Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CASA | |
Entity Registrant Name | Casa Systems, Inc. | |
Entity Central Index Key | 0001333835 | |
Current Fiscal Year End Date | --12-31 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-38324 | |
Entity Tax Identification Number | 75-3108867 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 100 Old River Road | |
Entity Address, City or Town | Andover | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01810 | |
City Area Code | 978 | |
Local Phone Number | 688-6706 | |
Entity Common Stock, Shares Outstanding | 99,108,998 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Current assets: | |||
Cash and cash equivalents | $ 47,925 | $ 126,312 | |
Accounts receivable, net of provision for doubtful accounts of $152 and $636 as of September 30, 2023 and December 31, 2022, respectively | [1] | 37,360 | 74,484 |
Inventory | 77,206 | 81,795 | |
Prepaid expenses and other current assets | 4,171 | 2,836 | |
Prepaid income taxes | 3,022 | 6,352 | |
Total current assets | 169,684 | 291,779 | |
Property and equipment, net | 6,427 | 19,518 | |
Right-of-use assets | 3,674 | 5,199 | |
Goodwill | 50,177 | 50,177 | |
Intangible assets, net | 21,316 | 25,759 | |
Noncurrent assets held for sale | 6,146 | ||
Other assets | 5,092 | 5,862 | |
Total assets | 262,516 | 398,294 | |
Current liabilities: | |||
Accounts payable | 21,891 | 29,283 | |
Accrued expenses and other current liabilities | 30,629 | 31,825 | |
Warrant liability | 11,218 | ||
Accrued income taxes | 1,011 | 4,298 | |
Deferred revenue | [2] | 41,859 | 31,305 |
Lease liability | 1,446 | 2,040 | |
Current portion of long-term debt, net of unamortized debt issuance discounts | 6,378 | 225,161 | |
Total current liabilities | 114,432 | 323,912 | |
Accrued income taxes, net of current portion | 6,509 | 6,640 | |
Deferred tax liabilities | 1,488 | 1,490 | |
Deferred revenue, net of current portion | 4,361 | 5,529 | |
Long-term debt, net of current portion and unamortized debt issuance costs | 175,104 | ||
Warrant liability, net of current portion | 4,118 | ||
Lease liability, net of current portion | 2,416 | 3,416 | |
Other liabilities, net of current portion | 7,513 | 7,906 | |
Total liabilities | 315,941 | 348,893 | |
Commitments and contingencies (Note 18) | |||
Total stockholders' (deficit) equity | |||
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued and outstanding as of September 30, 2023 and December 31, 2022 | |||
Common stock, $0.001 par value; 500,000 shares authorized; 102,321 and 98,262 shares issued as of September 30, 2023 and December 31, 2022, respectively; 98,724 and 94,665 shares outstanding as of September 30, 2023 and December 31, 2022, respectively | 102 | 98 | |
Treasury stock, at cost; 3,597 shares as of September 30, 2023 and December 31, 2022 | (14,837) | (14,837) | |
Additional paid-in capital | 251,140 | 244,675 | |
Accumulated other comprehensive loss | (3,188) | (2,305) | |
Accumulated deficit | (286,642) | (178,230) | |
Total stockholders' (deficit) equity | (53,425) | 49,401 | |
Total liabilities and stockholders' (deficit) equity | $ 262,516 | $ 398,294 | |
[1] Includes accounts receivable due from a related party of $ 1,289 and $ 6,044 at September 30, 2023 and December 31, 2022, respectively (see Note 16) Includes deferred revenue associated with a related party of $ 27,200 and $ 18,094 at September 30, 2023 and December 31, 2022, respectively (see Note 16) |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Provision for doubtful accounts | $ 152 | $ 636 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 102,321,000 | 98,262,000 |
Common stock, shares outstanding | 98,724,000 | 94,665,000 |
Treasury stock, shares | 3,597,000 | 3,597,000 |
Deferred revenue associated with related party | $ 27,200 | $ 18,094 |
Related Party | ||
Accounts receivable due from related party | $ 1,289 | $ 6,044 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue: | |||||
Total revenue | [1],[2] | $ 62,089 | $ 66,899 | $ 165,389 | $ 202,134 |
Cost of revenue: | |||||
Total cost of revenue | 36,198 | 52,523 | 97,527 | 134,444 | |
Gross profit | 25,891 | 14,376 | 67,862 | 67,690 | |
Operating expenses: | |||||
Research and development | 17,121 | 22,059 | 57,947 | 67,545 | |
Selling, general and administrative | 27,174 | 22,442 | 72,616 | 66,741 | |
Total operating expenses | 44,295 | 44,501 | 130,563 | 134,286 | |
Loss from operations | (18,404) | (30,125) | (62,701) | (66,596) | |
Other income (expense): | |||||
Interest income | 612 | 810 | 2,431 | 1,118 | |
Interest expense | (10,712) | (4,762) | (21,896) | (12,270) | |
Loss on extinguishment of debt | [3] | (28,822) | |||
Revaluation of warrant liability | 3,795 | 3,795 | |||
(Loss) gain on foreign currency, net | (160) | 1,546 | 228 | 2,089 | |
Other income, net | 47 | 106 | 657 | 285 | |
Total other expense, net | (6,418) | (2,300) | (43,607) | (8,778) | |
Loss before provision for (benefit from) income taxes | (24,822) | (32,425) | (106,308) | (75,374) | |
Provision for (benefit from) income taxes | 796 | (1,261) | 2,104 | 5,071 | |
Net loss | (25,618) | (31,164) | (108,412) | (80,445) | |
Other comprehensive loss - foreign currency translation adjustment, net of tax | (251) | (2,737) | (883) | (4,683) | |
Comprehensive loss | $ (25,869) | $ (33,901) | $ (109,295) | $ (85,128) | |
Net loss per share attributable to common stockholders: | |||||
Basic | $ (0.26) | $ (0.33) | $ (1.12) | $ (0.89) | |
Diluted | $ (0.26) | $ (0.33) | $ (1.12) | $ (0.89) | |
Weighted-average shares used to compute net loss per share attributable to common stockholders: | |||||
Basic | 97,488 | 94,512 | 96,705 | 90,569 | |
Diluted | 97,488 | 94,512 | 96,705 | 90,569 | |
Product | |||||
Revenue: | |||||
Total revenue | $ 49,736 | $ 55,435 | $ 130,972 | $ 167,121 | |
Cost of revenue: | |||||
Total cost of revenue | 35,131 | 38,421 | 94,155 | 117,531 | |
Service | |||||
Revenue: | |||||
Total revenue | 12,353 | 11,464 | 34,417 | 35,013 | |
Cost of revenue: | |||||
Total cost of revenue | $ 1,067 | 1,195 | $ 3,372 | 4,006 | |
Warranty Settlement Provision | |||||
Cost of revenue: | |||||
Total cost of revenue | $ 12,907 | $ 12,907 | |||
[1] Includes revenue of $ 16,037 and $ 23,321 during the three and nine months ended September 30, 2023 and $ 3,041 and $ 13,591 during the three and nine months ended September 30, 2022 , during which a related party relationship existed (see Note 16) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. Loss related to Term Loan B refinancing and issuance of warrants during the nine months ended September 30, 2023 (see Note 10) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Revenue | [1],[2] | $ 62,089 | $ 66,899 | $ 165,389 | $ 202,134 |
Related Party | |||||
Revenue | $ 16,037 | $ 3,041 | $ 23,321 | $ 13,591 | |
[1] Includes revenue of $ 16,037 and $ 23,321 during the three and nine months ended September 30, 2023 and $ 3,041 and $ 13,591 during the three and nine months ended September 30, 2022 , during which a related party relationship existed (see Note 16) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balances at Dec. 31, 2021 | $ 81,919 | $ 88 | $ 193,654 | $ 878 | $ (99,056) | |
Balances, shares at Dec. 31, 2021 | 87,815 | |||||
Balance Treasury, shares at Dec. 31, 2021 | 3,393 | |||||
Balance Treasury at Dec. 31, 2021 | $ (13,645) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (1,772) | $ 1 | (1,773) | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 1,074 | |||||
Foreign currency translation adjustment | (4,653) | (4,683) | 30 | |||
Repurchases of treasury shares | (1,192) | $ (1,192) | ||||
Repurchases of treasury shares, shares | 204 | |||||
Sale of common stock, net of issuance costs, Shares | 9,323 | |||||
Sale of common stock, net of issuance costs | 39,370 | $ 9 | 39,361 | |||
Stock-based compensation | 9,337 | 9,337 | ||||
Net loss | (80,445) | (80,445) | ||||
Balances at Sep. 30, 2022 | 42,564 | $ 98 | 240,579 | (3,805) | (179,471) | |
Balances, shares at Sep. 30, 2022 | 98,212 | |||||
Balance Treasury at Sep. 30, 2022 | $ (14,837) | |||||
Balance Treasury, shares at Sep. 30, 2022 | 3,597 | |||||
Balances at Jun. 30, 2022 | 73,162 | $ 98 | 237,306 | (1,068) | (148,337) | |
Balances, shares at Jun. 30, 2022 | 98,009 | |||||
Balance Treasury, shares at Jun. 30, 2022 | 3,597 | |||||
Balance Treasury at Jun. 30, 2022 | $ (14,837) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (398) | (398) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 203 | |||||
Foreign currency translation adjustment | (2,707) | (2,737) | 30 | |||
Stock-based compensation | 3,671 | 3,671 | ||||
Net loss | (31,164) | (31,164) | ||||
Balances at Sep. 30, 2022 | 42,564 | $ 98 | 240,579 | (3,805) | (179,471) | |
Balances, shares at Sep. 30, 2022 | 98,212 | |||||
Balance Treasury at Sep. 30, 2022 | $ (14,837) | |||||
Balance Treasury, shares at Sep. 30, 2022 | 3,597 | |||||
Balances at Dec. 31, 2022 | $ 49,401 | $ 98 | 244,675 | (2,305) | (178,230) | |
Balances, shares at Dec. 31, 2022 | 98,262 | |||||
Balance Treasury, shares at Dec. 31, 2022 | 3,597 | 3,597 | ||||
Balance Treasury at Dec. 31, 2022 | $ (14,837) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | $ (3,207) | $ 3 | (3,210) | |||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 2,767 | |||||
Common stock issued for exercise of warrants | 1,174 | $ 1 | 1,173 | |||
Common stock issued for exercise of warrants, shares | 1,292 | |||||
Foreign currency translation adjustment | (883) | (883) | ||||
Stock-based compensation | 8,502 | 8,502 | ||||
Net loss | (108,412) | (108,412) | ||||
Balances at Sep. 30, 2023 | $ (53,425) | $ 102 | 251,140 | (3,188) | (286,642) | |
Balances, shares at Sep. 30, 2023 | 102,321 | |||||
Balance Treasury at Sep. 30, 2023 | $ (14,837) | |||||
Balance Treasury, shares at Sep. 30, 2023 | 3,597 | 3,597 | ||||
Balances at Jun. 30, 2023 | $ (31,088) | $ 101 | 247,609 | (2,937) | (261,024) | |
Balances, shares at Jun. 30, 2023 | 100,610 | |||||
Balance Treasury, shares at Jun. 30, 2023 | 3,597 | |||||
Balance Treasury at Jun. 30, 2023 | $ (14,837) | |||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes | (215) | (215) | ||||
Exercise of stock options and common stock issued upon vesting of equity awards, net of shares withheld for employee taxes, shares | 419 | |||||
Common stock issued for exercise of warrants | 1,174 | $ 1 | 1,173 | |||
Common stock issued for exercise of warrants, shares | 1,292 | |||||
Foreign currency translation adjustment | (251) | (251) | ||||
Stock-based compensation | 2,573 | 2,573 | ||||
Net loss | (25,618) | (25,618) | ||||
Balances at Sep. 30, 2023 | $ (53,425) | $ 102 | $ 251,140 | $ (3,188) | $ (286,642) | |
Balances, shares at Sep. 30, 2023 | 102,321 | |||||
Balance Treasury at Sep. 30, 2023 | $ (14,837) | |||||
Balance Treasury, shares at Sep. 30, 2023 | 3,597 | 3,597 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Operating activities: | |||
Net loss | $ (108,412) | $ (80,445) | |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on assets held for sale | 4,718 | ||
Revaluation of warrant liability1 | (3,795) | ||
Amortization of debt discount recorded to interest expense | 5,905 | 805 | |
Depreciation and amortization | 8,496 | 10,336 | |
Stock-based compensation | 8,502 | 9,178 | |
Deferred income taxes | (2) | (2,435) | |
Change in provision for doubtful accounts | (484) | 178 | |
Change in provision for excess and obsolete inventory | 10,792 | 5,934 | |
Gain on disposal of assets | 46 | 7 | |
Non-cash operating lease expense | 1,682 | 1,751 | |
Loss on extinguishment of debt | [1] | 28,822 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 36,972 | 35,573 | |
Inventory | (6,267) | (3,454) | |
Prepaid expenses and other assets | (1,967) | 1,833 | |
Prepaid income taxes | 3,314 | 21,013 | |
Accounts payable | (7,417) | (14,373) | |
Accrued expenses and other current liabilities | (3,931) | 7,302 | |
Operating lease liabilities | (1,564) | (1,583) | |
Accrued income taxes | (3,414) | 2,053 | |
Deferred revenue | 9,407 | 17,990 | |
Net cash (used in) provided by operating activities | (18,597) | 11,663 | |
Investing activities: | |||
Purchases of property and equipment | (1,827) | (2,611) | |
Purchases of software licenses | (92) | (714) | |
Net cash used in investing activities | (1,919) | (3,325) | |
Financing activities: | |||
Principal repayments of debt | (42,474) | (2,250) | |
Payment for debt issuance costs | (13,361) | ||
Proceeds from exercise of stock options | 2 | 304 | |
Employee taxes paid related to net share settlement of equity awards | (3,210) | (2,074) | |
Proceeds from sale of common stock, net of issuance costs | 39,370 | ||
Payments of dividends and equitable adjustments | (1) | ||
Repurchases of common stock | (1,192) | ||
Net cash (used in) provided by financing activities | (59,043) | 34,157 | |
Effect of exchange rate changes on cash and cash equivalents | (216) | (3,697) | |
Net (decrease) increase in cash, cash equivalents and restricted cash | (79,775) | 38,798 | |
Cash, cash equivalents and restricted cash at beginning of period | 129,425 | 157,804 | |
Cash, cash equivalents and restricted cash at end of period | [2] | 49,650 | 196,602 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 15,084 | 11,419 | |
Cash paid for income taxes | 5,098 | 7,845 | |
Supplemental disclosures of non-cash operating, investing and financing activities: | |||
Purchases of property and equipment included in accounts payable | $ 126 | $ 313 | |
[1] Loss related to Term Loan B refinancing and issuance of warrants during the nine months ended September 30, 2023 (see Note 10) See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these unaudited condensed consolidated statements of cash flows. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Casa Systems, Inc. (the “Company”) was incorporated under the laws of the State of Delaware on February 28, 2003. The Company is a global communications technology company headquartered in Andover, Massachusetts and has wholly- owned subsidiaries in Australia, Canada, China, France, Germany, Hong Kong, Ireland, the Netherlands, Spain, the United Kingdom, the United States and New Zealand. The Company offers physical, virtual and cloud-native 4G and 5G infrastructure and customer premise networking equipment solutions to help communications service providers ("CSPs"), transform and expand their public and private high-speed data and multi-service communications networks so they can meet the growing demand for bandwidth and new services. Through the development of cloud, access devices and cable products, the Company’s core and edge convergence technology enables CSPs and enterprises to cost-effectively and dynamically increase network speed, add bandwidth capacity and new services, reduce network complexity and reduce operating and capital expenditures regardless of access technology. As technology has changed, the Company is now viewing offerings across three major product lines, cloud, access devices (which includes the Company's 4G/5G cell radio products) and cable, as opposed to its historical view of cable, wireless and fixed telco. The Company's revenue disclosures have been updated accordingly. The Company is subject to a number of risks similar to other companies of comparable size and other companies selling and providing services to the CSP industry. These risks include, but are not limited to, the level of capital spending by CSPs, lengthy sales cycles, dependence on the development of new products and services, unfavorable economic and market conditions, competition from larger and more established companies, limited management resources, dependence on a limited number of contract manufacturers and suppliers, the rapidly changing nature of the technology used by CSPs, and reliance on resellers and sales agents. Failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer or supplier requirements, changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s operating results, financial condition and cash flows. Prior to December 31, 2022, the Company was an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). The JOBS Act provided that an emerging growth company can take advantage of the extended transition period afforded by the JOBS Act for the implementation of new or revised accounting standards. The Company elected not to “opt out” of such extended transition period, which means that when a standard was issued or revised and it had different application dates for public or private companies, the Company was required to adopt the new or revised standard at or prior to the time private companies were required to adopt the new or revised standard. As of December 31, 2022, the Company no longer qualified as an emerging growth company and is now required to adopt new or revised standards at the same time as other public companies. The accompanying condensed consolidated balance sheet as of September 30, 2023, the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022, and the condensed consolidated statements of stockholders’ (deficit) equity for the three and nine months ended September 30, 2023 and 2022 are unaudited. The financial data and other information disclosed in these notes related to the three and nine months ended September 30, 2023 and 2022 are also unaudited. The accompanying condensed consolidated balance sheet as of December 31, 2022 was derived from the Company’s audited consolidated financial statements for the year ended December 31, 2022, which was included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 15, 2023 (the “Annual Report on Form 10-K”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K. There have been no changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K that would have a material impact on the Company’s condensed consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and, in the opinion of management, include all adjustments consisting of only normal recurring adjustments, necessary for a fair statement of the financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results of operations and cash flows to be anticipated for the full year ending December 31, 2023 or any future period. The accompanying condensed consolidated financial statements include the accounts and results of operations of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Going Concern In accordance with the accounting guidance related to the presentation of financial statements, when preparing financial statements for each annual and interim reporting period, management evaluates whether there are conditions or events that, when considered in the aggregate, raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. In making its assessment, management considered the Company’s current financial condition and liquidity sources including current funds available, forecasted future cash flows, conditional and unconditional obligations due over the next twelve months as well as other factors including the provisions of the Company’s senior secured debt facility, and the temporary difficult market and customer demand dynamics for the Company’s Cable and Access Device products now being experienced. As described further in Note 10, Debt , the Company has debt outstanding that is expected to mature on December 20, 2027, unless earlier repaid or accelerated (the “Superpriority Credit Facility”). The Superpriority Credit Facility contains a liquidity covenant that is tested on a monthly basis, and is further tested on November 15, 2023 and December 10, 2023. The amount of liquidity to be maintained for the monthly minimum liquidity covenant increases monthly starting in Q1 2024. Failure to comply with such covenant would result in a non-monetary event of default under the Superpriority Credit Facility and, as a result, would contractually afford the lenders thereunder the right to declare the Superpriority Term Loans immediately due and payable. The Company was in compliance with monthly minimum liquidity covenant at September 30, 2023 and October 31, 2023, and as of the date of filing of this Form 10-Q. The Company is also taking actions to try to ensure future compliance including (i) acceleration of collections of receivables, (ii) deferral of expenditures, (iii) cost reductions to align the Company’s cost structure with current revenue levels, (iv) sales of excess inventory and (v) sales of non-core assets, among other actions. The Company believes these actions will produce positive results and improve the Company’s liquidity position. However, due to the inherent uncertainty regarding the Company's ability to meet the liquidity covenant over the next twelve months from the filing of this Quarterly Report on Form 10-Q, management concluded that substantial doubt exists with respect to the Company's ability to continue as a going concern within one year after the date that these condensed consolidated financial statements are issued. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the ordinary course of business. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these condensed consolidated financial statements include revenue recognition, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, the recoverability of net deferred tax assets, valuations of uncertain tax positions, warranty allowances, the valuation of equity instruments, warrants and embedded derivatives, and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances existing at the time such estimates are made. The COVID-19 pandemic disrupted the Company's global supply chain. Throughout 2022 and 2021, the Company experienced shipping bottlenecks and shortages of supply that resulted in its inability to fulfill certain customer orders within normal lead times. This adversely impacted the Company's revenue and operating results for the years ended December 31, 2022 and 2021. The Company also experienced, in some cases, significant increases in shipping costs. While the impact to the Company has partially subsided during 2023, the Company continues to work with its supply chain, contract manufacturers, logistics partners and customers to minimize the extent of such impacts and will continue to actively monitor supply chain developments. The Company cannot predict if or when such effects will recur or worsen, and in such a case, could prevent the Company from being able to fulfill its customers' orders in a timely manner or at all, which could lead to one or more of its customers canceling their orders. The Company would be neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. In addition, the regions in which the Company operates have experienced a significant increase in inflation, which has adversely impacted the cost to manufacture the Company's products with limited ability to pass such increases on to its customers under previously established fixed price agreements. Inflation has further resulted in increased operating costs and interest rate increases, which will result in increased debt service costs. If interest rates continue to rise, the Company anticipates further adverse effects from inflation and increased interest rates. At this time, the Company is neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. The Company will continue to monitor its business very closely for any effects of COVID-19, inflation and interest rate increases for as long as necessary. Subsequent Event Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no additional material recognized or unrecognized subsequent events requiring disclosure in these condensed consolidated financial statements. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of September 30, 2023 and December 31, 2022, the Company’s cash and cash equivalents consisted of savings accounts and investments in money market mutual funds. Restricted cash as of September 30, 2023 consisted of cash of $ 1,000 pledged as collateral for a stand-by letter of credit required to support a contractual obligation and cash of $ 725 pledged as collateral in connection with two letters of credit to support contractual obligations, as further discussed in Note 17, Leases . As of December 31, 2022 , restricted cash consisted of a certificate of deposit of $ 1,013 , pledged as collateral for a stand-by letter of credit required to support a contractual obligation, as well as cash of $ 2,100 , pledged as collateral in connection with two letters of credit to support contractual obligations, as further discussed in Note 17, Leases . The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: September 30, 2023 September 30, 2022 Cash and cash equivalents $ 47,925 $ 193,494 Restricted cash included in other assets 1,725 3,108 $ 49,650 $ 196,602 Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for customer contracts with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company may, in limited circumstances, grant payment terms longer than one year. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. Accounts receivable as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Current portion of accounts receivable, net: Accounts receivable, net $ 37,360 $ 74,407 Accounts receivable, extended payment terms — 77 $ 37,360 $ 74,484 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customer, customer payment history, and other specific customer and transaction information. The Company also provides an overall expected credit loss amount, based on historical loss rates, in accordance with ASC 326, Credit Losses . The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. As of September 30, 2023 and December 31, 2022 , the Company concluded that all amounts due under extended payment terms were collectible and recorded no reserve for credit losses. During the nine months ended September 30, 2023 and 2022 , the Company did no t provide a reserve for credit losses and did no t write off any uncollectible receivables due under extended payment terms. The Company has entered into customer-sponsored programs administered by unrelated financial institutions that allow for the sales (factor) of certain accounts receivable at discounted rates to the financial institutions, without recourse. Transactions under this agreement were accounted for as a sale of accounts receivable and the related accounts receivable were removed from the Company's condensed consolidated balance sheet at the time of the sales transaction. Under this agreement, the Company sold $ 10,427 and $ 31,200 of accounts receivables during the three and nine months ended September 30, 2023 , respectively. Selling, general and administrative expenses include factoring costs associated with this program of $ 170 and $ 368 during the three and nine months ended September 30, 2023 , respectively. Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts and money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company grants credit to customers in the ordinary course of business. Credit evaluations are performed on an ongoing basis to reduce credit risk, and no collateral is required from the Company’s customers. An allowance for uncollectible accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and credit evaluation. Due to these factors, no additional losses beyond the amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Revenue Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Customer A 26 % * 14 % * Customer B 16 % 17 % 10 % 13 % Accounts Receivable, Net As of As of September 30, 2023 December 31, 2022 Customer B 10 % * Customer C 15 % * Customer D * 12 % Customer E * 11 % * Less than 10% of total Certain of the components and subassemblies included in the Company’s products are obtained and manufactured from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those single or limited source suppliers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. Warrant Liability On June 15, 2023, in connection with the Superpriority Term Loans, as discussed in Note 10, Debt , the Company issued certain penny warrants (the “Warrants”), approximately half of which were immediately vested. The Company’s liability for the Warrants is based on a valuation model utilizing observable inputs from active markets, as further described in Note 7, Fair Value Measurements . The fair value of the warrant liability is classified within Level 3 of the fair value hierarchy as it is based on significant inputs not observable in the market. The Company establishes the fair value for the Warrants using a Monte Carlo simulation model. Due to the variable number of shares for which the Warrants were exercisable, they failed to qualify for equity classification under the indexation guidance in Accounting Standards Codification 815 ("ASC 815"). Therefore, the Warrants are classified as liabilities at fair value on the condensed consolidated balance sheet. Each reporting period, the Warrants are recorded at fair value, with changes in fair value recognized in the Company’s consolidated statement of operations within revaluation of warrant liability. Embedded Derivatives In connection with the Superpriority Credit Agreement, as discussed in Note 10, Debt , the Company identified certain embedded features requiring bifurcation as derivatives under ASC 815. These embedded derivatives are required to be bifurcated from the debt host contract at fair value with subsequent changes in fair value recognized in earnings at each balance sheet date (see Note 8, Derivative Financial Instruments ). The Superpriority Term Loans, as defined and discussed in Note 10, Debt , include three embedded features: contingent interest upon an uncured event of default; mandatory prepayment upon certain excess cash flow; and mandatory prepayment upon an uncured event of default. Pursuant to ASC 815, these features have been identified as embedded derivative financial instruments. These embedded derivatives are required to be accounted for as derivatives and bifurcated from the host debt contract, resulting in remeasurement at each balance sheet date, with the change in fair value recognized in the Company’s condensed consolidated statement of operations. The fair value of the embedded derivatives is classified within Level 3 of the fair value hierarchy as it is based on significant inputs not observable in the market. The fair value of the embedded derivatives is based on a valuation model utilizing a with and without analysis of the embedded features within the debt facility. The Company runs a Monte Carlo simulation model with the embedded derivatives, and then runs a separate Monte Carlo simulation model for the overall debt facility, without the embedded derivative features. The difference between these two Monte Carlo simulation models is used to obtain the value of the embedded features. Impact of Recently Adopted or Issued Accounting Standards There have been no recently adopted or issued accounting standards that are applicable to the Company since December 31, 2022. Other Other than the disclosures above, there have been no changes to the significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies, to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets Goodwill There have been no changes to the $ 50,177 carrying amount of goodwill during the three and nine months ended September 30, 2023 and 2022. Intangible Assets Intangible assets, net consisted of intangible assets resulting from the acquisition of NetComm and purchased software to be used in the Company’s products. Intangible assets, net consisted of the following at September 30, 2023 and December 31, 2022, respectively: Cost Accumulated Net Balance Developed Technology $ 25,000 $ ( 15,181 ) $ 9,819 Customer Relationships 18,000 ( 7,650 ) 10,350 Trade Name 1,000 ( 1,000 ) — Purchased Software 2,638 ( 1,491 ) 1,147 Totals as of September 30, 2023 $ 46,638 $ ( 25,322 ) $ 21,316 Cost Accumulated Net Balance Developed Technology $ 25,000 $ ( 12,502 ) $ 12,498 Customer Relationships 18,000 ( 6,300 ) 11,700 Trade Name 1,000 ( 1,000 ) — Purchased Software 2,545 ( 984 ) 1,561 Totals as of December 31, 2022 $ 46,545 $ ( 20,786 ) $ 25,759 As of September 30, 2023, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, Remainder of 2023 $ 1,486 2024 5,929 2025 5,786 2026 3,615 2027 1,800 Thereafter 2,700 $ 21,316 A summary of amortization expense recorded during the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product cost of revenue $ 893 $ 893 $ 2,679 $ 2,679 Research and development 174 149 507 393 Selling, general and administrative 450 450 1,350 1,520 Totals $ 1,517 $ 1,492 $ 4,536 $ 4,592 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | 4. Inventory Inventory as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Raw materials $ 31,745 $ 47,581 Finished goods: Manufactured finished goods 45,245 32,863 Deferred inventory costs 216 1,351 $ 77,206 $ 81,795 The decrease in inventory is due to $ 10,792 of additional reserves recognized during the nine months ended September 30, 2023 primarily due to certain of the Company's products and components that management has designated to be discontinued or that have limited future demand and as a result were adjusted to their estimated net realizable values, as well as certain component inventory received during 2023 which the Company believes now has limited utility due to recent technological changes in the market as well as supplier delay and delivery issues, and the Company has fully reserved for this component inventory at September 30, 2023 . This was partially offset by additional purchases of inventory during the year. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Computers and purchased software $ 23,912 $ 25,572 Leasehold improvements 3,790 4,226 Furniture and fixtures 2,284 2,471 Machinery and equipment 24,161 34,502 Land — 3,091 Building — 4,765 Building improvements — 7,374 Trial systems at customers’ sites 1,636 2,582 55,783 84,583 Less: Accumulated depreciation and amortization ( 49,356 ) ( 65,065 ) $ 6,427 $ 19,518 Depreciation and amortization expense on property and equipment totaled $ 1,240 and $ 1,704 for the three months ended September 30, 2023 and 2022 , respectively, and $ 3,960 and $ 5,744 , for the nine months ended September 30, 2023 and 2022, respectively. Sale and Leaseback of Andover, MA Headquarters On July 27, 2023, the Company’s Board of Directors approved a plan to sell and leaseback the Company's headquarters in Andover, MA. On August 16, 2023, the Company entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with DND Homes, LLC (the “Buyer”), for the sale of the Company's headquarters, inclusive of land, building and related improvements, at 100 Old River Road, Andover, Massachusetts (the "Property") for a purchase price of $ 6,400 . The Purchase Agreement was subject to the satisfactory completion of due diligence by the Buyer, during which time the Buyer retained the right to cancel the Purchase Agreement. Upon execution of the Purchase Agreement, the Buyer paid a down payment of $ 300 into escrow, which was held in accordance with the Purchase Agreement until the closing, which was completed on October 24, 2023. In accordance with the terms of the Purchase Agreement, upon the closing of the sale of the Property, the Company entered into a Commercial Lease (the “Lease”) with the Buyer, pursuant to which the Property will be leased back to the Company. The Lease has an initial term of 18 months commencing from the closing. The annual fixed rent will be $ 610 . The Lease is a triple net lease, pursuant to which all costs, expenses, and obligations relating to the Property, including, repair and maintenance charges, utility charges, real estate taxes or other taxes that may be imposed that relate to the Property, shall be paid by the Company. In addition, the Lease contains other customary terms and provisions generally contained within leases of this type. The net cash proceeds the Company received following closing is $ 6,110 after taxes, expenses, and fees. The Company is required to use the net cash proceeds to pay down the principal balance of the Superiority Term Loans, as further described in Note 10, Debt . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 6. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Current liabilities Accrued compensation and related taxes $ 13,634 $ 11,666 Accrued warranty 1,245 1,678 Inventory-related accruals 1,264 5,819 Warranty settlement provision (see Note 18) 3,589 3,761 Other accrued expenses 10,897 8,901 Accrued expenses and other current liabilities $ 30,629 $ 31,825 Non-current liabilities Warranty settlement provision, net of current portion (see Note 18) $ 5,711 $ 6,119 Other accrued expenses, net of current portion 1,802 1,787 Other liabilities, net of current portion $ 7,513 $ 7,906 On March 14, 2023, Jerry Guo, the Company’s co-founder, President and Chief Executive Officer, announced his retirement from his executive roles effective March 17, 2023. A separation agreement was entered into by Mr. Guo and the Company’s board of directors on March 13, 2023. Pursuant to this agreement, Mr. Guo was entitled to certain termination benefits, including accelerated vesting of stock awards, for which additional stock-based compensation of $ 1,737 was recognized in the nine months ended September 30, 2023, as discussed in Note 12, Stock-based Compensation , all of which was accrued for during the three months ended March 31, 2023. The agreement also included separation pay, equal to the sum of (i) Mr. Guo's annual base salary at the rate in effect as of March 17, 2023 and (ii) Mr. Guo's target bonus for the calendar year 2023. During the nine months ended September 30, 2023 , the Company recorded severance expenses of $ 2,199 related to Mr. Guo's separation agreement, of which $ 1,015 is still included in accrued compensation and related taxes in the table above as of September 30, 2023. Total expense recognized as a result of the separation agreement during the nine months ended September 30, 2023 was $ 3,936 , inclusive of severance expense and stock based compensation expense as described above. Reduction in Force In April 2023, the Company approved a plan for a reduction in force. The Company reduced its workforce by 134 employees, representing approximately 13 % of the Company's total workforce. Severance payments and other employee-related cost in connection with the reduction in force during the nine months ended September 30, 2023 were classified in the condensed consolidated statements of operations and comprehensive loss as follows: Nine Months Ended September 30, 2023 Research and development expenses $ 1,826 Selling, general and administrative expenses 188 Cost of revenue 137 Total $ 2,151 As of September 30, 2023, substantially all of these severance payments have been paid. Accrued Warranty Substantially all of the Company’s products are covered by warranties for software and hardware for periods ranging from 90 days to two years . In addition, in conjunction with customers’ renewals of maintenance and support contracts, the Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. In the event of a failure of a hardware product or software covered by these warranties, the Company must generally repair or replace the software or hardware or, if those remedies are insufficient, and at the discretion of the Company, provide a refund. The Company’s warranty reserve, which is included in accrued expenses and other current liabilities in the condensed consolidated balance sheets, reflects estimated material, labor and other costs related to potential or actual software and hardware warranty claims for which the Company expects to incur an obligation. The Company’s estimates of anticipated rates of warranty claims and the costs associated therewith are primarily based on historical information and future forecasts. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary. If the historical data used to calculate the adequacy of the warranty reserve are not indicative of future requirements, additional or reduced warranty reserves may be required. The following table presents a summary of changes in the amount reserved for warranty costs for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 Warranty reserve at beginning of period $ 1,678 $ 2,392 Provisions 635 2,371 Charges ( 1,068 ) ( 1,396 ) Warranty reserve at end of period $ 1,245 $ 3,367 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements Recurring Fair Value Measurement The following tables present information about the fair value of the Company’s financial assets and liabilities as of September 30, 2023 and December 31, 2022 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of September 30, 2023 Using: Level 1 Level 2 Level 3 Total Assets: Money market mutual funds $ 28,624 $ — $ — $ 28,624 $ 28,624 $ — $ — $ 28,624 Liabilities: Warrant liability $ — $ — $ 15,336 $ 15,336 Embedded derivatives — — 1,170 1,170 $ — $ — $ 16,506 $ 16,506 Fair Value Measurements as of December 31, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,013 $ — $ 1,013 Money market mutual funds 90,984 — — 90,984 $ 90,984 $ 1,013 $ — $ 91,997 During the nine months ended September 30, 2023 and 2 0 22 , there were no transfers between Level 1, Level 2 and Level 3. Warrant Liability On June 15, 2023, in connection with the closing of the Superpriority Term Loans, as discussed in Note 10, Debt , the Company issued Warrants, defined in Note 2, Summary of Significant Accounting Policies . The warrants are exercisable for a variable percentage of the Common Stock of the Company depending on how long the debt remains outstanding. Warrants representing the right to purchase an aggregate of 9,691 shares of the Company's common stock (the “10% Warrants”) were immediately vested as of the June 15, 2023 closing date. Warrants representing the right to purchase 4,846 shares of the Company's common stock (the “5% Warrants”) will vest on January 1, 2024 , if the debt remains outstanding. Warrants representing the right to purchase 4,836 shares of the Company's common stock (the “4.99% Warrants”) will vest on January 1, 2025 , if the debt remains outstanding. Due to the variable number of shares for which the warrants were exercisable, they failed to qualify for equity classification under the indexation guidance in ASC 815. Therefore, the Warrants are classified as liabilities and recorded at fair value on the condensed consolidated balance sheet. A summary of the warrants is as follows: Number of Shares Outstanding as of June 14, 2023 — Granted 19,373 Exercised ( 1,306 ) Outstanding at September 30, 2023 18,067 Warrants exercisable at September 30, 2023 8,385 Each reporting period, the Warrants are recorded at fair value, with changes in fair value recognized in the Company’s consolidated statement of operations. Changes in the fair value of the warrant liability from June 15, 2023 to September 30, 2023 were as follows: Warrant liability fair value Balance as of June 15, 2023 $ 20,305 Exercise of warrants ( 1,174 ) Change in fair value of warrant liability ( 3,795 ) Balance at September 30, 2023 $ 15,336 The Company’s liability for the Warrants is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The Company establishes the fair value for the Warrants using a Monte Carlo simulation model. The key inputs into the valuation models were as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Risk-free interest rate 4.7 % 3.9 %– 4.7 % Correlated random variable 0.2 0.2 – 0.3 Expected volatility - revenue 40.0 % 40.0 %– 45.0 % Expected volatility - equity 93.0 % 90.0 %– 93.0 % Vesting dates 1/1/2024 1/1/2025 6/15/2023 1/1/2024 1/1/2025 Simulated stock price $ 0.85 $ 0.85 –$ 1.01 Stock price at September 30, 2023 $ 0.85 $ 0.85 Embedded Derivatives Further, in connection with the Superpriority Credit Agreement, the Company identified certain embedded features requiring bifurcation as derivatives under ASC 815. These embedded derivatives are required to be bifurcated from the debt host contract at fair value with subsequent changes in fair value recognized in earnings at each balance sheet date (see Note 8). The fair value of the embedded derivatives is based on a Monte Carlo valuation model utilizing a with and without analysis of the embedded features within the debt facility. The Company ran a Monte Carlo simulation model with the embedded derivatives, and then ran a separate Monte Carlo simulation model for the overall debt facility, without the embedded derivative features. The difference between these two Monte Carlo simulation models was used to obtain the value of the embedded features. The key inputs into the valuation models for both the with and without were as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Risk-free interest rate 4.7 % 3.9 %– 4.7 % Correlated random variable 0.2 0.2 – 0.3 Expected volatility - revenue 40.0 % 40.0 %– 45.0 % The Company’s liability for the embedded derivatives is based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. Changes in the fair value of the embedded derivatives were as follows: Embedded derivatives fair value Balance at June 15, 2023 $ 1,240 Change in fair value of embedded derivatives ( 70 ) Balance at September 30, 2023 $ 1,170 Nonrecurring Fair Value Measurements Assets held for sale Property and equipment, net is identified as held for sale when it meets the held for sale criteria of Accounting Standards Codification Topic 360, Property, Plant, and Equipment ("ASC 360"). Depreciation is not recorded for assets that are classified as held for sale. When an asset meets the held for sale criteria, the lower of its carrying value or fair value less costs to sell the asset is reclassified from property and equipment, net and into noncurrent assets held for sale on the condensed consolidated balance sheets, where it remains until it is either sold or it no longer meets the held for sale criteria. As a result of the sale of the Company's headquarters, as described in Note 5, Property and Equipment , the Company measured the related asset groups at their fair values and recorded an impairment charge of $ 4,718 during the three and nine months ended September 30, 2023 in selling, general and administrative expense in the condensed consolidated statements of operations and comprehensive loss. The Company also recorded the fair value of $ 6,146 as noncurrent assets held for sale on the condensed consolidated balance sheet as of September 30, 2023, which represents a Level 1 measurement in the fair value hierarchy. Superiority Term Loans The Company initially recognized the Superpriority Term Loans at fair value in the application of extinguishment accounting (see Note 10, Debt ). The Company established the fair value for the debt facility, which is a nonrecurring fair value calculation, using a discounted-cash flow analysis, for which the initial fair value measurement on June 15, 2023 was $ 186,990 . Under the discounted-cash flow analysis, the Company discounts each principal and interest payment by an applicable discount rate determined by referencing the Company’s current public credit rating and seniority of the debt instrument in hand. The stream of principal and interest payments (discounted to present value) are used to calculate the fair value of the debt. The key inputs in valuing the debt and embedded derivatives include management projections (i.e., revenue, gross margin, operating expenses, R&D expenses, depreciation and amortization, and employee stock compensation), the Company’s cash balance, penalty amounts under an event of default (only applicable to the embedded derivatives), the forward SOFR curve, revenue volatility, revenue discount rate (derived using asset beta, metric volatility, asset volatility, risk-free rate, equity risk premium, small stock risk premium, company specific risk premium), and risk discount rate. The fair value of the Superiority Term Loans is classified within Level 3 of the fair value hierarchy. The principal amount of our outstanding Superpriority debt was $ 187,242 at September 30, 2023 and the estimated fair value of our outstanding debt was $ 181,680 at September 30, 2023, excluding unamortized debt discount. Other than the valuation techniques used for the warrant liability, embedded derivatives and Superiority Term Loans, there were no changes to the valuation techniques used to measure asset and liability fair values during the nine months ended September 30, 2023 from those included in the Company’s consolidated financial statements for the year ended December 31, 2022 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 8. Derivative Financial Instruments Fair value accounting requires bifurcation of embedded derivative instruments in debt or equity instruments and measurement of their fair value for accounting purposes. The Superpriority Term Loans, as defined and discussed in Note 10, Debt , include three embedded features; contingent interest upon an uncured event of default; mandatory prepayment upon certain excess cash flow; and mandatory prepayment upon an uncured event of default. Pursuant to ASC 815, these features have been identified as embedded derivative financial instruments. These embedded derivatives are required to be accounted for as derivatives and bifurcated from the debt host contract, resulting in remeasurement at each balance sheet date, with the change in fair value recognized in the Company’s condensed consolidated statement of operations. The total derivative liability related to these features as of September 30, 2023 was $ 1,170 and was included with accrued expenses and other current liabilities and other liabilities, net of current portion on the condensed consolidated balance sheet, as appropriate. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The Company’s effective income tax rate was ( 3.2 %) and ( 3.9 %) for the three months ended September 30, 2023 and 2022 , respectively. The provision for (benefit from) income taxes was $ 796 and $( 1,261 ) for the three months ended September 30, 2023 and 2022, respectively. The change in the provision for income taxes was primarily due to the period over period changes in the Company's valuation allowance against its deferred tax assets, the impact of changes in the Company's forecasted profitability and the jurisdictional mix of earnings. The Company’s effective income tax rate was ( 2.0 %) and 6.7 % for the nine months ended September 30, 2023 and 2022, respectively. The provision for income taxes was $ 2,104 and $ 5,071 for the nine months ended September 30, 2023 and 2022, respectively. The change in the provision for income taxes was primarily due to the period over period changes in the Company's valuation allowance against its deferred tax assets, the impact of changes in the Company's forecasted profitability and the jurisdictional mix of earnings. The provision for income taxes for the three and nine months ended September 30, 2023 and 2022 , respectively, differed from the federal statutory rate primarily due to the geographical mix of earnings and related foreign tax rate differential, permanent differences, research and development credits, foreign tax credits, and the valuation allowance maintained against the Company's deferred tax assets and withholding taxes. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Current debt obligations reflected in the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, 2023 2022 Current liabilities: Original Term Loans $ 5,019 $ 226,009 Superpriority Term Loans 1,865 — Current portion of long-term debt 6,884 226,009 Unamortized debt issuance discounts, current portion ( 506 ) ( 848 ) Current portion of long-term debt, net of unamortized debt issuance discounts $ 6,378 $ 225,161 Non-current liabilities: Superpriority Term Loans $ 185,377 $ — Unamortized debt issuance discounts, net of current portion ( 10,273 ) — Long-term debt, net of current portion and unamortized debt issuance discounts $ 175,104 $ — As of September 30, 2023, aggregate minimum future principal payments of the Company's debt are summarized as follows: Year Ending December 31, Remainder of 2023 $ 5,487 2024 1,861 2025 1,842 2026 1,824 2027 181,247 $ 192,261 On December 20, 2016, the Company entered into a credit agreement (the "Original Credit Agreement") with JPMorgan Chase Bank, N.A., as administrative agent, various lenders, JPMorgan Chase Bank, N.A. and Barclays Bank PLC providing for (i) a term loan facility of $ 300,000 (the “Original Term Loans”), due to mature on December 20, 2023 , and (ii) a revolving credit facility (the "Original Revolving Loan") of up to $ 25,000 in revolving credit loans and letters of credit, which matured on December 20, 2021 . On June 15, 2023 (the “Effective Date”), the Borrower and certain of the Lenders entered into various agreements to effectively exchange $ 218,848 of the Original Term Loans, representing approximately 97.8 % of the then outstanding principal balance, for loans of an equal principal amount having a first priority security interest in all or substantially all of the Company's and its domestic subsidiaries' assets, subject to permitted liens (the “Superpriority Credit Agreement” or “Superpriority Term Loans”), whereby the maturity date would be extended to December 20, 2027 in exchange for the Company paying down $ 40,000 of its exchanged Original Term Loans (as part of an early principal repayment), providing certain Warrants to the Lenders and paying certain in-kind fees, among other changes (the “Exchange”), and with $ 5,036 of the Original Term Loans principal remaining outstanding and still due to mature on December 20, 2023 . The Exchange was deemed to be an exchange of debt with substantially different terms under ASC Subtopic 470-50, “Modifications and Extinguishments,” and the Company recorded a loss on extinguishment of debt of approximately $ 28,956 in the condensed consolidated statement of operations for the nine months ended September 30, 2023. In applying extinguishment accounting, the Company recorded the Superpriority Term Loans at fair value. Therefore, the current carrying value of the loans approximates fair value as of September 30, 2023. The Superpriority Term Loans bear interest at the Adjusted Term SOFR Rate (as defined in the Superpriority Credit Agreement) (subject to a 2.00 % per annum floor) or Base Rate (as defined in the Superpriority Credit Agreement), as applicable, plus (x) in the case of SOFR Rate Loans (as defined in the Superpriority Credit Agreement), 6.50 % per annum or (y) in the case of Base Rate Loans (as defined in the Superpriority Credit Agreement), 5.50 % per annum, provided that, the foregoing interest rate margin in respect of both SOFR Rate Loans and Base Rate Loans shall be increased (i) by 0.50 % per annum on July 1, 2024 and (ii) by 1.00 % per annum on and after January 1, 2025 (for a total increase of 1.50 % per annum), if, in each case, the outstanding amount of Superpriority Term Loans on such date is in excess of $ 125,000 (with continuing effect from such date regardless of the outstanding amount of Superpriority Term Loans at any time after such date of determination); and any time after June 30, 2025, with respect to Superpriority Term Loans (x) in the case of SOFR Rate Loans, 13.00 % per annum or (y) in the case of Base Rate Loans, 12.00 % per annum. As of September 30, 2023 , the interest rate on the Superpriority Term Loans was 12.22 % per annum, and the effective interest rate on the Superpriority Term Loans was approximately 22 %. The Superpriority Term Loans are prepayable at par between the closing of the Superpriority Credit Agreement through December 31, 2023; thereafter, the Superpriority Term Loans are prepayable at any time and from time to time, subject to an exit fee increasing over time ranging from 3.0 % to 20.0 % through maturity. In the event the Superpriority Term Loans are accelerated prior to their maturity following any event of default, the maximum exit fee will be payable in connection therewith. The Superpriority Term Loans are expected to mature on December 20, 2027 (subject to a springing maturity of December 20, 2025 if, unless otherwise waived by holders collectively owning or controlling at least 75 % of the Superpriority Term Loans on the date of determination, (x)(1) the Total Net First Lien Leverage Ratio (as defined in the Superpriority Credit Agreement) is greater than 1.00 :1.00, or (2) the Total Net Leverage Ratio (as defined in the Superpriority Credit Agreement) is greater than 1.50 :1.00, in each case, as of September 30, 2025, or (y) a Default (as defined in the Superpriority Credit Agreement) or Event of Default (as defined in the Superpriority Credit Agreement) has occurred and is continuing under the Superpriority Credit Agreement as of December 20, 2025), unless earlier repaid or accelerated. The Superpriority Term Loans will amortize in equal quarterly installments, resulting in an aggregate annual amount equal to 1.0 % of the principal amount of the Superpriority Term Loans outstanding on the date of the Term Loan Exchange (after giving effect to the Closing Date Prepayment). The Superpriority Term Loans are subject to mandatory prepayments, including 75 % of Excess Cash Flow, as defined by the Superpriority Credit Agreement, and the proceeds from certain non-ordinary course asset dispositions, the issuance of certain equity interests by Casa and the incurrence of certain indebtedness by Casa and its subsidiaries. Such prepayments shall be subject to the exit fee described above (to the extent otherwise then applicable). The Superpriority Credit Agreement also allows for the Company to retain up to $ 25,000 of proceeds from issuances of equity or subordinated debt, once the principal balance of the Superpriority Term Loans has been paid down by $ 20,000 . The Superpriority Credit Agreement contains customary representations and warranties, conditions, affirmative and negative covenants, a minimum liquidity-based financial covenant, measured monthly and with special measurements in November and December of 2023 prior to the maturity date of the Original Term Loans having a principal balance of $ 5,019 on December 20, 2023, events of default, and indemnification obligations. As of September 30, 2023, the Company was in compliance with the terms of the Superpriority Credit Agreement. As a result of the Exchange, $ 5,019 principal remains outstanding under the Original Term Loans. The Company, certain lenders party to the Original Credit Agreement and JPMorgan Chase Bank, N.A., as agent, entered into Amendment No. 1 thereto (“Amendment No. 1”) which, among other things, permitted the transaction contemplated by the Exchange and eliminated all mandatory prepayments (other than at maturity) and representations and warranties and most affirmative and negative covenants and events of default previously applicable to the Original Term Loans. The interest rates applicable to the Original Term Loans