include a growth capital term loan of up to $750,000. The growth capital term loan required interest only payments through June 30, 2014 at which point it was to be repaid in 32 equal monthly installments of interest and principal. The growth capital term loan matured on February 1, 2017, at which time $55,230 in principal and accrued interest was paid. The growth capital term loan interest rate was 6.5%. As of December 31, 2017 there was no balance owed under this loan. In December 2015, the Company further amended its amended and restated loan and security agreement with Silicon Valley Bank to include a term loan in the amount of $4.0 million. The loan requires 36 monthly installments of interest and principal. The loan matures on December 1, 2018. Effective September 2017, the Company further amended its amended and restated loan and security agreement with Silicon Valley Bank to update the financial covenants. The amended and restated loan and security agreement requires the Company to maintain, at all times, measured as of the last day of each month (unless otherwise specified) either (i) a minimum cash balance of unrestricted cash at Silicon Valley Bank or its affiliate of not less than $25.0 million or (ii) a liquidity ratio of 1.25 to 1.00 and a minimum EBITDA, measured as of the last day of each fiscal quarter for the previous six month period (for December 31, 2017 the minimum EBITDA is 750,000). The interest rate is fixed at 5%. As of December 31, 2017 and 2016, $1,333,333 and $2,666,666 was outstanding under this loan, respectively. The remaining principal payments on the $4.0 million term loan subsequent to December 31, 2017 are as follows: Year ending: 2018 $ 1,333,333 $ 1,333,333 The Company was in compliance with all financial term loan and revolving line of credit financial covenants as of December 31, 2017 and 2016. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Treasury Stock | (8) Treasury Stock In August 2017, the Company’s Board of Directors approved a share repurchase program pursuant to which the Company may purchase up to $7 million of shares of its common stock over the twelve month period following the establishment of the program. The repurchases under the new share repurchase program are made from time to time in the open market or in privately negotiated transactions and are funded from the Company’s working capital. Repurchases will be made in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, subject to market conditions, available liquidity, cash flow, applicable legal requirements and other factors. All shares of common stock repurchased under the Company’s new share repurchase program will be returned to the status of authorized but unissued shares of common stock. As of December 31, 2017, the Company repurchased 135,000 shares of common stock under the repurchase program. These shares were repurchased at an average price per share of $9.40, for a total cost of $1,257,100.00. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 9 ) Income Taxes (a) Income Taxes The December 31, 2017, 2016 and 2015 income tax provision is as follows: For the Year Ended December 31, 2017 2016 2015 Current: U.S. federal $ 21,272 $ — $ — State and local 2,608 2,015 622 Total current provision 23,880 2,015 622 Deferred: U.S. federal 483 6,124 — State and local 1,322 42 — Total deferred provision 1,805 6,166 — Total tax provision $ 25,685 $ 8,181 $ 622 (b) Tax Rate Reconciliation A reconciliation of the total income tax provision tax rate to the statutory federal income tax rate of 34% for the years ended December 31, 2017, 2016 and 2015 is as follows: For the Year Ended December 31, 2017 2016 2015 Income taxes at statutory rates $ 396,760 $ 1,272,242 $ (91,705 ) State income tax, net of federal benefit 3,910 2,054 411 Permanent items (5,060 ) 68,944 32,530 Meals and entertainment 74,755 54,375 40,796 Equity based compensation (645,512 ) 48,385 98,637 Warrant liability — (156,498 ) (34,160 ) Corporate tax rate change - impact on deferred income taxes 2,768,458 — — Research and development credit 206,801 (141,494 ) 628,573 Federal NOL adjustment (386,441 ) (206,133 ) — Federal return to provision 53,265 11,104 — Other federal credits 112,262 — — Other 15,695 — — Change in federal valuation allowance (2,569,208 ) (944,798 ) (674,460 ) $ 25,685 $ 8,181 $ 622 (c) Significant Components of Current and Deferred Taxes The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are as follows: For the Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 4,584,606 $ 6,786,922 Capitalization of patent costs, goodwill and amortization 221,593 332,901 Capitalization of acquisition costs 84,640 43,523 Research and AMT credits 1,447,479 1,689,883 Stock based compensation 82,085 160,182 Deferred lease obligation 91,017 182,550 Other timing differences 72,787 51,314 6,584,207 9,247,275 Less valuation allowance (6,453,466 ) (9,028,241 ) Total deferred tax assets, net of allowance $ 130,741 $ 219,034 Deferred tax liabilities: Fixed assets (104,324 ) (219,034 ) Goodwill (34,388 ) (6,166 ) Total deferred tax liabilities $ (138,712 ) $ (225,200 ) Total deferred tax liabilities $ (7,971 ) $ (6,166 ) The Company has established a valuation allowance against its net deferred tax assets due to the uncertainty surrounding the realization of such assets. The Company periodically evaluates the recoverability of the deferred tax assets. At such time it is determined that it is more likely than not that deferred assets are realizable, the valuation allowance will be reduced. The Company has recorded a valuation allowance of $6,453,466 as of December 31, 2017 as it does not believe it is more likely than not that certain deferred tax assets will be realized due to the recent history of both pre-tax book income and losses, the lack of taxable income available in carryback periods or feasible tax-planning strategies, the limited existing taxable temporary differences, and the subjective nature of forecasting future taxable income into the future. Should the Company continue to achieve substantial pre-tax book income during 2018 or be better able to forecast taxable income into the future, the Company may need to release a portion of their federal valuation allowance during 2018. Due to the Company’s relatively low apportionment in California, a release of state-related valuation allowance is unlikely. The Company decreased its valuation allowance by approximately $2,574,764 during the year ended December 31, 2017. At December 31, 2017, the Company had federal and California tax loss carryforwards of approximately $19,152,650, and $5,715,729, respectively. The federal and state net operating loss carry forwards begin to expire in 2020 and 2028, respectively, if unused. At December 31, 2017, the Company had federal and state tax credit carry forwards of approximately $936,228, and $1,192,688, respectively, after reduction for uncertain tax positions. The Company has not performed a formal research and development credit study with respect to certain of these credits. The federal credits will begin to expire in 2026, if unused, and the state credits carry forward indefinitely. Pursuant to the Internal Revenue Code of 1986, as amended (IRC), specifically IRC §382 and IRC §383, the Company’s ability to use net operating loss and research and development tax credit carry forwards (“tax attribute carry forwards”) to offset future taxable income is limited if the Company experiences a cumulative change in ownership of more than 50% within a three-year testing period. The Company has not completed an ownership change analysis pursuant to IRC Section 382 for taxable years ended after December 31, 2012. If ownership changes within the meaning of IRC Section 382 are identified as having occurred subsequent to 2012, the amount of remaining tax attribute carry forwards available to offset future taxable income and income tax expense in future years may be significantly restricted or eliminated. Further, the Company’s deferred tax assets associated with such tax attributes could be significantly reduced upon realization of an ownership change within the meaning of IRC §382. In December 2017, the Tax Cuts and Jobs Act (the 2017 Tax Act) was enacted. The 2017 Tax Act includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the U.S. corporate income tax rate from 35 percent to 21 percent for tax years beginning December 31, 2018. The 2017 Tax Act also provides for the acceleration of depreciation for certain assets placed in service after September 27, 2017 as well as prospective changes beginning in 2018, including additional limitations on executive compensation, limitations on the deductibility of interest and capitalization of research and development expenditures. Reduction of the U.S. Corporate Income Tax Rate: The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were remeasured to reflect the reduction in the U.S. corporate income tax rate from the graduated tax rate of 34 percent to a 21 percent flat tax, which resulted in $2.8 million increase in tax expense for the year ended December 31, 2017 and a corresponding $2.8 million decrease in net deferred tax assets as of December 31, 2017. The impact was offset by the Company’s valuation allowance except to the extent of indefinite lived intangibles. The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2017 and 2016: For the Year Ended December 31, 2017 2016 Beginning unrecognized tax benefits $ 1,532,000 $ 1,408,000 Decreases related to prior year tax positions (1,001,000 ) (53,000 ) Increases related to current year tax positions 179,000 177,000 Ending unrecognized tax benefits $ 710,000 $ 1,532,000 The unrecognized tax benefit amounts are reflected in the determination of the Company’s deferred tax assets. The Company does not foresee material changes to its uncertain tax benefits within the next twelve months. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company has an accrual for interest or penalties of $785 and $0 on the Company’s balance sheets as of December 31, 2017 and 2016, respectively, and has recognized interest and/or penalties in the Statement of Operations for the year ended December 31, 2017 in the amount of $785. Due to the existence of federal and state net operating loss and credit carryovers, the Company’s tax years that remain open and subject to examination by tax jurisdiction are years 2000 and forward for federal and years 2006 and forward for the state of California. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2017 | |
Class Of Stock Disclosures [Abstract] | |
Stockholders' Equity (Deficit) | ( 10 ) Stockholders’ Equity (Deficit) (a) Preferred Convertible Stock In June 2000, the Company sold 313,500 shares of Series A preferred convertible stock (Series A Preferred Stock) at $3.84 per share for gross proceeds of $1.2 million. In March 2001, the Company sold 290,993 shares of Series B preferred convertible stock (Series B Preferred Stock) at $4.39 per share for gross proceeds of $1.3 million in cash. At various times during 2003 the company issued a total of 866,613 additional shares of Series B Preferred Stock for cash and as compensation for services received and to satisfy debt obligations totaling approximately $1.2 million. In September 2003, the Company sold 682,000 shares of Series C preferred convertible stock (Series C Preferred Stock) at $1.00 per share for gross proceeds of $0.7 million. In November 2003, the Company sold 4,091,068 shares of Series D Preferred Convertible Stock (Series D Preferred Stock) at $0.542 per share for gross proceeds of $2.2 million. The holders of the Series A, B, C and D Preferred Stock (collectively, Junior Preferred Stock), were entitled to receive cumulative dividends at a rate of $0.0488, $0.00, $0.00 and $0.0488 per share, per annum, respectively, and were payable upon liquidation, redemption or conversion in order of their preference prior to any dividends on common stock. The holders of the Junior Preferred Stock were entitled to receive liquidation preferences upon certain deemed liquidation events at the rate equal to their purchase price per share plus all accrued and unpaid dividends. Upon completion of this distribution, any remaining assets were distributed to the holders of the common stock and to holders of the Junior Preferred Stock and to the holders of the Series E, F, and G Preferred Stock (collectively, Senior Preferred Stock) (on an as converted basis) until all amounts received by the holders of the Series A Preferred Stock were equal to $19.20 per share, the Series D Preferred Stock were equal to $2.168 per share, Series E Preferred Stock were equal to $4.44 per share, Series F Preferred Stock were equal to $5.20 per share, and Series G Preferred Stock were equal to $5.20 per share, the