Airgain (AIRG) 10-Q 5 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Trading Symbol	AIRG
Entity Registrant Name	AIRGAIN, INC.
Entity Central Index Key	0001272842
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity File Number	001-37851
Entity Tax Identification Number	95-4523882
Entity Address, Address Line One	3611 Valley Centre Drive
Entity Address, Address Line Two	Suite 150
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	760
Local Phone Number	579-0200
Entity Common Stock, Shares Outstanding		9,767,957
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common shares, par value $0.0001 per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 35,795	$ 13,197
Short-term investments	2,184	21,686
Trade accounts receivable	4,182	7,656
Inventory	1,077	1,193
Prepaid expenses and other current assets	1,469	1,361
Total current assets	44,707	45,093
Property and equipment, net	2,323	2,126
Goodwill	3,700	3,700
Customer relationships, net	2,748	3,110
Intangible assets, net	574	687
Other assets	197	10
Total assets	54,249	54,726
Current liabilities:
Accounts payable	3,078	3,838
Accrued bonus	1,220	1,385
Accrued liabilities and other	1,653	1,536
Total current liabilities	5,951	6,759
Deferred tax liability	44	52
Deferred rent obligation under operating lease	190	11
Total liabilities	6,185	6,822
Stockholders’ equity:
Common stock and additional paid-in capital, par value $0.0001, 200,000 shares authorized; 10,302 shares issued and 9,768 shares outstanding at September 30, 2020; and 10,146 shares issued and 9,681 shares outstanding at December 31, 2019	99,597	96,623
Treasury stock, at cost: 534 shares and 465 shares at September 30, 2020, and December 31, 2019, respectively	(5,267)	(4,659)
Accumulated other comprehensive income	1	8
Accumulated deficit	(46,267)	(44,068)
Total stockholders’ equity	48,064	47,904
Commitments and contingencies (note 12)
Total liabilities and stockholders’ equity	$ 54,249	$ 54,726

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
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	10,302,000	10,146,000
Common stock, shares outstanding	9,768,000	9,681,000
Treasury stock, shares at cost	534,000	465,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Sales	$ 13,010	$ 13,142	$ 35,672	$ 42,713
Cost of goods sold	6,981	7,067	18,924	23,167
Gross profit	6,029	6,075	16,748	19,546
Operating expenses:
Research and development	2,231	2,403	6,873	6,944
Sales and marketing	1,559	1,461	4,477	5,964
General and administrative	2,439	2,416	7,506	6,168
Total operating expenses	6,229	6,280	18,856	19,076
Income (loss) from operations	(200)	(205)	(2,108)	470
Other expense (income):
Interest income, net	(23)	(183)	(194)	(558)
Other expense			11
Total other income	(23)	(183)	(183)	(558)
Income (loss) before income taxes	(177)	(22)	(1,925)	1,028
Provision for income taxes	84	113	274	165
Net income (loss)	$ (261)	$ (135)	$ (2,199)	$ 863
Net income (loss) per share:
Basic	$ (0.03)	$ (0.01)	$ (0.23)	$ 0.09
Diluted	$ (0.03)	$ (0.01)	$ (0.23)	$ 0.09
Weighted average shares used in calculating income (loss) per share:
Basic	9,710	9,711	9,694	9,678
Diluted	9,710	9,711	9,694	10,083

Condensed Statements of Compreh

Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (261)	$ (135)	$ (2,199)	$ 863
Unrealized gain (loss) on available-for-sale securities, net of deferred taxes	(15)	1	(7)	24
Comprehensive income (loss)	$ (276)	$ (134)	$ (2,206)	$ 887

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock and Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance at Dec. 31, 2018	$ 45,147	$ 93,584	$ (3,432)	$ (11)	$ (44,994)
Stock-based compensation		1,605
Issuance of shares for stock purchase plan		779
Repurchases of common stock			(799)
Other comprehensive income (loss)				24
Net income (loss)	863				863
Ending balance at Sep. 30, 2019	47,619	95,968	(4,231)	13	(44,131)
Beginning balance at Jun. 30, 2019	47,620	95,229	(3,625)	12	(43,996)
Stock-based compensation		549
Issuance of shares for stock purchase plan		190
Repurchases of common stock			(606)
Other comprehensive income (loss)				1
Net income (loss)	(135)				(135)
Ending balance at Sep. 30, 2019	47,619	95,968	(4,231)	13	(44,131)
Beginning balance at Dec. 31, 2019	47,904	96,623	(4,659)	8	(44,068)
Stock-based compensation		1,956
Issuance of shares for stock purchase plan		1,018
Repurchases of common stock			(608)
Other comprehensive income (loss)				(7)
Net income (loss)	(2,199)				(2,199)
Ending balance at Sep. 30, 2020	48,064	99,597	(5,267)	1	(46,267)
Beginning balance at Jun. 30, 2020	46,779	98,036	(5,267)	16	(46,006)
Stock-based compensation		633
Issuance of shares for stock purchase plan		928
Other comprehensive income (loss)				(15)
Net income (loss)	(261)				(261)
Ending balance at Sep. 30, 2020	$ 48,064	$ 99,597	$ (5,267)	$ 1	$ (46,267)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ (2,199,000)	$ 863,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	348,000	373,000
Loss on disposal of property and equipment	11,000
Amortization	475,000	491,000
Amortization of premium (discounts) on investments, net	49,000	(248,000)
Stock-based compensation	1,956,000	1,605,000
Deferred tax liability	(8,000)
Changes in operating assets and liabilities:
Trade accounts receivable	3,474,000	(1,551,000)
Inventory	116,000	86,000
Prepaid expenses and other assets	(120,000)	(500,000)
Accounts payable	(756,000)	305,000
Accrued bonus	(165,000)	(674,000)
Accrued liabilities and other	296,000	125,000
Net cash provided by operating activities	3,477,000	875,000
Cash flows from investing activities:
Purchases of available-for-sale securities	(753,000)	(30,080,000)
Maturities of available-for-sale securities	20,199,000	29,520,000
Purchases of property and equipment	(560,000)	(1,045,000)
Net cash provided by (used in) investing activities	18,886,000	(1,605,000)
Cash flows from financing activities:
Repurchases of common stock	(608,000)	(799,000)
Proceeds from issuance of common stock, net	1,018,000	779,000
Net cash provided by (used in) financing activities	410,000	(20,000)
Net increase (decrease) in cash, cash equivalents and restricted cash	22,773,000	(750,000)
Cash, cash equivalents, and restricted cash; beginning of period	13,197,000	13,621,000
Cash, cash equivalents, and restricted cash; end of period	35,970,000	12,871,000
Supplemental disclosure of cash flow information:
Taxes paid	137,000	54,000
Supplemental disclosure of non-cash investing and financing activities:
Accrual of property and equipment		4,000
Cash and cash equivalents	35,795,000	$ 12,871,000
Restricted cash included in other assets	$ 175,000

