Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Nov. 03, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AQ | ||
Entity Registrant Name | AQUANTIA CORP | ||
Entity Central Index Key | 1,316,016 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 141,889,666 | ||
Entity Common Stock, Shares Outstanding | 33,523,683 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 8,040,000 | $ 28,893,000 |
Short-term investments | 48,362,000 | |
Accounts receivable | 15,012,000 | 11,495,000 |
Inventories | 18,469,000 | 7,017,000 |
Prepaid expenses and other current assets | 5,623,000 | 1,609,000 |
Total current assets | 95,506,000 | 49,014,000 |
Property and equipment, net | 9,973,000 | 8,122,000 |
Intangible assets, net | 4,556,000 | 5,363,000 |
Other assets | 331,000 | 3,210,000 |
Total assets | 110,366,000 | 65,709,000 |
Current liabilities: | ||
Accounts payable | 7,059,000 | 4,757,000 |
Accrued liabilities | 9,217,000 | 6,751,000 |
Long-term debt, current portion | 11,238,000 | |
Total current liabilities | 16,276,000 | 22,746,000 |
Long-term debt, net | 0 | 6,991,000 |
Convertible preferred stock warrant liability | 12,885,000 | |
Other long-term liabilities | 3,176,000 | 3,460,000 |
Total liabilities | 19,452,000 | 46,082,000 |
Commitments and contingencies (Note 6) | ||
Convertible preferred stock: | ||
Convertible preferred stock, par value of $0.00001 per share; zero and 213,351,797 shares authorized as of December 31, 2017 and 2016, respectively; zero and 19,824,700 shares issued and outstanding with aggregate liquidation preference of zero and $189,796 as of December 31, 2017 and 2016, respectively | 199,434,000 | |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.00001 par value, 10,000,000 and zero shares authorized as of December 31, 2017 and 2016, respectively; zero share outstanding at December 31, 2017 and 2016, respectively | ||
Additional paid-in capital | 288,719,000 | 12,419,000 |
Accumulated other comprehensive loss | (96,000) | |
Accumulated deficit | (197,709,000) | (192,226,000) |
Total stockholders’ equity (deficit) | 90,914,000 | (179,807,000) |
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ 110,366,000 | $ 65,709,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 10,000,000 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 400,000,000 | 307,000,000 |
Common stock, shares issued | 33,523,683 | 4,443,698 |
Common stock, shares outstanding | 33,523,683 | 4,443,698 |
Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.00001 | $ 0.00001 |
Convertible preferred stock, shares authorized | 0 | 213,351,797 |
Convertible preferred stock, shares issued | 0 | 19,824,700 |
Convertible preferred stock, shares outstanding | 0 | 19,824,700 |
Convertible preferred stock, aggregate liquidation preference | $ 0 | $ 189,796 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 103,371 | $ 86,675 | $ 80,807 |
Cost of revenue | 44,348 | 34,064 | 41,511 |
Gross profit | 59,023 | 52,611 | 39,296 |
Operating expenses: | |||
Research and development | 44,763 | 36,553 | 25,262 |
Sales and marketing | 7,235 | 5,347 | 3,756 |
General and administrative | 9,975 | 7,124 | 6,284 |
Collaboration and development charge | 12,024 | ||
Total operating expenses | 61,973 | 49,024 | 47,326 |
Income (loss) from operations | (2,950) | 3,587 | (8,030) |
Other income (expense): | |||
Interest expense | (1,735) | (3,334) | (3,321) |
Change in fair value of convertible preferred stock warrant liability | (990) | (544) | 1,591 |
Other income, net | 141 | 14 | 5 |
Total other income (expense) | (2,584) | (3,864) | (1,725) |
Loss before income tax expense | (5,534) | (277) | (9,755) |
Provision for (benefit from) income taxes | (117) | 168 | 200 |
Net loss | $ (5,417) | $ (445) | $ (9,955) |
Net loss per share, basic and diluted | $ (0.59) | $ (0.10) | $ (6.64) |
Weighted-average shares used to compute net loss per share, basic and diluted | 9,204,384 | 4,240,461 | 1,498,233 |
Comprehensive income (loss): | |||
Net loss | $ (5,417) | $ (445) | $ (9,955) |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains and losses - short-term investments | (96) | ||
Comprehensive loss | $ (5,513) | $ (445) | $ (9,955) |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive loss | Accumulated Deficit |
BALANCE, Temporary Equity, Shares at Dec. 31, 2014 | 17,206,388 | |||||
BALANCE, Temporary Equity at Dec. 31, 2014 | $ 162,183 | |||||
BALANCE, Shares at Dec. 31, 2014 | 1,268,695 | |||||
BALANCE at Dec. 31, 2014 | $ (177,095) | $ 4,731 | $ (181,826) | |||
Exercise of stock options, shares | 715,823 | |||||
Exercise of stock options | 1,371 | 1,371 | ||||
Issuance of Series H convertible preferred stock, net of issuance costs of $30, shares | 2,584,819 | |||||
Issuance of Series H convertible preferred stock, net of issuance costs of $30 | $ 36,970 | |||||
Stock-based compensation expense | 792 | 792 | ||||
Net loss | (9,955) | (9,955) | ||||
BALANCE, Temporary Equity, Shares at Dec. 31, 2015 | 19,791,207 | |||||
BALANCE, Temporary Equity at Dec. 31, 2015 | $ 199,153 | |||||
BALANCE, Shares at Dec. 31, 2015 | 1,984,518 | |||||
BALANCE at Dec. 31, 2015 | $ (184,887) | 6,894 | (191,781) | |||
Exercise of stock options, shares | 2,459,180 | 2,459,180 | ||||
Exercise of stock options | $ 4,586 | 4,586 | ||||
Issuance of Series A/H convertible preferred stock upon exercise of warrants, shares | 33,493 | |||||
Issuance of Series A/H convertible preferred stock upon exercise of warrants | $ 281 | |||||
Stock-based compensation expense | 939 | 939 | ||||
Net loss | (445) | (445) | ||||
BALANCE, Temporary Equity, Shares at Dec. 31, 2016 | 19,824,700 | |||||
BALANCE, Temporary Equity at Dec. 31, 2016 | $ 199,434 | $ 199,434 | ||||
BALANCE, Shares at Dec. 31, 2016 | 4,443,698 | 4,443,698 | ||||
BALANCE at Dec. 31, 2016 | $ (179,807) | 12,419 | (192,226) | |||
Cumulative effect upon adoption of ASU 2016-09 (Note 2) | 66 | (66) | ||||
Other comprehensive loss - unrealized loss on short-term investments | $ (96) | $ (96) | ||||
Exercise of stock options, shares | 388,621 | 388,621 | ||||
Exercise of stock options | $ 1,272 | 1,272 | ||||
Issuance of restricted stock units | 35,029 | |||||
Repurchase of unvested stocks, shares | (1,119) | |||||
Repurchase of unvested stocks | (3) | (3) | ||||
Issuance of Series A/H convertible preferred stock upon exercise of warrants, shares | 975,616 | |||||
Issuance of Series A/H convertible preferred stock upon exercise of warrants | $ 10,835 | |||||
Proceeds from initial public offering, net of issuance costs, shares | 7,840,700 | |||||
Proceeds from initial public offering, net of issuance costs | 59,886 | 59,886 | ||||
Conversion of preferred stock to common stock pursuant to IPO, Shares | (20,800,316) | 20,816,754 | ||||
Conversion of preferred stock to common stock pursuant to IPO | 210,269 | $ (210,269) | 210,269 | |||
Conversion of preferred stock warrants to common stock warrants | 3,137 | 3,137 | ||||
Stock-based compensation expense | 1,673 | 1,673 | ||||
Net loss | $ (5,417) | (5,417) | ||||
BALANCE, Shares at Dec. 31, 2017 | 33,523,683 | 33,523,683 | ||||
BALANCE at Dec. 31, 2017 | $ 90,914 | $ 288,719 | $ (96) | $ (197,709) |
CONSOLIDATED STATEMENTS OF CON6
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Issuance of Series H convertible preferred stock, issuance costs | $ 207 |
Convertible Preferred Stock | |
Issuance of Series H convertible preferred stock, issuance costs | $ 30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net loss | $ (5,417) | $ (445) | $ (9,955) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 4,720 | 2,740 | 1,856 |
Stock-based compensation expense | 1,673 | 939 | 792 |
Change in fair value of convertible preferred stock warrant liability | 990 | 544 | (1,591) |
Issuance of convertible preferred stock warrants | 12,074 | ||
Amortization of debt discount and extinguishment cost | 477 | 636 | 630 |
Non-cash interest expense related to debt costs | 175 | 552 | 600 |
Loss on disposal of property and equipment | 33 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (3,517) | (4,443) | (5,206) |
Inventories | (11,452) | 9,570 | (12,708) |
Prepaid expenses and other assets | (4,110) | 1,617 | 1,290 |
Accounts payable | 2,139 | 2,198 | 351 |
Accrued and other liabilities | 2,813 | 256 | 3,073 |
Deferred revenue | (2,059) | (2,718) | |
Net cash provided by (used in) operating activities | (11,509) | 12,138 | (11,512) |
Cash flows from investing activities | |||
Purchases of property and equipment | (5,585) | (6,308) | (4,200) |
Purchases of IP licenses | (2,129) | ||
Disposal of property and equipment | 6 | 26 | |
Proceeds from sales of short-term investments | 1,850 | ||
Purchases of short-term investments | (50,308) | ||
Net cash used in investing activities | (54,043) | (8,431) | (4,174) |
Cash flows from financing activities | |||
Repayments on short and long-term borrowings | (19,161) | (6,560) | |
Repayments on line of credit | (10,000) | (5,001) | (15,205) |
Debt issuance costs | (215) | ||
Proceeds from line of credit | 10,000 | 20,206 | |
Proceeds from issuance of convertible preferred stock | 37,000 | ||
Convertible preferred stock issuance costs | (30) | ||
Proceeds from exercise of stock options and warrants | 1,368 | 4,861 | 1,371 |
Purchases of IP licenses | (260) | ||
Proceeds from initial public offering | 65,627 | ||
Payment of costs related to initial public offering | (2,875) | (2,404) | (207) |
Net cash provided by (used in) financing activities | 44,699 | (9,104) | 42,920 |
Net increase (decrease) in cash and cash equivalents | (20,853) | (5,397) | 27,234 |
Cash and cash equivalents at beginning of period | 28,893 | 34,290 | 7,056 |
Cash and cash equivalents at end of period | 8,040 | 28,893 | 34,290 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 1,153 | 1,972 | 2,041 |
Cash paid for income taxes | 232 | 333 | 92 |
Non-cash financing and investing transactions | |||
Reclassification of fair value of warrants to equity from liabilities upon warrant exercise and IPO | 13,875 | ||
Unpaid costs related to initial public offering | 254 | 340 | 132 |
Property and equipment received and accrued | 419 | 240 | 205 |
IP licenses accrued | $ 3,286 | ||
Issuance of convertible preferred stock warrants | $ 12,074 | ||
Transfer of deferred IPO cost to equity upon IPO | $ 5,740 |
Organization, Description of Bu
Organization, Description of Business and Basis for Presentation | 12 Months Ended |
Dec. 31, 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 and access markets. Initial Public Offering — On November 7, 2017, the Company completed its initial public offering, or 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 $5.7 million which were 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 and $0.3 million of the IPO proceeds, respectively, to repay the outstanding indebtedness under the Company’s loan from Pinnacle Ventures, L.L.C. and the termination fee for the line of credit from Hercules. 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 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. All share and per share information included in the accompanying consolidated financial statements and notes thereto have been adjusted to reflect the Reverse Stock Split. Basis of Presentation and Principles of Consolidation— The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the consolidated accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Liquidity and Capital Resources — As shown in the consolidated financial statements, the Company has incurred net losses from inception through December 31, 2017, resulting in an accumulated deficit of approximately $197.7 million. In addition, the Company used cash for operating activities of $11.5 million for the year ended December 31, 2017. The Company has financed its operations primarily from cash received from product sales, sales of convertible preferred stock, and debt financing before the IPO. Based on expected cash flows generated from revenue, the Company believes that its existing cash will be sufficient to satisfy its anticipated cash requirements for the next 12 months. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting period. Significant estimates used in the preparation of the consolidated financial statements include the fair value of the Company’s common and convertible preferred stock and convertible preferred stock warrants, the valuation of deferred tax assets, uncertain tax positions, and useful lives of long-lived assets. These estimates and the underlying assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Financial Instruments —Financial instruments held by the Company consist primarily of corporate bonds, U.S. government securities, commercial paper and money market funds. The Company considers all highly liquid financial instruments purchased with an original maturity or remaining maturities of three months or less at the date of purchase to be cash equivalents. All remaining financial instruments are classified as short-term investments. The Company’s financial instruments are classified as available-for-sale. Unrealized gains and losses on securities, net of tax, are recorded in accumulated other comprehensive loss and reported as a separate component of stockholders’ equity (deficit). Interest and dividend income and realized gains or losses are included in other income, net on the consolidated statements of operations and comprehensive loss. The Company evaluates the investments periodically for possible other-than-temporary impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, the Company’s intent to hold and whether the Company will not be required to sell the security before its anticipated recovery, on a more-likely-than-not basis. If the declines in the fair value of the investments are determined to be other-than-temporary, the Company reports the credit loss portion of such decline in other income, net and the remaining noncredit loss portion in accumulated other comprehensive loss. The cost of securities sold is based on the specific identification method. Accounts Receivable —The Company’s receivables are recorded when due and payable. The carrying value of the accounts receivable represents their estimated net realizable value. Inventories —Inventories consist of processed wafers, work-in-process and finished goods and are stated at the lower of standard cost or net realizable value. Standard costs approximate actual costs and are based on a first-in, first-out basis. The Company performs detailed reviews of the net realizable value of inventories, both on hand as well as for inventories that it is committed to purchase and writes down the inventory value for estimated deterioration, excess and obsolete and other factors based on management’s assessment of future demand and market conditions. Once written down, inventory write downs are not reversed until the inventory is sold or scrapped. For each of the year ended December 31, 2017 and 2016, inventory write-downs were negligible. Deferred Initial Public Offering Costs —Deferred initial public offering costs, consisting of direct and incremental legal, accounting and other fees and costs attributable to the Company’s IPO and the preparation of the related registration statement, are capitalized. The total deferred offering costs of $5.7 million were offset against the proceeds received upon the closing of the IPO. Accordingly, the balance of other assets in the accompanying consolidated balance sheets was zero as of December 31, 2017. The balance of the other assets related to deferred initial public offering cost was $2.9 million as of December 31, 2016. Property and Equipment —Property and equipment is initially recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the estimated useful life or the original lease term, whichever is shorter. Intangible Assets —Intangible assets consist of patents and IP license and are amortized over their useful lives of 7-12 years using a straight-line amortization method. Impairment of Long-Lived Assets —Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the undiscounted future cash flows. The Company has not recorded any impairment charges in any of the periods presented. Product Warranty —The Company’s products are generally sold with a limited standard warranty for a period of one to three years, warranting that the product conforms to specifications and is free from material defects in design, materials and workmanship. To date, the Company has had negligible returns