remaining assets were distributed among holders of shares of the common stock. The holders of the Senior Preferred Stock had priority and were made in preference to any payments to the Junior Preferred Stock up to the Senior Preferred Stock’s liquidation preference. The holders of the Junior Preferred Stock had priority and were made in preference to any payments to the holders of the common stock up to the Junior Preferred Stock’s liquidation preference. After distribution of both the Senior Preferred Stock and Junior Preferred Stock’s liquidation preferences, any remaining assets of the Company were distributed to the holders of the common stock. Each share of Junior Preferred Stock was convertible, at the option of the holder, at any time, into a number of shares of common stock at a conversion price of $21.70, $24.23, $8.59, $5.42 for the Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively, subject to adjustments for stock dividends, combinations, subdivisions, reclassifications and reorganizations. Each share of Junior Preferred Stock was automatically convertible into common stock immediately upon the earlier of (i) the Company’s sale of its common stock in a firm commitment, underwritten public offering registered under the Securities Act of 1933, as amended, in which aggregate proceeds to the Company are at least $15.0 million and at a per share offering price of at least $76.80 per share, as adjusted for any stock dividends, combinations, reclassifications, recapitalizations or splits, or (ii) the date specified by written consent or agreement by the holders of the majority of the then outstanding shares voting together as a single class on an as-converted basis (without giving effect to the conversion dividends). As long as 1,678,450 shares of Junior Preferred Stock remained outstanding, the Company was prohibited from certain transactions without the consent of at least 50% of the then outstanding shares of Junior Preferred Stock or the majority of the Board of Directors. The holders of the Junior Preferred Stock were entitled to the number of votes equal to the number of shares of common stock into which such shares of preferred stock could be converted and had voting rights and powers equal to the voting rights and powers of the common stock. In connection with the completion of the Company’s initial public offering (IPO), all 6,244,174 outstanding shares of the Company’s preferred convertible stock automatically converted into an aggregate of 753,611 shares of common stock. In addition, the Company issued 505,576 shares of its common stock in satisfaction of accumulated dividends on such preferred stock as the completion of the IPO. (b) Shares Reserved for Future Issuance The following common stock is reserved for future issuance at December 31, 2017 and December 31, 2016: As of December 31, 2017 (1) 2016 Warrants issued and outstanding 51,003 51,003 Stock option awards issued and outstanding 1,203,627 1,040,387 Authorized for grants under the 2016 Equity Incentive Plan 633,052 709,750 Authorized for grants under the 2016 Employee Stock Purchase Plan 100,000 100,000 1,987,682 1,901,140 (1) Treasury stock in the amount of 135,000 are excluded from the table above. |
Preferred Redeemable Convertibl
Preferred Redeemable Convertible Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Preferred Redeemable Convertible Stock | ( 11 ) Preferred Redeemable Convertible Stock In June 2005 and February 2006, the Company sold a total of 7,984,727 shares of Series E Preferred Redeemable Convertible Stock (Series E Preferred Stock) at $1.11 per share for gross proceeds of $8.8 million in cash. In February 2007, the Company sold 4,734,374 shares of Series F Preferred Redeemable Convertible Stock (Series F Preferred Stock) at $1.30 per share for gross proceeds of $6.2 million in cash. In March 2008 and June 2009, the Company completed an offering of Series G Preferred Stock at $1.30 per share for gross proceeds of $4.3 million in cash. In June 2012, the then outstanding convertible promissory notes and accrued interest thereon in the amount of $7.1 million converted to 6,216,607 and 463,856 shares of Series G Preferred Stock at the conversion price of $1.04 or $1.30 per share, respectively. The holders of the Senior Preferred Stock were entitled to receive cumulative dividends at a rate of 8% of the original purchase price, per annum and were payable in cash or common shares, at the option of the Company upon liquidation, redemption or conversion in order of their preference prior to any dividends on common stock or Junior Preferred Stock. The holders of the Senior Preferred Stock were entitled to receive liquidation preferences upon certain deemed liquidation events at the rate equal to their conversion price per share plus all accrued and unpaid dividends. Each share of Senior Preferred Stock was convertible, at the option of the holder, at any time, into a number of shares of common stock at a conversion price of $11.11, $13.00, and $13.00 for the Series E Preferred Stock, Series F Preferred Stock, and Series G Preferred Stock, respectively, subject to adjustments for stock dividends, combinations, subdivisions, reclassifications and reorganizations. Each share of Senior Preferred Stock was automatically convertible into common stock immediately upon the earlier of (i) the Company’s sale of its common stock in a firm commitment, underwritten public offering registered under the Securities Act of 1933, as amended, in which aggregate proceeds to the Company are at least $15.0 million, and at a per share offering price of at least $76.80 per share, as adjusted for any stock dividends, combinations, reclassifications, recapitalizations or splits, or (ii) the date specified by written consent or agreement by the holders of the majority of the then outstanding shares voting together as a single class, provided that the Junior Preferred Stock will also concurrently convert. As long as 4,875,000 shares of Senior Preferred Stock remained outstanding, the Company was prohibited from certain transactions without the consent of at least 50% of the then outstanding shares of Senior Preferred Stock or the majority of the Board of Directors. The holders of the Senior Preferred Stock were entitled to the number of votes equal to the number of shares of common stock into which such shares of preferred stock could be converted and have voting rights and powers equal to the voting rights and powers of the common stock. The following table provides a rollforward of the preferred redeemable convertible stock during the year ended December 31, 2016: Preferred redeemable convertible stock Shares Amount Balance at December 31, 2015 23,271,702 $ 43,106,906 Effect of accretion to redemption value — 1,356,707 Conversion of preferred redeemable convertible stock into common stock (23,271,702 ) (44,463,613 ) Balance at December 31, 2016 — $ — In connection with the completion of the IPO, all 23,271,702 outstanding shares of the Company’s preferred redeemable convertible stock automatically converted to 2,327,122 shares of common stock. In addition, the Company issued 1,451,631 shares of its common stock in satisfaction of accumulated dividends on such preferred stock as of the completion of the IPO. There was no preferred redeemable convertible stock activity in the year ended December 31, 2017. |
Stock Options
Stock Options | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options | (1 2 ) Stock Options In August 2016, the Company’s board of directors adopted the 2016 Equity Incentive Plan (the 2016 Plan) for employees, directors, and consultants. As of December 31, 2017, 633,052 shares are available for issuance under the 2016 Plan, of which 429,750 shares were rolled from the 2013 Equity Incentive Plan (the 2013 Plan) into the 2016 Plan. In 2013, the Company’s board of directors adopted the 2013 Plan for employees, directors, and consultants. The common stock authorized under the 2013 Plan is 1,200,000 shares. Under the Plan, the administrator shall have authority to determine which service providers will receive awards, to grant awards and to set all terms and conditions of awards (including, but not limited to, vesting, exercise and forfeiture provisions). Vested options are canceled 90 days after termination of employment and become available for reissuance under the Plan. As of December 31, 2017 and December 31, 2016, no shares were available for issuance under the 2013 Plan. The service period for stock options granted to employees is generally 1 to 4 years. The grant-date fair value of each option award is estimated on the date of grant using the Black- Scholes-Merton option-pricing model. The weighted average assumptions for December 31, 2017, 2016 and 2015 grants are provided in the following table. The Company’s lack of historical share option exercise experience does not provide it a reasonable basis upon which to estimate an expected term because of a lack of sufficient data. Therefore, the Company estimates the expected term by using the simplified method, which calculates the expected term as the average of the time-to-vesting and the contractual life of the options. Since the Company’s shares have only been publicly traded since August 12, 2016 and its shares were rarely traded privately, expected volatility is estimated based on the average historical volatility of similar entities with publicly traded shares. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve at the date of grant. As of December 31, 2017 2016 2015 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 39.37 % 41.82 % 56.74 % Expected term (years) 6.06 6.07 5.42 Risk-free interest rate 1.9 % 1.6 % 1.7 % Stock option activity during the periods indicated is as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term Balance at December 31, 2014 504,550 $ 2.60 5.8 Granted 512,402 2.00 9.2 Exercised (24,260 ) 3.19 — Expired/Forfeited (236,000 ) 2.77 — Balance at December 31, 2015 756,692 $ 2.10 7.6 Granted 359,319 2.60 9.4 Exercised (58,155 ) 2.36 3.5 Expired/Forfeited (17,469 ) 2.13 2.6 Balance at December 31, 2016 1,040,387 $ 2.25 7.8 Granted 471,144 14.72 9.1 Exercised (284,455 ) 2.07 5.2 Expired/Forfeited (23,449 ) 8.22 — Balance at December 31, 2017 1,203,627 $ 7.06 8.1 Vested and exercisable at December 31, 2017 523,566 $ 2.21 7.0 Vested and expected to vest at December 31, 2017 1,203,627 $ 7.06 8.1 The weighted average grant-date fair value of options granted during the years ended December 31, 2017, 2016 and 2015 was $6.02, $1.23 and $0.84, respectively. For fully vested stock options the aggregate intrinsic value was $3,596,624 and $7,770,086 as of December 31, 2017 and 2016, respectively. For stock options expected to vest the aggregate intrinsic value was $1,469,154 and $4,569,243 as of December 31, 2017 and 2016, respectively. At December 31, 2015, the aggregate intrinsic value for fully vested stock options and stock options expected to vest was immaterial. The total grant date fair value of shares vested during the years ended December 31, 2017, 2016 and 2015 was $322,804, $176,597 and $345,174, respectively. During the year ended December 31, 2016, a total of 57,475 shares of restricted common stock with a fair value of $2.00 per share were issued to the Company’s Chief Financial Officer and Chief Operating Officer of which 100% of the shares vested in the year ended December 31, 2017. At December 31, 2017, 2016 and 2015, there was $2,453,342, $522,818 and $214,304, respectively, of total unrecognized compensation cost related to unvested stock options and restricted stock granted under the plans. That cost is expected to be recognized over the next three years. The Company currently uses authorized and unissued shares to satisfy share award exercises. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (1 3 ) Commitments and Contingencies (a) Operating Leases The Company has entered into lease agreements for office space and research facilities in San Diego, California; Rancho Santa Fe, California; Poway, California; Melbourne, Florida; Scottsdale, Arizona; Taipei, Taiwan; Shenzhen and Jiangsu, China; and Cambridgeshire, United Kingdom. Rent expense was $805,271, $742,829 and $672,526, for the years ended December 31, 2017, 2016 and 2015, respectively. The longest lease expires in December 2020. The Company moved into its new facility in San Diego, California during the year ended December 31, 2014. The new San Diego facility lease agreement included a tenant improvement allowance which provided for the landlord to pay for tenant improvements on behalf of the Company up to $515,000. Based on the terms of this landlord incentive and involvement of the Company in the construction process, the leasehold improvements purchased under the landlord incentive were determined to be property of the Company. The future minimum lease payments required under operating leases in effect at December 31, 2017 were as follows: Year ending: 2018 $ 978,873 2019 825,193 2020 502,461 2021 134,529 2022 22,527 $ 2,463,583 (b) 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, there have been no known events or circumstances that have resulted in any material costs related to these indemnification provisions and no liabilities have been recorded in the accompanying financial statements. (c) Employment Agreements During 2014 the Company entered into employment agreements with its Chief Executive Officer and certain members of its management team. These agreements provide severance in the aggregate amount of $575,000 for termination without cause as defined in the agreements. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentration of Credit Risk | (1 4 ) Concentration of Credit Risk (a) Concentration of Sales and Accounts Receivable The following represents customers that accounted for 10% or more of total revenue during the years ended December 31, 2017, 2016 and 2015 and customers that accounted for 10% or more of total trade accounts receivable at December 31, 2017 and 2016: For the Year Ended December 31, 2017 2016 2015 Percentage of net revenue Customer A 21 % 20 % 15 % Customer B 13 31 28 Customer C 10 8 1 As of December 31, 2017 2016 Percentage of gross trade accounts receivable Customer A 19 % 13 % Customer B 13 18 Customer C 10 13 Customer D 9 16 (b) Revenue by Geography Net revenue by geographic area are as follows. Revenue is attributed by geographic location based on the bill-to location of the Company’s customers. For the Year Ended December 31, 2017 2016 2015 Percentage of net revenue China 67 % 74 % 64 % Other Asia 10 11 21 North America 18 10 9 Europe 5 5 6 Although the Company ships the majority of antennas to its customers in China (primarily ODM’s and distributors), the end-users of the Company’s products are much more geographically diverse. (c) Concentration of Purchases During the year ended December 31, 2017, all of the Company’s products were manufactured in our Shullsburg, Wisconsin and Scottsdale, Arizona facilities and by two vendors in China. Manufacturing completed in our Shullsburg, Wisconsin facility was transferred to the Scottsdale, Arizona facility once the facility was closed in July 2017. During the year ended December 31, 2016 and 2015, all of the Company’s products were manufactured by two vendors in China. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | (1 5 ) Related-Party Transactions During the year ended December 31, 2014, the Company provided its Chief Executive Officer a loan of $266,282 for the payment of federal and state income taxes payable by him as the result of issuance of restricted stock. During the year ended December 31, 2015, the Company forgave the loan and incurred $266,282 of expense for the loan forgiveness and an additional $236,414 of expense related to the Chief Executive Officer’s taxes on the loan forgiveness. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | (1 6 ) Employee Benefit Plan The Company established a discretionary 401(k) plan effective January 2005. The 401(k) plan was amended and restated in May 2006. The 401(k) plan covers substantially all employees who have attained age 21. The participants may elect to defer a percentage of their compensation as allowable by law. The Company can make discretionary matching contributions, but so far has not done so. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | (1 7 ) Subsequent Events On January 31, 2018, the Company entered into a second amended and restated loan and security agreement (the Amended Loan Agreement) with Silicon Valley Bank. The Amended Loan Agreement modified the amended and restated loan and security agreement to, among other things, increase the aggregate principal amount available under the revolving line of credit from $3.0 million to $10.0 million and modify certain existing financial covenants. Under the Amended Loan Agreement, the Company may borrow up to $10.0 million under the line of credit, subject to a borrowing base limit of 80% of the aggregate face amount of all eligible receivables. The Amended Loan Agreement removed the minimum EBITDA requirement previously applicable to the line of credit and term loan, and maintained the liquidity ratio financial covenant such that the Company must maintain a ratio of cash and cash equivalents plus accounts receivable outstanding debt under the Amended Loan Agreement minus deferred revenue of 1.25 to 1.00. The Company will be required to pay interest on borrowings outstanding, if any, under the revolving line of credit at a floating rate per annum equal to 1% above the Wall Street Journal prime rate (or, if unavailable, the Silicon Valley Bank prime rate) on a monthly basis, so long as the Company maintains a liquidity ratio of cash and cash equivalents plus accounts receivable to outstanding debt under the Amended Loan Agreement minus deferred revenue of 1.50 to 1.00. If this liquidity ratio is not met, the Company will be subject to a minimum interest charge of $3,000 per month and borrowings outstanding, if any, under the revolving line of credit will accrue interest at a floating rate per annum equal to 2% above the Wall Street Journal prime rate (or, if unavailable, the Silicon Valley Bank prime rate) prime rate on a monthly basis. Borrowings outstanding under the term loan under the amended and restated loan and security agreement will continue to be repaid in equal monthly installments of interest and principal and matures on December 1, 2018. The revolving line of credit matures on January 31, 2020. Silicon Valley Bank maintains a first security interest over the Company’s assets, excluding intellectual property, for which Silicon Valley Bank has received a negative pledge. The Amended Loan Agreement contains customary affirmative and negative covenants and events of default applicable to us and any subsidiaries. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | (1 8 ) Quarterly Financial Information (unaudited) The following is a summary of the quarterly results of operations for the years ended December 31, 2017 and 2016: For the Three Months Ended December 31, 2017 September 30, 2017 June 30, March 31, 2017 Revenues $ 12,807,175 $ 12,448,436 $ 13,013,143 $ 11,252,417 Gross Profit 5,888,332 6,003,892 6,121,524 5,288,458 Total operating expenses 5,418,089 5,803,260 6,248,678 4,862,979 Net income 591,933 234,353 (70,121 ) 385,090 Basic net income (loss) per share $ 0.06 $ 0.02 $ (0.01 ) $ 0.04 Diluted net income (loss) per share $ 0.06 $ 0.02 $ (0.01 ) $ 0.04 For the Three Months Ended December 31, 2016 September 30, 2016 June 30, March 31, 2016 Revenues $ 12,625,966 $ 12,439,279 $ 9,856,317 $ 8,512,305 Gross Profit 5,476,403 5,576,287 4,546,761 3,677,624 Total operating expenses 4,345,198 4,345,965 3,572,915 3,560,830 Net income (loss) 1,100,302 1,183,044 1,311,209 139,153 Basic net loss per share $ 0.14 $ 0.21 $ 0.97 $ (0.70 ) Diluted net loss per share $ 0.12 $ 0.16 $ 0.15 $ (0.82 ) |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Description of Business | (a) Description of Business Airgain, Inc. (the Company) was incorporated in the State of California on March 20, 1995 and reincorporated in the State of Delaware on August 15, 2016. The Company is a leading provider of advanced antenna technologies used to enable high performance wireless networking across a broad range of devices and markets, including connected home, enterprise, automotive, and Internet of Things, (IoT). The Company designs, develops, and engineers its antenna products for original equipment and design manufacturers worldwide. The Company’s headquarters is in San Diego, California with office space and research facilities in San Diego, California, Rancho Santa Fe, California, Poway, California, Melbourne, Florida, Taipei, Taiwan, Gyeonggi-do, Korea, Shenzhen and Jiangsu, China and Cambridgeshire, United Kingdom and a design and manufacturing plant/facility in Scottsdale, Arizona. |
Basis of Presentation | (b) Basis of Presentation The financial statements of the Company have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). |
Recently Issued Accounting Pronouncements | (c) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) |
Segment Information | ( d ) 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 Scottsdale, Arizona. The Company operates in one segment related to the sale of antenna products. The Company’s chief operating decision-maker is its chief executive officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a single operating segment. |
Cash Equivalents and Short Term Investments | ( e ) Cash Equivalents and Short-Term Investments Cash equivalents are comprised of short-term, highly liquid investments with maturities of 90 days or less at the date of purchase. Short-term investments consist predominantly of commercial paper, corporate debt securities, U.S. Treasury securities and asset backed securities. The Company classifies short-term investments based on the facts and circumstances surrounding the investments at the time of purchase and evaluates such classification as of each balance sheet date. All short-term investments are classified as available-for-sale securities as of December 31, 2017 and are recorded at estimated fair value. Unrealized gains and losses for available-for-sale securities are included in accumulated other comprehensive income, a component of stockholders’ equity. Realized gains and losses are included in other (income) expense, in the statement of operations. The Company evaluates its investments to determine whether those with unrealized loss positions are other than temporarily impaired. Impairments are considered to be other than temporary if they are related to deterioration in credit risk or if it is likely that the Company will sell the securities before recovery of their cost basis. |
Trade Accounts Receivable | ( f ) Trade Accounts Receivable Trade accounts receivable is adjusted for all known uncollectible accounts. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. Accounts are written off once all collection efforts have been exhausted. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful. The allowance for doubtful accounts was $0 as of December 31, 2017 and December 31, 2016. |
Inventory | ( g ) Inventory The majority 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 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. 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 balance sheet. With the acquisition of substantially all of the assets of Antenna Plus, LLC (“Antenna Plus”), in April 2017, the Company began manufacturing products at its Scottsdale, Arizona and Shullsburg, Wisconsin locations. In July 2017, the Company relocated all of its product manufacturing operations in Shullsburg, Wisconsin to the Scottsdale, Arizona facility. See Note 4 for additional information relating to the Company’s acquisition of the Antenna Plus assets. Inventory is stated at the lower of cost or market. For items manufactured by the Company, 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. As of December 31, 2017, the Company’s inventories consist primarily of raw materials. Provisions for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience. As of December 31, 2017, there is no provision for excess and obsolete inventories. |
Property and Equipment | ( h ) 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 years. The estimated useful lives for leasehold improvements is determined as either the estimated useful life of the asset or the lease term, whichever is shorter. Amortization of assets that are recorded under capital leases are included in depreciation expense. Maintenance and repairs 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 sold, or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is included as an operating expense. |
Goodwill | ( i ) Goodwill Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of net assets acquired. The change in the carrying value of goodwill during the year ended December 31, 2017, was due to an acquisition during 2017. See Note 5. The Company reviews goodwill for impairment annually on December 1st and whenever events or changes in circumstances indicate that goodwill may be impaired. The Company completed its annual assessment for goodwill impairment in December 2017 and determined that goodwill is not impaired as of December 31, 2017. |