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Basis of Presentation	Note 1. Description of Business and Basis of Presentation Business Description 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 markets, including consumer, enterprise and automotive. 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, design and test facilities in the United States, United Kingdom, China, and Taiwan. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, from which the balance sheet information herein was derived. The unaudited condensed balance sheet as of December 31, 2019, included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. The unaudited condensed statements of operations for the three and nine months ended September 30, 2020 and 2019, and the balance sheet data as of September 30, 2020, have been prepared on the same basis as the audited financial statements. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation of results of the Company’s operations and financial position for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2020, or for any future period. 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. 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. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, restricted 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. 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 September 30, 2020, 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, in the unaudited condensed statements 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. 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. In those instances the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying balance sheet. The Company also manufactures certain of its products at its facility located in Scottsdale, Arizona. Inventory is stated at the lower of cost or net realizable value. 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 (FIFO) method. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. As of September 30, 2020, 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 September 30, 2020, and December 31, 2019, there is no provision for excess and obsolete inventories.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies During the three and nine months ended September 30, 2020, there have been no material changes to the Company’s significant accounting policies as described in the Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) The Company will adopt the new accounting standard using the modified retrospective transition option as of the effective date on January 1, 2021. The Company’s initial evaluation of its current leases does not indicate that the adoption of this standard will have an impact on its statements of operations. The Company expects that the adoption of the standard will have an impact on its balance sheets for the recognition of certain operating leases as right-of-use assets and lease liabilities In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Effective Dates . In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by removing Step 2 which requires a hypothetical purchase price allocation and may require the services of valuation experts. An entity will, therefore, perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company in annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 202 2 , with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . The Company intends to early adopt ASU 2017-04 and believes the standard will have no impact on its ongoing financial reporting. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326), Targeted Transition Relief Accounting Standards Codification ( In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU include removing exceptions to incremental intraperiod tax allocation of losses and gains from different financial statement components, exceptions to the method of recognizing income taxes on interim period losses, and exceptions to deferred tax liability recognition related to foreign subsidiary investments. In addition, the ASU requires that entities recognize franchise tax based on an incremental method and requires an entity to evaluate the accounting for step-ups in the tax basis of goodwill as inside or outside of a business combination. Based on the Company’s emerging growth company status the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. We have not early adopted this ASU as of September 30, 2020. The ASU is currently not expected to have a material impact on the Company’s financial statements.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note 3. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted income (loss) per common share using the treasury stock method. The following table presents the computation of net income (loss) per share (in thousands except per share data) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator: Net income (loss) $ (261 ) $ (135 ) $ (2,199 ) $ 863 Denominator: Weighted average common shares outstanding - basic 9,710 9,711 9,694 9,678 Plus dilutive effect of potential common shares — — — 405 Weighted average common shares outstanding - diluted 9,710 9,711 9,694 10,083 Net income (loss) per share: Basic $ (0.03 ) $ (0.01 ) $ (0.23 ) $ 0.09 Diluted $ (0.03 ) $ (0.01 ) $ (0.23 ) $ 0.09 Diluted weighted average common shares outstanding for the nine months ended September 30, 2019 includes 3,000 warrants and 402,000 options . Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows (in thousands) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Stock options and restricted stock 1,451 721 1,622 457 Warrants outstanding 3 51 51 — Total 1,454 772 1,673 457

