Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Amendment Flag | false |
Entity Registrant Name | SEQUANS COMMUNICATIONS |
Entity Central Index Key | 0001383395 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Well Known Seasoned Issuer | No |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Interactive Data Current | Yes |
Document Annual Report | true |
Document Transition Report | false |
Entity Voluntary Filers | No |
Entity Emerging Growth Company | false |
Document Shell Company Report | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 95,587,146 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Revenue: | |||||
Product revenue | $ 30,864 | $ 40,250 | [1] | $ 48,263 | [1],[2] |
Cost of revenue: | |||||
Cost of product revenue | 16,703 | 21,957 | [1] | 24,725 | [1],[2] |
Cost of other revenue | 1,782 | 2,405 | [1] | 2,397 | [1],[2] |
Total cost of revenue | 18,485 | 24,362 | [1] | 27,122 | [1],[2] |
Gross profit | 12,379 | 15,888 | [1] | 21,141 | [1],[2] |
Operating expenses: | |||||
Research and development | 23,799 | 27,909 | [1] | 25,202 | [1],[2] |
Sales and marketing | 7,968 | 9,411 | [1] | 8,785 | [1],[2] |
General and administrative | 8,570 | 10,085 | [1] | 6,679 | [1],[2] |
Total operating expenses | 40,337 | 47,405 | [1] | 40,666 | [1],[2] |
Operating income (loss) | (27,958) | (31,517) | [1] | (19,525) | [1],[2] |
Financial income (expense): | |||||
Interest expense | (9,643) | (5,447) | [1] | (4,672) | [1],[2] |
Interest income | 50 | 71 | [1] | 60 | [1],[2] |
Other financial expense | 0 | (400) | [1] | 0 | [1],[2] |
Convertible debt amendments | 0 | (265) | [1] | (322) | [1],[2] |
Foreign exchange gain (loss), net | 71 | 366 | [1] | (1,401) | [1],[2] |
Profit (Loss) before income taxes | (37,480) | (37,192) | [1] | (25,860) | [1],[2] |
Profit (loss) before income taxes | (37,192) | (25,860) | |||
Income tax expense (benefit) | (783) | (968) | [1] | 300 | [1],[2] |
Profit (Loss) | (36,697) | (36,224) | [1] | (26,160) | [1],[2] |
Attributable to: | |||||
Shareholders of the parent | (36,697) | (36,224) | [1] | (26,160) | [1],[2] |
Non-controlling interests | $ 0 | $ 0 | [1] | $ 0 | [1],[2] |
Basic earnings (loss) per share (in dollars per share) | $ (0.39) | $ (0.39) | [1] | $ (0.34) | [1],[2] |
Diluted earnings (loss) per share (in dollars per share) | $ (0.39) | $ (0.39) | [1] | $ (0.34) | [1],[2] |
Weighted average number of shares used for computing: | |||||
Basic (in shares) | 95,008,518 | 93,767,005 | [1] | 77,668,404 | [1],[2] |
Diluted (in shares) | 95,008,518 | 93,767,005 | [1] | 77,668,404 | [1],[2] |
Basic earnings (loss) per ADS (in dollars per share) | $ (1.54) | $ (1.55) | [1] | $ (1.35) | [1],[2] |
Diluted earnings (loss) per ADS (in dollars per share) | $ (1.54) | $ (1.55) | [1] | $ (1.35) | [1],[2] |
Income tax expense (benefit) | |||||
Basis per ADS (in dollars per share) | 23,752,130 | 23,441,751 | [1] | 19,417,101 | [1],[2] |
Diluted per ADS (in dollars per share) | 23,752,130 | 23,441,751 | [1] | 19,417,101 | [1],[2] |
Product | |||||
Revenue: | |||||
Product revenue | $ 21,947 | $ 28,938 | [1] | $ 37,353 | [1],[2] |
Other revenue | |||||
Revenue: | |||||
Product revenue | $ 8,917 | $ 11,312 | [1] | $ 10,910 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Statement of comprehensive income [abstract] | |||||
Profit (Loss) for the year | $ (36,697) | $ (36,224) | [1] | $ (26,160) | [1],[2] |
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent years : | |||||
Net gain (loss) on cash flow hedge | 57 | (69) | 195 | ||
Exchange differences on translation of foreign operations | 49 | (53) | 212 | ||
Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent years | 106 | (122) | 407 | ||
Other comprehensive income (loss) not to be reclassified to profit or loss in subsequent years : | |||||
Re-measurement gains (losses) on defined benefit plans | (108) | (47) | (46) | ||
Net other comprehensive income (loss) not to be reclassified to profit or loss in subsequent years | (108) | (47) | (46) | ||
Total other comprehensive income (loss) | (2) | (169) | 361 | ||
Total comprehensive income (loss) | (36,699) | (36,393) | (25,799) | ||
Attributable to: | |||||
Shareholders of the parent | (36,699) | (36,393) | (25,799) | ||
Non-controlling interests | $ 0 | $ 0 | $ 0 | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position € in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Non-current assets: | |||||
Property, plant and equipment | $ 8,858,000 | $ 6,271,000 | [1] | $ 6,992,000 | [1],[2] |
Intangible assets | 16,696,000 | 12,409,000 | [1] | 9,562,000 | [1],[2] |
Deposits and other receivables | 401,000 | 394,000 | [1] | 402,000 | [1],[2] |
Other non-current financial assets | 335,000 | 337,000 | [1] | 353,000 | [1],[2] |
Total non-current assets | 26,290,000 | 19,411,000 | [1] | 17,309,000 | [1],[2] |
Current assets: | |||||
Inventories | 6,664,000 | 8,243,000 | [1] | 7,376,000 | [1],[2] |
Trade receivables | 8,390,000 | 13,177,000 | [1] | 17,814,000 | [1],[2] |
Current contract assets | 1,587,000 | 2,707,000 | [1] | 3,112,000 | [1],[2] |
Prepaid expenses and other receivables | 2,556,000 | 3,237,000 | [1] | 4,214,000 | [1],[2] |
Recoverable value added tax | 598,000 | 565,000 | [1] | 688,000 | [1],[2] |
Research tax credit receivable | 3,132,000 | 3,148,000 | [1] | 3,248,000 | [1],[2] |
Deposit | 0 | 0 | [1] | 347,000 | [1],[2] |
Cash and cash equivalents | 14,098,000 | 12,086,000 | [1],[3] | 2,948,000 | [1],[2],[3],[4] |
Total current assets | 37,025,000 | 43,163,000 | [1] | 39,747,000 | [1],[2] |
Total assets | 63,315,000 | 62,574,000 | [1] | 57,056,000 | [1],[2] |
Equity (deficit): | |||||
Issued capital, euro 0.02 nominal value, 95,587,146 shares issued and outstanding at December 31, 2019 (94,732,539 and 80,024,7078 at December 31, 2018 and 2017, respectively)(3) | 2,403,000 | 2,384,000 | [1] | 2,031,000 | [1],[2] |
Share premium | 233,720,000 | 225,470,000 | [1] | 204,952,000 | [1],[2] |
Other capital reserves | 43,656,000 | 39,768,000 | [1] | 33,313,000 | [1],[2] |
Accumulated deficit | (308,733,000) | (272,036,000) | [1] | (235,712,000) | [1],[2] |
Other components of equity | (607,000) | (605,000) | [1] | (436,000) | [1],[2] |
Total equity (deficit) | (29,561,000) | (5,019,000) | [1] | 4,148,000 | [1],[2] |
Non-current liabilities: | |||||
Government grant advances and loans | 6,150,000 | 5,674,000 | [1] | 5,030,000 | [1],[2] |
Non-current debt instruments issued | 7,071,000 | 11,811,000 | [1] | 0 | [1],[2] |
Non-current | 3,204,000 | 0 | [1] | 0 | [1],[2] |
Provisions | 1,905,000 | 1,689,000 | [1] | 1,532,000 | [1],[2] |
Non-current trade payables | 1,139,000 | 0 | [1] | 0 | [1],[2] |
Deferred tax liabilities | 429,000 | 691,000 | [1] | 52,000 | [1],[2] |
Non-current contract liabilities | 11,572,000 | 808,000 | [1] | 1,293,000 | [1],[2] |
Total non-current liabilities | 54,812,000 | 40,396,000 | [1] | 24,970,000 | [1],[2] |
Current liabilities: | |||||
Trade payables | 8,834,000 | 9,412,000 | [1] | 13,023,000 | [1],[2] |
Venture debt | 5,109,000 | 823,000 | [1] | 0 | [1],[2] |
Current lease liabilities | 900,000 | 0 | [1] | 0 | [1],[2] |
Government grant advances and loans | 1,472,000 | 688,000 | [1] | 1,592,000 | [1],[2] |
Other current liabilities | 4,540,000 | 4,654,000 | [1] | 5,138,000 | [1],[2] |
Contract liabilities | 5,812,000 | 973,000 | [1] | 740,000 | [1],[2] |
Provisions | 0 | 352,000 | [1] | 32,000 | [1],[2] |
Total current liabilities | 38,064,000 | 27,197,000 | [1] | 27,938,000 | [1],[2] |
Total equity and liabilities | 63,315,000 | 62,574,000 | [1] | 57,056,000 | [1],[2] |
Previously stated | |||||
Equity (deficit): | |||||
Total equity (deficit) | (5,019,000) | 4,148,000 | |||
Interest-bearing receivables financing | |||||
Current liabilities: | |||||
Interest-bearing financing of receivables | 4,068,000 | 10,295,000 | [1] | 7,413,000 | [1],[2] |
Convertible debt and accrued interest | |||||
Non-current liabilities: | |||||
Convertible debt and accrued interest | 23,342,000 | 19,723,000 | [1] | 17,063,000 | [1],[2] |
Current liabilities: | |||||
Interest-bearing financing of receivables | $ 7,329,000 | $ 0 | [1] | $ 0 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||
[3] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[4] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - € / shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of financial position [abstract] | ||||
Nominal value (euro per share) | € 0.02 | € 0.02 | € 0.02 | |
Shares issued (in shares) | 95,587,146 | 94,732,539 | 80,024,707 | 75,030,078 |
Shares outstanding (in shares) | 94,732,539 | 80,024,707 | 75,030,078 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Deficit) Statement - USD ($) $ in Thousands | Total | Ordinary shares | Share premium | Other capital reserves | Accumulated deficit | Cumulative translation adjustments | Accumulated other comprehensive income (loss) | |||
Beginning balance (in shares) at Dec. 31, 2016 | 75,030,078 | 75,030,078 | [1] | |||||||
Beginning balance at Dec. 31, 2016 | $ 8,860 | $ 1,923 | [1] | $ 189,029 | $ 28,257 | $ (209,552) | $ (527) | $ (270) | ||
Loss for the year | (26,160) | [2],[3] | (26,160) | |||||||
Re-measurement gains (losses) on defined benefit plans | (46) | (46) | ||||||||
Foreign currency translation | 212 | 212 | ||||||||
Net gain (loss) on cash flow hedge | 195 | 195 | ||||||||
Total comprehensive income (loss) | (25,799) | (26,160) | 212 | 149 | ||||||
Issue of shares in connection with the exercise of options and warrants (in shares) | [1] | 618,871 | ||||||||
Increase (decrease) through exercise of options, equity | [1] | $ 10 | ||||||||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards | 966 | 956 | ||||||||
Transaction costs | (1,489) | 1,489 | ||||||||
Share-based payments | 1,638 | 1,638 | ||||||||
Issue of shares in connection with the public offering of September 2016 (Note 12) (in shares) | [1] | 4,312,500 | ||||||||
Warrants issued to a strategic partner in February 2019 (Note 12) | 16,387 | $ 96 | [1] | 16,291 | ||||||
Issuance of convertible debt (Note 14.1) | 3,418 | 3,418 | ||||||||
Conversion of convertible debt (in shares) | [1] | 63,258 | ||||||||
Conversion of convertible debt (Note 12) | 167 | $ 2 | [1] | 165 | ||||||
Deferred tax effect of debt instruments with equity components (Note 17) | $ 0 | |||||||||
Ending balance (in shares) (Previously stated) at Dec. 31, 2017 | [1] | 80,024,707 | ||||||||
Ending balance (in shares) (Currently stated) at Dec. 31, 2017 | [1] | 80,024,707 | ||||||||
Ending balance (in shares) at Dec. 31, 2017 | 80,024,707 | |||||||||
Ending balance (Previously stated) at Dec. 31, 2017 | $ 4,148 | $ 2,031 | [1] | 204,952 | 33,313 | (235,712) | (315) | (121) | ||
Ending balance (Effect of adoption of new accounting standard - IFRS 15) at Dec. 31, 2017 | [4] | (100) | ||||||||
Ending balance (Currently stated) at Dec. 31, 2017 | 4,048 | $ 2,031 | [1] | 204,952 | 33,313 | (235,812) | (315) | (121) | ||
Ending balance at Dec. 31, 2017 | [5],[6] | 4,148 | ||||||||
Loss for the year | (36,224) | [3] | (36,224) | |||||||
Re-measurement gains (losses) on defined benefit plans | (47) | (47) | ||||||||
Foreign currency translation | (53) | (53) | ||||||||
Net gain (loss) on cash flow hedge | (69) | (69) | ||||||||
Total comprehensive income (loss) | (36,393) | (36,224) | (53) | (116) | ||||||
Issue of shares in connection with the exercise of options and warrants (in shares) | [1] | 332,832 | ||||||||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards | 30 | $ 0 | [1] | 30 | ||||||
Transaction costs | (2,160) | (2,160) | ||||||||
Share-based payments | 1,812 | 1,812 | ||||||||
Issue of shares in connection with the public offering of September 2016 (Note 12) (in shares) | [1] | 14,375,000 | ||||||||
Warrants issued to a strategic partner in February 2019 (Note 12) | 23,001 | $ 353 | [1] | 22,648 | ||||||
Issuance of convertible debt (Note 14.1) | 1,346 | 1,346 | ||||||||
Convertible debt amendments (Note 14.1) | 4,296 | 4,296 | ||||||||
Warrants attached with the venture debt (Note 14.2) | 819 | 819 | ||||||||
Deferred tax effect of debt instruments with equity components (Note 17) | $ (1,818) | (1,818) | ||||||||
Ending balance (in shares) at Dec. 31, 2018 | 94,732,539 | 94,732,539 | [1] | |||||||
Ending balance (Previously stated) at Dec. 31, 2018 | $ (5,019) | (272,036) | ||||||||
Ending balance at Dec. 31, 2018 | (5,019) | [5] | $ 2,384 | [1] | 225,470 | 39,768 | (368) | (237) | ||
Loss for the year | (36,697) | (36,697) | ||||||||
Re-measurement gains (losses) on defined benefit plans | (108) | (108) | ||||||||
Foreign currency translation | 49 | 49 | ||||||||
Net gain (loss) on cash flow hedge | 57 | 57 | ||||||||
Total comprehensive income (loss) | (36,699) | (36,697) | 49 | (51) | ||||||
Issue of shares in connection with the exercise of options and warrants (in shares) | [1] | 854,607 | ||||||||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards | 0 | $ 19 | [1] | (19) | ||||||
Transaction costs | (91) | (91) | ||||||||
Share-based payments | 1,797 | 1,797 | ||||||||
Issue of shares in connection with the public offering of September 2016 (Note 12) (in shares) | [1] | |||||||||
Warrants issued to a strategic partner in February 2019 (Note 12) | 8,360 | [1] | 8,360 | |||||||
Issuance of convertible debt (Note 14.1) | 2,864 | |||||||||
Conversion of convertible debt (Note 12) | 2,864 | |||||||||
Deferred tax effect of debt instruments with equity components (Note 17) | (773) | (773) | ||||||||
Ending balance (in shares) at Dec. 31, 2019 | [1] | 95,587,146 | ||||||||
Ending balance at Dec. 31, 2019 | $ (29,561) | $ 2,403 | [1] | $ 233,720 | $ 43,656 | $ (308,733) | $ (319) | $ (288) | ||
[1] | On November 29, 2019, the Company adjusted the ratio of shares to ADS : each ADS represents 4 ordinary shares | |||||||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | |||||||||
[3] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||||
[4] | In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated.; rather, the impact is reflected as an adjustment to the opening equity at the date of adoption. | |||||||||
[5] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||||
[6] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Statements of Cash Flow
Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||
Operating activities: | |||||||
Profit (Loss) before income taxes | $ (37,480) | $ (37,192) | [1] | $ (25,860) | [1],[2] | ||
Non-cash adjustment to reconcile profit (loss) before tax to net cash used in operating activities: | |||||||
Amortization and impairment of property, plant and equipment | 4,126 | 3,060 | [3] | 2,760 | [3],[4] | ||
Amortization and impairment of intangible assets | 4,279 | 3,103 | [3] | 2,815 | [3],[4] | ||
Share-based payment expense | 1,797 | 1,812 | [3] | 1,638 | [3],[4] | ||
Increase (Decrease) in provisions | (244) | 431 | [3] | 165 | [3],[4] | ||
Interest expense, net | 9,593 | 5,376 | [3] | 4,612 | [3],[4] | ||
Convertible debt amendments | 0 | 265 | [3] | 322 | [3],[4] | ||
Other financial expenses | 0 | 400 | [3] | 0 | [3],[4] | ||
Foreign exchange loss (gain) | (420) | (497) | [3] | 561 | [3],[4] | ||
Loss on disposal of property, plant and equipment | (22) | 13 | [3] | 0 | [3],[4] | ||
Bad debt expense | 515 | 1,782 | [3] | 183 | [3],[4] | ||
Working capital adjustments: | |||||||
Decrease (Increase) in trade receivables and other receivables | 6,546 | 4,003 | [3] | (7,267) | [3],[4] | ||
Decrease (Increase) in inventories | 1,579 | (867) | [3] | 1,317 | [3],[4] | ||
Decrease (Increase) in research tax credit receivable | 622 | 559 | [3] | (1,087) | [3],[4] | ||
Decrease in trade payables and other liabilities | (705) | (3,899) | [3] | (5,939) | [3],[4] | ||
Increase (Decrease) in contract liabilities | 14,984 | (252) | [3] | (242) | [3],[4] | ||
Increase (Decrease) in government grant advances | 288 | (857) | [3] | (2,271) | [3],[4] | ||
Income tax paid | (365) | (78) | [3] | (333) | [3],[4] | ||
Net cash flow from (used in) operating activities | 5,093 | (22,838) | [3] | (28,626) | [3],[4] | ||
Investing activities: | |||||||
Purchase of intangible assets and property, plant and equipment | (3,520) | (5,373) | [3] | (4,232) | [3],[4] | ||
Capitalized development expenditures | (5,626) | (3,835) | [3] | (2,190) | [3],[4] | ||
Sale (Purchase) of financial assets | (5) | 24 | [3] | (113) | [3],[4] | ||
Decrease (Increase) of short-term deposit | 0 | 347 | [3] | (2) | [3],[4] | ||
Interest received | 50 | 71 | [3] | 60 | [3],[4] | ||
Net cash flow used in investments activities | (9,101) | (8,766) | [3] | (6,477) | [3],[4] | ||
Financing activities: | |||||||
Public equity offering proceeds, net of transaction costs paid | 0 | 20,841 | [3] | 14,898 | [3],[4] | ||
Proceeds from issue of warrants to a strategic partner, net of transaction costs paid | 8,269 | 0 | [3] | 0 | [3],[4] | ||
Proceeds from issue of warrants and exercise of stock options/warrants granted under share-based payment plans, net of transaction costs | 0 | 30 | [3] | 966 | [3],[4] | ||
Proceeds from (repayment of) interest-bearing receivables financing | (6,227) | 2,882 | [3] | (299) | [3],[4] | ||
Proceeds from interest-bearing research project financing | 1,126 | 1,574 | [3] | 2,716 | [3],[4] | ||
Proceeds from issuance of venture debt, net of transaction cost | 0 | 13,595 | [3] | 0 | [3],[4] | ||
Proceeds from convertible debt, net of transaction cost | 7,967 | 4,388 | [3] | 0 | [3],[4] | ||
Repayment of venture debt | (801) | 0 | [3] | 0 | [3],[4] | ||
Repayment of government loans | (447) | (589) | [3] | (116) | [3],[4] | ||
Repayment of convertible debt and accrued expenses | 0 | (1,186) | [3] | 0 | [3],[4] | ||
Repayment of interest-bearing research project financing | (168) | 0 | [3] | 0 | [3],[4] | ||
Payment of lease liabilities | (1,299) | 0 | [3] | 0 | [3],[4] | ||
Interest paid | (2,401) | (791) | [3] | (327) | [3],[4] | ||
Net cash flows from financing activities | 6,019 | 40,744 | [3] | 17,838 | [3],[4] | ||
Net increase (decrease) in cash and cash equivalents | 2,011 | 9,140 | [3] | (17,265) | [3],[4] | ||
Net foreign exchange difference | 1 | (2) | [3] | 11 | [3],[4] | ||
Cash and cash equivalents at January 1 | [3] | 12,086 | [5] | 2,948 | [4],[5],[6] | 20,202 | [4] |
Cash and cash equivalents at period end | $ 14,098 | $ 12,086 | [3],[5] | $ 2,948 | [3],[4],[5],[6] | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||
[3] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[4] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||
[5] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[6] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Corporate information | Corporate information Sequans Communications S.A. (“Sequans”) is organized as a limited liability company (“ société anonyme ”) incorporated and domiciled in the Republic of France, with its principal place of business at 15-55 boulevard Charles de Gaulle, 92700 Colombes, France. Sequans, together with its subsidiaries (the “Company”), is a fabless designer, developer and provider of cellular semiconductor chips and modules for Massive, Broadband and Critical Internet of Things (IoT) markets . The Company’s semiconductor solutions incorporate baseband processor and radio frequency transceiver integrated circuits along with its proprietary signal processing techniques, algorithms and software stacks. For 5G/4G Massive IoT applications, the Company provides a comprehensive product portfolio based on its Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms, featuring low power consumption, a large set of integrated functionalities, and a global deployment capability. For 5G/4G Broadband and Critical IoT applications, the Company offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 and high-end Taurus 5G chip platforms, optimized for low-cost residential, enterprise, and industrial applications. |
Summary of significant accounti
Summary of significant accounting and reporting policies | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Summary of significant accounting and reporting policies | Summary of significant accounting and reporting policies Basis of preparation The Consolidated Financial Statements are presented in U.S. dollars. These Consolidated Financial Statements for the year ended December 31, 2019 have been prepared on a going concern assumption. During 2017, 2018 and 2019, we financed our operations primarily through proceeds from the issue of shares through public offerings (2017, $14.9 million ; 2018, $20.8 million ), convertible notes (2018, $4.4 million ; 2019, $8.0 million ), venture debt (2018, $13.6 million ) and warrants to a strategic partner (2019, $8.3 million ). We experienced net losses of $26.2 million , $36.2 million and $36.7 million in 2017, 2018 and 2019, respectively. At December 31, 2019, our accumulated deficit was $308.7 million and we had a working capital deficiency of $ 1.0 million. We expect to continue to incur significant expense related to the development of our 4G and 5G products and expansion of our business, including research and development and sales and administrative expenses. In addition, we will incur expense to meet our commitments to our customers under various purchase orders and contracts. The Company will be required to obtain significant additional financing to meet these cash flow needs. The Company’s internal cash forecast which is built from sales forecasts by products and by customer, assumes a stable operating cost structure, assumes ongoing and new government funding of research programs and assumes new funding activities. The forecasted cash flow does not take into consideration any repayment of advance payments that could be required upon termination of a license and development services contract if certain key milestones (including financing requirements) are not delivered or met by September 30, 2020 (see Note 19). The Company expects to be able to obtain additional funding through one or more possible license agreements, business partnerships or other similar arrangements; or from financing from institutional or strategic investors, from the capital markets, from debt financing, or a combination of the above. However, the Company cannot guarantee if or when any such transactions will occur or whether they will be on satisfactory terms. Furthermore, the effects of COVID-19 coronavirus pandemic might have a negative impact on the production of the Company's products in affected regions or on the demand for the Company's products by customers whose supply chain or end demand are negatively affected by COVID-19, and as a result could affect the Company’s financial condition. The effects of COVID-19 also have and may continue to have a prolonged negative impact on the capital markets globally which could in turn negatively impact the ability of the Company to raise funds to meet its financial needs in the next twelve months and beyond. While the Company has taken and will continue to take actions to obtain new funding, the above factors raise substantial doubt about the Company’s ability to continue as a going concern as there is no assurance that the Company will be successful in satisfying its future cash needs. Statement of compliance The Consolidated Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”) and whose application is mandatory for the year ended December 31, 2019 . Comparative figures are presented for December 31, 2017 and 2018 . The accounting policies are consistent with those of the same period of the previous financial year, except for the changes disclosed in Note 2.2 to the Consolidated Financial Statements. The Consolidated Financial Statements of the Company for the years ended December 31, 2017 , 2018 and 2019 have been authorized for issue in accordance with a resolution of the board of directors on March 23, 2020 . Basis of consolidation The Consolidated Financial Statements comprise the financial statements of Sequans Communications S.A., which is the ultimate parent of the group, and its subsidiaries as of and for the years ended December 31, 2019 , 2018 and 2017 : Name Country of incorporation Year of incorporation % equity interest Sequans Communications Ltd. United Kingdom 2005 100 Sequans Communications Inc. United States 2008 100 Sequans Communications Ltd. Pte. Singapore 2008 100 Sequans Communications Israel (2009) Ltd. Israel 2010 100 The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions are eliminated in full. The subsidiaries have been fully consolidated from their date of incorporation. Changes in accounting policy and disclosures New and amended standards and interpretations The accounting policies used in 2019 are consistent with those of the previous financial year, except for the following new and amended IFRS and IFRIC interpretations effective as of January 1, 2019 : • IFRS 16 - Leases Since January 1, 2019, the Company has applied IFRS 16 Leases which aligns the accounting treatment of operating leases of lessees with that already applied to finance leases (i.e. recognition in the balance sheet of a liability for future lease payments, and of an asset for the associated rights of use). Application of IFRS 16 requires a change in the presentation of lease expenses both in the income statement (lease expenses are presented as depreciation expense and interest expense) and in the statement of cash flows (the lease payments are reported as a cash outflow from financing activities). In accordance with the transition options of IFRS 16 elected by the Company, the Consolidated Financial Statements for the years ended December 31, 2018 and 2017 have not been restated since Sequans has applied the modified retrospective transition method. Under the modified retrospective transition method, the Company recognized a lease liability at January 1, 2019 for leases previously classified as operating leases applying IAS 17 and IFRIC 4 and measured lease liabilities at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate at the date of initial application. The Company also recognized a corresponding right-of-use asset at January 1, 2019. The Company uses the two capitalization exemptions provided by the standard: • lease contracts with a duration of less than 12 months; and • lease contracts for which the underlying asset has a low value, which has been defined by the Company to be below $5,000. The Company has also applied the following practical expedients at the transition date: • accounting for leases for which the lease term ends within 12 months of the date of initial application as short-term leases. Lease payments under such short-term leases are accounted for as operating expenses in the Consolidated Statement of Operations. • no reassessment of whether a contract is, or contains, a lease at the date of initial application. As of January 1, 2019, the Company recognized a right-of-use asset equal to the amount of the lease liability. The weighted-average incremental borrowing rate used by the Company for lease liabilities recorded as of January 1, 2019 was 14.2% . Due to the adoption of IFRS 16, the Company’s operating results improved, while interest expense increased due to the change in the accounting for expenses of leases that were classified as operating leases under IAS 17. The numerical impacts of the adoption are detailed under Note 14. The lease liability as at January 1, 2019 can be reconciled to the operating lease commitments as of December 31, 2018, as follows : (in thousands) Operating lease commitments as at December 31, 2018 $ 2,058 Weighted-average discount rate as at January 1, 2019 14.2 % Discounted operating lease commitments as at January 1, 2019 1,951 Add: Lease payments relating to renewal periods not included in operating lease commitments as at December 31, 2018 2,352 Non lease components 318 Other 2 Lease liabilities as at January 1, 2019 4,623 For the year ended December 31, 2019, rental charges (previously recorded under Operating expenses) were accounted for as follows: • Depreciation of right-of-use assets recognized in "Property, plant and equipment" resulted in Operating expenses of $1,354,000 . • Interest expense on lease liabilities was recorded in Finance costs for $622,000 . • IFRIC 23 Uncertainty over Income Tax Treatments This Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. The interpretation is applied by the Company from January 1, 2019. In accordance with IFRIC 23, the Company determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments and records a liability when it is probable that a tax expense will be incurred, assuming that the tax position will be examined by the tax authorities. Such liability is measured using the approach that better predicts the resolution of the uncertainty. Adoption of this interpretation had no impact on the Consolidated Financial Statements. • Amendments to IFRS 9: Prepayments with negative compensation features The amendments clarify how to classify particular pre-payable financial assets and how to account for financial liabilities following a modification. These amendments were effective as of January 1, 2019. Adoption of these amendments had no impact on the Consolidated Financial Statements. • A mendments to IAS 28: Investments in associates and joint ventures which was effective as of January 1, 2019 had no impact on the Consolidated Financial Statements. • Annual Improvements to IFRS (2015-2017), including amendments to IFRS 3: Business Combinations, amendments to IAS 12 : Income Taxes, and amendments to IAS 23 : Borrowing Costs, are applicable from annual periods commencing on or after January 1, 2019. Adoption of these improvements had no impact on the Consolidated Financial Statements. Standards issued but not yet effective Standards and interpretations issued but not yet effective up to the date of issue of the Company’s Consolidated Financial Statements are listed below. The Company intends to adopt these standards when they become effective: • Amendments to IFRS 7, IFRS 9, IAS 39 : The amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark with an alternative nearly risk-free interest rate (an RFR). The amendments will be effective for annual periods beginning on or after 1 January 2020. The Company does not expect that these amendments will have a material impact on the Consolidated Financial Statements. • Amendments to IFRS 3 : The amendments include a revised definition of at business. The amendments will be effective for annual periods beginning on or after 1 January 2020. The Company is currently assessing the impact of these amendments. Summary of significant accounting policies Functional currencies and translation of financial statements denominated in currencies other than the U.S. dollar The Consolidated Financial Statements are presented in U.S. dollars, which is also the functional currency of Sequans Communications S.A. The Company uses the U.S. dollar as its functional currency due to the high percentage of revenues, cost of revenue, capital expenditures and operating costs, other than those related to headcount and overhead, which are denominated in U.S. dollars. Each subsidiary determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. As at the reporting date, the assets and liabilities of each subsidiary are translated into the presentation currency of the Company (the U.S. dollar) at the rate of exchange in effect at the Statement of Financial Position date and their Statement of Operations is translated at the weighted average exchange rate for the reporting period. The exchange differences arising on the translation are taken directly to a separate component of equity (“Cumulative translation adjustments”). Foreign currency transactions Foreign currency transactions are initially recognized by Sequans Communications S.A. and each of its subsidiaries at their respective functional currency rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of exchange in effect at the reporting date. All differences are taken to the Consolidated Statement of Operations within financial income or expense. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial transactions. The table below sets forth, for the periods and dates indicated, the average and closing exchange rate for the U.S. dollar (USD) to the euro (EUR), the U.K. pound sterling (GBP), the Singapore dollar (SGD) and the New Israeli shekel (NIS): USD/EUR USD/GBP USD/SGD USD/NIS December 31, 2017 Average rate 1.1293 1.2885 0.7244 0.2780 Closing rate 1.1993 1.3518 0.7484 0.2880 December 31, 2018 Average rate 1.1815 1.3356 0.7416 0.2782 Closing rate 1.1450 1.2800 0.7344 0.2665 December 31, 2019 Average rate 1.1196 1.2758 0.7331 0.2806 Closing rate 1.1234 1.3204 0.7434 0.2892 Earnings (loss) per ordinary share and per ADS Basic earnings (loss) amounts per ordinary share and per ADS are computed using the weighted average number of shares outstanding during each period. Diluted earnings per ordinary share and per ADS include the effects of dilutive options and warrants as if they had been exercised, unless the effect would be anti-dilutive. They have been retrospectively adjusted to give effect to the ADS ratio change of November 29, 2019 following which each ADS represents 4 ordinary shares. Revenue recognition The Company’s total revenue consists of product revenue and other revenue. Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the fair value of the consideration to which the Company is entitled, excluding sales taxes or duties. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. When a contract includes multiple promised goods and services, the Company evaluates each component to determine whether they represent separate performance obligations and determines the appropriate allocation of the contract consideration to each identified performance obligation based on estimated relative stand-alone selling prices. If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Specifically, milestone payments in development services contracts represent variable consideration, the receipt of which is dependent upon the achievement of technical milestones. The Company sometimes receives advance payments from customers for the provision of development services. The Company determines if there is a significant financing component for these contracts considering the length of time between the customers’ payment and the transfer of control of the goods and services. When a significant financing component has been identified, the transaction price for these contracts is discounted, using the rate that would be reflected in a separate financing transaction at contract inception. The Company applies the practical expedient for short-term advances received from customers. That is, the promised amount of consideration is not adjusted for the effects of a significant financing component if the period between the transfer of the promised good or service and the payment is one year or less. Product revenue Substantially all of the Company’s product revenue is derived from the sale of semiconductor solutions for 4G wireless applications. Revenue from the sale of products is recognized at a point in time when the Company satisfies its performance obligation to the buyer, whether direct end customer, end customer's manufacturing partner or distributor. This occurs when there is no continuing managerial involvement to the degree usually associated with ownership nor effective control over the sale of products is retained, which is based on the specified Incoterms, but usually occurs on shipment of the goods. The Company is the principal in all product sales regardless of customer type. Products are not sold with a right of return but are covered by warranty. This is an assurance-type warranty. The Company does not accrue for a general warranty obligation as the Company has not historically incurred and does not expect material costs. Although the products sold have embedded software, the Company believes that software is incidental to the products it sells. Other revenue Other revenue consists of the sale of licenses to use the Company’s technology solutions and fees for the associated annual software maintenance and support services, as well as the sale of technical support and development services. Development services include advanced technology development services for technology partners and product development and integration services for customers. Revenue from the sale of licenses is recognized at a point in time when the Company satisfies its performance obligation which occurs when the software has been delivered to the customer (assuming no other significant obligations exist), as licenses provide the right to use the software as it exists when made available to the customer. Revenue from the sale of software maintenance and support services is recognized over time, over the period of the maintenance (generally one year). When the first year of maintenance is included in the software license price, an amount generally equal to the negotiated rate for one year of maintenance is deducted from the value of the license and recognized as revenue over time, over the period of maintenance as described above. The difference between license and maintenance services invoiced and the amount recognized in revenue is recorded as deferred revenue. Revenue from technical support and development services is generally recognized over time using the percentage-of-completion method. For each service contract, the Company determines whether the pattern of transfer of control meets one of the criteria for revenue recognition over time: (a) the customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs (b) the Company's performance creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced or (c) the Company's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Generally, the support and development contracts meet one or more of these criteria, based on the facts and circumstances both within the contract and the nature of the services provided. Typically, the customers consume the services as they are provided through ongoing technical support or through an iterative development process. Certain contracts also include terms which allow the customer to have control over the asset as it is created or provide Sequans the right to payment for all work performed to date. Due to revenue recognition over time, contract assets are created for services provided that Sequans does not yet have the right to invoice. When a contract does not meet one of the criteria above, revenue is recognized at a point in time, when there is evidence of transfer of control, which typically occurs upon achievement of certain or all contract milestones. Percentage-of-completion is calculated based on the input method using estimated costs as a measure of performance completed. The costs associated with these arrangements are recognized as incurred. Revenue from development contracts where no related direct costs were identified amounted to $1,724,000 for the year ended December 31, 2019 ( $389,000 in 2018 and $1,321,000 in 2017 ). Contract assets A contract asset is the right to consideration in exchange for goods or services transferred to the customer. As described above, when the Company performs by transferring goods or services before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. Where the Company has an unconditional right to payment, these are included in unbilled revenue until billing occurs and classified as trade receivables. Although not required under the modified retrospective approach, we reclassified prior year amounts to conform with the IFRS 15 presentation: we reclassified $3.1 million of contract assets out of trade receivables for the year ended 2017. There were no other differences between the amounts recognized in the years ended 2018 and 2019 on the financial statements and amounts that would have been recognized under previous revenue recognition standards. We have elected to use the practical expedient not to adjust the promised amount of consideration for the effects of a significant financing component when the period between when we transfer the promised good or service to our customers and when we expect the customers to pay for that good or service is one year or less. We have elected to use the practical expedient not to disclose information about our remaining performance obligations for contracts that have an original expected duration of one year or less. We do not have any costs that meet the criteria for costs to obtain a contract or cost to fulfill a contract. As of December 31, 2019, the transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) was $3,959,000 for which $2,405,000 is expected to be recognized in the next year and $1,554,000 in the years after, excluding the amounts related to the development service contract entered into in October 2019, described under note 18. As of December 31, 2018, the transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) was $936,000 for which $919,000 was expected to be recognized in the next year and $17,000 in the year after. Contract liabilities Contract liabilities represent amounts invoiced and/or cash received in advance related to services being performed. Revenue recognized in the current period from amounts included in deferred revenue at the beginning of the year was $988,000 , $740,000 and $497,000 for 2019 , 2018 and 2017 , respectively (See Note 19 Other non-current liabilities and Note 18 trade payables and other current liabilities). Cost of revenue Cost of product revenue includes all direct and indirect costs incurred with the sale of products, including shipping and handling. Cost of other revenue includes direct costs incurred to support the obligations covered by development services contracts (mainly employees and subcontractors costs). Research and development costs associated with product development (including normal customer support which generates product improvement) are recorded in research and development expenses. Research and development costs Research costs are expensed as incurred. Development costs are recognized as an intangible asset if the Company can demonstrate: • the technical feasibility of completing the intangible asset so that it will be available for use or sale; • its intention to complete the asset and use or sell it; • its ability to use or sell the asset; • how the asset will generate future economic benefits; • the availability of adequate resources to complete the development and to use or sell the asset; and • the ability to measure reliably the expenditure during development. The asset is tested for impairment annually. Development costs that meet the criteria for capitalization have been recorded as intangible assets. (See Notes 4.4 and 8 to the Consolidated Financial Statements). Beginning in 2015, certain development costs incurred at the end of the product development cycle when the criteria for capitalization are met, became material as the Company began making its product available on more operator networks which require significant testing and qualification work in order to finalize the product for sale on that network. Beginning in 2017, the Company capitalized costs related to the development of the chipsets for LTE Category M, in 2018 the Company capitalized costs for the development of the Monarch and Monarch 2 and in 2019 the Company also capitalized costs for the development of Calliope 2, a solution based on a new LTE category called Category 1 Half Duplex. Research and development costs associated with product development (including normal customer support which generates product improvements) are recorded in operating expense. In some cases, the Company has negotiated agreements with customers and partners whereby the Company provides certain development services beyond its normal practices or planned product roadmap. Amounts received from these agreements are recorded in other revenue. Direct costs incurred by the Company as a result of the commitments in the agreements are recorded in cost of other revenue. Other research and development costs related to the projects covered by the agreements, but which would have been incurred by the Company without the existence of such agreements are recorded in research and development expense. Government grants, loans and research tax credits The Company operates in certain jurisdictions which offer government grants or other incentives based on the qualifying research expense incurred or to be incurred in that jurisdiction. These incentives are recognized as the qualifying research expense is incurred if there is reasonable assurance that all related conditions will be complied with and the grant will be received. When the grant relates to an expense item, it is recognized as a reduction of the related expense over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Any cash received in advance of the expenses being incurred is recorded as a liability. Some long-term research projects are also financed through low-interest forgivable loans. The present value of forgivable loans is calculated based on expected future payments discounted using the interest rate applied for standard loans with the same maturity. The difference between present value and amount received is accounted for as a grant. Where loans or similar assistance provided by governments or related institutions are interest-free, the present value is calculated based on expected future payments discounted using the interest rate applied for standard loans with the same maturity. The difference between present value and amount received is accounted for as a grant. The Company also benefits from research incentives in the form of tax credits which are detailed in Note 4.4 to the Consolidated Financial Statements. When the incentive is available only as a reduction of taxes owed, such incentive is accounted for as a reduction of tax expense; otherwise, it is accounted for as a government grant with the benefit recorded as a reduction of research and development costs, whether capitalized or expensed. Financial income and expense Financial income and expense include: • interest expense related to venture debt, accounts receivable financing, the debt component of convertible debt and government loans, lease contracts, upfront payments, financing components of customer contracts and a supplier payable with extended payment terms; • other expenses paid to financial institutions for financing operations; • foreign exchange gains and losses • impact of convertible debt amendments; and • impact of convertible debt reimbursement. The Company reflects foreign exchange gains and losses related to hedges (through derivatives) of euro-based operating expenses in operating expenses. Taxation Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity. Deferred income tax Deferred income tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognized for all taxable temporary differences, except with respect to taxable temporary differences associated with investments in subsidiaries where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forwards of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at the reporting date and adjusted to the extent that it is probable that sufficient future taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date. Deferred income tax relating to items recognized directly in equity is recognized in equity. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right of offset exists. Value added tax Revenue, expenses and assets are recognized net of the amount of value added tax except: • where the value added tax incurred on a purchase of assets or services is not recoverable from the tax authorities, in which case the value added tax is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables that are stated with the amount of value added tax included. Value added tax recoverable consists of value added tax paid by the Company to vendors and suppliers located in the European Union and recoverable from the tax authorities. Value added tax recoverable is collected on a quarterly basis. Inventories Inventories consist primarily of the cost of semiconductors, including wafer fabrication, assembly, testing and packaging; components; and modules purchased from subcontractors. Inventories are valued at the lower of cost (determined using the weighted average cost method) or net realizable value (estimated market value less estimated cost of completion and the estimated costs necessary to make the sale). The Company writes down the carrying value of its inventories for estimated amounts related to the lower of cost or net realizable value, obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value. The estimated ne |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2019 | |
Operating segments [Abstract] | |
Segment information | Segment information and Disaggregated Revenue Disclosures The Company has one operating segment, which is the design and marketing of semiconductor components for cellular wireless systems. All information required to be disclosed under IFRS 8 Operating Segments is shown in the Consolidated Financial Statements and these associated Notes. Sales to external customers disclosed below are based on the geographical location of the customers. The following table sets forth the Company’s total revenue by region for the periods indicated. The Company categorizes its total revenue geographically based on the location to which it invoices. Year ended December 31, 2017 (1) 2018 2019 (in thousands) Asia : Taiwan $ 8,126 $ 16,704 $ 11,387 Korea 373 261 6,813 China (including Hong-Kong) 21,819 11,638 2,139 Rest of Asia 2,291 1,911 106 Total Asia 32,609 30,514 20,445 United States of America 11,282 7,042 9,221 Rest of world 4,372 2,694 1,198 Total revenue $ 48,263 $ 40,250 $ 30,864 (1) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. Of our total revenue, 99.8% is attributable to international sales for the year ended December 31, 2019 ( 99.6% for 2018 and 100% for 2017). The Company categorizes its total revenue based on technology. Year ended December 31, 2017 (1) 2018 2019 (in thousands) Broadband and Critical IoT $ 27,900 $ 11,657 $ 10,431 Massive IoT 11,568 19,679 12,816 Vertical 8,795 8,914 7,617 Total revenue $ 48,263 $ 40,250 $ 30,864 (1) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. Additionally, the Company categorize its total revenue based on product and other revenue. Year ended December 31, 2017 (1) 2018 2019 (in thousands) Product $ 37,353 $ 28,938 $ 21,947 License 2,838 2,707 2,578 Development and other services 8,072 8,605 6,339 Total revenue $ 48,263 $ 40,250 $ 30,864 (1) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. The substantial majority of the Company’s non-current assets are held by the parent company, Sequans Communications S.A. and located in France. See Note 20.3 to these Consolidated Financial Statements for information about major customers. |
Other revenues and expenses
Other revenues and expenses | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Other revenues and expenses | Other income and expenses Financial income and expenses Financial income: Year ended December 31, 2017 2018 2019 (in thousands) Income from short-term investments and term deposits and other finance revenue $ 60 $ 71 $ 50 Foreign exchange gain 2,027 1,774 2,116 Total financial income $ 2,087 $ 1,845 $ 2,166 Financial expenses: Year ended December 31, 2017 2018 2019 (in thousands) Interest on loans $ 4,153 $ 4,971 $ 7,864 Interest on lease contracts (see Note 15) — — 622 Interest on financing component of long term development services agreement (see note 18) — — 619 Interest on supplier payable with extended payment terms 213 — — Other bank fees and financial charges 306 476 538 Other financial expenses — 400 — Convertible debt amendments 322 265 — Foreign exchange loss 3,428 1,408 2,045 Total financial expenses $ 8,422 $ 7,520 $ 11,688 For the year ended December 31, 2019 , interest on loans included $7,732,000 related to convertible debts issued in 2019, 2018, 2016 and 2015, the venture debt issued in 2018 and government loans granted in 2015 ( $4,872,000 and $4,094,000 for the years ended December 31, 2018 and 2017 , respectively) and interest on an upfront payment related to a development services agreement. (See Notes 14.1 and 19 to the Consolidated Financial Statements). The net foreign exchange gain of $71,000 for the year ended December 31, 2019 (2018: net foreign exchange gain of $366,000 ; 2017: net foreign exchange loss $1,401,000 ) arises primarily from euro-based monetary liabilities. For the year ended December 31, 2018, net expense of $265,000 ( $322,000 for the year ended December 31, 2017) was recognized related to the convertible debt amendments and other financial expenses of $400,000 correspond to costs related to the early retirement of debt after the repayment (see Note 14.1 to the Consolidated Financial Statements). Cost of revenue and operating expenses The tables below present the cost of revenue and operating expenses by nature of expense : Year ended December 31, Note 2017 2018 2019 (in thousands) Included in cost of revenue: Cost of components $ 22,137 $ 19,058 $ 14,039 Depreciation and impairment 7 1,037 1,088 959 Amortization of intangible assets 8 157 158 159 Wages and benefits 2,233 2,368 1,780 Share-based payment expense 13 7 8 10 Assembly services, royalties and other 1,551 1,682 1,538 $ 27,122 $ 24,362 $ 18,485 Year ended December 31, Note 2017 2018 2019 (in thousands) Included in operating expenses (between gross profit and operating result): Depreciation and impairment 7 $ 1,723 $ 1,972 $ 3,167 Amortization of intangible assets 8 2,658 2,945 4,120 Wages and benefits 26,044 27,616 25,052 Share-based payment expense 13 1,631 1,804 1,787 Foreign exchange gains and losses related to hedges of euro 99 (27 ) 71 Other, net 8,511 13,095 6,140 $ 40,666 $ 47,405 $ 40,337 Employee benefits expense Year ended December 31, Note 2017 2018 2019 (in thousands) Wages and salaries $ 21,535 $ 22,501 $ 19,953 Social security costs and other payroll taxes 6,584 7,286 6,748 Other benefits 58 125 161 Pension costs 100 72 25 Share-based payment expenses 13 1,638 1,812 1,797 Total employee benefits expense $ 29,915 $ 31,796 $ 28,684 The amount recognized as an expense for defined contributions plans amounts to $1,254,000 for the year ended December 31, 2019 ( $1,230,000 and $1,369,000 for the years ended December 31, 2017 and 2018 , respectively). Research and development expense and tax credit receivable The research tax credit in France is deducted from corporate income taxes due; if taxes due are not sufficient to cover the full amount of the credit, the balance is received in cash three years later (one year later if the Company is below certain size criteria, which was the case for each of the years ended December 31, 2019, 2018 and 2017). Total research tax credit receivable as of December 31, 2019 is $2,860,000 , relating to tax credits receivables for 2019 , which are expected to be recovered in 2020 in cash. The Company also has research tax credits available in the United Kingdom. In the year ended December 31, 2017, 2018 and 2019, the Company capitalized costs related to the development of the chipsets for LTE Category M and NB-IoT (the Monarch, Monarch N, Monarch 2) and LTE Category 1, Calliope 2, and related to certification. The reduction of research and development expense from government grants, research tax credit and development costs capitalized was as follows: Year ended December 31, 2017 2018 2019 (in thousands) Research and development costs $ 33,318 $ 34,969 $ 31,113 Research tax credit (3,345 ) (3,027 ) (3,123 ) Government and other grants (3,072 ) (1,104 ) (247 ) Development costs capitalized (*) (1,931 ) (3,376 ) (5,020 ) Amortization of capitalized development costs 232 447 1,076 Total research and development expense $ 25,202 $ 27,909 $ 23,799 (*) Net of Research tax credit for $606,000 , $459,000 and $259,000 for the years ended December 31, 2019, 2018 and 2017, respectively. |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income tax | Income tax The major components of income tax expense are: Year ended December 31, 2017 2018 2019 (in thousands) Consolidated Statement of Operations Current income tax expense $ 273 $ 210 $ 251 Deferred income tax expense (benefit) 27 (1,178 ) (1,034 ) Income tax expense (benefit) reported in the Consolidated Statement of Operations $ 300 $ (968 ) $ (783 ) A reconciliation of income taxes computed at the French statutory rate ( 34.43% for the year ended December 31, 2017 and 28% for the years ended December 31, 2018 and 2019 ) to the income tax expense (benefit) is as follows: Year ended December 31, 2017 2018 2019 (in thousands) Profit (loss) before income taxes $ (25,860 ) $ (37,192 ) $ (37,480 ) At France’s statutory income tax rate of 28% (34.43% in 2017) (8,904 ) (10,269 ) (10,494 ) Non-deductible share-based payment expense 564 507 503 Tax credits (1,152 ) (848 ) (874 ) Permanent differences and other (329 ) (596 ) 39 Unrecognized benefit of tax losses carryforward 10,121 10,238 10,043 Income tax expense (income) reported in the Consolidated Statement of Operations $ 300 $ (968 ) $ (783 ) Significant components of the Company’s deferred tax assets and liabilities are as follows: Consolidated Statement of Financial Position Equity Consolidated Statement of Operations December 31, December 31, Year ended December 31, 2017 2018 2019 2017 2018 2019 2017 2018 2019 (in thousands) (in thousands) (in thousands) Government loan 46 47 46 — — — (1 ) — (1 ) Intangible assets 71 71 24 — — — (16 ) — (47 ) Lease contracts — — (8 ) — — — — — (8 ) Cash flow hedge 7 (1 ) (3 ) — — — 14 (8 ) (2 ) Remeasurement of non-monetary accounts (249 ) 99 (103 ) — — — (502 ) 348 (202 ) Convertible debts and venture debt - liability 798 2,053 1,901 — 1,818 773 798 (563 ) (925 ) Other provisions and accruals (22 ) (22 ) (310 ) — — — — — (288 ) From subsidiaries 52 35 19 — — — 30 (17 ) (16 ) Loss available for offsetting against future taxable income (651 ) (1,591 ) (1,137 ) — — — (296 ) (938 ) 455 Total $ 52 $ 691 $ 429 — $ 1,818 $ 773 $ 27 $ (1,178 ) $ (1,034 ) The changes in deferred tax assets and liabilities were as follows : 2017 2018 2019 (in thousands) At January 1st $ 22 $ 52 $ 691 Tax expense (income) during the year recognized in Profit or Loss 27 (1,178 ) (1,034 ) Tax expense during the year recognized in equity (1) — 1,818 773 Effect of foreign exchange 3 (1 ) (1 ) At December 31st $ 52 $ 691 $ 429 (1) Relates to the split accounting of the convertible debts and the venture debt issued with an equity component. As of December 31, 2019 the Company had accumulated tax losses which arose in France of $294,017,000 that are available for offset against future taxable profits of Sequans Communications S.A within a limit of one million euro per year, plus 50% of the profit exceeding this limit. Remaining unapplied losses would continue to be carried forward indefinitely. Deferred tax assets were recognized in 2017 , 2018 and 2019 only to the extent that deferred tax liabilities existed relating to the same taxable entity, which are expected to reverse in the same period as the asset or into which a tax loss may be carried forward. |
Earnings (loss) per share
Earnings (loss) per share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share and American Deposit Shares (ADS) amounts are calculated by dividing net income (loss) for the year attributable to all shareholders of the Company by the weighted average number of all shares or ADS outstanding during the year. Diluted earnings per share and ADS amounts are calculated by dividing the net earnings attributable to equity holders of the Company by the weighted average number of shares or ADS outstanding during the year plus the weighted average number of shares or ADS that would be issued on the exercise of all the dilutive stock options and warrants, and upon vesting of restricted stock awards as well as conversion of convertible debt. Dilution is defined as a reduction of earnings per share or ADS or an increase of loss per share or ADS. As the exercise of all outstanding stock options and warrants as well as vesting as restricted stock awards and conversion of convertible debt, would decrease loss per ordinary share or ADS, they are considered to be anti-dilutive and excluded from the calculation of loss per ordinary share or ADS. On November 29, 2019, the Company modified the ratio of shares per ADS from one share per ADS to four shares per ADS. Basic and diluted earnings (loss) per ADS presented below were retrospectively adjusted to give effect to the ADS ratio change of November 29, 2019 following which each ADS represents 4 ordinary shares. The following reflects the income and share data used in the basic and diluted earnings (loss) per ordinary share and ADS computations: Year ended December 31, 2017 2018 2019 (in thousands, except share and per share data) Profit (Loss) $ (26,160 ) $ (36,224 ) $ (36,697 ) Weighted average number of shares outstanding for basic EPS 77,668,404 93,767,005 95,008,518 Net effect of dilutive stock options — — — Net effect of dilutive warrants — — — Net effect of vesting of restricted stock — — — Net effect of conversion of convertible notes — — — Weighted average number of shares outstanding for diluted EPS 77,668,404 93,767,005 95,008,518 Basic earnings (loss) per share $ (0.34 ) $ (0.39 ) $ (0.39 ) Diluted earnings (loss) per share $ (0.34 ) $ (0.39 ) $ (0.39 ) ADS outstanding for basic and diluted earnings (loss) per ADS 19,417,101 23,441,751 23,752,130 Basic earnings (loss) per ADS $ (1.35 ) $ (1.55 ) $ (1.54 ) Diluted earnings (loss) per ADS $ (1.35 ) $ (1.55 ) $ (1.54 ) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment include: Leasehold improvements Plant and equipment IT and office equipment Right of use Total (in thousands) Cost: At January 1, 2017 $ 1,303 $ 27,150 $ 3,749 — $ 32,202 Additions 9 2,979 58 — 3,046 Disposals (87 ) (4,327 ) (81 ) — (4,495 ) Exchange difference 17 111 35 — 163 At December 31, 2017 1,242 25,913 3,761 — 30,916 Additions 34 2,248 80 — 2,362 Disposals (30 ) (70 ) (203 ) — (303 ) Reclassification 14 — (14 ) — — Exchange difference (7 ) (64 ) (16 ) — (87 ) At December 31, 2018 1,253 28,027 3,608 — 32,888 Effect of adoption of new accounting standard - IFRS 16 — — — 4,556 4,556 At January 1, 2019 1,253 28,027 3,608 4,556 37,444 Additions 15 1,274 30 847 2,166 Disposals — (130 ) (15 ) — (145 ) Exchange difference 3 32 11 — 46 At December 31, 2019 $ 1,271 $ 29,203 $ 3,634 $ 5,403 $ 39,511 Depreciation and impairment: At January 1, 2017 783 21,158 3,602 — 25,543 Depreciation charge for the year 226 2,405 129 — 2,760 Disposals (87 ) (4,327 ) (81 ) — (4,495 ) Reclassification 275 326 (601 ) — — Exchange difference 16 60 40 — 116 At December 31, 2017 1,213 19,622 3,089 — 23,924 Depreciation charge for the year 188 2,705 167 — 3,060 Disposals (18 ) (70 ) (203 ) — (291 ) Reclassification (418 ) — 418 — — Exchange difference (8 ) (55 ) (13 ) — (76 ) At December 31, 2018 957 22,202 3,458 — 26,617 Depreciation charge for the year 190 2,430 96 1,354 4,070 Impairment — 56 — — 56 Disposals — (120 ) (15 ) — (135 ) Exchange difference 4 30 11 — 45 At December 31, 2019 $ 1,151 $ 24,598 $ 3,550 1,354 $ 30,653 Net book value: At January 1, 2017 $ 520 $ 5,992 $ 147 — $ 6,659 At December 31, 2017 29 6,291 672 — 6,992 At December 31, 2018 296 5,825 150 — 6,271 At December 31, 2019 $ 120 $ 4,605 $ 84 4,049 $ 8,858 Right-of-use assets as of December 31, 2019 relate to real-estate leases ( $5,006,000 , gross) as well as IT and office equipment leases ( $397,000 , gross). |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Intangible assets | Intangible assets Intangible assets include: Capitalized development costs Licenses Total (in thousands) Cost: At January 1, 2017 $ 409 $ 17,706 $ 18,115 Additions 1,931 2,710 4,641 Disposals — (64 ) (64 ) Exchange difference — 23 23 At December 31, 2017 2,340 20,375 22,715 Additions 3,377 2,576 5,953 Disposals — (3,834 ) (3,834 ) Exchange difference — (13 ) (13 ) At December 31, 2018 5,717 19,104 24,821 Additions 5,020 3,752 8,772 Disposals — (2,045 ) (2,045 ) Exchange difference — 7 7 At December 31, 2019 $ 10,737 $ 20,818 $ 31,555 Depreciation and impairment: At January 1, 2017 — 10,408 10,408 Amortization 233 2,582 2,815 Disposals — (64 ) (64 ) Exchange difference — (6 ) (6 ) At December 31, 2017 233 12,920 13,153 Amortization 447 2,656 3,103 Disposals — (3,834 ) (3,834 ) Exchange difference — (10 ) (10 ) At December 31, 2018 680 11,732 12,412 Amortization 1,075 3,204 4,279 Disposals — (1,838 ) (1,838 ) Exchange difference — 6 6 At December 31, 2019 $ 1,755 $ 13,104 $ 14,859 Net book value: At January 1, 2017 409 $ 7,298 $ 7,707 At December 31, 2017 2,107 7,455 9,562 At December 31, 2018 5,037 7,372 12,409 At December 31, 2019 $ 8,982 $ 7,714 $ 16,696 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories | Inventories At December 31, 2017 2018 2019 (in thousands) Components $ 2,964 $ 4,242 $ 2,645 Finished goods 5,035 4,502 4,702 Total inventories at cost $ 7,999 $ 8,744 $ 7,347 Depreciation of components $ 30 $ — $ 2 Depreciation of finished goods 593 501 681 Total depreciation $ 623 $ 501 $ 683 Components, net $ 2,934 $ 4,242 $ 2,643 Finished goods, at the lower of cost and net realizable value 4,442 4,001 4,021 Total net inventories $ 7,376 $ 8,243 $ 6,664 In the year ended December 31, 2017, all the WiMAX inventory, fully depreciated in previous years, was physically scrapped, resulting in a provision reversal of $2,755,000 . The Company also depreciated the value of inventory for one LTE product for which units on hand were in excess of the units needed to serve the expected demand for identified customers and projects. This resulted in a provision of $199,000 . The Company further depreciated $265,000 in 2017 related to goods damaged during production over the course of the year (recovered from a manufacturing supplier in 2018 in line with the amounts recorded under Prepaid Expenses and Other Receivables as of December 31, 2017). In the year ended December 31, 2018, the goods damaged and depreciated in 2017 were physically scrapped resulting in a provision reversal of $265,000 . The remaining amount of $501,000 in depreciation is related to finished goods that have been damaged or units on hand in excess of the units needed to serve the expected demand for identified customers and projects. In the year ended December 31, 2019, the amount of $681,000 in depreciation is related to finished goods that have been damaged or units on hand in excess of the units needed to serve the expected demand for identified customers and projects. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade receivables | 120 days (in thousands) At December 31, 2017 $ 20,926 $ 12,746 $ 4,771 $ 1,036 $ 1,673 $ 700 At December 31, 2018 $ 15,884 $ 7,421 $ 5,155 $ 49 $ 471 $ 2,788 At December 31, 2019 $ 9,977 $ 6,265 $ 2,125 $ 130 $ 371 $ 1,086 The Company does not assign credit risk rating grades to its trade receivables, but assess credit risk at the customer level." id="sjs-B4">Trade receivables and contract assets Trade receivables and contract assets are non-interest bearing and generally have 30 - 90 day payment terms. At December 31, 2017 2018 2019 (in thousands) Trade receivables $ 18,754 $ 16,758 $ 11,957 Contract assets 3,112 2,707 1,587 Unbilled revenue 355 105 — Unissued credit notes (485 ) (1,094 ) (848 ) Provisions on trade receivables (810 ) (2,592 ) (2,719 ) Net trade receivables $ 20,926 $ 15,884 $ 9,977 In the years ended December 31, 2017, 2018 and 2019, the Company recorded unissued credit notes related to special customers programs such as rebates. The movements in the provision for impairment of receivables were as follows: December 31, 2017 2018 2019 (in thousands) At January 1, $ 628 $ 810 $ 2,592 Charge for the year 182 1,782 515 Utilized amounts $ — $ — $ (388 ) At year end $ 810 $ 2,592 $ 2,719 In the year ended December 31, 2018, the Company recognized a provision for impairment of $1,782,000 included in the Consolidated Statement of Operations in "General and administrative". In the year ended December 31, 2019, the Company impaired additional trade receivables for $515,000 . Trade receivables impaired are related primarily to significantly aged receivables, which the Company no longer expects to collect although still subject to enforcement. As at year end, the aging analysis of trade receivables and contract assets that were not impaired is as follows: Total Neither past due nor Impaired Past due but not impaired <30 days 30-60 days 60-120 days >120 days (in thousands) At December 31, 2017 $ 20,926 $ 12,746 $ 4,771 $ 1,036 $ 1,673 $ 700 At December 31, 2018 $ 15,884 $ 7,421 $ 5,155 $ 49 $ 471 $ 2,788 At December 31, 2019 $ 9,977 $ 6,265 $ 2,125 $ 130 $ 371 $ 1,086 The Company does not assign credit risk rating grades to its trade receivables, but assess credit risk at the customer level. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents | Cash and cash equivalents At December 31, 2017 2018 2019 (in thousands) Cash at banks $ 2,039 $ 4,577 $ 2,591 Cash equivalents 909 7,509 11,507 Cash and cash equivalents $ 2,948 $ 12,086 $ 14,098 Cash at banks earns no interest. Cash equivalents in money market funds and term deposits are invested for short-term periods depending on the immediate cash requirements of the Company, and earn interest at market rates for short-term investments. The fair value of cash and cash equivalents is equal to book value. Most of the cash and cash equivalents is held in U.S. dollar and euros as follows: At December 31, 2017 2018 2019 (in thousands) U.S. dollar denominated accounts $ 1,343 $ 4,411 $ 13,702 Euro denominated accounts 1,503 7,545 301 GBP denominated accounts 30 30 37 SGP denominated accounts 16 53 12 NIS denominated accounts 11 21 19 RMB denominated accounts 21 7 11 Other currencies denominated accounts 24 19 16 Cash and cash equivalents $ 2,948 $ 12,086 $ 14,098 |
Issued capital and reserves
Issued capital and reserves | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Issued capital and reserves | Issued capital and reserves The share capital of Sequans Communications S.A. is denominated in euros, as required by law in France. Any distributions to shareholders are denominated in euros. Amounts of capital and reserves presented in the Consolidated Statements of Financial Position in U.S. dollars have been translated using historical exchange rates. Authorized capital, in number of shares Authorized capital includes all shares issued as well as all potential shares which may be issued upon exercise of stock options, founders' warrants, other warrants, restricted share awards and conversion of convertible debt, or which the shareholders have otherwise authorized for specific capital increases. At December 31, 2019 , following resolutions for capital increases approved by the shareholders in June 2019, authorized capital was 244,254,014 ordinary shares with a nominal of € 0.02 each ( 139,359,831 and 156,960,089 ordinary shares at December 31, 2017 and 2018 , respectively). There is one category of authorized shares: ordinary shares. On November 29, 2019, the Company modified the ratio of shares per ADS from one share per ADS to four shares per ADS. Shares issued and fully paid At December 31, 2017 2018 2019 Shares Amount Shares Amount Shares Amount (in thousands, except for share data) Ordinary shares 80,024,707 € 1,597 94,732,539 € 1,895 95,587,146 € 1,912 Converted to U.S. dollars at historical exchange rates $ 2,031 $ 2,384 $ 2,403 Other capital reserves Other capital reserves include the accumulated share-based payment expense as of period end, the counterpart of which is in retained earnings (accumulated deficit) as the expense is reflected in profit and loss, as well as the fair value of the convertible debt embedded derivatives at the time of conversion rate was fixed in 2016, the change in fair value of the conversion options at resulting from the 2017 and 2018 amendments, the value of the conversion option of the 2018 and 2019 convertibles, the value of warrants issued to the holder of the 2015 convertible note in connection with the September 2018 amendment, the value of warrants issued to the holder of the venture debt and the deferred tax impact related to the equity component of the convertible debts and venture debt. Dividend rights Dividends may be distributed from the statutory retained earnings and additional paid-in capital, subject to the requirements of French law and the by-laws of Sequans Communications S.A. There were no distributable retained earnings at December 31, 2017 , 2018 or 2019 . Dividend distributions by the Company, if any, will be made in euros. Capital transactions On February 18, 2019, the Company issued warrants to purchase 9,392,986 ordinary shares to a strategic investor for a total subscription price of $8,360,000 . The warrants are exercisable upon 61 days ' notice to Sequans at an exercise price of €0.02 per share ( €0.08 per ADS). The warrants expire 15 years from the issuance date. Upon issuance of the warrants, $8,360,000 was recorded in share premium in the Consolidated Statement of Financial Position. On January 17, 2018, the Company increased its capital in connection with a public offering by issuing 14,375,000 ordinary shares (including 1,875,000 shares from the underwriters' over-allotment option) at $1.60 per share ( $6.4 per ADS). The total offering amounted to $23,000,000 . Accordingly, issued capital in the Consolidated Statement of Financial Position was increased by $352,369 recorded in share capital and $22,647,631 in share premium. Costs directly attributable to the equity transaction amounting to approximately $2.2 million were deducted from the share premium. On June 16, 2017, the Company increased its capital in connection with a public offering by issuing 4,312,500 ordinary shares (including 562,500 shares from the underwriters' over-allotment option) at $3.80 per share ( $15.2 per ADS). The total offering amounted to $16,387,500 . Accordingly, issued capital in the Consolidated Statement of Financial Position was increased by $96,246 recorded in share capital and $16,291,254 in share premium. Costs directly attributable to the equity transaction amounting to approximately $1.5 million were deducted from the share premium. On May 9, 2017, a holder of convertible notes issued in 2016 with a principal value of $160,000 converted the debt, plus accrued interest of $11,594 into a total of 63,258 ordinary shares. $1,380 was recorded in share capital in the Consolidated Statement of Financial Position and $165,114 in share premium. In the years ended December 31, 2017 , 2018 and 2019 , ordinary shares were issued upon exercise of options and warrants as described in Note 13 to the Consolidated Financial Statements. |
Share-based payment plans