Long-lived Assets | ( j ) Long-lived Assets The Company’s identifiable intangible assets are comprised of acquired developed technologies, customer relationships, tradenames and non-compete agreements. The cost of the identifiable intangible assets with finite lives is amortized on a straight-line basis over the assets’ respective estimated useful lives. The Company periodically re-evaluates the original assumptions and rationale utilized in the establishment of the carrying value and estimated lives of long-lived assets and finite-lived intangible assets. Long- lived assets and finite-lived intangibles are assessed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an asset is considered to be impaired, the impairment recognized is equal to the amount by which the carrying value of the asset exceeds its fair value. |
Revenue Recognition | ( k ) Revenue Recognition The Company generates revenue primarily from the sale of its antenna products. The Company recognizes revenue when products are shipped and the customer takes ownership and assumes risk of loss, collection of the relevant receivable is reasonably assured, persuasive evidence of an arrangement exists, and the sales price is fixed or determinable. Title and risk of loss transfer to customers either when the products are shipped to or received by the customer, based on the terms of the specific agreement with the customer. A portion of the Company’s sales are made through distributors under agreements allowing for pricing credits and/or rights of return under certain circumstances. To date, pricing credits and returns under these provisions have been insignificant; accordingly, the Company recognizes revenue upon shipment to the distributor and the Company’s allowance for sales returns and pricing credits was insignificant for the years ended December 31, 2017, 2016 and 2015. |
Shipping and Transportation Costs | ( l ) Shipping and Transportation Costs Shipping and other transportation costs are expensed as incurred. Shipping and other transportation costs were $462,297, $321,093 and $221,974 for the years ended December 31, 2017, 2016 and 2015, respectively. These costs are included in general and administrative expenses in the accompanying statements of operations. |
Research and Development Costs | ( m ) Research and Development Costs Costs incurred in connection with research and development are expensed as incurred. |
Income Taxes | ( n ) 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 it is determined 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 | ( o ) Stock-Based Compensation The Company recognizes all employee stock-based compensation as a cost in the financial statements. Equity classified awards are measured at the grant-date fair value of the award. The Company estimates the grant-date fair value using the Black-Scholes-Merton option-pricing model. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized for all stock-based compensation. Compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Stock-based compensation expense for the years ended December 31, 2017, 2016 and 2015 was $736,066, $298,535 and $341,554, respectively. |
Fair Value Measurements | ( p ) Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, and accrued liabilities 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. The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1, Level 2, or Level 3 for the years ended December 31, 2017 and 2016. The following table provides a rollforward of the Company’s Level 3 fair value measurements during the years ended December 31, 2017 and 2016: As of December 31, 2017 2016 Beginning balance $ — $ 709,504 Change in fair value of warrant liability — (460,289 ) Conversion of warrants — (249,215 ) Ending balance $ — $ — |
Use of Estimates | ( q ) 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include valuation of the preferred redeemable convertible stock warrant liability, stock- based compensation and intangible assets. |
Accumulated Other Comprehensive Income (Loss) | ( r ) Accumulated Other Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Accumulated other comprehensive loss on the balance sheet at December 31, 2017 includes unrealized gains and losses on the Company’s available-for-sale securities. |
Net Income or Loss Per Share | ( s ) Net Income or Loss Per Share Basic net income or loss per share is calculated by dividing net income or loss available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted net income or loss per share is calculated by dividing net income or 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. Preferred dividends are deducted from net income or loss in arriving at net income or loss attributable to common stockholders. The Company calculates diluted earnings or loss per common share using the treasury stock method and the as-if-converted method, as applicable. The following table presents the computation of net income or loss per share: For the Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 1,141,255 $ 3,733,707 $ (270,342 ) Accretion of dividends on preferred stock — (1,537,021 ) (2,444,954 ) Net income attributable to common stockholders - basic $ 1,141,255 $ 2,196,686 $ (2,715,296 ) Accretion of dividends on preferred stock — 125,205 — Adjustment for change in fair value of warrant liability — (460,289 ) (85,325 ) Net income (loss) attributable to common stockholders - diluted $ 1,141,255 $ 1,861,602 $ (2,800,621 ) Denominator: Weighted average common shares outstanding Basic 9,485,271 3,373,316 651,593 Diluted 10,361,373 4,667,503 651,593 Net income (loss) per share: Basic $ 0.12 $ 0.65 $ (4.17 ) Diluted $ 0.11 $ 0.40 $ (4.30 ) Diluted weighted average common shares outstanding for the year ended December 31, 2017 includes 1,532 warrants and 874,571 options outstanding. Diluted weighted average common shares outstanding for the year ended December 31, 2016 includes 577,529 options outstanding and 716,658 preferred shares. Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares): For the Year Ended December 31, 2017 2016 2015 Preferred redeemable convertible stock, including accumulated dividends — 2,406,894 4,891,205 Employee stock options 513,869 — 756,692 Warrants outstanding — 51,003 — Series G preferred stock warrants outstanding — — 788,338 Total 513,869 2,457,897 6,436,235 |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Rollforward of Level 3 Fair Value Measurements | The following table provides a rollforward of the Company’s Level 3 fair value measurements during the years ended December 31, 2017 and 2016: As of December 31, 2017 2016 Beginning balance $ — $ 709,504 Change in fair value of warrant liability — (460,289 ) Conversion of warrants — (249,215 ) Ending balance $ — $ — |
Summary of Computation of Net Income or Loss Per Share | The following table presents the computation of net income or loss per share: For the Year Ended December 31, 2017 2016 2015 Numerator: Net income (loss) $ 1,141,255 $ 3,733,707 $ (270,342 ) Accretion of dividends on preferred stock — (1,537,021 ) (2,444,954 ) Net income attributable to common stockholders - basic $ 1,141,255 $ 2,196,686 $ (2,715,296 ) Accretion of dividends on preferred stock — 125,205 — Adjustment for change in fair value of warrant liability — (460,289 ) (85,325 ) Net income (loss) attributable to common stockholders - diluted $ 1,141,255 $ 1,861,602 $ (2,800,621 ) Denominator: Weighted average common shares outstanding Basic 9,485,271 3,373,316 651,593 Diluted 10,361,373 4,667,503 651,593 Net income (loss) per share: Basic $ 0.12 $ 0.65 $ (4.17 ) Diluted $ 0.11 $ 0.40 $ (4.30 ) |
Summary of Potentially Dilutive Securities | Potentially dilutive securities not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in common stock equivalent shares): For the Year Ended December 31, 2017 2016 2015 Preferred redeemable convertible stock, including accumulated dividends — 2,406,894 4,891,205 Employee stock options 513,869 — 756,692 Warrants outstanding — 51,003 — Series G preferred stock warrants outstanding — — 788,338 Total 513,869 2,457,897 6,436,235 |
Cash, Cash Equivalents and Sh29
Cash, Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents and Short-Term Investments by Significant Investment Category | The following table shows the Company’s cash and cash equivalents and short-term investments by significant investment category as of December 31, 2017: December 31, 2017 Amortized Cost Gross Unrealized Losses Estimated Fair Value Cash and Cash Equivalents Short-Term Investments Cash $ 3,040,696 $ — $ 3,040,696 $ 3,040,696 $ — Level 1 (1): Money market funds 8,234,751 — 8,234,751 8,234,751 — U.S. treasury securities 2,490,799 (5,540 ) 2,485,259 — 2,485,259 Subtotal 10,725,550 (5,540 ) 10,720,010 8,234,751 2,485,259 Level 2 (2): Commercial paper 9,716,093 — 9,716,093 — 9,716,093 Corporate debt obligations 6,829,191 (9,414 ) 6,819,777 — 6,819,777 Repurchase agreements 3,000,233 — 3,000,233 3,000,233 — Asset-backed securities 3,018,276 (1,953 ) 3,016,323 750,388 2,265,935 Subtotal 22,563,793 (11,367 ) 22,552,426 3,750,621 18,801,805 Total $ 36,330,039 $ (16,907 ) $ 36,313,132 $ 15,026,068 $ 21,287,064 (1) Level 1 fair value estimates are based on quoted prices in active markets for identical assets or liabilities. (2) Level 2 fair value estimates are based on observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
Summary of Short-term Investments with Unrealized Losses | The following table presents the Company’s short-term investments with unrealized losses by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2017: Less Than 12 Months Description of Securities Estimated Fair Value Unrealized Losses December 31, 2017 U.S. treasury securities $ 2,485,259 $ (5,540 ) Corporate debt obligations 6,819,777 (9,414 ) Asset-backed securities 2,265,935 (1,953 ) Total $ 11,570,971 $ (16,907 ) |
Schedule of Contractual Maturities of Short-term Investments | Contractual maturities of short-term investments as of December 31, 2017 are as follows: Estimated Fair Value Due within one year $ 21,287,064 Total $ 21,287,064 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciation and amortization of property and equipment is calculated on the straight-line method based on estimated useful lives of six to ten years for tenant improvements and three to five years for all other property and equipment. Property and equipment consist of the following: As of December 31, 2017 2016 Lab equipment $ 1,914,911 $ 1,314,060 Computer equipment 169,366 165,415 Computer software 299,227 299,227 Furniture and fixtures 202,218 184,233 Tenant improvements 763,898 763,898 Other office equipment 63,825 20,591 3,413,445 2,747,424 Less accumulated depreciation (2,376,585 ) (1,940,338 ) $ 1,036,860 $ 807,086 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Summary of Allocation of Purchase Price for Acquired Identifiable Assets, Liabilities Assumed and Goodwill | The following table summarizes the consideration paid and the estimated fair value of the assets acquired and liabilities assumed at the acquisition date. Consideration: Cash $ 4,000,000 Contingent consideration arrangement 1,000,000 Fair value of total consideration transferred $ 5,000,000 Recognized amounts of identifiable assets acquired and liabilities assumed: Accounts receivable $ 429,267 Intangible assets 3,497,000 Current liabilities (176,223 ) Total identifiable net assets acquired 3,750,044 Goodwill 1,249,956 Total $ 5,000,000 |
Antenna Plus | |
Business Acquisition [Line Items] | |
Summary of Allocation of Purchase Price for Acquired Identifiable Assets, Liabilities Assumed and Goodwill | The following table shows the allocation of the purchase price for Antenna Plus to the acquired identifiable assets, liabilities assumed and goodwill: Consideration: Cash $ 6,383,500 Working capital adjustments (34,770 ) Fair value of total consideration transferred $ 6,348,730 Recognized amounts of identifiable assets acquired and liabilities assumed: Accounts receivable $ 584,390 Inventory 432,770 Fixed assets 402,958 Intangible assets 2,600,000 Current liabilities (121,879 ) Total identifiable net assets acquired 3,898,239 Goodwill 2,450,491 Total $ 6,348,730 |