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	9 Months Ended
	Sep. 30, 2020
Cash And Cash Equivalents [Abstract]
Cash, Cash Equivalents and Short-Term Investments	Note 4. Cash, Cash Equivalents and Short-Term Investments The following tables show the Company’s cash and cash equivalents and short-term investments by significant investment category as of September 30, 2020, and December 31, 2019 (in thousands) September 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Cash and cash equivalents Short-term investments Cash $ 2,577 $ — $ — $ 2,577 $ 2,577 $ — Level 1: Money market funds 33,218 — — 33,218 33,218 — U.S. treasury securities — — — — — — Subtotal 33,218 — — 33,218 33,218 — Level 2: Commercial paper — — — — — — Corporate debt obligations 1,432 1 — 1,433 — 1,433 Repurchase agreements — — — — — — Asset-backed securities 751 — — 751 — 751 Subtotal 2,183 1 — 2,184 — 2,184 Total $ 37,978 $ 1 $ - $ 37,979 $ 35,795 $ 2,184 December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Cash and cash equivalents Short-term investments Cash $ 3,950 $ — $ — $ 3,950 $ 3,950 $ — Level 1: Money market funds 5,500 — — 5,500 5,500 — U.S. treasury securities 3,078 2 (1 ) 3,079 — 3,079 Subtotal 8,578 2 (1 ) 8,579 5,500 3,079 Level 2: Commercial paper 8,920 — — 8,920 747 8,173 Corporate debt obligations 5,922 5 (1 ) 5,926 — 5,926 Repurchase agreements 3,000 — — 3,000 3,000 — Asset-backed securities 4,505 3 — 4,508 — 4,508 Subtotal 22,347 8 (1 ) 22,354 3,747 18,607 Total $ 34,875 $ 10 $ (2 ) $ 34,883 $ 13,197 $ 21,686 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 model 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 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 September 30, 2020, and December 31, 2019, the Company does not consider any of its investments to be other-than temporarily impaired.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Property and Equipment	Note 5. Property and Equipment Depreciation and amortization of property and equipment is calculated on the straight-line method based on the shorter of the estimated useful life or the term of the lease for tenant improvements and three to fifteen years for all other property and equipment. Property and equipment consist of the following (in thousands) September 30, 2020 December 31, 2019 Computers and software $ 575 $ 572 Furniture, fixtures, and equipment 355 299 Manufacturing and testing equipment 3,864 3,444 Construction in process 26 18 Leasehold improvements 932 911 5,752 5,244 Less accumulated depreciation (3,429 ) (3,118 ) $ 2,323 $ 2,126 Depreciation expense was $106,000 and $105,000 for the three months ended September 30, 2020 and 2019, respectively, and $348,000 and $373,000 for the nine months ended September 30, 2020 and 2019, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets	Note 6. Intangible Assets The following is a summary of the Company’s acquired intangible assets (dollars in thousands) Weighted average amortization period (years) Gross carrying amount Accumulated amortization Intangibles, net September 30, 2020 Customer relationships 10 $ 4,830 $ 2,082 $ 2,748 Developed technologies 9 1,080 506 574 Tradename 3 120 120 — Total intangible assets, net $ 6,030 $ 2,708 $ 3,322 December 31, 2019 Customer relationships 10 $ 4,830 $ 1,720 $ 3,110 Developed technologies 9 1,080 406 674 Tradename 3 120 107 13 Total intangible assets, net $ 6,030 $ 2,233 $ 3,797 The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table (in thousands) Estimated future amortization 2020 (remaining three months) $ 154 2021 598 2022 563 2023 563 2024 563 Thereafter 881 Total $ 3,322 Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors. Amortization expense was $153,000 and $163,000 for the three months ended September 30, 2020 and 2019, respectively, and $475,000 and $491,000 for the nine months ended September 30, 2020 and 2019, respectively.

Notes Payable and Line of Credi

Notes Payable and Line of Credit	9 Months Ended
	Sep. 30, 2020
Long Term Debt [Abstract]
Notes Payable and Line of Credit	No t In January 2018 the Company entered into a second amended and restated loan and security agreement (the Loan Agreement) with Silicon Valley Bank. Under this Loan Agreement the aggregate principal amount available under the revolving line of credit is $10.0 million and requires the Company maintain a ratio of cash and cash equivalents plus accounts receivable to outstanding debt under the Loan Agreement minus deferred revenue of 1.25 to 1.00. The Loan Agreement also set a borrowing base limit of 80% of the aggregate face amount of all eligible receivables. No balance was owed on the line of credit as of December 31, 2019. The revolving line of credit matured on January 31, 2020.

Treasury Stock

Treasury Stock	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Treasury Stock	Note 8. Treasury Stock In August 2017 the Company’s Board of Directors (the Board) approved a share repurchase program (the 2017 Program) pursuant to which the Company could purchase up to $7.0 million of shares of its common stock over the twelve-month twelve-month On September 9, 2019, the Board approved a new share repurchase program (the 2019 Program) pursuant to which the Company could purchase up to $7.0 million of shares of its common stock over the following twelve-months twelve-month During the three and nine months ended September 30, 2020, the Company repurchased approximately 0 and 69,000 shares of common stock, respectively, under the share repurchase program. For the nine months ended September 30, 2020, the shares were repurchased at an average price of $8.78 per share for a total cost of $0.6 million. Since inception of the 2019 Program through September 30, 2020, the Company repurchased a total of approximately 162,000 shares of the Company’s stock for a total cost of $1.6 million.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 9. Income Taxes The Company’s effective income tax rate was (14.2)% and 16.1% for the nine months ended September 30, 2020 and 2019, respectively. The primary driver of the effective tax rate is the valuation allowance offsetting the Company’s net deferred tax assets. Management assesses its deferred tax assets quarterly to determine whether all or any portion of the asset is more likely than not unrealizable under ASC Topic 740 Income Taxes

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Class Of Stock Disclosures [Abstract]
Stockholders' Equity	Note 10. Stockholders’ Equity The following table presents common stock reserved for future issuance (1) (in thousands) September 30, 2020 December 31, 2019 Warrants issued and outstanding 51 51 Stock option awards issued and outstanding 1,792 1,600 Authorized for grants under the 2016 Equity Incentive Plan (2) 340 401 Authorized for grants under the 2016 Employee Stock Purchase Plan (3) 256 186 2,439 2,238 (1) (2) (3)