Share-based payment plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Share-based payment plans | Share-based payment plans The expense recognized for employee and other services received during the year ended December 31, 2019 and arising from equity-settled share-based payment transactions was $1,797,000 ( 2017 : $1,638,000 ; 2018 : $1,812,000 ). Of this total, $22,000 in 2019 ( 2017 : $14,000 ; 2018 : $24,000 ), related to warrants plans for consultants considered equivalent to employees. Founders' warrants, stock options, warrants and restricted share awards give the right to acquire ordinary shares. Following completion of the initial public offering of the Company’s shares, the exercise price for options and warrants is based on the closing market price on the date of grant. There is no exercise price for restricted share awards; the beneficiary receives title to the underlying ordinary shares with no cash payment at the end of the vesting period. In general, the contractual life of the founders' warrants, stock options and warrants is ten years. There are no cash settlement alternatives, and the Company has not developed a practice of cash settlement. There have been no cancellations or modifications to any of the plans during the years ended December 31, 2017 , 2018 or 2019 . General employee stock option, founders warrant plans and restricted shares awards All employees of the French parent company and its subsidiaries are entitled to a grant of stock options or restricted shares awards. Founders' warrants were granted to residents of France prior to the Company’s IPO. Founders' warrants are a specific type of option available to qualifying young companies in France and had more favorable tax treatment for both the employee and the employer compared to stock options. Otherwise, founders' warrants function in the same manner as stock options. In general, vesting of the founders' warrants and stock options occurs over four years , with 25% vesting after the first anniversary of grant and the remaining 75% vesting monthly over the remaining 36 months. Restricted shares awards (RSA) vest over four years , with either 25% vesting after the 1 -year anniversary of the grant and the remaining 75% of the grant vesting quarterly over the remaining 3 years, or with 50% vesting after the 2 -year anniversary of the grant and the remaining 50% vesting quarterly over the remaining 2 years. From time to time, vesting of founders' warrants, stock options and restricted shares may be linked to employee performance with different vesting periods. Vested restricted shares may be sold only beginning two years after the date of grant. All expenses related to these plans have been recorded in the Consolidated Statement of Operations in the same line items as the related employees’ cash-based compensation. Warrant plans for board members and consultants The Company awards warrants to members of the board of directors following approval by the shareholders and to a limited number of consultants who have long-term relationships with the Company. Vesting may be either over a two -year, three -year or four -year period, or may be immediate, depending on the nature of the service contract. All expenses related to these plans have been recorded in the Consolidated Statements of Operations in the same line items as the related service provider’s cash-based compensation. Movements in the periods presented The following table illustrates the number of shares and weighted average exercise prices (WAEP) of, and movements in, founders' warrants, stock options and warrants during the period: December 31, 2017 2018 2019 Number WAEP Number WAEP Number WAEP Outstanding at January 1, 7,177,500 $ 3.55 6,197,848 $ 3.59 5,983,452 $ 3.50 Granted during the year 230,000 $ 3.39 250,000 $ 1.93 312,000 $ 0.89 Forfeited during the year (336,365 ) $ 4.75 (269,082 ) $ 2.84 (452,992 ) $ 2.56 Exercised during the year (1) (431,790 ) $ 2.28 (14,814 ) $ 1.85 — $ — Expired during the year (441,497 ) $ 3.25 (180,500 ) $ 5.67 (70,500 ) $ 1.34 Outstanding at period end 6,197,848 $ 3.59 5,983,452 $ 3.50 5,771,960 $ 3.46 Of which, warrants for consultants equivalent to employees 151,500 $ 3.29 180,500 $ 2.75 177,500 $ 2.70 Exercisable at period end 4,900,052 $ 3.90 5,194,187 $ 3.62 5,114,422 $ 3.55 Of which, warrants for consultants equivalent to employees 131,917 $ 3.51 143,833 $ 3.11 160,833 $ 2.84 ________________________ (1) The weighted average share estimated fair value at the dates of exercise of these options was $2.20 in 2018 and $3.49 in 2017 . The following table illustrates the number of, and movements in, restricted shares awards (RSA) during the period: December 31, 2017 2018 2019 Outstanding at January 1, 634,720 1,467,166 2,746,181 Granted during the year 1,002,650 1,803,550 4,180,218 Forfeited during the year (15,200 ) (206,517 ) (184,314 ) Vested during the year (155,004 ) (318,018 ) (858,898 ) Outstanding at period end 1,467,166 2,746,181 5,883,187 Prior to the initial public offering in April 2011, exercise prices were denominated in euros. Since the IPO, exercise prices are denominated in U.S. dollars. Euro-denominated exercise prices were converted to U.S. dollars at the historical exchange rate for purposes of presentation in this table. The weighted average remaining contractual life of founders' warrants, stock options and warrants outstanding as at December 31, 2019 was 4.3 years ( 2018 : 5.2 years; 2017 : 6.0 years). The range of exercise prices, with euro-denominated exercise prices converted to U.S. dollars at the year-end exchange rate, for founders' warrants, stock options, and warrants outstanding at December 31, 2019 , 2018 and 2017 was $1.20 — $8.50 . The weighted average fair value of founders' warrants, stock options and warrants granted during the year ended December 31, 2019 was €0.37 ( 2018 : €0.88 ; 2017 : €1.52 ). The weighted average fair value of the restricted shares awards granted during the year ended December 31, 2019 was €0.67 ( 2018 : €1.00 ; 2017 : €2.15 ). The fair value is measured at the grant date. The following table lists the inputs to the models used for determining the value of the grants made for the years ended December 31, 2017 , 2018 and 2019 : December 31, 2017 2018 2019 Dividend yield (%) — — — Expected volatility (%) 63 - 64 68 - 70 55 Risk–free interest rate (%) 0.43 0 0.00 Assumed annual lapse rate of awards (%) 10 for RSA 2 for stock options, warrants and a limited group of beneficiaries 10 for RSA 2 for stock options, warrants and a limited group of beneficiaries 10 for all except 2 for warrants and a limited group of beneficiaries Sell price multiple (applied to exercise price) 2 2 2 Weighted average share price (€) 2.30 1.08 0.68 Model used Binomial Binomial Binomial For the years ended December 31, 2019 , 2018 and 2017 the expected volatility assumption is based on the Company’s volatility since its initial public offering in 2011. Founders' warrants, stock options and warrants can be exercised during a period after the vesting date until the plan terminates. In the pricing model, the assumption was made that plan participants will exercise before the end of the exercise period if the share price reaches a certain multiple of the exercise price. If a sell-price multiple of 3 instead of 2 had been used (no impact on the restricted shares) and if the weighted average share price used in the pricing model had been decreased by 10% , share-based payment total compensation for founders' warrants, stock options, warrants and restricted shares awards granted through December 31, 2019 would have decreased by approximately (9.46)% ( 2018 : (8.63)% ; 2017 : (8.73)% ). The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. |
Interest-bearing loans and borr
Interest-bearing loans and borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Interest-bearing loans and borrowings | Interest-bearing loans and borrowings At December 31, Note 2017 2018 2019 (in thousands) Current Convertible debt 14.1 — — 7,329 Venture debt 14.2 — 823 5,109 Interest-bearing receivables financing 14.3 7,413 10,295 4,068 Total current portion $ 7,413 $ 11,118 $ 16,506 Non-current Convertible debt 14.1 $ 17,063 $ 19,723 $ 23,342 Venture debt 14.2 — 11,811 7,071 Total non-current portion $ 17,063 $ 31,534 $ 30,413 As of December 31, 2019 , the Company had no drawn or undrawn committed borrowing or overdraft facilities in place. Convertible debt On April 14, 2015, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C., one of the Company’s existing shareholders, regarding the issuance and sale of a convertible note in the principal amount of $12 million (the “2015 note”), which note was convertible into the Company’s shares, nominal value €0.02 per share, at a conversion rate of 540.5405 shares for each $1,000 principal amount of the 2015 note, subject to certain adjustments, which equated to an initial conversion price of $1.85 per share. On October 30, 2017, the convertible note was amended to extend the term from April 14, 2018 to April 14, 2019. On September 27, 2018, the convertible note was further amended to extend the term by two years to April 14, 2021, and to decrease the conversion price from $1.85 to $1.70 per share. In addition, the Company issued to Nokomis, for a total subscription price of $1.00 , warrants to acquire 1,800,000 shares at an exercise price of $1.70 per share. Such warrants are exercisable at any time and expire April 14, 2021. On April 27, 2016, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C. and two other financial institutions (the “Holders”) regarding the issuance and sale of convertible notes in the aggregate principal amount of $7.16 million (the “2016 notes”), which are convertible into the Company’s shares. The initial conversion price of the 2016 notes was $2.7126 per share. On October 30, 2017, the convertible note agreement was amended to extend the term from April 27, 2019 to April 27, 2020. In addition, the conversion price was decreased from $2.71 to $2.25 per share. On September 27, 2018, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C. in the principal amount of $4.5 million (the "2018 notes") under which the convertible note matures in April 2021 and is subordinated to certain venture debt to be issued by the Company and is convertible, at the holder’s option, into the company’s shares at a conversion rate of $1.70 per share. On September 27, 2018, all of the convertible notes issued in 2015 and convertible notes with a principal amount of $6 million issued in 2016 were amended to allow the convertible notes to be subordinated to certain venture debt to be issued by the Company. On October 26, 2018, the Company further amended the 2015 note, the 2016 note and the 2018 note with Nokomis to clarify the terms of the subordination of these convertible notes to the Company’s venture debt holder. On May 7, 2019, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C. in the principal amount of $3.0 million (the "2019-1 notes"). The convertible note matures in April 2021 and is convertible, at the holder’s option, into the Company’s shares at a conversion rate of $1.21 per share. On August 16, 2019, the Company entered into a convertible note agreement with Nokomis Capital, L.L.C. in the principal amount of $5.0 million (the "2019-2 notes"). The convertible note matures in August 2022 and is convertible, at the holder’s option, into the Company’s shares at a conversion rate of $1.03 per share. Effective February 11, 2020, the Company amended the terms of the convertible note issued April 27, 2016 to Nokomis Capital, L.L.C., to extend the maturity of the note to April 14, 2021. In addition, the conversion price was reduced from $2.25 to $1.225 per ordinary share (See Note 23 to the Consolidated Financial Statements). Effective March 20, 2020, the convertible notes issued in April 2015, April 2016, September 2018, May 2019 and August 2019 were amended to grant the Company three options to extend the term of each note, except for the August 2019 which has two options. Each option will give the Company the right to extend the term of such note by one year and consequently reset the conversion price to a 20% premium above the 20-day volume weighted average price (VWAP) if it is lower than the existing conversion price. On the first option exercise, the payment-in-kind interest (PIK) will stay at 7% but the holder will be granted a warrant for 10% of the value of the note with a three year term, at an exercise price of 20% premium above 20-day VWAP. On the second option exercise, the PIK will be adjusted to 9.5% , the previous warrants granted on the first option exercise will be extended by one year and the holder will be granted an additional warrant for 15% of the value of the note with a three year term, at an exercise price of 20% premium above 20-day VWAP. On the third option exercise, the PIK will be adjusted to 13.5% , and the holder will be granted an additional warrant for 20% of the value of the note with a three year term, at an exercise price of 20% premium above 20-day VWAP. If at any time, the holder converts a note prior to the date of April 2022, it will receive an extra year’s worth of PIK so as to incentivize early conversion. In consideration for entering into the amendments, the warrants that Nokomis owns that were scheduled to expire April 2021 were extended to April 2024 upon the signing of the note amendments. The 2015, 2016, 2018 and 2019 notes (together, “the Notes”) are unsecured obligations of the Company. The Notes issued in 2015, 2016, 2018 and in May 2019 will mature on April 14, 2021, and the 2019-2 note will mature on August 16, 2022, except if the Company exercises its option to extend the term of the notes as provided in the March 20, 2020 amendments. The Notes are not redeemable prior to maturity at the option of the Company. The accreted principal amounts of the notes are convertible at any time or times on or after the issuance dates until maturity, in whole or in part, subject to certain adjustments for significant corporate events, including dilutive issuances, dividends, stock splits and other similar events. Interest accrues on the unconverted portion of the notes at the rate of 7% per year (unless the above options are exercised), paid in kind annually on the anniversaries of the issuance of the Notes. The notes also provide for customary events of default which, if any of them occurs, would permit or require the principal of and accrued interest on the notes to become or to be declared due and payable. In the event of a recapitalization, reorganization, reclassification, consolidation, merger, sale of all or substantially all of the Company’s assets or other transaction, which in each case results in the Company’s shareholders receiving stock, securities or assets with respect to or in exchange for their ADSs or ordinary shares, the holders shall elect, at their option, either (a) to require the Company to repurchase for cash the entire accreted principal amount of the Notes or (b) to convert the Notes in their entirety. The Notes contain customary ongoing covenants of the Company. In addition, the Notes provide that the Company will not grant a consensual security interest or pledge its personal property assets to a third-party lender (with certain limited exceptions) during the time that the notes are outstanding. Any amendment or waiver of the terms of the Notes requires the affirmative consent of the holders. The 2015 and 2016 notes were accounted for as compound financial instruments with two components: • A liability component reflecting the Company’s contractual obligation to pay interest and redeem the bonds in cash; and • An embedded derivative, which is the holder's call option whereby the Company can be required to issue a number of shares in exchange for notes, at a rate which may vary during the first twelve months after issuance of the 2015 note under certain contractual conditions and during the period beginning on April 28, 2016 and ending on May 12, 2016 for the 2016 notes, and at the fixed conversion rate for the 2018 note. The initial fair value of the 2015 and 2016 notes was split between these two components. The fair value of the liability component on the issuance date represented the fair value of a similar liability that does not have an associated equity conversion feature, calculated as the net present value of contractually determined future cash flows, discounted at the rate of interest applied by the market at the time of issue to instruments of comparable credit status and providing substantially the same cash flows, on the same terms, but without the conversion option. The Company used 24.26% and 25.69% as the market rate of interest in order to value the liability components of the 2015 and 2016 notes on issuance, respectively. On April 14, 2016, when the conversion rate of the 2015 notes was fixed, the fair value of the embedded derivative was calculated to be $8,324,000 ( $6,091,000 at December 31, 2015). Following the extension of the term, the change in fair value of the conversion option before and after the amendment was calculated to be $2,120,000 and was recorded as financial expense and in Other Capital Reserves in shareholders’ equity. The debt component on October 30, 2017 was remeasured to take into account the new term using the effective interest rate calculated at the date of issue. The debt was reduced by an amount of $1,994,000 recorded in financial income. Following the amendment signed in September 27, 2018, the fair value of the debt just prior to amendment was estimated in order to record a loss on extinguishment of $265,000 recorded as Convertible debt amendments in the Consolidated Statements of Operations. The amended debt was then recorded at its fair value assuming a market rate of interest, with the calculated value of the conversion option of $3,788,000 recorded in Other Capital Reserves in shareholders’ equity. In the amendment signed on September 27, 2018, the Company issued to Nokomis, for a total subscription price of $1.00 , warrants to acquire 1,800,000 shares at an exercise price of $1.70 per share. Such warrants are exercisable at any time and initially expired April 14, 2021 (these warrants were extended to April 2024 upon the signing of the March 20, 2020 note amendments). The calculated value of these warrants amounted to $749,000 , of which $523,000 was recorded as a reduction of the amount of debt. The fair value of the embedded derivative of the 2016 notes on the issuance date of April 27, 2016 was recalculated to be $1,947,000 when the conversion rate of the 2016 Notes was fixed on May 12, 2016. Following the extension of the term and the decrease of the conversion price, the change in fair value of the conversion option before and after the amendment was calculated to be $1,298,000 and was recorded as financial expense and in Other Capital Reserves in shareholders’ equity. The debt component on October 30, 2017 was remeasured to take into account the new term using the effective interest rate calculated at the date of issue. The debt was reduced by an amount of $1,103,000 recorded in financial income. The net impact of the October 30, 2017 amendments of the convertible notes recorded in financial expense amounted to $322,000 . On May 9, 2017, a Holder of 2016 notes with a principal value of $160,000 converted the debt, plus accrued interest of $11,594 into a total of 63,258 ordinary shares. On October 30, 2018 and in connection with entering into the venture debt issuance agreement, the Company retired convertible notes issued on April 27, 2016 and due on April 27, 2020, with a principal amount of $1 million , by paying the principal and accrued interest due as of October 30, 2018 to the noteholder. The Company recognized $400,000 in financial expense related to the early retirement of this debt after the repayment. The 2018 and 2019 notes were accounted for as compound financial instruments with two components: • A liability component reflecting the Company’s contractual obligation to pay interest and redeem the bonds in cash; and • An equity component for the value of the conversion option. The initial fair value of the notes was split between these two components. The fair value of the equity component of the 2018 notes on the issuance date of September 27, 2018 was calculated to be $1,366,000 and was recorded in Other Capital Reserves in shareholders’ equity, net of transaction costs. The Company has used 23.81% as the market rate of interest in order to value the liability component of the note. The fair value of the equity component of the 2019-1 and 2019-2 notes on the issuance date of May 7, 2019 and August 16, 2019 were calculated to be $989,000 and $1,874,000 , respectively and were recorded in Other Capital Reserves in shareholders’ equity, net of transaction costs. The Company has used 31.22% and 25.36% as the market rate of interest in order to value the liability component of the 2019-1 and 2019-2 notes, respectively. All remaining convertible notes issued in 2015, 2016, 2018 and 2019 are held by one institutional investor, Nokomis Capital. On November 29, 2019, the Company modified the ratio of shares per ADS from one share per ADS to four shares per ADS. Consequently, the conversion rate of the convertible notes into ADS have been adjusted as follows: Security Contractual conversion rate/exercice price per share Adjusted conversion rate/exercice price per ADS as of Nov 29, 2019 2015 notes, 2018 notes, warrants $ 1.70 $ 6.80 2016 notes $ 2.25 $ 9.00 2019-1 notes $ 1.21 $ 4.84 2019-2 notes $ 1.03 $ 4.12 Venture debt On October 26, 2018, the Company entered into a bond issuance agreement with Harbert European Specialty Lending Company II S.a.r.l (the “Harbert”) whereby Harbert agreed to loan to the Company €12 million ( $14.0 million using the exchange rate as of October 26, 2018), at a stated rate of interest of 9% , to be repaid monthly over 42 months (the “Bond”).The Company may redeem or repurchase the notes before the maturity date, subject to making certain contractual payments. The contract also requires the Company to pay an additional fee equal to 2.5% of the principal at the end of the term. The Bond is secured by various assets of the Company (See Note 20), including intellectual property, and is senior to all the convertible notes. Also on October 26, 2018, the Company issued to Harbert, for a total subscription price of $1.00 , warrants to acquire 816,716 shares at an exercise price of $1.34 per share ( $5.36 per ADS after the modification of the ratio of shares per ADS). Such warrants are exercisable at any time and expire October 26, 2028. The amounts received from Harbert, net of transaction costs, were allocated to (i) the warrants for an amount of €712,000 ( $819,000 ), which was recorded in Other Capital Reserves in shareholders’ equity, and (ii) the liability component for €10.9 million ( $12.8 million ). During the first twelve months, Sequans was only required to make interest payments. Beginning in November 2019, the Company began to make monthly principal and interest payments of €448,000 ( $503,000 ) which will continue over the remaining 28 months until April 26, 2022. Interest expense related to the venture debt recorded during the year ended December 31, 2019 amounted to $1,796,000 ( $327,000 during the year ended December 31, 2018), of which $1,209,000 was paid during the period ( $226,000 in 2018). Repayments of principal in November and December 2019 amounted to €719,000 ( $801,000 ). Interest-bearing financing of receivables In June 2014, the Company entered into a factoring agreement with a French financial institution whereby a line of credit was made available equal to 90% of the face value of accounts receivable from product sales to qualifying customers, up to the amount covered by the Company's credit insurance per customer. In July 2017, the Company signed an amendment to the initial agreement to include limited financing of accounts receivable from service sales of $800,000 . The Company transfers to the finance company all invoices issued to qualifying customers, and the customers are instructed to settle the invoices directly with the finance company. The Company pays a commission on the face value of the accounts receivable submitted and interest at the rate of 1.60% (LIBOR 3 months + 1% ) on any draw-down of the resulting line of credit. In the event that the customer does not pay the invoice within 60 days of the due date, the receivable is excluded from the line of credit, and recovery becomes the Company’s responsibility. At December 31, 2019 , $4,068,000 ( $10,295,000 at December 31, 2018 and $7,413,000 at December 31, 2017 ) had been drawn on the line of credit and recorded as a current borrowing. |
Lease liabilities (Notes)
Lease liabilities (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Lease liabilities | ease liabilities The cumulative effect of initially applying IFRS 16 was recognized as an adjustment to the opening balance sheet at the date of initial application, January 1, 2019. The Company recognized right-of-use of assets of $4,563,000 (included in property, plant and equipment in the Consolidated Statements of Financial Position). Identified lease contracts mainly relate to real-estate rental agreements and IT and office equipment leases. At January 1, 2019, lease liabilities totaled $4,623,000 including non-current lease liabilities of $3,226,000 and current lease liabilities of $1,404,000 . The lease liabilities were discounted at an incremental borrowing rate of 14.2% . The table below present the carrying amounts of right-of-use assets recognized and the movements during the period: Real-estate IT and office equipment Total (In thousands) As at January 1, 2019 $ 4,159 397 4,556 Additions 847 847 Depreciation expense (1,064 ) (290 ) (1,354 ) As at December 31, 2019 $ 3,942 $ 107 $ 4,049 The table below present the carrying amounts of lease liabilities and the movements during the period: Lease liabilities Current Non-current (In thousands) As at January 1, 2019 $ 4,623 $ 1,415 $ 3,208 Additions 732 Interests expense 622 Foreign exchange gain (loss) 49 Payments (1,922 ) As at December 31, 2019 $ 4,104 $ 900 $ 3,204 The rental charges relating to short-term and low value leases remained classified as operating expenses in the Consolidated Statements of Operations and amounted to $810,000 for the year ended December 31, 2019. |
Government grant advances and l
Government grant advances and loans | 12 Months Ended |
Dec. 31, 2019 | |
Government Grants [Abstract] | |
Government grant advances and loans | Government grant advances and loans December 31, Note 2017 2018 2019 (in thousands) Current Government grant advances 16.1 $ 93 $ 58 $ 349 Research project financing 16.2 899 172 674 Government loans 16.2 600 458 449 Total current portion $ 1,592 $ 688 $ 1,472 Non-current Government grant advances 16.1 $ 350 $ 86 $ 510 Research project financing 16.2 2,946 4,274 4,652 Government loans 16.3 1,353 819 348 Accrued interest 16.2 381 495 640 Total non-current portion $ 5,030 $ 5,674 $ 6,150 Government grant advances In 2017, the Company was named as a participant in one new collaborative project with funding of €349,000 ( $386,000 ), which is expected to be released to the Consolidated Statement of Operations over the life of the project, estimated to be between one and four years. In 2019, the Company was named as a participant in two new collaborative projects with combined funding of €856,000 ( $963,000 ) which is expected to be released to the Consolidated Statement of Operations over the lives of the projects, estimated to be approximately three years for both projects. The Company did not participate in any new collaborative projects in 2018. Research project financing In October 2014, Bpifrance, one of the Company’s shareholders and the financial agency of the French government, provided funding to the Company in the context of a long-term research project, estimated to be completed over a 3 -year period. In December 2016, Bpifrance and the Company signed an amendment to extend the period from three to four years. The total funding remains unchanged and amounts to €6,967,000 ( $8,988,000 ) with a portion in the form of a grant ( €2,957,000 or $3,815,000 ) and a portion in the form of a forgivable loan ( €4,010,000 or $5,173,000 ). The funding was paid in three installments, the last of which was received in 2019 for €992,000 ( $1,126,000 ). The grant was recognized as a reduction of research and development expense when corresponding expense was incurred. The forgivable loan advance will be repaid from March 31, 2019 to September 30, 2022 of which €150,000 ( $168,000 ) in principal and interests was paid in 2019, and bears interests at a 1.53% fixed contractual rate. The difference between the amount of grant received and the present value amounted to a reduction of $115,000 in the debt carrying value, with such difference being amortized over the contract period. If the sales of the product developed under this program are in excess of €350 million ( $393 million ) during a period of three years, then the Company shall pay for three consecutive years after the date of the termination of the reimbursement a bonus to Bpifrance of 1% of annual revenues generated by products issued from the project (up to a maximum of €350,000,000 or $393,190,000 over a period of ten years). In January 2016, Bpifrance provided funding to the Company for a new long-term research project, estimated to be completed in early 2020. The total of the funding amounts to €2,095,000 ( $2,288,000 ) comprising a portion in the form of a grant ( €668,000 or $729,000 ) and a portion in the form of a forgivable loan ( €1,427,000 or $1,558,000 ). The funding was paid in four installments, the last of which was received in February 2020 for €365,000 ( $405,000 ). The grant is recognized as a reduction of research and development expense when corresponding expense is incurred. The forgivable loan advance will be repaid, except if the project is a commercial failure, from July 1, 2020 to July 1, 2024 and bears interests at a 1.17% fixed contractual rate. The difference between the amount of grant received and the present value of future payments discounted using interest rate applied for standard loans with similar maturity amounted to a reduction of $30,000 in the debt carrying value, with such difference being amortized over the contract period. In the event of commercial success, and sales of the product developed under this program are in excess of €3 million ( $3.3 million ), then the Company shall pay for 4 consecutive years after the date of the termination of the refund 13% of the revenues generated by the sales of the products or services (up to a maximum of €600,000 , or $674,000 , over a period of 10 years). In 2017, the Company received payments for one project of €176,000 ($207,000) as a grant and for the two projects €2,132,000 ($2,509,000) as forgivable loans. In 2018, the Company received payments for one project of €421,000 ( $492,000 ) as a grant and €927,000 ( $1,083,000 ) as a forgivable loan. In 2019, the Company received payments for one project €425,000 ( $482,000 ) as a grant and €567,000 ( $644,000 ) as a forgivable loan. The estimated market rate of interest applied in 2019, 2018 and 2017 was between 1.80% and 2.30% . Accrued interest of $370,000 was recorded as of December 31, 2019 ( $242,000 as of December 2018 and $159,000 as of December 31, 2017 ). Government loans In September 2015, the Company received two loans from Bpifrance for a total amount of €2,000,000 ( $2,228,000 ). One loan of €1,000,000 bears interest at 5.24% per year, paid quarterly; the second loan of €1,000,000 is interest-free. The interest-free loan has been revalued using the 5.24% interest rate payable on the other loan. Both loans have seven year terms with the principal being amortized on a quarterly basis beginning in June 2017. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Provisions | Provisions Post- employment benefits Other provisions Total Current Non current (in thousands) At January 1, 2017 $ 688 $ 664 $ 1,352 $ 46 $ 1,306 Arising (released) during the year 216 443 659 — — Released (used) during the year — (50 ) (50 ) — — Released (unused) during the year — (397 ) (397 ) — — At December 31, 2017 904 660 1,564 32 1,532 Arising (released) during the year 86 590 676 — — Released (used) during the year — (32 ) (32 ) — — Released (unused) during the year — (167 ) (167 ) — — At December 31, 2018 990 1,051 2,041 352 1,689 Arising (released) during the year 94 190 284 — — Released (used) during the year (21 ) (352 ) (373 ) — — Released (unused) during the year — (47 ) (47 ) — — At December 31, 2019 $ 1,063 $ 842 $ 1,905 $ — $ 1,905 The provision for post-employment benefits is for the lump sum retirement indemnity required to be paid to French employees if they retire as a Company employee. The comprehensive income (loss) for 2019 includes $108,000 of actuarial loss (actuarial loss of $47,000 in 2018 and actuarial gain of $46,000 in 2017 ). One employee retired during the year ended December 31, 2019. No employee retired in 2017 or 2018. The main assumptions used in the calculation are the following: 2017 2018 2019 Discount rate 1.30% 1.57% 0.77% Salary increase Between 1.5% and 3.5% Between 1.5% and 3.5% Between 1.5% and 3.5% Retirement age 60-62 years 60-62 years 60-62 years Turnover: depending on the seniority 4.35%, nil as from 64 4.35%, nil as from 64 4.35%, nil as from 64 At December 31, 2017 , 2018 and 2019 , “Other provisions” include primarily estimated royalty payments assessed on sales of modules to holders of patents which may be deemed as essential under the requirements of the LTE standard. The royalty provision is based on management’s judgment, taking into consideration the published royalty rates, various legal decisions, articles, reports and industry discussions on the subject which were available, and is recorded in the cost of product revenue. The Company’s modules are considered as final products incorporating the full LTE function, and therefore may have royalties assessed on their sale; no royalties are accrued on the sales of chips as the full LTE functionality is not included in the chip and it is not current industry practice to license standard-essential patents at the component level. In the year ended December 31, 2017, the Company revised the estimated royalty provision and reduced provisions from 2015 and 2016 by a total of $397,000 . At December 31, 2018, the Company recorded a provision for risk for $352,000 related to the probable expected costs to be incurred by the Company related to the current class action litigation (see Note 21 to the Consolidated Financial Statements). The Company incurred $352,000 in related costs during the period and reversed the provision accordingly. |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other non-current liabilities | Other non-current liabilities At December 31, 2017 2018 2019 (in thousands) Trade Payables — — 1,139 Deferred tax liabilities 52 691 429 Contract liabilities: License and development services agreement — — 11,249 Deferred revenue 1,293 808 323 Total contract liabilities $ 1,293 $ 808 $ 11,572 As of December 31, 2019, trade payables included the non-current part of a supplier debt related to acquisition of intangible assets. In December 2018, the Company recognized a net deferred tax liability of $691,000 related mainly to a deferred tax liability on the equity component of the convertible debt and the venture debt issued during the year of $1,818,000 , recorded in equity, partially offset by a deferred tax asset related to unused tax losses which could be utilized in the period into which taxable temporary differences are expected to reverse. In December 2019, the Company recognized a net deferred tax liability of $429,000 related mainly to a deferred tax liability on the equity component of the convertible debts including $ 2,591,000 related to the convertible notes, recorded in equity, partially offset by a deferred tax asset related to unused tax losses which could be utilized in the period into which taxable temporary differences are expected to reverse. On October 24, 2019, the Company signed a multi-year, non-exclusive license and development services agreement with a strategic partner, a Fortune Global 500 company, with an estimated value exceeding $35 million over more than 3 years, subject to the Company achieving certain pre-agreed milestones. The agreement provided for an upfront payment of $18 million , which was received in October 2019, and recorded as a contract liability upon receipt. Quarterly payments of $1.8 million are to be paid to the Company beginning August 2021 with the remaining consideration to be paid upon completion of the final milestone expected to occur in July 2023. In order to comfort the strategic partner on the funding of the Company, the agreement as amended on March 20, 2020 includes a financing milestone to be completed by September 30, 2020 for the Company to raise at least $25 million in net proceeds from new equity, debt or government financing, none of which can be repayable before April 30, 2024. If the financing milestone is not completed, the strategic partner will have the option to terminate the contract and receive a refund of $8 million of the $18 million upfront payment. The contract also includes clauses that allow for termination in certain circumstances, including not achieving a key technical milestone, or in some cases of a change in control of the Company, which could result in a refund of certain or all amounts received under the contract, depending on the circumstances. The Company determined that this agreement includes a financing component, which will result in the recognition of interest expense over the term of the agreement. In the year ended December 31, 2019, the Company recognized revenues for an amount of $2,285,000 and interest expenses on the upfront payment of $619,000 . At December 31, 2019, the net remaining contract liability of $16,334,000 was presented on the balance sheet as current contract liabilities for $5,085,000 , reflecting the expected net amount of revenue less interest expenses to be recognized in the year ended December 31, 2020, and the remaining amount of $11,249,000 as non-current contract liabilities. In December 2015, the Company entered into a contract with a customer for certain development services which resulted in the recognition of deferred revenues for $1,940,000 to be recognized on a straight-line basis over four years beginning when the customer’s product is certified by a major U.S. carrier. As revenues were expected to be recognized subsequent to December 31, 2019, these deferred revenues were presented as non–current liabilities as of December 31, 2018 and 2017. The certification occurred in September 2017 and therefore $485,000 , $485,000 and $121,000 was recognized as revenue in 2019, 2018 and 2017, respectively, $485,000 of the deferred revenues has been classified as current as of December 31,2019 and $485,000 as of December 31, 2017 and 2018 and the remainder as non-current as of December 31, 2017, 2018 and 2019. |