Summary of Unaudited Pro Forma Information | The following unaudited pro forma financial information presents combined results of operations for each of the periods presented, as if Antenna Plus had been acquired as of the beginning of the fiscal year 2015. The pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2015 or of the results of future operations of the combined business. Consequently, actual results will differ from the unaudited pro forma information presented below: For the Year Ended December 31, 2017 2016 2015 Pro forma sales $ 51,789,215 $ 50,940,773 $ 34,112,518 Pro forma income from operations $ 1,539,538 $ 4,436,281 $ 458,075 Pro forma net income $ 1,711,598 $ 4,717,872 $ 518,387 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | Changes to the Company’s goodwill balance during the year ended December 31, 2017 and 2016 are as follows: Balance at December 31, 2015 $ 1,249,956 Current period adjustments — Balance at December 31, 2016 $ 1,249,956 Acquisition of Antenna Plus Assets 2,450,491 Balance at December 31, 2017 $ 3,700,447 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Acquired Intangible Assets | The following is a summary of the Company’s acquired intangible assets: As of December 31, 2017 Weighted Average Amortization Period (years) Gross Carrying Amount Accumulated Amortization Intangibles, Net Customer relationships 10 $ 4,830,000 $ 754,082 $ 4,075,918 Developed technologies 9 1,080,000 142,477 937,523 Tradename 3 120,000 26,667 93,333 Non-compete agreement 3 67,000 45,523 21,477 Total intangible assets, net 10 $ 6,097,000 $ 968,749 $ 5,128,251 As of December 31, 2016 Weighted Average Amortization Period (years) Gross Carrying Amount Accumulated Amortization Intangibles, Net Customer relationships 10 $ 3,150,000 $ 327,082 $ 2,822,918 Developed technologies 5 280,000 37,091 242,909 Non-compete agreement 3 67,000 23,190 43,810 Total intangible assets, net 10 $ 3,497,000 $ 387,363 $ 3,109,637 |
Schedule of Estimated Annual Amortization of Intangible Assets | The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a results of acquisitions, divestitures, asset impairments, among other factors. Estimated Future Amortization 2018 $ 676,529 2019 655,052 2020 627,667 2021 598,420 2022 563,000 Thereafter 2,007,583 Total $ 5,128,251 |
Long-term Notes Payable (incl34
Long-term Notes Payable (including current portion) and Line of Credit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loan Agreement With Silicon Valley Bank | |
Schedule of Principal Payment of Loan | The remaining principal payments on the $4.0 million term loan subsequent to December 31, 2017 are as follows: Year ending: 2018 $ 1,333,333 $ 1,333,333 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provisions | The December 31, 2017, 2016 and 2015 income tax provision is as follows: For the Year Ended December 31, 2017 2016 2015 Current: U.S. federal $ 21,272 $ — $ — State and local 2,608 2,015 622 Total current provision 23,880 2,015 622 Deferred: U.S. federal 483 6,124 — State and local 1,322 42 — Total deferred provision 1,805 6,166 — Total tax provision $ 25,685 $ 8,181 $ 622 |
Schedule of Reconciliation of Income Tax Provision to Statutory Federal Income Tax Rate | A reconciliation of the total income tax provision tax rate to the statutory federal income tax rate of 34% for the years ended December 31, 2017, 2016 and 2015 is as follows: For the Year Ended December 31, 2017 2016 2015 Income taxes at statutory rates $ 396,760 $ 1,272,242 $ (91,705 ) State income tax, net of federal benefit 3,910 2,054 411 Permanent items (5,060 ) 68,944 32,530 Meals and entertainment 74,755 54,375 40,796 Equity based compensation (645,512 ) 48,385 98,637 Warrant liability — (156,498 ) (34,160 ) Corporate tax rate change - impact on deferred income taxes 2,768,458 — — Research and development credit 206,801 (141,494 ) 628,573 Federal NOL adjustment (386,441 ) (206,133 ) — Federal return to provision 53,265 11,104 — Other federal credits 112,262 — — Other 15,695 — — Change in federal valuation allowance (2,569,208 ) (944,798 ) (674,460 ) $ 25,685 $ 8,181 $ 622 |
Deferred Income Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2017 and 2016 are as follows: For the Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 4,584,606 $ 6,786,922 Capitalization of patent costs, goodwill and amortization 221,593 332,901 Capitalization of acquisition costs 84,640 43,523 Research and AMT credits 1,447,479 1,689,883 Stock based compensation 82,085 160,182 Deferred lease obligation 91,017 182,550 Other timing differences 72,787 51,314 6,584,207 9,247,275 Less valuation allowance (6,453,466 ) (9,028,241 ) Total deferred tax assets, net of allowance $ 130,741 $ 219,034 Deferred tax liabilities: Fixed assets (104,324 ) (219,034 ) Goodwill (34,388 ) (6,166 ) Total deferred tax liabilities $ (138,712 ) $ (225,200 ) Total deferred tax liabilities $ (7,971 ) $ (6,166 ) |
Summary of Reconciliation of Unrecognized Tax Benefit Activity | The following table summarizes the reconciliation of the unrecognized tax benefits activity during the years ended December 31, 2017 and 2016: For the Year Ended December 31, 2017 2016 Beginning unrecognized tax benefits $ 1,532,000 $ 1,408,000 Decreases related to prior year tax positions (1,001,000 ) (53,000 ) Increases related to current year tax positions 179,000 177,000 Ending unrecognized tax benefits $ 710,000 $ 1,532,000 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Class Of Stock Disclosures [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | The following common stock is reserved for future issuance at December 31, 2017 and December 31, 2016: As of December 31, 2017 (1) 2016 Warrants issued and outstanding 51,003 51,003 Stock option awards issued and outstanding 1,203,627 1,040,387 Authorized for grants under the 2016 Equity Incentive Plan 633,052 709,750 Authorized for grants under the 2016 Employee Stock Purchase Plan 100,000 100,000 1,987,682 1,901,140 (1) Treasury stock in the amount of 135,000 are excluded from the table above. |
Preferred Redeemable Converti37
Preferred Redeemable Convertible Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Preferred Redeemable Convertible Stock | The following table provides a rollforward of the preferred redeemable convertible stock during the year ended December 31, 2016: Preferred redeemable convertible stock Shares Amount Balance at December 31, 2015 23,271,702 $ 43,106,906 Effect of accretion to redemption value — 1,356,707 Conversion of preferred redeemable convertible stock into common stock (23,271,702 ) (44,463,613 ) Balance at December 31, 2016 — $ — |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Weighted Average Assumptions Used in Estimating Fair Value of Stock Options | As of December 31, 2017 2016 2015 Valuation assumptions: Expected dividend yield 0 % 0 % 0 % Expected volatility 39.37 % 41.82 % 56.74 % Expected term (years) 6.06 6.07 5.42 Risk-free interest rate 1.9 % 1.6 % 1.7 % |
Summary of Outstanding Stock Option Activity | Stock option activity during the periods indicated is as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term Balance at December 31, 2014 504,550 $ 2.60 5.8 Granted 512,402 2.00 9.2 Exercised (24,260 ) 3.19 — Expired/Forfeited (236,000 ) 2.77 — Balance at December 31, 2015 756,692 $ 2.10 7.6 Granted 359,319 2.60 9.4 Exercised (58,155 ) 2.36 3.5 Expired/Forfeited (17,469 ) 2.13 2.6 Balance at December 31, 2016 1,040,387 $ 2.25 7.8 Granted 471,144 14.72 9.1 Exercised (284,455 ) 2.07 5.2 Expired/Forfeited (23,449 ) 8.22 — Balance at December 31, 2017 1,203,627 $ 7.06 8.1 Vested and exercisable at December 31, 2017 523,566 $ 2.21 7.0 Vested and expected to vest at December 31, 2017 1,203,627 $ 7.06 8.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule Future Minimum Lease Payments Under Operating Leases | The future minimum lease payments required under operating leases in effect at December 31, 2017 were as follows: Year ending: 2018 $ 978,873 2019 825,193 2020 502,461 2021 134,529 2022 22,527 $ 2,463,583 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 during the years ended December 31, 2017, 2016 and 2015 and customers that accounted for 10% or more of total trade accounts receivable at December 31, 2017 and 2016: For the Year Ended December 31, 2017 2016 2015 Percentage of net revenue Customer A 21 % 20 % 15 % Customer B 13 31 28 Customer C 10 8 1 As of December 31, 2017 2016 Percentage of gross trade accounts receivable Customer A 19 % 13 % Customer B 13 18 Customer C 10 13 Customer D 9 16 |
Schedule of Revenue by Geographic area | Net revenue by geographic area are as follows. Revenue is attributed by geographic location based on the bill-to location of the Company’s customers. For the Year Ended December 31, 2017 2016 2015 Percentage of net revenue China 67 % 74 % 64 % Other Asia 10 11 21 North America 18 10 9 Europe 5 5 6 |
Quarterly Financial Informati41
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following is a summary of the quarterly results of operations for the years ended December 31, 2017 and 2016: For the Three Months Ended December 31, 2017 September 30, 2017 June 30, March 31, 2017 Revenues $ 12,807,175 $ 12,448,436 $ 13,013,143 $ 11,252,417 Gross Profit 5,888,332 6,003,892 6,121,524 5,288,458 Total operating expenses 5,418,089 5,803,260 6,248,678 4,862,979 Net income 591,933 234,353 (70,121 ) 385,090 Basic net income (loss) per share $ 0.06 $ 0.02 $ (0.01 ) $ 0.04 Diluted net income (loss) per share $ 0.06 $ 0.02 $ (0.01 ) $ 0.04 For the Three Months Ended December 31, 2016 September 30, 2016 June 30, March 31, 2016 Revenues $ 12,625,966 $ 12,439,279 $ 9,856,317 $ 8,512,305 Gross Profit 5,476,403 5,576,287 4,546,761 3,677,624 Total operating expenses 4,345,198 4,345,965 3,572,915 3,560,830 Net income (loss) 1,100,302 1,183,044 1,311,209 139,153 Basic net loss per share $ 0.14 $ 0.21 $ 0.97 $ (0.70 ) Diluted net loss per share $ 0.12 $ 0.16 $ 0.15 $ (0.82 ) |
Significant Accounting Polici42
Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)Segmentshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Significant Accounting Policies [Line Items] | |||
Number of operating segments | Segment | 1 | ||
Allowance for doubtful trade accounts receivable | $ 0 | $ 0 | |
Goodwill impairment | 0 | ||
Shipping and other transportation costs | 462,297 | 321,093 | $ 221,974 |
Stock-based compensation | 736,066 | 298,535 | $ 341,554 |
Transfers into level 1 to level 2, liabilities | 0 | 0 | |
Transfers into level 2 to level 1, liabilities | 0 | 0 | |
Transfers into level 3, liabilities | 0 | 0 | |
Transfers out of level 3, liabilities | $ 0 | $ 0 | |
Diluted weighted average common shares outstanding | shares | 10,361,373 | 4,667,503 | 651,593 |
Warrant | |||
Significant Accounting Policies [Line Items] | |||
Diluted weighted average common shares outstanding | shares | 1,532 | ||
Options Outstanding | |||
Significant Accounting Policies [Line Items] | |||
Diluted weighted average common shares outstanding | shares | 874,571 | 577,529 | |
Preferred Shares | |||
Significant Accounting Policies [Line Items] | |||
Diluted weighted average common shares outstanding | shares | 716,658 | ||
Property and Equipment, Other | |||
Significant Accounting Policies [Line Items] | |||
Property and equipment, estimated useful life | 3 years |
Significant Accounting Polici43
Significant Accounting Policies - Rollforward of Level 3 Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 0 | $ 709,504 |
Change in fair value of warrant liability | 0 | (460,289) |
Conversion of warrants | 0 | (249,215) |
Ending balance | $ 0 | $ 0 |
Significant Accounting Polici44
Significant Accounting Policies - Summary of Computation of Net Income or Loss Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net income (loss) | $ 591,933 | $ 234,353 | $ (70,121) | $ 385,090 | $ 1,100,302 | $ 1,183,044 | $ 1,311,209 | $ 139,153 | $ 1,141,255 | $ 3,733,707 | $ (270,342) |
Accretion of dividends on preferred convertible stock | (1,537,021) | (2,444,954) | |||||||||
Net income attributable to common stockholders - basic | 1,141,255 | 2,196,686 | (2,715,296) | ||||||||
Accretion of dividends on preferred stock | 125,205 | ||||||||||
Adjustment for change in fair value of warrant liability | (460,289) | (85,325) | |||||||||
Net income (loss) attributable to common stockholders - diluted | $ 1,141,255 | $ 1,861,602 | $ (2,800,621) | ||||||||
Weighted average shares used in calculating income (loss) per share | |||||||||||
Basic | 9,485,271 | 3,373,316 | 651,593 | ||||||||
Diluted | 10,361,373 | 4,667,503 | 651,593 | ||||||||
Net income (loss) per share: | |||||||||||
Basic | $ 0.06 | $ 0.02 | $ (0.01) | $ 0.04 | $ 0.14 | $ 0.21 | $ 0.97 | $ (0.70) | $ 0.12 | $ 0.65 | $ (4.17) |
Diluted | $ 0.06 | $ 0.02 | $ (0.01) | $ 0.04 | $ 0.12 | $ 0.16 | $ 0.15 | $ (0.82) | $ 0.11 | $ 0.40 | $ (4.30) |
Significant Accounting Polici45
Significant Accounting Policies - Summary of Potentially Dilutive Securities (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 513,869 | 2,457,897 | 6,436,235 |
Preferred Redeemable And Convertible Stock, Including Accumulated Dividends | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 2,406,894 | 4,891,205 | |
Employee Stock Options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 513,869 | 756,692 | |
Warrants outstanding | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 51,003 | ||
Series G Preferred Stock | Warrants outstanding | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 788,338 |
Cash, Cash Equivalents and Sh46
