Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AQ | |
Entity Registrant Name | AQUANTIA CORP | |
Entity Central Index Key | 1,316,016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,488,654 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 13,529 | $ 28,893 |
Short-term investments | 1,850 | |
Accounts receivable | 12,389 | 11,495 |
Inventories | 15,673 | 7,017 |
Prepaid expenses and other current assets | 3,745 | 1,609 |
Total current assets | 47,186 | 49,014 |
Property and equipment, net | 8,521 | 8,122 |
Intangible assets, net | 4,757 | 5,363 |
Other assets | 4,742 | 3,210 |
Total assets | 65,206 | 65,709 |
Current liabilities: | ||
Accounts payable | 5,357 | 4,757 |
Accrued liabilities | 9,513 | 6,751 |
Long-term debt, current portion | 10,784 | 11,238 |
Bank borrowings—line of credit | 5,000 | |
Total current liabilities | 30,654 | 22,746 |
Long-term debt, net | 6,991 | |
Convertible preferred stock warrant liability | 3,530 | 12,885 |
Other long-term liabilities | 3,118 | 3,460 |
Total liabilities | 37,302 | 46,082 |
Commitments and contingencies (Note 6) | ||
Convertible preferred stock: | ||
Convertible preferred stock, par value of $0.00001 per share; 213,351,797 shares authorized as of September 30, 2017 and December 31, 2016, respectively; 208,004,878 and 198,248,718 shares issued and outstanding with aggregate liquidation preference of $203,761 as of September 30, 2017 and $189,796 as of December 31, 2016 , respectively | 210,269 | 199,434 |
Stockholders’ equity (deficit): | ||
Additional paid-in capital | 14,289 | 12,419 |
Accumulated deficit | (196,654) | (192,226) |
Total stockholders’ equity (deficit) | (182,365) | (179,807) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ 65,206 | $ 65,709 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 316,000,000 | 307,000,000 |
Common stock, shares issued | 4,739,936 | 4,443,698 |
Common stock, shares outstanding | 4,739,936 | 4,443,698 |
Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.00001 | $ 0.00001 |
Convertible preferred stock, shares authorized | 213,351,797 | 213,351,797 |
Convertible preferred stock, shares issued | 208,004,878 | 198,248,718 |
Convertible preferred stock, shares outstanding | 208,004,878 | 198,248,718 |
Convertible preferred stock, aggregate liquidation preference | $ 203,761 | $ 189,796 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 26,718,000 | $ 22,534,000 | $ 75,525,000 | $ 63,908,000 |
Cost of revenue | 11,616,000 | 9,127,000 | 32,575,000 | 25,310,000 |
Gross profit | 15,102,000 | 13,407,000 | 42,950,000 | 38,598,000 |
Operating expenses: | ||||
Research and development | 11,512,000 | 9,321,000 | 32,456,000 | 26,622,000 |
Sales and marketing | 1,927,000 | 1,344,000 | 5,383,000 | 4,217,000 |
General and administrative | 2,572,000 | 1,891,000 | 7,047,000 | 5,687,000 |
Total operating expenses | 16,011,000 | 12,556,000 | 44,886,000 | 36,526,000 |
Income (loss) from operations | (909,000) | 851,000 | (1,936,000) | 2,072,000 |
Other income (expense): | ||||
Interest expense | (382,000) | (779,000) | (1,398,000) | (2,650,000) |
Change in fair value of convertible preferred stock warrant liability | 317,000 | (1,383,000) | 78,000 | |
Other income, net | (4,000) | (6,000) | 24,000 | (3,000) |
Total other income (expense) | (69,000) | (785,000) | (2,757,000) | (2,575,000) |
Income (loss) before income tax expense | (978,000) | 66,000 | (4,693,000) | (503,000) |
Provision for (benefit from) income taxes | 27,000 | (22,000) | (331,000) | 84,000 |
Net income (loss) attributable to common stockholders | $ (1,005,000) | $ 88,000 | $ (4,362,000) | $ (587,000) |
Net income (loss) per share attributable to common stockholders, basic | $ (0.21) | $ 0.02 | $ (0.95) | $ (0.14) |
Net income (loss) per share attributable to common stockholders, diluted | $ (0.21) | $ 0 | $ (0.95) | $ (0.14) |
Weighted-average shares used to compute net loss per share, basic | 4,710 | 4,405 | 4,603 | 4,173 |
Weighted-average shares used to compute net loss per share, diluted | 4,710 | 28,368 | 4,603 | 4,173 |
Comprehensive income (loss): | ||||
Net income (loss) attributable to common stockholders | $ (1,005,000) | $ 88,000 | $ (4,362,000) | $ (587,000) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains and losses - short-term investments | 2,000 | |||
Comprehensive income (loss) attributable to common stockholders | $ (1,003,000) | $ 88,000 | $ (4,362,000) | $ (587,000) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income (loss) attributable to common stockholders | $ (4,362) | $ (587) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 3,422 | 1,892 |
Stock-based compensation expense | 957 | 706 |
Change in fair value of convertible preferred stock warrant liability | 1,383 | (78) |
Amortization of debt discount | 286 | 490 |
Non-cash interest expense related to debt costs | 139 | 435 |
Gain/loss on disposal of property and equipment | 33 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (894) | (3,675) |
Inventories | (8,656) | 9,283 |
Prepaid expenses and other assets | (2,367) | 1,810 |
Accounts payable | 356 | 245 |
Accrued and other liabilities | 2,328 | 706 |
Deferred revenue | (2,059) | |
Net cash provided by (used in) operating activities | (7,408) | 9,201 |
Cash flows from investing activities | ||
Purchases of property and equipment | (2,952) | (2,345) |
Purchases of IP licenses | (2,065) | |
Disposal of property and equipment | 6 | |
Purchases of short-term investments | (1,850) | |
Net cash used in investing activities | (4,802) | (4,404) |
Cash flows from financing activities | ||
Repayments on short and long-term borrowings | (7,846) | (4,053) |
Repayments on line of credit | (5,000) | (5,001) |
Proceeds from line of credit | 10,000 | |
Proceeds from exercise of stock options and preferred stock warrants | 944 | 4,763 |
Purchases of IP licenses | (195) | |
Payment of costs related to initial public offering | (1,057) | (2,174) |
Net cash used in financing activities | (3,154) | (6,465) |
Net decrease in cash and cash equivalents | (15,364) | (1,668) |
Cash and cash equivalents at beginning of period | 28,893 | 34,290 |
Cash and cash equivalents at end of period | 13,529 | 32,622 |
Non-cash financing and investing transactions | ||
Transfer of fair value of warrants to equity from liabilities upon warrant exercise | 10,738 | |
Unpaid costs related to initial public offering | 608 | 305 |
Property and equipment received and accrued | $ 503 | 1,318 |
IP licenses accrued | $ 3,351 |
Organization, Description of Bu
Organization, Description of Business and Basis for Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization, Description of Business and Basis for Presentation | 1. Organization, Description of Business and Basis for Presentation Organization —Aquantia Corp. (together with its subsidiaries, the “Company”) was incorporated in Delaware on January 27, 2004. The Company is a leader in the design, development and marketing of advanced high-speed communications integrated circuits, or ICs, for Ethernet connectivity in the data center, enterprise infrastructure, access and automotive markets. Initial Public Offering — On November 7, 2017, the Company completed its initial public offering (“IPO”) of 7,840,700 shares of its common stock at the offering price of $9.00 per share, including 1,022,700 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s common stock, resulting in net proceeds to the Company of $65.6 million after deducting underwriters' discounts and commissions of $4.9 million, but before deducting total offering expenses of approximately $5.4 million. Certain IPO- related costs as of September 30, 2017 of $4.3 million were recorded as other assets and were subsequently reclassified to additional paid-in capital upon completion of the IPO. Immediately prior to the closing of the IPO, all outstanding shares of the Company’s convertible preferred stock automatically converted into shares of its common stock and the Company’s convertible preferred stock warrants automatically converted into warrants to purchase common stock. The Company used $9.2 million of the IPO proceeds to repay the outstanding indebtedness under the Company’s loan from Pinnacle Ventures, L.L.C. on November 8, 2017. Basis of Presentation and Principles of Consolidation - The accompanying unaudited condensed consolidated financial statements included herein have been prepared by us in accordance with U.S. generally accepted accounting principles (“GAAP”), for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, normal recurring adjustments considered necessary for a fair presentation have been reflected in these condensed consolidated financial statements. 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. The consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements for the fiscal year then ended included in our final prospectus dated November 2, 2017 and filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on November 3, 2017 (the “Prospectus”), but does not include all of the information and notes required by GAAP for complete financial statements. The financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended December 31, 2016 and the related notes thereto included in the Prospectus. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies There have been no significant changes in the Company’s accounting policies from those disclosed in the Prospectus. Reverse Stock Split —In September 2017, the Company’s board of directors and stockholders approved a 1-for-10 reverse split of the Company’s common stock (the “Reverse Stock Split”), which was effected on October 5, 2017. The Company’s board of directors and stockholders also approved proportionate adjustments to the conversion prices of each series of convertible preferred stock and convertible preferred stock warrants. The number of options to purchase common stock was also proportionately adjusted to reflect the Reverse Stock Split. The par value of the common and convertible preferred stock was not adjusted as a result of the Reverse Stock Split. All share and per share information included in the accompanying condensed consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split. Recent Accounting Pronouncements —In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. It provides clarity and reduces both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation , to a change to the terms or conditions of a share-based payment award. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years and early adoption is permitted. The Company is currently evaluating the impact of adoption of this new standard on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2015, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheets Components [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Inventories consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Processed wafers $ 4,321 $ 1,474 Work in process 9,298 3,310 Finished goods 2,054 2,233 Total inventories $ 15,673 $ 7,017 Prepaid expenses and other current assets consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Processed wafer prepayments $ 1,702 $ 653 Electronic design automation tools 495 330 Other prepaid and other current assets 1,548 626 Total other prepaid and other current assets $ 3,745 $ 1,609 Property and equipment, net consisted of the following (in thousands): As of September 30, As of December 31, Estimated Useful Lives 2017 2016 Machinery and equipment 2-3 years $ 12,201 $ 10,189 Production masks 4 years 4,301 4,301 Software and computer equipment 3 years 3,470 2,724 Leasehold improvements Shorter of estimated life of asset or remaining lease term 523 271 Office furniture and fixtures 3 years 114 99 Total property and equipment 20,609 17,584 Less: accumulated depreciation and amortization (12,088 ) (9,462 ) Property and equipment, net $ 8,521 $ 8,122 Depreciation and amortization of property and equipment totaled $1.0 million and $0.6 million for the three months ended September 30, 2017 and 2016, respectively, and $2.8 million and $1.8 million for the nine months ended September 30, 2017 and 2016, respectively. Intangible assets, net were carried at cost, less accumulated amortization. Intangible assets were as follows (in thousands): As of September 30, As of December 31, Estimated Useful Lives 2017 2016 IP license 7 years $ 5,416 $ 5,416 Patents 10-12 years 348 348 Total intangible assets 5,764 5,764 Less: accumulated amortization (1,007 ) (401 ) Intangible assets, net $ 4,757 $ 5,363 Amortization of intangible assets totaled $202,000 and $72,000 for the three months ended September 30, 2017 and 2016, respectively, and $606,000 and $89,000 for the nine months ended September 30, 2017 and 2016, respectively. Amortization expense related to amortizable intangibles in future periods as of September 30, 2017 is expected to be as follows (in thousands): 2017 (remaining) $ 202 2018 808 2019 808 2020 808 2021 and thereafter 2,131 Total $ 4,757 Accrued liabilities consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Accrued compensation and related benefits $ 4,404 $ 3,585 Accrued IP license fees 320 389 Accrued technical consulting and professional services 1,363 617 Accrued royalty, rebates, and commission 428 610 Deferred income 1,303 — Other accrued liabilities 1,695 1,550 Total accrued liabilities $ 9,513 $ 6,751 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 4. Financial Instruments The following is a summary of financial instruments (in thousands): As of September 30, 2017 Gross Gross Unrealized Unrealized Estimated Fair Cost Gains Losses Values Available-for sale securities Commercial Paper $ 1,699 $ — $ — $ 1,699 Money market funds 7,500 — — 7,500 Corporate bonds 2,665 — — 2,665 U.S. government securities 1,199 — — 1,199 Total available-for-sale securities $ 13,063 $ — $ — $ 13,063 Reported in: Cash and cash equivalents $ 11,213 Short-term investments 1,850 Accumulated other comprehensive loss — Total available-for-sale securities $ 13,063 Prior to June 2017, the Company’s financial instruments comprised solely of money market funds which were classified as cash equivalents. As of September 30, 2017, the Company had $13.5 million in cash, cash equivalents and $1.9 million in short-term investments. There was no sale of available-for-sale investments and therefore no significant realized gain or loss for the three and nine months ended September 30, 2017. The amounts of financial instruments in the table above will mature within the next 12 months after September 30, 2017. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which to transact and the market-based risk. The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Level 1 liabilities consist of accounts payable, accrued expense and long-term debt. The carrying amounts of accounts receivable, prepaid expenses, accounts payable and accrued liabilities approximate fair value due to the short-term nature of these items. Based on the borrowing rates currently available to the Company for debt with similar terms, the carrying value of the term debt approximates fair value as well. The Company categorizes assets and liabilities recorded at fair value based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: Level 1 —Observable inputs, such as quoted prices in active markets for identical, unrestricted assets, or liabilities. Level 2 —Quoted prices for similar assets or liabilities, or inputs other than quoted prices in active markets that are observable either directly or indirectly. Level 3 —Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions about the assumptions market participants would use in pricing the asset or liability. Valuation techniques include use of option-pricing models, discounted cash flows models, and similar techniques. The hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The following tables represent the Company’s financial assets and financial liabilities measured at fair value on a recurring basis categorized by the fair value hierarchy as of September 30, 2017 and December 31, 2016 (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Financial asset— available-for-sales securities Money market funds $ 7,500 $ — $ — $ 7,500 Commercial Paper — 1,699 — 1,699 Corporate bonds — 2,665 — 2,665 U.S. government securities — 1,199 — 1,199 Total financial asset—available-for-sales securities $ 7,500 $ 5,563 $ — $ 13,063 Financial liability—convertible preferred stock warrant liability $ — $ — $ 3,530 $ 3,530 As of December 31, 2016 Level 1 Level 2 Level 3 Total Financial asset—money market funds $ 15,316 $ — $ — $ 15,316 Financial liability—convertible preferred stock warrant liability $ — $ — $ 12,885 $ 12,885 The summary of changes in the fair value of the Company’s Level 3 financial liabilities was as follows (in thousands): Balance as of January 1, 2017 $ 12,885 Change in fair value of convertible preferred stock warrant liability 1,383 Exercise of Series H convertible preferred stock warrants (10,738 ) Balance as of September 30, 2017 $ 3,530 See Note 8 for discussion of valuation methods and inputs for such financial liabilities. The Company has not changed the manner in which it values liabilities that are measured at estimated fair value using Level 3 inputs. There were no transfers within the hierarchy during the nine months ended September 30, 2017 or the year ended December 31, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Lease and purchase obligations— The Company leases office and research facilities under operating leases for its U.S. headquarters and international locations that expire at various dates through March 2020. Under any lease agreement that contains escalating rent provisions, lease expense is recorded on a straight-line basis over the lease term. Rent expense for the three months ended September 30, 2017 and 2016 was $0.3 million and $0.2 million, respectively. Rent expense for the nine months ended September 30, 2017 and 2016 was $0.8 million and $0.7 million, respectively. In addition, the Company has purchase obligations which included agreements and issued purchase orders containing non-cancelable payment terms to purchase goods and services. As of September 30, 2017, future minimum operating lease payments and purchase obligations are as follows (in thousands): Total Operating Purchase Lease and Purchase Leases Obligations Obligations 2017 (remaining) $ 290 $ 13,850 $ 14,140 2018 662 4,943 5,605 2019 234 1,974 2,208 2020 128 198 326 2021 and thereafter 169 — 169 Total $ 1,483 $ 20,965 $ 22,448 Litigation— The Company accrues for contingencies when it believes that a loss is probable and that it can reasonably estimate the amount of any such loss and the Company has made an assessment of the probability of incurring any such losses and whether or not those losses are estimable. Although the Company is not currently subject to any litigation, and the Company is not aware of any litigation currently threatened against it, the Company may be subject to legal proceedings, claims and litigation, including intellectual property litigation, arising in the ordinary course of business. Such matters are subject to many uncertainties and outcomes and are not predictable with assurance. The Company accrues amounts that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that it believes will result in a probable loss that is reasonably estimable. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, the Company will either disclose the estimated additional loss or state that such an estimate cannot be made. The Company does not currently believe that it is reasonably possible that losses in connection with litigation arising in the ordinary course of business would be material. Indemnification— Under the indemnification provisions of the Company’s standard sales-related contracts, the Company agrees to defend its customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks, or trade secrets, and to pay judgments entered on such claims. Certain agreements include indemnification provisions that could potentially expose the Company to losses in excess of the amount received under the agreement. In addition, the Company indemnifies its directors and certain of its officers while they are serving in good faith in such capacities. To date, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. As of September 30, 2017 and December 31, 2016, no liability associated with such indemnifications had been recorded. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt In connection with each of the Loan and Security Agreements with Pinnacle Ventures L.L.C. (“Pinnacle Ventures”) and the Loan and Security Agreement with Hercules Technology Growth Capital, each as described below, the Company has granted in favor of the lenders thereunder a security interest in substantially all of the Company’s assets other than the Company’s intellectual property. The loan with Pinnacle Ventures is subordinated to the loan with Hercules Technology Growth Capital pursuant to a subordination agreement. Loan and Security Agreement with Pinnacle Ventures— On April 5, 2013, the Company entered into a Loan and Security Agreement with Pinnacle Ventures (the “2013 Agreement”) to borrow an aggregate principal amount of $15 million. The interest rate on this loan was the greater of the prime rate plus 925 basis points or 12.5% per annum. As of December 31, 2014, immediately prior to the effective date of the 2013 Amended Agreement (as defined below), the interest rate was 12.5%. The Company was required to make interest-only payments for the first 24 months starting in April 2013 and thereafter make 18 equal installment payments of principal and interest through October 5, 2016, the original maturity date of the loan. In connection with the 2013 Agreement, the Company issued 646,551 fully vested Series F convertible preferred stock warrants at an exercise price of $0.9280000 before the Reverse Stock Split. See Notes 1, 2 and 8 for additional information. The agreement also provided a conversion right (the “Conversion Right”), which expired unexercised on September 30, 2014 and was reclassified to convertible preferred stock. The Conversion Right was accounted for as a financial derivative and the estimated fair value was determined using the Monte Carlo Simulation with an initial aggregate fair value of $180,843. The estimated fair value was determined using the following assumptions: risk-free interest rate of 0.21%, contractual term of 0.46 years to 0.96 years, and volatility of 45%. On December 16, 2014, the Company amended the 2013 Agreement with Pinnacle Ventures (the “2013 Amended Agreement”) to borrow an additional $8.8 million and modify the terms of the existing loan of $15 million, including extending the maturity date to July 1, 2018. The interest rate on this loan, effective January 1, 2015, was the greater of the prime rate plus 550 basis points or 8.75% per annum. As of September 30, 2017 and December 31, 2016, the interest rate on this loan was 9.75% and 9.25%, respectively. Under the terms of the 2013 Amended Agreement, principal payments for the combined loan started in May 2016. An additional payment of $1.5 million was due upon the earliest to occur of the maturity date of July 1, 2018 or the prepayment of all outstanding principal and accrued and unpaid interest. The final payment is being amortized to interest expense over the original term of the loan. In connection with this 2013 Amended Agreement, the Company also issued 640,129 fully vested Series G convertible preferred stock warrants with an exercise price of $1.4314298 per share before the Reverse Stock Split. See Notes 1, 2 and 8 for additional information. The 2013 Amended Agreement contained customary financial reporting and insurance requirements, and negative covenants that limit the Company’s ability to, among other things, prepay or incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets, and merge or consolidate. As of September 30, 2017, the Company was in compliance with all covenants. This loan was repaid in full subsequent to the IPO in November 2017. See Note 1 for additional information. Loan and Security Agreement with Hercules Technology Growth Capital— On January 30, 2015, the Company entered into a Loan and Security Agreement with Hercules Technology Growth Capital for an $11.5 million revolving line of credit. In connection with this agreement, the Company issued fully vested warrants to purchase 196,831 shares of convertible preferred stock at an exercise price of $1.4314298 per share before the Reverse