Trade payables and other curren
Trade payables and other current liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade payables and other current liabilities | Trade payables, other current liabilities and deferred revenue At December 31, 2017 2018 2019 (in thousands) Trade payables $ 13,023 $ 9,412 $ 8,834 Other current liabilities: Employees and social debts 3,720 3,091 3,575 Others 1,418 1,563 965 Total other current liabilities $ 5,138 $ 4,654 $ 4,540 Contract liabilities: License and development services agreement — — 5,303 Deferred revenue 740 973 $ 727 $ 740 $ 973 $ 5,812 Terms and conditions of the above financial liabilities: • Trade payables are non-interest bearing and are generally settled on 30 -day terms. • Other current liabilities, primarily accrued compensation and related social charges, are non-interest bearing. • The upfront payment received from a strategic partner is deemed to include a financing component, and as such, bears interest. As of December 31, 2017 and 2018 , trade payables included the current part of a supplier debt recorded at the discounted value amounting to $5,061,000 and $2,399,000 , respectively. The final installment of the supplier debt was settled in January 2018. As of December 31, 2017 , 2018 and 2019 , deferred revenue excluding the contract liability recognized in connection with the license and development services contract entered into with a strategic partner is related to maintenance services as well as development services agreements. At December 31, 2017, 2018 and 2019 , deferred revenue totaled $740,000 (recognized in 2018), $973,000 (recognized in 2019) and $727,000 (expected to be recognized during 2020), respectively. |
Information about financial ins
Information about financial instruments | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments [Abstract] | ||
Information about financial instruments | Information about financial instruments Financial instruments at fair value The Company uses financial instruments, including derivatives such as foreign currency forward and options contracts, to reduce the foreign exchange risk on cash flows from firm and highly probable commitments denominated in euros. The following tables present fair values of derivative financial instruments at December 31, 2017 and 2019. There was no derivative financial instrument outstanding at December 31, 2018. At December 31, 2017 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S dollars) € 2,250 $ 53 Options (buy euros, sell U.S. dollars) 3,000 19 Total € 5,250 $ 72 At December 31, 2019 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S. dollars) € 3,000 $ 46 Options (buy euros, sell U.S. dollars) — — Total € 3,000 $ 46 The fair value of foreign currency related derivatives is included in the Consolidated Statement of Financial Position in "Prepaid and other receivables" at December 31, 2017 and 2019. The earnings impact of cash flow hedges relating to forecasted operating expense transactions is reported in operating expense. Realized and unrealized gains and losses on these instruments deemed effective for hedge accounting are deferred in accumulated other comprehensive income until the underlying transaction is recognized in earnings or the instruments are designated as hedges. During the year ended December 31, 2019 , the Company recorded a gain of $57,000 (loss of $69,000 and gain of $195,000 for the years ended December 31, 2018 and 2017 , respectively) in other comprehensive income (loss) related to the effective portion of the change in fair value of its cash flow hedges. During the year ended December 31, 2018, the amount reclassified from other comprehensive income to Consolidated Statement of Operations was a gain of $53,000 (loss of $44,000 during the year ended December 31, 2017 ). As there was no derivative financial instrument outstanding at December 31, 2018, no amount was reclassified from other comprehensive income in the year ended December 31, 2019. During the year ended December 31, 2017, the Company recognized a net loss of $3,000 related to the ineffective position of its hedging instruments. There was no ineffective portion of hedging instruments in the years ended December 31, 2018 and 2019. The derivatives have maturity dates of less than 12 months. Management believes counterparty risk on financial instruments is minimal since the Company deals with major banks and financial institutions. Financial risk management objectives and policies The Company’s principal financial liabilities comprise trade payables (current and non-current), lease liabilities, interest-bearing receivables financing, government loans, convertible debt and venture debt. The Company has various financial assets such as trade receivables and cash and cash equivalents, which arise directly from its operations, as well as from capital increases. The main risks arising from the Company’s financial instruments are foreign currency risk, credit risk, interest rate risk and cash flow liquidity risk. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below. Foreign currency risk The Company faces the following foreign currency exposures: • Operating activities, when revenues or expenses are denominated in different currencies from the functional currency of the entity carrying out these transactions. • Venture debt and government loans are denominated in euros, and lease liabilities are denominated in different currencies while the functional currency of the entity carrying out these transactions is the U.S. dollar. • Non-derivative monetary financial instruments that are denominated and settled in a currency different from the functional currency of the entity which holds them. Nearly 100% of total revenues and approximately 89% of total cost of sales are denominated in U.S. dollars. However, as a result of significant headcount and related costs from operations in France, which are denominated and settled in euros (the “structural costs”), the Company has transactional currency exposures which can be affected significantly by movements in the US dollar/euro exchange rates. Approximately 61% of operating expense is denominated in euros. (See Note 20.2 regarding hedging arrangements). If there were a 10% increase or decrease in exchange rate of the U.S. dollar to the euro, as measured using the Company's 2019 weighted average exchange rate of one euro = $1.1218 , the Company estimates the impact, in absolute terms, on operating expenses and on financial liabilities for the year ended December 31, 2019 would have been approximately $3.8 million . Credit risk It is the Company’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures and as such are considered to have low credit risk at initial recognition. The Company has subscribed to a credit insurance policy which provides assistance in determining credit limits and collection, in addition to some coverage of uncollectible amounts. In addition, receivable balances are monitored on an ongoing basis. There is a rebuttable presumption in IFRS 9 that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due. The Company considers that credit risk has not increased significantly on its outstanding not impaired trade receivables since initial recognition. The Company considers events of default based on the specific facts and circumstances relevant to the outstanding amount. The following table summarizes customers representing a significant portion of the Company’s total revenue: Customer Customer Location % of total revenues for the year ended December 31, Trade receivables at December 31, 2019 2018 2017 2019 2018 2017 A Taiwan 27 % 32 % 16 % $ 1,383,000 $ 5,881,000 $ 4,060,000 B Korea 22 % — % — % 2,680,000 — — C Taiwan 10 % Less than 10% — % 1,745,000 1,138,000 — D China Less than 10% 13 % Less than 10% — 1,858,000 911,000 E Taiwan Less than 10% Less than 10% 17 % $ 201,000 $ 2,526,000 $ 5,352,000 With respect to credit risk arising from the other financial assets, which comprise cash and cash equivalents, the Company’s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. Nearly all cash and cash equivalents are held in France at three large and international banks. Vendor concentration risk Access to foundry capacity is critical to the Company’s operations as a fabless semiconductor company. The Company depends on a sole independent foundry in Taiwan to manufacture its semiconductor wafers. The Company works with three vendors for manufacturing and testing chipsets and three vendors for assembling modules, but typically works with one dedicated vendor per product. Liquidity risk The Company monitors its risk of a shortage of funds using a cash flow planning tool. This tool considers the maturity of both its financial investments and financial assets (e.g. accounts receivables, other financial assets) and projected cash flows from operations. The following table includes our contractual obligations, including interest, for existing financial liabilities as of the following dates: Within 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years More than 5 years Total (in thousands) At December 31, 2017 Research project financing $ 899 $ 1,246 $ 671 $ 291 $ 297 $ 441 $ 3,845 Interest-bearing receivables financing 7,413 — — — — — 7,413 Government loans 656 523 510 497 245 — 2,431 Convertible debt — 15,730 9,175 — — — 24,905 Trade payables 13,023 — — — — — 13,023 Other current liabilities 5,138 — — — — — 5,138 $ 27,129 $ 17,499 $ 10,356 $ 788 $ 542 $ 441 $ 56,755 At December 31, 2018 Research project financing $ 238 $ 973 $ 2,043 $ 1,687 $ 375 $ 73 $ 5,389 Interest-bearing receivables financing 10,295 — — — — — 10,295 Government loans 499 487 475 234 — — 1,695 Convertible debt — 7,863 23,357 — — — 31,220 Venture debt 2,057 6,158 6,158 2,396 — — 16,769 Trade payables 9,412 — — — — — 9,412 Other current liabilities 4,654 — — — — — 4,654 $ 27,155 $ 15,481 $ 32,033 $ 4,317 $ 375 $ 73 $ 79,434 At December 31, 2019 Research project financing $ 739 $ 2,252 $ 2,601 $ 368 $ 72 $ — $ 6,032 Interest-bearing receivables financing 4,068 — — — — — 4,068 Government loans 478 466 229 — — — 1,173 Convertible debt (1) 7,863 26,792 6,124 — — — 40,779 Venture debt 6,042 6,042 2,351 — — — 14,435 Lease liabilities 1,147 832 973 980 965 1,307 6,204 Trade payables 9,057 1,000 250 — — — 10,307 Other current liabilities 4,540 — — — — — 4,540 $ 33,934 $ 37,384 $ 12,528 $ 1,348 $ 1,037 $ 1,307 $ 87,538 (1) Based on the existing contractual terms as of December 31, 2019. See Note 23 regarding the February 2020 amendment of the terms of the convertible note issued April, 2016. The Company’s liquidity risk for the next 12 months is described in note 2.1 . The term of the agreement with a strategic partner which gave rise the contract liability recorded in the amount of $16,334,000 as of December 31, 2019 are described under note 18. Capital management The primary objective of the Company’s capital management is to continue to execute according to its business plans and budgets in order to achieve profitability and positive cash flow, and to maximize shareholder value. Changes in liabilities arising from financing activities, including government grants (in thousands) January 1, 2017 Cash flows Foreign exchange movement Accrued interest Non-cash impact of amendment Other (1) December 31, 2017 Government grant advances and loans $ 5,745 2,600 915 90 — (2,728 ) $ 6,622 Convertible debt $ 16,338 — — 3,987 (3,097 ) (165 ) $ 17,063 Interest-bearing financing of receivables $ 7,712 (299 ) — — — — $ 7,413 Total $ 29,795 2,301 915 4,077 (3,097 ) (2,893 ) $ 31,098 (in thousands) January 1, 2018 Cash flows Foreign exchange movement Accrued interest Non-cash impact of amendment Other (1) December 31, 2018 Government grant advances and loans $ 6,622 985 (250 ) 151 — (1,146 ) $ 6,362 Convertible debt $ 17,063 3,202 — 4,435 (3,630 ) (1,347 ) $ 19,723 Venture debt $ — 13,369 (243 ) 327 — (819 ) $ 12,634 Interest-bearing financing of receivables $ 7,413 2,882 — — — — $ 10,295 Total $ 31,098 20,438 (493 ) 4,913 (3,630 ) (3,312 ) $ 49,014 (in thousands) January 1, 2019 * Cash flows Foreign exchange movement Accrued interest Other (1) December 31, 2019 Government grant advances and loans $ 6,362 1,006 (112 ) 220 145 $ 7,621 Convertible debt $ 19,723 7,967 — 5,844 (2,863 ) $ 30,671 Venture debt $ 12,634 (2,010 ) (240 ) 1,796 — $ 12,180 Lease liabilities $ 4,623 (1,922 ) 49 622 732 $ 4,104 Interest-bearing financing of receivables $ 10,295 (6,227 ) — — — $ 4,068 Total $ 53,637 (1,186 ) (303 ) 8,482 (1,986 ) $ 58,644 * Restated to reflect the impact of the adoption of IFRS 16 Leases (1) Amounts included in Other for 2018 and 2019 mainly represent the amounts recorded in equity related to the issuance of debt with an equity component, the reduction of grants as the corresponding expense is incurred and new grants to be received. In 2019, Other includes as well as additions in lease liabilities, which are non-cash. Amounts included in Other for 2017 mainly represent the reduction of grants as the corresponding expense is incurred and new grants to be received. | Financial assets and liabilities Carrying amount Fair value December 31, December 31, 2017 2018 2019 2017 2018 2019 (in thousands) Financial assets: Trade and other receivables Trade receivables $ 20,926 $ 15,884 $ 9,977 $ 20,926 $ 15,884 $ 9,977 Deposits and other receivables Deposits 402 394 401 402 394 401 Other financial assets Long-term investments 353 337 335 353 337 335 Financial instruments at fair value through other comprehensive income Cash flow hedges 72 — 46 72 — 46 Cash, cash equivalents and short-term investments 3,295 12,086 14,098 3,295 12,086 14,098 Total financial assets $ 25,048 $ 28,701 $ 24,857 $ 25,048 $ 28,701 $ 24,857 Total current $ 24,293 $ 27,970 $ 24,121 $ 24,293 $ 27,970 $ 24,121 Total non-current $ 755 $ 731 $ 736 $ 755 $ 731 $ 736 Financial liabilities: Lease liability — — 4,104 — — 4,104 Interest-bearing loans and borrowings: Interest-bearing receivables financing 7,413 10,295 4,068 7,413 10,295 4,068 Convertible debt 17,063 19,723 30,671 16,309 19,708 30,706 Venture debt — 12,634 12,180 — 12,634 12,180 Government loans 2,071 1,431 1,002 2,071 1,431 1,002 Research project financing 4,004 4,688 5,696 4,004 4,688 5,696 Trade and other payables (current and non current) 13,023 9,412 9,973 13,023 9,412 9,973 Total financial liabilities $ 43,574 $ 58,183 $ 67,694 $ 42,820 $ 58,168 $ 67,729 Total current $ 21,935 $ 21,160 $ 27,363 $ 21,935 $ 21,160 $ 27,328 Total non-current $ 21,639 $ 37,023 $ 40,331 $ 20,885 $ 37,008 $ 40,401 The carrying values of current financial instruments (cash and cash equivalents, short-term investments, trade receivables and trade and other payables, and interest-bearing receivables financing) approximate their fair values, due to their short-term nature. Long-term investments are primarily related to: • a bank guarantee secured by pledges of investments in money market funds issued in favor of the owners of leased office space to secure annual lease payments by the Company for its office space in Colombes; and • bank credit lines used in connection with the purchase of hedging instruments and finance lease, also secured by pledged money market funds. Government loans received from the financial agency of the French government were recorded as financial instruments in compliance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance. The use of different estimations, methodologies and assumptions could have a material effect on the estimated fair value amounts. The methodologies are as follows: • Cash, cash equivalents, short-term investments, accounts receivable, accounts payable, other receivable and accrued liabilities: due to the short-term nature of these balances, carrying amounts approximate fair value. • Long-term investments are composed of debt-based mutual funds with traded market prices. Their fair values amounted to $353,000 , $337,000 and $335,000 at December 31, 2017 , 2018 and 2019 , respectively. • Foreign exchange forward and option contracts: the fair values of foreign exchange forward and option contracts were calculated using the market price that the Company would pay or receive to settle the related agreements, by reference to published exchange rates. • The fair value of the debt components of convertible notes was calculated using the effective interest rate of the debt component of the last issued convertible notes in 2019. Fair Value Hierarchy The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: • Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities • Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly • Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data As at December 31, 2017 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2017 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 353 — $ 353 — Financial instruments at fair value through other comprehensive income: Cash flow hedge $ 72 — $ 72 — As at December 31, 2018 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2018 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 337 — $ 337 — As at December 31, 2019 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2019 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 335 — $ 335 — Financial instruments at fair value through other comprehensive income: Cash flow hedge 46 46 As of December 31, 2019, 2018 and 2017, there were no liabilities measured at fair value. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets Explanatory [Abstract] | |
Commitments and contingencies | Commitments and contingencies Contingencies From time to time, the Company has been and may become involved in legal proceedings arising in the ordinary course of its business. In August 2017, two securities class action lawsuits were filed, which were consolidated into a single lawsuit in September 2017, alleging violations of the U.S. federal securities laws by the Company, the Company's President and CEO, and the Company's Chief Financial Officer. The plaintiffs asserted claims primarily based on purported misrepresentations regarding Sequans’ revenue recognition policy in its Annual Reports on Form 20-F for the fiscal years ended 2015 and 2016. In particular, plaintiffs claim that an August 1, 2017 press release, in which the Company disclosed a $740,000 reduction in previously-recognized revenue, indicated that representations in earlier public disclosures regarding revenue were false or misleading. An amended complaint was filed in April 2018, and the Company and the individual defendants subsequently filed a motion to dismiss. On September 30, 2019, the Court issued a decision dismissing the claims against the Company's CFO, but permitting the claims against the Company and the Company's CEO to proceed. The action is presently in the initial stages of fact discovery, and the parties have agreed to a second mediation session in the latter half of March 2020 The Company intends to vigorously defend against this lawsuit. At this time, the Company is unable to estimate the ultimate outcome of this legal matter and its impact on us. In 2018, the Company recorded a provision for $700,000 , representing its deductible under its insurance policy. As of December 31, 2019, no provision remains. Payments above $700,000 will be covered by insurance until the maximum limit is reached. The Company currently does not expect that the costs of the ultimate resolution will exceed the insurance coverage. Management is not aware of any other legal proceedings that, if concluded unfavorably, would have a significant impact on the Company's financial position, operations or cash flows. Bank guarantee A bank guarantee was issued in favor of the owners of new leased office space in France, in order to secure six months of lease payments, for an amount of $330,000 as of December 31, 2019 ( $336,000 as of December 31, 2018). This guarantee was secured by the pledge of certificates of deposit and mutual funds for 100% of the amount of the guarantee. The total value of investments secured to cover this bank guarantee was $335,000 at December 31, 2019 ( $337,000 at December 31, 2018). Pledge of assets As security for the payment and repayment of the venture debt (see Note 14.2 to these Consolidated Financial Statements), the Company has granted to Harbert a first ranking pledge over the receivables the Company holds against its customers other than customers covered by the factoring agreement. The carrying amount was $4.5 million as of December 31, 2019 ( $4.1 million as of December 31, 2018). The Company has also agreed to grant to Harbert a first ranking pledge over specified bank accounts, which had a carrying amount of $13.9 million as of December 31, 2019 ( $11.9 million as of December 31, 2018) and a pledge over its patents, trademarks and other IP rights. Prior to an event of default, the amounts within the pledged accounts are not restricted; however, the pledge agreement stipulates certain covenants with which the Company must comply. The Company was in compliance as of December 31, 2019. Purchase commitments As of December 31, 2019 , the Company had $3.5 million of non-cancelable purchase commitments with its third-party manufacturer and suppliers for future deliveries of equipment and components, principally during 2020. |
Related party disclosures
Related party disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Related party disclosures | Related party disclosures There is no single investor who has the ability to control the Board of Directors or the vote on shareholder resolutions. As of December 31, 2019, there were three investors who each beneficially own 10% or more of the share capital of the Company: BPI France Participation - Fonds Large Venture a fund managed by Bpifrance, Nokomis Capital, L.L.C and AWM Investment Co. At the annual shareholders meeting on June 30, 2017, the shareholders approved the nomination of Mailys Ferrere to the board of directors. Mrs. Ferrere is employed by BPI France Participation - Fonds Large Venture. Bpifrance provided funding to two consortiums which include the Company in the context of long-term research projects (See Note 16.2 Research project financing) and in loans (See Note 20.3 Government loans). In April 2015, the Company completed the sale of a $12 million convertible note, in April 2016 the sale of a $6.0 million convertible note in September 2018 the sale of a $4.5 million convertible note, in May 2019 the sale of a $3.0 million convertible note and in August 2019 the sale of a $5.0 million convertible note, to an affiliate of Nokomis Capital, L.L.C., (see Note 14.1 Convertible debt). In 2017, the Company amended the terms of the notes issued in 2015 and 2016 and as part of the agreement, Wesley Cummins, a former (as of February 2020) representative of Nokomis Capital, L.L.C., became a board observer in November 2017, and on June 29, 2018, the shareholders approved Mr Cummins' nomination to the board of directors. As of December 31, 2019, the principal amount and accrued interest of the convertible notes held by an affiliate of Nokomis Capital, L.L.C amounts to $30.7 million . No other transactions have been entered into with these or any other related parties in 2017 , 2018 and 2019 , other than normal compensation (including share based payment arrangements) for and reimbursement of expenses incurred in their roles as Directors or employees of the Company. Compensation of key management personnel Year ended December 31, 2017 2018 2019 (in thousands) Fixed and variable wages, social charges and benefits expensed in the year $ 2,376 $ 2,348 $ 2,179 Share-based payment expense for the year 1,043 1,397 1,106 Board members fees to non-executive members 190 199 210 Total compensation expense for key management personnel $ 3,609 $ 3,944 $ 3,495 Key management personnel comprises the chief executive officer and all executive vice presidents reporting directly to him. The employment agreement with the chief executive officer calls for the payment of a termination indemnity of an amount equal to eighteen months of his gross annual base remuneration and 150% of bonus in the event of his dismissal without cause by the Board of Directors of the Company, as well as vesting of the ordinary shares that would have been vested during the twelve months following the end of his term. In case the dismissal would occur during the three months before or the twelve months following a change of control, he would be entitled to all the unvested share awards at the date of dismissal. For the year ended December 31, 2019 , we estimate that approximately $18,000 of the amounts set aside or accrued to provide pension, retirement or similar benefits to our employees was attributable to our executive officers. Directors’ interests in an employee share incentive plan The Company granted warrants to certain members of the Board of Directors during the years ended December 31, 2017 , 2018 and 2019 : - On June 30, 2017, the shareholders authorized the Board of Directors to grant to each of Messrs. de Pesquidoux, Maitre, Nottenburg, Pitteloud, Sharma and Slonimsky warrants to purchase 30,000 ordinary shares. On July 3, 2017, the Board used this authorization to make such grants with an exercise price of $3.31 per ordinary share. - On June 29, 2018, the shareholders authorized the Board of Directors to grant to each of Messrs. de Pesquidoux, Maitre, Nottenburg, Pitteloud, Sharma, Slonimsky and Cummings warrants to purchase 30,000 ordinary shares. On July 2, 2018, the Board used this authorization to make such grants with an exercise price of $2.04 per ordinary share. - On June 28, 2019, the shareholders authorized the Board of Directors to grant to each of Messrs. de Pesquidoux, Maitre, Nottenburg, Pitteloud, Sharma, Slonimsky and Cummings warrants to purchase 36,000 ordinary shares. On July 1, 2019, the Board used this authorization to make such grants with an exercise price of $0.89 per ordinary share. The board members were required to subscribe to the warrants at a price of €0.01 per warrant for the warrants granted in 2017 and 2018 and at a price of €0.00002778 per warrant for the warrants granted in 2019. Share-based payment expense incurred in connection with these transactions amounted to $28,000 in the year ended December 31, 2019 ( 2018 : $65,000 ; 2017 : $89,000 ). |
Events after the reporting date
Events after the reporting date | 12 Months Ended |
Dec. 31, 2019 | |
Events After Reporting Period [Abstract] | |
Events after the reporting date | Events after the reporting date Subsequent events up to the date the consolidated financial statements were authorized for issue were as follows : On December 10, 2019, the Company entered into an agreement with a technology company based in Israel to transfer a team of 21 engineers to its Israel-based subsidiary for the purpose of accelerating 5G new product development, subject to approval of the transfer by the Israel Tax Authority, which approval was received January 29, 2020. In connection with this agreement, the Company acquired some physical assets for $220,000 and, subject to the engineers remaining with the Company for six months from February 2020, agreed to pay $150,000 in the first quarter of 2020 and $1,430,000 in June 2024. At its meeting of February 4, 2020, the Board of Directors granted to employees 880,896 restricted share awards representing 220,224 ADS with vesting over four years ; no grants were made to executive management. Effective February 11, 2020, the Company amended the terms of the convertible note issued April 27, 2016 to Nokomis Capital, L.L.C.(Nokomis), to extend the maturity of the note to April 14, 2021. In addition, the conversion price was reduced from $2.25 to $1.225 per Ordinary Share, or from $9.00 to $4.90 per ADS. Effective March 20, 2020, the convertible notes issued in April 2015, April 2016, September 2018, May 2019 and August 2019 were amended to grant the Company three options to extend the term of each note, except for the August 2019 notes which have two options to extend. Each option will give the Company the right to extend the term of such note by one year and consequently reset the conversion price to a 20% premium above the 20-day volume weighted average price (VWAP) if it is lower than the existing conversion price. On the first option exercise, the payment-in-kind interest (PIK) will stay at 7% but the holder will be granted a warrant for 10% of the value of the note with a three year term, at an exercise price of 20% premium above 20-day VWAP. On the second option exercise, the PIK will be adjusted to 9.5% , the previous warrants granted on the first option exercise will be extended by one year and the holder will be granted an additional warrant for 15% of the value of the note with a three year term, at an exercise price of 20% premium above 20-day VWAP. On the third option exercise, the PIK will be adjusted to 13.5% , and the holder will be granted an additional warrant for 20% of the value of the note with a three year term, at an exercise price of 20% premium above 20-day VWAP. If at any time, the holder converts a note prior to the date of April 2022, it will receive an extra year’s worth of PIK so as to incentivize early conversion. In consideration for entering into the amendments, the warrants that Nokomis owns that were scheduled to expire April 2021 were extended to April 2024 upon the signing of the note amendments. The effects of the COVID-19 first identified in Wuhan, Hubei Province, China can have a potential impact on the production of the Company's products in China or elsewhere, our ability to operate our business during government shelter-in-place orders, or on the demand for the Company's products by customers whose supply chain is impacted. Any protracted disruption of our or our suppliers’ or customers’ operations would likely impact our sales and operating results. |
Summary of significant accoun_2
Summary of significant accounting and reporting policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Statement of compliance | Statement of compliance The Consolidated Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”) and whose application is mandatory for the year ended December 31, 2019 . Comparative figures are presented for December 31, 2017 and 2018 . The accounting policies are consistent with those of the same period of the previous financial year, except for the changes disclosed in Note 2.2 to the Consolidated Financial Statements. The Consolidated Financial Statements of the Company for the years ended December 31, 2017 , 2018 and 2019 have been authorized for issue in accordance with a resolution of the board of directors on March 23, 2020 . |
Basis of consolidation | Basis of consolidation The Consolidated Financial Statements comprise the financial statements of Sequans Communications S.A., which is the ultimate parent of the group, and its subsidiaries as of and for the years ended December 31, 2019 , 2018 and 2017 : Name Country of incorporation Year of incorporation % equity interest Sequans Communications Ltd. United Kingdom 2005 100 Sequans Communications Inc. United States 2008 100 Sequans Communications Ltd. Pte. Singapore 2008 100 Sequans Communications Israel (2009) Ltd. Israel 2010 100 The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions are eliminated in full. The subsidiaries have been fully consolidated from their date of incorporation. |
New and amended standards and interpretations and Standards issued but not yet effective | New and amended standards and interpretations The accounting policies used in 2019 are consistent with those of the previous financial year, except for the following new and amended IFRS and IFRIC interpretations effective as of January 1, 2019 : • IFRS 16 - Leases Since January 1, 2019, the Company has applied IFRS 16 Leases which aligns the accounting treatment of operating leases of lessees with that already applied to finance leases (i.e. recognition in the balance sheet of a liability for future lease payments, and of an asset for the associated rights of use). Application of IFRS 16 requires a change in the presentation of lease expenses both in the income statement (lease expenses are presented as depreciation expense and interest expense) and in the statement of cash flows (the lease payments are reported as a cash outflow from financing activities). In accordance with the transition options of IFRS 16 elected by the Company, the Consolidated Financial Statements for the years ended December 31, 2018 and 2017 have not been restated since Sequans has applied the modified retrospective transition method. Under the modified retrospective transition method, the Company recognized a lease liability at January 1, 2019 for leases previously classified as operating leases applying IAS 17 and IFRIC 4 and measured lease liabilities at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate at the date of initial application. The Company also recognized a corresponding right-of-use asset at January 1, 2019. The Company uses the two capitalization exemptions provided by the standard: • lease contracts with a duration of less than 12 months; and • lease contracts for which the underlying asset has a low value, which has been defined by the Company to be below $5,000. The Company has also applied the following practical expedients at the transition date: • accounting for leases for which the lease term ends within 12 months of the date of initial application as short-term leases. Lease payments under such short-term leases are accounted for as operating expenses in the Consolidated Statement of Operations. • no reassessment of whether a contract is, or contains, a lease at the date of initial application. As of January 1, 2019, the Company recognized a right-of-use asset equal to the amount of the lease liability. The weighted-average incremental borrowing rate used by the Company for lease liabilities recorded as of January 1, 2019 was 14.2% . Due to the adoption of IFRS 16, the Company’s operating results improved, while interest expense increased due to the change in the accounting for expenses of leases that were classified as operating leases under IAS 17. The numerical impacts of the adoption are detailed under Note 14. The lease liability as at January 1, 2019 can be reconciled to the operating lease commitments as of December 31, 2018, as follows : (in thousands) Operating lease commitments as at December 31, 2018 $ 2,058 Weighted-average discount rate as at January 1, 2019 14.2 % Discounted operating lease commitments as at January 1, 2019 1,951 Add: Lease payments relating to renewal periods not included in operating lease commitments as at December 31, 2018 2,352 Non lease components 318 Other 2 Lease liabilities as at January 1, 2019 4,623 For the year ended December 31, 2019, rental charges (previously recorded under Operating expenses) were accounted for as follows: • Depreciation of right-of-use assets recognized in "Property, plant and equipment" resulted in Operating expenses of $1,354,000 . • Interest expense on lease liabilities was recorded in Finance costs for $622,000 . • IFRIC 23 Uncertainty over Income Tax Treatments This Interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. The interpretation is applied by the Company from January 1, 2019. In accordance with IFRIC 23, the Company determines whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments and records a liability when it is probable that a tax expense will be incurred, assuming that the tax position will be examined by the tax authorities. Such liability is measured using the approach that better predicts the resolution of the uncertainty. Adoption of this interpretation had no impact on the Consolidated Financial Statements. • Amendments to IFRS 9: Prepayments with negative compensation features The amendments clarify how to classify particular pre-payable financial assets and how to account for financial liabilities following a modification. These amendments were effective as of January 1, 2019. Adoption of these amendments had no impact on the Consolidated Financial Statements. • A mendments to IAS 28: Investments in associates and joint ventures which was effective as of January 1, 2019 had no impact on the Consolidated Financial Statements. • Annual Improvements to IFRS (2015-2017), including amendments to IFRS 3: Business Combinations, amendments to IAS 12 : Income Taxes, and amendments to IAS 23 : Borrowing Costs, are applicable from annual periods commencing on or after January 1, 2019. Adoption of these improvements had no impact on the Consolidated Financial Statements. Standards issued but not yet effective Standards and interpretations issued but not yet effective up to the date of issue of the Company’s Consolidated Financial Statements are listed below. The Company intends to adopt these standards when they become effective: • Amendments to IFRS 7, IFRS 9, IAS 39 : The amendments provide temporary reliefs which enable hedge accounting to continue during the period of uncertainty before the replacement of an existing interest rate benchmark with an alternative nearly risk-free interest rate (an RFR). The amendments will be effective for annual periods beginning on or after 1 January 2020. The Company does not expect that these amendments will have a material impact on the Consolidated Financial Statements. • Amendments to IFRS 3 : The amendments include a revised definition of at business. The amendments will be effective for annual periods beginning on or after 1 January 2020. The Company is currently assessing the impact of these amendments. |