of any defective production parts. Convertible Preferred Stock Warrant Liability —The Company accounts for its outstanding convertible preferred stock warrants as derivative liabilities as the terms of the warrants are not fixed due to potential adjustments in the exercise price and the number of shares upon an equity financing at a lower price. The convertible preferred stock warrants are initially recorded at fair value when issued, with gains and losses arising from changes in fair value recognized in other income (expense) in the consolidated statements of operations and comprehensive loss at each period end while such instruments are outstanding and classified as liabilities. The fair values of the convertible preferred stock warrants issued in connection with debt agreements were recorded as debt discounts and are amortized as non-cash interest expense in the consolidated statement of operations over the expected term of the debt agreements. The fair value of the convertible preferred stock warrants issued in connection with a collaboration and development agreement in 2015 was recorded as an operating expense at the date of issuance. Upon the exercise of the warrants, the liability was reclassified to convertible preferred stock at its then fair value. Upon the completion of the IPO, the warrants were converted into warrants to purchase shares of common stock and the liability was reclassified to stockholders’ equity (deficit) at their then fair value, and will no longer be subject to fair value accounting. Convertible Preferred Stock —The Company recorded convertible preferred stock at fair value on the dates of issuance, net of issuance costs. The convertible preferred stock is recorded outside of stockholders’ equity (deficit) because the shares contain liquidation features that were not solely within the Company’s control. The Company has elected not to adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because it was uncertain whether or when an event would occur that would obligate the Company to pay the liquidation preferences to holders of shares of convertible preferred stock. Subsequent adjustments to the carrying values to the liquidation preferences were made only when it becomes probable that such a liquidation event will occur. In November 2017, all outstanding convertible preferred stock was converted to common stock and the balance of convertible preferred stock was reclassified to additional paid in capital upon the closing of the IPO. Revenue Recognition —The Company primarily sells its products direct to- its customers or to its customers’ manufacturing subcontractors. The Company offers a limited number of customers rebates and accrues an estimate of such rebates at the time revenue is recognized. Such rebates were not material in any of the periods presented, and the differences between the actual amount of such rebates and the estimates also were not material. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Delivery is considered to have occurred when title and risk of loss have passed to the customer. There are no circumstances where revenue is recognized prior to delivery. Customer purchase orders are generally used to determine the existence of an arrangement. The Company evaluates whether the price is fixed or determinable based on the payment terms associated with the transaction. With respect to collectability, the Company performs credit checks for new customers and performs ongoing evaluations of its existing customers’ financial condition. The Company defers revenue if any of the revenue recognition criteria have not been met. In 2017, a portion of the Company’s product sales was made through distributors under agreements allowing for pricing credits and rights of return. These pricing credits and right of return provisions prevent the Company from being able to reasonably estimate the final price of the product to be sold and the amount of product that could be returned pursuant to these agreements. As a result, the fixed and determinable revenue recognition criterion has not been met at the time the Company delivers products to its distributors. Accordingly, product revenue from sales made through these distributors is not recognized until the distributors ship the product to their customers. The amount of deferred revenue and deferred cost related to the sales through distributors was not significant as of December 31, 2017. Cost of Revenue —Cost of revenue consists of wafers, processed by third-party foundries, costs associated with packaging, assembly, and test paid to third-party contract manufacturers, and personnel and other costs associated with the Company’s manufacturing operations. Cost of revenue also includes allocation of overhead and facility costs, depreciation of production equipment, inventory write-downs and amortization of production mask costs. Research and Development —Research and development expenses are charged to operations as incurred. These costs include personnel costs, pre-production engineering mask costs, software license and intellectual property expenses, design tools and prototype-related expenses, facility costs, supplies and depreciation expense. The Company enters into development agreements with some of its customers that provide fees that partially offset development costs. Such fees are recognized upon completion of the contract deliverables or milestones, and acceptance by the customer, if required. Collaboration and Development Charge —Collaboration and development charge represents the fair value of Series H convertible preferred stock warrants issued to GLOBALFOUNDRIES (see Note 5) in connection with a letter of agreement to collaborate on the potential development and manufacture of products with GLOBALFOUNDRIES. While the Company is not under any contractual obligation to develop its products under this arrangement, the collaboration agreement with GLOBALFOUNDRIES has provided the Company access to GLOBALFOUNDRIES’ collaborative efforts to help the Company develop its products and shorten the time to market. In fiscal 2015, the Company expensed the fair value of the warrants on issuance because they were legally issued, fully vested, and nonforfeitable on issuance. The fair value of the warrants was recognized as an expense as opposed to an asset because there were no specific performance obligations of GLOBALFOUNDRIES; rather, the Company and GLOBALFOUNDRIES only agreed to collaborate with the possibility of a future contractual arrangement between the parties regarding the manufacture and sale of products to the Company. The Company did not acquire any intangible assets or other rights that would allow or require capitalization as an asset, nor is GLOBALFOUNDRIES obligated to provide any future service to the Company beyond the general understanding pursuant to the letter agreement to collaborate on the potential development of products for manufacture by GLOBALFOUNDRIES. Accordingly, the Company accounted for the fair value of the warrants as additional research and development expense. Because it represents a significant expense, the Company presented this charge as a separate line item in its statement of operations. Income Taxes —Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately represent actual outcomes. Stock-Based Compensation —Compensation expense related to stock-based transactions is measured and recognized in the financial statements at fair value. Stock-based compensation expense is measured at the grant date based on the fair value of the equity award and is recognized as expense, less actual forfeitures (see Note 8), over the requisite service period, which is generally the vesting period. The Company estimates the fair value of each equity award on the date of grant using the Black-Scholes option-pricing model and recognizes the related stock-based compensation expense on the straight-line method. Determining the fair value of stock-based awards at the grant date requires judgment, including estimating the common stock fair value, expected term, expected volatility, risk-free interest rate, and expected dividends. The Company accounts for equity instruments issued to nonemployees based on the fair value of the awards determined using the Black-Scholes option pricing model. The fair value of such instruments is recognized as an expense over the vesting period. Other Comprehensive Loss —During the years ended December 31, 2016 and 2015, the Company did not have any other components of comprehensive loss other than net loss and, therefore, the net loss and comprehensive loss were the same for all periods presented. As of December 31, 2017, the Company purchased financial instruments which were classified as available-for-sale securities for which an accumulated other comprehensive loss of $96,000 was recorded. Net Loss per Share of Common Stock —Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, convertible preferred stock, stock warrants and stock options are considered to be potentially dilutive securities. Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities as the convertible preferred stock was considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. 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 does not anticipate the impact of this new standard on our consolidated financial statements will be significant. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-0916-08, Revenue from Contracts with Customers (Topic 606) related to the recognition and reporting of revenue that establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The guidance allows for the use of either the full or modified retrospective transition method. This new standard will be effective for us on January 1, 2018. The Company intend to use the modified retrospective method. Under the new standards, the Company does not expect an impact for revenue to its end customers and to its customers’ manufacturing subcontractors; however, the Company does anticipate an impact on the timing for its distributor transactions. Under the new standard, the Company will recognize all revenue on sales to distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until distributor report that they have sold the product to their customers (known as “sell-through” revenue recognition). This change in methodology will cause a shift in the timing of when revenue is recognized for this class of customers. The Company recently started providing its distributors rights that would result in a deferral of revenue under the current revenue standards. Accordingly, the Company anticipates deferred revenue of $0.1 million will be recorded to retained earnings upon adoption of this new standard on the Company’s consolidated financial statements. Adopted In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In August 2016, the Financial Accounting Standards Board, (“FASB”), issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheets Components [Abstract] | |
Balance Sheet Components | 3. Balance Sheet Components Inventories consisted of the following (in thousands): December 31, 2017 2016 Processed wafers $ 3,523 $ 1,474 Work in process 10,118 3,310 Finished goods 4,828 2,233 Total inventories $ 18,469 $ 7,017 Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2017 2016 Processed wafer prepayments $ 3,443 $ 653 Electronic design automation tools 519 330 Other prepaid and other current assets 1,661 626 Total other prepaid and other current assets $ 5,623 $ 1,609 Property and equipment, net consisted of the following (in thousands): December 31, Estimated Useful Lives 2017 2016 Machinery and equipment 2-3 years $ 13,268 $ 10,189 Production masks 4 years 5,401 4,301 Software and computer equipment 3 years 3,820 2,724 Leasehold improvements Shorter of estimated life of asset or remaining lease term 539 271 Office furniture and fixtures 3 years 114 99 Total property and equipment 23,142 17,584 Less: accumulated depreciation and amortization (13,169 ) (9,462 ) Property and equipment, net $ 9,973 $ 8,122 Depreciation and amortization of property and equipment totaled $3.9 million, $2.7 million and $1.8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Intangible assets, net are carried at cost, less accumulated amortization. Intangible assets were as follows (in thousands): 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 (1,208 ) (401 ) Intangible assets, net $ 4,556 $ 5,363 Amortization of intangible assets totaled $0.8 million, $0.3 million and $33,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Amortization expense related to amortizable intangibles in future periods as of December 31, 2017 is expected to be as follows (in thousands): 2018 $ 808 2019 808 2020 808 2021 808 2022 and thereafter 1,324 Total $ 4,556 Accrued liabilities consisted of the following (in thousands): December 31, 2017 2016 Accrued compensation and related benefits $ 5,242 $ 3,585 Customer deposit 1,154 11 Accrued IP license fees 343 389 Accrued technical consulting and professional services 259 617 Accrued royalty, rebates, and commission 287 610 Other accrued liabilities 1,932 1,539 Total accrued liabilities $ 9,217 $ 6,751 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | 4. Financial Instruments The following is a summary of financial instruments (in thousands): As of December 31, 2017 Gross Gross Unrealized Unrealized Estimated Fair Cost Gains Losses Values Available-for sale securities Commercial paper $ 13,927 $ - $ (11 ) $ 13,916 Money market funds 1,269 - - 1,269 Corporate bonds 36,534 - (81 ) 36,453 U.S. government securities 2,489 - (4 ) 2,485 Total available-for-sale securities $ 54,219 $ - $ (96 ) $ 54,123 Reported in: Cash and cash equivalents $ 5,761 Short-term investments 48,362 Total available-for-sale securities $ 54,123 The contractual maturities of available-for-sale securities are presented in the following table (in thousands): December 31, 2017 Amortized Cost Basis Estimated Fair Value Due in one year or less $ 35,131 $ 35,087 Due between one and five years 19,088 19,036 $ 54,219 $ 54,123 As of December 31, 2016, the only financial instruments held were those related to money market funds of $15,316 included in cash equivalents on our consolidated balance sheet. Gross realized gains and gross realized losses on sales of available-for-sale securities for the years ended December 31, 2017 and 2016 were not significant. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016 (in thousands): As of December 31, 2017 Level 1 Level 2 Level 3 Total Financial asset— available-for-sales securities Money market funds $ 1,269 $ - $ - $ 1,269 Commercial paper - 13,916 - 13,916 Corporate bonds - 36,453 - 36,453 U.S. government securities - 2,485 - 2,485 Total financial asset—available-for-sales securities $ 1,269 $ 52,854 $ - $ 54,123 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, 2016 $ 12,346 Decrease in fair value of convertible preferred stock warrant liability 544 Exercise of Series A convertible preferred stock warrants (5 ) Balance as of December 31, 2016 $ 12,885 Change in fair value of convertible preferred stock warrant liability 990 Exercise of Series H convertible preferred stock warrants (10,738 ) Conversion of convertible preferred stock warrants to common stock warrants upon IPO (3,137 ) Balance as of December 31, 2017 $ - Convertible Preferred Stock Warrants —As of December 31, 2016, the Company has the following convertible preferred stock warrants which were converted to common stock warrants upon the closing of the IPO in November 2017 (in thousands except per share data): As of December 31, 2017 Exercise Price Common Shares Series Per Share Expiration Date Underlying Warrants B $ 21.502753 3/9/2018 3,197 C-1 (1) $ 0.100000 1/16/2019 247,208 D $ 6.663973 3/9/2018, 11/16/2019 82,532 F $ 9.280000 4/5/2023 64,655 G $ 14.314298 12/16/2024 64,012 G/H $ 14.314298 1/30/2025 19,683 Total Common Stock Warrants 481,287 (1) 300,600 shares of Series C-1 preferred stock underlies the Series C-1 warrant, of which 247,208 shares have vested. Series A Convertible Preferred Stock Warrants Issued to Pinnacle Ventures —As consideration for a 2006 Loan and Security Agreement, the Company issued fully vested warrants to Pinnacle Ventures to purchase 33,499 shares of Series A convertible preferred stock at an exercise price of $8.209000 per share which were fully exercised as of December 31, 2016. 