Stock Split. See Notes 1, 2 and 8 for additional information. At the election of the holder, these warrants may be exercised for Series G or Series H convertible preferred stock. The line of credit is based upon a percentage of eligible receivables and eligible customer purchase orders. The line of credit bears a variable rate of interest and is based upon the Federal Reserve’s prime rate and changes in the Company’s borrowing base eligibility and whether the borrowing base is based on eligible accounts receivables or eligible purchase orders or both. The line of credit matures on February 1, 2018. An additional final payment of $0.3 million is due upon the earliest to occur of the maturity date, the date of prepayment of the outstanding secured obligations, or the date that the secured obligations become due and payable. The final payment was recorded as a long-term liability and other asset on the Company’s consolidated balance sheet and the asset is amortized to interest expense over 24 months, the initial term of the agreement. As of September 30, 2017, the amount outstanding under the line of credit was $5.0 million with an average interest rate of 7.20% and the amount available for borrowing was $6.5 million. The agreement contains customary financial reporting requirements and negative covenants that limit the Company’s ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, lend money or forgive indebtedness to employees, officers or directors, transfer assets, and merge or consolidate. As of September 30, 2017, the Company was in compliance with all covenants. Debt obligations consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Term loans $ 9,396 $ 17,241 Final payment liability 1,443 1,192 Total term loans 10,839 18,433 Unamortized debt discount (55 ) (204 ) Balance term loans 10,784 18,229 Bank borrowings—line of credit 5,000 — Total debt 15,784 18,229 Less: long-term debt, current portion and bank borrowings—line of credit (15,784 ) (11,238 ) Long-term debt $ — $ 6,991 |
Convertible Preferred Stock War
Convertible Preferred Stock Warrants | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Convertible Preferred Stock Warrants | 8 . Convertible Preferred Stock Warrants The following convertible preferred stock warrants, which will be subject to the Reverse Stock Split and converted into warrants to purchase the Company’s common stock immediately prior to the closing of the IPO, were outstanding (in thousands except share and per share amounts; see Notes 1 and 2 for additional information): As of September 30, 2017 As of December 31, 2016 Exercise Price Preferred Shares Fair Preferred Shares Fair Series Per Share Expiration Date Underlying Warrants Value Underlying Warrants Value B $ 2.150275 3/9/2018 31,973 — 31,973 — C-1 (1) $ 0.010000 1/16/2019 2,472,088 2,793 2,472,088 1,760 D $ 0.666397 3/9/2018, 11/16/2019 825,332 262 825,332 272 F $ 0.928000 4/5/2023 646,551 237 646,551 154 G $ 1.431430 12/16/2024 640,129 182 640,129 93 G/H $ 1.431430 1/3/2025 196,831 56 196,831 29 H $ 0.010000 3/25/2025 — — 9,756,160 10,577 Total Warrants 4,812,904 $ 3,530 14,569,064 $ 12,885 (1) 3,006,008 shares of Series C-1 preferred stock underlie the Series C-1 warrant, of which 2,472,088 shares have vested. Series B Convertible Preferred Stock Warrants Issued to Pinnacle Ventures —As consideration for a 2008 Amended and Restated Loan and Security Agreement with Pinnacle Ventures, the Company issued fully vested warrants to purchase 157,538 shares of Series B convertible preferred stock at an exercise price of $2.1502753 per share. These Series B warrants have a term of 10 years. In connection with the issuance of the Series D convertible preferred stock in November 2009, warrants to purchase 125,565 shares of Series B convertible preferred stock automatically converted into warrants to purchase 405,164 shares of Series D convertible preferred stock at $0.6663973 per share. The remaining warrants will expire in March 2018. See “—Series D Convertible Preferred Stock Warrants Issued to Pinnacle Ventures” below. Series C-1 Convertible Preferred Stock Warrants Issued to Intel Corporation —In connection with entering into the Intel Agreement, the Company issued warrants to purchase up to 4,006,088 shares of Series C-1 convertible preferred stock at an exercise price of $0.01 per share. The warrants are valued as they vest and become exercisable upon the achievement of certain milestones, primarily related to product development. As of September 30, 2017, warrants to purchase 534,000 shares of Series C-1 convertible preferred stock are subject to potential vesting under the Intel Agreement. The fair value at vesting will be allocated to the Intel Agreement. During the year ended December 31, 2009, warrants to purchase 3,472,088 shares vested with an initial value of $1,927,505. Prior to 2014, 1,000,000 of the shares underlying the vested warrants were issued upon exercise of such warrants. The remaining warrants will expire in January 2019. Series D Convertible Preferred Stock Warrants Issued to Pinnacle Ventures —As consideration for a 2009 Amendment to the 2008 Amended and Restated Loan and Security Agreement with Pinnacle Ventures, the Company issued to Pinnacle Ventures fully vested warrants to purchase 210,084 shares of Series D convertible preferred stock. The Company also issued fully vested warrants to purchase an additional 210,084 shares of Series D convertible preferred stock when the Company borrowed an additional $3.5 million in December 2010. In addition, in connection with the issuance of the Series D convertible preferred stock in November 2009, warrants to purchase 125,565 shares of Series B convertible preferred stock automatically converted into fully vested warrants to purchase 405,164 shares of Series D convertible preferred stock. The Series D warrants have an exercise price of $0.6663973 per share and a term of ten years. These warrants will expire in March 2018 and November 2019. Series F Convertible Preferred Stock Warrants Issued to Pinnacle Ventures —On April 5, 2013, in connection with the 2013 Agreement, the Company issued to Pinnacle Ventures fully vested warrants to purchase 646,551 Series F convertible preferred stock at an exercise price of $0.928 price per share. These warrants will expire in April 2023. Series G Convertible Preferred Stock Warrants Issued to Pinnacle Ventures —On December 16, 2014, in connection with the 2013 Amended Agreement, the Company issued to Pinnacle Ventures fully vested warrants to purchase 640,129 shares of Series G convertible preferred stock at an exercise price of $1.4314298 per share. At issuance, the estimated fair value was determined using the Monte Carlo Simulation with an aggregate fair value of $173,091 that was determined using the following assumptions: risk-free rate of 2.13%, contractual term of 9.71 years, and volatility of 50%. The warrants will expire in December 2024. Series G or Series H Convertible Preferred Stock Warrants Issued to Hercules Technology Growth Capital —On January 30, 2015, the Company entered into a Loan and Security Agreement with Hercules Technology Growth Capital for an $11.5 million, revolving line of credit. In connection with this agreement, the Company issued fully vested warrants to purchase 196,831 shares at an exercise price of $1.4314298 per share. At the election of the holder, these warrants may be exercised for Series G or Series H convertible preferred stock. At issuance, the estimated fair value was determined using the Monte Carlo Simulation with an aggregate fair value of $50,000 that was determined using the following assumptions: risk-free rate of 2.06%, contractual term of 9.83 years, and volatility of 50%. The warrants will expire in January 2025. Series H Convertible Preferred Stock Warrants Issued to GLOBALFOUNDRIES U.S. Inc. —In connection with the collaboration and development agreement with GLOBALFOUNDRIES U.S. Inc. on March 25, 2015, the Company issued to GLOBALFOUNDRIES U.S. Inc. fully vested warrants to purchase 9,756,160 shares of Series H convertible preferred stock at an exercise price of $0.01 per share. At issuance, the estimated fair value was determined using the Monte Carlo Simulation with an aggregate estimated fair value of $12.0 million that was determined using the following assumptions: risk-free interest rate of 1.03%, expected term of one year, no expected dividends, and volatility of 35%. The fair value of these warrants was recorded as an operating expense in the consolidated statement of operations at the date of issuance. These warrants would have expired at the earlier of March 2025, the Company’s IPO, or a deemed liquidation event. These warrants were exercised in May 2017. Determining Fair Value of Convertible Preferred Stock Warrants The assumptions used to determine the fair value of convertible preferred stock warrants were as follows: Nine Months Ended Year Ended September 30, December 31, 2017 2016 Valuation method Black-Scholes Pricing Model Black-Scholes Pricing Model Risk-free interest rate 0.89%-2.24% 0.39%-2.25% Expected term 0.4 - 7.9 yrs 0.3 - 9.0 yrs Expected dividends 0% 0% Volatility 25% - 35% 25% - 50% Fair value of preferred stock: Convertible preferred Series B $ 0.98 $ 0.73 Convertible preferred Series C-1 0.98 0.73 Convertible preferred Series D 0.98 0.78 Convertible preferred Series F 0.98 0.91 Convertible preferred Series G 0.98 1.40 Convertible preferred Series H — 1.43 |
Common Stock
Common Stock | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Common Stock | 9. Common Stock The Company’s certificate of incorporation, as of September 30, 2017 and December 31, 2016, authorized the Company to issue up to 316,000,000 and 307,000,000 shares of common stock at $0.00001 par value per share, respectively. Each share of common stock is entitled to one vote. The holders of common stock are also entitled to receive dividends out of funds legally available therefore, when and if declared by the board of directors, subject to the approval and priority rights of holders of all classes of convertible preferred stock outstanding. No dividends have been declared to date. The Company had shares of common stock reserved for issuance as follows: As of September 30, As of December 31, 2017 2016 Conversion of convertible preferred stock 20,816,754 19,841,138 Conversion of convertible preferred stock warrants 584,148 1,559,764 Outstanding options to purchase common stock 3,813,197 2,906,596 Future grants under stock option plans 234,352 537,191 Total shares reserved for issuance 25,448,451 24,844,689 The Company’s convertible preferred stock issued and outstanding was as follows (dollars in thousands): As of September 30, 2017 As of December 31, 2016 Issued and Carrying Issued and Carrying Outstanding Value Outstanding Value Convertible preferred Series A 18,664,514 $ 15,216 18,664,514 $ 15,216 Convertible preferred Series B 12,049,428 25,834 12,049,428 25,834 Convertible preferred Series C-1 1,000,000 922 1,000,000 922 Convertible preferred Series D 57,172,304 37,950 57,172,304 37,950 Convertible preferred Series E 26,438,711 22,608 26,438,711 22,608 Convertible preferred Series F 43,103,440 40,017 43,103,440 40,017 Convertible preferred Series G 13,972,043 19,917 13,972,043 19,917 Convertible preferred Series H 35,604,438 47,805 25,848,278 36,970 Total 208,004,878 $ 210,269 198,248,718 $ 199,434 Immediately prior to the closing of the Company’s IPO, all outstanding shares of its convertible preferred stock automatically converted into 20,816,754 shares of common stock. Stock Option Plan —Under the Company’s equity incentive plans (the “Plan”), 537,191 shares of common stock have been reserved as of December 31, 2016 and 234,352 shares of common stock have been reserved as of September 30, 2017 for the issuance of incentive stock options (“ISO”); nonstatutory stock options (“NSO”); or the sales of restricted common stock to employees, officers, directors, and consultants of the Company. The exercise price of an option is determined by the board of directors when the option is granted and may not be less than 85% of the fair market value of the shares on the date of grant, provided that the exercise price of an ISO is not less than 100% of the fair market value of the shares