Functional currencies and translation of financial statements denominated in currencies other than the U.S. dollar | Functional currencies and translation of financial statements denominated in currencies other than the U.S. dollar The Consolidated Financial Statements are presented in U.S. dollars, which is also the functional currency of Sequans Communications S.A. The Company uses the U.S. dollar as its functional currency due to the high percentage of revenues, cost of revenue, capital expenditures and operating costs, other than those related to headcount and overhead, which are denominated in U.S. dollars. Each subsidiary determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. As at the reporting date, the assets and liabilities of each subsidiary are translated into the presentation currency of the Company (the U.S. dollar) at the rate of exchange in effect at the Statement of Financial Position date and their Statement of Operations is translated at the weighted average exchange rate for the reporting period. The exchange differences arising on the translation are taken directly to a separate component of equity (“Cumulative translation adjustments”). |
Foreign currency transactions | Foreign currency transactions Foreign currency transactions are initially recognized by Sequans Communications S.A. and each of its subsidiaries at their respective functional currency rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of exchange in effect at the reporting date. All differences are taken to the Consolidated Statement of Operations within financial income or expense. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the initial transactions. |
Earnings (loss) per share | Earnings (loss) per ordinary share and per ADS Basic earnings (loss) amounts per ordinary share and per ADS are computed using the weighted average number of shares outstanding during each period. Diluted earnings per ordinary share and per ADS include the effects of dilutive options and warrants as if they had been exercised, unless the effect would be anti-dilutive. |
Revenue recognition | Revenue recognition The Company’s total revenue consists of product revenue and other revenue. Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the fair value of the consideration to which the Company is entitled, excluding sales taxes or duties. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. When a contract includes multiple promised goods and services, the Company evaluates each component to determine whether they represent separate performance obligations and determines the appropriate allocation of the contract consideration to each identified performance obligation based on estimated relative stand-alone selling prices. If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods or services to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Specifically, milestone payments in development services contracts represent variable consideration, the receipt of which is dependent upon the achievement of technical milestones. The Company sometimes receives advance payments from customers for the provision of development services. The Company determines if there is a significant financing component for these contracts considering the length of time between the customers’ payment and the transfer of control of the goods and services. When a significant financing component has been identified, the transaction price for these contracts is discounted, using the rate that would be reflected in a separate financing transaction at contract inception. The Company applies the practical expedient for short-term advances received from customers. That is, the promised amount of consideration is not adjusted for the effects of a significant financing component if the period between the transfer of the promised good or service and the payment is one year or less. Product revenue Substantially all of the Company’s product revenue is derived from the sale of semiconductor solutions for 4G wireless applications. Revenue from the sale of products is recognized at a point in time when the Company satisfies its performance obligation to the buyer, whether direct end customer, end customer's manufacturing partner or distributor. This occurs when there is no continuing managerial involvement to the degree usually associated with ownership nor effective control over the sale of products is retained, which is based on the specified Incoterms, but usually occurs on shipment of the goods. The Company is the principal in all product sales regardless of customer type. Products are not sold with a right of return but are covered by warranty. This is an assurance-type warranty. The Company does not accrue for a general warranty obligation as the Company has not historically incurred and does not expect material costs. Although the products sold have embedded software, the Company believes that software is incidental to the products it sells. Other revenue Other revenue consists of the sale of licenses to use the Company’s technology solutions and fees for the associated annual software maintenance and support services, as well as the sale of technical support and development services. Development services include advanced technology development services for technology partners and product development and integration services for customers. Revenue from the sale of licenses is recognized at a point in time when the Company satisfies its performance obligation which occurs when the software has been delivered to the customer (assuming no other significant obligations exist), as licenses provide the right to use the software as it exists when made available to the customer. Revenue from the sale of software maintenance and support services is recognized over time, over the period of the maintenance (generally one year). When the first year of maintenance is included in the software license price, an amount generally equal to the negotiated rate for one year of maintenance is deducted from the value of the license and recognized as revenue over time, over the period of maintenance as described above. The difference between license and maintenance services invoiced and the amount recognized in revenue is recorded as deferred revenue. Revenue from technical support and development services is generally recognized over time using the percentage-of-completion method. For each service contract, the Company determines whether the pattern of transfer of control meets one of the criteria for revenue recognition over time: (a) the customer simultaneously receives and consumes the benefits provided by the entity's performance as the entity performs (b) the Company's performance creates or enhances an asset (for example, work in progress) that the customer controls as the asset is created or enhanced or (c) the Company's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Generally, the support and development contracts meet one or more of these criteria, based on the facts and circumstances both within the contract and the nature of the services provided. Typically, the customers consume the services as they are provided through ongoing technical support or through an iterative development process. Certain contracts also include terms which allow the customer to have control over the asset as it is created or provide Sequans the right to payment for all work performed to date. Due to revenue recognition over time, contract assets are created for services provided that Sequans does not yet have the right to invoice. When a contract does not meet one of the criteria above, revenue is recognized at a point in time, when there is evidence of transfer of control, which typically occurs upon achievement of certain or all contract milestones. Percentage-of-completion is calculated based on the input method using estimated costs as a measure of performance completed. The costs associated with these arrangements are recognized as incurred. Revenue from development contracts where no related direct costs were identified amounted to $1,724,000 for the year ended December 31, 2019 ( $389,000 in 2018 and $1,321,000 in 2017 ). Revenue recognition The Company’s policy for revenue recognition, in instances where multiple deliverables are sold contemporaneously to the same counterparty, is in accordance with IFRS 15 Revenue from contracts with customers . The application of IFRS 15 to contracts with customers requires management to make certain judgments, the most significant of which are outlined below. These judgments are based on an analysis of the facts and circumstances surrounding the transactions on a contract-by-contract basis. Determination of performance obligations within a contract The Company applies judgment in determining whether a promised good or service is a performance obligation under the terms of the contract and whether multiple promised goods or services should be accounted for separately or together as a bundle. Allocation of contract consideration to distinct performance obligations based on their relative stand-alone selling prices Typically, contracts state the value of individual promised goods and services directly. However, in instances where the fair value is not observable, management applies judgment in determining the relative stand-alone selling price for goods and services. Estimation of percentage-of-completion based on the input method For service contracts that are recognized over time based on the percentage-of-completion, the Company sets up an initial budget at contract inception and tracks the progress to completion based on time and costs incurred by the employees directly working on each project. Management reviews the progress and performance of open contracts in order to determine the best estimate of estimated costs at completion on a quarterly basis and updates the revenue recognized as necessary. |
Cost of revenue | Cost of revenue Cost of product revenue includes all direct and indirect costs incurred with the sale of products, including shipping and handling. Cost of other revenue includes direct costs incurred to support the obligations covered by development services contracts (mainly employees and subcontractors costs). Research and development costs associated with product development (including normal customer support which generates product improvement) are recorded in research and development expenses. |
Research and development costs | Research and development costs Research costs are expensed as incurred. Development costs are recognized as an intangible asset if the Company can demonstrate: • the technical feasibility of completing the intangible asset so that it will be available for use or sale; • its intention to complete the asset and use or sell it; • its ability to use or sell the asset; • how the asset will generate future economic benefits; • the availability of adequate resources to complete the development and to use or sell the asset; and • the ability to measure reliably the expenditure during development. The asset is tested for impairment annually. Development costs that meet the criteria for capitalization have been recorded as intangible assets. (See Notes 4.4 and 8 to the Consolidated Financial Statements). Beginning in 2015, certain development costs incurred at the end of the product development cycle when the criteria for capitalization are met, became material as the Company began making its product available on more operator networks which require significant testing and qualification work in order to finalize the product for sale on that network. Beginning in 2017, the Company capitalized costs related to the development of the chipsets for LTE Category M, in 2018 the Company capitalized costs for the development of the Monarch and Monarch 2 and in 2019 the Company also capitalized costs for the development of Calliope 2, a solution based on a new LTE category called Category 1 Half Duplex. Research and development costs associated with product development (including normal customer support which generates product improvements) are recorded in operating expense. In some cases, the Company has negotiated agreements with customers and partners whereby the Company provides certain development services beyond its normal practices or planned product roadmap. Amounts received from these agreements are recorded in other revenue. Direct costs incurred by the Company as a result of the commitments in the agreements are recorded in cost of other revenue. Other research and development costs related to the projects covered by the agreements, but which would have been incurred by the Company without the existence of such agreements are recorded in research and development expense. |
Government grants, loans and research tax credits | Government grants, loans and research tax credits The Company operates in certain jurisdictions which offer government grants or other incentives based on the qualifying research expense incurred or to be incurred in that jurisdiction. These incentives are recognized as the qualifying research expense is incurred if there is reasonable assurance that all related conditions will be complied with and the grant will be received. When the grant relates to an expense item, it is recognized as a reduction of the related expense over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Any cash received in advance of the expenses being incurred is recorded as a liability. Some long-term research projects are also financed through low-interest forgivable loans. The present value of forgivable loans is calculated based on expected future payments discounted using the interest rate applied for standard loans with the same maturity. The difference between present value and amount received is accounted for as a grant. Where loans or similar assistance provided by governments or related institutions are interest-free, the present value is calculated based on expected future payments discounted using the interest rate applied for standard loans with the same maturity. The difference between present value and amount received is accounted for as a grant. The Company also benefits from research incentives in the form of tax credits which are detailed in Note 4.4 to the Consolidated Financial Statements. When the incentive is available only as a reduction of taxes owed, such incentive is accounted for as a reduction of tax expense; otherwise, it is accounted for as a government grant with the benefit recorded as a reduction of research and development costs, whether capitalized or expensed. |
Financial income and expense | Financial income and expense Financial income and expense include: • interest expense related to venture debt, accounts receivable financing, the debt component of convertible debt and government loans, lease contracts, upfront payments, financing components of customer contracts and a supplier payable with extended payment terms; • other expenses paid to financial institutions for financing operations; • foreign exchange gains and losses • impact of convertible debt amendments; and • impact of convertible debt reimbursement. The Company reflects foreign exchange gains and losses related to hedges (through derivatives) of euro-based operating expenses in operating expenses. |
Current income tax | Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. |
Deferred income tax | Deferred income tax Deferred income tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognized for all taxable temporary differences, except with respect to taxable temporary differences associated with investments in subsidiaries where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forwards of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at the reporting date and adjusted to the extent that it is probable that sufficient future taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date. Deferred income tax relating to items recognized directly in equity is recognized in equity. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right of offset exists. |
Value added tax | Value added tax Revenue, expenses and assets are recognized net of the amount of value added tax except: • where the value added tax incurred on a purchase of assets or services is not recoverable from the tax authorities, in which case the value added tax is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables that are stated with the amount of value added tax included. Value added tax recoverable consists of value added tax paid by the Company to vendors and suppliers located in the European Union and recoverable from the tax authorities. Value added tax recoverable is collected on a quarterly basis. |
Inventories | Inventories Inventories consist primarily of the cost of semiconductors, including wafer fabrication, assembly, testing and packaging; components; and modules purchased from subcontractors. Inventories are valued at the lower of cost (determined using the weighted average cost method) or net realizable value (estimated market value less estimated cost of completion and the estimated costs necessary to make the sale). The Company writes down the carrying value of its inventories for estimated amounts related to the lower of cost or net realizable value, obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value. The estimated net realizable value of the inventory is based on historical usage and assumptions about future demand, future product purchase commitments, estimated manufacturing yield levels and market conditions on a product-by-product basis. When the circumstances that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of the write-down is reversed (i.e. the reversal is limited to the amount of the original write-down) so that the new carrying amount is the lower of the cost and the revised net realizable value. Inventories As disclosed in Note 2.3 to the Consolidated Financial Statements, the Company writes down the carrying value of its inventory to the lower of cost or net realizable value. The estimated net realizable value of the inventory is based on historical usage and assumptions about future demand, future product purchase commitments, estimated manufacturing yield levels and market conditions on a product-by-product basis. Actual demand may differ from the forecast established by the Company, which may materially impact recorded inventory values and cost of revenue. |
Financial assets | Financial assets Financial assets are classified, at initial recognition, as (1) measured at amortized cost, (2) fair value through other comprehensive income (OCI), or (3) fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and Sequans’ business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value. Receivables Trade receivables are measured at amortized cost. Impairment losses on trade accounts receivable are estimated using the expected loss method, in order to take into account the risk of payment default throughout the lifetime of the receivables. Based on an analysis of historical credit losses, the Company has not applied any expected credit losses to its outstanding receivables as of the reporting date beyond specific provisions for doubtful accounts. The Company records an allowance for any specific account it considers as doubtful based on the particular circumstances of the account. The carrying amount of the receivable is thus reduced through the use of an allowance account, and the amount of the charge is recognized on the line “General and administrative expenses” in the Consolidated Statement of Operations. Subsequent recoveries, if any, of amounts previously provided for are credited against the same line in the Consolidated Statement of Operations. When a trade accounts receivable is uncollectible, it is written-off against the allowance account for trade accounts receivable. Short-term investments Short-term investments are financial instruments with an initial maturity of greater than 90 days, but less than one year, and are reported as current financial assets. Deposits Deposits are reported as non-current financial assets (loans and receivables) when their initial maturity is more than twelve months. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents in the Consolidated Statements of Financial Position includes cash at banks, term deposits and money market funds, which correspond to highly liquid investments readily convertible to known amounts of cash and subject to an insignificant risk of change in value. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment loss. Depreciation is computed using the straight-line method over the estimated useful lives of each component. The Company presents right-of-use of lease contracts in property, plant and equipment and right of use assets are depreciated on a straight-line basis over the lease term. The useful lives most commonly used are the following: Machinery and equipment 3 to 5 years Building and leasehold improvements Lesser of 6 years or the life of the lease Computer equipment 3 years Furniture and office equipment 5 years Impairment tests are performed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If any indication exists, the Company estimates the asset’s recoverable amount, which is the higher of the fair value less cost to sell and the value in use. Where the carrying amount exceeds that recoverable amount, the asset is considered impaired and it is written down to its recoverable amount. Depreciation expense is recorded in cost of revenue or operating expenses, based on the function of the underlying assets. |
Intangible assets | Intangible assets Intangible assets, which primarily consist of purchased licenses for development or production technology and tools, as well as standard-related patent licenses and development costs meeting the criteria for capitalization, are stated at cost less accumulated amortization and any accumulated impairment loss. Amortization is computed using the straight-line method over the estimated useful life of each component. Acquired licenses are amortized over their contractual life or five years in the case of perpetual licenses. Capitalized development costs are generally amortized over periods ranging from 3 to 5 years, representing the expected life of the related technology. Useful lives are reviewed on a regular basis and changes in estimates, when relevant, are accounted for on a prospective basis. The amortization expense is recorded in cost of revenue or operating expenses, based on the function of the underlying assets. Impairment tests are performed whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If any indication exists, the Company estimates the asset’s recoverable amount, which is the higher of the fair value less cost to sell and the value in use. Where the carrying amount exceeds that recoverable amount, the asset is considered impaired and it is written down to its recoverable amount. |
Leases | Lease contracts Except for leases related to low-value assets and short-term lease, lease contracts, as defined under IFRS 16 "Leases", are recorded in the Statement of Consolidated Financial Position, through the recognition of: • an asset representing a right-of-use of the asset leased during the lease term of the contract; and • a liability related to the payment obligation. At the commencement date of the lease, the Company recognizes a lease liability measured at the present value of the remaining lease payments to be made over the lease term, discounted using the Company’s incremental borrowing rate. The liability increases by the accrued interest resulting from the initial discounting of the lease liability and decreases by the payments made. Right-of-use assets are depreciated on a straight-line basis over the lease term and tested for impairment when required. |
Costs of Public Offerings | Costs of Equity Transactions Incremental costs directly attributable to the equity transaction are recorded as a deduction from equity. |
Provisions | Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in operating income (loss) net of any reimbursement. Provisions include the provision for pensions and post-employment benefits. Pension funds in favor of employees are maintained in France, the United Kingdom, Singapore, the United States and Israel, and they comply with the respective legislation in each country and are financially independent of the Company. The pension funds are generally financed by employer and employee contributions and are accounted for as defined contribution plans with the employer contributions recognized as expense as incurred. There are no actuarial liabilities in connection with these plans. French law also requires payment of a lump sum retirement indemnity to employees based on years of service and annual compensation at retirement. Benefits do not vest prior to retirement. This defined benefit plan is self-funded by the Company. It is calculated as the present value of estimated future benefits to be paid, applying the projected unit credit method whereby each period of service is seen as giving rise to an additional unit of benefit entitlement, each unit being measured separately to build up the final obligation. Following the application of IAS 19 revised, actuarial gains and losses are recognized in equity. The actualization rate is based on iBoxx Corporates AA. |
Share-based payment transactions | Share-based payment transactions Employees (including senior executives and members of the board of directors) and certain service providers of the Company receive remuneration in the form of share-based payment transactions, whereby they render services as consideration for equity instruments (“equity-settled transactions”). The cost of equity-settled transactions is measured by reference to the fair value at the date on which they are granted. The exercise price is based on closing market price on the date of grant. The cost of equity-settled transactions is recognized, together with a corresponding increase in equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which the beneficiary becomes fully entitled to the award (the “vesting date”). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest which includes assumptions on the number of awards to be forfeited due to the employees’ failing to fulfill the service condition, and forfeitures following the non-completion of performance conditions. The Consolidated Statement of Operations charge or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. Share-based compensation As disclosed in Note 13 to the Consolidated Financial Statements, the Company has various share-based compensation plans for employees and non-employees that may be affected, as to the expense recorded in the Consolidated Statements of Operations, by changes in valuation assumptions. Fair value of stock options is estimated by using the binomial model on the date of grant based on certain assumptions, including, among others expected volatility, the expected option term, the risk-free interest rate and the expected dividend payout rate. The fair value of the Company’s shares underlying stock option grants equals the closing price on the New York Stock Exchange on the date of grant. |
Financial liabilities | Financial liabilities Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. Non derivative financial liabilities are subsequently measured at amortized cost whereas derivative liabilities not designated as hedging instruments are recognized at fair value through profit or loss. Convertible debt The Company evaluates at initial recognition of a convertible debt the different components and features of the hybrid instruments and determines whether these elements are equity instruments or embedded derivatives which require bifurcation. In subsequent periods, the liability component is accounted for using the effective interest method, based on the expected maturity of the debt. The equity component is not remeasured, while embedded derivatives unless closely related to the host instruments are recorded at fair value through the Consolidated Statement of Operations. As described in Note 14.1 to the Consolidated Financial Statements, the Company issued debt with an option to convert into shares of the Company in 2015 and 2016. This option component has been accounted for as an embedded derivative and recorded as a financial liability: • On the date of issue, the fair value of the embedded derivative is estimated based on a Black-Scholes valuation model. The debt component equals the present value of future contractual cash flows for a similar instrument with the same conditions (maturity, cash flows) excluding any option or any obligation for conversion or redemption in shares. • Subsequently, the debt component is accounted for based on amortized cost, using the effective interest rate calculated at the date of issue and the embedded derivative is accounted as a financial liability, with changes in fair value recognized in the statement of operations until the date when the conversion rate is fixed. At this date, the fair value of the derivative - if not exercised - is reclassified in equity. Costs incurred related to the convertible debt are deducted from the liability component and from the embedded derivative, proportionally. The part related to the embedded derivative has been recognized in the Consolidated Statements of Operations in “Other financial expenses”. On October 30, 2017, the convertibles notes were amended to extend the term of the notes and reduce the conversion rate for one convertible debt agreement (see Note 14.1 ). The change in fair value of the conversion options before and after the amendment has been recorded in Other Capital Reserves in shareholders’ equity. The debt components on October 30, 2017 were re-measured based on the extended term of the notes using the effective interest rate calculated at the date of issue of each convertible note. The impact of the term extension and reduction of the conversion rate has been recorded in the Consolidated Statements of Operations in "Convertible debt amendments". On September 27, 2018, the terms of the note issued on April 15, 2015 were amended to extend by two years the maturity of the note to April 14, 2021, and to reduce the conversion rate. It was considered to be the equivalent of an extinguishment of the existing debt and issuance of new debt (“derecognition” method of accounting). Therefore, the fair value of the debt just prior to amendment was estimated in order to record a loss on extinguishment in the Consolidated Statement of Operations in “Convertible debt amendments”. The amended debt was recorded at its fair value assuming a market rate of interest, with the estimated value of the conversion option in equity as the conversion rate is fixed. On September 27, 2018, May 7, 2019 and August 16, 2019, the Company issued notes with options to convert into shares of the Company. The option components have been accounted for in equity at their fair value at the date of issuance and are not remeasured. The debt component portions have been recorded as a financial liability and are subsequently measured at amortized cost, using the effective interest rate calculated at the date of issue. Venture debt As described in Note 14.2 to the Consolidated Financial Statements, the Company entered into a bond issuance agreement on October 26, 2018, with warrants attached. The issuance proceeds were allocated between the debt component and the equity component (the warrants). The value of the warrants was recorded in Other Capital Reserves in shareholders’ equity. The debt component was recorded as a financial liability and is subsequently measured at amortized cost, using the effective interest rate calculated at the date of issue. Short-term debt secured by accounts receivables As described in Note 14.3 to the Consolidated Financial Statements, the Company has a factoring agreement with a French financial institution. The Company transfers to the finance company all invoices issued to qualifying customers, and the customers are instructed to settle the invoices directly with the finance company. Because there is recourse to the Company for amounts that are overdue, the Company retains all receivables on its Consolidated Statement of Financial Position until they are paid and any amounts drawn on the line of credit are reflected in short-term debt. The Company pays a commission on the face value of the accounts receivable submitted, which is recorded in General and Administration expense, and pays interest on any draw-down of the resulting line of credit. |
Derivative financial instruments and hedge accounting | Derivative financial instruments and hedge accounting The Company uses financial instruments, including derivatives such as foreign currency forward and options contracts, to reduce the foreign exchange risk on cash flows from firm and highly probable commitments denominated in euros. The effective portion of the gain or loss on the hedging instrument is recognized directly as other comprehensive income (loss) in the cash flow hedge reserve, while any ineffective portion is immediately accounted for in financial results in the Consolidated Statement of Operations. Amounts recognized as other comprehensive income (loss) are transferred to the Consolidated Statement of Operations when the hedged transaction affects profit or loss. If the forecasted transaction is no longer expected to occur, the cumulative gain or loss previously recognized in equity is transferred to the Consolidated Statement of Operations. All derivative financial instruments are recorded at fair value. Changes in fair value are recorded in current earnings or other comprehensive income (loss), depending on whether the derivative is designated as a hedge, its effectiveness as a hedge, and the type of hedge transaction. Any change in the fair value of the derivatives deemed ineffective as a hedge is immediately recognized in earnings. |
Commitments | Commitments Commitments comprise primarily purchase commitments with third-party manufacturers for future deliveries of equipment and components, which are described in Note 21 to the Consolidated Financial Statements. |