Cash, Cash Equivalents and Short-Term Investments - Schedule of Cash and Cash Equivalents and Short-term Investments by Significant Investment Category (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Cash | $ 3,040,696 | |||
Short term investments Gross Unrealized Losses | (16,907) | |||
Short term investments | 21,287,064 | |||
Cash and cash equivalents and Short term investments, Amortized Cost | 36,330,039 | |||
Cash and cash equivalents and Short term investments, Estimated Fair Value | 36,313,132 | |||
Cash and cash equivalents | 15,026,068 | $ 45,161,403 | $ 5,335,913 | $ 3,590,745 |
Level 1 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Short term investments Gross Unrealized Losses | (5,540) | |||
Cash equivalents and Short term investments, Amortized Cost | 10,725,550 | |||
Cash and cash equivalents and Short term investments, Estimated Fair Value | 10,720,010 | |||
Level 2 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Short term investments Gross Unrealized Losses | (11,367) | |||
Short term investments | 18,801,805 | |||
Cash and cash equivalents | 3,750,621 | |||
Cash equivalents and Short term investments, Amortized Cost | 22,563,793 | |||
Cash and cash equivalents and Short term investments, Estimated Fair Value | 22,552,426 | |||
Money Market Funds | Level 1 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Cash equivalents | 8,234,751 | |||
Repurchase Agreements | Level 2 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Cash equivalents | 3,000,233 | |||
US Treasury Securities | Level 1 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Short Term Investments Amortized Cost | 2,490,799 | |||
Short term investments Gross Unrealized Losses | (5,540) | |||
Short term investments | 2,485,259 | |||
Commercial Paper | Level 2 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Short Term Investments Amortized Cost | 9,716,093 | |||
Short term investments | 9,716,093 | |||
Corporate Debt Securities | Level 2 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Short Term Investments Amortized Cost | 6,829,191 | |||
Short term investments Gross Unrealized Losses | (9,414) | |||
Short term investments | 6,819,777 | |||
Asset-backed Securities | Level 2 | ||||
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | ||||
Cash equivalents | 750,388 | |||
Short Term Investments Amortized Cost | 3,018,276 | |||
Short term investments Gross Unrealized Losses | (1,953) | |||
Short term investments | $ 3,016,323 |
Cash, Cash Equivalents and Sh47
Cash, Cash Equivalents and Short-Term Investments - Summary of Short-term Investments with Unrealized Losses (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | |
Less Than 12 Months, Estimated Fair Value | $ 11,570,971 |
Less Than 12 Months, Unrealized Losses. | (16,907) |
US Treasury Securities | |
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | |
Less Than 12 Months, Estimated Fair Value | 2,485,259 |
Less Than 12 Months, Unrealized Losses. | (5,540) |
Corporate Debt Securities | |
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | |
Less Than 12 Months, Estimated Fair Value | 6,819,777 |
Less Than 12 Months, Unrealized Losses. | (9,414) |
Asset-backed Securities | |
Cash, Cash Equivalents and Short-Term Investments [Line Itmes] | |
Less Than 12 Months, Estimated Fair Value | 2,265,935 |
Less Than 12 Months, Unrealized Losses. | $ (1,953) |
Cash, Cash Equivalents and Sh48
Cash, Cash Equivalents and Short-Term Investments - Schedule of Contractual Maturities of Short-term Investments (Details) | Dec. 31, 2017USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Due within one year | $ 21,287,064 |
Total | $ 21,287,064 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 436,247 | $ 495,347 | $ 458,734 |
Tenant Improvement | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, estimated useful Life | 6 years | ||
Tenant Improvement | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, estimated useful Life | 10 years | ||
Property and Equipment, Other Types | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, estimated useful Life | 3 years | ||
Property and Equipment, Other Types | Minimum | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, estimated useful Life | 3 years | ||
Property and Equipment, Other Types | Maximum | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, estimated useful Life | 5 years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 3,413,445 | $ 2,747,424 |
Less accumulated depreciation | (2,376,585) | (1,940,338) |
Property and equipment, net | 1,036,860 | 807,086 |
Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,914,911 | 1,314,060 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 169,366 | 165,415 |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 299,227 | 299,227 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 202,218 | 184,233 |
Tenant Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 763,898 | 763,898 |
Other Office Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 63,825 | $ 20,591 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) | Apr. 27, 2017 | Dec. 17, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||||||||
Business acquisition, revenue | $ 12,807,175 | $ 12,448,436 | $ 13,013,143 | $ 11,252,417 | $ 12,625,966 | $ 12,439,279 | $ 9,856,317 | $ 8,512,305 | $ 49,521,171 | $ 43,433,867 | $ 27,793,073 | ||
Business acquisition, cost of goods sold | 26,218,965 | 24,156,792 | 16,148,163 | ||||||||||
Net income (loss) | 591,933 | $ 234,353 | $ (70,121) | $ 385,090 | 1,100,302 | $ 1,183,044 | $ 1,311,209 | $ 139,153 | 1,141,255 | 3,733,707 | (270,342) | ||
Goodwill | $ 3,700,447 | $ 1,249,956 | 3,700,447 | 1,249,956 | 1,249,956 | ||||||||
Business acquisition up front payment | 6,348,730 | $ 4,000,000 | |||||||||||
Antenna Plus | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total consideration paid in cash | $ 6,348,730 | ||||||||||||
Business acquisition, revenue | 5,200,000 | ||||||||||||
Business acquisition, cost of goods sold | 2,300,000 | ||||||||||||
Net income (loss) | $ 400,000 | ||||||||||||
Business acquisition pro forma information description | The pro forma information includes adjustments to amortization and depreciation for intangible assets and property, plant and equipment acquired. The pro forma data are for informational purposes only and are not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2015 or of the results of future operations of the combined business. | ||||||||||||
Goodwill | 2,450,491 | ||||||||||||
Business acquisition up front payment | 6,383,500 | ||||||||||||
Accounts receivable | $ 584,390 | ||||||||||||
Skycross, Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total consideration paid in cash | $ 5,000,000 | ||||||||||||
Business acquisition, revenue | $ 5,200,000 | 5,000,000 | |||||||||||
Business acquisition, cost of goods sold | $ 1,700,000 | 1,700,000 | |||||||||||
Date of asset purchase agreement | Dec. 17, 2015 | ||||||||||||
Goodwill | 1,249,956 | ||||||||||||
Goodwill, expected tax deductible amount | 1,249,956 | ||||||||||||
Business acquisition up front payment | 4,000,000 | ||||||||||||
Business combination, contingent consideration arrangements, description | The $1.0 million of deferred consideration is payable upon the later of (i) the expiration of the Transition Services Agreement between the Company and Skycross which defines transition services to be provided by Skycross to the Company, and (ii) the date on which the Company has received copies of third party approvals with respect to each customer and program that was purchased. | ||||||||||||
Contingent consideration arrangement | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||||||||
Amount to be paid under contingent consideration arrangements, value, low | 0 | ||||||||||||
Amount to be paid under contingent consideration arrangements, value, high | 1,000,000 | ||||||||||||
Accounts receivable | $ 429,267 |
Acquisitions - Summary of Alloc
Acquisitions - Summary of Allocation of Purchase Price for Acquired Identifiable Assets, Liabilities Assumed and Goodwill (Details) - USD ($) | Apr. 27, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 |
Consideration: | ||||
Cash | $ 6,348,730 | $ 4,000,000 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 3,700,447 | $ 1,249,956 | $ 1,249,956 | |
Antenna Plus | ||||
Consideration: | ||||
Cash | $ 6,383,500 | |||
Working capital adjustments | (34,770) | |||
Fair value of total consideration transferred | 6,348,730 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Accounts receivable | 584,390 | |||
Inventory | 432,770 | |||
Fixed assets | 402,958 | |||
Intangible assets | 2,600,000 | |||
Current liabilities | (121,879) | |||
Total identifiable net assets acquired | 3,898,239 | |||
Goodwill | 2,450,491 | |||
Total | $ 6,348,730 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information (Details) - Antenna Plus - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Pro forma sales | $ 51,789,215 | $ 50,940,773 | $ 34,112,518 |
Pro forma income from operations | 1,539,538 | 4,436,281 | 458,075 |
Pro forma net income | $ 1,711,598 | $ 4,717,872 | $ 518,387 |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Paid and Amounts of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Dec. 17, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Consideration: | ||||
Cash | $ 6,348,730 | $ 4,000,000 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | 3,700,447 | $ 1,249,956 | $ 1,249,956 | |
Skycross, Inc. | ||||
Consideration: | ||||
Cash | $ 4,000,000 | |||
Contingent consideration arrangement | 1,000,000 | $ 1,000,000 | $ 1,000,000 | |
Fair value of total consideration transferred | 5,000,000 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
Accounts receivable | 429,267 | |||
Intangible assets | 3,497,000 | |||
Current liabilities | (176,223) | |||
Total identifiable net assets acquired | 3,750,044 | |||
Goodwill | 1,249,956 | |||
Total | $ 5,000,000 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes In Goodwill (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||
Beginning balance | $ 1,249,956 | $ 1,249,956 |
Current period adjustments | 0 | |
Ending balance | 3,700,447 | $ 1,249,956 |
Antenna Plus | ||
Goodwill [Line Items] | ||
Acquisition of Antenna Plus Assets | $ 2,450,491 |
Intangible Assets - Summary of
Intangible Assets - Summary of Acquired Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Acquired Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (years) | 10 years | 10 years | |
Gross Carrying Amount | $ 6,097,000 | $ 3,497,000 | |
Accumulated Amortization | 968,749 | 387,363 | |
Intangibles, Net | $ 5,128,251 | $ 3,109,637 | |
Developed technologies | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (years) | 9 years | 5 years | 10 years |
Gross Carrying Amount | $ 1,080,000 | $ 280,000 | |
Accumulated Amortization | 142,477 | 37,091 | |
Intangibles, Net | $ 937,523 | $ 242,909 | |
Customer relationships | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (years) | 10 years | 10 years | |
Gross Carrying Amount | $ 4,830,000 | $ 3,150,000 | |
Accumulated Amortization | 754,082 | 327,082 | |
Intangibles, Net | $ 4,075,918 | $ 2,822,918 | |
Tradename | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (years) | 3 years | ||
Gross Carrying Amount | $ 120,000 | ||
Accumulated Amortization | 26,667 | ||
Intangibles, Net | $ 93,333 | ||
Non-compete agreement | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Weighted Average Amortization Period (years) | 3 years | 3 years | |
Gross Carrying Amount | $ 67,000 | $ 67,000 | |
Accumulated Amortization | 45,523 | 23,190 | |
Intangibles, Net | $ 21,477 | $ 43,810 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite Lived Intangible Assets [Line Items] | |||
Useful life of intangible asset | 10 years | 10 years | |
Amortization | $ 581,386 | $ 373,350 | $ 14,013 |
Developed technologies | |||
Finite Lived Intangible Assets [Line Items] | |||
Useful life of intangible asset | 9 years | 5 years | 10 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Estimated Annual Amortization of Intangible Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 676,529 | |
2,019 | 655,052 | |
2,020 | 627,667 | |
2,021 | 598,420 | |
2,022 | 563,000 | |
Thereafter | 2,007,583 | |
Intangibles, Net | $ 5,128,251 | $ 3,109,637 |
Long-term Notes Payable (incl59
Long-term Notes Payable (including current portion) and Line of Credit - Additional Information (Details) | Feb. 01, 2017USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2013USD ($)Installment | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) |
Loan Agreement With Silicon Valley Bank | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Liquidity ratio | 125.00% | |||||||
Loan agreement amount | $ 4,000,000 | |||||||
Term of payments | 36 months | |||||||
Date of maturity | Dec. 1, 2018 | |||||||
Minimum EBITDA | $ 750,000 | |||||||