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 15,753 shares of Series B convertible preferred stock at an exercise price of $21.502753 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 12,556 shares of Series B convertible preferred stock automatically converted into warrants to purchase 40,516 shares of Series D convertible preferred stock at $6.663973 per share. Series C-1 Convertible Preferred Stock Warrants Issued to Intel Corporation —In connection with entering into an agreement with a customer, the Company issued warrants to purchase up to 400,608 shares of Series C-1 convertible preferred stock at an exercise price of $0.10 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 December 31, 2017, warrants to purchase 53,400 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 347,208 shares vested with an initial value of $1,927,505. Prior to 2014, 100,000 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 21,008 shares of Series D convertible preferred stock. The Company also issued fully vested warrants to purchase an additional 21,008 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 12,556 shares of Series B convertible preferred stock automatically converted into fully vested warrants to purchase 40,516 shares of Series D convertible preferred stock. The Series D warrants have an exercise price of $6.663973 per share and a term of ten years. 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 64,655 Series F convertible preferred stock at an exercise price of $9.280000 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 64,012 shares of Series G convertible preferred stock at an exercise price of $14.314298 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 19,683 shares at an exercise price of $14.314298 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 —In connection with the collaboration and development agreement with GLOBALFOUNDRIES on March 25, 2015, the Company issued to GLOBALFOUNDRIES fully vested warrants to purchase 975,616 shares of Series H convertible preferred stock at an exercise price of $0.10 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 and were no longer outstanding as of December 31, 2017. The Company recorded a loss of $1.0 million, a gain $0.5 million and a loss of $1.6 million to “Change in fair value of convertible preferred stock warrant liability” in the consolidated statements of operations and comprehensive loss for the years ended December 31, 2017, 2016 and 2015, respectively, for the change in fair value of the convertible preferred stock warrants. Determining Fair Value of Convertible Preferred Stock Warrants The assumptions used to determine the fair value of convertible preferred stock warrants relate to the weighted average assumptions from January 1, 2017 through November 3, 2017, when the convertible preferred stock warrants were converted into common stock warrants and for the year ended December 31, 2016 were as follows: Year Ended 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 A $ 9.00 $ 4.40 Convertible preferred Series B 9.00 7.30 Convertible preferred Series C-1 9.00 7.30 Convertible preferred Series D 9.00 7.80 Convertible preferred Series E 9.00 7.70 Convertible preferred Series F 9.00 9.10 Convertible preferred Series G 9.00 14.00 Convertible preferred Series H 9.00 14.30 There were no transfers within the hierarchy during the years ended December 31, 2017, 2016 and 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 expires at various dates through March 2024. Under the lease agreements that contain escalating rent provisions, lease expense is recorded on a straight-line basis over the lease term. Rent expense for the years ended December 31, 2017, 2016 and 2015 was $1.2 million, $0.9 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 December 31, 2017, future minimum operating lease payments and purchase obligations are as follows (in thousands): Total Operating Purchase Lease and Purchase Leases Obligations Obligations 2018 $ 934 $ 7,770 $ 8,704 2019 1,490 2,230 3,720 2020 1,538 1,550 3,088 2021 2,037 - 2,037 2022 and thereafter 4,304 - 4,304 Total $ 10,303 $ 11,550 $ 21,853 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 no litigation is currently threatened against the Company, 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 December 31, 2017, and 2016, no liability associated with such indemnifications had been recorded. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt In connection with each of the Loan and Security Agreements with Pinnacle Ventures and the Loan and Security Agreement with Hercules Technology Growth Capital 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 $15.0 million. The interest rate on this loan was the greater of the prime rate plus 925 basis points, or 12.5% per annum. At December 31, 2014, 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 through October 5, 2016, the maturity date of the loan. In connection with the 2013 Agreement, the Company issued 64,655 fully vested Series F convertible preferred stock warrants at an exercise price of $9.280000. The agreement also provided a conversion right (the “Conversion Right”), which expired unexercised on December 31, 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 $15.0 million. The interest rate on this loan, effective January 1, 2015 is the greater of the prime rate plus 550 basis points, or 8.75% per annum. As of December 31, 2016, the interest rate on this loan was 9.25%. As of December 31, 2017, the loan was repaid in full and the 2013 Agreement was terminated. 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 19,683 shares of convertible preferred stock at an exercise price of $14.314298 per share. 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 was scheduled to mature on February 1, 2018. An additional final payment of $0.3 million was 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 was amortized to interest expense over 24 months, the initial term of the agreement. As of December 31, 2017, the line of credit was repaid in full and terminated. As of December 31, 2016, debt obligations consisted of the following (in thousands) as there were no outstanding debt as of December 31, 2017: As of December 31, 2016 Term loans $ 17,241 Final payment liability 1,192 Total term loans 18,433 Unamortized debt discount (204 ) Balance term loans 18,229 Bank borrowings—line of credit - Total debt 18,229 Less: long-term debt, current portion and bank borrowings—line of credit (11,238 ) Long-term debt $ 6,991 |
Convertible Preferred Stock and
Convertible Preferred Stock and Shareholder’s Equity and Share-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Convertible Preferred Stock and Shareholder’s Equity and Share-based Compensation | 8. Convertible Preferred Stock and Shareholder’s Equity and Share-based Compensation The Company’s certificate of incorporation, as of December 31, 2017 and 2016, authorized the Company to issue up to 400,000,000 and 307,000,000 shares of common stock, respectively, and 10,000,000 and zero shares of preferred stock, each at $0.00001 par value per share, respectively. As of December 31, 2017, no preferred stock was outstanding. 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. No dividends have been declared to date. As of December 31, 2016, the Company’s convertible preferred stock issued and outstanding was as follows (dollars in thousands): As of December 31, 2016 Issued and Carrying Outstanding Value Convertible preferred Series A 1,866,423 $ 15,216 Convertible preferred Series B 1,204,917 25,834 Convertible preferred Series C-1 100,000 922 Convertible preferred Series D 5,717,200 37,950 Convertible preferred Series E 2,643,840 22,608 Convertible preferred Series F 4,310,323 40,017 Convertible preferred Series G 1,397,178 19,917 Convertible preferred Series H 2,584,819 36,970 Total 19,824,700 $ 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. 2015 Equity Incentive Plan and 2004 Equity Incentive Plan Under the Company’s 2015 Equity Incentive Plan and 2004 Equity Incentive Plan, shares of common stock were reserved 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. 2017 Equity Incentive Plan In November 2017, the Company adopted the 2017 Equity Incentive Plan, or 2017 Plan, and all shares reserved for grant under the 2015 Equity Incentive Plan and 2004 Equity Incentive Plan were cancelled. The 2017 Plan had 1,618,735 common shares reserved, plus any shares subject to outstanding stock options or other stock awards that were granted under the 2015 Equity Incentive Plan and 2004 Equity Incentive Plan that were forfeited, terminate, expire or are otherwise not issued. In addition, the shares reserved under the 2017 Plan will automatically increase on the first day of each calendar year, beginning on January 1, 2018 and ending on January 1, 2027, by an amount equal to 5% of the total number of shares of the Company’s capital stock outstanding on the last day of the calendar month before the date of the automatic increase, or a lesser number of shares determined by the board of directors prior to the date of such automatic increase. The 2017 Plan provides for the grant of common stock awards, including incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units, performance units and performance shares to employees, directors, and consultants of the Company. All granted shares that are canceled, forfeited or expired are returned to the 2017 Plan and are available for grant in conjunction with the issuance of new equity awards. Stock options may be granted at an exercise price per share not less than 100% of the fair market value at the date of grant. If a stock option is granted to a 10% stockholder, then the exercise price per share must not be less than 110% of the fair market value per share of common stock on the grant date. Options granted are exercisable over a maximum term of 10 years from the date of grant and generally vest over a period of four years. As of December 31, 2017, 1,598,331 shares are available for grant. Stock options Activity of stock options granted under the Company’s equity incentive plans is set forth below: Weighted- Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Value Number of Shares Price Term (Years) (in thousands) Balance—January 1, 2016 4,827,785 $ 2.38 7.2 $ 9,759 Granted 570,939 $ 4.32 Exercised (2,459,180 ) $ 1.85 Canceled (32,948 ) $ 3.11 Balance—December 31, 2016 2,906,596 $ 3.20 8.1 $ 4,941 Granted 1,320,382 $ 7.08 Exercised (388,621 ) $ 3.28 Canceled (104,813 ) $ 4.53 Balance—December 31, 2017 3,733,544 $ 4.53 7.9 $ 25,386 Vested and exercisable—December 31, 2017 1,648,917 $ 2.89 6.7 $ 13,924 Vested and exercisable—December 31, 2016 1,208,989 $ 2.40 6.9 $ 2,994 Outstanding options and exercisable options information by range of exercise prices as of December 31, 2017 was as follows: Outstanding Options Exercisable Options Weighted Average Number of Remaining Weighted Number of Weighted Range of Shares Contractual Term Average Shares Average Exercise Prices (in Thousands) (in Years) Exercise Price (in Thousands) Exercise Price $ 1.10 to $ 1.90 91,432 2.64 $ 1.45 91,432 $ 1.45 $ 2.00 to $ 3.90 1,661,502 6.82 $ 2.83 1,273,112 $ 2.66 $ 4.30 to $ 7.10 1,922,160 8.95 $ 6.00 284,236 $ 4.38 $ 8.61 to $ 9.90 58,450 9.70 $ 9.20 137 $ 9.9 Total 3,733,544 7.86 $ 4.53 1,648,917 $ 2.89 As of December 31, 2017, approximately $4.8 million of unrecognized stock compensation costs related to awards were expected to be recognized over a weighted-average period of 3.1 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 for the year ended December 31, 2017 was $1.6 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 for the year ended December 31, 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. 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 loss was as follows (in thousands): Year ended December 31, 2017 2016 2015 Cost of revenue $ 47 $ 31 $ 19 Research and development 973 489 373 Sales and marketing 197 95 71 General and administrative 456 324 329 Total $ 1,673 $ 939 $ 792 No income tax benefit associated with stock-based compensation expense was recognized in the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015. The calculated fair value of option grants was estimated using the Black-Scholes model with the following assumptions for which options were granted: Year ended December 31, 2017 2016 2015 Risk-free interest rate 1.89%-2.40% 1.46%-2.43% 1.51%-2.32% Expected term 6.1 - 10 yrs 6.1 - 10 yrs 5.3 - 10 yrs Expected dividends 0 % 0 % 0 % Volatility 26% - 30% 30% - 34% 41% - 42% Employee Stock Purchase Plan Concurrent with the completion of the IPO in November 2017, the Company adopted the 2017 Employee Stock Purchase Plan, or ESPP. The ESPP authorizes the issuance of 647,494 shares of common stock outstanding under purchase rights granted to its employees. In addition, the shares reserved under the ESPP Plan will automatically increase on the first day of each calendar year, beginning on January 1, 2018 and ending on January 1, 2027, by the lesser of (i) an amount equal to 2% of the total number of shares of the Company’s capital stock outstanding on the last day of the calendar month before the date of the automatic increase, (ii) 1,000,000 shares of common stock, and (iii) a lesser number of shares determined by the board of directors prior to the date of such automatic increase. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The ESPP generally provides for offering periods and purchase periods every six months, and at the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock on the first trading day of the purchase period or on the last trading day of the offering period. Since the ESPP was established in November 2017, no shares were issued as of December 31, 2017. Shares expected to be issued under the ESPP were 226,000 for the offering period as of December 31, 2017. The calculated fair value of the shares under the ESPP was estimated using the Black-Scholes model with the following assumptions: risk-free interest rate of 1.31%, expected term of 0.5 year, expected dividends of 0% and volatility of 22%. For the year ended December 31, 2017, unamortized compensation expense related to ESPP was approximately $0.5 million, to be recognized over approximately five months. Restricted Stock Unit Awards The Company grants restricted stock units (RSU) to employees under the 2017 Plan. RSUs granted typically vest ratably over a four-year period, and are converted into shares of the Company’s common stock upon vesting on a one-for-one basis subject to the employee’s continued service to the Company over that period. The fair value of RSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. Compensation expense is recognized on a straight-line basis over the requisite service period of each grant. Each RSU award granted from the 2017 Plan will reduce the number of shares available for issuance under the 2017 Plan by one share. The number of RSU shares granted were approximately 35,000 shares at an average fair value of $11.90 per share. For the year ended December 31, 2017, unamortized compensation expense related to RSU was approximately $0.4 million, to be recognized over 1.8 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The following table represents domestic and foreign components of income (loss) before income taxes for the periods presented (in thousands): Year Ended December 31, 2017 2016 2015 Domestic $ 4,195 $ (992 ) $ (10,128 ) Foreign (9,729 ) 715 373 Total $ (5,534 ) $ (277 ) $ (9,755 ) The Company’s provision for (benefit from) income taxes was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ - $ (63 ) $ 63 State 1 1 9 Foreign (118 ) 230 128 Total current: (117 ) 168 200 Deferred: Federal - - - State - - - Foreign - - - Total deferred benefit: - - - Total provision for (benefit from) income taxes $ (117 ) $ 168 $ 200 Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Federal tax at statutory rate 34 % 34 % 34 % Foreign taxes (58 ) 5 - State taxes (2 ) 316 (71 ) Change in warrant valuation (6 ) (66 ) (37 ) Stock-based compensation (5 ) (80 ) (2 ) Research and development credit 14 343 (11 ) Changes in reserves for uncertain tax positions 3 (731 ) - Change in valuation allowance 283 114 85 2017 tax cut and jobs act impact (283 ) - - Tax effect upon adoption of ASU 2016-09 19 - - Other 3 4 - Total 2 % (61 ) % (2 ) % Significant components of the Company’s net deferred tax assets were as follows (in thousands): Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 31,286 $ 49,124 Tax credit carryforwards 9,439 7,025 Accruals recognized in different periods 1,115 1,389 Fixed assets depreciation 137 223 Stock-based compensation 113 69 Other 22 627 Gross deferred tax assets: 42,112 58,457 Deferred tax liabilities: Other (81 ) - Subtotal 42,031 58,457 Valuation allowance (42,031 ) (58,457 ) Total net deferred tax assets $ - $ - Income taxes are recorded using the asset and liability method. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income (or loss) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income tax expense (benefit) in the period that includes the enactment date. Valuation allowances are established when it is more likely than not that some portion of the deferred tax assets will not be realized. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Act”). The Act makes broad and complex changes to the U.S. tax code including, but not limited to: (1) reducing the U.S. federal corporate tax rate from 35 percent to 21 percent; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries; (3) generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; (4) requiring current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations; (5) eliminating the corporate alternative minimum tax, or AMT, and changing how existing AMT credits can be realized; (6) creating the base erosion anti-abuse tax, or BEAT, a new minimum tax; (7) creating a new limitation on deductible interest expense; and (8) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017. The Company’s remeasured certain deferred tax assets and liabilities based on rates at which they are expected to reverse in the future, which is generally 21%. The rate reduction would generally take effect on January 1, 2018. Consequently, any changes in the U.S. corporate income tax rate will impact the carrying value of the deferred tax assets. Under the new corporate income tax rate of 21%, U.S. federal and state deferred tax assets decreased by approximately $15.7 million and the valuation allowance decreased by approximately the same amount. Due to the valuation allowance on the deferred tax assets, the provisional amount recorded related to the remeasurement was zero. As of December 31, 2017, the Company's foreign subsidiaries are in a cumulative deficit. Therefore, the one-time transition tax on deemed repatriation of previously untaxed accumulated earnings and profits of foreign subsidiaries has minimal impact on the Company. Undistributed earnings of foreign subsidiaries are determined to be reinvested indefinitely. Accounting for the transition tax and the conclusion on the Company’s indefinite reinvestment have been completed pursuant to the requirements of the Act. The SEC staff issued Staff Accountant Bulletin No. 118, or SAB 118, which provides guidance on accounting for the tax effects of the Act. SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Act. As noted above, the Company has recorded a provisional amount associated with the deferred tax assets and related valuation allowance as of December 31, 2017. At December 31, 2017, the Company is still analyzing certain aspects of the Act including (a) provisions for Global Intangible Low-Taxed Income, or GILTI, wherein taxes on foreign income are imposed in excess of a deemed return on tangible assets of foreign corporations (including related accounting policy elections) and (b) state tax implications of the Act. Based on the available objective evidence, both positive and negative, management believes that it is more likely than not that the net deferred tax assets will not be realized. Accordingly, the Company has provided a full valuation allowance against net deferred tax assets as of December 31, 2017, 2016 and 2015. The valuation allowance for deferred tax assets was $42.0 million, $58.5 million and $61.7 million as of December 31, 2017, 2016 and 2015, respectively. The change in the valuation allowance for the years ended December 31, 2017, 2016 and 2015 was $(16.5) million, $(3.2) million and $(18.1) million, respectively. The changes in 2017 were primarily the result of the enacted federal tax rate decreased from 35% to 21%, resulting in a $15.7 million decrease in the deferred tax asset balance of net operating loss carryforwards. As of December 31, 2017, the Company had net operating loss, or NOL, carryforwards of approximately $176.6 million and $102.4 million for federal and state income tax purposes, respectively. The NOL carryforwards begin to expire in 2025 and 2018 for federal and state purposes, respectively. As of December 31, 2017, the Company had research and development tax credit carryforwards of approximately $6.9 million and $7.9 million for federal and state income tax purposes, respectively. The federal tax credit carryforwards begin to expire in 2026 and the state tax credits carry forward indefinitely. 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 Section 382 analysis in 2016 and determined ownership changes occurred in July 2005, November 2009 and August 2017, which resulted in reductions to the U.S. federal and California net operating losses of $34.9 million and $24.1 million, respectively, and U.S. federal research and development credits by $1.8 million. Reconciliation of the beginning and ending balances of the gross unrecognized tax benefits during the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Unrecognized benefits - beginning of period $ 4,323 $ 4,100 $ - Increases in balances related to tax positions taken during a prior period 2,567 - - Increases in balances related to tax positions taken during the current period 1,276 224 4,100 Decreases in balances related to tax positions taken during a prior period (1,119 ) (1 ) - Unrecognized benefits - end of period $ 7,047 $ 4,323 $ 4,100 The Company’s policy is to classify interest and penalties associated with unrecognized tax benefits as income tax expense. The Company had no interest or penalty accruals associated with uncertain tax benefits in its balance sheets and statements of operations and comprehensive loss for the years ended December 31, 2017, 2016 and 2015. Although the Company files U.S. federal and various state tax returns, the Company’s only major tax jurisdictions are the United States and California. As a result of NOL carryforwards, all of the Company’s tax years are open to federal and state examination in the United States. All tax years are open to examination in various foreign countries. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 10. Net Loss Per Share The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Year Ended December 31, 2017 2016 2015 Net loss $ (5,417 ) $ (445 ) $ (9,955 ) Weighted-average common shares outstanding 9,204,384 4,240,461 1,498,233 Less: Shares subject to repurchase - - - Weighted-average shares outstanding 9,204,384 4,240,461 1,498,233 Basic net loss per share $ (0.59 ) $ (0.10 ) $ (6.64 ) Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities. Prior to the IPO, the holders of the Company’s convertible preferred stock were entitled to receive non-cumulative dividends, payable prior and in preference to any dividends on shares of the common stock. Any additional dividends would 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. After to the IPO, all convertible preferred stocks were converted to common stock and the Company has one class of stock issued and outstanding. Because the Company has reported a net loss for the years ended December 31, 2017, 2016 and 2015, diluted net loss per common share is the same as basic net loss per common share for those periods. 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): As of December 31, 2017 2016 2015 Stock options to purchase common stock 3,733,544 2,831,850 4,264,705 Convertible preferred stock - 19,833,843 18,952,258 Common stock warrants 584,148 1,559,764 1,367,114 Total 4,317,692 24,225,457 24,584,077 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11. Segment Reporting 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 December 31, 2017, 2016 and 2015. The following table summarizes revenue by market (in thousands): Year Ended December 31, 2017 2016 2015 Revenue by market: Data Center $ 64,781 $ 64,024 $ 72,549 Enterprise Infrastructure 35,208 22,476 8,258 Access 3,132 175 - Automotive 250 - - Total revenue $ 103,371 $ 86,675 $ 80,807 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: Year Ended December 31, 2017 2016 2015 Malaysia 61 % 69 % 74 % China 30 26 18 United States 1 1 5 Other 8 4 3 Total 100 % 100 % 100 % |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Concentrations | 12. Concentrations Credit —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company’s cash equivalents consist of checking and money market accounts with a financial institution that management believes to be of high-credit quality; however, at times, balances exceed federally insured limits. Amounts held on deposit at financial institutions in excess of Federal Deposit Insurance Corporation-insured amounts were $0.9 million, $28.0 million and $34.1 million at December 31, 2017, 2016 and 2015, respectively. 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 receivables concentrated with significant customers and their manufacturing subcontractors, as a percentage of total revenue and accounts receivable was as follows: As of December 31, 2017 2016 Accounts Receivable: Customer A 49 % 62 % Customer B 34 23 Year Ended December 31, 2017 2016 2015 Revenue: Customer A 60 % 68 % 78 % Customer B 28 21 13 Significant Suppliers —The Company depends on a limited number of subcontractors to fabricate, assemble, and test its semiconductor devices. The Company generally sources its production through standard purchase orders and has wafer supply and assembly and test agreements with certain outside contractors. While the Company seeks to maintain a sufficient level of supply and endeavors to maintain ongoing communications with suppliers to guard against interruptions or cessation of supply, business and results of operations could be adversely affected by a stoppage or delay of supply, substitution of more expensive or less reliable products or services, receipt of defective semiconductor devices, an increase in the price of products, or an inability to obtain reduced pricing from suppliers in response to competitive pressures. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan The Company has established a 401(k) plan, which permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code. The Company may, at its discretion, make matching contributions to the 401(k) Plan. The Company has made no contributions to the 401(k) Plan since its inception. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | 14. 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 $8.0 million and $4.2 million to research and development expenses, inventory and cost of revenue for the year ended December 31, 2017 and 2016, in relation to toolings, mask sets, wafers and services. As of December 31, 2017 and 2016, the total balance due this stockholder was $3.4 million and $3.4 million, respectively, which were included in accrued, accounts payable and other long-term liabilities. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of expenses during the reporting period. Significant estimates used in the preparation of the consolidated financial statements include the fair value of the Company’s common and convertible preferred stock and convertible preferred stock warrants, the valuation of deferred tax assets, uncertain tax positions, and useful lives of long-lived assets. These estimates and the underlying assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. |
Financial Instruments | Financial Instruments —Financial instruments held by the Company consist primarily of corporate bonds, U.S. government securities, commercial paper and money market funds. The Company considers all highly liquid financial instruments purchased with an original maturity or remaining maturities of three months or less at the date of purchase to be cash equivalents. All remaining financial instruments are classified as short-term investments. The Company’s financial instruments are classified as available-for-sale. Unrealized gains and losses on securities, net of tax, are recorded in accumulated other comprehensive loss and reported as a separate component of stockholders’ equity (deficit). Interest and dividend income and realized gains or losses are included in other income, net on the consolidated statements of operations and comprehensive loss. The Company evaluates the investments periodically for possible other-than-temporary impairment and reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer, the Company’s intent to hold and whether the Company will not be required to sell the security before its anticipated recovery, on a more-likely-than-not basis. If the declines in the fair value of the investments are determined to be other-than-temporary, the Company reports the credit loss portion of such decline in other income, net and the remaining noncredit loss portion in accumulated other comprehensive loss. The cost of securities sold is based on the specific identification method. |
Accounts Receivable | Accounts Receivable —The Company’s receivables are recorded when due and payable. The carrying value of the accounts receivable represents their estimated net realizable value. |
Inventories | Inventories —Inventories consist of processed wafers, work-in-process and finished goods and are stated at the lower of standard cost or net realizable value. Standard costs approximate actual costs and are based on a first-in, first-out basis. The Company performs detailed reviews of the net realizable value of inventories, both on hand as well as for inventories that it is committed to purchase and writes down the inventory value for estimated deterioration, excess and obsolete and other factors based on management’s assessment of future demand and market conditions. Once written down, inventory write downs are not reversed until the inventory is sold or scrapped. For each of the year ended December 31, 2017 and 2016, inventory write-downs were negligible. |
Deferred Initial Public Offering Costs | Deferred Initial Public Offering Costs —Deferred initial public offering costs, consisting of direct and incremental legal, accounting and other fees and costs attributable to the Company’s IPO and the preparation of the related registration statement, are capitalized. The total deferred offering costs of $ 5.7 million were offset against the proceeds received upon the closing of the IPO. Accordingly, the balance of other assets in the accompanying consolidated balance sheets was zero as of December 31, 2017. The balance of the other assets related to deferred initial public offering cost was $2.9 million as of December 31, 2016. |
Property and Equipment | Property and Equipment —Property and equipment is initially recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the estimated useful life or the original lease term, whichever is shorter. |
Intangible Assets | Intangible Assets —Intangible assets consist of patents and IP license and are amortized over their useful lives of 7-12 years using a straight-line amortization method. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —Long-lived assets, such as property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the undiscounted future cash flows. The Company has not recorded any impairment charges in any of the periods presented. |
Product Warranty | Product Warranty —The Company’s products are generally sold with a limited standard warranty for a period of one to three years, warranting that the product conforms to specifications and is free from material defects in design, materials and workmanship. To date, the Company has had negligible returns of any defective production parts. |