Stock Based Compensation

Stock Based Compensation	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock Based Compensation	Note 11. Stock Based Compensation Stock Options The following table summarizes the outstanding stock option activity during the period indicated (shares in thousands) Weighted average Number of shares Exercise price Remaining contractual term (years) Balance at December 31, 2019 1,600 $ 9.98 Granted 402 10.05 Exercised (105 ) 8.24 Expired/Forfeited (105 ) 10.42 Balance at September 30, 2020 1,792 10.07 7.8 Vested and exercisable at September 30, 2020 947 9.27 6.9 Vested and expected to vest at September 30, 2020 1,792 10.07 7.8 The weighted average grant date fair value of options granted during the nine months ended September 30, 2020 and for the year ended December 31, 2019, was $4.30 and $4.93, respectively. For fully vested stock options, the aggregate intrinsic value as of September 30, 2020 and December 31, 2019, was $4.1 million and $2.3 million, respectively. For stock options expected to vest, the aggregate intrinsic value as of September 30, 2020, and December 31, 2019, was $2.0 million and $0.3 million, respectively. At September 30, 2020, and December 31, 2019, there was $3.5 million and $3.2 million, respectively, of total unrecognized compensation cost related to unvested stock options granted under the Company’s equity plans. That cost is expected to be recognized over the next four years and is based on the date the options were granted. Restricted Stock The following table summarizes the Company's Restricted Stock Unit (RSU) activity during the period indicated (shares in thousands) Restricted stock units Weighted average grant date fair value Non-vested balance at December 31, 2019 80 $ 11.43 Grants 151 Vested and released (28 ) Non-vested balance at September 30, 2020 203 10.53 As of September 30, 2020, there was $1.7 million of total unrecognized compensation cost related to unvested RSUs having a weighted average remaining contractual term of 1.6 years. Employee Stock Purchase Plan (ESPP) The Company maintains the Employee Stock Purchase Plan (ESPP) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is implemented through consecutive 6-month offering periods commencing on March 1 and September 1 of each year. The first offering period under the ESPP commenced on March 1, 2019. The purchase price is set at 85% of the fair market value of the Company's common stock on either the first or last trading day of the offering period, whichever is lower. Annual contributions are limited to the lower of 20% of an employee's eligible compensation or such other limits as apply under Section 423 of the Internal Revenue Code. The ESPP is intended to qualify as an employee stock purchase plan for purposes of Section 423 of the Internal Revenue Code. Based on the 15% discount and the fair value of the option feature of the ESPP, it is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company currently uses authorized and unissued shares to satisfy share award exercises. Under the ESPP the Company received proceeds of $182,000 from the issuances of approximately 27,000 shares in February and August

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 12. Commitments and Contingencies (a) Operating Leases The Company has entered into lease agreements for office space and research facilities in San Diego County, California; Melbourne, Florida; Scottsdale, Arizona; Taipei, Taiwan; Shenzhen and Jiangsu, China; and Cambridgeshire, United Kingdom. Rent expense was $284,000 and $239,000 for the three months ended September 30, 2020 and 2019, respectively, and $832,000 and $729,000 for the nine months ended September 30, 2020 and 2019, respectively. With the Company’s recent five-year The future minimum lease payments required under operating leases in effect at September 30, 2020, were as follows (in thousands) Year ending: 2020 (remaining three months) $ 202 2021 992 2022 719 2023 705 2024 686 2025 615 $ 3,919 (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) Supply Agreement In September 2020 the Company entered into a supply agreement with a vendor to purchase up to $2.0 million of inventory during the initial term of the agreement through December 31, 2022. As of September 30, 2020, no amounts had been paid under this supply agreement.

Concentration of Credit Risk

Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2020
Risks And Uncertainties [Abstract]
Concentration of Credit Risk	Note 13. 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 three and nine months ended September 30, 2020 and 2019, and customers that accounted for 10% or more of total trade accounts receivable at September 30, 2020 and 2019. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Percentage of net revenue Customer A 32% 34% 33% 38% Customer B 15 18 10 14 Customer C 10 6 7 6 Customer D 4 10 1 3 As of September 30, 2020 2019 Percentage of gross trade accounts receivable Customer A 17% 13% Customer B 15 38 Customer C 13 15 Customer D 13 5 (b) Concentration of Purchases During the three and nine months ended September 30, 2020, the Company’s products were primarily manufactured by two vendors in China and by the Company’s Arizona facility.

Disaggregated Revenue

Disaggregated Revenue	9 Months Ended
	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Disaggregated Revenue	Note 14. Disaggregated Revenue Disaggregated revenue are as follows (in thousands) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 By Sales Channel: Fulfillment distributors $ 8,086 $ 7,658 $ 19,502 $ 24,417 OEM/ODM/Contract manufacturer 3,851 4,251 12,863 13,539 Other 1,073 1,233 3,307 4,757 Total $ 13,010 $ 13,142 $ 35,672 $ 42,713 By Geography: China $ 10,067 $ 9,267 $ 26,994 $ 30,853 North America 2,469 3,332 7,362 9,043 Rest of the world 474 543 1,316 2,817 Total $ 13,010 $ 13,142 $ 35,672 $ 42,713