on the date of grant and the exercise price of any option granted to a 10% stockholder is not less than 110% of the fair market value of the shares on the date of grant. ISOs granted under the Plan generally vest 25% after the completion of 12 months of service and the balance in equal monthly installments over the next 36 months of service and expire 10 years from the grant date. NSOs vest as per the specific agreement and expire 10 years from the date of grant. The Plan allows for early exercise of options prior to full vesting as determined by the board of directors and set forth in the stock option agreements governing such options. Exercises of unvested options are subject to repurchase by the Company at not less than the original exercise price upon termination of employment. For the year ended December 31, 2016 and the nine months ended September 30, 2017, there was a de minimis amount of shares subject to repurchase. Activity under the Company’s stock option plan is set forth below: Weighted- Number of Weighted Average Shares Average Remaining Aggregate Available for Exercise Contractual Intrinsic Value Issuanc e Number of Share s Pric e Term (Years ) (in thousands ) Balance—December 31, 2016 537,191 2,906,596 $ 3.20 8.1 $ 4,941 Shares authorized for grant 900,000 — Granted (1,289,482 ) 1,289,482 $ 7.04 Exercised — (296,238 ) $ 2.86 Canceled 86,643 (86,643 ) $ 4.27 Balance—September 30, 2017 234,352 3,813,197 $ 4.50 8.1 $ 15,699 Vested and exercisable—September 30, 2017 1,548,378 $ 2.83 6.8 $ 13,283 Vested and exercisable—December 31, 2016 1,208,989 $ 2.40 6.9 $ 2,994 As of September 30, 2017, approximately $5.1 million of unrecognized stock compensation costs related to awards were expected to be recognized over a weighted-average period of 3.3 years. As of December 31, 2016, approximately $2.4 million of unrecognized stock compensation costs related to awards were expected to be recognized over a weighted-average period of 2.8 years. The aggregate intrinsic value of options exercised during the nine months ended September 30, 2017 was $1.2 million. The aggregate intrinsic value of options exercised during the year ended December 31, 2016 was $6.3 million. The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2017, was $2.94 per share. The weighted-average grant-date fair value of options granted during the year ended December 31, 2016 was $1.52 per share. |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | 10. Stock-Based Compensation Expense The Company uses the straight-line vesting attribution method to record stock-based compensation expense. Stock-based compensation expense recognized in the consolidated statements of operations and comprehensive income (loss) was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ 12 $ 8 $ 26 $ 23 Research and development 251 153 544 359 Sales and marketing 46 24 110 70 General and administrative 99 72 277 254 Total $ 408 $ 257 $ 957 $ 706 No income tax benefit associated with stock-based compensation expense was recognized in the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016. The calculated fair value of option grants was estimated using the Black-Scholes model with the following assumptions for which options were granted: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Risk-free interest rate 1.94%-2.40% 1.24% - 1.58% 1.89%-2.40% 1.46% - 1.88% Expected term 6.1 - 10 yrs 6.1 - 9.8 yrs 6.1 - 10 yrs 6.1 - 10 yrs Expected dividends 0% 0 % 0% 0 % Volatility 27% - 30% 34 % 27% - 30% 34 % |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The Company recorded an income tax benefit of $27,000 and provision of $22,000 for the three months ended September 30, 2017 and 2016, respectively. The Company recorded an income tax benefit of $0.3 million and provision of $84,000 for the nine months ended September 30, 2017 and 2016, respectively. The income tax benefit for the nine months ended September 30, 2017 consisted primarily of research credit from a foreign jurisdiction. As of September 30, 2017, based on the available objective evidence, management believes it is more likely than not that the net deferred tax assets will not be realized for federal and state purposes. Accordingly, management has applied a full valuation allowance against its federal and state net deferred tax assets as of September 30, 2017. A release of such valuation allowance could cause a material increase to income in the period such determination is made. Internal Revenue Code Section 382 and similar California rules place a limitation on the amount of taxable income that can be offset by NOL carryforwards after a change in control (generally greater than 50% change in ownership). Generally, after a control change, a corporation cannot deduct NOL carryforwards in excess of the Section 382 limitations. Due to these provisions, utilization of NOL and tax credit carryforwards may be subject to annual limitations regarding their utilization against taxable income in future periods. The Company completed a Section 382 analysis in 2016 and determined an ownership change occurred in July 2005 and November 2009, which resulted in reductions to the U.S. federal and California net operating losses of $35.5 million and $34.3 million, respectively, and U.S. federal research and development credits by $1.8 million. Since no deferred tax assets have been recognized on our balance sheet related to our NOLs and tax credits, as they are fully reserved by a valuation allowance, there was no impact to the tax provision. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 12. Net Income (Loss) Per Share The following table summarizes the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income (loss) $ (1,005 ) $ 88 $ (4,362 ) $ (587 ) Weighted-average shares outstanding - basic 4,710 4,405 $ 4,603 $ 4,173 Basic net income (loss) per share attributable to common stockholders $ (0.21 ) $ 0.02 $ (0.95 ) $ (0.14 ) Effect of potential dilutive shares: Add stock options to purchase common stock — 2,809 — — Add convertible preferred stock and warrant — 21,154 — — Weighted-average number of shares outstanding—diluted 4,710 28,368 4,603 4,173 Diluted net income (loss) per share attributable to common stockholders $ (0.21 ) $ 0.00 $ (0.95 ) $ (0.14 ) Basic net income (loss) per share attributable to common stockholders is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding for the period. Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities as the holders of the Company’s convertible preferred stock are entitled to receive non-cumulative dividends, payable prior and in preference to any dividends on shares of the common stock. Any additional dividends will be distributed among the holders of convertible preferred stock and common stock pro rata, assuming the conversion of all convertible preferred stock into common stock. Under the two-class method, net income attributable to common stockholders is determined by allocating undistributed earnings, calculated as net income less current period earnings allocated to preferred stockholders based on their respective rights to receive dividends. In computing diluted net income attributed to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. Basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The Company’s convertible preferred stockholders do not have a contractual obligation to share in the Company’s losses. As such, the net income (loss) is attributed entirely to the common stockholders. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares): Three Months Ended Nine Months Ended September 30, September 30, 2017 2017 2016 Stock options to purchase common stock 3,846,714 3,407,444 2,808,653 Convertible preferred stock 20,816,754 20,373,618 19,831,374 Convertible preferred stock warrants 584,148 584,148 1,736,912 Total 25,247,616 24,365,210 24,376,939 |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 13. Segment and Geographic Information The Company operates in one reportable segment related to the design, development and sale of network communication integrated circuits. The Company’s chief operating decision-maker (“CODM”) is its Chief Executive Officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a whole for the purpose of evaluating financial performance and allocating resources. Substantially all of the Company’s long-lived assets were attributable to operations in the United States as of September 30, 2017 and December 31, 2016. The following table summarizes revenue by market (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue by market: Data Center $ 14,912 $ 16,500 $ 47,672 $ 45,759 Enterprise Infrastructure 10,815 6,034 26,190 18,149 Access 888 — 1,468 — Automotive 103 — 195 — Total revenue $ 26,718 $ 22,534 $ 75,525 $ 63,908 The Company sells its products worldwide and attributes revenue to the geography where the product is shipped. The geographical distribution of revenue as a percentage of total revenue for the periods indicated was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Malaysia 55 % 52 % 62 % 60 % China 38 34 31 28 United States — 11 1 6 Other 7 3 6 6 Total 100 % 100 % 100 % 100 % |
Concentrations
Concentrations | 9 Months Ended |
Sep. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentrations | 14. Concentrations Significant Customers —Credit risk with respect to accounts receivable is concentrated with two large customers that contribute a majority of the Company’s business and is mitigated by a relatively short collection period. Collateral is not required for accounts receivable. The fair value of accounts receivable approximates their carrying value. Revenue and accounts receivable concentrated with significant customers and their manufacturing subcontractors as a percentage of accounts receivable and total revenue were as follows: As of As of September 30, December 31, 2017 2016 Accounts Receivable: Customer A 41 % 62 % Customer B 41 23 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue: Customer A 54 % 64 % 61 % 65 % Customer B 34 25 29 24 |
Related Party Transaction
Related Party Transaction | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 15. Related Party Transaction In 2016, the Company entered into an agreement with a significant stockholder to license certain technology intended to be incorporated into the Company’s products under development. Under this agreement, the Company agreed to pay an initial $2.0 million licensing fee and additional licensing fees at a later point of the development program upon the achievement of certain development milestones. In addition, royalties may be due on products sold utilizing the licensed technology. From time to time, the Company also purchases tooling, mask sets, wafers and services from this stockholder in its ordinary course of business. For the year ended December 31, 2016, the Company recorded the license amount of $5.4 million to intangible assets, net representing $2.1 million fees paid and $3.3 million for the portion due upon milestones completion which was included in accrued and other long-term liabilities in relation to the IP license. Starting in 2016, the Company recorded $4.2 million and $3.6 million to research and development expenses, inventory and cost of revenue for the year ended December 31, 2016 and nine months ended September 30, 2017, respectively, in relation to toolings, mask sets, wafers and services. As of September 30, 2017, the total balance due this stockholder was $3.7 million, which was included in accrued, accounts payable and other long-term liabilities. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event On October 5, 2017, the Company effected a 1-for-10 reverse split of the Company’s common stock. The board of directors and stockholders also approved proportionate adjustments to the conversion prices of each series of convertible preferred stock and convertible preferred stock warrants. See Note 2 for additional information. On November 7, 2017, the Company completed its IPO of 7,840,700 shares of its common stock at the offering price of $9.00 per share, including 1,022,700 shares pursuant to the underwriters’ option to purchase additional shares of the Company’s common stock, resulting in net proceeds to the Company of $65.6 million after deducting underwriters' discounts and commissions of $4.9 million, but before deducting total offering expenses of approximately $5.4 million. Immediately prior to the closing of the IPO, all outstanding shares of the Company’s convertible preferred stock automatically converted into shares of its common stock and the Company’s convertible preferred stock warrants automatically converted into warrants to purchase common stock. On November 8, 2017, the Company used $9.2 million of the proceeds from the IPO to repay the outstanding indebtedness under the loan with Pinnacle Ventures. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Reverse Stock Split | Reverse Stock Split —In September 2017, the Company’s board of directors and stockholders approved a 1-for-10 reverse split of the Company’s common stock (the “Reverse Stock Split”), which was effected on October 5, 2017. The Company’s board of directors and stockholders also approved proportionate adjustments to the conversion prices of each series of convertible preferred stock and convertible preferred stock warrants. The number of options to purchase common stock was also proportionately adjusted to reflect the Reverse Stock Split. The par value of the common and convertible preferred stock was not adjusted as a result of the Reverse Stock Split. All share and per share information included in the accompanying condensed consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements —In May 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. It provides clarity and reduces both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation , to a change to the terms or conditions of a share-based payment award. The amendments provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those years and early adoption is permitted. The Company is currently evaluating the impact of adoption of this new standard on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In August 2015, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheets Components [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Processed wafers $ 4,321 $ 1,474 Work in process 9,298 3,310 Finished goods 2,054 2,233 Total inventories $ 15,673 $ 7,017 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Processed wafer prepayments $ 1,702 $ 653 Electronic design automation tools 495 330 Other prepaid and other current assets 1,548 626 Total other prepaid and other current assets $ 3,745 $ 1,609 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): As of September 30, As of December 31, Estimated Useful Lives 2017 2016 Machinery and equipment 2-3 years $ 12,201 $ 10,189 Production masks 4 years 4,301 4,301 Software and computer equipment 3 years 3,470 2,724 Leasehold improvements Shorter of estimated life of asset or remaining lease term 523 271 Office furniture and fixtures 3 years 114 99 Total property and equipment 20,609 17,584 Less: accumulated depreciation and amortization (12,088 ) (9,462 ) Property and equipment, net $ 8,521 $ 8,122 |
Schedule of Intangible Assets | Intangible assets, net were carried at cost, less accumulated amortization. Intangible assets were as follows (in thousands): As of September 30, As of December 31, Estimated Useful Lives 2017 2016 IP license 7 years $ 5,416 $ 5,416 Patents 10-12 years 348 348 Total intangible assets 5,764 5,764 Less: accumulated amortization (1,007 ) (401 ) Intangible assets, net $ 4,757 $ 5,363 |
Schedule of Amortization Expense Related to Amortizable Intangibles In Future Periods | Amortization expense related to amortizable intangibles in future periods as of September 30, 2017 is expected to be as follows (in thousands): 2017 (remaining) $ 202 2018 808 2019 808 2020 808 2021 and thereafter 2,131 Total $ 4,757 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Accrued compensation and related benefits $ 4,404 $ 3,585 Accrued IP license fees 320 389 Accrued technical consulting and professional services 1,363 617 Accrued royalty, rebates, and commission 428 610 Deferred income 1,303 — Other accrued liabilities 1,695 1,550 Total accrued liabilities $ 9,513 $ 6,751 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments All Other Investments [Abstract] | |
Summary of Financial Instruments | The following is a summary of financial instruments (in thousands): As of September 30, 2017 Gross Gross Unrealized Unrealized Estimated Fair Cost Gains Losses Values Available-for sale securities Commercial Paper $ 1,699 $ — $ — $ 1,699 Money market funds 7,500 — — 7,500 Corporate bonds 2,665 — — 2,665 U.S. government securities 1,199 — — 1,199 Total available-for-sale securities $ 13,063 $ — $ — $ 13,063 Reported in: Cash and cash equivalents $ 11,213 Short-term investments 1,850 Accumulated other comprehensive loss — Total available-for-sale securities $ 13,063 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | The following tables represent the Company’s financial assets and financial liabilities measured at fair value on a recurring basis categorized by the fair value hierarchy as of September 30, 2017 and December 31, 2016 (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Financial asset— available-for-sales securities Money market funds $ 7,500 $ — $ — $ 7,500 Commercial Paper — 1,699 — 1,699 Corporate bonds — 2,665 — 2,665 U.S. government securities — 1,199 — 1,199 Total financial asset—available-for-sales securities $ 7,500 $ 5,563 $ — $ 13,063 Financial liability—convertible preferred stock warrant liability $ — $ — $ 3,530 $ 3,530 As of December 31, 2016 Level 1 Level 2 Level 3 Total Financial asset—money market funds $ 15,316 $ — $ — $ 15,316 Financial liability—convertible preferred stock warrant liability $ — $ — $ 12,885 $ 12,885 |
Summary of Changes in the Fair Value of the Company's Level 3 Financial Liabilities | The summary of changes in the fair value of the Company’s Level 3 financial liabilities was as follows (in thousands): Balance as of January 1, 2017 $ 12,885 Change in fair value of convertible preferred stock warrant liability 1,383 Exercise of Series H convertible preferred stock warrants (10,738 ) Balance as of September 30, 2017 $ 3,530 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Operating Lease Payments and Purchase Obligations | As of September 30, 2017, future minimum operating lease payments and purchase obligations are as follows (in thousands): Total Operating Purchase Lease and Purchase Leases Obligations Obligations 2017 (remaining) $ 290 $ 13,850 $ 14,140 2018 662 4,943 5,605 2019 234 1,974 2,208 2020 128 198 326 2021 and thereafter 169 — 169 Total $ 1,483 $ 20,965 $ 22,448 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | Debt obligations consisted of the following (in thousands): As of September 30, As of December 31, 2017 2016 Term loans $ 9,396 $ 17,241 Final payment liability 1,443 1,192 Total term loans 10,839 18,433 Unamortized debt discount (55 ) (204 ) Balance term loans 10,784 18,229 Bank borrowings—line of credit 5,000 — Total debt 15,784 18,229 Less: long-term debt, current portion and bank borrowings—line of credit (15,784 ) (11,238 ) Long-term debt $ — $ 6,991 |
Convertible Preferred Stock W28
Convertible Preferred Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Class Of Warrant Or Right [Line Items] | |
Summary of Convertible Preferred Stock Warrants Subject to Reverse Stock Split and Converted Into Warrants Prior to IPO | The following convertible preferred stock warrants, which will be subject to the Reverse Stock Split and converted into warrants to purchase the Company’s common stock immediately prior to the closing of the IPO, were outstanding (in thousands except share and per share amounts; see Notes 1 and 2 for additional information): As of September 30, 2017 As of December 31, 2016 Exercise Price Preferred Shares Fair Preferred Shares Fair Series Per Share Expiration Date Underlying Warrants Value Underlying Warrants Value B $ 2.150275 3/9/2018 31,973 — 31,973 — C-1 (1) $ 0.010000 1/16/2019 2,472,088 2,793 2,472,088 1,760 D $ 0.666397 3/9/2018, 11/16/2019 825,332 262 825,332 272 F $ 0.928000 4/5/2023 646,551 237 646,551 154 G $ 1.431430 12/16/2024 640,129 182 640,129 93 G/H $ 1.431430 1/3/2025 196,831 56 196,831 29 H $ 0.010000 3/25/2025 — — 9,756,160 10,577 Total Warrants 4,812,904 $ 3,530 14,569,064 $ 12,885 (1) 3,006,008 shares of Series C-1 preferred stock underlie the Series C-1 warrant, of which 2,472,088 shares have vested. |
Convertible Preferred Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Schedule of Assumptions Used to Determine Fair Value of Convertible Preferred Stock | The assumptions used to determine the fair value of convertible preferred stock warrants were as follows: Nine Months Ended Year Ended September 30, December 31, 2017 2016 Valuation method Black-Scholes Pricing Model Black-Scholes Pricing Model Risk-free interest rate 0.89%-2.24% 0.39%-2.25% Expected term 0.4 - 7.9 yrs 0.3 - 9.0 yrs Expected dividends 0% 0% Volatility 25% - 35% 25% - 50% Fair value of preferred stock: Convertible preferred Series B $ 0.98 $ 0.73 Convertible preferred Series C-1 0.98 0.73 Convertible preferred Series D 0.98 0.78 Convertible preferred Series F 0.98 0.91 Convertible preferred Series G 0.98 1.40 Convertible preferred Series H — 1.43 |
Common Stock (Tables)
Common Stock (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Issuance | The Company had shares of common stock reserved for issuance as follows: As of September 30, As of December 31, 2017 2016 Conversion of convertible preferred stock 20,816,754 19,841,138 Conversion of convertible preferred stock warrants 584,148 1,559,764 Outstanding options to purchase common stock 3,813,197 2,906,596 Future grants under stock option plans 234,352 537,191 Total shares reserved for issuance 25,448,451 24,844,689 |
Summary of Convertible Preferred Stock Issued and Outstanding | The Company’s convertible preferred stock issued and outstanding was as follows (dollars in thousands): As of September 30, 2017 As of December 31, 2016 Issued and Carrying Issued and Carrying Outstanding Value Outstanding Value Convertible preferred Series A 18,664,514 $ 15,216 18,664,514 $ 15,216 Convertible preferred Series B 12,049,428 25,834 12,049,428 25,834 Convertible preferred Series C-1 1,000,000 922 1,000,000 922 Convertible preferred Series D 57,172,304 37,950 57,172,304 37,950 Convertible preferred Series E 26,438,711 22,608 26,438,711 22,608 Convertible preferred Series F 43,103,440 40,017 43,103,440 40,017 Convertible preferred Series G 13,972,043 19,917 13,972,043 19,917 Convertible preferred Series H 35,604,438 47,805 25,848,278 36,970 Total 208,004,878 $ 210,269 198,248,718 $ 199,434 |
Summary of Stock Option Plan | Activity under the Company’s stock option plan is set forth below: Weighted- Number of Weighted Average Shares Average Remaining Aggregate Available for Exercise Contractual Intrinsic Value Issuanc e Number of Share s Pric e Term (Years ) (in thousands ) Balance—December 31, 2016 537,191 2,906,596 $ 3.20 8.1 $ 4,941 Shares authorized for grant 900,000 — Granted (1,289,482 ) 1,289,482 $ 7.04 Exercised — (296,238 ) $ 2.86 Canceled 86,643 (86,643 ) $ 4.27 Balance—September 30, 2017 234,352 3,813,197 $ 4.50 8.1 $ 15,699 Vested and exercisable—September 30, 2017 1,548,378 $ 2.83 6.8 $ 13,283 Vested and exercisable—December 31, 2016 1,208,989 $ 2.40 6.9 $ 2,994 |
Stock-Based Compensation Expe30
Stock-Based Compensation Expense (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense recognized in the consolidated statements of operations and comprehensive income (loss) was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenue $ 12 $ 8 $ 26 $ 23 Research and development 251 153 544 359 Sales and marketing 46 24 110 70 General and administrative 99 72 277 254 Total $ 408 $ 257 $ 957 $ 706 |