Convertible Preferred Stock Warrant Liability | Convertible Preferred Stock Warrant Liability —The Company accounts for its outstanding convertible preferred stock warrants as derivative liabilities as the terms of the warrants are not fixed due to potential adjustments in the exercise price and the number of shares upon an equity financing at a lower price. The convertible preferred stock warrants are initially recorded at fair value when issued, with gains and losses arising from changes in fair value recognized in other income (expense) in the consolidated statements of operations and comprehensive loss at each period end while such instruments are outstanding and classified as liabilities. The fair values of the convertible preferred stock warrants issued in connection with debt agreements were recorded as debt discounts and are amortized as non-cash interest expense in the consolidated statement of operations over the expected term of the debt agreements. The fair value of the convertible preferred stock warrants issued in connection with a collaboration and development agreement in 2015 was recorded as an operating expense at the date of issuance. Upon the exercise of the warrants, the liability was reclassified to convertible preferred stock at its then fair value. Upon the completion of the IPO, the warrants were converted into warrants to purchase shares of common stock and the liability was reclassified to stockholders’ equity (deficit) at their then fair value, and will no longer be subject to fair value accounting. |
Convertible Preferred Stock | Convertible Preferred Stock —The Company recorded convertible preferred stock at fair value on the dates of issuance, net of issuance costs. The convertible preferred stock is recorded outside of stockholders’ equity (deficit) because the shares contain liquidation features that were not solely within the Company’s control. The Company has elected not to adjust the carrying values of the convertible preferred stock to the liquidation preferences of such shares because it was uncertain whether or when an event would occur that would obligate the Company to pay the liquidation preferences to holders of shares of convertible preferred stock. Subsequent adjustments to the carrying values to the liquidation preferences were made only when it becomes probable that such a liquidation event will occur. In November 2017, all outstanding convertible preferred stock was converted to common stock and the balance of convertible preferred stock was reclassified to additional paid in capital upon the closing of the IPO. |
Revenue Recognition | Revenue Recognition —The Company primarily sells its products direct to- its customers or to its customers’ manufacturing subcontractors. The Company offers a limited number of customers rebates and accrues an estimate of such rebates at the time revenue is recognized. Such rebates were not material in any of the periods presented, and the differences between the actual amount of such rebates and the estimates also were not material. Revenue is recognized when delivery has occurred, persuasive evidence of an arrangement exists, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Delivery is considered to have occurred when title and risk of loss have passed to the customer. There are no circumstances where revenue is recognized prior to delivery. Customer purchase orders are generally used to determine the existence of an arrangement. The Company evaluates whether the price is fixed or determinable based on the payment terms associated with the transaction. With respect to collectability, the Company performs credit checks for new customers and performs ongoing evaluations of its existing customers’ financial condition. The Company defers revenue if any of the revenue recognition criteria have not been met. In 2017, a portion of the Company’s product sales was made through distributors under agreements allowing for pricing credits and rights of return. These pricing credits and right of return provisions prevent the Company from being able to reasonably estimate the final price of the product to be sold and the amount of product that could be returned pursuant to these agreements. As a result, the fixed and determinable revenue recognition criterion has not been met at the time the Company delivers products to its distributors. Accordingly, product revenue from sales made through these distributors is not recognized until the distributors ship the product to their customers. The amount of deferred revenue and deferred cost related to the sales through distributors was not significant as of December 31, 2017. |
Cost of Revenue | Cost of Revenue —Cost of revenue consists of wafers, processed by third-party foundries, costs associated with packaging, assembly, and test paid to third-party contract manufacturers, and personnel and other costs associated with the Company’s manufacturing operations. Cost of revenue also includes allocation of overhead and facility costs, depreciation of production equipment, inventory write-downs and amortization of production mask costs. |
Research and Development | Research and Development —Research and development expenses are charged to operations as incurred. These costs include personnel costs, pre-production engineering mask costs, software license and intellectual property expenses, design tools and prototype-related expenses, facility costs, supplies and depreciation expense. The Company enters into development agreements with some of its customers that provide fees that partially offset development costs. Such fees are recognized upon completion of the contract deliverables or milestones, and acceptance by the customer, if required. |
Collaboration and Development Charge | Collaboration and Development Charge —Collaboration and development charge represents the fair value of Series H convertible preferred stock warrants issued to GLOBALFOUNDRIES (see Note 5) in connection with a letter of agreement to collaborate on the potential development and manufacture of products with GLOBALFOUNDRIES. While the Company is not under any contractual obligation to develop its products under this arrangement, the collaboration agreement with GLOBALFOUNDRIES has provided the Company access to GLOBALFOUNDRIES’ collaborative efforts to help the Company develop its products and shorten the time to market. In fiscal 2015, the Company expensed the fair value of the warrants on issuance because they were legally issued, fully vested, and nonforfeitable on issuance. The fair value of the warrants was recognized as an expense as opposed to an asset because there were no specific performance obligations of GLOBALFOUNDRIES; rather, the Company and GLOBALFOUNDRIES only agreed to collaborate with the possibility of a future contractual arrangement between the parties regarding the manufacture and sale of products to the Company. The Company did not acquire any intangible assets or other rights that would allow or require capitalization as an asset, nor is GLOBALFOUNDRIES obligated to provide any future service to the Company beyond the general understanding pursuant to the letter agreement to collaborate on the potential development of products for manufacture by GLOBALFOUNDRIES. Accordingly, the Company accounted for the fair value of the warrants as additional research and development expense. Because it represents a significant expense, the Company presented this charge as a separate line item in its statement of operations. |
Income Taxes | Income Taxes —Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statements’ carrying amounts of existing assets and liabilities and their respective tax basis and net operating loss and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. A tax position is recognized only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately represent actual outcomes. |
Stock-Based Compensation | Stock-Based Compensation —Compensation expense related to stock-based transactions is measured and recognized in the financial statements at fair value. Stock-based compensation expense is measured at the grant date based on the fair value of the equity award and is recognized as expense, less actual forfeitures (see Note 8), over the requisite service period, which is generally the vesting period. The Company estimates the fair value of each equity award on the date of grant using the Black-Scholes option-pricing model and recognizes the related stock-based compensation expense on the straight-line method. Determining the fair value of stock-based awards at the grant date requires judgment, including estimating the common stock fair value, expected term, expected volatility, risk-free interest rate, and expected dividends. The Company accounts for equity instruments issued to nonemployees based on the fair value of the awards determined using the Black-Scholes option pricing model. The fair value of such instruments is recognized as an expense over the vesting period. |
Other Comprehensive Loss | Other Comprehensive Loss —During the years ended December 31, 2016 and 2015, the Company did not have any other components of comprehensive loss other than net loss and, therefore, the net loss and comprehensive loss were the same for all periods presented. As of December 31, 2017, the Company purchased financial instruments which were classified as available-for-sale securities for which an accumulated other comprehensive loss of $ 96,000 was recorded. |
Net Loss per Share of Common Stock | Net Loss per Share of Common Stock —Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period determined using the treasury-stock and if-converted methods. For purposes of the diluted net loss per share calculation, convertible preferred stock, stock warrants and stock options are considered to be potentially dilutive securities. Basic and diluted net loss per share is presented in conformity with the two-class method required for participating securities as the convertible preferred stock was considered a participating security. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. Because the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods. |
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 does not anticipate the impact of this new standard on our consolidated financial statements will be significant. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-0916-08, Revenue from Contracts with Customers (Topic 606) related to the recognition and reporting of revenue that establishes a comprehensive new revenue recognition model designed to depict the transfer of goods or services to a customer in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. The guidance allows for the use of either the full or modified retrospective transition method. This new standard will be effective for us on January 1, 2018. The Company intend to use the modified retrospective method. Under the new standards, the Company does not expect an impact for revenue to its end customers and to its customers’ manufacturing subcontractors; however, the Company does anticipate an impact on the timing for its distributor transactions. Under the new standard, the Company will recognize all revenue on sales to distributors upon shipment and transfer of control (known as “sell-in” revenue recognition), rather than deferring recognition until distributor report that they have sold the product to their customers (known as “sell-through” revenue recognition). This change in methodology will cause a shift in the timing of when revenue is recognized for this class of customers. The Company recently started providing its distributors rights that would result in a deferral of revenue under the current revenue standards. Accordingly, the Company anticipates deferred revenue of $0.1 million will be recorded to retained earnings upon adoption of this new standard on the Company’s consolidated financial statements. Adopted In March 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In August 2016, the Financial Accounting Standards Board, (“FASB”), issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheets Components [Abstract] | |
Schedule of Inventories | Inventories consisted of the following (in thousands): December 31, 2017 2016 Processed wafers $ 3,523 $ 1,474 Work in process 10,118 3,310 Finished goods 4,828 2,233 Total inventories $ 18,469 $ 7,017 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): December 31, 2017 2016 Processed wafer prepayments $ 3,443 $ 653 Electronic design automation tools 519 330 Other prepaid and other current assets 1,661 626 Total other prepaid and other current assets $ 5,623 $ 1,609 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): December 31, Estimated Useful Lives 2017 2016 Machinery and equipment 2-3 years $ 13,268 $ 10,189 Production masks 4 years 5,401 4,301 Software and computer equipment 3 years 3,820 2,724 Leasehold improvements Shorter of estimated life of asset or remaining lease term 539 271 Office furniture and fixtures 3 years 114 99 Total property and equipment 23,142 17,584 Less: accumulated depreciation and amortization (13,169 ) (9,462 ) Property and equipment, net $ 9,973 $ 8,122 |
Schedule of Intangible Assets | Intangible assets, net are carried at cost, less accumulated amortization. Intangible assets were as follows (in thousands): 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 (1,208 ) (401 ) Intangible assets, net $ 4,556 $ 5,363 |
Schedule of Amortization Expense Related to Amortizable Intangibles In Future Periods | Amortization expense related to amortizable intangibles in future periods as of December 31, 2017 is expected to be as follows (in thousands): 2018 $ 808 2019 808 2020 808 2021 808 2022 and thereafter 1,324 Total $ 4,556 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2017 2016 Accrued compensation and related benefits $ 5,242 $ 3,585 Customer deposit 1,154 11 Accrued IP license fees 343 389 Accrued technical consulting and professional services 259 617 Accrued royalty, rebates, and commission 287 610 Other accrued liabilities 1,932 1,539 Total accrued liabilities $ 9,217 $ 6,751 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments All Other Investments [Abstract] | |
Summary of Financial Instruments | The following is a summary of financial instruments (in thousands): As of December 31, 2017 Gross Gross Unrealized Unrealized Estimated Fair Cost Gains Losses Values Available-for sale securities Commercial paper $ 13,927 $ - $ (11 ) $ 13,916 Money market funds 1,269 - - 1,269 Corporate bonds 36,534 - (81 ) 36,453 U.S. government securities 2,489 - (4 ) 2,485 Total available-for-sale securities $ 54,219 $ - $ (96 ) $ 54,123 Reported in: Cash and cash equivalents $ 5,761 Short-term investments 48,362 Total available-for-sale securities $ 54,123 |
Summary of Contractual Maturities of Available-for-sale Securities | The contractual maturities of available-for-sale securities are presented in the following table (in thousands): December 31, 2017 Amortized Cost Basis Estimated Fair Value Due in one year or less $ 35,131 $ 35,087 Due between one and five years 19,088 19,036 $ 54,219 $ 54,123 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017 and 2016 (in thousands): As of December 31, 2017 Level 1 Level 2 Level 3 Total Financial asset— available-for-sales securities Money market funds $ 1,269 $ - $ - $ 1,269 Commercial paper - 13,916 - 13,916 Corporate bonds - 36,453 - 36,453 U.S. government securities - 2,485 - 2,485 Total financial asset—available-for-sales securities $ 1,269 $ 52,854 $ - $ 54,123 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, 2016 $ 12,346 Decrease in fair value of convertible preferred stock warrant liability 544 Exercise of Series A convertible preferred stock warrants (5 ) Balance as of December 31, 2016 $ 12,885 Change in fair value of convertible preferred stock warrant liability 990 Exercise of Series H convertible preferred stock warrants (10,738 ) Conversion of convertible preferred stock warrants to common stock warrants upon IPO (3,137 ) Balance as of December 31, 2017 $ - |
Summary of Convertible Preferred Stock Warrants Converted to Common Stock Warrants Upon Closing of IPO | As of December 31, 2016, the Company has the following convertible preferred stock warrants which were converted to common stock warrants upon the closing of the IPO in November 2017 (in thousands except per share data): As of December 31, 2017 Exercise Price Common Shares Series Per Share Expiration Date Underlying Warrants B $ 21.502753 3/9/2018 3,197 C-1 (1) $ 0.100000 1/16/2019 247,208 D $ 6.663973 3/9/2018, 11/16/2019 82,532 F $ 9.280000 4/5/2023 64,655 G $ 14.314298 12/16/2024 64,012 G/H $ 14.314298 1/30/2025 19,683 Total Common Stock Warrants 481,287 (1) 300,600 shares of Series C-1 preferred stock underlies the Series C-1 warrant, of which 247,208 shares have vested. |