Significant accounting judgments, estimates and assumptions | In the process of applying the Company’s accounting policies, management must make judgments and estimates involving assumptions. These judgments and estimates can have a significant effect on the amounts recognized in the financial statements and the Company reviews them on an ongoing basis taking into consideration past experience and other relevant factors. The evolution of the judgments and assumptions underlying estimates could cause a material adjustment to the carrying amounts of assets and liabilities as recognized in the financial statements. The most significant management judgments and assumptions in the preparation of these financial statements are: Revenue recognition The Company’s policy for revenue recognition, in instances where multiple deliverables are sold contemporaneously to the same counterparty, is in accordance with IFRS 15 Revenue from contracts with customers . The application of IFRS 15 to contracts with customers requires management to make certain judgments, the most significant of which are outlined below. These judgments are based on an analysis of the facts and circumstances surrounding the transactions on a contract-by-contract basis. Determination of performance obligations within a contract The Company applies judgment in determining whether a promised good or service is a performance obligation under the terms of the contract and whether multiple promised goods or services should be accounted for separately or together as a bundle. Allocation of contract consideration to distinct performance obligations based on their relative stand-alone selling prices Typically, contracts state the value of individual promised goods and services directly. However, in instances where the fair value is not observable, management applies judgment in determining the relative stand-alone selling price for goods and services. Estimation of percentage-of-completion based on the input method For service contracts that are recognized over time based on the percentage-of-completion, the Company sets up an initial budget at contract inception and tracks the progress to completion based on time and costs incurred by the employees directly working on each project. Management reviews the progress and performance of open contracts in order to determine the best estimate of estimated costs at completion on a quarterly basis and updates the revenue recognized as necessary. Trade receivables The Company records an allowance for any specific account it considers as doubtful based on the particular circumstances of the account. Additional allowances could be required if we receive information that the financial condition of our customers has deteriorated, resulting in an impairment of their ability to make payments, or there are indicators that amounts receivable will become uncollectible. Inventories As disclosed in Note 2.3 to the Consolidated Financial Statements, the Company writes down the carrying value of its inventory to the lower of cost or net realizable value. The estimated net realizable value of the inventory is based on historical usage and assumptions about future demand, future product purchase commitments, estimated manufacturing yield levels and market conditions on a product-by-product basis. Actual demand may differ from the forecast established by the Company, which may materially impact recorded inventory values and cost of revenue. Share-based compensation As disclosed in Note 13 to the Consolidated Financial Statements, the Company has various share-based compensation plans for employees and non-employees that may be affected, as to the expense recorded in the Consolidated Statements of Operations, by changes in valuation assumptions. Fair value of stock options is estimated by using the binomial model on the date of grant based on certain assumptions, including, among others expected volatility, the expected option term, the risk-free interest rate and the expected dividend payout rate. The fair value of the Company’s shares underlying stock option grants equals the closing price on the New York Stock Exchange on the date of grant. Fair value of financial instruments Fair value corresponds to the quoted price for listed financial assets and liabilities. The Company determined that the fair values of cash, trade receivables and trade payables approximate their carrying amounts largely due to the short-term maturities of these instruments. Where no active market exists, the Company establishes fair value by using a valuation technique determined to be the most appropriate in the circumstances. Regarding compound debt instruments, the fair value of debt component was determined at the date of issuance using a valuation model that requires judgment, including estimating the change in value of the Company at different dates and market yields applicable to the Company’s straight debt (without the conversion option). The assumptions used in calculating the value of the conversion option represent the Company’s best estimates based on management’s judgment and subjective future expectations. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Management makes assumptions, judgments and estimates to determine the Company’s deferred tax assets and liabilities particularly as it relates to whether it is probable that deferred tax assets will be realized. Research and Development Costs Costs incurred internally in research and development activities are charged to expense until technological feasibility has been established for the project. Once technological feasibility is established, development costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved. Generally, this occurs when the preliminary design review has been done. Leases The application of IFRS 16 “Leases” requires the Company to make assumptions and estimates in order to determine the value of the right-of-use assets and lease liabilities, which mainly relates to the determination of the Company’s incremental borrowing rate. |
Fair value of financial instruments | Fair value of financial instruments Fair value corresponds to the quoted price for listed financial assets and liabilities. The Company determined that the fair values of cash, trade receivables and trade payables approximate their carrying amounts largely due to the short-term maturities of these instruments. Where no active market exists, the Company establishes fair value by using a valuation technique determined to be the most appropriate in the circumstances. Regarding compound debt instruments, the fair value of debt component was determined at the date of issuance using a valuation model that requires judgment, including estimating the change in value of the Company at different dates and market yields applicable to the Company’s straight debt (without the conversion option). The assumptions used in calculating the value of the conversion option represent the Company’s best estimates based on management’s judgment and subjective future expectations. Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Management makes assumptions, judgments and estimates to determine the Company’s deferred tax assets and liabilities particularly as it relates to whether it is probable that deferred tax assets will be realized. Research and Development Costs Costs incurred internally in research and development activities are charged to expense until technological feasibility has been established for the project. Once technological feasibility is established, development costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved. Generally, this occurs when the preliminary design review has been done. Leases The application of IFRS 16 “Leases” requires the Company to make assumptions and estimates in order to determine the value of the right-of-use assets and lease liabilities, which mainly relates to the determination of the Company’s incremental borrowing rate. |
Summary of significant accoun_3
Summary of significant accounting and reporting policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Effect of Implementation of New IFRS | The lease liability as at January 1, 2019 can be reconciled to the operating lease commitments as of December 31, 2018, as follows : (in thousands) Operating lease commitments as at December 31, 2018 $ 2,058 Weighted-average discount rate as at January 1, 2019 14.2 % Discounted operating lease commitments as at January 1, 2019 1,951 Add: Lease payments relating to renewal periods not included in operating lease commitments as at December 31, 2018 2,352 Non lease components 318 Other 2 Lease liabilities as at January 1, 2019 4,623 |
Schedule of Subsidiaries | The Consolidated Financial Statements comprise the financial statements of Sequans Communications S.A., which is the ultimate parent of the group, and its subsidiaries as of and for the years ended December 31, 2019 , 2018 and 2017 : Name Country of incorporation Year of incorporation % equity interest Sequans Communications Ltd. United Kingdom 2005 100 Sequans Communications Inc. United States 2008 100 Sequans Communications Ltd. Pte. Singapore 2008 100 Sequans Communications Israel (2009) Ltd. Israel 2010 100 |
Schedule of Average and Closing Exchange Rate for the U.S. Dollar | The table below sets forth, for the periods and dates indicated, the average and closing exchange rate for the U.S. dollar (USD) to the euro (EUR), the U.K. pound sterling (GBP), the Singapore dollar (SGD) and the New Israeli shekel (NIS): USD/EUR USD/GBP USD/SGD USD/NIS December 31, 2017 Average rate 1.1293 1.2885 0.7244 0.2780 Closing rate 1.1993 1.3518 0.7484 0.2880 December 31, 2018 Average rate 1.1815 1.3356 0.7416 0.2782 Closing rate 1.1450 1.2800 0.7344 0.2665 December 31, 2019 Average rate 1.1196 1.2758 0.7331 0.2806 Closing rate 1.1234 1.3204 0.7434 0.2892 |
Schedule of Useful Lives Most Commonly Used | The useful lives most commonly used are the following: Machinery and equipment 3 to 5 years Building and leasehold improvements Lesser of 6 years or the life of the lease Computer equipment 3 years Furniture and office equipment 5 years Property, plant and equipment include: Leasehold improvements Plant and equipment IT and office equipment Right of use Total (in thousands) Cost: At January 1, 2017 $ 1,303 $ 27,150 $ 3,749 — $ 32,202 Additions 9 2,979 58 — 3,046 Disposals (87 ) (4,327 ) (81 ) — (4,495 ) Exchange difference 17 111 35 — 163 At December 31, 2017 1,242 25,913 3,761 — 30,916 Additions 34 2,248 80 — 2,362 Disposals (30 ) (70 ) (203 ) — (303 ) Reclassification 14 — (14 ) — — Exchange difference (7 ) (64 ) (16 ) — (87 ) At December 31, 2018 1,253 28,027 3,608 — 32,888 Effect of adoption of new accounting standard - IFRS 16 — — — 4,556 4,556 At January 1, 2019 1,253 28,027 3,608 4,556 37,444 Additions 15 1,274 30 847 2,166 Disposals — (130 ) (15 ) — (145 ) Exchange difference 3 32 11 — 46 At December 31, 2019 $ 1,271 $ 29,203 $ 3,634 $ 5,403 $ 39,511 Depreciation and impairment: At January 1, 2017 783 21,158 3,602 — 25,543 Depreciation charge for the year 226 2,405 129 — 2,760 Disposals (87 ) (4,327 ) (81 ) — (4,495 ) Reclassification 275 326 (601 ) — — Exchange difference 16 60 40 — 116 At December 31, 2017 1,213 19,622 3,089 — 23,924 Depreciation charge for the year 188 2,705 167 — 3,060 Disposals (18 ) (70 ) (203 ) — (291 ) Reclassification (418 ) — 418 — — Exchange difference (8 ) (55 ) (13 ) — (76 ) At December 31, 2018 957 22,202 3,458 — 26,617 Depreciation charge for the year 190 2,430 96 1,354 4,070 Impairment — 56 — — 56 Disposals — (120 ) (15 ) — (135 ) Exchange difference 4 30 11 — 45 At December 31, 2019 $ 1,151 $ 24,598 $ 3,550 1,354 $ 30,653 Net book value: At January 1, 2017 $ 520 $ 5,992 $ 147 — $ 6,659 At December 31, 2017 29 6,291 672 — 6,992 At December 31, 2018 296 5,825 150 — 6,271 At December 31, 2019 $ 120 $ 4,605 $ 84 4,049 $ 8,858 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating segments [Abstract] | |
Schedule of Total Revenue by Region | The following table sets forth the Company’s total revenue by region for the periods indicated. The Company categorizes its total revenue geographically based on the location to which it invoices. Year ended December 31, 2017 (1) 2018 2019 (in thousands) Asia : Taiwan $ 8,126 $ 16,704 $ 11,387 Korea 373 261 6,813 China (including Hong-Kong) 21,819 11,638 2,139 Rest of Asia 2,291 1,911 106 Total Asia 32,609 30,514 20,445 United States of America 11,282 7,042 9,221 Rest of world 4,372 2,694 1,198 Total revenue $ 48,263 $ 40,250 $ 30,864 (1) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. Of our total revenue, 99.8% is attributable to international sales for the year ended December 31, 2019 ( 99.6% for 2018 and 100% for 2017). The Company categorizes its total revenue based on technology. Year ended December 31, 2017 (1) 2018 2019 (in thousands) Broadband and Critical IoT $ 27,900 $ 11,657 $ 10,431 Massive IoT 11,568 19,679 12,816 Vertical 8,795 8,914 7,617 Total revenue $ 48,263 $ 40,250 $ 30,864 (1) In 2018, the Company adopted IFRS 15 using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. Additionally, the Company categorize its total revenue based on product and other revenue. Year ended December 31, 2017 (1) 2018 2019 (in thousands) Product $ 37,353 $ 28,938 $ 21,947 License 2,838 2,707 2,578 Development and other services 8,072 8,605 6,339 Total revenue $ 48,263 $ 40,250 $ 30,864 |
Other revenues and expenses (Ta
Other revenues and expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule of Financial Income and Expenses | Financial income: Year ended December 31, 2017 2018 2019 (in thousands) Income from short-term investments and term deposits and other finance revenue $ 60 $ 71 $ 50 Foreign exchange gain 2,027 1,774 2,116 Total financial income $ 2,087 $ 1,845 $ 2,166 Financial expenses: Year ended December 31, 2017 2018 2019 (in thousands) Interest on loans $ 4,153 $ 4,971 $ 7,864 Interest on lease contracts (see Note 15) — — 622 Interest on financing component of long term development services agreement (see note 18) — — 619 Interest on supplier payable with extended payment terms 213 — — Other bank fees and financial charges 306 476 538 Other financial expenses — 400 — Convertible debt amendments 322 265 — Foreign exchange loss 3,428 1,408 2,045 Total financial expenses $ 8,422 $ 7,520 $ 11,688 |
Schedule of Cost of Revenue and Operating Expenses | The tables below present the cost of revenue and operating expenses by nature of expense : Year ended December 31, Note 2017 2018 2019 (in thousands) Included in cost of revenue: Cost of components $ 22,137 $ 19,058 $ 14,039 Depreciation and impairment 7 1,037 1,088 959 Amortization of intangible assets 8 157 158 159 Wages and benefits 2,233 2,368 1,780 Share-based payment expense 13 7 8 10 Assembly services, royalties and other 1,551 1,682 1,538 $ 27,122 $ 24,362 $ 18,485 Year ended December 31, Note 2017 2018 2019 (in thousands) Included in operating expenses (between gross profit and operating result): Depreciation and impairment 7 $ 1,723 $ 1,972 $ 3,167 Amortization of intangible assets 8 2,658 2,945 4,120 Wages and benefits 26,044 27,616 25,052 Share-based payment expense 13 1,631 1,804 1,787 Foreign exchange gains and losses related to hedges of euro 99 (27 ) 71 Other, net 8,511 13,095 6,140 $ 40,666 $ 47,405 $ 40,337 Year ended December 31, Note 2017 2018 2019 (in thousands) Wages and salaries $ 21,535 $ 22,501 $ 19,953 Social security costs and other payroll taxes 6,584 7,286 6,748 Other benefits 58 125 161 Pension costs 100 72 25 Share-based payment expenses 13 1,638 1,812 1,797 Total employee benefits expense $ 29,915 $ 31,796 $ 28,684 |
Schedule of Research and Development Expense | The reduction of research and development expense from government grants, research tax credit and development costs capitalized was as follows: Year ended December 31, 2017 2018 2019 (in thousands) Research and development costs $ 33,318 $ 34,969 $ 31,113 Research tax credit (3,345 ) (3,027 ) (3,123 ) Government and other grants (3,072 ) (1,104 ) (247 ) Development costs capitalized (*) (1,931 ) (3,376 ) (5,020 ) Amortization of capitalized development costs 232 447 1,076 Total research and development expense $ 25,202 $ 27,909 $ 23,799 |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule of Major Components of Income Tax Expense | The major components of income tax expense are: Year ended December 31, 2017 2018 2019 (in thousands) Consolidated Statement of Operations Current income tax expense $ 273 $ 210 $ 251 Deferred income tax expense (benefit) 27 (1,178 ) (1,034 ) Income tax expense (benefit) reported in the Consolidated Statement of Operations $ 300 $ (968 ) $ (783 ) |
Reconciliation of Income Taxes Computed at the French Statutory Rate | A reconciliation of income taxes computed at the French statutory rate ( 34.43% for the year ended December 31, 2017 and 28% for the years ended December 31, 2018 and 2019 ) to the income tax expense (benefit) is as follows: Year ended December 31, 2017 2018 2019 (in thousands) Profit (loss) before income taxes $ (25,860 ) $ (37,192 ) $ (37,480 ) At France’s statutory income tax rate of 28% (34.43% in 2017) (8,904 ) (10,269 ) (10,494 ) Non-deductible share-based payment expense 564 507 503 Tax credits (1,152 ) (848 ) (874 ) Permanent differences and other (329 ) (596 ) 39 Unrecognized benefit of tax losses carryforward 10,121 10,238 10,043 Income tax expense (income) reported in the Consolidated Statement of Operations $ 300 $ (968 ) $ (783 ) |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: Consolidated Statement of Financial Position Equity Consolidated Statement of Operations December 31, December 31, Year ended December 31, 2017 2018 2019 2017 2018 2019 2017 2018 2019 (in thousands) (in thousands) (in thousands) Government loan 46 47 46 — — — (1 ) — (1 ) Intangible assets 71 71 24 — — — (16 ) — (47 ) Lease contracts — — (8 ) — — — — — (8 ) Cash flow hedge 7 (1 ) (3 ) — — — 14 (8 ) (2 ) Remeasurement of non-monetary accounts (249 ) 99 (103 ) — — — (502 ) 348 (202 ) Convertible debts and venture debt - liability 798 2,053 1,901 — 1,818 773 798 (563 ) (925 ) Other provisions and accruals (22 ) (22 ) (310 ) — — — — — (288 ) From subsidiaries 52 35 19 — — — 30 (17 ) (16 ) Loss available for offsetting against future taxable income (651 ) (1,591 ) (1,137 ) — — — (296 ) (938 ) 455 Total $ 52 $ 691 $ 429 — $ 1,818 $ 773 $ 27 $ (1,178 ) $ (1,034 ) The changes in deferred tax assets and liabilities were as follows : 2017 2018 2019 (in thousands) At January 1st $ 22 $ 52 $ 691 Tax expense (income) during the year recognized in Profit or Loss 27 (1,178 ) (1,034 ) Tax expense during the year recognized in equity (1) — 1,818 773 Effect of foreign exchange 3 (1 ) (1 ) At December 31st $ 52 $ 691 $ 429 (1) Relates to the split accounting of the convertible debts and the venture debt issued with an equity component |
Earnings (loss) per share (Tabl
Earnings (loss) per share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Schedule of Income and Share Data Used in Basic and Diluted Earnings (Loss) Per Share Computations | The following reflects the income and share data used in the basic and diluted earnings (loss) per ordinary share and ADS computations: Year ended December 31, 2017 2018 2019 (in thousands, except share and per share data) Profit (Loss) $ (26,160 ) $ (36,224 ) $ (36,697 ) Weighted average number of shares outstanding for basic EPS 77,668,404 93,767,005 95,008,518 Net effect of dilutive stock options — — — Net effect of dilutive warrants — — — Net effect of vesting of restricted stock — — — Net effect of conversion of convertible notes — — — Weighted average number of shares outstanding for diluted EPS 77,668,404 93,767,005 95,008,518 Basic earnings (loss) per share $ (0.34 ) $ (0.39 ) $ (0.39 ) Diluted earnings (loss) per share $ (0.34 ) $ (0.39 ) $ (0.39 ) ADS outstanding for basic and diluted earnings (loss) per ADS 19,417,101 23,441,751 23,752,130 Basic earnings (loss) per ADS $ (1.35 ) $ (1.55 ) $ (1.54 ) Diluted earnings (loss) per ADS $ (1.35 ) $ (1.55 ) $ (1.54 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Schedule of Property, Plant and Equipment | The useful lives most commonly used are the following: Machinery and equipment 3 to 5 years Building and leasehold improvements Lesser of 6 years or the life of the lease Computer equipment 3 years Furniture and office equipment 5 years Property, plant and equipment include: Leasehold improvements Plant and equipment IT and office equipment Right of use Total (in thousands) Cost: At January 1, 2017 $ 1,303 $ 27,150 $ 3,749 — $ 32,202 Additions 9 2,979 58 — 3,046 Disposals (87 ) (4,327 ) (81 ) — (4,495 ) Exchange difference 17 111 35 — 163 At December 31, 2017 1,242 25,913 3,761 — 30,916 Additions 34 2,248 80 — 2,362 Disposals (30 ) (70 ) (203 ) — (303 ) Reclassification 14 — (14 ) — — Exchange difference (7 ) (64 ) (16 ) — (87 ) At December 31, 2018 1,253 28,027 3,608 — 32,888 Effect of adoption of new accounting standard - IFRS 16 — — — 4,556 4,556 At January 1, 2019 1,253 28,027 3,608 4,556 37,444 Additions 15 1,274 30 847 2,166 Disposals — (130 ) (15 ) — (145 ) Exchange difference 3 32 11 — 46 At December 31, 2019 $ 1,271 $ 29,203 $ 3,634 $ 5,403 $ 39,511 Depreciation and impairment: At January 1, 2017 783 21,158 3,602 — 25,543 Depreciation charge for the year 226 2,405 129 — 2,760 Disposals (87 ) (4,327 ) (81 ) — (4,495 ) Reclassification 275 326 (601 ) — — Exchange difference 16 60 40 — 116 At December 31, 2017 1,213 19,622 3,089 — 23,924 Depreciation charge for the year 188 2,705 167 — 3,060 Disposals (18 ) (70 ) (203 ) — (291 ) Reclassification (418 ) — 418 — — Exchange difference (8 ) (55 ) (13 ) — (76 ) At December 31, 2018 957 22,202 3,458 — 26,617 Depreciation charge for the year 190 2,430 96 1,354 4,070 Impairment — 56 — — 56 Disposals — (120 ) (15 ) — (135 ) Exchange difference 4 30 11 — 45 At December 31, 2019 $ 1,151 $ 24,598 $ 3,550 1,354 $ 30,653 Net book value: At January 1, 2017 $ 520 $ 5,992 $ 147 — $ 6,659 At December 31, 2017 29 6,291 672 — 6,992 At December 31, 2018 296 5,825 150 — 6,271 At December 31, 2019 $ 120 $ 4,605 $ 84 4,049 $ 8,858 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets include: Capitalized development costs Licenses Total (in thousands) Cost: At January 1, 2017 $ 409 $ 17,706 $ 18,115 Additions 1,931 2,710 4,641 Disposals — (64 ) (64 ) Exchange difference — 23 23 At December 31, 2017 2,340 20,375 22,715 Additions 3,377 2,576 5,953 Disposals — (3,834 ) (3,834 ) Exchange difference — (13 ) (13 ) At December 31, 2018 5,717 19,104 24,821 Additions 5,020 3,752 8,772 Disposals — (2,045 ) (2,045 ) Exchange difference — 7 7 At December 31, 2019 $ 10,737 $ 20,818 $ 31,555 Depreciation and impairment: At January 1, 2017 — 10,408 10,408 Amortization 233 2,582 2,815 Disposals — (64 ) (64 ) Exchange difference — (6 ) (6 ) At December 31, 2017 233 12,920 13,153 Amortization 447 2,656 3,103 Disposals — (3,834 ) (3,834 ) Exchange difference — (10 ) (10 ) At December 31, 2018 680 11,732 12,412 Amortization 1,075 3,204 4,279 Disposals — (1,838 ) (1,838 ) Exchange difference — 6 6 At December 31, 2019 $ 1,755 $ 13,104 $ 14,859 Net book value: At January 1, 2017 409 $ 7,298 $ 7,707 At December 31, 2017 2,107 7,455 9,562 At December 31, 2018 5,037 7,372 12,409 At December 31, 2019 $ 8,982 $ 7,714 $ 16,696 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Schedule of Inventories | At December 31, 2017 2018 2019 (in thousands) Components $ 2,964 $ 4,242 $ 2,645 Finished goods 5,035 4,502 4,702 Total inventories at cost $ 7,999 $ 8,744 $ 7,347 Depreciation of components $ 30 $ — $ 2 Depreciation of finished goods 593 501 681 Total depreciation $ 623 $ 501 $ 683 Components, net $ 2,934 $ 4,242 $ 2,643 Finished goods, at the lower of cost and net realizable value 4,442 4,001 4,021 Total net inventories $ 7,376 $ 8,243 $ 6,664 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Schedule of Non-Interest Bearing Trade Receivables | Trade receivables and contract assets are non-interest bearing and generally have 30 - 90 day payment terms. At December 31, 2017 2018 2019 (in thousands) Trade receivables $ 18,754 $ 16,758 $ 11,957 Contract assets 3,112 2,707 1,587 Unbilled revenue 355 105 — Unissued credit notes (485 ) (1,094 ) (848 ) Provisions on trade receivables (810 ) (2,592 ) (2,719 ) Net trade receivables $ 20,926 $ 15,884 $ 9,977 | |
Schedule of Movements in the Provision for Impairment of Receivables | Post- employment benefits Other provisions Total Current Non current (in thousands) At January 1, 2017 $ 688 $ 664 $ 1,352 $ 46 $ 1,306 Arising (released) during the year 216 443 659 — — Released (used) during the year — (50 ) (50 ) — — Released (unused) during the year — (397 ) (397 ) — — At December 31, 2017 904 660 1,564 32 1,532 Arising (released) during the year 86 590 676 — — Released (used) during the year — (32 ) (32 ) — — Released (unused) during the year — (167 ) (167 ) — — At December 31, 2018 990 1,051 2,041 352 1,689 Arising (released) during the year 94 190 284 — — Released (used) during the year (21 ) (352 ) (373 ) — — Released (unused) during the year — (47 ) (47 ) — — At December 31, 2019 $ 1,063 $ 842 $ 1,905 $ — $ 1,905 | The movements in the provision for impairment of receivables were as follows: December 31, 2017 2018 2019 (in thousands) At January 1, $ 628 $ 810 $ 2,592 Charge for the year 182 1,782 515 Utilized amounts $ — $ — $ (388 ) At year end $ 810 $ 2,592 $ 2,719 |
Aging Analysis of Trade Receivables That Were Not Impaired | As at year end, the aging analysis of trade receivables and contract assets that were not impaired is as follows: Total Neither past due nor Impaired Past due but not impaired <30 days 30-60 days 60-120 days >120 days (in thousands) At December 31, 2017 $ 20,926 $ 12,746 $ 4,771 $ 1,036 $ 1,673 $ 700 At December 31, 2018 $ 15,884 $ 7,421 $ 5,155 $ 49 $ 471 $ 2,788 At December 31, 2019 $ 9,977 $ 6,265 $ 2,125 $ 130 $ 371 $ 1,086 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Cash and Cash Equivalents | At December 31, 2017 2018 2019 (in thousands) Cash at banks $ 2,039 $ 4,577 $ 2,591 Cash equivalents 909 7,509 11,507 Cash and cash equivalents $ 2,948 $ 12,086 $ 14,098 Most of the cash and cash equivalents is held in U.S. dollar and euros as follows: At December 31, 2017 2018 2019 (in thousands) U.S. dollar denominated accounts $ 1,343 $ 4,411 $ 13,702 Euro denominated accounts 1,503 7,545 301 GBP denominated accounts 30 30 37 SGP denominated accounts 16 53 12 NIS denominated accounts 11 21 19 RMB denominated accounts 21 7 11 Other currencies denominated accounts 24 19 16 Cash and cash equivalents $ 2,948 $ 12,086 $ 14,098 |
Issued capital and reserves (Ta
Issued capital and reserves (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Shares Issued and Fully Paid | Shares issued and fully paid At December 31, 2017 2018 2019 Shares Amount Shares Amount Shares Amount (in thousands, except for share data) Ordinary shares 80,024,707 € 1,597 94,732,539 € 1,895 95,587,146 € 1,912 Converted to U.S. dollars at historical exchange rates $ 2,031 $ 2,384 $ 2,403 |
Share-based payment plans (Tabl
Share-based payment plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of movement in number and WAEP of stock options | The following table illustrates the number of shares and weighted average exercise prices (WAEP) of, and movements in, founders' warrants, stock options and warrants during the period: December 31, 2017 2018 2019 Number WAEP Number WAEP Number WAEP Outstanding at January 1, 7,177,500 $ 3.55 6,197,848 $ 3.59 5,983,452 $ 3.50 Granted during the year 230,000 $ 3.39 250,000 $ 1.93 312,000 $ 0.89 Forfeited during the year (336,365 ) $ 4.75 (269,082 ) $ 2.84 (452,992 ) $ 2.56 Exercised during the year (1) (431,790 ) $ 2.28 (14,814 ) $ 1.85 — $ — Expired during the year (441,497 ) $ 3.25 (180,500 ) $ 5.67 (70,500 ) $ 1.34 Outstanding at period end 6,197,848 $ 3.59 5,983,452 $ 3.50 5,771,960 $ 3.46 Of which, warrants for consultants equivalent to employees 151,500 $ 3.29 180,500 $ 2.75 177,500 $ 2.70 Exercisable at period end 4,900,052 $ 3.90 5,194,187 $ 3.62 5,114,422 $ 3.55 Of which, warrants for consultants equivalent to employees 131,917 $ 3.51 143,833 $ 3.11 160,833 $ 2.84 ________________________ (1) The weighted average share estimated fair value at the dates of exercise of these options was $2.20 in 2018 and $3.49 in 2017 . The following table illustrates the number of, and movements in, restricted shares awards (RSA) during the period: December 31, 2017 2018 2019 Outstanding at January 1, 634,720 1,467,166 2,746,181 Granted during the year 1,002,650 1,803,550 4,180,218 Forfeited during the year (15,200 ) (206,517 ) (184,314 ) Vested during the year (155,004 ) (318,018 ) (858,898 ) Outstanding at period end 1,467,166 2,746,181 5,883,187 |
Fair value assumptions for determining value of the grants | The following table lists the inputs to the models used for determining the value of the grants made for the years ended December 31, 2017 , 2018 and 2019 : December 31, 2017 2018 2019 Dividend yield (%) — — — Expected volatility (%) 63 - 64 68 - 70 55 Risk–free interest rate (%) 0.43 0 0.00 Assumed annual lapse rate of awards (%) 10 for RSA 2 for stock options, warrants and a limited group of beneficiaries 10 for RSA 2 for stock options, warrants and a limited group of beneficiaries 10 for all except 2 for warrants and a limited group of beneficiaries Sell price multiple (applied to exercise price) 2 2 2 Weighted average share price (€) 2.30 1.08 0.68 Model used Binomial Binomial Binomial |
Fair value assumptions for determining value of the grants | The following table lists the inputs to the models used for determining the value of the grants made for the years ended December 31, 2017 , 2018 and 2019 : December 31, 2017 2018 2019 Dividend yield (%) — — — Expected volatility (%) 63 - 64 68 - 70 55 Risk–free interest rate (%) 0.43 0 0.00 Assumed annual lapse rate of awards (%) 10 for RSA 2 for stock options, warrants and a limited group of beneficiaries 10 for RSA 2 for stock options, warrants and a limited group of beneficiaries 10 for all except 2 for warrants and a limited group of beneficiaries Sell price multiple (applied to exercise price) 2 2 2 Weighted average share price (€) 2.30 1.08 0.68 Model used Binomial Binomial Binomial |
Interest-bearing loans and bo_2
Interest-bearing loans and borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Schedule of Interest-Bearing Loans and Borrowings | At December 31, Note 2017 2018 2019 (in thousands) Current Convertible debt 14.1 — — 7,329 Venture debt 14.2 — 823 5,109 Interest-bearing receivables financing 14.3 7,413 10,295 4,068 Total current portion $ 7,413 $ 11,118 $ 16,506 Non-current Convertible debt 14.1 $ 17,063 $ 19,723 $ 23,342 Venture debt 14.2 — 11,811 7,071 Total non-current portion $ 17,063 $ 31,534 $ 30,413 Consequently, the conversion rate of the convertible notes into ADS have been adjusted as follows: Security Contractual conversion rate/exercice price per share Adjusted conversion rate/exercice price per ADS as of Nov 29, 2019 2015 notes, 2018 notes, warrants $ 1.70 $ 6.80 2016 notes $ 2.25 $ 9.00 2019-1 notes $ 1.21 $ 4.84 2019-2 notes $ 1.03 $ 4.12 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of right-of-use assets | The table below present the carrying amounts of right-of-use assets recognized and the movements during the period: Real-estate IT and office equipment Total (In thousands) As at January 1, 2019 $ 4,159 397 4,556 Additions 847 847 Depreciation expense (1,064 ) (290 ) (1,354 ) As at December 31, 2019 $ 3,942 $ 107 $ 4,049 The table below present the carrying amounts of lease liabilities and the movements during the period: Lease liabilities Current Non-current (In thousands) As at January 1, 2019 $ 4,623 $ 1,415 $ 3,208 Additions 732 Interests expense 622 Foreign exchange gain (loss) 49 Payments (1,922 ) As at December 31, 2019 $ 4,104 $ 900 $ 3,204 |
Government grant advances and_2
Government grant advances and loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Government Grants [Abstract] | |
Schedule of Government Grant Advances and Loans | December 31, Note 2017 2018 2019 (in thousands) Current Government grant advances 16.1 $ 93 $ 58 $ 349 Research project financing 16.2 899 172 674 Government loans 16.2 600 458 449 Total current portion $ 1,592 $ 688 $ 1,472 Non-current Government grant advances 16.1 $ 350 $ 86 $ 510 Research project financing 16.2 2,946 4,274 4,652 Government loans 16.3 1,353 819 348 Accrued interest 16.2 381 495 640 Total non-current portion $ 5,030 $ 5,674 $ 6,150 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | ||
Reconciliation of Changes in Provisions | Post- employment benefits Other provisions Total Current Non current (in thousands) At January 1, 2017 $ 688 $ 664 $ 1,352 $ 46 $ 1,306 Arising (released) during the year 216 443 659 — — Released (used) during the year — (50 ) (50 ) — — Released (unused) during the year — (397 ) (397 ) — — At December 31, 2017 904 660 1,564 32 1,532 Arising (released) during the year 86 590 676 — — Released (used) during the year — (32 ) (32 ) — — Released (unused) during the year — (167 ) (167 ) — — At December 31, 2018 990 1,051 2,041 352 1,689 Arising (released) during the year 94 190 284 — — Released (used) during the year (21 ) (352 ) (373 ) — — Released (unused) during the year — (47 ) (47 ) — — At December 31, 2019 $ 1,063 $ 842 $ 1,905 $ — $ 1,905 | The movements in the provision for impairment of receivables were as follows: December 31, 2017 2018 2019 (in thousands) At January 1, $ 628 $ 810 $ 2,592 Charge for the year 182 1,782 515 Utilized amounts $ — $ — $ (388 ) At year end $ 810 $ 2,592 $ 2,719 |
Schedule of Main Assumptions Used | The main assumptions used in the calculation are the following: 2017 2018 2019 Discount rate 1.30% 1.57% 0.77% Salary increase Between 1.5% and 3.5% Between 1.5% and 3.5% Between 1.5% and 3.5% Retirement age 60-62 years 60-62 years 60-62 years Turnover: depending on the seniority 4.35%, nil as from 64 4.35%, nil as from 64 4.35%, nil as from 64 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Non-Current Liabilities | Other non-current liabilities At December 31, 2017 2018 2019 (in thousands) Trade Payables — — 1,139 Deferred tax liabilities 52 691 429 Contract liabilities: License and development services agreement — — 11,249 Deferred revenue 1,293 808 323 Total contract liabilities $ 1,293 $ 808 $ 11,572 |
Trade payables and other curr_2
Trade payables and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Trade Payables and Other Current Liabilities | At December 31, 2017 2018 2019 (in thousands) Trade payables $ 13,023 $ 9,412 $ 8,834 Other current liabilities: Employees and social debts 3,720 3,091 3,575 Others 1,418 1,563 965 Total other current liabilities $ 5,138 $ 4,654 $ 4,540 Contract liabilities: License and development services agreement — — 5,303 Deferred revenue 740 973 $ 727 $ 740 $ 973 $ 5,812 |
Information about financial i_2
Information about financial instruments (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments [Abstract] | ||
Schedule of Financial Assets | Carrying amount Fair value December 31, December 31, 2017 2018 2019 2017 2018 2019 (in thousands) Financial assets: Trade and other receivables Trade receivables $ 20,926 $ 15,884 $ 9,977 $ 20,926 $ 15,884 $ 9,977 Deposits and other receivables Deposits 402 394 401 402 394 401 Other financial assets Long-term investments 353 337 335 353 337 335 Financial instruments at fair value through other comprehensive income Cash flow hedges 72 — 46 72 — 46 Cash, cash equivalents and short-term investments 3,295 12,086 14,098 3,295 12,086 14,098 Total financial assets $ 25,048 $ 28,701 $ 24,857 $ 25,048 $ 28,701 $ 24,857 Total current $ 24,293 $ 27,970 $ 24,121 $ 24,293 $ 27,970 $ 24,121 Total non-current $ 755 $ 731 $ 736 $ 755 $ 731 $ 736 Financial liabilities: Lease liability — — 4,104 — — 4,104 Interest-bearing loans and borrowings: Interest-bearing receivables financing 7,413 10,295 4,068 7,413 10,295 4,068 Convertible debt 17,063 19,723 30,671 16,309 19,708 30,706 Venture debt — 12,634 12,180 — 12,634 12,180 Government loans 2,071 1,431 1,002 2,071 1,431 1,002 Research project financing 4,004 4,688 5,696 4,004 4,688 5,696 Trade and other payables (current and non current) 13,023 9,412 9,973 13,023 9,412 9,973 Total financial liabilities $ 43,574 $ 58,183 $ 67,694 $ 42,820 $ 58,168 $ 67,729 Total current $ 21,935 $ 21,160 $ 27,363 $ 21,935 $ 21,160 $ 27,328 Total non-current $ 21,639 $ 37,023 $ 40,331 $ 20,885 $ 37,008 $ 40,401 | As at December 31, 2017 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2017 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 353 — $ 353 — Financial instruments at fair value through other comprehensive income: Cash flow hedge $ 72 — $ 72 — As at December 31, 2018 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2018 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 337 — $ 337 — As at December 31, 2019 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2019 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 335 — $ 335 — Financial instruments at fair value through other comprehensive income: Cash flow hedge 46 46 As of December 31, 2019, 2018 and 2017, there were no liabilities measured at fair value. |
Disclosure of Financial Liabilities | Carrying amount Fair value December 31, December 31, 2017 2018 2019 2017 2018 2019 (in thousands) Financial assets: Trade and other receivables Trade receivables $ 20,926 $ 15,884 $ 9,977 $ 20,926 $ 15,884 $ 9,977 Deposits and other receivables Deposits 402 394 401 402 394 401 Other financial assets Long-term investments 353 337 335 353 337 335 Financial instruments at fair value through other comprehensive income Cash flow hedges 72 — 46 72 — 46 Cash, cash equivalents and short-term investments 3,295 12,086 14,098 3,295 12,086 14,098 Total financial assets $ 25,048 $ 28,701 $ 24,857 $ 25,048 $ 28,701 $ 24,857 Total current $ 24,293 $ 27,970 $ 24,121 $ 24,293 $ 27,970 $ 24,121 Total non-current $ 755 $ 731 $ 736 $ 755 $ 731 $ 736 Financial liabilities: Lease liability — — 4,104 — — 4,104 Interest-bearing loans and borrowings: Interest-bearing receivables financing 7,413 10,295 4,068 7,413 10,295 4,068 Convertible debt 17,063 19,723 30,671 16,309 19,708 30,706 Venture debt — 12,634 12,180 — 12,634 12,180 Government loans 2,071 1,431 1,002 2,071 1,431 1,002 Research project financing 4,004 4,688 5,696 4,004 4,688 5,696 Trade and other payables (current and non current) 13,023 9,412 9,973 13,023 9,412 9,973 Total financial liabilities $ 43,574 $ 58,183 $ 67,694 $ 42,820 $ 58,168 $ 67,729 Total current $ 21,935 $ 21,160 $ 27,363 $ 21,935 $ 21,160 $ 27,328 Total non-current $ 21,639 $ 37,023 $ 40,331 $ 20,885 $ 37,008 $ 40,401 | As at December 31, 2017 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2017 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 353 — $ 353 — Financial instruments at fair value through other comprehensive income: Cash flow hedge $ 72 — $ 72 — As at December 31, 2018 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2018 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 337 — $ 337 — As at December 31, 2019 , the Company held the following financial instruments carried at fair value on the statement of financial position: Assets measured at fair value At December 31, 2019 Level 1 Level 2 Level 3 (in thousands) Long-term investments $ 335 — $ 335 — Financial instruments at fair value through other comprehensive income: Cash flow hedge 46 46 As of December 31, 2019, 2018 and 2017, there were no liabilities measured at fair value. |
Schedule of Present Fair Values of Derivative Financial Instruments | The following tables present fair values of derivative financial instruments at December 31, 2017 and 2019. There was no derivative financial instrument outstanding at December 31, 2018. At December 31, 2017 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S dollars) € 2,250 $ 53 Options (buy euros, sell U.S. dollars) 3,000 19 Total € 5,250 $ 72 At December 31, 2019 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S. dollars) € 3,000 $ 46 Options (buy euros, sell U.S. dollars) — — Total € 3,000 $ 46 | |