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Business Description	Business Description 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 markets, including consumer, enterprise and automotive. 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, design and test facilities in the United States, United Kingdom, China, and Taiwan.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, from which the balance sheet information herein was derived. The unaudited condensed balance sheet as of December 31, 2019, included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. The unaudited condensed statements of operations for the three and nine months ended September 30, 2020 and 2019, and the balance sheet data as of September 30, 2020, have been prepared on the same basis as the audited financial statements. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation of results of the Company’s operations and financial position for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2020, or for any future period.
Segment Information	Segment Information The Company’s operations are located primarily in the United States and most of its assets are located in San Diego, California and 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.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications	Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements.
Fair Value Measurements	Fair Value Measurements The carrying values of the Company’s financial instruments, including cash and cash equivalents, restricted 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.
Cash Equivalents and Short Term Investments	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 September 30, 2020, 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, in the unaudited condensed statements 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.
Inventory	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. In those instances the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying balance sheet. The Company also manufactures certain of its products at its facility located in Scottsdale, Arizona. Inventory is stated at the lower of cost or net realizable value. 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 (FIFO) method. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. As of September 30, 2020, 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 September 30, 2020, and December 31, 2019, there is no provision for excess and obsolete inventories.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) The Company will adopt the new accounting standard using the modified retrospective transition option as of the effective date on January 1, 2021. The Company’s initial evaluation of its current leases does not indicate that the adoption of this standard will have an impact on its statements of operations. The Company expects that the adoption of the standard will have an impact on its balance sheets for the recognition of certain operating leases as right-of-use assets and lease liabilities In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Effective Dates . In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment , which simplifies the test for goodwill impairment by removing Step 2 which requires a hypothetical purchase price allocation and may require the services of valuation experts. An entity will, therefore, perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, recognizing an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. ASU 2017-04 will be effective for the Company in annual periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 202 2 , with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . The Company intends to early adopt ASU 2017-04 and believes the standard will have no impact on its ongoing financial reporting. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326), Targeted Transition Relief Accounting Standards Codification ( In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU include removing exceptions to incremental intraperiod tax allocation of losses and gains from different financial statement components, exceptions to the method of recognizing income taxes on interim period losses, and exceptions to deferred tax liability recognition related to foreign subsidiary investments. In addition, the ASU requires that entities recognize franchise tax based on an incremental method and requires an entity to evaluate the accounting for step-ups in the tax basis of goodwill as inside or outside of a business combination. Based on the Company’s emerging growth company status the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the standard is permitted, including adoption in interim or annual periods for which financial statements have not yet been issued. We have not early adopted this ASU as of September 30, 2020. The ASU is currently not expected to have a material impact on the Company’s financial statements.

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Summary of Computation of Net Income (Loss) Per Share	The following table presents the computation of net income (loss) per share (in thousands except per share data) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Numerator: Net income (loss) $ (261 ) $ (135 ) $ (2,199 ) $ 863 Denominator: Weighted average common shares outstanding - basic 9,710 9,711 9,694 9,678 Plus dilutive effect of potential common shares — — — 405 Weighted average common shares outstanding - diluted 9,710 9,711 9,694 10,083 Net income (loss) per share: Basic $ (0.03 ) $ (0.01 ) $ (0.23 ) $ 0.09 Diluted $ (0.03 ) $ (0.01 ) $ (0.23 ) $ 0.09
Summary of Potentially Dilutive Securities	Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net income (loss) per share because to do so would be anti-dilutive are as follows (in thousands) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Stock options and restricted stock 1,451 721 1,622 457 Warrants outstanding 3 51 51 — Total 1,454 772 1,673 457

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments (Tables)	9 Months Ended
	Sep. 30, 2020
Cash And Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents and Short-Term Investments by Significant Investment Category	The following tables show the Company’s cash and cash equivalents and short-term investments by significant investment category as of September 30, 2020, and December 31, 2019 (in thousands) September 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Cash and cash equivalents Short-term investments Cash $ 2,577 $ — $ — $ 2,577 $ 2,577 $ — Level 1: Money market funds 33,218 — — 33,218 33,218 — U.S. treasury securities — — — — — — Subtotal 33,218 — — 33,218 33,218 — Level 2: Commercial paper — — — — — — Corporate debt obligations 1,432 1 — 1,433 — 1,433 Repurchase agreements — — — — — — Asset-backed securities 751 — — 751 — 751 Subtotal 2,183 1 — 2,184 — 2,184 Total $ 37,978 $ 1 $ - $ 37,979 $ 35,795 $ 2,184 December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Cash and cash equivalents Short-term investments Cash $ 3,950 $ — $ — $ 3,950 $ 3,950 $ — Level 1: Money market funds 5,500 — — 5,500 5,500 — U.S. treasury securities 3,078 2 (1 ) 3,079 — 3,079 Subtotal 8,578 2 (1 ) 8,579 5,500 3,079 Level 2: Commercial paper 8,920 — — 8,920 747 8,173 Corporate debt obligations 5,922 5 (1 ) 5,926 — 5,926 Repurchase agreements 3,000 — — 3,000 3,000 — Asset-backed securities 4,505 3 — 4,508 — 4,508 Subtotal 22,347 8 (1 ) 22,354 3,747 18,607 Total $ 34,875 $ 10 $ (2 ) $ 34,883 $ 13,197 $ 21,686

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consist of the following (in thousands) September 30, 2020 December 31, 2019 Computers and software $ 575 $ 572 Furniture, fixtures, and equipment 355 299 Manufacturing and testing equipment 3,864 3,444 Construction in process 26 18 Leasehold improvements 932 911 5,752 5,244 Less accumulated depreciation (3,429 ) (3,118 ) $ 2,323 $ 2,126

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Acquired Intangible Assets	The following is a summary of the Company’s acquired intangible assets (dollars in thousands) Weighted average amortization period (years) Gross carrying amount Accumulated amortization Intangibles, net September 30, 2020 Customer relationships 10 $ 4,830 $ 2,082 $ 2,748 Developed technologies 9 1,080 506 574 Tradename 3 120 120 — Total intangible assets, net $ 6,030 $ 2,708 $ 3,322 December 31, 2019 Customer relationships 10 $ 4,830 $ 1,720 $ 3,110 Developed technologies 9 1,080 406 674 Tradename 3 120 107 13 Total intangible assets, net $ 6,030 $ 2,233 $ 3,797
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 (in thousands) Estimated future amortization 2020 (remaining three months) $ 154 2021 598 2022 563 2023 563 2024 563 Thereafter 881 Total $ 3,322

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Class Of Stock Disclosures [Abstract]
Schedule of Common Stock Reserved for Future Issuance	The following table presents common stock reserved for future issuance (1) (in thousands) September 30, 2020 December 31, 2019 Warrants issued and outstanding 51 51 Stock option awards issued and outstanding 1,792 1,600 Authorized for grants under the 2016 Equity Incentive Plan (2) 340 401 Authorized for grants under the 2016 Employee Stock Purchase Plan (3) 256 186 2,439 2,238 (1) (2) (3)