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 relate to the weighted average assumptions from January 1, 2017 through November 3, 2017, when the convertible preferred stock warrants were converted into common stock warrants and for the year ended December 31, 2016 were as follows: Year Ended 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 A $ 9.00 $ 4.40 Convertible preferred Series B 9.00 7.30 Convertible preferred Series C-1 9.00 7.30 Convertible preferred Series D 9.00 7.80 Convertible preferred Series E 9.00 7.70 Convertible preferred Series F 9.00 9.10 Convertible preferred Series G 9.00 14.00 Convertible preferred Series H 9.00 14.30 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Operating Lease Payments and Purchase Obligations | As of December 31, 2017, future minimum operating lease payments and purchase obligations are as follows (in thousands): Total Operating Purchase Lease and Purchase Leases Obligations Obligations 2018 $ 934 $ 7,770 $ 8,704 2019 1,490 2,230 3,720 2020 1,538 1,550 3,088 2021 2,037 - 2,037 2022 and thereafter 4,304 - 4,304 Total $ 10,303 $ 11,550 $ 21,853 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | As of December 31, 2016, debt obligations consisted of the following (in thousands) as there were no outstanding debt as of December 31, 2017: As of December 31, 2016 Term loans $ 17,241 Final payment liability 1,192 Total term loans 18,433 Unamortized debt discount (204 ) Balance term loans 18,229 Bank borrowings—line of credit - Total debt 18,229 Less: long-term debt, current portion and bank borrowings—line of credit (11,238 ) Long-term debt $ 6,991 |
Convertible Preferred Stock a28
Convertible Preferred Stock and Shareholder’s Equity and Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Convertible Preferred Stock Issued and Outstanding | As of December 31, 2016, the Company’s convertible preferred stock issued and outstanding was as follows (dollars in thousands): As of December 31, 2016 Issued and Carrying Outstanding Value Convertible preferred Series A 1,866,423 $ 15,216 Convertible preferred Series B 1,204,917 25,834 Convertible preferred Series C-1 100,000 922 Convertible preferred Series D 5,717,200 37,950 Convertible preferred Series E 2,643,840 22,608 Convertible preferred Series F 4,310,323 40,017 Convertible preferred Series G 1,397,178 19,917 Convertible preferred Series H 2,584,819 36,970 Total 19,824,700 $ 199,434 |
Summary of Stock Options Granted under Equity Incentive Plans | Activity of stock options granted under the Company’s equity incentive plans is set forth below: Weighted- Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Value Number of Shares Price Term (Years) (in thousands) Balance—January 1, 2016 4,827,785 $ 2.38 7.2 $ 9,759 Granted 570,939 $ 4.32 Exercised (2,459,180 ) $ 1.85 Canceled (32,948 ) $ 3.11 Balance—December 31, 2016 2,906,596 $ 3.20 8.1 $ 4,941 Granted 1,320,382 $ 7.08 Exercised (388,621 ) $ 3.28 Canceled (104,813 ) $ 4.53 Balance—December 31, 2017 3,733,544 $ 4.53 7.9 $ 25,386 Vested and exercisable—December 31, 2017 1,648,917 $ 2.89 6.7 $ 13,924 Vested and exercisable—December 31, 2016 1,208,989 $ 2.40 6.9 $ 2,994 |
Summary of Outstanding and Exercisable Options by Range of Exercise Prices | Outstanding options and exercisable options information by range of exercise prices as of December 31, 2017 was as follows: Outstanding Options Exercisable Options Weighted Average Number of Remaining Weighted Number of Weighted Range of Shares Contractual Term Average Shares Average Exercise Prices (in Thousands) (in Years) Exercise Price (in Thousands) Exercise Price $ 1.10 to $ 1.90 91,432 2.64 $ 1.45 91,432 $ 1.45 $ 2.00 to $ 3.90 1,661,502 6.82 $ 2.83 1,273,112 $ 2.66 $ 4.30 to $ 7.10 1,922,160 8.95 $ 6.00 284,236 $ 4.38 $ 8.61 to $ 9.90 58,450 9.70 $ 9.20 137 $ 9.9 Total 3,733,544 7.86 $ 4.53 1,648,917 $ 2.89 |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense recognized in the consolidated statements of operations and comprehensive loss was as follows (in thousands): Year ended December 31, 2017 2016 2015 Cost of revenue $ 47 $ 31 $ 19 Research and development 973 489 373 Sales and marketing 197 95 71 General and administrative 456 324 329 Total $ 1,673 $ 939 $ 792 |
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: Year ended December 31, 2017 2016 2015 Risk-free interest rate 1.89%-2.40% 1.46%-2.43% 1.51%-2.32% Expected term 6.1 - 10 yrs 6.1 - 10 yrs 5.3 - 10 yrs Expected dividends 0 % 0 % 0 % Volatility 26% - 30% 30% - 34% 41% - 42% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Domestic and Foreign Components of Income (Loss) Before Income Taxes | The following table represents domestic and foreign components of income (loss) before income taxes for the periods presented (in thousands): Year Ended December 31, 2017 2016 2015 Domestic $ 4,195 $ (992 ) $ (10,128 ) Foreign (9,729 ) 715 373 Total $ (5,534 ) $ (277 ) $ (9,755 ) |
Summary of Provision for (Benefit from) Income Taxes | The Company’s provision for (benefit from) income taxes was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ - $ (63 ) $ 63 State 1 1 9 Foreign (118 ) 230 128 Total current: (117 ) 168 200 Deferred: Federal - - - State - - - Foreign - - - Total deferred benefit: - - - Total provision for (benefit from) income taxes $ (117 ) $ 168 $ 200 |
Summary of Reconciliation of Statutory Federal Income Tax Rate to Company’s Effective Income Tax Rate | Reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Federal tax at statutory rate 34 % 34 % 34 % Foreign taxes (58 ) 5 - State taxes (2 ) 316 (71 ) Change in warrant valuation (6 ) (66 ) (37 ) Stock-based compensation (5 ) (80 ) (2 ) Research and development credit 14 343 (11 ) Changes in reserves for uncertain tax positions 3 (731 ) - Change in valuation allowance 283 114 85 2017 tax cut and jobs act impact (283 ) - - Tax effect upon adoption of ASU 2016-09 19 - - Other 3 4 - Total 2 % (61 ) % (2 ) % |
Summary of Significant Components of Company’s Net Deferred Tax Assets | Significant components of the Company’s net deferred tax assets were as follows (in thousands): Year Ended December 31, 2017 2016 Deferred tax assets: Net operating loss carryforwards $ 31,286 $ 49,124 Tax credit carryforwards 9,439 7,025 Accruals recognized in different periods 1,115 1,389 Fixed assets depreciation 137 223 Stock-based compensation 113 69 Other 22 627 Gross deferred tax assets: 42,112 58,457 Deferred tax liabilities: Other (81 ) - Subtotal 42,031 58,457 Valuation allowance (42,031 ) (58,457 ) Total net deferred tax assets $ - $ - |
Summary of Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits | Reconciliation of the beginning and ending balances of the gross unrecognized tax benefits during the years ended December 31, 2017, 2016 and 2015 were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Unrecognized benefits - beginning of period $ 4,323 $ 4,100 $ - Increases in balances related to tax positions taken during a prior period 2,567 - - Increases in balances related to tax positions taken during the current period 1,276 224 4,100 Decreases in balances related to tax positions taken during a prior period (1,119 ) (1 ) - Unrecognized benefits - end of period $ 7,047 $ 4,323 $ 4,100 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Shareholders | The following table summarizes the computation of basic and diluted net loss per share (in thousands, except share and per share data): Year Ended December 31, 2017 2016 2015 Net loss $ (5,417 ) $ (445 ) $ (9,955 ) Weighted-average common shares outstanding 9,204,384 4,240,461 1,498,233 Less: Shares subject to repurchase - - - Weighted-average shares outstanding 9,204,384 4,240,461 1,498,233 Basic net loss per share $ (0.59 ) $ (0.10 ) $ (6.64 ) |
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): As of December 31, 2017 2016 2015 Stock options to purchase common stock 3,733,544 2,831,850 4,264,705 Convertible preferred stock - 19,833,843 18,952,258 Common stock warrants 584,148 1,559,764 1,367,114 Total 4,317,692 24,225,457 24,584,077 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Segments | The following table summarizes revenue by market (in thousands): Year Ended December 31, 2017 2016 2015 Revenue by market: Data Center $ 64,781 $ 64,024 $ 72,549 Enterprise Infrastructure 35,208 22,476 8,258 Access 3,132 175 - Automotive 250 - - Total revenue $ 103,371 $ 86,675 $ 80,807 |
Schedule of Geographical Distribution of Revenue | The geographical distribution of revenue as a percentage of total revenue for the periods indicated was as follows: Year Ended December 31, 2017 2016 2015 Malaysia 61 % 69 % 74 % China 30 26 18 United States 1 1 5 Other 8 4 3 Total 100 % 100 % 100 % |
Concentrations (Tables)
Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks And Uncertainties [Abstract] | |
Schedule of Customer Concentration as Percentage of Accounts Receivable and Total Revenue | Revenue and accounts receivables concentrated with significant customers and their manufacturing subcontractors, as a percentage of total revenue and accounts receivable was as follows: As of December 31, 2017 2016 Accounts Receivable: Customer A 49 % 62 % Customer B 34 23 Year Ended December 31, 2017 2016 2015 Revenue: Customer A 60 % 68 % 78 % Customer B 28 21 13 |
Organization, Description of 33
Organization, Description of Business and Basis for Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 07, 2017USD ($)$ / sharesshares | Sep. 30, 2017 | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Subsidiary Sale of Stock [Line Items] | |||||
Net proceeds from IPO | $ 65,627 | ||||
Offering expense | 2,875 | $ 2,404 | $ 207 | ||
Proceeds used to repay outstanding indebtedness | $ 19,161 | 6,560 | |||
Description of the reverse stock split arrangement | 1-for-10 reverse split | ||||
Ratio applied to the conversion of stock split | 0.10 | ||||
Accumulated deficit | $ 197,709 | 192,226 | |||
Cash used for operating activities | $ 11,509 | $ (12,138) | $ 11,512 | ||
Common Stock | |||||
Subsidiary Sale of Stock [Line Items] | |||||
Number of shares issued | shares | 7,840,700 | ||||
IPO | |||||
Subsidiary Sale of Stock [Line Items] | |||||
Net proceeds from IPO | $ 65,600 | ||||
Underwriting discounts and commissions | 4,900 | ||||
Offering expense | 5,700 | ||||
Proceeds used to repay outstanding indebtedness | 9,200 | ||||
Line of credit termination fee | $ 300 | ||||
IPO | Common Stock | |||||
Subsidiary Sale of Stock [Line Items] | |||||
Number of shares issued | shares | 7,840,700 | ||||
Offering price per share | $ / shares | $ 9 | ||||
IPO | Common Stock | Underwriters | |||||
Subsidiary Sale of Stock [Line Items] | |||||
Number of shares issued | shares | 1,022,700 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Line Items] | |||
Other assets | $ 331,000 | $ 3,210,000 | |
Accumulated other comprehensive loss | $ 96,000 | ||
ASU 2016-08 | Subsequent Event | |||
Summary of Significant Accounting Policies [Line Items] | |||
Anticipated deferred revenue that will be recorded in retained earnings | $ 100,000 | ||
Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Standard product warranty | 1 year | ||
Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Standard product warranty | 3 years | ||
Patents and IP License | Minimum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible assets, estimated useful life | 7 years | ||
Patents and IP License | Maximum | |||
Summary of Significant Accounting Policies [Line Items] | |||
Intangible assets, estimated useful life | 12 years | ||
IPO | |||
Summary of Significant Accounting Policies [Line Items] | |||
Total deferred offering costs | $ 5,700,000 | $ 2,900,000 | |
Other assets | $ 0 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Processed wafers | $ 3,523 | $ 1,474 |
Work in process | 10,118 | 3,310 |
Finished goods | 4,828 | 2,233 |
Total inventories | $ 18,469 | $ 7,017 |
Balance Sheet Components - Sc36
Balance Sheet Components - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Processed wafer prepayments | $ 3,443 | $ 653 |
Electronic design automation tools | 519 | 330 |
Other prepaid and other current assets | 1,661 | 626 |
Total other prepaid and other current assets | $ 5,623 | $ 1,609 |
Balance Sheet Components - Sc37
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 23,142 | $ 17,584 |
Less: accumulated depreciation and amortization | (13,169) | (9,462) |
Property and equipment, net | 9,973 | 8,122 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 13,268 | 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 | $ 5,401 | 4,301 |
Software and Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Property and equipment, gross | $ 3,820 | 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 | $ 539 | 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 ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance Sheets Components [Abstract] | |||
Depreciation and amortization of property and equipment | $ 3,900,000 | $ 2,700,000 | $ 1,800,000 |
Amortization of intangible assets | $ 800,000 | $ 300,000 | $ 33,000 |
Balance Sheet Components - Sc39
Balance Sheet Components - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5,764 | $ 5,764 |
Less: accumulated amortization | (1,208) | (401) |
Intangible assets, net | $ 4,556 | 5,363 |
IP license | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 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 life | 10 years | |
Patents | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 12 years |
Balance Sheet Components - Sc40
Balance Sheet Components - Schedule of Amortization Expense Related to Amortizable Intangibles In Future Periods (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ||
2,018 | $ 808 | |
2,019 | 808 | |
2,020 | 808 | |
2,021 | 808 | |
2022 and thereafter | 1,324 | |
Intangible assets, net | $ 4,556 | $ 5,363 |
Balance Sheet Components - Sc41
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities Current [Abstract] | ||
Accrued compensation and related benefits | $ 5,242 | $ 3,585 |
Customer deposit | 1,154 | 11 |
Accrued IP license fees | 343 | 389 |
Accrued technical consulting and professional services | 259 | 617 |
Accrued royalty, rebates, and commission | 287 | 610 |
Other accrued liabilities | 1,932 | 1,539 |
Total accrued liabilities | $ 9,217 | $ 6,751 |
Financial Instruments - Summary
Financial Instruments - Summary of Financial Instruments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | $ 54,219 |
Gross Unrealized Losses | (96) |
Estimated Fair Values | 54,123 |
Commercial Paper | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 13,927 |
Gross Unrealized Losses | (11) |
Estimated Fair Values | 13,916 |
Money Market Fund | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 1,269 |
Estimated Fair Values | 1,269 |
Corporate Bonds | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 36,534 |
Gross Unrealized Losses | (81) |
Estimated Fair Values | 36,453 |
U.S. Government Securities | |
Schedule Of Available For Sale Securities [Line Items] | |
Cost | 2,489 |
Gross Unrealized Losses | (4) |
Estimated Fair Values | 2,485 |
Cash and Cash Equivalents | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Values | 5,761 |
Short-term Investments | |
Schedule Of Available For Sale Securities [Line Items] | |
Estimated Fair Values | $ 48,362 |
Financial Instruments - Summa43
Financial Instruments - Summary of Contractual Maturities of Available-for-sale Securities (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Amortized Cost Basis | |
Due in one year or less | $ 35,131 |
Due between one and five years | 19,088 |
Total | 54,219 |
Estimated Fair Values | |
Due in one year or less | 35,087 |
Due between one and five years | 19,036 |
Total | $ 54,123 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities | $ 54,123,000 | |
Available for sale securities, continuous loss position, 12 months or longer | $ 0 | $ 0 |
Money Market Fund | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities | $ 15,316,000 |
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 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | $ 54,123 | |
Convertible preferred stock warrant liability | $ 12,885 | |
Money Market Fund | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 15,316 | |
Level 1 | Money Market Fund | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 15,316 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Convertible preferred stock warrant liability | $ 12,885 | |
Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 36,453 | |
Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 54,123 | |
Recurring Basis | Money Market Fund | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,269 | |