Interest rate fixed percentage | 5.00% | |||||||
Long-term debt | $ 1,333,333 | 1,333,333 | $ 2,666,666 | |||||
Loan Agreement With Silicon Valley Bank | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Unrestricted Cash Required For Line Of Credit Covenant | $ 25,000,000 | |||||||
Silicon Valley Bank | Revolving Credit Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility allowable amount | 3,000,000 | $ 3,000,000 | ||||||
Facility interest rate | 4.50% | |||||||
Liquidity ratio | 125.00% | |||||||
Line of credit facility maturity date | 2018-04 | |||||||
Line of credit | 0 | $ 0 | $ 0 | |||||
Silicon Valley Bank | Revolving Credit Facility | Subsequent Event | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility allowable amount | $ 10,000,000 | |||||||
Liquidity ratio | 125.00% | |||||||
Line of credit facility maturity date | Jan. 31, 2020 | |||||||
Silicon Valley Bank | Revolving Credit Facility | U.S. Prime Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate | 1.25% | |||||||
Silicon Valley Bank | Revolving Credit Facility | Capital Growth Term Loans | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility allowable amount | $ 750,000 | |||||||
Line of credit | $ 0 | $ 0 | ||||||
Line of credit facility maturity date | Feb. 1, 2017 | |||||||
Line of credit facility, payment terms | The growth capital term loan required interest only payments through June 30, 2014 at which point it was to be repaid in 32 equal monthly installments of interest and principal. | |||||||
Number of monthly installments for principal and interest payment | Installment | 32 | |||||||
Payment of principal and accrued interest | $ 55,230 | |||||||
Line of credit facility interest rate | 6.50% |
Long-term Notes Payable (incl60
Long-term Notes Payable (including current portion) and Line of Credit - Schedule of Remaining Principal Payment (Details) - Loan Agreement With Silicon Valley Bank - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Line Of Credit Facility [Line Items] | ||
2,018 | $ 1,333,333 | |
Long-term debt | $ 1,333,333 | $ 2,666,666 |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Details) - Common Stock - Share Repurchase Program August 2017 - USD ($) | 1 Months Ended | 12 Months Ended |
Aug. 31, 2017 | Dec. 31, 2017 | |
Equity Class Of Treasury Stock [Line Items] | ||
Stock repurchase, shares | 135,000 | |
Stock repurachse, average price per share | $ 9.40 | |
Stock repurchase, cost | $ 1,257,100 | |
Board of Directors | ||
Equity Class Of Treasury Stock [Line Items] | ||
Stock approved for repurchase, value | $ 7,000,000 | |
Period of stock repurcahse program | 12 months |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provisions (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
U.S. federal | $ 21,272 | ||
State and local | 2,608 | $ 2,015 | $ 622 |
Total current provision | 23,880 | 2,015 | 622 |
Deferred: | |||
U.S. federal | 483 | 6,124 | |
State and local | 1,322 | 42 | |
Total deferred provision | 1,805 | 6,166 | |
Total tax provision | $ 25,685 | $ 8,181 | $ 622 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
U.S. federal statutory tax rate | 34.00% | 34.00% | 34.00% | |
Valuation allowance | $ 6,453,466 | $ 9,028,241 | ||
Net change in total valuation allowance | $ (2,574,764) | |||
Cumulative change in ownership percentage | 50.00% | |||
Period for cumulative change in ownership | 3 years | |||
Increase in tax expense | $ 2,800,000 | |||
Decrease in net deferred tax assets | 2,800,000 | |||
Changes in liability for uncertain tax benefits | 0 | |||
Income tax interest and penalties accrued | 785 | $ 0 | ||
Income tax interest and penalties | $ 785 | |||
Scenario, Plan | ||||
Income Taxes [Line Items] | ||||
U.S. federal statutory tax rate | 21.00% | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
U.S. federal statutory tax rate | 35.00% | |||
CALIFORNIA | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry forwards | $ 5,715,729 | |||
Net operating loss carry forwards, expire period | 2,028 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry forwards | $ 19,152,650 | |||
Net operating loss carry forwards, expire period | 2,020 | |||
Tax credit carry forwards | $ 936,228 | |||
Tax credit carry forwards, expire period | 2,026 | |||
State | ||||
Income Taxes [Line Items] | ||||
Tax credit carry forwards | $ 1,192,688 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Provision to Statutory Federal Income Tax Rate (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
Income taxes at statutory rates | $ 396,760 | $ 1,272,242 | $ (91,705) |
State income tax, net of federal benefit | 3,910 | 2,054 | 411 |
Permanent items | (5,060) | 68,944 | 32,530 |
Meals and entertainment | 74,755 | 54,375 | 40,796 |
Equity based compensation | (645,512) | 48,385 | 98,637 |
Warrant liability | (156,498) | (34,160) | |
Corporate tax rate change - impact on deferred income taxes | 2,768,458 | ||
Research and development credit | 206,801 | (141,494) | 628,573 |
Federal NOL adjustment | (386,441) | (206,133) | |
Federal return to provision | 53,265 | 11,104 | |
Other federal credits | 112,262 | ||
Other | 15,695 | ||
Change in federal valuation allowance | (2,569,208) | (944,798) | (674,460) |
Total tax provision | $ 25,685 | $ 8,181 | $ 622 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 4,584,606 | $ 6,786,922 |
Capitalization of patent costs, goodwill and amortization | 221,593 | 332,901 |
Capitalization of acquisition costs | 84,640 | 43,523 |
Research and AMT credits | 1,447,479 | 1,689,883 |
Stock based compensation | 82,085 | 160,182 |
Deferred lease obligation | 91,017 | 182,550 |
Other timing differences | 72,787 | 51,314 |
Deferred Tax Assets, Gross | 6,584,207 | 9,247,275 |
Less valuation allowance | (6,453,466) | (9,028,241) |
Total deferred tax assets, net of allowance | 130,741 | 219,034 |
Deferred tax liabilities: | ||
Fixed assets | (104,324) | (219,034) |
Goodwill | (34,388) | (6,166) |
Total deferred tax liabilities | (138,712) | (225,200) |
Total deferred tax liabilities | $ (7,971) | $ (6,166) |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Unrecognized Tax Benefit Activity (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Beginning unrecognized tax benefits | $ 1,532,000 | $ 1,408,000 |
Decreases related to prior year tax positions | (1,001,000) | (53,000) |
Increases related to current year tax positions | 179,000 | 177,000 |
Ending unrecognized tax benefits | $ 710,000 | $ 1,532,000 |
Stockholders' Equity (Deficit67
Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 17, 2016 | Nov. 30, 2003 | Sep. 30, 2003 | Mar. 31, 2001 | Jun. 30, 2000 | Dec. 31, 2017 | Dec. 31, 2003 | Jun. 30, 2009 | Mar. 31, 2008 | Feb. 28, 2007 | Feb. 28, 2006 | Jun. 30, 2005 |
Class Of Stock [Line Items] | ||||||||||||
Proceeds from issuance of common stock | $ 15 | |||||||||||
Offering price per share | $ 76.80 | |||||||||||
Series A Preferred Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares issued | 313,500 | |||||||||||
Preferred convertible stock sold, per share | $ 3.84 | |||||||||||
Proceeds from sale of preferred convertible stock, gross | $ 1.2 | |||||||||||
Preferred stock annual dividend rate per share | 0.0488 | |||||||||||
Preferred stock, liquidation preference per share | 19.20 | |||||||||||
Convertible preferred stock conversion price per share | 21.70 | |||||||||||
Series B Preferred Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares issued | 290,993 | |||||||||||
Preferred convertible stock sold, per share | $ 4.39 | |||||||||||
Proceeds from sale of preferred convertible stock, gross | $ 1.3 | |||||||||||
Additional number of shares issued for services and to satisfy debt obligation | 866,613 | |||||||||||
Proceed from issuance of additional stock | $ 1.2 | |||||||||||
Preferred stock annual dividend rate per share | 0 | |||||||||||
Convertible preferred stock conversion price per share | 24.23 | |||||||||||
Series C Preferred Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares issued | 682,000 | |||||||||||
Preferred convertible stock sold, per share | $ 1 | |||||||||||
Proceeds from sale of preferred convertible stock, gross | $ 0.7 | |||||||||||
Preferred stock annual dividend rate per share | 0 | |||||||||||
Convertible preferred stock conversion price per share | 8.59 | |||||||||||
Series D Preferred Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares issued | 4,091,068 | |||||||||||
Preferred convertible stock sold, per share | $ 0.542 | |||||||||||
Proceeds from sale of preferred convertible stock, gross | $ 2.2 | |||||||||||
Preferred stock annual dividend rate per share | 0.0488 | |||||||||||
Preferred stock, liquidation preference per share | 2.168 | |||||||||||
Convertible preferred stock conversion price per share | 5.42 | |||||||||||
Series E Preferred Redeemable Convertible Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares issued | 7,984,727 | 7,984,727 | ||||||||||
Preferred convertible stock sold, per share | $ 1.11 | $ 1.11 | ||||||||||
Preferred stock, liquidation preference per share | 4.44 | |||||||||||
Series F Preferred Redeemable Convertible Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares issued | 4,734,374 | |||||||||||
Preferred convertible stock sold, per share | $ 1.30 | |||||||||||
Preferred stock, liquidation preference per share | 5.20 | |||||||||||
Series G Preferred Stock | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock sold, per share | $ 1.30 | $ 1.30 | ||||||||||
Preferred stock, liquidation preference per share | $ 5.20 | |||||||||||
Junior Convertible Preferred Stock [Member] | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Preferred convertible stock, shares outstanding | 1,678,450 | |||||||||||
Preferred stock ownership percentage | 50.00% | |||||||||||
Preferred Convertible Stock | IPO | ||||||||||||
Class Of Stock [Line Items] | ||||||||||||
Conversion of stock, shares converted | 6,244,174 | |||||||||||
Conversion of stock, shares issued | 753,611 | |||||||||||
Preferred stock dividends converted into common stock | 505,576 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2017 | [1] | Dec. 31, 2016 |
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | 1,987,682 | 1,901,140 | |
Warrants Issued and Outstanding | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | 51,003 | 51,003 | |
Stock Option Awards Issued and Outstanding | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | 1,203,627 | 1,040,387 | |
Authorized for Grants under the 2016 Equity Incentive Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | 633,052 | 709,750 | |
Authorized for grants under the 2016 Employee Stock Purchase Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | 100,000 | 100,000 | |
[1] | Treasury stock in the amount of 135,000 are excluded from the table above. |
Stockholders' Equity - Schedu69
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Parenthetical) (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Treasury stock, shares at cost | 135,000 | 0 |
Preferred Redeemable Converti70
Preferred Redeemable Convertible Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 17, 2016 | Jun. 30, 2012 | Jun. 30, 2009 | Mar. 31, 2008 | Feb. 28, 2007 | Feb. 28, 2006 | Jun. 30, 2005 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class Of Stock [Line Items] | ||||||||||
Outstanding convertible promissory notes and accrued interest | $ 7.1 | |||||||||
Common stock, offering price per share | $ 76.80 | |||||||||
Common Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Conversion of stock, shares issued | 127,143 | |||||||||
Series E Preferred Redeemable Convertible Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred convertible stock, shares issued | 7,984,727 | 7,984,727 | ||||||||
Preferred convertible stock sold, per share | $ 1.11 | $ 1.11 | ||||||||
Gross proceeds from sale of convertible preferred stock | $ 8.8 | $ 8.8 | ||||||||
Conversion of preferred stock to common stock, conversion price | 11.11 | |||||||||
Series F Preferred Redeemable Convertible Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred convertible stock, shares issued | 4,734,374 | |||||||||
Preferred convertible stock sold, per share | $ 1.30 | |||||||||
Gross proceeds from sale of convertible preferred stock | $ 6.2 | |||||||||
Conversion of preferred stock to common stock, conversion price | 13 | |||||||||
Series G Preferred Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred convertible stock sold, per share | $ 1.30 | $ 1.30 | ||||||||
Gross proceeds from sale of convertible preferred stock | $ 4.3 | $ 4.3 | ||||||||
Preferred stock, shares issued upon conversion | 463,856 | 6,216,607 | ||||||||
Preferred stock, conversion price per share | $ 1.30 | $ 1.04 | ||||||||
Conversion of preferred stock to common stock, conversion price | $ 13 | |||||||||