Stock Based Compensation (Table

Stock Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Outstanding Stock Option Activity	The following table summarizes the outstanding stock option activity during the period indicated (shares in thousands) Weighted average Number of shares Exercise price Remaining contractual term (years) Balance at December 31, 2019 1,600 $ 9.98 Granted 402 10.05 Exercised (105 ) 8.24 Expired/Forfeited (105 ) 10.42 Balance at September 30, 2020 1,792 10.07 7.8 Vested and exercisable at September 30, 2020 947 9.27 6.9 Vested and expected to vest at September 30, 2020 1,792 10.07 7.8
Summary of Outstanding Restricted Stock Unit Activity	The following table summarizes the Company's Restricted Stock Unit (RSU) activity during the period indicated (shares in thousands) Restricted stock units Weighted average grant date fair value Non-vested balance at December 31, 2019 80 $ 11.43 Grants 151 Vested and released (28 ) Non-vested balance at September 30, 2020 203 10.53

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments Under Operating Leases	The future minimum lease payments required under operating leases in effect at September 30, 2020, were as follows (in thousands) Year ending: 2020 (remaining three months) $ 202 2021 992 2022 719 2023 705 2024 686 2025 615 $ 3,919

Concentration of Credit Risk (T

Concentration of Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2020
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 three and nine months ended September 30, 2020 and 2019, and customers that accounted for 10% or more of total trade accounts receivable at September 30, 2020 and 2019. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Percentage of net revenue Customer A 32% 34% 33% 38% Customer B 15 18 10 14 Customer C 10 6 7 6 Customer D 4 10 1 3 As of September 30, 2020 2019 Percentage of gross trade accounts receivable Customer A 17% 13% Customer B 15 38 Customer C 13 15 Customer D 13 5

Disaggregated Revenue (Tables)

Disaggregated Revenue (Tables)	9 Months Ended
	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Summary of Disaggregated Revenue	Disaggregated revenue are as follows (in thousands) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 By Sales Channel: Fulfillment distributors $ 8,086 $ 7,658 $ 19,502 $ 24,417 OEM/ODM/Contract manufacturer 3,851 4,251 12,863 13,539 Other 1,073 1,233 3,307 4,757 Total $ 13,010 $ 13,142 $ 35,672 $ 42,713 By Geography: China $ 10,067 $ 9,267 $ 26,994 $ 30,853 North America 2,469 3,332 7,362 9,043 Rest of the world 474 543 1,316 2,817 Total $ 13,010 $ 13,142 $ 35,672 $ 42,713

Description of Business and B_3

Description of Business and Basis of Presentation - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020Segment
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Number of operating segments	1

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Summary of Computation of Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net income (loss)	$ (261)	$ (135)	$ (2,199)	$ 863
Denominator:
Weighted average common shares outstanding - basic	9,710	9,711	9,694	9,678
Plus dilutive effect of potential common shares				405
Weighted average common shares outstanding - diluted	9,710	9,711	9,694	10,083
Net income (loss) per share:
Basic	$ (0.03)	$ (0.01)	$ (0.23)	$ 0.09
Diluted	$ (0.03)	$ (0.01)	$ (0.23)	$ 0.09

Net Income (Loss) Per Share - A

Net Income (Loss) Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Income (Loss) Per Share [Line Items]
Diluted weighted average common shares outstanding	9,710,000	9,711,000	9,694,000	10,083,000
Warrants
Net Income (Loss) Per Share [Line Items]
Diluted weighted average common shares outstanding				3,000
Options Outstanding
Net Income (Loss) Per Share [Line Items]
Diluted weighted average common shares outstanding				402,000

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Summary of Potentially Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
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	1,454	772	1,673	457
Stock Options and Restricted Stock
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	1,451	721	1,622	457
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	3	51	51

Cash, Cash Equivalents and Sh_3

Cash, Cash Equivalents and Short-Term Investments - Schedule of Cash and Cash Equivalents and Short-term Investments by Significant Investment Category (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
Cash And Cash Equivalents And Short Term Investments [Line Items]
Cash	$ 2,577	$ 3,950
Short term investments Gross unrealized gains	1	10
Short term investments Gross unrealized losses		(2)
Short-term investments	2,184	21,686
Cash and cash equivalents and Short term investments, Amortized cost	37,978	34,875
Cash and cash equivalents and Short term investments, Estimated fair value	37,979	34,883
Cash and cash equivalents	35,795	13,197	$ 12,871
Level 1
Cash And Cash Equivalents And Short Term Investments [Line Items]
Short term investments Gross unrealized gains		2
Short term investments Gross unrealized losses		(1)
Cash equivalents and Short term investments, Estimated Fair Value	33,218	8,579
Cash equivalents and Short term investments, Amortized cost	33,218	8,578
Level 2
Cash And Cash Equivalents And Short Term Investments [Line Items]
Short term investments Gross unrealized gains	1	8
Short term investments Gross unrealized losses		(1)
Short-term investments	2,184	18,607
Cash equivalents and Short term investments, Estimated Fair Value	2,184	22,354
Cash and cash equivalents		3,747
Cash equivalents and Short term investments, Amortized cost	2,183	22,347
Money Market Funds | Level 1
Cash And Cash Equivalents And Short Term Investments [Line Items]
Cash equivalents	33,218	5,500
Repurchase Agreements | Level 2
Cash And Cash Equivalents And Short Term Investments [Line Items]
Cash equivalents		3,000
US Treasury Securities | Level 1
Cash And Cash Equivalents And Short Term Investments [Line Items]
Short Term Investments Amortized cost		3,078
Short term investments Gross unrealized gains		2
Short term investments Gross unrealized losses		(1)
Short-term investments		3,079
Commercial Paper | Level 2
Cash And Cash Equivalents And Short Term Investments [Line Items]
Cash equivalents		747
Short Term Investments Amortized cost		8,920
Short-term investments		8,173
Cash equivalents and Short term investments, Estimated Fair Value		8,920
Corporate Debt Securities | Level 2
Cash And Cash Equivalents And Short Term Investments [Line Items]
Short Term Investments Amortized cost	1,432	5,922
Short term investments Gross unrealized gains	1	5
Short term investments Gross unrealized losses		(1)
Short-term investments	1,433	5,926
Asset-backed Securities | Level 2
Cash And Cash Equivalents And Short Term Investments [Line Items]
Short Term Investments Amortized cost	751	4,505
Short term investments Gross unrealized gains		3
Short-term investments	751	4,508
Cash equivalents and Short term investments, Estimated Fair Value	$ 751	$ 4,508