Summary of Customers Representing Company's Total Revenue | The following table summarizes customers representing a significant portion of the Company’s total revenue: Customer Customer Location % of total revenues for the year ended December 31, Trade receivables at December 31, 2019 2018 2017 2019 2018 2017 A Taiwan 27 % 32 % 16 % $ 1,383,000 $ 5,881,000 $ 4,060,000 B Korea 22 % — % — % 2,680,000 — — C Taiwan 10 % Less than 10% — % 1,745,000 1,138,000 — D China Less than 10% 13 % Less than 10% — 1,858,000 911,000 E Taiwan Less than 10% Less than 10% 17 % $ 201,000 $ 2,526,000 $ 5,352,000 | |
Schedule of Liquidity Risk | Within 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years More than 5 years Total (in thousands) At December 31, 2017 Research project financing $ 899 $ 1,246 $ 671 $ 291 $ 297 $ 441 $ 3,845 Interest-bearing receivables financing 7,413 — — — — — 7,413 Government loans 656 523 510 497 245 — 2,431 Convertible debt — 15,730 9,175 — — — 24,905 Trade payables 13,023 — — — — — 13,023 Other current liabilities 5,138 — — — — — 5,138 $ 27,129 $ 17,499 $ 10,356 $ 788 $ 542 $ 441 $ 56,755 At December 31, 2018 Research project financing $ 238 $ 973 $ 2,043 $ 1,687 $ 375 $ 73 $ 5,389 Interest-bearing receivables financing 10,295 — — — — — 10,295 Government loans 499 487 475 234 — — 1,695 Convertible debt — 7,863 23,357 — — — 31,220 Venture debt 2,057 6,158 6,158 2,396 — — 16,769 Trade payables 9,412 — — — — — 9,412 Other current liabilities 4,654 — — — — — 4,654 $ 27,155 $ 15,481 $ 32,033 $ 4,317 $ 375 $ 73 $ 79,434 At December 31, 2019 Research project financing $ 739 $ 2,252 $ 2,601 $ 368 $ 72 $ — $ 6,032 Interest-bearing receivables financing 4,068 — — — — — 4,068 Government loans 478 466 229 — — — 1,173 Convertible debt (1) 7,863 26,792 6,124 — — — 40,779 Venture debt 6,042 6,042 2,351 — — — 14,435 Lease liabilities 1,147 832 973 980 965 1,307 6,204 Trade payables 9,057 1,000 250 — — — 10,307 Other current liabilities 4,540 — — — — — 4,540 $ 33,934 $ 37,384 $ 12,528 $ 1,348 $ 1,037 $ 1,307 $ 87,538 | |
Schedule of Financial Liabilities | (in thousands) January 1, 2017 Cash flows Foreign exchange movement Accrued interest Non-cash impact of amendment Other (1) December 31, 2017 Government grant advances and loans $ 5,745 2,600 915 90 — (2,728 ) $ 6,622 Convertible debt $ 16,338 — — 3,987 (3,097 ) (165 ) $ 17,063 Interest-bearing financing of receivables $ 7,712 (299 ) — — — — $ 7,413 Total $ 29,795 2,301 915 4,077 (3,097 ) (2,893 ) $ 31,098 (in thousands) January 1, 2018 Cash flows Foreign exchange movement Accrued interest Non-cash impact of amendment Other (1) December 31, 2018 Government grant advances and loans $ 6,622 985 (250 ) 151 — (1,146 ) $ 6,362 Convertible debt $ 17,063 3,202 — 4,435 (3,630 ) (1,347 ) $ 19,723 Venture debt $ — 13,369 (243 ) 327 — (819 ) $ 12,634 Interest-bearing financing of receivables $ 7,413 2,882 — — — — $ 10,295 Total $ 31,098 20,438 (493 ) 4,913 (3,630 ) (3,312 ) $ 49,014 (in thousands) January 1, 2019 * Cash flows Foreign exchange movement Accrued interest Other (1) December 31, 2019 Government grant advances and loans $ 6,362 1,006 (112 ) 220 145 $ 7,621 Convertible debt $ 19,723 7,967 — 5,844 (2,863 ) $ 30,671 Venture debt $ 12,634 (2,010 ) (240 ) 1,796 — $ 12,180 Lease liabilities $ 4,623 (1,922 ) 49 622 732 $ 4,104 Interest-bearing financing of receivables $ 10,295 (6,227 ) — — — $ 4,068 Total $ 53,637 (1,186 ) (303 ) 8,482 (1,986 ) $ 58,644 * Restated to reflect the impact of the adoption of IFRS 16 Leases (1) Amounts included in Other for 2018 and 2019 mainly represent the amounts recorded in equity related to the issuance of debt with an equity component, the reduction of grants as the corresponding expense is incurred and new grants to be received. In 2019, Other includes as well as additions in lease liabilities, which are non-cash. Amounts included in Other for 2017 mainly represent the reduction of grants as the corresponding expense is incurred and new grants to be received. |
Related party disclosures (Tabl
Related party disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Compensation of Key Management Personnel | Compensation of key management personnel Year ended December 31, 2017 2018 2019 (in thousands) Fixed and variable wages, social charges and benefits expensed in the year $ 2,376 $ 2,348 $ 2,179 Share-based payment expense for the year 1,043 1,397 1,106 Board members fees to non-executive members 190 199 210 Total compensation expense for key management personnel $ 3,609 $ 3,944 $ 3,495 |
Summary of significant accoun_4
Summary of significant accounting and reporting policies - Narrative (Details) - USD ($) $ in Thousands | Feb. 18, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Proceeds from convertible debt, net of transaction cost | $ 7,967 | $ 4,388 | [1] | $ 0 | [1],[2] | ||||||
Proceeds from issuance venture debt | 13,600 | ||||||||||
Proceeds from issue of warrants to a strategic partner, net of transaction costs paid | $ 8,360 | 8,269 | 0 | [1] | 0 | [1],[2] | |||||
Net losses | 36,697 | 36,224 | [3] | 26,160 | [3],[4] | ||||||
Accumulated deficit | 308,733 | 272,036 | [5] | 235,712 | [5],[6] | ||||||
Weighted-average incremental borrowing rate | 14.20% | ||||||||||
Depreciation, right-of-use assets | 1,354 | ||||||||||
Interest expense on lease liabilities | 622 | 0 | 0 | ||||||||
Public equity offering proceeds, net of transaction costs paid | 0 | $ 20,841 | [1] | 14,898 | [1],[2] | ||||||
Period of the maintenance | 1 year | ||||||||||
Revenue from development contracts where no related incremental costs were identified | 1,724 | $ 389 | 1,321 | ||||||||
Equity | 29,561 | 5,019 | [5] | (4,148) | [5],[6] | $ (8,860) | |||||
Trade receivables | (9,977) | (15,884) | (20,926) | ||||||||
Contract liabilities | 988 | 740 | 497 | $ 1,940 | |||||||
Cash flows from (used in) operating activities | (5,093) | 22,838 | [1] | 28,626 | [1],[2] | ||||||
Cash flows from (used in) investing activities | $ 9,101 | $ 8,766 | [1] | 6,477 | [1],[2] | ||||||
Licenses | |||||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Life used to compute amortization in the case of perpetual licenses | 5 years | ||||||||||
Bottom of range | Capitalized development costs | |||||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Life used to compute amortization in the case of perpetual licenses | 3 years | ||||||||||
Top of range | Capitalized development costs | |||||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Life used to compute amortization in the case of perpetual licenses | 5 years | ||||||||||
Previously stated | |||||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Equity | $ 5,019 | (4,148) | |||||||||
Effect of adoption of new accounting standard - IFRS 15 | |||||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Equity | [7] | 100 | |||||||||
Contract assets | 3,100 | ||||||||||
Trade receivables | $ 3,100 | $ 1,600 | |||||||||
Restatement Adjustment | Effect of adoption of new accounting standard - IFRS 15 | |||||||||||
Disclosure of detailed information about intangible assets [line items] | |||||||||||
Accumulated deficit | $ 100 | ||||||||||
Contract assets | $ (100) | ||||||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||||||
[2] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||||||
[3] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||||||
[4] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||||||
[5] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||||||
[6] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||||||
[7] | In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated.; rather, the impact is reflected as an adjustment to the opening equity at the date of adoption. |
Summary of significant accoun_5
Summary of significant accounting and reporting policies - Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of initial application of standards or interpretations [line items] | ||
Weighted-average discount rate as at January 1, 2019 | 14.20% | |
Lease liabilities | $ 4,104 | $ 4,623 |
IFRS 16 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Operating lease commitments as at December 31, 2018 | $ 2,058 | |
Weighted-average discount rate as at January 1, 2019 | 14.20% | |
Discounted operating lease commitments as at January 1, 2019 | $ 1,951 | |
Lease payments relating to renewal periods not included in operating lease commitments as at December 31, 2018 | 2,352 | |
Non lease components | 318 | |
Other | 2 | |
Lease liabilities | $ 4,623 |
Summary of significant accoun_6
Summary of significant accounting and reporting policies - Schedule of Subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Sequans Communications Ltd. | |
Disclosure of subsidiaries [line items] | |
% equity interest | 100.00% |
Sequans Communications Inc. | |
Disclosure of subsidiaries [line items] | |
% equity interest | 100.00% |
Sequans Communications Ltd. Pte. | |
Disclosure of subsidiaries [line items] | |
% equity interest | 100.00% |
Sequans Communications Israel (2009) Ltd. | |
Disclosure of subsidiaries [line items] | |
% equity interest | 100.00% |
Summary of significant accoun_7
Summary of significant accounting and reporting policies - Schedule of Average and Closing Exchange Rate for the U.S. Dollar (Details) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2019$ / £ | Dec. 31, 2019$ / £$ / ₪ | Dec. 31, 2019$ / £$ / € | Dec. 31, 2019$ / £$ / $ | Dec. 31, 2018$ / £ | Dec. 31, 2018$ / £$ / ₪ | Dec. 31, 2018$ / £$ / € | Dec. 31, 2018$ / £$ / $ | Dec. 31, 2017$ / £ | Dec. 31, 2017$ / £$ / ₪ | Dec. 31, 2017$ / £$ / € | Dec. 31, 2017$ / £$ / $ | Dec. 31, 2019$ / ₪ | Dec. 31, 2019$ / € | Dec. 31, 2019$ / $ | Dec. 31, 2018$ / ₪ | Dec. 31, 2018$ / € | Dec. 31, 2018$ / $ | Dec. 31, 2017$ / ₪ | Dec. 31, 2017$ / € | Dec. 31, 2017$ / $ | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||||||||||||||||||||
Average rate | 1.2758 | 0.2806 | 1.1196 | 0.7331 | 1.3356 | 0.2782 | 1.1815 | 0.7416 | 1.2885 | 0.2780 | 1.1293 | 0.7244 | |||||||||
Closing rate | 1.3204 | 1.3204 | 1.3204 | 1.3204 | 1.2800 | 1.2800 | 1.2800 | 1.2800 | 1.3518 | 1.3518 | 1.3518 | 1.3518 | 0.2892 | 1.1234 | 0.7434 | 0.2665 | 1.1450 | 0.7344 | 0.2880 | 1.1993 | 0.7484 |
Summary of significant accoun_8
Summary of significant accounting and reporting policies - Performance Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Performance obligation | $ 3,959 | $ 936 |
Within one year | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Performance obligation | 2,405 | 919 |
Later than one year | ||
Disclosure of transaction price allocated to remaining performance obligations [line items] | ||
Performance obligation | $ 1,554 | $ 17 |
Summary of significant accoun_9
Summary of significant accounting and reporting policies - Schedule of Useful Lives Most Commonly Used (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Building and leasehold improvements | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 6 years | |
Computer equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 3 years | |
Furniture and office equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 5 years | |
Bottom of range | Machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 3 years | |
Top of range | Machinery and equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Useful life | 5 years |
Segment information (Details)
Segment information (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |||
Operating segments [Abstract] | |||||
Number of operating segments | segment | 1 | ||||
Disclosure of geographical areas [line items] | |||||
Product revenue | $ 30,864 | $ 40,250 | [1] | $ 48,263 | [1],[2] |
Broadband and Critical IoT | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 10,431 | 11,657 | 27,900 | ||
Massive IoT | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 12,816 | 19,679 | 11,568 | ||
Vertical | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 7,617 | 8,914 | 8,795 | ||
Product | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 21,947 | 28,938 | [1] | 37,353 | [1],[2] |
License | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 2,578 | 2,707 | 2,838 | ||
Development and other services | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 6,339 | 8,605 | 8,072 | ||
U.S. dollar denominated accounts | United States of America | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 9,221 | 7,042 | 11,282 | ||
Taiwan | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 11,387 | 16,704 | 8,126 | ||
Korea | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 6,813 | 261 | 373 | ||
China | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 2,139 | 11,638 | 21,819 | ||
Rest of Asia | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 106 | 1,911 | 2,291 | ||
Total Asia | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | 20,445 | 30,514 | 32,609 | ||
Europe, Middle East, Africa | Rest of world | |||||
Disclosure of geographical areas [line items] | |||||
Product revenue | $ 1,198 | $ 2,694 | $ 4,372 | ||
Revenue Risk [Member] | International | |||||
Disclosure of geographical areas [line items] | |||||
Concentration Risk, Percentage | 99.80% | 99.60% | 100.00% | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Other revenues and expenses - S
Other revenues and expenses - Schedule of Financial Income and Expenses (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Revenue: | ||||||
Income from short-term investments and term deposits and other finance revenue | $ 50 | $ 71 | $ 60 | |||
Foreign exchange gain | 2,116 | 1,774 | 2,027 | |||
Total financial income | 2,166 | 1,845 | 2,087 | |||
Financial expenses: | ||||||
Interest on loans | 7,864 | 4,971 | 4,153 | |||
Interest on lease contracts (see Note 15) | 622 | 0 | 0 | |||
Interest on financing component of long term development services agreement (see note 18) | 619 | 0 | 0 | |||
Interest on supplier payable with extended payment terms | 0 | 0 | 213 | |||
Other bank fees and financial charges | 538 | 476 | 306 | |||
Other financial expenses | 0 | 400 | [1] | 0 | [1],[2] | |
Convertible debt amendments | $ 322 | 0 | 265 | [1] | 322 | [1],[2] |
Foreign exchange loss | 2,045 | 1,408 | 3,428 | |||
Total financial expenses | $ 11,688 | $ 7,520 | $ 8,422 | |||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Other revenues and expenses - F
Other revenues and expenses - Financial Income and Expenses (Narrative) (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest on loans | $ 7,864 | $ 4,971 | $ 4,153 | |||
Foreign exchange gains and losses related to hedges of euro | 71 | 366 | [1] | (1,401) | [1],[2] | |
Convertible debt amendments | $ 322 | 0 | 265 | [1] | 322 | [1],[2] |
Other financial expenses | 0 | 400 | [1] | 0 | [1],[2] | |
Loans and finance leases related to convertible debts issued and government loans granted | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Interest on loans | $ 7,732 | $ 4,872 | $ 4,094 | |||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Other revenues and expenses -_2
Other revenues and expenses - Schedule of Cost of Revenue, Operating Expenses, and Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Expense By Nature [Line Items] | |||||
Cost of components | $ 16,703 | $ 21,957 | [1] | $ 24,725 | [1],[2] |
Wages and benefits | 28,684 | 31,796 | 29,915 | ||
Share-based payment expenses | 1,797 | 1,812 | 1,638 | ||
Foreign exchange gains and losses related to hedges of euro | (71) | (366) | [1] | 1,401 | [1],[2] |
Wages and salaries | 19,953 | 22,501 | 21,535 | ||
Social security costs and other payroll taxes | 6,748 | 7,286 | 6,584 | ||
Other benefits | 161 | 125 | 58 | ||
Pension costs | 25 | 72 | 100 | ||
Expense for defined contributions plans | 1,254 | 1,369 | 1,230 | ||
Included in cost of revenue: | |||||
Expense By Nature [Line Items] | |||||
Cost of components | 14,039 | 19,058 | 22,137 | ||
Depreciation and impairment | 959 | 1,088 | 1,037 | ||
Amortization of intangible assets | 159 | 158 | 157 | ||
Wages and benefits | 1,780 | 2,368 | 2,233 | ||
Share-based payment expenses | 10 | 8 | 7 | ||
Assembly services, royalties and other | 1,538 | 1,682 | 1,551 | ||
Included in operating expenses (between gross profit and operating result): | |||||
Expense By Nature [Line Items] | |||||
Depreciation and impairment | 3,167 | 1,972 | 1,723 | ||
Amortization of intangible assets | 4,120 | 2,945 | 2,658 | ||
Wages and benefits | 25,052 | 27,616 | 26,044 | ||
Share-based payment expenses | 1,787 | 1,804 | 1,631 | ||
Foreign exchange gains and losses related to hedges of euro | 71 | (27) | 99 | ||
Other, net | $ 6,140 | $ 13,095 | $ 8,511 | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Other revenues and expenses - R
Other revenues and expenses - Research and Development Expense and Tax Credit Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Analysis of income and expense [abstract] | |||||
Receivables from taxes other than income tax | $ 2,860 | ||||
Research and development costs | 31,113 | $ 34,969 | $ 33,318 | ||
Research tax credit | (3,123) | (3,027) | (3,345) | ||
Government and other grants | (247) | (1,104) | (3,072) | ||
Development costs capitalized () | (5,020) | (3,376) | (1,931) | ||
Amortization of capitalized development costs | 1,076 | 447 | 232 | ||
Total research and development expense | 23,799 | 27,909 | [1] | 25,202 | [1],[2] |
Research tax credit | $ (606) | $ (459) | $ (259) | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Income tax - Schedule of Major
Income tax - Schedule of Major Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Taxes [Abstract] | |||||
Current income tax expense | $ 251 | $ 210 | $ 273 | ||
Deferred income tax expense (benefit) | (1,034) | (1,178) | 27 | ||
Income tax expense (benefit) reported in the Consolidated Statement of Operations | $ (783) | $ (968) | [1] | $ 300 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Income tax - Narrative (Details
Income tax - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Abstract] | ||||
French statutory rate | 28.00% | 28.00% | 34.43% | 34.43% |
Accumulated tax losses available for offset against future taxable profits | $ 294,017 | |||
Deferred tax liability | $ 429 | $ 691 | $ 52 | $ 22 |
Income tax - Reconciliation of
Income tax - Reconciliation of Income Taxes Computed at the French Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Income Taxes [Abstract] | ||||||
Profit (loss) before income taxes | $ (37,192) | $ (25,860) | ||||
Profit (Loss) before income taxes | $ (37,480) | (37,192) | [1] | (25,860) | [1],[2] | |
At France’s statutory income tax rate of 28% (34.43% in 2017) | $ (10,494) | $ (10,269) | $ (8,904) | |||
France's statutory income tax rate | 28.00% | 28.00% | 34.43% | 34.43% | ||
Non-deductible share-based payment expense | $ 503 | $ 507 | $ 564 | |||
Tax credits | (874) | (848) | (1,152) | |||
Permanent differences and other | 39 | (596) | (329) | |||
Unrecognized benefit of tax losses carryforward | 10,043 | 10,238 | 10,121 | |||
Income tax expense (benefit) reported in the Consolidated Statement of Operations | $ (783) | $ (968) | [1] | $ 300 | [1],[2] | |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Income tax - Summary of Deferre
Income tax - Summary of Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
At January 1st | $ 691 | $ 52 | $ 22 |
Tax expense (income) during the year recognized in Profit or Loss | (1,034) | (1,178) | 27 |
Tax expense during the year recognised in OCI | 773 | 1,818 | 0 |
Effect of foreign exchange | (1) | (1) | 3 |
At December 31st | $ 429 | $ 691 | $ 52 |
Income tax - Significant Compon
Income tax - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | $ 429 | $ 691 | $ 52 | $ 22 |
Deferred tax effect, equity | 773 | 1,818 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (1,034) | (1,178) | 27 | |
Government loans | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 46 | 47 | 46 | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (1) | 0 | (1) | |
Intangible assets | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 24 | 71 | 71 | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (47) | 0 | (16) | |
Lease contracts | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | (8) | 0 | 0 | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (8) | 0 | 0 | |
Cash flow hedge | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | (3) | (1) | 7 | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (2) | (8) | 14 | |
Remeasurement of non-monetary accounts | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | (103) | 99 | (249) | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (202) | 348 | (502) | |
Convertible debts and venture debt - liability | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 1,901 | 2,053 | 798 | |
Deferred tax effect, equity | 773 | 1,818 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (925) | (563) | 798 | |
Convertible debts and venture debt - equity component | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 2,591 | 1,818 | ||
Other provisions and accruals | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | (310) | (22) | (22) | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (288) | 0 | 0 | |
From subsidiaries | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | 19 | 35 | 52 | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | (16) | (17) | 30 | |
Loss available for offsetting against future taxable income | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liability (asset) | (1,137) | (1,591) | (651) | |
Deferred tax effect, equity | 0 | 0 | 0 | |
Tax expense (income) during the year recognized in Profit or Loss | $ 455 | $ (938) | $ (296) |
Earnings (loss) per share (Deta
Earnings (loss) per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Earnings per share [abstract] | |||||
Profit (Loss) | $ (36,697) | $ (36,224) | [1] | $ (26,160) | [1],[2] |
Weighted average number of shares outstanding for basic EPS (in shares) | 95,008,518 | 93,767,005 | [1] | 77,668,404 | [1],[2] |
Net effect of dilutive stock options (in shares) | 0 | 0 | 0 | ||
Net effect of dilutive warrants (in shares) | 0 | 0 | 0 | ||
Net effect of vesting of restricted stock (in shares) | 0 | 0 | 0 | ||
Net effect of conversion of convertible notes (in shares) | 0 | 0 | 0 | ||
Weighted average number of shares outstanding for diluted EPS (in shares) | 95,008,518 | 93,767,005 | [1] | 77,668,404 | [1],[2] |
Basic earnings (loss) per share (in dollars per share) | $ (0.39) | $ (0.39) | [1] | $ (0.34) | [1],[2] |
Diluted earnings (loss) per share (in dollars per share) | $ (0.39) | $ (0.39) | [1] | $ (0.34) | [1],[2] |
ADS outstanding for basic and diluted earnings (loss) per ADS (in shares) | 23,752,130 | 23,441,751 | [1] | 19,417,101 | [1],[2] |
Basic earnings (loss) per ADS (in dollars per share) | $ (1.54) | $ (1.55) | [1] | $ (1.35) | [1],[2] |
Diluted earnings (loss) per ADS (in dollars per share) | $ (1.54) | $ (1.55) | [1] | $ (1.35) | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Property, plant and equipment -
Property, plant and equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | ||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | $ (6,271) | [1] | $ (6,992) | [1],[2] | $ (6,659) | ||
Ending balance | (8,858) | (6,271) | [1] | (6,992) | [1],[2] | ||
Cost: | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Effect of adoption of new accounting standard - IFRS 16 | $ 4,556 | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (37,444) | (30,916) | (32,202) | ||||
Additions | 2,166 | 2,362 | 3,046 | ||||
Disposals | (145) | (303) | (4,495) | ||||
Reclassification | 0 | ||||||
Exchange difference | 46 | (87) | 163 | ||||
Ending balance | (39,511) | (37,444) | (30,916) | ||||
Depreciation and impairment: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | 26,617 | 23,924 | 25,543 | ||||
Disposals | 135 | 291 | 4,495 | ||||
Reclassification | 0 | ||||||
Increase (decrease) through transfers, property, plant and equipment | 0 | ||||||
Exchange difference | 45 | (76) | 116 | ||||
Depreciation charge for the year | 4,070 | 3,060 | 2,760 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 56 | ||||||
Ending balance | 30,653 | 26,617 | 23,924 | ||||
Leasehold improvements | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (296) | (29) | (520) | ||||
Ending balance | (120) | (296) | (29) | ||||
Leasehold improvements | Cost: | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Effect of adoption of new accounting standard - IFRS 16 | 0 | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (1,253) | (1,242) | (1,303) | ||||
Additions | 15 | 34 | 9 | ||||
Disposals | 0 | (30) | (87) | ||||
Reclassification | 14 | ||||||
Exchange difference | 3 | (7) | 17 | ||||
Ending balance | (1,271) | (1,253) | (1,242) | ||||
Leasehold improvements | Depreciation and impairment: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | 957 | 1,213 | 783 | ||||
Disposals | 0 | 18 | 87 | ||||
Reclassification | (275) | ||||||
Increase (decrease) through transfers, property, plant and equipment | (418) | ||||||
Exchange difference | 4 | (8) | 16 | ||||
Depreciation charge for the year | 190 | 188 | 226 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | ||||||
Ending balance | 1,151 | 957 | 1,213 | ||||
Plant and equipment | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (5,825) | (6,291) | (5,992) | ||||
Ending balance | (4,605) | (5,825) | (6,291) | ||||
Plant and equipment | Cost: | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Effect of adoption of new accounting standard - IFRS 16 | 0 | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (28,027) | (25,913) | (27,150) | ||||
Additions | 1,274 | 2,248 | 2,979 | ||||
Disposals | (130) | (70) | (4,327) | ||||
Reclassification | 0 | ||||||
Exchange difference | 32 | (64) | 111 | ||||
Ending balance | (29,203) | (28,027) | (25,913) | ||||
Plant and equipment | Depreciation and impairment: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | 22,202 | 19,622 | 21,158 | ||||
Disposals | 120 | 70 | 4,327 | ||||
Reclassification | (326) | ||||||
Increase (decrease) through transfers, property, plant and equipment | 0 | ||||||
Exchange difference | 30 | (55) | 60 | ||||
Depreciation charge for the year | 2,430 | 2,705 | 2,405 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 56 | ||||||
Ending balance | 24,598 | 22,202 | 19,622 | ||||
IT and office equipment | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (150) | (672) | (147) | ||||
Ending balance | (84) | (150) | (672) | ||||
IT and office equipment | Cost: | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Effect of adoption of new accounting standard - IFRS 16 | 0 | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (3,608) | (3,761) | (3,749) | ||||
Additions | 30 | 80 | 58 | ||||
Disposals | (15) | (203) | (81) | ||||
Reclassification | (14) | ||||||
Exchange difference | 11 | (16) | 35 | ||||
Ending balance | (3,634) | (3,608) | (3,761) | ||||
IT and office equipment | Depreciation and impairment: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | 3,458 | 3,089 | 3,602 | ||||
Disposals | 15 | 203 | 81 | ||||
Reclassification | 601 | ||||||
Increase (decrease) through transfers, property, plant and equipment | 418 | ||||||
Exchange difference | 11 | (13) | 40 | ||||
Depreciation charge for the year | 96 | 167 | 129 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | ||||||
Ending balance | 3,550 | 3,458 | 3,089 | ||||
Right of use | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | 0 | 0 | 0 | ||||
Ending balance | (4,049) | 0 | 0 | ||||
Right of use | Cost: | |||||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||||
Effect of adoption of new accounting standard - IFRS 16 | $ 4,556 | ||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (4,556) | 0 | 0 | ||||
Additions | 847 | 0 | 0 | ||||
Disposals | 0 | 0 | 0 | ||||
Reclassification | 0 | ||||||
Exchange difference | 0 | 0 | 0 | ||||
Ending balance | (5,403) | (4,556) | 0 | ||||
Right of use | Depreciation and impairment: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | 0 | 0 | 0 | ||||
Disposals | 0 | 0 | 0 | ||||
Reclassification | 0 | ||||||
Increase (decrease) through transfers, property, plant and equipment | 0 | ||||||
Exchange difference | 0 | 0 | 0 | ||||
Depreciation charge for the year | 1,354 | 0 | 0 | ||||
Impairment loss recognised in profit or loss, property, plant and equipment | 0 | ||||||
Ending balance | 1,354 | 0 | $ 0 | ||||
Previously stated | Cost: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (32,888) | ||||||
Ending balance | (32,888) | ||||||
Previously stated | Leasehold improvements | Cost: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (1,253) | ||||||
Ending balance | (1,253) | ||||||
Previously stated | Plant and equipment | Cost: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (28,027) | ||||||
Ending balance | (28,027) | ||||||
Previously stated | IT and office equipment | Cost: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | (3,608) | ||||||
Ending balance | (3,608) | ||||||
Previously stated | Right of use | Cost: | |||||||
Reconciliation of changes in property, plant and equipment [abstract] | |||||||
Beginning balance | $ 0 | ||||||
Ending balance | $ 0 | ||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Property, plant and equipment_2
Property, plant and equipment - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Right-of-use assets | $ 4,049,000 | $ 4,556,000 |
Additions | $ 847,000 | |
Real-estate | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Right-of-use assets | 5,006,000 | |
IT and office equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Right-of-use assets | $ 397,000 |
Intangible assets (Details)
Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | $ (12,409) | [1] | $ (9,562) | [1],[2] | $ (7,707) | |
Ending balance | (16,696) | (12,409) | [1] | (9,562) | [1],[2] | |
Cost: | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | (24,821) | (22,715) | (18,115) | |||
Additions/Amortization | 8,772 | 5,953 | 4,641 | |||
Disposals, Cost (Depreciation and impairment) | (2,045) | (3,834) | (64) | |||
Exchange difference | 7 | (13) | 23 | |||
Ending balance | (31,555) | (24,821) | (22,715) | |||
Depreciation and impairment: | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | 12,412 | 13,153 | 10,408 | |||
Additions/Amortization | 4,279 | 3,103 | 2,815 | |||
Disposals, Cost (Depreciation and impairment) | 1,838 | 3,834 | 64 | |||
Exchange difference | 6 | (10) | (6) | |||
Ending balance | 14,859 | 12,412 | 13,153 | |||
Capitalized development costs | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | (5,037) | (2,107) | (409) | |||
Ending balance | (8,982) | (5,037) | (2,107) | |||
Capitalized development costs | Cost: | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | (5,717) | (2,340) | (409) | |||
Additions/Amortization | 5,020 | 3,377 | 1,931 | |||
Disposals, Cost (Depreciation and impairment) | 0 | 0 | 0 | |||
Exchange difference | 0 | 0 | 0 | |||
Ending balance | (10,737) | (5,717) | (2,340) | |||
Capitalized development costs | Depreciation and impairment: | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | 680 | 233 | 0 | |||
Additions/Amortization | 1,075 | 447 | 233 | |||
Disposals, Cost (Depreciation and impairment) | 0 | 0 | 0 | |||
Exchange difference | 0 | 0 | 0 | |||
Ending balance | 1,755 | 680 | 233 | |||
Licenses | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | (7,372) | (7,455) | (7,298) | |||
Ending balance | (7,714) | (7,372) | (7,455) | |||
Licenses | Cost: | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | (19,104) | (20,375) | (17,706) | |||
Additions/Amortization | 3,752 | 2,576 | 2,710 | |||
Disposals, Cost (Depreciation and impairment) | (2,045) | (3,834) | (64) | |||
Exchange difference | 7 | (13) | 23 | |||
Ending balance | (20,818) | (19,104) | (20,375) | |||
Licenses | Depreciation and impairment: | ||||||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||||||
Beginning balance | 11,732 | 12,920 | 10,408 | |||
Additions/Amortization | 3,204 | 2,656 | 2,582 | |||
Disposals, Cost (Depreciation and impairment) | 1,838 | 3,834 | 64 | |||
Exchange difference | 6 | (10) | (6) | |||
Ending balance | $ 13,104 | $ 11,732 | $ 12,920 | |||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Components, net | $ 2,643 | $ 4,242 | $ 2,934 | ||
Finished goods, at the lower of cost and net realizable value | 4,021 | 4,001 | 4,442 | ||
Total net inventories | 6,664 | 8,243 | [1] | 7,376 | [1],[2] |
Gross carrying amount | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Components, net | 2,645 | 4,242 | 2,964 | ||
Finished goods, at the lower of cost and net realizable value | 4,702 | 4,502 | 5,035 | ||
Total net inventories | 7,347 | 8,744 | 7,999 | ||
Inventory adjustments | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Components, net | (2) | 0 | (30) | ||
Finished goods, at the lower of cost and net realizable value | (681) | (501) | (593) | ||
Total net inventories | $ (683) | $ (501) | $ (623) | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Provision included in Cost of product revenue | $ 681 | $ 501 | $ 199 |
Reversal of inventory write-down | 2,755 | ||
Components, net | $ 2,643 | 4,242 | 2,934 |
Damaged goods inventory adjustments | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Components, net | $ 265 | $ 265 |
Trade receivables - Schedule of
Trade receivables - Schedule of Non-Interest Bearing Trade Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Trade receivables | $ 11,957 | $ 16,758 | $ 18,754 | ||
Current contract assets | 1,587 | 2,707 | [1] | 3,112 | [1],[2] |
Unbilled revenue | 0 | 105 | 355 | ||
Unissued credit notes | (848) | (1,094) | (485) | ||
Provisions on trade receivables | (2,719) | (2,592) | (810) | ||
Net trade receivables | $ 9,977 | $ 15,884 | $ 20,926 | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Trade receivables - Schedule _2
Trade receivables - Schedule of Movements in the Provision for Impairment of Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
At January 1, | $ 2,592 | $ 810 | ||
At year end | 2,719 | 2,592 | $ 810 | |
Impaired additional trade receivables | 515 | |||
Trade receivables | ||||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||||
At January 1, | $ 2,719 | 2,592 | 810 | $ 628 |
Charge for the year | 515 | 1,782 | 182 | |
Utilized amounts | (388) | 0 | 0 | |
At year end | 2,719 | $ 2,592 | $ 810 | |
Provision for impairment | $ 1,782 |
Trade receivables - Aging Analy
Trade receivables - Aging Analysis of Trade Receivables That Were Not Impaired (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | $ 24,857 | $ 28,701 | $ 25,048 | |
Trade receivables | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | 9,977 | 15,884 | $ 20,926 | |
Trade receivables | Neither past due nor Impaired | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | 6,265 | 7,421 | 12,746 | |
Trade receivables | Past due but not impaired | Less than 30 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | 2,125 | 5,155 | 4,771 | |
Trade receivables | Past due but not impaired | 30-60 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | 130 | 49 | 1,036 | |
Trade receivables | Past due but not impaired | 60-120 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | 371 | 471 | 1,673 | |
Trade receivables | Past due but not impaired | Greater than 120 days | ||||
Disclosure of financial assets that are either past due or impaired [line items] | ||||
Total | $ 1,086 | $ 2,788 | $ 700 |
Cash and cash equivalents - Sch
Cash and cash equivalents - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2],[3] | ||
Subclassifications of assets, liabilities and equities [abstract] | |||||||
Cash at banks | $ 2,591 | $ 4,577 | $ 2,039 | ||||
Cash equivalents | 11,507 | 7,509 | 909 | ||||
Cash and cash equivalents | $ 14,098 | $ 12,086 | [1],[2] | $ 2,948 | [1],[2],[3],[4] | $ 20,202 | |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[2] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[3] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||
[4] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Cash and cash equivalents - S_2
Cash and cash equivalents - Schedule of Cash and Cash Equivalents Held in U.S. dollar and Euros (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [2],[3] | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 14,098 | $ 12,086 | [1],[2] | $ 2,948 | [1],[2],[3],[4] | $ 20,202 | |
U.S. dollar denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 13,702 | 4,411 | 1,343 | ||||
Euro denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 301 | 7,545 | 1,503 | ||||
GBP denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 37 | 30 | 30 | ||||
SGP denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 12 | 53 | 16 | ||||
NIS denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 19 | 21 | 11 | ||||
RMB denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | 11 | 7 | 21 | ||||
Other currencies denominated accounts | |||||||
Disclosure Of Cash And Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 16 | $ 19 | $ 24 | ||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[2] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||
[3] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | ||||||
[4] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Issued capital and reserves - A
Issued capital and reserves - Authorized Capital, In Number of Shares (Details) | Dec. 31, 2019shares | Dec. 31, 2018category€ / sharesshares | Dec. 31, 2017€ / sharesshares | Dec. 31, 2016€ / shares |
Share Capital, Reserves And Other Equity Interest [Abstract] | ||||
Authorised capital (in shares) | shares | 244,254,014 | 156,960,089 | 139,359,831 | |
Nominal value (euro per share) | € / shares | € 0.02 | € 0.02 | € 0.02 | |
Number of categories of authorized shares | category | 1 |
Issued capital and reserves - S