Recurring Basis | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 13,916 | |
Recurring Basis | U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 2,485 | |
Recurring Basis | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,269 | |
Recurring Basis | Level 1 | Money Market Fund | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 1,269 | |
Recurring Basis | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 52,854 | |
Recurring Basis | Level 2 | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 13,916 | |
Recurring Basis | Level 2 | U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 2,485 | |
Recurring Basis | Corporate Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | 36,453 | |
Recurring Basis | Corporate Bonds | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated Fair Values | $ 36,453 |
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 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 12,885 | $ 12,346 |
Change in fair value of convertible preferred stock warrant liability | 990 | 544 |
Ending balance | 12,885 | |
Conversion of convertible preferred stock warrants to common stock warrants upon IPO | (3,137) | |
Series A Convertible Preferred Stock Warrants | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Exercise of convertible preferred stock warrants | $ (5) | |
Series H Convertible Preferred Stock Warrants | ||
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Exercise of convertible preferred stock warrants | $ (10,738) |
Fair Value Measurements - Sum47
Fair Value Measurements - Summary of Convertible Preferred Stock Warrants Converted to Common Stock Warrants Upon Closing of IPO (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Class Of Warrant Or Right [Line Items] | |
Common Shares Underlying Warrants | 481,287 |
Series B Convertible Preferred Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Warrants to purchase common stock, exercise price | $ / shares | $ 21.502753 |
Expiration Date | Mar. 9, 2018 |
Common Shares Underlying Warrants | 3,197 |
Series C-1 Convertible Preferred Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Warrants to purchase common stock, exercise price | $ / shares | $ 0.100000 |
Expiration Date | Jan. 16, 2019 |
Common Shares Underlying Warrants | 247,208 |
Series D Convertible Preferred Stock Warrants | Expiration Date One | |
Class Of Warrant Or Right [Line Items] | |
Warrants to purchase common stock, exercise price | $ / shares | $ 6.663973 |
Expiration Date | Mar. 9, 2018 |
Common Shares Underlying Warrants | 82,532 |
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 | $ / shares | $ 9.280000 |
Expiration Date | Apr. 5, 2023 |
Common Shares Underlying Warrants | 64,655 |
Series G Convertible Preferred Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Warrants to purchase common stock, exercise price | $ / shares | $ 14.314298 |
Expiration Date | Dec. 16, 2024 |
Common Shares Underlying Warrants | 64,012 |
Series G or Series H Convertible Preferred Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Warrants to purchase common stock, exercise price | $ / shares | $ 14.314298 |
Expiration Date | Jan. 30, 2025 |
Common Shares Underlying Warrants | 19,683 |
Fair Value Measurements - Sum48
Fair Value Measurements - Summary of Convertible Preferred Stock Warrants Converted to Common Stock Warrants Upon Closing of IPO (Parenthetical) (Details) | Dec. 31, 2017shares |
Class Of Warrant Or Right [Line Items] | |
Common Shares Underlying Warrants | 481,287 |
Series C-1 Convertible Preferred Stock Warrants | |
Class Of Warrant Or Right [Line Items] | |
Convertible preferred shares having underlying warrants | 300,600 |
Common Shares Underlying Warrants | 247,208 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 25, 2015 | Jan. 30, 2015 | Dec. 16, 2014 | Apr. 05, 2013 | Nov. 30, 2009 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2009 |
Total Other Income (Expense) | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Gain (loss) on fair value of convertible preferred stock warrants | $ (1,000,000) | $ 500,000 | $ (1,600,000) | ||||||||
Series B Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants to purchase common stock, exercise price | $ 21.502753 | ||||||||||
Expiration Date | Mar. 9, 2018 | ||||||||||
Series C-1 Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants to purchase common stock, exercise price | $ 0.100000 | ||||||||||
Expiration Date | Jan. 16, 2019 | ||||||||||
Series F Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants to purchase common stock, exercise price | $ 9.280000 | ||||||||||
Expiration Date | Apr. 5, 2023 | ||||||||||
Series G Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants to purchase common stock, exercise price | $ 14.314298 | ||||||||||
Expiration Date | Dec. 16, 2024 | ||||||||||
Series G or Series H Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants to purchase common stock, exercise price | $ 14.314298 | ||||||||||
Expiration Date | Jan. 30, 2025 | ||||||||||
Series F Convertible Preferred Stock | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 64,655 | ||||||||||
Warrants to purchase common stock, exercise price | $ 9.280000 | ||||||||||
Risk-free interest rate | 0.21% | ||||||||||
Expected volatility | 45.00% | ||||||||||
Series F Convertible Preferred Stock | Minimum | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Contractual term | 5 months 15 days | ||||||||||
Series F Convertible Preferred Stock | Maximum | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Contractual term | 11 months 15 days | ||||||||||
Pinnacle Ventures | Series A Convertible Preferred Stock Warrants | Series A Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 33,499 | ||||||||||
Warrants to purchase common stock, exercise price | $ 8.209000 | ||||||||||
Pinnacle Ventures | Series B Convertible Preferred Stock | Series B Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 12,556 | 15,753 | |||||||||
Warrants to purchase common stock, exercise price | $ 21.502753 | ||||||||||
Warrant expiration period | 10 years | ||||||||||
Pinnacle Ventures | Series B Convertible Preferred Stock | Series D Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 12,556 | ||||||||||
Pinnacle Ventures | Series D Convertible Preferred Stock | Series B Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 40,516 | ||||||||||
Warrants to purchase common stock, exercise price | $ 6.663973 | ||||||||||
Pinnacle Ventures | Series D Convertible Preferred Stock | Series D Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 40,516 | 21,008 | 21,008 | ||||||||
Warrants to purchase common stock, exercise price | $ 6.663973 | ||||||||||
Warrant expiration period | 10 years | ||||||||||
Borrowings | $ 3,500,000 | ||||||||||
Pinnacle Ventures | Series B Convertible Preferred Stock | Series C-1 Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 347,208 | 53,400 | |||||||||
Preferred shares, vested | 1,927,505 | ||||||||||
Preferred shares underlying warrants | 100,000 | ||||||||||
Pinnacle Ventures | Series B Convertible Preferred Stock | Series C-1 Convertible Preferred Stock Warrants | Maximum | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 400,608 | ||||||||||
Warrants to purchase common stock, exercise price | $ 0.10 | ||||||||||
Expiration Date | Jan. 16, 2019 | ||||||||||
Pinnacle Ventures | Series F Convertible Preferred Stock | Series F Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 64,655 | ||||||||||
Warrants to purchase common stock, exercise price | $ 9.280000 | ||||||||||
Expiration Date | Apr. 30, 2023 | ||||||||||
Pinnacle Ventures | Series G Convertible Preferred Stock | Series G Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 64,012 | ||||||||||
Warrants to purchase common stock, exercise price | $ 14.314298 | ||||||||||
Expiration Date | Dec. 31, 2024 | ||||||||||
Pinnacle Ventures | Series G Convertible Preferred Stock | Series G Convertible Preferred Stock Warrants | Monte Carlo Simulation | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Fair value | $ 173,091 | ||||||||||
Risk-free interest rate | 2.13% | ||||||||||
Contractual term | 9 years 8 months 15 days | ||||||||||
Expected volatility | 50.00% | ||||||||||
Hercules Technology Growth Capital | Series G or Series H Convertible Preferred Stock Warrants | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 19,683 | ||||||||||
Warrants to purchase common stock, exercise price | $ 14.314298 | ||||||||||
Expiration Date | Jan. 31, 2025 | ||||||||||
Line of credit facility | $ 11,500,000 | ||||||||||
Hercules Technology Growth Capital | Series G or Series H Convertible Preferred Stock Warrants | Monte Carlo Simulation | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Fair value | $ 50,000 | ||||||||||
Risk-free interest rate | 2.06% | ||||||||||
Contractual term | 9 years 9 months 29 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 | |||||||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||||||||||
Warrants issued | 975,616 | ||||||||||
Warrants to purchase common stock, exercise price | $ 0.10 | ||||||||||
Expiration Date | Mar. 31, 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 |
Fair Value Measurements - Sch50
Fair Value Measurements - Schedule of Assumptions Used to Determine Fair Value of Convertible Preferred Stock (Details) - Convertible Preferred Stock Warrants - $ / shares | 12 Months Ended | |
Dec. 31, 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 | 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% |
Contractual 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% |
Contractual term | 7 years 10 months 25 days | 9 years |
Expected volatility | 35.00% | 50.00% |
Convertible Preferred Series A | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | $ 9 | $ 4.40 |
Convertible Preferred Series B | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | 9 | 7.30 |
Convertible Preferred Series C-1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | 9 | 7.30 |
Convertible Preferred Series D | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | 9 | 7.80 |
Convertible Preferred Series E | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | 9 | 7.70 |
Convertible Preferred Series F | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | 9 | 9.10 |
Convertible Preferred Series G | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | 9 | 14 |
Convertible Preferred Series H | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value of preferred stock: | $ 9 | $ 14.30 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense | $ 1,200,000 | $ 900,000 | $ 700,000 |
Liability associated with indemnifications | $ 0 | $ 0 | |
Operating Leases, Indemnification Agreements, Description | 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 |
Commitments and Contingencies52
Commitments and Contingencies - Schedule of Future Minimum Operating Lease Payments and Purchase Obligations (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases | |
2,018 | $ 934 |
2,019 | 1,490 |
2,020 | 1,538 |
2,021 | 2,037 |
2022 and thereafter | 4,304 |
Total | 10,303 |
Purchase Obligations | |
2,018 | 7,770 |
2,019 | 2,230 |
2,020 | 1,550 |
Total | 11,550 |
Total Lease and Purchase Obligations | |
2,018 | 8,704 |
2,019 | 3,720 |
2,020 | 3,088 |
2,021 | 2,037 |
2022 and thereafter | 4,304 |
Total | $ 21,853 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Dec. 31, 2016 | Jan. 30, 2015 | Dec. 31, 2014 | Dec. 16, 2014 | Apr. 05, 2013 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Term Loan | $ 18,229,000 | $ 15,000,000 | ||||
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 through October 5, 2016, the maturity date of the loan. | |||||
Debt instrument, maturity date | Oct. 5, 2016 | |||||
Additional payment due at maturity date | 1,192,000 | |||||
Outstanding debt | $ 6,991,000 | $ 0 | ||||
Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, maturity date | Feb. 1, 2018 | |||||
Convertible preferred stock issued upon conversion | 19,683 | |||||
Warrants to purchase common stock, exercise price | $ 14.314298 | |||||
Line of credit facility | $ 11,500,000 | |||||
Additional payment due at maturity date | $ 300,000 | |||||
Initial term of agreement | 24 months | |||||
Two Thousand And Thirteen Amended Agreement | Pinnacle Ventures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument basis point | 5.50% | |||||
Interest on borrowings | 9.25% | 8.75% | ||||
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 | 64,012 | |||||
Warrants to purchase common stock, exercise price | $ 14.314298 | |||||
Series F Convertible Preferred Stock | ||||||
Debt Instrument [Line Items] | ||||||
Convertible preferred stock issued upon conversion | 64,655 | |||||
Warrants to purchase common stock, exercise price | $ 9.280000 | |||||
Warrant expiration date | Dec. 31, 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 15 days | |||||
Series F Convertible Preferred Stock | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Expected term | 11 months 15 days |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 05, 2013 |
Debt Disclosure [Abstract] | |||
Term loans | $ 17,241,000 | ||
Final payment liability | 1,192,000 | ||
Total term loans | 18,433,000 | ||
Unamortized debt discount | (204,000) | ||
Balance term loans | 18,229,000 | $ 15,000,000 | |
Total debt | 18,229,000 | ||
Less: long-term debt, current portion and bank borrowings—line of credit | (11,238,000) | ||
Outstanding debt | $ 0 | $ 6,991,000 |
Convertible Preferred Stock a55
Convertible Preferred Stock and Shareholder's Equity and Share-based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2017 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Common stock, shares authorized | 400,000,000 | 307,000,000 | ||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||
Preferred stock, shares authorized | 10,000,000 | 0 | ||
Preferred stock, par value | $ 0.00001 | $ 0.00001 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Dividends declared | $ 0 | |||
Preferred stock convertible into common stock | 20,816,754 | |||
Unamortized compensation expense to be recognized | $ 4,800,000 | $ 2,400,000 | ||
Unamortized compensation expense, period for recognition | 3 years 1 month 6 days | 2 years 9 months 18 days | ||
Aggregate intrinsic value of options exercised | $ 1,600,000 | $ 6,300,000 | ||
Weighted-average grant-date fair value of options granted | $ 2.94 | $ 1.52 | ||
Income tax benefit associated with stock-based compensation expense | $ 0 | $ 0 | $ 0 | |
Expected dividends | 0.00% | 0.00% | 0.00% | |
2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Exercise price determination description | 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. | |||
Exercise price per share | 85.00% | |||
Equity incentive plan expiration period | 10 years | |||
2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Nonstatutory Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Equity incentive plan expiration period | 10 years | |||
2017 Equity Incentive Plan | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Vesting period | 4 years | |||
Common shares reserved | 1,618,735 | |||
Percentage of increase in common shares reserved | 5.00% | |||
Shares available for grant | 1,598,331 | |||
Description of restricted stock unit awards conversion basis upon vesting | one-for-one | |||
Number of shares reduced from shares available for issuance upon restricted stock unit awards grants | 1 | |||
2017 Equity Incentive Plan | Restricted Stock Unit Awards | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Vesting period | 4 years | |||
Unamortized compensation expense to be recognized | $ 400,000 | |||
Unamortized compensation expense, period for recognition | 1 year 9 months 18 days | |||
Number of shares granted | 35,000 | |||
Average fair value of shares granted | $ 11.90 | |||
ESPP | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Common shares reserved | 1,000,000 | |||
Shares available for grant | 226,000 | |||
Unamortized compensation expense to be recognized | $ 500,000 | |||
Unamortized compensation expense, period for recognition | 5 years | |||
Common stock shares authorized | 647,494 | |||
Percentage of shares of capital stock outstanding | 2.00% | |||
Percentage of payroll deduction on eligible compensation | 15.00% | |||
Percentage of shares purchased at fair market value of common stock | 85.00% | |||
Shares issued under plan | 0 | |||
Risk free interest rate | 1.31% | |||
Expected term | 6 months | |||