Property and Equipment - Additi

Property and Equipment - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property Plant And Equipment [Line Items]
Depreciation expense	$ 106,000	$ 105,000	$ 348,000	$ 373,000
Other Property and Equipment | Minimum
Property Plant And Equipment [Line Items]
Property and equipment, estimated useful life			3 years
Other Property and Equipment | Maximum
Property Plant And Equipment [Line Items]
Property and equipment, estimated useful life			15 years

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 5,752	$ 5,244
Less accumulated depreciation	(3,429)	(3,118)
Property and equipment, net	2,323	2,126
Computers and Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	575	572
Furniture, Fixtures, and Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	355	299
Manufacturing and Testing Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	3,864	3,444
Construction in Process
Property Plant And Equipment [Line Items]
Property and equipment, gross	26	18
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 932	$ 911

Intangible Assets - Summary of

Intangible Assets - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Acquired Finite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 6,030	$ 6,030
Accumulated amortization	2,708	2,233
Intangibles, net	$ 3,322	$ 3,797
Customer relationships
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	10 years	10 years
Gross carrying amount	$ 4,830	$ 4,830
Accumulated amortization	2,082	1,720
Intangibles, net	$ 2,748	$ 3,110
Developed technologies
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	9 years	9 years
Gross carrying amount	$ 1,080	$ 1,080
Accumulated amortization	506	406
Intangibles, net	$ 574	$ 674
Tradename
Acquired Finite Lived Intangible Assets [Line Items]
Weighted average amortization period (years)	3 years	3 years
Gross carrying amount	$ 120	$ 120
Accumulated amortization	$ 120	107
Intangibles, net		$ 13

Intangible Assets - Schedule of

Intangible Assets - Schedule of Estimated Annual Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
2020 (remaining three months)	$ 154
2021	598
2022	563
2023	563
2024	563
Thereafter	881
Intangibles, net	$ 3,322	$ 3,797

Intangible Assets - Additional

Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization	$ 153,000	$ 163,000	$ 475,000	$ 491,000

Notes Payable and Line of Cre_2

Notes Payable and Line of Credit - Additional Information (Details) - Silicon Valley Bank - Revolving Credit Facility - USD ($)	1 Months Ended
	Jan. 31, 2018	Dec. 31, 2019
Line Of Credit Facility [Line Items]
Line of credit facility allowable amount	$ 10,000,000
Line of credit		$ 0
Line of credit facility maturity date	Jan. 31, 2020
Line of credit facility borrowing base limitation percentage of eligible receivables	80.00%
Liquidity ratio	125.00%

Treasury Stock - Additional Inf

Treasury Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Sep. 09, 2020	Aug. 07, 2018	Sep. 09, 2019	Aug. 31, 2017	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2020
Share Repurchase Program September 9, 2019
Equity Class Of Treasury Stock [Line Items]
Stock repurchase, shares							162,000
Common stock repurchase, value					$ 1.6	$ 1.6	$ 1.6
Common Stock | Share Repurchase Program August 2017
Equity Class Of Treasury Stock [Line Items]
Stock approved for repurchase, value				$ 7
Period of stock repurchase program				12 months
Additional period of stock repurchase program		12 months
Common Stock | Share Repurchase Program September 9, 2019
Equity Class Of Treasury Stock [Line Items]
Stock approved for repurchase, value			$ 7
Period of stock repurchase program			12 months
Additional period of stock repurchase program	12 months
Common Stock | Share Repurchase Program August 2017 and September 2019
Equity Class Of Treasury Stock [Line Items]
Stock repurchase, shares					0	69,000
Stock repurchase, average price per share						$ 8.78
Stock repurchase, cost						$ 0.6

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate	(14.20%)	16.10%

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares	Sep. 30, 2020	Dec. 31, 2019
Class Of Stock [Line Items]
Common stock, reserved for future issuance	2,439,000	2,238,000
Warrants Issued and Outstanding
Class Of Stock [Line Items]
Common stock, reserved for future issuance	51,000	51,000
Stock Option Awards Issued and Outstanding
Class Of Stock [Line Items]
Common stock, reserved for future issuance	1,792,000	1,600,000
Authorized for Grants under the 2016 Equity Incentive Plan
Class Of Stock [Line Items]
Common stock, reserved for future issuance	340,000	401,000
Authorized for grants under the 2016 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock, reserved for future issuance	256,000	186,000

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Parenthetical) (Details) - shares	Jan. 01, 2020	Sep. 30, 2020	Dec. 31, 2019
Class Of Stock [Line Items]
Treasury stock, shares at cost		534,000	465,000
2016 Equity Incentive Plan
Class Of Stock [Line Items]
Number of authorized shares increased	387,000
2016 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Number of authorized shares increased	97,000