Senior Preferred Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Dividend rate, percentage | 8.00% | |||||||||
Preferred convertible stock, shares outstanding | 4,875,000 | |||||||||
Preferred stock ownership percentage | 50.00% | |||||||||
Firm Commitment | Common Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Aggregate proceeds from issuance of private placement | $ 15 | |||||||||
Common stock, offering price per share | $ 76.80 | |||||||||
Preferred Redeemable Convertible Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Preferred convertible stock, shares outstanding | 23,271,702 | |||||||||
Conversion of stock, shares issued | (23,271,702) | |||||||||
Preferred Redeemable Convertible Stock | IPO | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Conversion of stock, shares converted | 23,271,702 | |||||||||
Conversion of stock, shares issued | 2,327,122 | |||||||||
Preferred stock dividends converted into common stock | 1,451,631 |
Preferred Redeemable Converti71
Preferred Redeemable Convertible Stock - Schedule of Preferred Redeemable Convertible Stock (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Class Of Stock [Line Items] | ||
Effect of accretion to redemption value | $ 1,356,707 | $ 2,157,550 |
Conversion of warrants | $ 249,215 | |
Preferred Redeemable Convertible Stock | ||
Class Of Stock [Line Items] | ||
Beginning balance, Shares | 23,271,702 | |
Conversion of warrants, shares | (23,271,702) | |
Ending balance, Shares | 23,271,702 | |
Beginning balance, Amount | $ 43,106,906 | |
Effect of accretion to redemption value | 1,356,707 | |
Conversion of warrants | $ (44,463,613) | |
Ending balance, Amount | $ 43,106,906 |
Stock Options - Additional Info
Stock Options - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 18, 2015 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, reserved for future issuance | 1,987,682 | [1] | 1,901,140 | ||
Weighted average grant-date fair value of options granted | $ 6.02 | $ 1.23 | $ 0.84 | ||
Stock options vested aggregate intrinsic value | $ 3,596,624 | $ 7,770,086 | |||
Stock options expected to vest aggregate intrinsic value | $ 1,469,154 | $ 4,569,243 | |||
Total grant date fair value of shares vested | 322,804 | 176,597 | 345,174 | ||
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to unvested stock options and restricted stock granted under the plans | $ 2,453,342 | $ 522,818 | $ 214,304 | ||
Unrecognized compensation cost related to unvested stock options and restricted stock granted under the plans, period for recognition | 3 years | ||||
Restricted Stock | Chief Financial Officer And Chief Operating Officer | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Restricted common stock granted | 57,475 | ||||
Fair value of common stock granted, per share | $ 2 | ||||
Vested percentage of common stock | 100.00% | ||||
Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Service period for stock options granted to employees | 1 year | ||||
Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Service period for stock options granted to employees | 4 years | ||||
Authorized for Grants under the 2016 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, reserved for future issuance | 633,052 | [1] | 709,750 | ||
Rolled from 2013 Equity Incentive Plan to 2016 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, reserved for future issuance | 429,750 | ||||
Authorized for Grants under the 2013 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock, reserved for future issuance | 0 | 0 | |||
Common stock authorized under equity incentive plan | 1,200,000 | ||||
Vested options cancellation days, after termination of employee | 90 days | ||||
[1] | Treasury stock in the amount of 135,000 are excluded from the table above. |
Stock Options - Weighted Averag
Stock Options - Weighted Average Assumptions Used in Estimating Fair Value of Stock Options (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based compensation arrangement by share-based payment award, Fair value assumptions and methodology | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 39.37% | 41.82% | 56.74% |
Expected term (years) | 6 years 21 days | 6 years 25 days | 5 years 5 months 1 day |
Risk-free interest rate | 1.90% | 1.60% | 1.70% |
Stock Options - Summary of Outs
Stock Options - Summary of Outstanding Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Number of shares, Beginning balance | 1,040,387 | 756,692 | 504,550 | |
Number of shares, Granted | 471,144 | 359,319 | 512,402 | |
Number of shares, Exercised | (284,455) | (58,155) | (24,260) | |
Number of shares, Expired/Forfeited | (23,449) | (17,469) | (236,000) | |
Number of shares, Ending balance | 1,203,627 | 1,040,387 | 756,692 | 504,550 |
Number of shares, Vested and exercisable | 523,566 | |||
Number of shares, Vested and expected to vest | 1,203,627 | |||
Weighted average exercise price, Beginning balance | $ 2.25 | $ 2.10 | $ 2.60 | |
Weighted average exercise price, Granted | 14.72 | 2.60 | 2 | |
Weighted average exercise price, Exercised | 2.07 | 2.36 | 3.19 | |
Weighted average exercise price, Expired/Forfeited | 8.22 | 2.13 | 2.77 | |
Weighted average exercise price, Ending balance | 7.06 | $ 2.25 | $ 2.10 | $ 2.60 |
Weighted average exercise price, Vested and exercisable | 2.21 | |||
Weighted average exercise price, Vested and expected to vest | $ 7.06 | |||
Weighted average remaining contractual term | 8 years 1 month 6 days | 7 years 9 months 18 days | 7 years 7 months 6 days | 5 years 9 months 18 days |
Weighted average remaining contractual term, Granted | 5 years 2 months 12 days | 9 years 4 months 24 days | 9 years 2 months 12 days | |
Weighted average remaining contractual term, Exercised | 5 years 2 months 12 days | 3 years 6 months | ||
Weighted average remaining contractual term, Expired/Forfeited | 2 years 7 months 6 days | |||
Weighted average remaining contractual term, Vested and exercisable | 7 years | |||
Weighted average remaining contractual term, Vested and expected to vest | 8 years 1 month 6 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Chief Executive Officer | ||||
Commitment And Contingencies [Line Items] | ||||
Contingent Severance cost | $ 575,000 | |||
Severance cost, description | These agreements provide severance in the aggregate amount of $575,000 for termination without cause as defined in the agreements. | |||
Office Space and Research Facilities Lease | ||||
Commitment And Contingencies [Line Items] | ||||
Operating leases, rent expense | $ 805,271 | $ 672,526 | $ 742,829 | |
Lease agreement description | The new San Diego facility lease agreement included a tenant improvement allowance which provided for the landlord to pay for tenant improvements on behalf of the Company up to $515,000. Based on the terms of this landlord incentive and involvement of the Company in the construction process, the leasehold improvements purchased under the landlord incentive were determined to be property of the Company. | |||
Lease expiration date | Dec. 31, 2020 | |||
Office Space and Research Facilities Lease | Maximum | ||||
Commitment And Contingencies [Line Items] | ||||
Payments for tenant improvements allowance | $ 515,000 |
Commitments and Contingencies76
Commitments and Contingencies - Schedule Future Minimum Lease Payments Under Operating Leases (Detail) | Dec. 31, 2017USD ($) |
Future minimum lease payment | |
2,018 | $ 978,873 |
2,019 | 825,193 |
2,020 | 502,461 |
2,021 | 134,529 |
2,022 | 22,527 |
Total future minimum lease payment | $ 2,463,583 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Details) - Vendor | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
China | |||
Concentration Risk [Line Items] | |||
Number of vendors | 2 | 2 | 2 |
Customer Concentration Risk | Net Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Customer Concentration Risk | Net Revenue | China | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 67.00% | 74.00% | 64.00% |
Customer Concentration Risk | Trade Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% |
Concentration of Credit Risk 78
Concentration of Credit Risk - Schedule of Concentration of Sales and Accounts Receivable (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
Net Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.00% | 20.00% | 15.00% |
Net Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 31.00% | 28.00% |
Net Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 8.00% | 1.00% |
Trade Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | |
Trade Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 13.00% | |
Trade Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 18.00% | |
Trade Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 13.00% | |
Trade Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 9.00% | 16.00% |
Concentration of Credit Risk 79
Concentration of Credit Risk - Schedule of Revenue by Geography (Details) - Customer Concentration Risk - Net Revenue | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 10.00% | 10.00% |
China | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 67.00% | 74.00% | 64.00% |
Other Asia | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 11.00% | 21.00% |
North America | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 18.00% | 10.00% | 9.00% |
Europe | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 5.00% | 5.00% | 6.00% |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - Chief Executive Officer - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Note to employee | $ 266,282 | |
Forgiveness of note to employee | $ 266,282 | |
Additional expense related to loan forgiveness to employee | $ 236,414 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Revolving Credit Facility - Silicon Valley Bank - USD ($) | 1 Months Ended | 12 Months Ended |
Jan. 31, 2018 | Dec. 31, 2017 | |
Subsequent Event [Line Items] | ||
Line of credit facility allowable amount | $ 3,000,000 | |
Liquidity ratio | 125.00% | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Line of credit facility allowable amount | $ 10,000,000 | |
Line of credit facility borrowing base limitation percentage of eligible receivables | 80.00% | |
Liquidity ratio | 125.00% | |
Interest expense borrowings | $ 3,000 | |
Line of credit facility frequency of payments on monthly installments | Borrowings outstanding under the term loan under the amended and restated loan and security agreement will continue to be repaid in equal monthly installments of interest and principal and matures on December 1, 2018. | |
Line of credit facility maturity date | Jan. 31, 2020 | |
Subsequent Event | The Wall Street Journal Prime Rate | ||
Subsequent Event [Line Items] | ||
Basis spread on variable interest rate | 1.00% | |
Line of credit facility interest rate description | The Company will be required to pay interest on borrowings outstanding, if any, under the revolving line of credit at a floating rate per annum equal to 1% above the Wall Street Journal prime rate (or, if unavailable, the Silicon Valley Bank prime rate) on a monthly basis, so long as the Company maintains a liquidity ratio of cash and cash equivalents plus accounts receivable to outstanding debt under the Amended Loan Agreement minus deferred revenue of 1.50 to 1.00. If this liquidity ratio is not met, the Company will be subject to a minimum interest charge of $3,000 per month and borrowings outstanding, if any, under the revolving line of credit will accrue interest at a floating rate per annum equal to 2% above the Wall Street Journal prime rate (or, if unavailable, the Silicon Valley Bank prime rate) prime rate on a monthly basis. | |
Line of credit facility floating rate not met | 2.00% | |
Subsequent Event | Prime Rate | ||
Subsequent Event [Line Items] | ||
Liquidity ratio | 150.00% |
Quarterly Financial Informati82
Quarterly Financial Information (unaudited) - Summary of Quarterly Results of Operations (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 12,807,175 | $ 12,448,436 | $ 13,013,143 | $ 11,252,417 | $ 12,625,966 | $ 12,439,279 | $ 9,856,317 | $ 8,512,305 | $ 49,521,171 | $ 43,433,867 | $ 27,793,073 |
Gross Profit | 5,888,332 | 6,003,892 | 6,121,524 | 5,288,458 | 5,476,403 | 5,576,287 | 4,546,761 | 3,677,624 | 23,302,206 | 19,277,075 | 11,644,910 |
Total operating expenses | 5,418,089 | 5,803,260 | 6,248,678 | 4,862,979 | 4,345,198 | 4,345,965 | 3,572,915 | 3,560,830 | 22,333,006 | 15,824,908 | 11,975,611 |
Net income (loss) | $ 591,933 | $ 234,353 | $ (70,121) | $ 385,090 | $ 1,100,302 | $ 1,183,044 | $ 1,311,209 | $ 139,153 | $ 1,141,255 | $ 3,733,707 | $ (270,342) |
Basic net income (loss) per share | $ 0.06 | $ 0.02 | $ (0.01) | $ 0.04 | $ 0.14 | $ 0.21 | $ 0.97 | $ (0.70) | $ 0.12 | $ 0.65 | $ (4.17) |
Diluted net income (loss) per share | $ 0.06 | $ 0.02 | $ (0.01) | $ 0.04 | $ 0.12 | $ 0.16 | $ 0.15 | $ (0.82) | $ 0.11 | $ 0.40 | $ (4.30) |