Schedule of Fair Value Assumptions for Option Grants | The calculated fair value of option grants was estimated using the Black-Scholes model with the following assumptions for which options were granted: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Risk-free interest rate 1.94%-2.40% 1.24% - 1.58% 1.89%-2.40% 1.46% - 1.88% Expected term 6.1 - 10 yrs 6.1 - 9.8 yrs 6.1 - 10 yrs 6.1 - 10 yrs Expected dividends 0% 0 % 0% 0 % Volatility 27% - 30% 34 % 27% - 30% 34 % |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Shareholders | The following table summarizes the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income (loss) $ (1,005 ) $ 88 $ (4,362 ) $ (587 ) Weighted-average shares outstanding - basic 4,710 4,405 $ 4,603 $ 4,173 Basic net income (loss) per share attributable to common stockholders $ (0.21 ) $ 0.02 $ (0.95 ) $ (0.14 ) Effect of potential dilutive shares: Add stock options to purchase common stock — 2,809 — — Add convertible preferred stock and warrant — 21,154 — — Weighted-average number of shares outstanding—diluted 4,710 28,368 4,603 4,173 Diluted net income (loss) per share attributable to common stockholders $ (0.21 ) $ 0.00 $ (0.95 ) $ (0.14 ) |
Summary of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Weighted-average Shares Outstanding | The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares): Three Months Ended Nine Months Ended September 30, September 30, 2017 2017 2016 Stock options to purchase common stock 3,846,714 3,407,444 2,808,653 Convertible preferred stock 20,816,754 20,373,618 19,831,374 Convertible preferred stock warrants 584,148 584,148 1,736,912 Total 25,247,616 24,365,210 24,376,939 |
Segment and Geographic Inform32
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Segments | The following table summarizes revenue by market (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue by market: Data Center $ 14,912 $ 16,500 $ 47,672 $ 45,759 Enterprise Infrastructure 10,815 6,034 26,190 18,149 Access 888 — 1,468 — Automotive 103 — 195 — Total revenue $ 26,718 $ 22,534 $ 75,525 $ 63,908 |
Schedule of Geographical Distribution of Revenue | The geographical distribution of revenue as a percentage of total revenue for the periods indicated was as follows: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Malaysia 55 % 52 % 62 % 60 % China 38 34 31 28 United States — 11 1 6 Other 7 3 6 6 Total 100 % 100 % 100 % 100 % |
Concentrations (Tables)
Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Risks And Uncertainties [Abstract] | |
Schedule of Customer Concentration as Percentage of Accounts Receivable and Total Revenue | Revenue and accounts receivable concentrated with significant customers and their manufacturing subcontractors as a percentage of accounts receivable and total revenue were as follows: As of As of September 30, December 31, 2017 2016 Accounts Receivable: Customer A 41 % 62 % Customer B 41 23 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Revenue: Customer A 54 % 64 % 61 % 65 % Customer B 34 25 29 24 |
Organization, Description of 34
Organization, Description of Business and Basis for Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 08, 2017 | Nov. 07, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsidiary Sale of Stock [Line Items] | ||||
Offering expense | $ 1,057 | $ 2,174 | ||
Proceeds used to repay outstanding indebtedness | 7,846 | $ 4,053 | ||
IPO | ||||
Subsidiary Sale of Stock [Line Items] | ||||
IPO related costs recorded as other assets | $ 4,300 | |||
IPO | Subsequent Event | ||||
Subsidiary Sale of Stock [Line Items] | ||||
Net proceeds from IPO | $ 65,600 | |||
Underwriting discounts and commissions | 4,900 | |||
Offering expense | $ 5,400 | |||
Proceeds used to repay outstanding indebtedness | $ 9,200 | |||
IPO | Common Stock | Subsequent Event | ||||
Subsidiary Sale of Stock [Line Items] | ||||
Number of shares issued | 7,840,700 | |||
Offering price per share | $ 9 | |||
IPO | Common Stock | Underwriters | Subsequent Event | ||||
Subsidiary Sale of Stock [Line Items] | ||||
Number of shares issued | 1,022,700 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Description of the reverse stock split arrangement | 1-for-10 reverse split |
Ratio applied to the conversion of stock split | 0.10 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Processed wafers | $ 4,321 | $ 1,474 |
Work in process | 9,298 | 3,310 |
Finished goods | 2,054 | 2,233 |
Total inventories | $ 15,673 | $ 7,017 |
Balance Sheet Components - Sc37
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Processed wafer prepayments | $ 1,702 | $ 653 |
Electronic design automation tools | 495 | 330 |
Other prepaid and other current assets | 1,548 | 626 |
Total other prepaid and other current assets | $ 3,745 | $ 1,609 |
Balance Sheet Components - Sc38
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 20,609 | $ 17,584 |
Less: accumulated depreciation and amortization | (12,088) | (9,462) |
Property and equipment, net | 8,521 | 8,122 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 12,201 | 10,189 |
Machinery and Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 2 years | |
Machinery and Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Production Masks | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 4 years | |
Property and equipment, gross | $ 4,301 | 4,301 |
Software and Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Property and equipment, gross | $ 3,470 | 2,724 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | Shorter of estimated life of asset or remaining lease term | |
Property and equipment, gross | $ 523 | 271 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Property and equipment, gross | $ 114 | $ 99 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Balance Sheets Components [Abstract] | ||||
Depreciation and amortization of property and equipment | $ 1,000,000 | $ 600,000 | $ 2,800,000 | $ 1,800,000 |
Amortization of intangible assets | $ 202,000 | $ 72,000 | $ 606,000 | $ 89,000 |
Balance Sheet Components - Sc40
Balance Sheet Components - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5,764 | $ 5,764 |
Less: accumulated amortization | (1,007) | (401) |
Intangible assets, net | $ 4,757 | 5,363 |
IP license | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful lives | 7 years | |
Intangible assets, gross | $ 5,416 | 5,416 |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 348 | $ 348 |
Patents | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful lives | 10 years | |
Patents | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful lives | 12 years |
Balance Sheet Components - Sc41
Balance Sheet Components - Schedule of Amortization Expense Related to Amortizable Intangibles In Future Periods (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2017 (remaining) | $ 202 | |
2,018 | 808 | |
2,019 | 808 | |
2,020 | 808 | |
2021 and thereafter | 2,131 | |
Intangible assets, net | $ 4,757 | $ 5,363 |
Balance Sheet Components - Sc42
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Abstract] | ||
Accrued compensation and related benefits | $ 4,404 | $ 3,585 |
Accrued IP license fees | 320 | 389 |
Accrued technical consulting and professional services | 1,363 | 617 |
Accrued royalty, rebates, and commission | 428 | 610 |
Deferred income | 1,303 | |
Other accrued liabilities | 1,695 | 1,550 |
Total accrued liabilities | $ 9,513 | $ 6,751 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Instruments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | $ 13,063 |
Estimated Fair Values | 13,063 |
Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 1,699 |
Estimated Fair Values | 1,699 |
Money Market Fund | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 7,500 |
Estimated Fair Values | 7,500 |
Corporate Bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 2,665 |
Estimated Fair Values | 2,665 |
U.S. Government Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 1,199 |
Estimated Fair Values | 1,199 |
Cash and Cash Equivalents | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Values | 11,213 |
Short-term Investments | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Values | $ 1,850 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |||||
Cash and cash equivalents | $ 13,529,000 | $ 13,529,000 | $ 28,893,000 | $ 32,622,000 | $ 34,290,000 |
Short-term investments | 1,850,000 | 1,850,000 | |||
Sale of available-for-sale investments | 0 | 0 | |||
Available for sale, realized gain | 0 | 0 | |||
Available for sale, realized loss | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | $ 13,063 | |
Convertible preferred stock warrant liability | 3,530 | $ 12,885 |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 2,665 | |
Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 13,063 | |
Convertible preferred stock warrant liability | 3,530 | 12,885 |
Recurring Basis | Money Market Fund | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 7,500 | 15,316 |
Recurring Basis | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,699 | |
Recurring Basis | U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,199 | |
Recurring Basis | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 2,665 | |
Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 7,500 | |
Recurring Basis | Level 1 | Money Market Fund | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 7,500 | 15,316 |
Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 5,563 | |
Recurring Basis | Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,699 | |
Recurring Basis | Level 2 | U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,199 | |
Recurring Basis | Level 2 | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 2,665 | |
Recurring Basis | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Convertible preferred stock warrant liability | $ 3,530 | $ 12,885 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in the Fair Value of the Company's Level 3 Financial Liabilities (Details) - Level 3 $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 12,885 |
Change in fair value of convertible preferred stock warrant liability | 1,383 |
Exercise of Series H convertible preferred stock warrants | (10,738) |
Ending balance | $ 3,530 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Transfers within hierarchy | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Rent expense | $ 0.3 | $ 0.2 | $ 0.8 | $ 0.7 |
Commitments and Contingencies49
Commitments and Contingencies - Schedule of Future Minimum Operating Lease Payments and Purchase Obligations (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases | |
2017 (remaining) | $ 290 |
2,018 | 662 |
2,019 | 234 |
2,020 | 128 |
2021 and thereafter | 169 |
Total | 1,483 |
Purchase Obligations | |
2017 (remaining) | 13,850 |
2,018 | 4,943 |
2,019 | 1,974 |
2,020 | 198 |
Total | 20,965 |
Total Lease and Purchase Obligations | |
2017 (remaining) | 14,140 |
2,018 | 5,605 |
2,019 | 2,208 |
2,020 | 326 |
2021 and thereafter | 169 |
Total | $ 22,448 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jan. 30, 2015 | Dec. 16, 2014 | Apr. 05, 2013 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||||
Term Loan | $ 15,000,000 | $ 10,784,000 | $ 18,229,000 | |||
Debt instrument basis point | 9.25% | |||||
Interest on borrowings | 12.50% | 12.50% | ||||
Debt Instrument, payment terms | The Company was required to make interest-only payments for the first 24 months starting in April 2013 and thereafter make 18 equal installment payments of principal and interest through October 5, 2016, the original maturity date of the loan. | |||||
Debt instrument, maturity date | Oct. 5, 2016 | |||||
Additional payment due at maturity date | $ 1,443,000 | $ 1,192,000 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Feb. 1, 2018 | |||||
Convertible preferred stock issued upon conversion | 196,831 | |||||
Warrants to purchase common stock, exercise price | $ 1.4314298 | |||||
Line of credit facility | $ 11,500,000 | |||||
Additional payment due at maturity date | $ 300,000 | |||||
Initial term of agreement | 24 months | |||||
Amount outstanding under line of credit | $ 5,000,000 | |||||
Average interest rate | 7.20% | |||||
Amount available for borrowing | $ 6,500,000 | |||||
Two Thousand And Thirteen Amended Agreement | Pinnacle Ventures | ||||||
Debt Instrument [Line Items] | ||||||
Interest on borrowings | 8.75% | 9.75% | 9.25% | |||
Debt instrument, maturity date | Jul. 1, 2018 | |||||
Additional borrowings | $ 8,800,000 | |||||
Additional payment due at maturity date | $ 1,500,000 | |||||
Two Thousand And Thirteen Amended Agreement | Series G Convertible Preferred Stock Warrants | Pinnacle Ventures | ||||||
Debt Instrument [Line Items] | ||||||
Convertible preferred stock issued upon conversion | 640,129 | |||||
Warrants to purchase common stock, exercise price | $ 1.4314298 | |||||
Series F Convertible Preferred Stock | ||||||