remain unchanged. Borrowings under the Original Term Loans bear interest at a floating rate, which could be either a synthetic Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase Bank, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent ( 0.50 %) per annum and (z) a one-month Eurodollar rate plus 1.00 % per annum) plus an applicable margin. The applicable margin for borrowings under the Original Term Loans is 4.00 % per annum for Eurodollar rate loans (subject to a 1.00 % per annum interest rate floor) and 3.00 % per annum for base rate loans. The interest rate payable under the Original Term Loans is subject to an increase of 2.00 % per annum during the continuance of any payment default. For Eurodollar rate loans, the Company may select interest periods of one, three or six months or, with the consent of all relevant affected lenders, twelve months. Interest is payable at the end of the selected interest period, but no less frequently than every three months within the selected interest period. Interest on any base rate loan is not set for any specified period and is payable quarterly. The Company has the right to convert Eurodollar rate loans into base rate loans and the right to convert base rate loans into Eurodollar rate loans at its option, subject, in the case of Eurodollar rate loans, to breakage costs if the conversion was effected prior to the end of the applicable interest period. As of September 30, 2023 and December 31, 2022 , the interest rate on the Original Term Loans was 9.65 % and 8.38 % per annum, respectively, which was based on a three-month and one-month Eurodollar rate of 5.65 % and 4.38 % per annum, respectively, plus the applicable margin of 4.00 % per annum for Eurodollar rate loans. Upon entering into the Original Term Loans, the Company incurred debt issuance costs of $ 7,811 , which were initially recorded as a reduction of the debt liability and were amortized to interest expense using the effective interest method from the issuance date of the Original Term Loans until the Effective Date. Upon entering into the Superpriority Term Loan, the remaining $ 509 of debt issuance costs from the Original Term Loans was included in the loss on extinguishment of debt in the condensed consolidated statement of operations. The Company also incurred additional debt issuance costs of $ 14,388 in relation to the Exchange, which were recorded as a reduction of the debt liability and will be amortized to interest expense using the effective interest method from the issuance date of the Superpriority Term Loan until the maturity date. The Company made principal payments of $ 41,237 and $ 2,250 during the nine months ended September 30, 2023 and 2022 , respectively, in addition to the repurchase as discussed below. Interest expense, including the amortization of debt issuance costs, totaled $ 10,732 and $ 4,696 for the three months ended September 30, 2023 and 2022 , respectively, and totaled $ 21,791 and $ 12,270 for the nine months ended September 30, 2023 and 2022, respectively. On October 27, 2022, the Company's board of directors authorized the use of up to $ 50,000 of cash to fund the partial repurchase of debt outstanding under the Original Term Loans. Subsequent to this authorization and prior to the Superiority Term Loan refinancing on June 15, 2023, the Company repurchased a portion of its outstanding Original Term Loans from certain of its debt holders. During the nine months ended September 30, 2023 , but prior to the June 15, 2023 refinancing, the Company made a payment of $ 1,237 to retire $ 1,375 of its outstanding debt. The Company recognized a gain on extinguishment of debt, net of fees, of $ 133 , and also recognized $ 4 of interest expense for the pro-rata portion of unamortized debt issuance costs attributed to the debt repurchased. Total payments made under this authorization from October 27, 2022 through September 30, 2023 amounted to $ 47,116 , which were paid using funds included in cash and cash equivalents in the condensed consolidated balance sheets. Based on the applicable fair value of debt repurchased, the amount of outstanding principal of the Original Term Loans that was retired under this authorization was $ 50,591 . Voluntary prepayments of principal amounts outstanding under the Original Term Loans are permitted at any time; however, if a prepayment of principal is made with respect to a Eurodollar loan on a date other than the last day of the applicable interest period, the Company is required to compensate the lenders thereunder for any funding losses and expenses incurred as a result of the prepayment. The Original Term Loans, which are now subordinated to the Superpriority Term Loans, is secured by, among other things, a second priority security interest, subject to permitted liens, in substantially all of the Company’s assets and a pledge of certain of the stock of certain of its subsidiaries, in each case subject to specified exceptions. The Company was in compliance with all the terms of the Original Credit Agreement September 30, 2023 and December 31, 2022 . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Stock Repurchase Program On February 21, 2019, the Company announced a stock repurchase program authorizing it to repurchase up to $ 75,000 of the Company’s common stock. The Company repurchased 204 shares, at a cost of $ 1,192 , including commissions, during the nine months ended September 30, 2022 . There were no repurchases made during the three and nine months ended September 30, 2023 and during the three months ended September 30, 2022. As of September 30, 2023 , $ 60,234 remained authorized for repurchases of the Company’s common stock under the stock repurchase program. As part of the debt refinancing closed in June of 2023, the Company is now prohibited from using cash to repurchase common stock. Securities Purchase Agreement with Verizon Ventures LLC On April 18, 2022, the Company entered into a Securities Purchase Agreement (the “SPA”) with Verizon Ventures LLC providing for the private placement of an aggregate of 9,323 shares (the “Shares”) of the Company's common stock, par value $ 0.001 per share at a price of $ 4.24 per share, for an aggregate purchase price of approximately $ 39,530 . Issuance costs related to this transaction totaled $ 160 and were net against the amount recorded to additional paid in capital on the condensed consolidated balance sheet. The Company filed a resale registration statement for the Shares with the SEC on May 17, 2022. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | 12. Stock-based Compensation 2017 Stock Incentive Plan The Company’s 2017 Stock Incentive Plan (the “2017 Plan”) provides for the Company to sell or issue common stock or restricted common stock, or to grant qualified incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), performance-based restricted stock units (“PSUs”), restricted stock units ("RSUs") or other stock-based awards to the Company’s employees, officers, directors, advisors and outside consultants. The total number of shares authorized for issuance under the 2017 Plan was 16,589 shares as of September 30, 2023 , of which 2,019 shares remained available for future grant. Inducement Award During the three months ended September 30, 2023 , the Company awarded two inducement grants (the "Inducements"), consisting of restricted stock units to persons who were not previously an employee or director of the Company as an inducement to such person’s entry into employment with the Company and in accordance with the requirements of the Nasdaq Stock Market Rule 5635(c)(4). The Inducements granted outside of the 2017 Plan totaled 3,750 during the three months ended September 30, 2023. Stock Options A summary of stock option activity for the nine months ended September 30, 2023 is as follows: Number Weighted- Weighted- Aggregate Outstanding at January 1, 2023 6,537 $ 7.55 4.42 $ 134 Granted 46 1.03 Exercised ( 1 ) 2.23 Forfeited ( 647 ) 6.59 Outstanding at September 30, 2023 5,935 $ 7.61 3.80 $ — Options exercisable at September 30, 2023 5,069 $ 8.25 2.99 $ — Vested or expected to vest at September 30, 2023 5,899 $ 7.63 3.77 $ — The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Risk-free interest rate 4.4 % 3.7 % 3.5 %– 4.4 % 1.7 %– 3.7 % Expected term (in years) 6.1 6.1 6.1 5.6 – 6.1 Expected volatility 45.8 % 41.5 % 44.3 %– 45.8 % 38.5 %– 41.5 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2023 and 2022 was $ 0.44 and $ 1.62 per share, respectively. Cash proceeds received upon the exercise of options were $ 2 and $ 304 during the nine months ended September 30, 2023 and 2022, respectively. The intrinsic value of stock options exercised during the nine months ended September 30, 2023 and 2022 was $ 1 and $ 342 , respectively. The aggregate intrinsic value is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the Company’s common stock. Restricted Stock Units A summary of RSU activity for the nine months ended September 30, 2023 is as follows: Number of Weighted- Aggregate Unvested balance at January 1, 2023 5,505 $ 4.49 Granted 10,273 1.01 Vested ( 3,161 ) 4.00 $ 6,772 Forfeited ( 256 ) 5.02 Unvested balance at September 30, 2023 12,361 $ 1.67 The Company withheld 1,633 and 456 shares of common stock in settlement of employee tax withholding obligations due upon the vesting of RSUs and PSUs during the nine months ended September 30, 2023 and 2022, respectively. Performance-Based Stock Units During the nine months ended September 30, 2022 , the Company granted PSUs to certain employees that vest over a three-year period based on the achievement of performance goals and continued performance of services. All PSUs granted prior to the nine months ended September 30, 2022, and a portion of PSUs granted during the nine months ended September 30, 2022 , consist solely of market-based vesting conditions, determined by the Company’s level of achievement of pre-established parameters relating to the performance of the Company’s stock price as set by the board of directors. Vesting for these market-based PSUs may occur at any time during the three-year period. The remaining portion of PSUs granted during the three months ended September 30, 2022 consisted of performance-based vesting conditions determined by the Company's achievement of performance targets with respect to a certain customer agreement. Vesting of these performance-based PSUs occurred during the nine months ended September 30, 2023 pursuant to Jerry Guo's retirement as discussed below. No PSUs were granted during the nine months ended September 30, 2023. A summary of PSU activity for the nine months ended September 30, 2023 is as follows: Number of Weighted- Aggregate Unvested balance at January 1, 2023 1,262 $ 4.15 Granted — — Vested ( 1,238 ) 3.48 $ 2,102 Forfeited — — Unvested balance at September 30, 2023 24 $ 7.89 Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition, both of which were estimated based on a Monte Carlo simulation model applying the following key assumptions: Nine months ended September 30, 2022 Risk-free interest rate 2.8 % Volatility 79.1 % Dividend yield 0.0 % Cost of equity 13.2 % Stock Appreciation Rights Over time, the Company has granted SARs that allow the holder the right, upon exercise, to receive in cash the amount of the difference between the fair value of the Company’s common stock at the date of exercise and the price of the underlying common stock at the date of grant of each SAR. The SARs vested over a four-year period from the date of grant and expire ten years from the date of grant. There was no SAR liability as of September 30, 2023 or December 31, 2022 , as the exercise price of all outstanding SARs exceeded the fair value of the Company's common stock as of each applicable date. There were no grants, exercises or forfeitures during the nine-month period ending September 30, 2023. Stock-Based Compensation Expense Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three and nine months ended September 30, 2023 and 2022 was classified in the condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 25 $ 31 $ 61 $ 92 Research and development expenses 690 824 1,942 2,113 Selling, general and administrative expenses 1,858 2,816 6,499 6,973 Total stock-based compensation $ 2,573 $ 3,671 $ 8,502 $ 9,178 The Company recognized stock-based compensation expense for the three and nine months ended September 30, 2023 and 2022 in the condensed consolidated balance sheet as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Change in fair value of SAR liability $ — $ — $ — $ ( 159 ) Recognized as additional paid-in capital 2,573 3,671 8,502 9,337 Total stock-based compensation $ 2,573 $ 3,671 $ 8,502 $ 9,178 As of September 30, 2023 , there was $ 18,661 of unrecognized compensation cost related to outstanding stock options, RSUs, SARs and PSUs, which is expected to be recognized over a weighted-average period of 2.83 years. Retirement of Jerry Guo On March 14, 2023, Jerry Guo, the Company’s co-founder, President and Chief Executive Officer, announced his retirement from his executive roles effective March 17, 2023. A separation agreement was entered into by Mr. Guo and the Company’s board of directors on March 13, 2023. Pursuant to this agreement, Mr. Guo was entitled to certain termination benefits, including the acceleration of vesting of all unvested stock-based awards upon his termination. This resulted in the accelerated vesting and release of 551 RSUs and 883 PSUs during the nine months ended September 30, 2023. Incremental stock-based compensation recognized in selling, general and administrative expense on the condensed consolidated statement of comprehensive loss for the nine months ended September 30, 2023 was $ 1,737 . |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 13. Net Loss per Share The following potential common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Options to purchase common stock 5,935 6,657 5,935 6,657 Unvested restricted stock units 12,361 5,568 12,361 5,568 Unvested performance-based stock units 24 1,262 24 1,262 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 14. Revenue from Contracts with Customers Disaggregation of revenue The Company disaggregates its revenue by product and service in the condensed consolidated statements of operations and comprehensive loss. Performance obligations related to product revenue are recognized at a point in time, while performance obligations related to service revenue are recognized over time. The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address, summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 North America: United States $ 29,201 $ 16,988 $ 61,772 $ 53,220 Canada 11,985 14,556 27,542 39,655 Total North America 41,186 31,544 89,314 92,875 Europe, Middle East and Africa: 6,564 10,936 17,992 22,102 Asia-Pacific: Australia 7,417 14,448 33,258 51,740 Other 4,670 5,467 14,316 21,058 Total Asia-Pacific 12,087 19,915 47,574 72,798 Latin America 2,252 4,504 10,509 14,359 Total revenue (1) $ 62,089 $ 66,899 $ 165,389 $ 202,134 (1) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. The Company also disaggregates its revenue based on product lines as determined by the technical characteristics of the product. As telecommunication technologies, and the market for them evolves, the categorization of its products is subject to shifts that management monitors and reevaluates as necessary. Accordingly, beginning with the three months ended March 31, 2023, the Company updated its product line reporting. Revenue amounts for the three and nine months ended September 30, 2022 have been reclassified to conform with 2023 reporting. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product revenue: Access devices $ 31,750 $ 33,612 $ 83,642 $ 100,365 Cable 8,226 20,573 33,871 56,448 Cloud 9,760 1,250 13,459 10,308 Total product revenue 49,736 55,435 130,972 167,121 Service revenue: Access devices 1,363 1,006 3,442 4,637 Cable 9,226 9,670 26,408 27,622 Cloud 1,764 788 4,567 2,754 Total service revenue 12,353 11,464 34,417 35,013 Total revenue $ 62,089 $ 66,899 $ 165,389 $ 202,134 Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue when the Company satisfies its performance obligations, consistent with the Company's revenue recognition policy. During the three and nine months ended September 30, 2023 , the Company recognized revenue of $ 3,902 and $ 14,507 , respectively, that was included in deferred revenue in the condensed consolidated balance sheet as of December 31, 2022. During the three and nine months ended September 30, 2022 , the Company recognized revenue of $ 1,726 and $ 13,706 , respectively, that was included in deferred revenue in the condensed consolidated balance sheet as of December 31, 2021. The Company receives payments from customers based upon contractual billing terms. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced. As of September 30, 2023 and December 31, 2022 , the Company included contract assets of $ 1,621 and $ 2,674 , respectively, in accounts receivable, net in the condensed consolidated balance sheets. Transaction Price Allocated to the Remaining Performance Obligations As of September 30, 2023 , the aggregate remaining amount of revenue expected to be recognized related to unsatisfied or partially unsatisfied performance obligations was $ 46,220 , which consisted of deferred revenue. The Company expects approximately 91 % of this amount to be recognized in the next twelve months with the remaining amount to be recognized over the next two to five years . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the Company’s chief operating decision maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company has determined that its chief operating decision maker is its Chief Executive Officer. The Company’s chief operating decision maker reviews the Company’s financial information on a consolidated basis for purposes of allocating resources and assessing financial performance. Since the Company operates as one operating segment, all required financial segment information can be found in these condensed consolidated financial statements. The Company’s property and equipment, net by location was as follows: September 30, December 31, China $ 2,673 $ 3,017 United States 2,572 14,679 Australia 682 1,054 Other 500 768 Total property and equipment, net $ 6,427 $ 19,518 |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | 16. Related Parties Employment of Rongke Xie Rongke Xie, who serves as General Manager of Guangzhou Casa Communication Technology LTD (“Casa China”), a subsidiary of the Company, is the sister of Lucy Xie, who served as the Company’s Senior Vice President of Operations until her retirement on December 31, 2022, and as a member of the Company’s board of directors until May 18, 2023. Rongke Xie is also the sister-in-law of Jerry Guo, who served as the Company's President and Chief Executive Officer until his retirement on March 17, 2023, and remains serving as a member of the Company's board of directors. Casa China paid Rongke Xie $ 180 and $ 181 in total compensation during the nine months ended September 30, 2023 and 2022, respectively, for her services as an employee. To date, the Company has granted to Rongke Xie 165 RSUs, which vest over four-year periods. The grant-date fair value of the awards totaled $ 617 , which is recorded as stock-based compensation expense over the vesting period of the awards. During the three months ended September 30, 2023 and 2022 , the Company recognized selling, general and administrative expenses of $ 25 and $ 26 related to these awards. During the nine months ended September 30, 2023 and 2022 , the Company recognized selling, general and administrative expenses of $ 79 and $ 87 related to these awards. Transactions Involving Verizon Communications Inc. and its Affiliates As a result of the Company's SPA with Verizon Ventures LLC on April 18, 2022 (see Note 11, Stockholders Equity ), Verizon Communications Inc. and its subsidiaries (“Verizon and Affiliates”) collectively became a principal stockholder of the Company through its ownership of common stock. Verizon and Affiliates are customers of the Company. During the three and nine months ended September 30, 2023 , the Company recognized revenue of $ 16,037 and $ 23,321 , respectively, from transactions with Verizon and Affiliates, and amounts received in cash resulting from revenue transactions with Verizon and Affiliates during the nine months ended September 30, 2023 totaled $ 36,924 . During the three and nine months ended September 30, 2022 , the Company recognized revenue of $ 3,041 and $ 13,591 from transactions with Verizon and Affiliates during which a related party relationship existed, and amounts received in cash resulting from revenue transactions with Verizon and Affiliates during the six months ended September 30, 2022 totaled $ 27,203 . As of September 30, 2023 and December 31, 2022 , amounts due from Verizon and Affiliates totaled $ 1,289 and $ 6,044 , respectively, and were included in accounts receivable, net in the condensed consolidated balance sheet. As of September 30, 2023 and December 31, 2022 , revenue from transactions that did not meet the criteria for recognition totaling $ 27,200 and $ 18,094 , respectively, with Verizon and Affiliates were included in deferred revenue in the condensed consolidated balance sheet. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | 17. Leases The Company leases manufacturing, warehouse and office space in the United States, Ireland, China, Hong Kong, Spain and Australia under non-cancelable operating leases with expiration dates through 2028 , as well as various equipment leases. The leases have remaining lease terms of 1 year to 5 years , some of which contain options to extend the leases for up to 3 additional years and some of which include options to terminate the leases within 1 year . The lease agreements contain lease and non-lease components, which are generally accounted for together. After the adoption of ASC 842, the Company determines if an arrangement is a lease at inception. Operating leases are included in the operating lease right-of-use, (“ROU”), assets and the short-term and long-term lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company used its incremental borrowing rate based on information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Pursuant to the terms of the lease agreement for the Company’s Australia office, the Company obtained six standby letters of credit in the amount of approximately $ 725 and $ 2,100 as security on the lease obligation, as of September 30, 2023 and December 31, 2022, respectively. The letters of credit are classified as restricted cash in the accompanying condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022. The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 531 $ 556 $ 1,637 $ 1,753 Short-term lease cost 2 2 4 2 Variable lease cost 63 69 191 217 Total lease cost $ 596 $ 627 $ 1,832 $ 1,972 Supplemental cash flow information related to leases was as follows: Nine Months Ended Nine Months Ended September 30, 2023 September 30, 2022 Cash paid for operating leases included in cash flows from operating activities $ 1,564 $ 1,583 Right-of-use assets obtained in exchange for new operating leases 55 507 Supplemental balance sheet information related to leases was as follows: September 30, 2023 December 31, 2022 Weighted average remaining lease term for operating leases 3.24 years 3.58 years Weighted average discount rate for operating leases 4.2 % 4.0 % Maturities of operating lease liabilities were as follows: Year Ending December 31, 2023 $ 530 2024 1,296 2025 931 2026 826 2027 559 Thereafter 2 Total future minimum lease payments 4,144 Less: amounts representing interest ( 282 ) Total lease liabilities 3,862 Less: current operating lease liability ( 1,446 ) Long term operating lease liability $ 2,416 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Indemnification The Company has, in the ordinary course of business, agreed to defend and indemnify certain customers and partners against third-party claims asserting (i) infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and (ii) certain other harms caused by the acts or omissions of the Company. As permitted under Delaware law, the Company indemnifies its officers, directors and employees for certain events or occurrences that happen by reason of their relationship with or position held at the Company. As of September 30, 2023 and December 31, 2022 the Company accrued $ 579 and $ 1,487 , respectively, as a minimum estimated liability related to ongoing indemnification claims. As of September 30, 2023 and December 31, 2022, no additional material claims were outstanding where a contingent loss was considered to be probable or reasonably estimable. The Company does not expect additional significant claims related to these indemnification obligations and, consequently, concluded that the fair value of any additional obligations is negligible. Litigation From time to time, the Company is a party to various litigation matters and subject to claims that arise in the ordinary course of business including, for example, patent infringement lawsuits by non-practicing entities. In addition, third parties may from time to time assert claims against the Company in the form of letters and other communications. The Company is not presently subject to any pending or threatened litigation that it believes, if determined adversely to the Company, individually, or taken together, would reasonably be expected to have a material adverse effect on its business or financial results. Other As described in Note 6, Accrued Expenses and Other Current Liabilities , the Company provides industry-standard product warranties to its customers and is thus inherently subject to loss contingencies that include warranty claims which may arise in the ordinary course of business. On July 21, 2022, the Company received written notification from a significant customer of one of its international subsidiaries, of alleged costs incurred and expected to be incurred by that customer with respect to an ongoing warranty matter relating to field replacements of failed units for one particular product, which failure was attributable to an unauthorized part substitution in 2019 by a supplier to the subsidiary. On December 23, 2022, the Company executed a settlement deed with the customer, whereby the Company agreed to, among other things, a settlement amount of 20,000 Australian dollars, to be paid in four equal annual installments , the first of which was paid upon execution of the settlement deed in the amount of 5,000 Australian dollars, or $ 3,398 . As of September 30, 2023 , the remaining accrued expense balance, representing the estimated net present value of the remaining payments, plus the estimated cost of other non-monetary obligations under the settlement deed was $ 9,300 , as shown in Note 6, Accrued Expenses and Other Current Liabilities . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates and judgments relied upon by management in preparing these condensed consolidated financial statements include revenue recognition, reserves for excess and obsolete inventory, valuation of inventory and deferred inventory costs, the expensing and capitalization of software-related research and development costs, amortization and depreciation periods, the recoverability of net deferred tax assets, valuations of uncertain tax positions, warranty allowances, the valuation of equity instruments, warrants and embedded derivatives, and stock-based compensation expense. Although the Company regularly reassesses the assumptions underlying these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances existing at the time such estimates are made. The COVID-19 pandemic disrupted the Company's global supply chain. Throughout 2022 and 2021, the Company experienced shipping bottlenecks and shortages of supply that resulted in its inability to fulfill certain customer orders within normal lead times. This adversely impacted the Company's revenue and operating results for the years ended December 31, 2022 and 2021. The Company also experienced, in some cases, significant increases in shipping costs. While the impact to the Company has partially subsided during 2023, the Company continues to work with its supply chain, contract manufacturers, logistics partners and customers to minimize the extent of such impacts and will continue to actively monitor supply chain developments. The Company cannot predict if or when such effects will recur or worsen, and in such a case, could prevent the Company from being able to fulfill its customers' orders in a timely manner or at all, which could lead to one or more of its customers canceling their orders. The Company would be neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. In addition, the regions in which the Company operates have experienced a significant increase in inflation, which has adversely impacted the cost to manufacture the Company's products with limited ability to pass such increases on to its customers under previously established fixed price agreements. Inflation has further resulted in increased operating costs and interest rate increases, which will result in increased debt service costs. If interest rates continue to rise, the Company anticipates further adverse effects from inflation and increased interest rates. At this time, the Company is neither able to estimate the extent of these impacts nor predict whether its efforts to minimize or contain them will be successful. The Company will continue to monitor its business very closely for any effects of COVID-19, inflation and interest rate increases for as long as necessary. |
Subsequent Event Considerations | Subsequent Event Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no additional material recognized or unrecognized subsequent events requiring disclosure in these condensed consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include all highly liquid investments maturing within three months from the date of purchase. As of September 30, 2023 and December 31, 2022, the Company’s cash and cash equivalents consisted of savings accounts and investments in money market mutual funds. Restricted cash as of September 30, 2023 consisted of cash of $ 1,000 pledged as collateral for a stand-by letter of credit required to support a contractual obligation and cash of $ 725 pledged as collateral in connection with two letters of credit to support contractual obligations, as further discussed in Note 17, Leases . As of December 31, 2022 , restricted cash consisted of a certificate of deposit of $ 1,013 , pledged as collateral for a stand-by letter of credit required to support a contractual obligation, as well as cash of $ 2,100 , pledged as collateral in connection with two letters of credit to support contractual obligations, as further discussed in Note 17, Leases . The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: September 30, 2023 September 30, 2022 Cash and cash equivalents $ 47,925 $ 193,494 Restricted cash included in other assets 1,725 3,108 $ 49,650 $ 196,602 |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of a provision for doubtful accounts, which is an estimate of amounts that may not be collectible. Accounts receivable for customer contracts with customary payment terms, which are one year or less, are recorded at invoiced amounts and do not bear interest. The Company may, in limited circumstances, grant payment terms longer than one year. Payments due beyond 12 months from the balance sheet date are recorded as non-current assets. The Company generally does not require collateral, but the Company may, in certain instances based on its credit assessment, require full or partial prepayment prior to shipment. Accounts receivable as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Current portion of accounts receivable, net: Accounts receivable, net $ 37,360 $ 74,407 Accounts receivable, extended payment terms — 77 $ 37,360 $ 74,484 The Company performs ongoing credit evaluations of its customers and, if necessary, provides a provision for doubtful accounts and expected losses. When assessing and recording its provision for doubtful accounts, the Company evaluates the age of its accounts receivable, current economic trends, creditworthiness of the customer, customer payment history, and other specific customer and transaction information. The Company also provides an overall expected credit loss amount, based on historical loss rates, in accordance with ASC 326, Credit Losses . The Company writes off accounts receivable against the provision when it determines a balance is uncollectible and no longer actively pursues collection of the receivable. Adjustments to the provision for doubtful accounts are recorded as selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss. As of September 30, 2023 and December 31, 2022 , the Company concluded that all amounts due under extended payment terms were collectible and recorded no reserve for credit losses. During the nine months ended September 30, 2023 and 2022 , the Company did no t provide a reserve for credit losses and did no t write off any uncollectible receivables due under extended payment terms. The Company has entered into customer-sponsored programs administered by unrelated financial institutions that allow for the sales (factor) of certain accounts receivable at discounted rates to the financial institutions, without recourse. Transactions under this agreement were accounted for as a sale of accounts receivable and the related accounts receivable were removed from the Company's condensed consolidated balance sheet at the time of the sales transaction. Under this agreement, the Company sold $ 10,427 and $ 31,200 of accounts receivables during the three and nine months ended September 30, 2023 , respectively. Selling, general and administrative expenses include factoring costs associated with this program of $ 170 and $ 368 during the three and nine months ended September 30, 2023 , respectively. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. Cash and cash equivalents consist of demand deposits, savings accounts and money market mutual funds, and certificates of deposit with financial institutions, which may exceed Federal Deposit Insurance Corporation limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company grants credit to customers in the ordinary course of business. Credit evaluations are performed on an ongoing basis to reduce credit risk, and no collateral is required from the Company’s customers. An allowance for uncollectible accounts is provided for those accounts receivable considered to be uncollectible based upon historical experience and credit evaluation. Due to these factors, no additional losses beyond the amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Revenue Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Customer A 26 % * 14 % * Customer B 16 % 17 % 10 % 13 % Accounts Receivable, Net As of As of September 30, 2023 December 31, 2022 Customer B 10 % * Customer C 15 % * Customer D * 12 % Customer E * 11 % * Less than 10% of total Certain of the components and subassemblies included in the Company’s products are obtained and manufactured from a single source or a limited group of suppliers. Although the Company seeks to reduce dependence on those single or limited source suppliers, the partial or complete loss of certain of these sources could have a material adverse effect on the Company’s operating results, financial condition and cash flows and damage its customer relationships. |
Warrant Liability | Warrant Liability On June 15, 2023, in connection with the Superpriority Term Loans, as discussed in Note 10, Debt , the Company issued certain penny warrants (the “Warrants”), approximately half of which were immediately vested. The Company’s liability for the Warrants is based on a valuation model utilizing observable inputs from active markets, as further described in Note 7, Fair Value Measurements . The fair value of the warrant liability is classified within Level 3 of the fair value hierarchy as it is based on significant inputs not observable in the market. The Company establishes the fair value for the Warrants using a Monte Carlo simulation model. Due to the variable number of shares for which the Warrants were exercisable, they failed to qualify for equity classification under the indexation guidance in Accounting Standards Codification 815 ("ASC 815"). Therefore, the Warrants are classified as liabilities at fair value on the condensed consolidated balance sheet. Each reporting period, the Warrants are recorded at fair value, with changes in fair value recognized in the Company’s consolidated statement of operations within revaluation of warrant liability. |
Embedded Derivatives | Embedded Derivatives In connection with the Superpriority Credit Agreement, as discussed in Note 10, Debt , the Company identified certain embedded features requiring bifurcation as derivatives under ASC 815. These embedded derivatives are required to be bifurcated from the debt host contract at fair value with subsequent changes in fair value recognized in earnings at each balance sheet date (see Note 8, Derivative Financial Instruments ). The Superpriority Term Loans, as defined and discussed in Note 10, Debt , include three embedded features: contingent interest upon an uncured event of default; mandatory prepayment upon certain excess cash flow; and mandatory prepayment upon an uncured event of default. Pursuant to ASC 815, these features have been identified as embedded derivative financial instruments. These embedded derivatives are required to be accounted for as derivatives and bifurcated from the host debt contract, resulting in remeasurement at each balance sheet date, with the change in fair value recognized in the Company’s condensed consolidated statement of operations. The fair value of the embedded derivatives is classified within Level 3 of the fair value hierarchy as it is based on significant inputs not observable in the market. The fair value of the embedded derivatives is based on a valuation model utilizing a with and without analysis of the embedded features within the debt facility. The Company runs a Monte Carlo simulation model with the embedded derivatives, and then runs a separate Monte Carlo simulation model for the overall debt facility, without the embedded derivative features. The difference between these two Monte Carlo simulation models is used to obtain the value of the embedded features. |
Impact of Recently Adopted and Issued Accounting Standards | Impact of Recently Adopted or Issued Accounting Standards There have been no recently adopted or issued accounting standards that are applicable to the Company since December 31, 2022. |
Other | Other Other than the disclosures above, there have been no changes to the significant accounting policies disclosed in Note 2, Summary of Significant Accounting Policies, to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets | The following table is a reconciliation of cash, cash equivalents and restricted cash included in the accompanying condensed consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash included in the accompanying condensed consolidated statements of cash flows: September 30, 2023 September 30, 2022 Cash and cash equivalents $ 47,925 $ 193,494 Restricted cash included in other assets 1,725 3,108 $ 49,650 $ 196,602 |