Stock Based Compensation - Summ

Stock Based Compensation - Summary of Outstanding Stock Option Activity (Details)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of shares, Beginning balance | shares	1,600,000
Number of shares, Granted | shares	402,000
Number of shares, Exercised | shares	(105,000)
Number of shares, Expired/Forfeited | shares	(105,000)
Number of shares, Ending balance | shares	1,792,000
Number of shares, Vested and exercisable | shares	947,000
Number of shares, Vested and expected to vest | shares	1,792,000
Weighted average exercise price, Beginning balance | $ / shares	$ 9.98
Weighted average exercise price, Granted | $ / shares	10.05
Weighted average exercise price, Exercised | $ / shares	8.24
Weighted average exercise price, Expired/Forfeited | $ / shares	10.42
Weighted average exercise price, Ending balance | $ / shares	10.07
Weighted average exercise price, Vested and exercisable | $ / shares	9.27
Weighted average exercise price, Vested and expected to vest | $ / shares	$ 10.07
Weighted average remaining contractual term (years)	7 years 9 months 18 days
Weighted average remaining contractual term (years), Vested and exercisable	6 years 10 months 24 days
Weighted average remaining contractual term (years), Vested and expected to vest	7 years 9 months 18 days

Stock Based Compensation - Addi

Stock Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended		9 Months Ended	12 Months Ended
	Aug. 31, 2020	Feb. 29, 2020	Sep. 30, 2020	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant-date fair value of options granted			$ 4.30	$ 4.93
Stock options vested aggregate intrinsic value			$ 4,100,000	$ 2,300,000
Stock options expected to vest aggregate intrinsic value			2,000,000	300,000
Total unrecognized compensation cost of unvested stock options			$ 3,500,000	$ 3,200,000
Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Offering period of employee stock purchase plan			6 months
Limited percentage of annual contribution			20.00%
Percentage of discount and fair value of option			15.00%
Proceeds from stock issued during period	$ 182,000	$ 182,000
Number of stock issued during period	27,000	27,000
Employee Stock Purchase Plan | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Purchase price percentage of market value of common stock			85.00%
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total unrecognized compensation cost, period for recognition			4 years
Restricted Stock Unit (RSU)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average remaining contractual term			1 year 7 months 6 days
Total unrecognized compensation cost			$ 1,700,000

Stock Based Compensation - Su_2

Stock Based Compensation - Summary of Outstanding Restricted Stock Unit Activity (Details) - Restricted Stock Unit (RSU) shares in Thousands	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock units, Beginning balance	80
Restricted stock units, Grants	151
Restricted stock units, Vested and released	(28)
Restricted stock units, Ending balance	203
Weighted average grant date fair value, Beginning balance | $ / shares	$ 11.43
Weighted average grant date fair value, Ending balance | $ / shares	$ 10.53

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Supply Agreement
Commitment And Contingencies [Line Items]
Payments for inventory	$ 0
Supply Agreement | Maximum
Commitment And Contingencies [Line Items]
Purchase of inventory	$ 2,000,000
Office Space and Research Facilities Lease
Commitment And Contingencies [Line Items]
Operating leases, rent expense		$ 284,000	$ 239,000	$ 832,000	$ 729,000
Operating lease, renewal term	5 years	5 years		5 years
Lease expiration date				2025-11

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands	Sep. 30, 2020USD ($)
Future minimum lease payment
2020 (remaining three months)	$ 202
2021	992
2022	719
2023	705
2024	686
2025	615
Total future minimum lease payment	$ 3,919

Concentration of Credit Risk -

Concentration of Credit Risk - Additional Information (Details) - Vendor	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
China
Concentration Risk [Line Items]
Number of vendors	2		2
Customer Concentration Risk | Net Revenue
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%	10.00%	10.00%
Customer Concentration Risk | Trade Accounts Receivable
Concentration Risk [Line Items]
Concentration risk percentage			10.00%	10.00%

Concentration of Credit Risk _2

Concentration of Credit Risk - Schedule of Concentration of Sales and Accounts Receivable (Details) - Customer Concentration Risk	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Revenue
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%	10.00%	10.00%
Net Revenue | Customer A
Concentration Risk [Line Items]
Concentration risk percentage	32.00%	34.00%	33.00%	38.00%
Net Revenue | Customer B
Concentration Risk [Line Items]
Concentration risk percentage	15.00%	18.00%	10.00%	14.00%
Net Revenue | Customer C
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	6.00%	7.00%	6.00%
Net Revenue | Customer D
Concentration Risk [Line Items]
Concentration risk percentage	4.00%	10.00%	1.00%	3.00%
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			17.00%	13.00%
Trade Accounts Receivable | Customer B
Concentration Risk [Line Items]
Concentration risk percentage			15.00%	38.00%
Trade Accounts Receivable | Customer C
Concentration Risk [Line Items]
Concentration risk percentage			13.00%	15.00%
Trade Accounts Receivable | Customer D
Concentration Risk [Line Items]
Concentration risk percentage			13.00%	5.00%

Disaggregated Revenue - Summary

Disaggregated Revenue - Summary of Disaggregated Revenue By Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	$ 13,010	$ 13,142	$ 35,672	$ 42,713
Fulfillment Distributors
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	8,086	7,658	19,502	24,417
OEM/ODM/Contract Manufacturer
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	3,851	4,251	12,863	13,539
Other
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	$ 1,073	$ 1,233	$ 3,307	$ 4,757

Disaggregated Revenue - Summa_2

Disaggregated Revenue - Summary of Disaggregated Revenue By Geography (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	$ 13,010	$ 13,142	$ 35,672	$ 42,713
China
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	10,067	9,267	26,994	30,853
North America
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	2,469	3,332	7,362	9,043
Rest of the world
Disaggregation Of Revenue [Line Items]
Disaggregated revenues	$ 474	$ 543	$ 1,316	$ 2,817