Debt Instrument [Line Items] | ||||||
Convertible preferred stock issued upon conversion | 646,551 | |||||
Warrants to purchase common stock, exercise price | $ 0.9280000 | |||||
Warrant expiration date | Sep. 30, 2014 | |||||
Fair value of derivative | $ 180,843 | |||||
Risk-free interest rate | 0.21% | |||||
Expected volatility | 45.00% | |||||
Series F Convertible Preferred Stock | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Expected term | 5 months 16 days | |||||
Series F Convertible Preferred Stock | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Expected term | 11 months 16 days |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Apr. 05, 2013 |
Debt Disclosure [Abstract] | |||
Term loans | $ 9,396 | $ 17,241 | |
Final payment liability | 1,443 | 1,192 | |
Total term loans | 10,839 | 18,433 | |
Unamortized debt discount | (55) | (204) | |
Balance term loans | 10,784 | 18,229 | $ 15,000 |
Bank borrowings—line of credit | 5,000 | ||
Total debt | 15,784 | 18,229 | |
Less: long-term debt, current portion and bank borrowings—line of credit | $ (15,784) | (11,238) | |
Long-term debt, net | $ 6,991 |
Convertible Preferred Stock W52
Convertible Preferred Stock Warrants - Summary of Convertible Preferred Stock Warrants Subject to Reverse Stock Split and Converted Into Warrants Prior to IPO (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Class Of Warrant Or Right [Line Items] | ||
Preferred Shares underlying Warrants | 4,812,904 | 14,569,064 |
Fair Value | $ 3,530 | $ 12,885 |
Series B Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 2.150275 | |
Expiration Date | Mar. 9, 2018 | |
Preferred Shares underlying Warrants | 31,973 | 31,973 |
Series C-1 Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 0.010000 | |
Expiration Date | Jan. 16, 2019 | |
Preferred Shares underlying Warrants | 2,472,088 | 2,472,088 |
Fair Value | $ 2,793 | $ 1,760 |
Series D Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 0.666397 | |
Preferred Shares underlying Warrants | 825,332 | 825,332 |
Fair Value | $ 262 | $ 272 |
Series D Convertible Preferred Stock Warrants | Expiration Date One | ||
Class Of Warrant Or Right [Line Items] | ||
Expiration Date | Mar. 9, 2018 | |
Series D Convertible Preferred Stock Warrants | Expiration Date Two | ||
Class Of Warrant Or Right [Line Items] | ||
Expiration Date | Nov. 16, 2019 | |
Series F Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 0.928000 | |
Expiration Date | Apr. 5, 2023 | |
Preferred Shares underlying Warrants | 646,551 | 646,551 |
Fair Value | $ 237 | $ 154 |
Series G Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 1.431430 | |
Expiration Date | Dec. 16, 2024 | |
Preferred Shares underlying Warrants | 640,129 | 640,129 |
Fair Value | $ 182 | $ 93 |
Series G or Series H Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 1.431430 | |
Expiration Date | Jan. 3, 2025 | |
Preferred Shares underlying Warrants | 196,831 | 196,831 |
Fair Value | $ 56 | $ 29 |
Series H Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Warrants to purchase common stock, exercise price | $ 0.010000 | |
Expiration Date | Mar. 25, 2025 | |
Preferred Shares underlying Warrants | 9,756,160 | |
Fair Value | $ 10,577 |
Convertible Preferred Stock W53
Convertible Preferred Stock Warrants - Summary of Convertible Preferred Stock Warrants Subject to Reverse Stock Split and Converted Into Warrants Prior to IPO (Parenthetical) (Details) - shares | Sep. 30, 2017 | Dec. 31, 2016 |
Class Of Warrant Or Right [Line Items] | ||
Preferred shares underlying warrants | 4,812,904 | 14,569,064 |
Series C-1 Convertible Preferred Stock Warrants | ||
Class Of Warrant Or Right [Line Items] | ||
Convertible preferred shares having underlying warrants | 3,006,008 | 3,006,008 |
Preferred shares underlying warrants | 2,472,088 | 2,472,088 |
Convertible Preferred Stock W54
Convertible Preferred Stock Warrants - Additional Information (Details) - USD ($) | Mar. 25, 2015 | Jan. 30, 2015 | Dec. 16, 2014 | Apr. 05, 2013 | Nov. 30, 2009 | Sep. 30, 2017 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2009 |
Revolving Credit Facility | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 196,831 | ||||||||
Warrant exercise price | $ 1.4314298 | ||||||||
Line of credit facility | $ 11,500,000 | ||||||||
Series B Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant exercise price | $ 2.150275 | ||||||||
Warrant expiration date | Mar. 9, 2018 | ||||||||
Series C-1 Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant exercise price | $ 0.010000 | ||||||||
Warrant expiration date | Jan. 16, 2019 | ||||||||
Series D Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant exercise price | $ 0.666397 | ||||||||
Series D Convertible Preferred Stock Warrants | Expiration Date One | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant expiration date | Mar. 9, 2018 | ||||||||
Series D Convertible Preferred Stock Warrants | Expiration Date Two | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant expiration date | Nov. 16, 2019 | ||||||||
Series F Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant exercise price | $ 0.928000 | ||||||||
Warrant expiration date | Apr. 5, 2023 | ||||||||
Series G Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant exercise price | $ 1.431430 | ||||||||
Warrant expiration date | Dec. 16, 2024 | ||||||||
Series G or Series H Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant exercise price | $ 1.431430 | ||||||||
Warrant expiration date | Jan. 3, 2025 | ||||||||
Series F Convertible Preferred Stock | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 646,551 | ||||||||
Warrant exercise price | $ 0.9280000 | ||||||||
Risk-free interest rate | 0.21% | ||||||||
Expected volatility | 45.00% | ||||||||
Series F Convertible Preferred Stock | Maximum | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Contractual term | 11 months 16 days | ||||||||
Series F Convertible Preferred Stock | Minimum | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Contractual term | 5 months 16 days | ||||||||
Pinnacle Ventures | Series B Convertible Preferred Stock | Series B Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 125,565 | 157,538 | |||||||
Warrant exercise price | $ 2.1502753 | ||||||||
Warrant expiration period | 10 years | ||||||||
Pinnacle Ventures | Series B Convertible Preferred Stock | Series D Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 125,565 | ||||||||
Pinnacle Ventures | Series D Convertible Preferred Stock | Series B Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 405,164 | ||||||||
Warrant exercise price | $ 0.6663973 | ||||||||
Warrant expiration date | Mar. 9, 2018 | ||||||||
Pinnacle Ventures | Series D Convertible Preferred Stock | Series D Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 405,164 | 210,084 | 210,084 | ||||||
Warrant exercise price | $ 0.6663973 | ||||||||
Warrant expiration period | 10 years | ||||||||
Borrowings | $ 3,500,000 | ||||||||
Pinnacle Ventures | Series D Convertible Preferred Stock | Series D Convertible Preferred Stock Warrants | Expiration Date One | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant expiration date | Mar. 9, 2018 | ||||||||
Pinnacle Ventures | Series D Convertible Preferred Stock | Series D Convertible Preferred Stock Warrants | Expiration Date Two | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrant expiration date | Nov. 16, 2019 | ||||||||
Pinnacle Ventures | Series F Convertible Preferred Stock | Series F Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 646,551 | ||||||||
Warrant exercise price | $ 0.928 | ||||||||
Warrant expiration date | Apr. 5, 2023 | ||||||||
Pinnacle Ventures | Series G Convertible Preferred Stock | Series G Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 640,129 | ||||||||
Warrant exercise price | $ 1.4314298 | ||||||||
Warrant expiration date | Dec. 16, 2014 | ||||||||
Pinnacle Ventures | Series G Convertible Preferred Stock | Series G Convertible Preferred Stock Warrants | Monte Carlo Simulation | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Fair value | $ 173,091 | ||||||||
Risk-free interest rate | 2.13% | ||||||||
Contractual term | 9 years 8 months 16 days | ||||||||
Expected volatility | 50.00% | ||||||||
Intel Corporation | Series C-1 Convertible Preferred Stock Warrants | Maximum | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 4,006,088 | ||||||||
Intel Corporation | Series C-1 Convertible Preferred Stock | Series C-1 Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 534,000 | 3,472,088 | |||||||
Warrant exercise price | $ 0.01 | ||||||||
Warrant expiration date | Jan. 16, 2019 | ||||||||
Preferred shares, vested | 1,927,505 | ||||||||
Preferred shares underlying warrants | 1,000,000 | ||||||||
Hercules Technology Growth Capital | Series G or Series H Convertible Preferred Stock | Series G or Series H Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 196,831 | ||||||||
Warrant exercise price | $ 1.4314298 | ||||||||
Warrant expiration date | Jan. 3, 2025 | ||||||||
Hercules Technology Growth Capital | Series G or Series H Convertible Preferred Stock | Series G or Series H Convertible Preferred Stock Warrants | Revolving Credit Facility | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Line of credit facility | $ 11,500,000 | ||||||||
Hercules Technology Growth Capital | Series G or Series H Convertible Preferred Stock | Series G or Series H Convertible Preferred Stock Warrants | Monte Carlo Simulation | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Fair value | $ 50,000 | ||||||||
Risk-free interest rate | 2.06% | ||||||||
Contractual term | 9 years 9 months 30 days | ||||||||
Expected volatility | 50.00% | ||||||||
GLOBALFOUNDRIES U.S. Inc | Series G or Series H Convertible Preferred Stock | Series G or Series H Convertible Preferred Stock Warrants | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants issued | 9,756,160 | ||||||||
Warrant exercise price | $ 0.01 | ||||||||
Warrant expiration date | Mar. 25, 2025 | ||||||||
Fair value | $ 12,000,000 | ||||||||
Risk-free interest rate | 1.03% | ||||||||
Contractual term | 1 year | ||||||||
Expected volatility | 35.00% | ||||||||
Expected dividends | 0.00% | ||||||||
Warrant exercise date | 2017-05 |
Convertible Preferred Stock W55
Convertible Preferred Stock Warrants - Schedule of Assumptions Used to Determine Fair Value of Convertible Preferred Stock (Details) - Convertible Preferred Stock Warrants - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Valuation method | Black-Scholes Pricing Model | |
Expected dividends | 0.00% | 0.00% |
Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Risk-free interest rate | 0.89% | 0.39% |
Expected term | 4 months 24 days | 3 months 19 days |
Expected volatility | 25.00% | 25.00% |
Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Risk-free interest rate | 2.24% | 2.25% |
Expected term | 7 years 10 months 25 days | 9 years |
Expected volatility | 35.00% | 50.00% |
Convertible Preferred Series B | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock | $ 0.98 | $ 0.73 |
Convertible Preferred Series C One | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock | 0.98 | 0.73 |
Convertible Preferred Series D | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock | 0.98 | 0.78 |
Convertible Preferred Series F | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock | 0.98 | 0.91 |
Convertible Preferred Series G | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock | $ 0.98 | 1.40 |
Convertible Preferred Series H | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock | $ 1.43 |
Common Stock - Additional Infor
Common Stock - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 316,000,000 | 307,000,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Dividends declared | $ 0 | |
Preferred stock convertible into common stock | 20,816,754 | |
Unrecognized stock compensation costs | $ 5,100,000 | $ 2,400,000 |
Unrecognized stock compensation costs recognition period | 3 years 3 months 18 days | 2 years 9 months 19 days |
Aggregate intrinsic value of options exercised | $ 1,200,000 | $ 6,300,000 |
Weighted-average grant-date fair value of options granted | $ 2.94 | $ 1.52 |
Equity Incentive Plans | ||
Class Of Stock [Line Items] | ||
Common stock, shares reserved for issuance | 537,191 | 234,352 |
ISO | ||