Schedule of Accounts Receivable | Accounts receivable as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Current portion of accounts receivable, net: Accounts receivable, net $ 37,360 $ 74,407 Accounts receivable, extended payment terms — 77 $ 37,360 $ 74,484 |
Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable | Significant customers are those that represent 10% or more of revenue or accounts receivable and are set forth in the following tables: Revenue Revenue Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Customer A 26 % * 14 % * Customer B 16 % 17 % 10 % 13 % Accounts Receivable, Net As of As of September 30, 2023 December 31, 2022 Customer B 10 % * Customer C 15 % * Customer D * 12 % Customer E * 11 % * Less than 10% of total |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets Net | Intangible assets, net consisted of intangible assets resulting from the acquisition of NetComm and purchased software to be used in the Company’s products. Intangible assets, net consisted of the following at September 30, 2023 and December 31, 2022, respectively: Cost Accumulated Net Balance Developed Technology $ 25,000 $ ( 15,181 ) $ 9,819 Customer Relationships 18,000 ( 7,650 ) 10,350 Trade Name 1,000 ( 1,000 ) — Purchased Software 2,638 ( 1,491 ) 1,147 Totals as of September 30, 2023 $ 46,638 $ ( 25,322 ) $ 21,316 Cost Accumulated Net Balance Developed Technology $ 25,000 $ ( 12,502 ) $ 12,498 Customer Relationships 18,000 ( 6,300 ) 11,700 Trade Name 1,000 ( 1,000 ) — Purchased Software 2,545 ( 984 ) 1,561 Totals as of December 31, 2022 $ 46,545 $ ( 20,786 ) $ 25,759 |
Schedule of Amortization Expense on Existing Intangible Assets | As of September 30, 2023, amortization expense on existing intangible assets for the next five years and beyond is as follows: Year Ending December 31, Remainder of 2023 $ 1,486 2024 5,929 2025 5,786 2026 3,615 2027 1,800 Thereafter 2,700 $ 21,316 |
Summary of Amortization Expense | A summary of amortization expense recorded during the three and nine months ended September 30, 2023 and 2022 is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product cost of revenue $ 893 $ 893 $ 2,679 $ 2,679 Research and development 174 149 507 393 Selling, general and administrative 450 450 1,350 1,520 Totals $ 1,517 $ 1,492 $ 4,536 $ 4,592 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Raw materials $ 31,745 $ 47,581 Finished goods: Manufactured finished goods 45,245 32,863 Deferred inventory costs 216 1,351 $ 77,206 $ 81,795 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Components of Property and Equipment | Property and equipment as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Computers and purchased software $ 23,912 $ 25,572 Leasehold improvements 3,790 4,226 Furniture and fixtures 2,284 2,471 Machinery and equipment 24,161 34,502 Land — 3,091 Building — 4,765 Building improvements — 7,374 Trial systems at customers’ sites 1,636 2,582 55,783 84,583 Less: Accumulated depreciation and amortization ( 49,356 ) ( 65,065 ) $ 6,427 $ 19,518 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, Current liabilities Accrued compensation and related taxes $ 13,634 $ 11,666 Accrued warranty 1,245 1,678 Inventory-related accruals 1,264 5,819 Warranty settlement provision (see Note 18) 3,589 3,761 Other accrued expenses 10,897 8,901 Accrued expenses and other current liabilities $ 30,629 $ 31,825 Non-current liabilities Warranty settlement provision, net of current portion (see Note 18) $ 5,711 $ 6,119 Other accrued expenses, net of current portion 1,802 1,787 Other liabilities, net of current portion $ 7,513 $ 7,906 |
Summary of Changes in Amount Reserved for Warranty Costs | The following table presents a summary of changes in the amount reserved for warranty costs for the nine months ended September 30, 2023 and 2022: Nine Months Ended September 30, 2023 2022 Warranty reserve at beginning of period $ 1,678 $ 2,392 Provisions 635 2,371 Charges ( 1,068 ) ( 1,396 ) Warranty reserve at end of period $ 1,245 $ 3,367 |
Schedule of Severance Payments and Other Employee-related Cost | Severance payments and other employee-related cost in connection with the reduction in force during the nine months ended September 30, 2023 were classified in the condensed consolidated statements of operations and comprehensive loss as follows: Nine Months Ended September 30, 2023 Research and development expenses $ 1,826 Selling, general and administrative expenses 188 Cost of revenue 137 Total $ 2,151 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Fair Value of Financial Assets and Liabilities | The following tables present information about the fair value of the Company’s financial assets and liabilities as of September 30, 2023 and December 31, 2022 and indicate the level of the fair value hierarchy utilized to determine such fair values: Fair Value Measurements as of September 30, 2023 Using: Level 1 Level 2 Level 3 Total Assets: Money market mutual funds $ 28,624 $ — $ — $ 28,624 $ 28,624 $ — $ — $ 28,624 Liabilities: Warrant liability $ — $ — $ 15,336 $ 15,336 Embedded derivatives — — 1,170 1,170 $ — $ — $ 16,506 $ 16,506 Fair Value Measurements as of December 31, 2022 Using: Level 1 Level 2 Level 3 Total Assets: Certificates of deposit—restricted cash $ — $ 1,013 $ — $ 1,013 Money market mutual funds 90,984 — — 90,984 $ 90,984 $ 1,013 $ — $ 91,997 |
Summary of warrants | A summary of the warrants is as follows: Number of Shares Outstanding as of June 14, 2023 — Granted 19,373 Exercised ( 1,306 ) Outstanding at September 30, 2023 18,067 Warrants exercisable at September 30, 2023 8,385 |
Warrant Liability | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Schedule of Key Inputs into Valuation Models | The key inputs into the valuation models were as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Risk-free interest rate 4.7 % 3.9 %– 4.7 % Correlated random variable 0.2 0.2 – 0.3 Expected volatility - revenue 40.0 % 40.0 %– 45.0 % Expected volatility - equity 93.0 % 90.0 %– 93.0 % Vesting dates 1/1/2024 1/1/2025 6/15/2023 1/1/2024 1/1/2025 Simulated stock price $ 0.85 $ 0.85 –$ 1.01 Stock price at September 30, 2023 $ 0.85 $ 0.85 |
Summary of Change in Fair value | Changes in the fair value of the warrant liability from June 15, 2023 to September 30, 2023 were as follows: Warrant liability fair value Balance as of June 15, 2023 $ 20,305 Exercise of warrants ( 1,174 ) Change in fair value of warrant liability ( 3,795 ) Balance at September 30, 2023 $ 15,336 |
Embedded Derivatives | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Schedule of Key Inputs into Valuation Models | The key inputs into the valuation models for both the with and without were as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Risk-free interest rate 4.7 % 3.9 %– 4.7 % Correlated random variable 0.2 0.2 – 0.3 Expected volatility - revenue 40.0 % 40.0 %– 45.0 % |
Summary of Change in Fair value | Changes in the fair value of the embedded derivatives were as follows: Embedded derivatives fair value Balance at June 15, 2023 $ 1,240 Change in fair value of embedded derivatives ( 70 ) Balance at September 30, 2023 $ 1,170 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Current Debt Obligations | Current debt obligations reflected in the condensed consolidated balance sheets as of September 30, 2023 and December 31, 2022 consisted of the following: September 30, December 31, 2023 2022 Current liabilities: Original Term Loans $ 5,019 $ 226,009 Superpriority Term Loans 1,865 — Current portion of long-term debt 6,884 226,009 Unamortized debt issuance discounts, current portion ( 506 ) ( 848 ) Current portion of long-term debt, net of unamortized debt issuance discounts $ 6,378 $ 225,161 Non-current liabilities: Superpriority Term Loans $ 185,377 $ — Unamortized debt issuance discounts, net of current portion ( 10,273 ) — Long-term debt, net of current portion and unamortized debt issuance discounts $ 175,104 $ — |
Schedule of Aggregate Minimum Future Principal Payments of Debt | As of September 30, 2023, aggregate minimum future principal payments of the Company's debt are summarized as follows: Year Ending December 31, Remainder of 2023 $ 5,487 2024 1,861 2025 1,842 2026 1,824 2027 181,247 $ 192,261 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Options Activity | A summary of stock option activity for the nine months ended September 30, 2023 is as follows: Number Weighted- Weighted- Aggregate Outstanding at January 1, 2023 6,537 $ 7.55 4.42 $ 134 Granted 46 1.03 Exercised ( 1 ) 2.23 Forfeited ( 647 ) 6.59 Outstanding at September 30, 2023 5,935 $ 7.61 3.80 $ — Options exercisable at September 30, 2023 5,069 $ 8.25 2.99 $ — Vested or expected to vest at September 30, 2023 5,899 $ 7.63 3.77 $ — |
Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model | The fair value of each option is estimated on the date of grant using the Black-Scholes option-pricing model using the following assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Risk-free interest rate 4.4 % 3.7 % 3.5 %– 4.4 % 1.7 %– 3.7 % Expected term (in years) 6.1 6.1 6.1 5.6 – 6.1 Expected volatility 45.8 % 41.5 % 44.3 %– 45.8 % 38.5 %– 41.5 % Expected dividend yield 0.0 % 0.0 % 0.0 % 0.0 % |
Summary of RSU Activity | A summary of RSU activity for the nine months ended September 30, 2023 is as follows: Number of Weighted- Aggregate Unvested balance at January 1, 2023 5,505 $ 4.49 Granted 10,273 1.01 Vested ( 3,161 ) 4.00 $ 6,772 Forfeited ( 256 ) 5.02 Unvested balance at September 30, 2023 12,361 $ 1.67 |
Summary of PSU Activity | A summary of PSU activity for the nine months ended September 30, 2023 is as follows: Number of Weighted- Aggregate Unvested balance at January 1, 2023 1,262 $ 4.15 Granted — — Vested ( 1,238 ) 3.48 $ 2,102 Forfeited — — Unvested balance at September 30, 2023 24 $ 7.89 |
Assumptions of Estimated Based on Monte Carlo Simulation Model | Compensation expense is based on the estimated value of the awards on the grant date, and is recognized over the period from the grant date through the expected vest dates of each vesting condition, both of which were estimated based on a Monte Carlo simulation model applying the following key assumptions: Nine months ended September 30, 2022 Risk-free interest rate 2.8 % Volatility 79.1 % Dividend yield 0.0 % Cost of equity 13.2 % |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense related to stock options, RSUs, SARs and PSUs for the three and nine months ended September 30, 2023 and 2022 was classified in the condensed consolidated statements of operations and comprehensive loss as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenue $ 25 $ 31 $ 61 $ 92 Research and development expenses 690 824 1,942 2,113 Selling, general and administrative expenses 1,858 2,816 6,499 6,973 Total stock-based compensation $ 2,573 $ 3,671 $ 8,502 $ 9,178 The Company recognized stock-based compensation expense for the three and nine months ended September 30, 2023 and 2022 in the condensed consolidated balance sheet as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Change in fair value of SAR liability $ — $ — $ — $ ( 159 ) Recognized as additional paid-in capital 2,573 3,671 8,502 9,337 Total stock-based compensation $ 2,573 $ 3,671 $ 8,502 $ 9,178 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following potential common shares were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Options to purchase common stock 5,935 6,657 5,935 6,657 Unvested restricted stock units 12,361 5,568 12,361 5,568 Unvested performance-based stock units 24 1,262 24 1,262 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address | The Company also disaggregates its revenue based on geographic locations of its customers, as determined by the customer’s shipping address, summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 North America: United States $ 29,201 $ 16,988 $ 61,772 $ 53,220 Canada 11,985 14,556 27,542 39,655 Total North America 41,186 31,544 89,314 92,875 Europe, Middle East and Africa: 6,564 10,936 17,992 22,102 Asia-Pacific: Australia 7,417 14,448 33,258 51,740 Other 4,670 5,467 14,316 21,058 Total Asia-Pacific 12,087 19,915 47,574 72,798 Latin America 2,252 4,504 10,509 14,359 Total revenue (1) $ 62,089 $ 66,899 $ 165,389 $ 202,134 (1) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. |
Summary of Disaggregates of Revenue Based on Product Line | The Company also disaggregates its revenue based on product lines as determined by the technical characteristics of the product. As telecommunication technologies, and the market for them evolves, the categorization of its products is subject to shifts that management monitors and reevaluates as necessary. Accordingly, beginning with the three months ended March 31, 2023, the Company updated its product line reporting. Revenue amounts for the three and nine months ended September 30, 2022 have been reclassified to conform with 2023 reporting. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product revenue: Access devices $ 31,750 $ 33,612 $ 83,642 $ 100,365 Cable 8,226 20,573 33,871 56,448 Cloud 9,760 1,250 13,459 10,308 Total product revenue 49,736 55,435 130,972 167,121 Service revenue: Access devices 1,363 1,006 3,442 4,637 Cable 9,226 9,670 26,408 27,622 Cloud 1,764 788 4,567 2,754 Total service revenue 12,353 11,464 34,417 35,013 Total revenue $ 62,089 $ 66,899 $ 165,389 $ 202,134 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Property and Equipment, Net by Location | The Company’s property and equipment, net by location was as follows: September 30, December 31, China $ 2,673 $ 3,017 United States 2,572 14,679 Australia 682 1,054 Other 500 768 Total property and equipment, net $ 6,427 $ 19,518 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 531 $ 556 $ 1,637 $ 1,753 Short-term lease cost 2 2 4 2 Variable lease cost 63 69 191 217 Total lease cost $ 596 $ 627 $ 1,832 $ 1,972 |
Summary of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to leases was as follows: Nine Months Ended Nine Months Ended September 30, 2023 September 30, 2022 Cash paid for operating leases included in cash flows from operating activities $ 1,564 $ 1,583 Right-of-use assets obtained in exchange for new operating leases 55 507 |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to leases was as follows: September 30, 2023 December 31, 2022 Weighted average remaining lease term for operating leases 3.24 years 3.58 years Weighted average discount rate for operating leases 4.2 % 4.0 % |
Summary of Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows: Year Ending December 31, 2023 $ 530 2024 1,296 2025 931 2026 826 2027 559 Thereafter 2 Total future minimum lease payments 4,144 Less: amounts representing interest ( 282 ) Total lease liabilities 3,862 Less: current operating lease liability ( 1,446 ) Long term operating lease liability $ 2,416 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 1,725,000 | $ 3,108,000 | $ 1,725,000 | $ 3,108,000 | |
Selling, general and administrative | 27,174,000 | 22,442,000 | 72,616,000 | 66,741,000 | |
Customer-Sponsored Programs | |||||
Significant Accounting Policies [Line Items] | |||||
Sale of accounts receivable | 10,427,000 | 31,200,000 | |||
Selling, general and administrative | 170,000 | 368,000 | |||
Accounts Receivable, Extended Payment Terms | |||||
Significant Accounting Policies [Line Items] | |||||
Reserve for credit losses | 0 | $ 0 | 0 | 0 | $ 0 |
Write off of uncollectible receivables | 0 | $ 0 | |||
Certificates of Deposit | |||||
Significant Accounting Policies [Line Items] | |||||
Restricted cash | 1,000,000 | 1,000,000 | 1,013,000 | ||
Cash | |||||
Significant Accounting Policies [Line Items] | |||||
Restricted cash | $ 725,000 | $ 725,000 | $ 2,100,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash in Accompanying Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 47,925 | $ 126,312 | $ 193,494 | |||
Restricted cash included in other assets | $ 1,725 | $ 3,108 | ||||
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | ||||
Cash and cash equivalents, restricted cash | $ 49,650 | [1] | $ 129,425 | $ 196,602 | [1] | $ 157,804 |
[1] See Note 2 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash shown in these unaudited condensed consolidated statements of cash flows. |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Current portion of accounts receivable, net: | |||
Current portion of accounts receivable, net | [1] | $ 37,360 | $ 74,484 |
Accounts Receivable, Net | |||
Current portion of accounts receivable, net: | |||
Current portion of accounts receivable, net | 37,360 | 74,407 | |
Accounts Receivable, Extended Payment Terms | |||
Current portion of accounts receivable, net: | |||
Current portion of accounts receivable, net | $ 0 | $ 77 | |
[1] Includes accounts receivable due from a related party of $ 1,289 and $ 6,044 at September 30, 2023 and December 31, 2022, respectively (see Note 16) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Significant Customers Represent 10% or More of Revenue or Accounts Receivable (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenue | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 26% | 14% | |||
Revenue | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 16% | 17% | 10% | 13% | |
Accounts Receivable | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10% | ||||
Accounts Receivable | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15% | ||||
Accounts Receivable | Customer D | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 12% | ||||
Accounts Receivable | Customer E | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 50,177 | $ 50,177 | $ 50,177 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 46,638 | $ 46,545 |
Accumulated Amortization | (25,322) | (20,786) |
Net Balance | 21,316 | 25,759 |
Developed Technology | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 25,000 | 25,000 |
Accumulated Amortization | (15,181) | (12,502) |
Net Balance | 9,819 | 12,498 |
Customer Relationships | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 18,000 | 18,000 |
Accumulated Amortization | (7,650) | (6,300) |
Net Balance | 10,350 | 11,700 |
Trade Name | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 1,000 | 1,000 |
Accumulated Amortization | (1,000) | (1,000) |
Purchased Software | NetComm Wireless Limited | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 2,638 | 2,545 |
Accumulated Amortization | (1,491) | (984) |
Net Balance | $ 1,147 | $ 1,561 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Amortization Expense on Existing Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 1,486 | |
2024 | 5,929 | |
2025 | 5,786 | |
2026 | 3,615 | |
2027 | 1,800 | |
Thereafter | 2,700 | |
Net Balance | $ 21,316 | $ 25,759 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1,517 | $ 1,492 | $ 4,536 | $ 4,592 |
Product Cost of Revenue | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 893 | 893 | 2,679 | 2,679 |
Research and Development | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 174 | 149 | 507 | 393 |
Selling, General and Administrative | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 450 | $ 450 | $ 1,350 | $ 1,520 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 31,745 | $ 47,581 |
Finished goods: | ||
Manufactured finished goods | 45,245 | 32,863 |
Deferred inventory costs | 216 | 1,351 |