Expected dividends | 0.00% | |||
Expected volatility rate | 22.00% | |||
Share-based Compensation Award, Tranche One | 2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Vesting percentage | 25.00% | |||
Vesting period | 12 months | |||
Share-based Compensation Award, Tranche Two | 2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Vesting percentage | 25.00% | |||
Vesting period | 12 months | |||
Share-based Compensation Award, Tranche Three | 2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Vesting percentage | 25.00% | |||
Vesting period | 12 months | |||
Share Based Compensation Award Tranche Four | 2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Vesting percentage | 25.00% | |||
Vesting period | 12 months | |||
Maximum | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Common stock, shares authorized | 400,000,000 | 307,000,000 | ||
Expected term | 10 years | 10 years | 10 years | |
Maximum | 2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Exercise price per share | 100.00% | |||
Maximum | 2015 Equity Incentive Plan and 2004 Equity Incentive Plan | Incentive Stock Options | 10% stockholder | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Exercise price per share | 110.00% | |||
Maximum | 2017 Equity Incentive Plan | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Exercise price per share | 100.00% | |||
Options granted exercise period | 10 years | |||
Maximum | 2017 Equity Incentive Plan | 10% stockholder | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Exercise price per share | 110.00% | |||
Minimum | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Expected term | 6 years 1 month 6 days | 6 years 1 month 6 days | 5 years 3 months 19 days |
Convertible Preferred Stock a56
Convertible Preferred Stock and Shareholder's Equity and Share-based Compensation - Summary of Convertible Preferred Stock Issued and Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Temporary Equity [Line Items] | ||
Convertible preferred stock, carrying value | $ 199,434 | |
Convertible Preferred Series A | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 1,866,423 | |
Convertible preferred stock, carrying value | $ 15,216 | |
Convertible preferred stock, shares outstanding | 1,866,423 | |
Convertible Preferred Series B | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 1,204,917 | |
Convertible preferred stock, carrying value | $ 25,834 | |
Convertible preferred stock, shares outstanding | 1,204,917 | |
Convertible Preferred Series C-1 | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 100,000 | |
Convertible preferred stock, carrying value | $ 922 | |
Convertible preferred stock, shares outstanding | 100,000 | |
Convertible Preferred Series D | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 5,717,200 | |
Convertible preferred stock, carrying value | $ 37,950 | |
Convertible preferred stock, shares outstanding | 5,717,200 | |
Convertible Preferred Series E | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 2,643,840 | |
Convertible preferred stock, carrying value | $ 22,608 | |
Convertible preferred stock, shares outstanding | 2,643,840 | |
Convertible Preferred Series F | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 4,310,323 | |
Convertible preferred stock, carrying value | $ 40,017 | |
Convertible preferred stock, shares outstanding | 4,310,323 | |
Convertible Preferred Series G | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 1,397,178 | |
Convertible preferred stock, carrying value | $ 19,917 | |
Convertible preferred stock, shares outstanding | 1,397,178 | |
Convertible Preferred Series H | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 2,584,819 | |
Convertible preferred stock, carrying value | $ 36,970 | |
Convertible preferred stock, shares outstanding | 2,584,819 | |
Convertible Preferred Stock | ||
Temporary Equity [Line Items] | ||
Convertible preferred stock, shares issued | 0 | 19,824,700 |
Convertible preferred stock, carrying value | $ 199,434 | |
Convertible preferred stock, shares outstanding | 0 | 19,824,700 |
Convertible Preferred Stock a57
Convertible Preferred Stock and Shareholder's Equity and Share-based Compensation - Summary of Stock Options Granted under Equity Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Temporary Equity [Abstract] | |||
Beginning balance | 2,906,596 | 4,827,785 | |
Granted | 1,320,382 | 570,939 | |
Exercised | (388,621) | (2,459,180) | |
Canceled | (104,813) | (32,948) | |
Ending balance | 3,733,544 | 2,906,596 | 4,827,785 |
Vested and exercisable—December 31, 2017 | 1,648,917 | 1,208,989 | |
Vested and exercisable—December 31, 2016 | 1,208,989 | ||
Weighted average exercise price of options outstanding, beginning | $ 3.20 | $ 2.38 | |
Weighted average exercise price of options granted | 7.08 | 4.32 | |
Weighted average exercise price of options exercised | 3.28 | 1.85 | |
Weighted average exercise price of options canceled | 4.53 | 3.11 | |
Weighted average exercise price of options outstanding, ending | 4.53 | 3.20 | $ 2.38 |
Weighted average exercise price of options vested and exercisable | 2.89 | $ 2.40 | |
Weighted average exercise price of options vested and exercisable | $ 2.40 | ||
Aggregate intrinsic value of options outstanding, beginning | $ 25,386 | $ 4,941 | $ 9,759 |
Aggregate intrinsic value of options vested and exercisable | $ 13,924 | $ 2,994 | |
Weighted average remaining contractual life of options outstanding | 7 years 10 months 25 days | 8 years 1 month 6 days | 7 years 2 months 12 days |
Weighted average remaining contractual life of options vested and exercisable | 6 years 8 months 12 days | 6 years 10 months 25 days |
Convertible Preferred Stock a58
Convertible Preferred Stock and Shareholder's Equity and Share-based Compensation - Summary of Outstanding and Exercisable Options by Range of Exercise Prices (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Number of Shares, Outstanding Options | shares | 3,733,544 |
Weighted Average Remaining Contractual Term (in Years), Outstanding Options | 7 years 10 months 10 days |
Weighted Average Exercise Price, Outstanding Options | $ 4.53 |
Number of Shares, Exercisable options | shares | 1,648,917 |
Weighted Average Exercise Price, Exercisable Options | $ 2.89 |
1.10 - 1.90 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 1.10 |
Range of Exercise Prices, Upper Limit | $ 1.90 |
Number of Shares, Outstanding Options | shares | 91,432 |
Weighted Average Remaining Contractual Term (in Years), Outstanding Options | 2 years 7 months 21 days |
Weighted Average Exercise Price, Outstanding Options | $ 1.45 |
Number of Shares, Exercisable options | shares | 91,432 |
Weighted Average Exercise Price, Exercisable Options | $ 1.45 |
2.00 - 3.90 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 2 |
Range of Exercise Prices, Upper Limit | $ 3.90 |
Number of Shares, Outstanding Options | shares | 1,661,502 |
Weighted Average Remaining Contractual Term (in Years), Outstanding Options | 6 years 9 months 25 days |
Weighted Average Exercise Price, Outstanding Options | $ 2.83 |
Number of Shares, Exercisable options | shares | 1,273,112 |
Weighted Average Exercise Price, Exercisable Options | $ 2.66 |
4.30 - 7.10 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 4.30 |
Range of Exercise Prices, Upper Limit | $ 7.10 |
Number of Shares, Outstanding Options | shares | 1,922,160 |
Weighted Average Remaining Contractual Term (in Years), Outstanding Options | 8 years 11 months 12 days |
Weighted Average Exercise Price, Outstanding Options | $ 6 |
Number of Shares, Exercisable options | shares | 284,236 |
Weighted Average Exercise Price, Exercisable Options | $ 4.38 |
8.61 - 9.90 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit | 8.61 |
Range of Exercise Prices, Upper Limit | $ 9.90 |
Number of Shares, Outstanding Options | shares | 58,450 |
Weighted Average Remaining Contractual Term (in Years), Outstanding Options | 9 years 8 months 12 days |
Weighted Average Exercise Price, Outstanding Options | $ 9.20 |
Number of Shares, Exercisable options | shares | 137 |
Weighted Average Exercise Price, Exercisable Options | $ 9.9 |
Convertible Preferred Stock a59
Convertible Preferred Stock and Shareholder's Equity and Share-based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 1,673 | $ 939 | $ 792 |
Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 47 | 31 | 19 |
Research and Development | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 973 | 489 | 373 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 197 | 95 | 71 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 456 | $ 324 | $ 329 |
Convertible Preferred Stock a60
Convertible Preferred Stock and Shareholder's Equity and Share-based Compensation - Schedule of Fair Value Assumptions for Option Grants (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.89% | 1.46% | 1.51% |
Risk-free interest rate, maximum | 2.40% | 2.43% | 2.32% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Volatility, minimum | 26.00% | 30.00% | 41.00% |
Volatility, maximum | 30.00% | 34.00% | 42.00% |
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 | 5 years 3 months 19 days |
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term | 10 years | 10 years | 10 years |
Income Taxes - Summary of Domes
Income Taxes - Summary of Domestic and Foreign Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 4,195 | $ (992) | $ (10,128) |
Foreign | (9,729) | 715 | 373 |
Total | $ (5,534) | $ (277) | $ (9,755) |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ (63) | $ 63 | |
State | $ 1 | 1 | 9 |
Foreign | (118) | 230 | 128 |
Total current: | (117) | 168 | 200 |
Deferred: | |||
Total provision for (benefit from) income taxes | $ (117) | $ 168 | $ 200 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal tax at statutory rate | 34.00% | 34.00% | 34.00% |
Foreign taxes | (58.00%) | 5.00% | |
State taxes | (2.00%) | 316.00% | (71.00%) |
Change in warrant valuation | (6.00%) | (66.00%) | (37.00%) |
Stock-based compensation | (5.00%) | (80.00%) | (2.00%) |
Research and development credit | 14.00% | 343.00% | (11.00%) |
Changes in reserves for uncertain tax positions | 3.00% | (731.00%) | |
Change in valuation allowance | 283.00% | 114.00% | 85.00% |
2017 tax cut and jobs act impact | (283.00%) | ||
Tax effect upon adoption of ASU 2016-09 | 19.00% | ||
Other | 3.00% | 4.00% | |
Total | 2.00% | (61.00%) | (2.00%) |
Income Taxes - Summary of Signi
Income Taxes - Summary of Significant Components of Company's Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 31,286 | $ 49,124 | |
Tax credit carryforwards | 9,439 | 7,025 | |
Accruals recognized in different periods | 1,115 | 1,389 | |
Fixed assets depreciation | 137 | 223 | |
Stock-based compensation | 113 | 69 | |
Other | 22 | 627 | |
Gross deferred tax assets: | 42,112 | 58,457 | |
Deferred tax liabilities: | |||
Other | (81) | ||
Subtotal | 42,031 | 58,457 | |
Valuation allowance | $ (42,031) | $ (58,457) | $ (61,700) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||
Federal tax at statutory rate | 34.00% | 34.00% | 34.00% | |
Amount of deferred tax assets decreased | $ 15,700,000 | |||
Provisional amount recorded related to the remeasurement | 0 | |||
Deferred tax assets, valuation allowance | 42,031,000 | $ 58,457,000 | $ 61,700,000 | |
Deferred tax assets, change in the valuation allowance | (16,500,000) | (3,200,000) | (18,100,000) | |
Federal net operating loss carryforwards | 34,900,000 | |||
State net operating loss carryforwards | 24,100,000 | |||
Federal research and development credits | 1,800,000 | |||
Interest or penalty accruals | 0 | $ 0 | $ 0 | |
Federal | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 176,600,000 | |||
NOL carryforwards begin to expire | 2,025 | |||
Federal | Research and Development Tax Credit Carryforwards | ||||
Income Tax [Line Items] | ||||
Tax credit carryforwards | $ 6,900,000 | |||
Tax credit carryforwards begin to expire | 2,026 | |||
State | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 102,400,000 | |||
NOL carryforwards begin to expire | 2,018 | |||
State | Research and Development Tax Credit Carryforwards | ||||
Income Tax [Line Items] | ||||
Tax credit carryforwards | $ 7,900,000 | |||
Tax credit carryforwards begin to expire, description | indefinitely | |||
Scenario Forecast | ||||
Income Tax [Line Items] | ||||
Federal tax at statutory rate | 21.00% | |||
Maximum | ||||
Income Tax [Line Items] | ||||
Federal tax at statutory rate | 35.00% | |||
Minimum | ||||
Income Tax [Line Items] | ||||
Change in ownership percentage | 50.00% |
Income Taxes - Summary of Rec66
Income Taxes - Summary of Reconciliation of Beginning and Ending Balances of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized benefits - beginning of period | $ 4,323 | $ 4,100 | |
Increases in balances related to tax positions taken during a prior period | 2,567 | ||
Increases in balances related to tax positions taken during the current period | 1,276 | 224 | $ 4,100 |
Decreases in balances related to tax positions taken during a prior period | (1,119) | (1) | |
Unrecognized benefits - end of period | $ 7,047 | $ 4,323 | $ 4,100 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Computation of Basic and Diluted Net Loss Per Share Attributable to Common Shareholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (5,417) | $ (445) | $ (9,955) |
Weighted-average common shares outstanding | 9,204,384 | 4,240,461 | 1,498,233 |
Weighted-average shares outstanding | 9,204,384 | 4,240,461 | 1,498,233 |
Basic net loss per share | $ (0.59) | $ (0.10) | $ (6.64) |
Net Loss Per Share - Summary 68
Net Loss Per Share - Summary of Potentially Dilutive Securities Outstanding Excluded from Computation of Diluted Weighted-average Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential dilutive securities outstanding excluded from computation of diluted weighted-average shares outstanding | 4,317,692 | 24,225,457 | 24,584,077 |
Stock 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 | 3,733,544 | 2,831,850 | 4,264,705 |
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 | 19,833,843 | 18,952,258 | |
Common 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 | 1,559,764 | 1,367,114 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenue from Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 103,371 | $ 86,675 | $ 80,807 |
Data Center | |||
Segment Reporting Information [Line Items] | |||
Revenue | 64,781 | 64,024 | 72,549 |
Enterprise Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Revenue | 35,208 | 22,476 | $ 8,258 |
Access | |||
Segment Reporting Information [Line Items] | |||
Revenue | 3,132 | $ 175 | |
Automotive | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 250 |
Segment Reporting - Schedule 71
Segment Reporting - Schedule of Geographical Distribution of Revenue (Details) - Revenue - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue | 100.00% | 100.00% | 100.00% |
Malaysia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue | 61.00% | 69.00% | 74.00% |
China | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue | 30.00% | 26.00% | 18.00% |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue | 1.00% | 1.00% | 5.00% |
Other | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue | 8.00% | 4.00% | 3.00% |
Concentrations - Additional Inf
Concentrations - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Risks And Uncertainties [Abstract] | |||
Amounts held on deposit at financial institutions in excess of FDIC insured limits | $ 0.9 | $ 28 | $ 34.1 |
Concentrations - Schedule of Cu
Concentrations - Schedule of Customer Concentration as Percentage of Accounts Receivable and Total Revenue (Details) - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 49.00% | 62.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 34.00% | 23.00% | |
Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 60.00% | 68.00% | 78.00% |
Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 28.00% | 21.00% | 13.00% |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
401 (k) | |
Defined Contribution Plan Disclosure [Line Items] | |
Company contribution | $ 0 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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 | |
Research and development expenses, inventory and cost of revenue | 8,000 | 4,200 |
Due to related parties | $ 3,400 | 3,400 |
Significant Stockholder | IP license | ||
Related Party Transaction [Line Items] | ||
Intangible assets, gross | 5,400 | |
Due to related parties | $ 3,300 |