Class Of Stock [Line Items] | ||
Stock option vesting period | 12 months | |
Stock option installment period | 36 months | |
Stock options expiration period | 10 years | |
ISO | Share-based Compensation Award, Tranche One | ||
Class Of Stock [Line Items] | ||
Stock option vesting percentage | 25.00% | |
ISO | Share-based Compensation Award, Tranche Three | ||
Class Of Stock [Line Items] | ||
Stock option vesting percentage | 25.00% | |
ISO | Share-based Compensation Award, Tranche Two | ||
Class Of Stock [Line Items] | ||
Stock option vesting percentage | 25.00% | |
ISO | Share Based Compensation Award Tranche Four | ||
Class Of Stock [Line Items] | ||
Stock option vesting percentage | 25.00% | |
NSO | ||
Class Of Stock [Line Items] | ||
Stock options expiration period | 10 years | |
Maximum | ||
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 316,000,000 | 307,000,000 |
Maximum | Equity Incentive Plans | ||
Class Of Stock [Line Items] | ||
Exercise price as percent of fair value of common stock | 100.00% |
Common Stock - Schedule of Comm
Common Stock - Schedule of Common Stock Reserved for Issuance (Details) - shares | Sep. 30, 2017 | Dec. 31, 2016 |
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 25,448,451 | 24,844,689 |
Convertible Preferred Stock | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 20,816,754 | 19,841,138 |
Conversion of convertible preferred stock warrants | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 584,148 | 1,559,764 |
Outstanding options to purchase common stock | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 3,813,197 | 2,906,596 |
Future grants under stock option plans | ||
Class Of Stock [Line Items] | ||
Shares reserved for issuance | 234,352 | 537,191 |
Common Stock - Summary of Conve
Common Stock - Summary of Convertible Preferred Stock Issued and Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Temporary Equity [Line Items] | ||
Carrying value | $ 210,269 | $ 199,434 |
Convertible Preferred Series A | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 18,664,514 | 18,664,514 |
Carrying value | $ 15,216 | $ 15,216 |
Convertible preferred stock, shares outstanding | 18,664,514 | 18,664,514 |
Convertible Preferred Series B | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 12,049,428 | 12,049,428 |
Carrying value | $ 25,834 | $ 25,834 |
Convertible preferred stock, shares outstanding | 12,049,428 | 12,049,428 |
Convertible Preferred Series C One | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 1,000,000 | 1,000,000 |
Carrying value | $ 922 | $ 922 |
Convertible preferred stock, shares outstanding | 1,000,000 | 1,000,000 |
Convertible Preferred Series D | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 57,172,304 | 57,172,304 |
Carrying value | $ 37,950 | $ 37,950 |
Convertible preferred stock, shares outstanding | 57,172,304 | 57,172,304 |
Convertible Preferred Series E | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 26,438,711 | 26,438,711 |
Carrying value | $ 22,608 | $ 22,608 |
Convertible preferred stock, shares outstanding | 26,438,711 | 26,438,711 |
Convertible Preferred Series F | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 43,103,440 | 43,103,440 |
Carrying value | $ 40,017 | $ 40,017 |
Convertible preferred stock, shares outstanding | 43,103,440 | 43,103,440 |
Convertible Preferred Series G | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 13,972,043 | 13,972,043 |
Carrying value | $ 19,917 | $ 19,917 |
Convertible preferred stock, shares outstanding | 13,972,043 | 13,972,043 |
Convertible Preferred Series H | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 35,604,438 | 25,848,278 |
Carrying value | $ 47,805 | $ 36,970 |
Convertible preferred stock, shares outstanding | 35,604,438 | 25,848,278 |
Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 208,004,878 | 198,248,718 |
Carrying value | $ 210,269 | $ 199,434 |
Convertible preferred stock, shares outstanding | 208,004,878 | 198,248,718 |
Common Stock - Summary of Stock
Common Stock - Summary of Stock Option Plan (Details) - Outstanding options to purchase common stock - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of shares available for issuance, beginning balance | 537,191 | |
Number of shares available for issuance, shares authorized for grant | 900,000 | |
Number of shares, granted | (1,289,482) | |
Number of shares, canceled | 86,643 | |
Number of shares available for issuance, ending balance | 234,352 | 537,191 |
Number of shares, beginning balance | 2,906,596 | |
Number of shares, granted | 1,289,482 | |
Number of shares, exercised | (296,238) | |
Number of shares, canceled | (86,643) | |
Number of shares, ending balance | 3,813,197 | 2,906,596 |
Number of shares, vested and exercisable | 1,548,378 | 1,208,989 |
Weighted average exercise price, beginning balance | $ 3.20 | |
Weighted average exercise price, granted | 7.04 | |
Weighted average exercise price, exercised | 2.86 | |
Weighted average exercise price, canceled | 4.27 | |
Weighted average exercise price, ending balance | 4.50 | $ 3.20 |
Weighted average exercise price, vested and exercisable | $ 2.83 | $ 2.40 |
Weighted average remaining contractual term | 8 years 1 month 6 days | 8 years 1 month 6 days |
Weighted average remaining contractual term, vested and exercisable | 6 years 9 months 18 days | 6 years 10 months 25 days |
Aggregate intrinsic value, beginning balance | $ 4,941 | |
Aggregate intrinsic value, ending balance | 15,699 | $ 4,941 |
Aggregate intrinsic value, vested and exercisable | $ 13,283 | $ 2,994 |
Stock-Based Compensation Expe60
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 408 | $ 257 | $ 957 | $ 706 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 12 | 8 | 26 | 23 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 251 | 153 | 544 | 359 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 46 | 24 | 110 | 70 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 99 | $ 72 | $ 277 | $ 254 |
Stock-Based Compensation Expe61
Stock-Based Compensation Expense - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Income tax benefit associated with stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation Expe62
Stock-Based Compensation Expense - Schedule of Fair Value Assumptions for Option Grants (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, minimum | 1.94% | 1.24% | 1.89% | 1.46% |
Risk-free interest rate, maximum | 2.40% | 1.58% | 2.40% | 1.88% |
Expected dividends | 0.00% | 0.00% | 0.00% | 0.00% |
Volatility | 34.00% | 34.00% | ||
Volatility, minimum | 27.00% | 27.00% | ||
Volatility, maximum | 30.00% | 30.00% | ||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term | 10 years | 9 years 9 months 18 days | 10 years | 10 years |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 27,000 | $ (22,000) | $ (331,000) | $ 84,000 |
Federal net operating loss carryforwards | 35,500,000 | 35,500,000 | ||
State net operating loss carryforwards | 34,300,000 | 34,300,000 | ||
Federal research and development credits | 1,800,000 | 1,800,000 | ||
Deferred tax assets recognized | $ 0 | $ 0 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Computation of Basic and Diluted Net Income (Loss) Per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common stockholders | $ (1,005) | $ 88 | $ (4,362) | $ (587) |
Weighted-average shares used to compute net loss per share, basic | 4,710 | 4,405 | 4,603 | 4,173 |
Net income (loss) per share attributable to common stockholders, basic | $ (0.21) | $ 0.02 | $ (0.95) | $ (0.14) |
Effect of potential dilutive shares: | ||||
Add stock options to purchase common stock | 2,809 | |||
Add convertible preferred stock and warrant | 21,154 | |||
Weighted-average number of shares outstanding—diluted | 4,710 | 28,368 | 4,603 | 4,173 |
Net income (loss) per share attributable to common stockholders, diluted | $ (0.21) | $ 0 | $ (0.95) | $ (0.14) |
Net Income (Loss) Per Share -65
Net Income (Loss) Per Share - Summary of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Weighted-average Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential dilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 25,247,616 | 24,365,210 | 24,376,939 |
Outstanding options to purchase common stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential dilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 3,846,714 | 3,407,444 | 2,808,653 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential dilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 20,816,754 | 20,373,618 | 19,831,374 |
Conversion of convertible preferred stock warrants | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential dilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 584,148 | 584,148 | 1,736,912 |
Segment and Geographic Inform66
Segment and Geographic Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment and Geographic Inform67
Segment and Geographic Information - Schedule of Revenue from Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 26,718 | $ 22,534 | $ 75,525 | $ 63,908 |
Data Center | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 14,912 | 16,500 | 47,672 | 45,759 |
Enterprise Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10,815 | $ 6,034 | 26,190 | $ 18,149 |
Access | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 888 | 1,468 | ||
Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 103 | $ 195 |
Segment and Geographic Inform68
Segment and Geographic Information - Schedule of Geographical Distribution of Revenue (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Percentage of revenue | 100.00% | 100.00% | 100.00% | 100.00% |
Malaysia | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Percentage of revenue | 55.00% | 52.00% | 62.00% | 60.00% |
China | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Percentage of revenue | 38.00% | 34.00% | 31.00% | 28.00% |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Percentage of revenue | 11.00% | 1.00% | 6.00% | |
Other | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Percentage of revenue | 7.00% | 3.00% | 6.00% | 6.00% |
Concentrations - Schedule of C
Concentrations - Schedule of Customer Concentration as Percentage of Accounts Receivable and Total Revenue (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Accounts Receivable | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 41.00% | 62.00% | |||
Accounts Receivable | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 41.00% | 23.00% | |||
Revenue | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 54.00% | 64.00% | 61.00% | 65.00% | |
Revenue | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 34.00% | 25.00% | 29.00% | 24.00% |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Intangible assets, gross | $ 5,764 | $ 5,764 |
IP license | ||
Related Party Transaction [Line Items] | ||
Intangible assets, gross | 5,416 | 5,416 |
Significant Stockholder | ||
Related Party Transaction [Line Items] | ||
License agreement initial payment | 2,000 | |
License fees paid | 2,100 | |
Due to related parties | 3,700 | 3,300 |
Research and development expenses, inventory and cost of revenue | $ 3,600 | 4,200 |
Significant Stockholder | IP license | ||
Related Party Transaction [Line Items] | ||
Intangible assets, gross | $ 5,400 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 08, 2017USD ($) | Nov. 07, 2017USD ($)$ / sharesshares | Oct. 05, 2017 | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Subsequent Event [Line Items] | |||||
Common stock reverse split ratio | 0.10 | ||||
Common stock reverse split ratio, description | 1-for-10 | ||||
Offering expense | $ 1,057 | $ 2,174 | |||
Payment of outstanding indebtedness | $ 7,846 | $ 4,053 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock reverse split ratio | 0.10 | ||||
Subsequent Event | IPO | |||||
Subsequent Event [Line Items] | |||||
Net proceeds from IPO | $ 65,600 | ||||
Underwriters discounts and commissions | 4,900 | ||||
Offering expense | $ 5,400 | ||||
Payment of outstanding indebtedness | $ 9,200 | ||||
Subsequent Event | Common Stock | IPO | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued | shares | 7,840,700 | ||||
Offering price per share | $ / shares | $ 9 | ||||
Subsequent Event | Common Stock | Underwriters’ option | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued | shares | 1,022,700 |