Total inventory | $ 77,206 | $ 81,795 |
Inventory - Additional Informat
Inventory - Additional Information (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Inventory Disclosure [Abstract] | |
Additional reserves recognized | $ 10,792 |
Property and Equipment - Summar
Property and Equipment - Summary of Components of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 55,783 | $ 84,583 |
Less: Accumulated depreciation and amortization | (49,356) | (65,065) |
Property and equipment, net | 6,427 | 19,518 |
Computers and Purchased Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 23,912 | 25,572 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,790 | 4,226 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,284 | 2,471 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 24,161 | 34,502 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 3,091 | |
Building | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,765 | |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 7,374 | |
Trial Systems at Customers' Sites | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,636 | $ 2,582 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 16, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expense on property and equipment | $ 1,240 | $ 1,704 | $ 3,960 | $ 5,744 | |
Purchase agreement | DND homes, LLC | |||||
Property, Plant and Equipment [Line Items] | |||||
Purchase price | $ 6,400 | ||||
Net cash proceeds | 6,110 | ||||
Annual fixed rent | 610 | ||||
Down payment | $ 300 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current liabilities | ||
Accrued compensation and related taxes | $ 13,634 | $ 11,666 |
Accrued warranty | 1,245 | 1,678 |
Inventory-related accruals | 1,264 | 5,819 |
Warranty settlement provision | 3,589 | 3,761 |
Other accrued expenses | 10,897 | 8,901 |
Accrued expenses and other current liabilities | 30,629 | 31,825 |
Non-current liabilities | ||
Warranty settlement provision, net of current portion | 5,711 | 6,119 |
Other accrued expenses, net of current portion | 1,802 | 1,787 |
Other liabilities, net of current portion | $ 7,513 | $ 7,906 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2023 Employee | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Accrued Expenses And Other Current Liabilities [Line Items] | ||||||
Serverance expenses | $ 2,199 | |||||
Stock-based compensation expense | $ 2,573 | $ 3,671 | $ 8,502 | $ 9,178 | ||
Standard product warranty description | the Company’s products are covered by warranties for software and hardware for periods ranging from 90 days to two years. | |||||
Extended product warranty description | the Company offers an extended warranty for periods typically of one to three years for agreed-upon fees. | |||||
Estimated reduction in current workforce, number of employees | Employee | 134 | |||||
Percentage of estimated workforce to be reduced | 13% | |||||
Accrued compensation and related taxes | 13,634 | $ 13,634 | $ 11,666 | |||
Restructuring charges | 2,151 | |||||
Separation Agreement | ||||||
Accrued Expenses And Other Current Liabilities [Line Items] | ||||||
Stock-based compensation expense | 3,936 | |||||
Separation Agreement | Mr. Jerry Guo | ||||||
Accrued Expenses And Other Current Liabilities [Line Items] | ||||||
Stock-based compensation expense | 1,737 | |||||
Accrued compensation and related taxes | $ 1,015 | $ 1,015 | ||||
Minimum | ||||||
Accrued Expenses And Other Current Liabilities [Line Items] | ||||||
Product warranties period for software and hardware | 90 days | |||||
Extended product warranty period for renewals of maintenance and support contracts | 1 year | |||||
Maximum | ||||||
Accrued Expenses And Other Current Liabilities [Line Items] | ||||||
Product warranties period for software and hardware | 2 years | |||||
Extended product warranty period for renewals of maintenance and support contracts | 3 years |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Schedule of Severance Payments and Other Employee-related Cost (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Restructuring charges | $ 2,151 |
Research and Development Expenses | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Restructuring charges | 1,826 |
Selling, General and Administrative Expenses | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Restructuring charges | 188 |
Cost of Revenue | |
Accrued Expenses And Other Current Liabilities [Line Items] | |
Restructuring charges | $ 137 |
Accrued Expenses and Other Cu_6
Accrued Expenses and Other Current Liabilities - Summary of Changes in Amount Reserved for Warranty Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Product Warranties Disclosures [Abstract] | ||
Warranty reserve at beginning of period | $ 1,678 | $ 2,392 |
Provisions | 635 | 2,371 |
Charges | (1,068) | (1,396) |
Warranty reserve at end of period | $ 1,245 | $ 3,367 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Financial Assets and Liabilities (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Assets fair value | $ 28,624 | $ 91,997 |
Liabilities: | ||
Liabilities fair value | 16,506 | |
Certificates of Deposit - Restricted Cash | ||
Assets: | ||
Assets fair value | 1,013 | |
Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | 28,624 | 90,984 |
Warrant Liability | ||
Liabilities: | ||
Liabilities fair value | 15,336 | |
Embedded Derivatives | ||
Liabilities: | ||
Liabilities fair value | 1,170 | |
Level 1 | ||
Assets: | ||
Assets fair value | 28,624 | 90,984 |
Level 1 | Money Market Mutual Funds | ||
Assets: | ||
Assets fair value | $ 28,624 | 90,984 |
Level 2 | ||
Assets: | ||
Assets fair value | 1,013 | |
Level 2 | Certificates of Deposit - Restricted Cash | ||
Assets: | ||
Assets fair value | $ 1,013 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 15, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value, assets, transfers from Level 1 to Level 2 | $ 0 | $ 0 | $ 0 | |
Fair value, assets, transfers from Level 2 to Level 1 | 0 | 0 | 0 | |
Fair value, assets, transfers into Level 3 | 0 | 0 | ||
Fair value, assets, transfers out of Level 3 | 0 | $ 0 | ||
Debt instrument fair value | $ 186,990,000 | |||
Noncurrent assets held for sale | 6,146,000 | 6,146,000 | ||
Fair Value, Nonrecurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Noncurrent assets held for sale | 6,146,000 | 6,146,000 | ||
Superpriority Term Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Principal amount of loan | 187,242,000 | 187,242,000 | ||
Estimated fair value of outstanding debt excluding unamortized debt discount | 181,680,000 | 181,680,000 | ||
Selling, General and Administrative Expenses | Fair Value, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | $ 4,718,000 | $ 4,718,000 | ||
10% Warrants | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants right to purchase shares of common stock | 9,691 | |||
Warrants vesting dates | Jun. 15, 2023 | |||
5% Warrants | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants right to purchase shares of common stock | 4,846 | |||
Warrants vesting dates | Jan. 01, 2024 | |||
4.99% Warrants | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Warrants right to purchase shares of common stock | 4,836 | |||
Warrants vesting dates | Jan. 01, 2025 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Warrants (Detail) shares in Thousands | 4 Months Ended |
Sep. 30, 2023 shares | |
Class of Warrant or Right [Line Items] | |
Granted | 19,373 |
Exercised | (1,306) |
Warrants outstanding, ending balance | 18,067 |
Warrants exercisable | 8,385 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Fair Values of Warrant Liability (Detail) - Warrant Liability $ in Thousands | 4 Months Ended |
Sep. 30, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Warrant liability, Beginning balance | $ 20,305 |
Exercise of warrants | (1,174) |
Change in fair value | (3,795) |
Warrant liability, Ending balance | $ 15,336 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Key Inputs into Valuation Models (Details) | 3 Months Ended | 9 Months Ended | |
Jun. 15, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
10% Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants vesting dates | Jun. 15, 2023 | ||
5% Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants vesting dates | Jan. 01, 2024 | ||
4.99% Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants vesting dates | Jan. 01, 2025 | ||
Level 3 | Risk-free interest rate | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 4.7 | 4.7 | |
Level 3 | Risk-free interest rate | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 4.7 | 4.7 | |
Level 3 | Risk-free interest rate | Minimum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 3.9 | 3.9 | |
Level 3 | Risk-free interest rate | Minimum | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 3.9 | 3.9 | |
Level 3 | Risk-free interest rate | Maximum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 4.7 | 4.7 | |
Level 3 | Risk-free interest rate | Maximum | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 4.7 | 4.7 | |
Level 3 | Correlated random variable | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0.2 | 0.2 | |
Level 3 | Correlated random variable | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 0.2 | 0.2 | |
Level 3 | Correlated random variable | Minimum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0.2 | 0.2 | |
Level 3 | Correlated random variable | Minimum | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 0.2 | 0.2 | |
Level 3 | Correlated random variable | Maximum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0.3 | 0.3 | |
Level 3 | Correlated random variable | Maximum | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 0.3 | 0.3 | |
Level 3 | Expected volatility - revenue | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 40 | 40 | |
Level 3 | Expected volatility - revenue | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 40 | 40 | |
Level 3 | Expected volatility - revenue | Minimum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 40 | 40 | |
Level 3 | Expected volatility - revenue | Minimum | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 40 | 40 | |
Level 3 | Expected volatility - revenue | Maximum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 45 | 45 | |
Level 3 | Expected volatility - revenue | Maximum | Embedded Derivatives | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Embedded derivative, measurement input | 45 | 45 | |
Level 3 | Expected volatility - equity | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 93 | 93 | |
Level 3 | Expected volatility - equity | Minimum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 90 | 90 | |
Level 3 | Expected volatility - equity | Maximum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 93 | 93 | |
Level 3 | Simulated stock price | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0.85 | 0.85 | |
Level 3 | Simulated stock price | Minimum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0.85 | 0.85 | |
Level 3 | Simulated stock price | Maximum | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 1.01 | 1.01 | |
Level 3 | 10% Warrants | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants vesting dates | Jun. 15, 2023 | ||
Level 3 | 5% Warrants | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants vesting dates | Jan. 01, 2024 | Jan. 01, 2024 | |
Level 3 | 4.99% Warrants | Warrant Liability | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants vesting dates | Jan. 01, 2025 | Jan. 01, 2025 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in Fair Values of Embedded Derivatives (Detail) - Level 3 - Embedded Derivatives $ in Thousands | 4 Months Ended |
Sep. 30, 2023 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Embedded derivatives fair value, Beginning balance | $ 1,240 |
Change in fair value | (70) |
Embedded derivatives fair value, Ending balance | $ 1,170 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Total derivative liability | $ 1,170 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent, Accrued Expenses And Other Current Liabilities Current |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 796 | $ (1,261) | $ 2,104 | $ 5,071 |
Effective tax rate | (3.20%) | (3.90%) | (2.00%) | 6.70% |
Debt - Schedule of Current Debt
Debt - Schedule of Current Debt Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current liabilities: | ||
Unamortized debt issuance discounts, current portion | $ (506) | $ (848) |
Current portion of long-term debt, net of unamortized debt issuance discounts | 6,378 | 225,161 |
Non-current liabilities: | ||
Unamortized debt issuance discounts, net of current portion | (10,273) | |
Long-term debt, net of current portion and unamortized debt issuance discounts | 175,104 | |
Original Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | 5,019 | 226,009 |
Superpriority Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | 1,865 | |
Non-current liabilities: | ||
Non-current portion of principal payment obligations | 185,377 | |
Term Loans | ||
Current liabilities: | ||
Current portion of principal payment obligations | $ 6,884 | $ 226,009 |
Debt - Schedule of Aggregate Mi
Debt - Schedule of Aggregate Minimum Future Principal Payments Of The Company's Debt (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2023 | $ 5,487 |
2024 | 1,861 |
2025 | 1,842 |
2026 | 1,824 |
2027 | 181,247 |
Aggregate minimum future principal payments of debt | $ 192,261 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 15, 2023 | Oct. 27, 2022 | Dec. 20, 2016 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 20, 2023 | ||
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | [1] | $ (28,822) | ||||||||
Repayments of debt | $ 42,474 | $ 2,250 | ||||||||
JPMorgan Chase Bank, N. A. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate description | As a result of the Exchange, $5,019 principal remains outstanding under the Original Term Loans. The Company, certain lenders party to the Original Credit Agreement and JPMorgan Chase Bank, N.A., as agent, entered into Amendment No. 1 thereto (“Amendment No. 1”) which, among other things, permitted the transaction contemplated by the Exchange and eliminated all mandatory prepayments (other than at maturity) and representations and warranties and most affirmative and negative covenants and events of default previously applicable to the Original Term Loans. The interest rates applicable to the Original Term Loans remain unchanged. Borrowings under the Original Term Loans bear interest at a floating rate, which could be either a synthetic Eurodollar rate plus an applicable margin or, at the Company’s option, a base rate (defined as the highest of (x) the JPMorgan Chase Bank, N.A. prime rate, (y) the federal funds effective rate, plus one-half percent (0.50%) per annum and (z) a one-month Eurodollar rate plus 1.00% per annum) plus an applicable margin. The applicable margin for borrowings under the Original Term Loans is 4.00% per annum for Eurodollar rate loans (subject to a 1.00% per annum interest rate floor) and 3.00% per annum for base rate loans. The interest rate payable under the Original Term Loans is subject to an increase of 2.00% per annum during the continuance of any payment default. | |||||||||
Additional debt issuance costs | $ 14,388 | |||||||||
Original Term Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Exchange for paying down | 40,000 | |||||||||
Principal amount of loan | $ 5,019 | |||||||||
Original Term Loans | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing amount under facility | $ 300,000 | |||||||||
Debt instrument, maturity date | Dec. 20, 2023 | |||||||||
Original Term Loans | JPMorgan Chase Bank, N. A. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate stated percentage | 4% | |||||||||
Debt instrument, interest rate description | As of September 30, 2023 and December 31, 2022, the interest rate on the Original Term Loans was 9.65% and 8.38% per annum, respectively, which was based on a three-month and one-month Eurodollar rate of 5.65% and 4.38% per annum, respectively, plus the applicable margin of 4.00% per annum for Eurodollar rate loans. | |||||||||
Debt instrument, effective interest rate percentage | 9.65% | 9.65% | 8.38% | |||||||
Debt issuance costs | $ 7,811 | |||||||||
Debt instrument, principal payment | $ 41,237 | 2,250 | ||||||||
Interest expense, including amortization of debt issuance costs | $ 10,732 | $ 4,696 | 21,791 | $ 12,270 | ||||||
Principal amount of loan | $ 50,000 | 5,036 | 5,036 | |||||||
Repayments of debt | 47,116 | 1,237 | ||||||||
Outstanding debt | 1,375 | |||||||||
Gain on extinguishment of debt, Net of fees | 133 | |||||||||
Unamortized Debt Issuance Expense | 4 | |||||||||
Outstanding principal amount of debt, retired | $ 50,591 | |||||||||
Principal balance outstanding | $ 5,019 | $ 5,019 | ||||||||
Original Term Loans | JPMorgan Chase Bank, N. A. | Eurodollar Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate percentage | 4% | 4% | ||||||||
Debt instrument, effective interest rate percentage | 5.65% | 5.65% | 4.38% | |||||||
Original Term Loans | JPMorgan Chase Bank, N. A. | Floor Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate stated percentage | 1% | |||||||||
Original Term Loans | JPMorgan Chase Bank, N. A. | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate stated percentage | 3% | |||||||||
Superpriority Term Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, effectively exchange | $ 218,848 | |||||||||
Debt instrument, interest rate stated percentage | 12.22% | 12.22% | ||||||||
Debt instrument, interest rate description | The Superpriority Term Loans bear interest at the Adjusted Term SOFR Rate (as defined in the Superpriority Credit Agreement) (subject to a 2.00% per annum floor) or Base Rate (as defined in the Superpriority Credit Agreement), as applicable, plus (x) in the case of SOFR Rate Loans (as defined in the Superpriority Credit Agreement), 6.50% per annum or (y) in the case of Base Rate Loans (as defined in the Superpriority Credit Agreement), 5.50% per annum, provided that, the foregoing interest rate margin in respect of both SOFR Rate Loans and Base Rate Loans shall be increased (i) by 0.50% per annum on July 1, 2024 and (ii) by 1.00% per annum on and after January 1, 2025 (for a total increase of 1.50% per annum), if, in each case, the outstanding amount of Superpriority Term Loans on such date is in excess of $125,000 (with continuing effect from such date regardless of the outstanding amount of Superpriority Term Loans at any time after such date of determination); and any time after June 30, 2025, with respect to Superpriority Term Loans (x) in the case of SOFR Rate Loans, 13.00% per annum or (y) in the case of Base Rate Loans, 12.00% per annum. As of September 30, 2023, the interest rate on the Superpriority Term Loans was 12.22% per annum, and the effective interest rate on the Superpriority Term Loans was approximately 22%. | |||||||||
Debt instrument, extended maturity date | Dec. 20, 2027 | |||||||||
Debt instrument, effective interest rate percentage | 22% | 22% | ||||||||
Loss on extinguishment of debt | $ 28,956 | |||||||||
Debt instrument, maturity date | Dec. 20, 2027 | |||||||||
Percentage of collectively owning or controlling at least | 75% | |||||||||
Percentage of total net first lien leverage ratio | 1% | |||||||||
Percentage of total net leverage ratio | 1.50% | |||||||||
Percentage of loan amortize from principal amount | 1% | |||||||||
Principal amount of loan | $ 187,242 | $ 187,242 | ||||||||
Percentage of term loan outstanding principal balance | 97.80% | |||||||||
Superpriority Term Loans | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, exit fee increasing over time, Percent | 20% | |||||||||
Superpriority Term Loans | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, exit fee increasing over time, Percent | 3% | |||||||||
Superpriority Term Loans | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Amount allowed to retain from proceeds | $ 25,000 | |||||||||
Term loan part payment | 20,000 | |||||||||
Superpriority Term Loans | JPMorgan Chase Bank, N. A. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs | $ 509 | |||||||||
Percentage on excess cash flow for mandatory prepayments of debt | 75% | |||||||||
Superpriority Term Loans | Superpriority Credit Agreement | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, outstanding amount excess | $ 125,000 | |||||||||
Superpriority Term Loans | Superpriority Credit Agreement | Floor Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate stated percentage | 2% | |||||||||
Superpriority Term Loans | Superpriority Credit Agreement | SOFR Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate percentage | 13% | |||||||||
Debt instrument, interest rate stated percentage | 6.50% | |||||||||
Superpriority Term Loans | Superpriority Credit Agreement | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate percentage | 12% | |||||||||
Debt instrument, interest rate stated percentage | 5.50% | |||||||||
Superpriority Term Loans | Superpriority Credit Agreement on July 1, 2024 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate increase | 0.50% | |||||||||
Superpriority Term Loans | Superpriority Credit Agreement on and after January 1, 2025 | Base Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate stated percentage | 1% | |||||||||
Debt instrument, interest rate increase | 1.50% | |||||||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate increase | 2% | |||||||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Federal Funds Effective Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate percentage | 0.50% | |||||||||
Revolving Credit Facility | JPMorgan Chase Bank, N. A. | Eurodollar Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate percentage | 1% | |||||||||
Orginal Revolving Loan | JPMorgan Chase Bank, N.A. and Barclays Bank PLC and Various Lenders | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing amount under facility | $ 25,000 | |||||||||
Debt instrument, maturity date | Dec. 20, 2021 | |||||||||
[1] Loss related to Term Loan B refinancing and issuance of warrants during the nine months ended September 30, 2023 (see Note 10) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | |||||
Apr. 18, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Feb. 21, 2019 | |
Class Of Stock [Line Items] | |||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Securities Purchase Agreement | Verizon Ventures LLC | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, par value | $ 0.001 | ||||||
Purchase price per share | $ 4.24 | ||||||
Aggregate purchase price | $ 39,530,000 | ||||||
Issuance costs | $ 160,000 | ||||||
Private Placement | Securities Purchase Agreement | Verizon Ventures LLC | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate stock purchased | 9,323 | ||||||
Common Stock | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchase program, common stock remaining authorized to be repurchased | $ 60,234 | $ 60,234 | |||||
Stock repurchase program, stock repurchased, shares | 0 | 0 | 0 | 204 | |||
Stock repurchase program, stock repurchased, value | $ 1,192,000 | ||||||
Aggregate stock purchased | 9,323 | ||||||
Common Stock | Maximum | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchase program, common stock authorized to be repurchased | $ 75,000,000 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Cash proceeds received upon the exercise of options | $ 2,000 | $ 304,000 | |||
Unrecognized compensation cost | $ 18,661,000 | $ 18,661,000 | |||
Weighted-average period of unrecognized compensation cost expected to be recognized | 2 years 9 months 29 days | ||||
2017 Stock Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized for grant | 16,589,000 | 16,589,000 | |||
Number of remaining shares available for grant | 2,019,000 | 2,019,000 | |||
Inducement Award | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 3,750,000 | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average grant date fair value per share of options | $ 0.44 | $ 1.62 | |||
Cash proceeds received upon the exercise of options | $ 2,000 | $ 304,000 | |||
Intrinsic value of stock options exercised | $ 1,000 | $ 342,000 | |||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 10,273,000 | ||||
Number of shares, forfeitures | 256,000 | ||||
Accelerated vesting and release, shares | 551,000 | ||||
Performance-Based Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 3 years | 3 years | |||
Number of shares, granted | 0 | ||||
Accelerated vesting and release, shares | 883,000 | ||||
Stock Appreciation Rights | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Number of shares, granted | 0 | ||||
Number of shares, exercised | 0 | ||||
Number of shares, forfeitures | 0 | ||||
Award expiration period | 10 years | ||||
Fair value of liability | $ 0 | $ 0 | $ 0 | ||
Common Stock | RSUs and PSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares of common stock in settlement of employee tax withholding obligations | 1,633,000 | 456,000 | |||
Selling, General and Administrative Expenses | Chief Executive Officer | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Incremental stock-based compensation cost | $ 1,737,000 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary Stock Options Activity (Details) - 2017 Stock Incentive Plan $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Shares, Outstanding, Beginning Balance | shares | 6,537 | |
Number of Shares, Granted | shares | 46 | |
Number of Shares, Exercised | shares | (1) | |
Number of Shares, Forfeited | shares | (647) | |
Number of Shares, Outstanding, Ending Balance | shares | 5,935 | 6,537 |
Number of Shares, Options exercisable at September 30, 2023 | shares | 5,069 | |
Number of Shares, Vested or expected to vest at September 30, 2023 | shares | 5,899 | |
Weighted-Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 7.55 | |
Weighted-Average Exercise Price, Granted | $ / shares | 1.03 | |
Weighted-Average Exercise Price, Exercised | $ / shares | 2.23 | |
Weighted-Average Exercise Price, Forfeited | $ / shares | 6.59 | |
Weighted-Average Exercise Price, Outstanding, Ending Balance | $ / shares | 7.61 | $ 7.55 |
Weighted-Average Exercise Price, Options exercisable at September 30, 2023 | $ / shares | 8.25 | |
Weighted-Average Exercise Price, Vested or expected to vest at September 30, 2023 | $ / shares | $ 7.63 | |
Weighted-Average Remaining Contractual Term, Outstanding | 3 years 9 months 18 days | 4 years 5 months 1 day |
Weighted-Average Remaining Contractual Term, Options exercisable at September 30, 2023 | 2 years 11 months 26 days | |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at September 30, 2023 | 3 years 9 months 7 days | |
Aggregate Intrinsic Value, Outstanding | $ | $ 134 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions of Estimated Fair Value of Option on the Date of Grant Using Black-Scholes Option Pricing Model (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 4.40% | 3.70% | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 1 month 6 days | |
Expected volatility | 45.80% | 41.50% | ||
Expected volatility, Minimum | 44.30% | 38.50% | ||
Expected volatility, Maximum | 45.80% | 41.50% | ||
Expected dividend yield | 0% | 0% | 0% | 0% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 3.50% | 1.70% | ||
Expected term (in years) | 5 years 7 months 6 days | |||
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 4.40% | 3.70% | ||
Expected term (in years) | 6 years 1 month 6 days |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of RSU Activity (Details) - Restricted Stock Units $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning Balance | shares | 5,505 |
Number of Shares, Granted | shares | 10,273 |
Number of Shares, Vested | shares | (3,161) |
Number of Shares, Forfeited | shares | (256) |
Number of Shares, Ending Balance | shares | 12,361 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 4.49 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 1.01 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 4 |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | 5.02 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares | $ 1.67 |
Aggregate Fair Value, Vested | $ | $ 6,772 |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of PSU Activity (Details) - Performance-Based Stock Units $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Shares, Beginning Balance | 1,262,000 |
Number of Shares, Granted | 0 |
Number of Shares, Vested | (1,238,000) |
Number of Shares, Ending Balance | 24,000 |
Weighted-Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 4.15 |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | 3.48 |
Weighted-Average Grant Date Fair Value, Ending Balance | $ / shares | $ 7.89 |
Aggregate Fair Value, Vested | $ | $ 2,102 |
Stock-based Compensation - As_2
Stock-based Compensation - Assumptions of Estimated Based on Monte Carlo Simulation Model (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 4.40% | 3.70% | ||
Volatility | 45.80% | 41.50% | ||
Dividend yield | 0% | 0% | 0% | 0% |
Performance-Based Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate | 2.80% | |||
Volatility | 79.10% | |||
Dividend yield | 0% | |||
Cost of equity | 13.20% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 2,573 | $ 3,671 | $ 8,502 | $ 9,178 |
Cost of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 25 | 31 | 61 | 92 |
Research and Development Expenses | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 690 | 824 | 1,942 | 2,113 |
Selling, General and Administrative Expenses | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 1,858 | $ 2,816 | $ 6,499 | $ 6,973 |
Stock-based Compensation - Su_4
Stock-based Compensation - Summary of Stock-based Compensation Expense Recognized in the Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
Change in fair value of SAR liability | $ (159) | |||
Recognized as additional paid-in capital | $ 2,573 | $ 3,671 | $ 8,502 | 9,337 |
Total stock-based compensation | $ 2,573 | $ 3,671 | $ 8,502 | $ 9,178 |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potential Common Shares Excluded from the Computation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Options to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from computation of diluted net loss per share | 5,935 | 6,657 | 5,935 | 6,657 |
Unvested Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from computation of diluted net loss per share | 12,361 | 5,568 | 12,361 | 5,568 |
Unvested Performance-Based Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potential common shares excluded from computation of diluted net loss per share | 24 | 1,262 | 24 | 1,262 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | [1],[2] | $ 62,089 | $ 66,899 | $ 165,389 | $ 202,134 |
North America - United States | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 29,201 | 16,988 | 61,772 | 53,220 | |
North America - Canada | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 11,985 | 14,556 | 27,542 | 39,655 | |
North America | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 41,186 | 31,544 | 89,314 | 92,875 | |
Europe, Middle East and Africa | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 6,564 | 10,936 | 17,992 | 22,102 | |
Asia-Pacific - Australia | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 7,417 | 14,448 | 33,258 | 51,740 | |
Asia-Pacific - Other | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 4,670 | 5,467 | 14,316 | 21,058 | |
Asia-Pacific | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 12,087 | 19,915 | 47,574 | 72,798 | |
Latin America | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | $ 2,252 | $ 4,504 | $ 10,509 | $ 14,359 | |
[1] Includes revenue of $ 16,037 and $ 23,321 during the three and nine months ended September 30, 2023 and $ 3,041 and $ 13,591 during the three and nine months ended September 30, 2022 , during which a related party relationship existed (see Note 16) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Disaggregation of Revenue Based on Geographic Locations Determined by Customer's Shipping Address (Parenthetical) (Details) - Other than United States and Australia | 9 Months Ended |
Sep. 30, 2023 Country | |
Disaggregation Of Revenue [Line Items] | |
Number of countries represents 10% or more of total revenue | 0 |
Revenue | Geographic Concentration Risk | |
Disaggregation Of Revenue [Line Items] | |
Concentration risk percentage | 10% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Disaggregates of Revenue Based on Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | [1],[2] | $ 62,089 | $ 66,899 | $ 165,389 | $ 202,134 |
Product - Access Devices | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 31,750 | 33,612 | 83,642 | 100,365 | |
Product - Cable | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 8,226 | 20,573 | 33,871 | 56,448 | |
Product - Cloud | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 9,760 | 1,250 | 13,459 | 10,308 | |
Product | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 49,736 | 55,435 | 130,972 | 167,121 | |
Service - Access Devices | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 1,363 | 1,006 | 3,442 | 4,637 | |
Service - Cable | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 9,226 | 9,670 | 26,408 | 27,622 | |
Service - Cloud | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 1,764 | 788 | 4,567 | 2,754 | |
Service | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | $ 12,353 | $ 11,464 | $ 34,417 | $ 35,013 | |
[1] Includes revenue of $ 16,037 and $ 23,321 during the three and nine months ended September 30, 2023 and $ 3,041 and $ 13,591 during the three and nine months ended September 30, 2022 , during which a related party relationship existed (see Note 16) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | |||||
Revenue remaining performance obligation amount | $ 46,220 | $ 46,220 | |||
Accounts Receivable | |||||
Disaggregation Of Revenue [Line Items] | |||||
Contract assets | 1,621 | 1,621 | $ 2,674 | ||
Deferred Revenue | |||||
Disaggregation Of Revenue [Line Items] | |||||
Revenue | $ 3,902 | $ 1,726 | $ 14,507 | $ 13,706 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Additional Information (Details1) | Sep. 30, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue remaining performance obligation, percentage | 91% |
Revenue, remaining performance obligation, expected timing of satisfaction period | 12 months |
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 2 years |
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction period | 5 years |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Property and Equipment, Net by Location (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 6,427 | $ 19,518 |
China | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 2,673 | 3,017 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 2,572 | 14,679 |
Australia | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 682 | 1,054 |
Other | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 500 | $ 768 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Related Party Transaction [Line Items] | ||||||
Selling, general and administrative | $ 27,174 | $ 22,442 | $ 72,616 | $ 66,741 | ||
Revenue | [1],[2] | 62,089 | 66,899 | $ 165,389 | 202,134 | |
Restricted Stock Units | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares, granted | 10,273 | |||||
Aggregate fair value vested | $ 6,772 | |||||
Rongke Xie | ||||||
Related Party Transaction [Line Items] | ||||||
Compensation paid | $ 180 | 181 | ||||
Rongke Xie | Restricted Stock Units | ||||||
Related Party Transaction [Line Items] | ||||||
Number of shares, granted | 165 | |||||
Award vesting period | 4 years | |||||
Aggregate fair value vested | $ 617 | |||||
Selling, general and administrative | 25 | 26 | 79 | 87 | ||
Verizon And Affiliates | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue | 16,037 | $ 3,041 | 23,321 | 13,591 | ||
Amounts received in cash | 36,924 | $ 27,203 | ||||
Other Receivables | 1,289 | 1,289 | $ 6,044 | |||
Deferred revenue associated with related party | $ 27,200 | $ 27,200 | $ 18,094 | |||
[1] Includes revenue of $ 16,037 and $ 23,321 during the three and nine months ended September 30, 2023 and $ 3,041 and $ 13,591 during the three and nine months ended September 30, 2022 , during which a related party relationship existed (see Note 16) Other than the United States, Canada and Australia, no individual countries represented 10 % or more of the Company’s total revenue for any of the periods presented. |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
United States | ||
Lessee, Lease, Description [Line Items] | ||
Non-cancelable operating leases expiration year | 2028 | |
Ireland | ||
Lessee, Lease, Description [Line Items] | ||
Non-cancelable operating leases expiration year | 2028 | |
China | ||
Lessee, Lease, Description [Line Items] | ||
Non-cancelable operating leases expiration year | 2028 | |
Hong Kong | ||
Lessee, Lease, Description [Line Items] | ||
Non-cancelable operating leases expiration year | 2028 | |
Spain | ||
Lessee, Lease, Description [Line Items] | ||
Non-cancelable operating leases expiration year | 2028 | |
Australia | ||
Lessee, Lease, Description [Line Items] | ||
Non-cancelable operating leases expiration year | 2028 | |
Letter of credit amount obtained | $ 725 | $ 2,100 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 5 years | |
Options to extend leases | 3 additional years | |
Options to terminate leases | 1 year |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 531 | $ 556 | $ 1,637 | $ 1,753 |
Short-term lease cost | 2 | 2 | 4 | 2 |
Variable lease cost | 63 | 69 | 191 | 217 |
Total lease cost | $ 596 | $ 627 | $ 1,832 | $ 1,972 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Cash paid for operating leases included in cash flows from operating activities | $ 1,564 | $ 1,583 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Right-of-use assets obtained in exchange for new operating leases | $ 55 | $ 507 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Weighted average remaining lease term | ||
Weighted average remaining lease term for operating leases | 3 years 2 months 26 days | 3 years 6 months 29 days |
Weighted average discount rate | ||
Weighted average discount rate for operating leases | 4.20% | 4% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 530 | |
2024 | 1,296 | |
2025 | 931 | |
2026 | 826 | |
2027 | 559 | |
Thereafter | 2 | |
Total future minimum lease payments | 4,144 | |
Less: amounts representing interest | (282) | |
Total lease liabilities | 3,862 | |
Less: current operating lease liability | (1,446) | $ (2,040) |
Long term operating lease liability | $ 2,416 | $ 3,416 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2023 AUD ($) | Dec. 31, 2022 USD ($) | Dec. 23, 2022 USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||
Warranty settlement provision | $ 9,300 | |||
Installment, frequency of periodic payment | four equal annual installments | |||
Warranty Settlement Provision | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Alleged costs incurred to date | $ 20,000 | |||
Warranty settlement provision | $ 3,398 | $ 5,000 | ||
Minimum | ||||
Commitments And Contingencies Disclosure [Line Items] | ||||
Estimated liability related to ongoing indemnification claim | $ 579 | $ 1,487 |