Issued capital and reserves - Shares Issued and Fully Paid (Details) € in Thousands, $ in Thousands | Dec. 31, 2019USD ($)shares | Dec. 31, 2019EUR (€)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2018EUR (€)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017EUR (€)shares | Dec. 31, 2016shares | ||
Share Capital, Reserves And Other Equity Interest [Abstract] | |||||||||
Ordinary shares (in shares) | 95,587,146 | 95,587,146 | 94,732,539 | 94,732,539 | 80,024,707 | 80,024,707 | 75,030,078 | ||
Ordinary shares | $ 2,403 | € 1,912 | $ 2,384 | [1] | € 1,895 | $ 2,031 | [1],[2] | € 1,597 | |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Issued capital and reserves - C
Issued capital and reserves - Capital Transactions (Details) | Feb. 18, 2019USD ($)€ / sharesshares | Feb. 18, 2019USD ($)shares | Jan. 17, 2018USD ($)$ / sharesshares | Jun. 16, 2017USD ($)$ / sharesshares | May 09, 2017USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Oct. 30, 2018USD ($) | Sep. 27, 2018USD ($) | Dec. 31, 2016shares | Apr. 27, 2016USD ($) | ||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||||||||||||
Number of warrants issued | shares | 9,392,986 | 9,392,986 | ||||||||||||||
Proceeds from issue of warrants to a strategic partner, net of transaction costs paid | $ 8,360,000 | $ 8,269,000 | $ 0 | [1] | $ 0 | [1],[2] | ||||||||||
Number of days from notice of which warrants are exercisable | 61 days | |||||||||||||||
Exercise price (in Euros per share) | € / shares | € 0.02 | |||||||||||||||
Exercise price per ADS (in dollars per share) | € / shares | € 0.08 | |||||||||||||||
Warrants expiration term | 15 years | |||||||||||||||
Shares issued (in shares) | shares | 95,587,146 | 94,732,539 | 80,024,707 | 75,030,078 | ||||||||||||
Total offering | $ 23,000,000 | $ 16,387,500 | $ 8,360,000 | $ 23,001,000 | $ 16,387,000 | |||||||||||
Share premium | € 8,360,000 | $ 8,360,000 | $ 22,647,631 | $ 16,291,254 | $ 165,114 | 233,720,000 | 225,470,000 | [3] | 204,952,000 | [3],[4] | ||||||
Ordinary shares issued in connection with a public offering (in shares) | shares | 14,375,000 | 4,312,500 | ||||||||||||||
Underwriters' over-allotment shares issued (in shares) | shares | 1,875,000 | 562,500 | ||||||||||||||
Ordinary share price (usd per share) | $ / shares | $ 1.60 | $ 3.80 | ||||||||||||||
Share price per ADS (usd per share) | $ / shares | $ 6.4 | $ 15.2 | ||||||||||||||
Costs directly attributable to the equity transaction | $ 2,200,000 | $ 1,500,000 | 91,000 | 2,160,000 | 1,489,000 | |||||||||||
Share capital | ||||||||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||||||||||||
Total offering | $ 352,369 | $ 96,246 | 1,380 | [5] | $ 353,000 | [5] | $ 96,000 | [5] | ||||||||
Ordinary shares issued in connection with a public offering (in shares) | shares | [5] | 14,375,000 | 4,312,500 | |||||||||||||
2016 convertible notes | ||||||||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | ||||||||||||||||
Notional amount | 160,000 | $ 1,000,000 | $ 6,000,000 | $ 7,160,000 | ||||||||||||
Accrued interest | $ 11,594 | |||||||||||||||
Shares issued (in shares) | shares | 63,258 | |||||||||||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||||||||||
[2] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | |||||||||||||||
[3] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||||||||||
[4] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. | |||||||||||||||
[5] | On November 29, 2019, the Company adjusted the ratio of shares to ADS : each ADS represents 4 ordinary shares |
Share-based payment plans - Nar
Share-based payment plans - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019€ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018€ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017€ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Expense from equity-settled share-based payment transactions | $ | $ 1,797 | $ 1,812 | $ 1,638 | ||||
Award vesting period | 10 years | ||||||
Weighted average remaining contractual life | 4 years 3 months | 5 years 2 months | 6 years | ||||
Weighted average fair value (in € per unit) | € / shares | € 0.37 | € 0.88 | € 1.52 | ||||
Sell price multiple that had been used | 3 | ||||||
Sell price multiple | 2 | 2 | 2 | ||||
Decrease in weighted average share price (as a percent) | 10.00% | ||||||
Decrease in total compensation (as a percent) | (9.46%) | (8.63%) | (8.73%) | ||||
Minimum | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Range of exercise prices (in usd per unit) | $ / shares | $ 1.20 | $ 1.20 | $ 1.20 | $ 1.20 | |||
Maximum | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Range of exercise prices (in usd per unit) | $ / shares | $ 8.50 | $ 8.50 | $ 8.50 | $ 8.50 | |||
Warrants | Consultants considered equivalent to employees | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Expense from equity-settled share-based payment transactions | $ | $ 22 | $ 24 | $ 14 | ||||
Restricted share awards (RSA) | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Weighted average fair value (in € per unit) | € / shares | € 0.67 | € 1 | € 2.15 |
Share-based payment plans - Gen
Share-based payment plans - General employee stock option, founders warrant plans and restricted shares awards (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 10 years | |
Founders warrants and stock options | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 4 years | |
Founders warrants and stock options | After the first year anniversary of grant | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting percentage | 25.00% | |
Founders warrants and stock options | Monthly over the remaining 36 months | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 36 months | |
Award vesting percentage | 75.00% | |
RSA | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 4 years | |
Sale period | 2 years | |
RSA | After the first year anniversary of grant | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 1 year | |
Award vesting percentage | 25.00% | |
RSA | Quarterly over the remaining three years | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 3 years | |
Award vesting percentage | 75.00% | |
RSA | After the two year anniversary of grant | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 2 years | |
Award vesting percentage | 50.00% | |
RSA | Vesting quarterly over the remaining two years | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 2 years | |
Award vesting percentage | 50.00% |
Share-based payment plans - War
Share-based payment plans - Warrant plans for certain consultants considered equivalent to employees (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 10 years | |
Vesting scenario 1 | Warrants | Consultants considered equivalent to employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 2 years | |
Vesting scenario 2 | Warrants | Consultants considered equivalent to employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 3 years | |
Vesting scenario 3 | Warrants | Consultants considered equivalent to employees | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Award vesting period | 4 years |
Share-based payment plans - Mov
Share-based payment plans - Movements in number and WAEP (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of units outstanding at January 1, | 5,983,452 | 6,197,848 | 7,177,500 |
Number of units granted during the year | 312,000 | 250,000 | 230,000 |
Number of units forfeited during the year | (452,992) | (269,082) | (336,365) |
Number of units exercised during the year | 0 | (14,814) | (431,790) |
Number of units expired during the year | (70,500) | 180,500 | (441,497) |
Number of units outstanding at period end | 5,771,960 | 5,983,452 | 6,197,848 |
Number of units exercisable at period end | 5,114,422 | 5,194,187 | 4,900,052 |
WAEP of units outstanding at January 1, (in usd per unit) | $ 3.50 | $ 3.59 | $ 3.55 |
WAEP of units granted during the year (in usd per unit) | 0.89 | 1.93 | 3.39 |
WAEP of units forfeited during the year (in usd per unit) | 2.56 | 2.84 | 4.75 |
WAEP of units exercised during the year (in usd per unit) | 0 | 1.85 | 2.28 |
WAEP of units expired during the year (in usd per unit) | 1.34 | 5.67 | 3.25 |
WAEP of units outstanding at period end (in usd per unit) | 3.46 | 3.50 | 3.59 |
WAEP of units exercisable at period end (in usd per unit) | $ 3.55 | 3.62 | 3.90 |
Weighted average share price of options at exercise date (in usd per option) | $ 2.20 | $ 3.49 | |
Warrants | Consultants considered equivalent to employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of units outstanding at January 1, | 180,500 | 151,500 | |
Number of units outstanding at period end | 177,500 | 180,500 | 151,500 |
Number of units exercisable at period end | 160,833 | 143,833 | 131,917 |
WAEP of units outstanding at January 1, (in usd per unit) | $ 2.75 | $ 3.29 | |
WAEP of units outstanding at period end (in usd per unit) | 2.70 | 2.75 | $ 3.29 |
WAEP of units exercisable at period end (in usd per unit) | $ 2.84 | $ 3.11 | $ 3.51 |
Share-based payment plans - M_2
Share-based payment plans - Movements in number and restricted shares awards (Details) - Restricted share awards (RSA) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Outstanding at January 1, | 2,746,181 | 1,467,166 | 634,720 |
Granted during the year | 4,180,218 | 1,803,550 | 1,002,650 |
Forfeited during the year | (184,314) | (206,517) | (15,200) |
Vested during the year | (858,898) | (318,018) | (155,004) |
Outstanding at period end | 5,883,187 | 2,746,181 | 1,467,166 |
Share-based payment plans - Val
Share-based payment plans - Valuation assumptions (Details) - € / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Dividend yield (%) | 0.00% | 0.00% | 0.00% | |
Risk–free interest rate (%) | 0.00% | 0.00% | ||
Assumed annual lapse rate of awards (%) | 10.00% | |||
Sell price multiple (applied to exercise price) | 2 | 2 | 2 | |
Weighted average share price (in € per share) | € 0.68 | € 1.08 | € 2.30 | |
Stock Options | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Assumed annual lapse rate of awards (%) | 2.00% | 2.00% | ||
RSA | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Assumed annual lapse rate of RSA (%) | 10.00% | 10.00% | 5.00% | |
Warrants | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Assumed annual lapse rate of RSA (%) | 2.00% | 2.00% | ||
Minimum | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expected volatility (%) | 63.00% | 63.00% | 63.00% | |
Risk–free interest rate (%) | 0.00% | |||
Maximum | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expected volatility (%) | 64.00% | 64.00% | 69.00% | |
Risk–free interest rate (%) | 0.47% |
Interest-bearing loans and bo_3
Interest-bearing loans and borrowings - Schedule of Interest-Bearing Loans and Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about borrowings [line items] | |||||
Non-current portion of other non-current borrowings | $ 7,071 | $ 11,811 | $ 0 | ||
Borrowings, Excluding Government Loans And Research Project Financing | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest-bearing financing of receivables | 16,506 | 11,118 | 7,413 | ||
Total non-current portion | 30,413 | 31,534 | 17,063 | ||
Venture debt | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest-bearing financing of receivables | 5,109 | 823 | 0 | ||
Interest-bearing receivables financing | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest-bearing financing of receivables | 4,068 | 10,295 | [1] | 7,413 | [1],[2] |
Convertible debt and accrued interest | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest-bearing financing of receivables | 7,329 | 0 | [1] | 0 | [1],[2] |
Convertible debt and accrued interest | $ 23,342 | $ 19,723 | [1] | $ 17,063 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Interest-bearing loans and bo_4
Interest-bearing loans and borrowings - Convertible Debt (Details) | Aug. 16, 2019USD ($)$ / shares | May 07, 2019USD ($)$ / shares | Feb. 18, 2019€ / sharesshares | Oct. 30, 2018USD ($) | Sep. 27, 2018USD ($)$ / sharesshares | Oct. 30, 2017USD ($)$ / shares | Apr. 14, 2015€ / shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Feb. 11, 2020$ / shares | Nov. 29, 2019$ / shares | Nov. 28, 2019$ / shares | May 09, 2017USD ($)shares | Dec. 31, 2016shares | May 12, 2016USD ($) | Apr. 27, 2016USD ($)$ / shares | Apr. 14, 2016USD ($) | Dec. 31, 2015USD ($) | Apr. 14, 2015USD ($)$ / shares | ||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Other financial expenses | $ 0 | $ 400,000 | [1] | $ 0 | [1],[2] | |||||||||||||||||||
Number of warrants issued | shares | 9,392,986 | |||||||||||||||||||||||
Exercise price (in dollars per share) | € / shares | € 0.02 | |||||||||||||||||||||||
Convertible debt amendments | $ 322,000 | $ 0 | $ 265,000 | [1] | $ 322,000 | [1],[2] | ||||||||||||||||||
Shares issued (in shares) | shares | 80,024,707 | 80,024,707 | 95,587,146 | 94,732,539 | 80,024,707 | 75,030,078 | ||||||||||||||||||
2015 notes, 2018 notes, warrants | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 6.80 | $ 1.70 | ||||||||||||||||||||||
2015 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Notional amount | $ 12,000,000 | |||||||||||||||||||||||
Conversion ratio | 0.5405405 | |||||||||||||||||||||||
Conversion price (in dollars per share) | (per share) | $ 1.70 | € 0.02 | $ 1.85 | |||||||||||||||||||||
2016 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Notional amount | $ 1,000,000 | $ 6,000,000 | $ 160,000 | $ 7,160,000 | ||||||||||||||||||||
Other financial expenses | $ 400,000 | |||||||||||||||||||||||
Accrued interest | $ 11,594 | |||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 2.25 | 9 | 2.25 | $ 2.7126 | ||||||||||||||||||||
Shares issued (in shares) | shares | 63,258 | |||||||||||||||||||||||
2019-1 notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Notional amount | $ 3,000,000 | |||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.21 | 4.84 | 1.21 | |||||||||||||||||||||
2019-2 notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Notional amount | $ 5,000,000 | |||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.03 | $ 4.12 | $ 1.03 | |||||||||||||||||||||
2018 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Notional amount | $ 4,500,000 | |||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.70 | |||||||||||||||||||||||
Subscription price (in dollars per share) | $ / shares | $ 1 | |||||||||||||||||||||||
Number of warrants issued | shares | 1,800,000 | |||||||||||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 1.70 | |||||||||||||||||||||||
Convertible debt | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Interest rate | 7.00% | |||||||||||||||||||||||
Market approach | 2015 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Interest rate used to value liability | 0.2569 | 0.2426 | ||||||||||||||||||||||
Market approach | 2019-1 notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Interest rate used to value liability | 0.3122 | |||||||||||||||||||||||
Market approach | 2019-2 notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Interest rate used to value liability | 0.2536 | |||||||||||||||||||||||
Market approach | 2018 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Interest rate used to value liability | 0.2381 | |||||||||||||||||||||||
Financial liabilities at fair value through profit or loss | Convertible debt embedded derivative | 2015 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Derivative financial liabilities | $ 8,324,000 | $ 6,091,000 | ||||||||||||||||||||||
Change in the fair value of convertible debt embedded derivative | $ 1,298,000 | |||||||||||||||||||||||
Decrease in borrowings | 1,994,000 | $ 1,103,000 | ||||||||||||||||||||||
Financial liabilities at fair value through profit or loss | Convertible debt embedded derivative | 2015 convertible notes following term extension | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Change in the fair value of convertible debt embedded derivative | 2,120,000 | |||||||||||||||||||||||
Financial liabilities at fair value through profit or loss | Convertible debt embedded derivative | 2016 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Derivative financial liabilities | $ 1,947,000 | |||||||||||||||||||||||
Financial liabilities at fair value through profit or loss | Convertible debt embedded derivative | 2019-1 notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Change in the fair value of convertible debt embedded derivative | $ 989,000 | |||||||||||||||||||||||
Financial liabilities at fair value through profit or loss | Convertible debt embedded derivative | 2019-2 notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Change in the fair value of convertible debt embedded derivative | $ 1,874,000 | |||||||||||||||||||||||
Financial liabilities at fair value through profit or loss | Convertible debt embedded derivative | 2018 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Derivative financial liabilities | $ 749,000 | |||||||||||||||||||||||
Change in the fair value of convertible debt embedded derivative | $ 1,366,000 | 3,788,000 | ||||||||||||||||||||||
Decrease in borrowings | $ 523,000 | |||||||||||||||||||||||
Major ordinary share transactions | 2016 convertible notes | ||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.225 | |||||||||||||||||||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||||||||||||||||||
[2] | (1) In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Interest-bearing loans and bo_5
Interest-bearing loans and borrowings - Venture Debt (Details) € / shares in Units, $ / shares in Units, $ in Thousands | Feb. 18, 2019€ / sharesshares | Oct. 26, 2018USD ($)$ / sharesshares | Oct. 26, 2018EUR (€) | Nov. 30, 2019USD ($) | Nov. 30, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 26, 2018EUR (€)shares | ||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Additional fee to be paid at end of term | 2.50% | 2.50% | |||||||||||
Number of warrants issued | shares | 9,392,986 | ||||||||||||
Exercise price (in dollars per share) | € / shares | € 0.02 | ||||||||||||
Exercise price per ADS (in dollars per share) | € / shares | € 0.08 | ||||||||||||
Repayment of venture debt | $ 801 | $ 0 | [1] | $ 0 | [1],[2] | ||||||||
Interest on loans | 7,864 | 4,971 | 4,153 | ||||||||||
Interest paid, classified as financing activities | 2,401 | 791 | [1] | $ 327 | [1],[2] | ||||||||
Bond Issuance Agreement | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Notional amount | $ 14,000 | € 12,000,000 | |||||||||||
Borrowings, interest rate | 9.00% | 9.00% | |||||||||||
Subscription price (in dollars per share) | $ / shares | $ 1 | ||||||||||||
Number of warrants issued | shares | 816,716 | 816,716 | |||||||||||
Exercise price (in dollars per share) | $ / shares | $ 1.34 | ||||||||||||
Exercise price per ADS (in dollars per share) | $ / shares | $ 5.36 | ||||||||||||
Venture debt | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Repayment of venture debt | $ 503 | € 448,000 | $ 801 | € 719,000 | |||||||||
Interest on loans | 1,796 | 327 | |||||||||||
Interest paid, classified as financing activities | $ 1,209 | $ 226 | |||||||||||
Venture debt | Financial liabilities at fair value through profit or loss | Bond Issuance Agreement | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Adjustments for increase (decrease) in derivative financial liabilities | $ (819) | € (712,000) | |||||||||||
Increase in borrowings | $ 12,800 | € 10,900,000 | |||||||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||||||||
[2] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Interest-bearing loans and bo_6
Interest-bearing loans and borrowings - Interest-Bearing Financing Receivables (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2014 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | Jul. 31, 2017 | Jul. 01, 2017 | |||
Disclosure of detailed information about borrowings [line items] | ||||||||
Accounts receivable | $ 15,884 | $ 9,977 | $ 20,926 | |||||
Interest-bearing receivables financing | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Interest rate | 1.60% | |||||||
Current borrowings | $ 10,295 | [1] | $ 4,068 | $ 7,413 | [1],[2] | |||
Interest-bearing receivables financing | LIBOR | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Adjustment to interest rate basis | 1.00% | |||||||
Factoring of receivables | Interest-bearing receivables financing | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Available borrowings, percentage of face value of accounts receivable | 90.00% | |||||||
Exclusion from past due period of accounts receivable | 60 days | |||||||
Service Sales [Member] | Factoring of receivables | Interest-bearing receivables financing | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Accounts receivable | $ 800 | |||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Lease liabilities (Details)
Lease liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |||
Disclosure of Leases [Line Items] | ||||||
Right-of-use assets | $ 4,049 | $ 4,556 | ||||
Lease liabilities | 4,104 | 4,623 | ||||
Current | 900 | $ 0 | [1] | $ 0 | [1],[2] | 1,415 |
Non-current | 3,204 | 0 | [1] | 0 | [1],[2] | $ 3,208 |
Weighted-average discount rate as at January 1, 2019 | 14.20% | |||||
Additions | 847 | |||||
Depreciation expense | (1,354) | |||||
Additions | 732 | |||||
Interest on lease contracts (see Note 15) | 622 | $ 0 | $ 0 | |||
Foreign exchange gain (loss) | 49 | |||||
Payments | (1,922) | |||||
Rental charges | 810 | |||||
Real-estate | ||||||
Disclosure of Leases [Line Items] | ||||||
Right-of-use assets | 3,942 | $ 4,159 | ||||
Additions | 847 | |||||
Depreciation expense | (1,064) | |||||
IT and office equipment | ||||||
Disclosure of Leases [Line Items] | ||||||
Right-of-use assets | 107 | 397 | ||||
Depreciation expense | $ (290) | |||||
IFRS 16 | ||||||
Disclosure of Leases [Line Items] | ||||||
Right-of-use assets | 4,563 | |||||
Lease liabilities | 4,623 | |||||
Current | 1,404 | |||||
Non-current | $ 3,226 | |||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Government grant advances and_3
Government grant advances and loans - Schedule of Government Grant Advances and Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Current | |||||
Government grant advances | $ 349 | $ 58 | $ 93 | ||
Research project financing | 674 | 172 | 899 | ||
Government loans | 449 | 458 | 600 | ||
Total current portion | 1,472 | 688 | [1] | 1,592 | [1],[2] |
Non-current | |||||
Government grant advances | 510 | 86 | 350 | ||
Research project financing | 4,652 | 4,274 | 2,946 | ||
Government loans | 348 | 819 | 1,353 | ||
Accrued interest | 640 | 495 | 381 | ||
Total non-current portion | $ 6,150 | $ 5,674 | [1] | $ 5,030 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Government grant advances and_4
Government grant advances and loans - Government Grant Advances (Details) € in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)project | Dec. 31, 2019EUR (€)project | Dec. 31, 2017USD ($)project | Dec. 31, 2017EUR (€)project | |
Research and Development Arrangement, Contract to Perform for Others1 [Line Items] | ||||
Number of collaborative projects | 2 | 2 | 1 | 1 |
Amount funded from government grant advances | $ 963 | € 856 | $ 386 | € 349 |
Minimum | ||||
Research and Development Arrangement, Contract to Perform for Others1 [Line Items] | ||||
Term of collaborative project | 1 year | 1 year | ||
Maximum | ||||
Research and Development Arrangement, Contract to Perform for Others1 [Line Items] | ||||
Term of collaborative project | 3 years | 3 years | 4 years | 4 years |
Government grant advances and_5
Government grant advances and loans - Research Project Financing (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Feb. 29, 2020USD ($) | Feb. 29, 2020EUR (€) | Dec. 31, 2016USD ($)installment | Dec. 31, 2016EUR (€)installment | Jan. 31, 2016USD ($)installment | Jan. 31, 2016EUR (€)installment | Oct. 31, 2014USD ($) | Oct. 31, 2014EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($)project | Dec. 31, 2017EUR (€)project | Dec. 31, 2016EUR (€) | Jan. 31, 2016EUR (€) | |||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Number of projects | project | 2 | 2 | |||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 447,000 | $ 589,000 | [1] | $ 116,000 | [1],[2] | ||||||||||||||
Accrued interest | 370,000,000 | 242,000 | 159,000 | ||||||||||||||||
Government Grant | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Proceeds received from long-term projects | 482,000 | € 425,000 | 492,000 | € 421,000 | (207,000) | € 176,000 | |||||||||||||
Forgivable Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Proceeds received from long-term projects | 644,000 | 567,000 | $ 1,083,000 | € 927,000 | $ (2,509,000) | € 2,132,000 | |||||||||||||
Long-Term Research Project - October 2014 | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Research project, term | 3 years | 3 years | 3 years | 4 years | 4 years | ||||||||||||||
Number of installments | installment | 3 | 3 | |||||||||||||||||
Reduction in debt carrying value | $ 115,000 | ||||||||||||||||||
Long-Term Research Project - October 2014 | Fixed Contractual Rate | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Interest rate | 1.53% | ||||||||||||||||||
Long-Term Research Project - October 2014 | Research project financing | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Total funding | 8,988,000 | $ 8,988,000 | € 6,967,000 | ||||||||||||||||
Long-Term Research Project - October 2014 | Government Grant | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Total funding | 3,815,000 | 3,815,000 | 2,957,000 | ||||||||||||||||
Long-Term Research Project - October 2014 | Forgivable Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Total funding | $ 5,173,000 | $ 5,173,000 | € 4,010,000 | ||||||||||||||||
Proceeds received from long-term projects | 1,126,000 | 992,000 | |||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 168,000 | € 150,000 | |||||||||||||||||
Long-Term Research Project - January 2016 | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Number of installments | installment | 4 | 4 | |||||||||||||||||
Reduction in debt carrying value | $ 30,000 | ||||||||||||||||||
Long-Term Research Project - January 2016 | Fixed Contractual Rate | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Interest rate | 1.17% | 1.17% | |||||||||||||||||
Long-Term Research Project - January 2016 | Research project financing | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Total funding | $ 2,288,000 | € 2,095,000 | |||||||||||||||||
Long-Term Research Project - January 2016 | Government Grant | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Total funding | 729,000 | 668,000 | |||||||||||||||||
Long-Term Research Project - January 2016 | Forgivable Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Total funding | $ 1,558,000 | € 1,427,000 | |||||||||||||||||
Royalty Agreement Terms | Long-Term Research Project - October 2014 | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Research project, term | 3 years | 3 years | 10 years | 10 years | |||||||||||||||
Excess sales amount threshold | $ 393,000,000 | € 350,000,000 | |||||||||||||||||
Period after termination date | 3 years | 3 years | |||||||||||||||||
Percentage of revenue from project | 1.00% | 1.00% | |||||||||||||||||
Maximum amount payable | $ 393,190,000 | € 350,000,000 | |||||||||||||||||
Royalty Agreement Terms | Long-Term Research Project - January 2016 | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Research project, term | 10 years | 10 years | |||||||||||||||||
Excess sales amount threshold | $ 3,300,000 | € 3,000,000 | |||||||||||||||||
Period after termination date | 4 years | 4 years | |||||||||||||||||
Percentage of revenue from project | 13.00% | 13.00% | |||||||||||||||||
Maximum amount payable | $ 674,000 | € 600,000 | |||||||||||||||||
Bottom of range | Research project financing | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Interest rate | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% | ||||||||||||||
Top of range | Research project financing | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Interest rate | 2.30% | 2.30% | 2.30% | 2.30% | 2.30% | ||||||||||||||
Entering into significant commitments or contingent liabilities | Long-Term Research Project - January 2016 | Forgivable Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Proceeds received from long-term projects | $ 405,000 | € 365,000 | |||||||||||||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||||||||||||||||
[2] | (1) In 2018, the Company adopted IFRS 15 "Revenue from Contracts with Customers" using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Government grant advances and_6
Government grant advances and loans - Government Loans (Details) | 1 Months Ended | |
Sep. 30, 2015USD ($)borrowing | Sep. 30, 2015EUR (€) | |
Government loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Number of government loans | borrowing | 2 | |
Government debt instruments | $ 2,228,000 | € 2,000,000 |
Debt term | 7 years | |
Government Loan - 5.24% Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Government debt instruments | € 1,000,000 | |
Interest rate | 5.24% | 5.24% |
Government Loan - Interest Free Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Government debt instruments | € 1,000,000 |
Provisions - Reconciliation of
Provisions - Reconciliation of Changes in Provisions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Reconciliation of changes in other provisions [abstract] | ||||||
Total, beginning of period | $ 2,041 | $ 1,564 | $ 1,352 | |||
Arising (released) during the year | 284 | 676 | 659 | |||
Released (used) during the year | (373) | (32) | (50) | |||
Released (unused) during the year | (47) | (167) | 397 | |||
Total, end of period | 1,905 | 2,041 | 1,564 | |||
Current | 0 | 352 | [1] | 32 | [1],[2] | $ 46 |
Non current | 1,905 | 1,689 | [1] | 1,532 | [1],[2] | $ 1,306 |
Other provisions | ||||||
Reconciliation of changes in other provisions [abstract] | ||||||
Total, beginning of period | 1,051 | 660 | 664 | |||
Arising (released) during the year | 190 | 590 | 443 | |||
Released (used) during the year | (352) | (32) | (50) | |||
Released (unused) during the year | (47) | (167) | 397 | |||
Total, end of period | 842 | 1,051 | 660 | |||
Post- employment benefits | ||||||
Reconciliation of changes in other provisions [abstract] | ||||||
Total, beginning of period | 990 | 904 | 688 | |||
Arising (released) during the year | 94 | 86 | 216 | |||
Released (used) during the year | (21) | 0 | 0 | |||
Released (unused) during the year | 0 | 0 | 0 | |||
Total, end of period | $ 1,063 | $ 990 | $ 904 | |||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Provisions - Narrative (Details
Provisions - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($)employee | Dec. 31, 2017USD ($)employee | Dec. 31, 2016USD ($) | |
Disclosure of other provisions [line items] | ||||
Actuarial gain (loss) included in comprehensive income | $ 108 | $ 47 | $ 46 | |
Number of employees retired during the year | employee | 1 | 0 | 0 | |
Provisions | $ 1,905 | $ 2,041 | $ 1,564 | $ 1,352 |
Royalty provision | ||||
Disclosure of other provisions [line items] | ||||
Increase (decrease) in other provisions | $ (352) | $ (397) |
Provisions - Schedule of Main A
Provisions - Schedule of Main Assumptions Used (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of defined benefit plans [line items] | |||
Discount rate | 0.77% | 1.57% | 1.30% |
Minimum | |||
Disclosure of defined benefit plans [line items] | |||
Salary increase | 1.50% | 1.50% | 1.50% |
Retirement age | 60 | 60 | 60 |
Turnover: depending on the seniority | 4.35% | 4.35% | 4.35% |
Maximum | |||
Disclosure of defined benefit plans [line items] | |||
Salary increase | 3.50% | 3.50% | 3.50% |
Retirement age | 62 | 62 | 62 |
Turnover: depending on the seniority | 0.00% | 0.00% | 0.00% |
Other non-current liabilities -
Other non-current liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Payables | $ 1,139 | $ 0 | [1] | $ 0 | [1],[2] |
Deferred tax liabilities | 429 | 691 | [1] | 52 | [1],[2] |
License and services agreement | 11,249 | 0 | 0 | ||
Deferred revenue | 323 | 808 | 1,293 | ||
Total contract liabilities | $ 11,572 | $ 808 | [1] | $ 1,293 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Other non-current liabilities_2
Other non-current liabilities - Narrative (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 24, 2019 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||||
Deferred tax liabilities | $ 429,000 | $ 691,000 | [1] | $ 52,000 | [1],[2] | |||
Deferred tax liability (asset) | 429,000 | 691,000 | 52,000 | $ 22,000 | ||||
License and services agreement estimated value exceeding | $ 35,000,000 | |||||||
License and services agreement upfront payment | 18,000,000 | |||||||
License and services agreement estimated value quarterly payments | $ 1,800,000 | |||||||
Recognized revenues | 2,285,000 | |||||||
Interest expenses on upfront payment | 619,000 | |||||||
Net remaining contract liability | 16,334,000 | |||||||
Current contract liabilities | 5,085,000 | |||||||
Non-current contract liabilities | 11,249,000 | |||||||
Contract liabilities | 988,000 | 740,000 | 497,000 | $ 1,940,000 | ||||
Non-current trade payables | 1,139,000 | 0 | [1] | 0 | [1],[2] | |||
Trade payables | 8,834,000 | 9,412,000 | [1] | 13,023,000 | [1],[2] | |||
Deferred revenue, non-current | 323,000 | 808,000 | 1,293,000 | |||||
Contract liabilities | 727,000 | 973,000 | 740,000 | |||||
Supplier contract | ||||||||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||||
Total amount | 3,500,000 | |||||||
Trade payables | 2,399,000 | 5,061,000 | ||||||
Development services | ||||||||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||||
Other revenue | 485,000 | 485,000 | $ 121,000 | |||||
Contract liabilities | 485,000 | 485,000 | ||||||
Convertible debts and venture debt - equity component | ||||||||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||||
Deferred tax liability (asset) | $ 2,591,000 | $ 1,818,000 | ||||||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Trade payables and other curr_3
Trade payables and other current liabilities - Schedule of Trade Payables and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Subclassifications of assets, liabilities and equities [abstract] | |||||
Trade payables | $ 8,834 | $ 9,412 | [1] | $ 13,023 | [1],[2] |
Other current liabilities: | |||||
Employees and social debts | 3,575 | 3,091 | 3,720 | ||
Others | 965 | 1,563 | 1,418 | ||
Total other current liabilities | 4,540 | 4,654 | [1] | 5,138 | [1],[2] |
Strategic agreement | 5,303 | 0 | 0 | ||
Deferred revenue, current | 727 | 973 | 740 | ||
Current contract liabilities | $ 5,812 | $ 973 | [1] | $ 740 | [1],[2] |
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Trade payables and other curr_4
Trade payables and other current liabilities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | |||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||
Trade payable term | 30 days | |||||
Trade payables | $ 9,412 | [1] | $ 13,023 | [1],[2] | $ 8,834 | |
Deferred revenue, current | $ 973 | 740 | 727 | |||
Supplier contract | ||||||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||
Interest rate | 8.34% | |||||
Trade payables | $ 2,399 | $ 5,061 | ||||
Maintenance Revenue | ||||||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||
Deferred revenue, maintenance period | 12 months | 12 months | ||||
Development services agreements | ||||||
Purchase Commitment, Excluding Long-term Commitment1 [Line Items] | ||||||
Deferred revenue, current | $ 973 | $ 740 | $ 727 | |||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | |||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Information about financial i_3
Information about financial instruments - Schedule of Financial Assets and Financial Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying amount | |||
Total financial assets | $ 24,857 | $ 28,701 | $ 25,048 |
Total current | 24,121 | 27,970 | 24,293 |
Total non-current | 736 | 731 | 755 |
Fair value | |||
Total financial assets | 24,857 | 28,701 | 25,048 |
Total current | 24,121 | 27,970 | 24,293 |
Total non-current | 736 | 731 | 755 |
Carrying amount | |||
Total financial liabilities | 67,694 | 58,183 | 43,574 |
Total current | 27,363 | 21,160 | 21,935 |
Total non-current | 40,331 | 37,023 | 21,639 |
Fair value | |||
Total financial liabilities | 67,729 | 58,168 | 42,820 |
Total current | 27,328 | 21,160 | 21,935 |
Total non-current | 40,401 | 37,008 | 20,885 |
Cash, cash equivalents and short-term investments | |||
Carrying amount | |||
Total financial assets | 14,098 | ||
Fair value | |||
Total financial assets | 14,098 | 12,086 | 3,295 |
Lease liability | |||
Carrying amount | |||
Total financial liabilities | 4,104 | 0 | 0 |
Fair value | |||
Total financial liabilities | 4,104 | 0 | 0 |
Interest-bearing loans and borrowings | Interest-bearing receivables financing | |||
Carrying amount | |||
Total financial liabilities | 4,068 | 10,295 | 7,413 |
Fair value | |||
Total financial liabilities | 4,068 | 10,295 | 7,413 |
Interest-bearing loans and borrowings | Convertible debt and accrued expenses | |||
Carrying amount | |||
Total financial liabilities | 30,671 | 19,723 | 17,063 |
Fair value | |||
Total financial liabilities | 30,706 | 19,708 | 16,309 |
Interest-bearing loans and borrowings | Venture debt | |||
Carrying amount | |||
Total financial liabilities | 12,180 | 12,634 | 0 |
Fair value | |||
Total financial liabilities | 12,180 | 12,634 | 0 |
Interest-bearing loans and borrowings | Government loans | |||
Carrying amount | |||
Total financial liabilities | 1,002 | 1,431 | 2,071 |
Fair value | |||
Total financial liabilities | 1,002 | 1,431 | 2,071 |
Interest-bearing loans and borrowings | Research project financing | |||
Carrying amount | |||
Total financial liabilities | 5,696 | 4,688 | 4,004 |
Fair value | |||
Total financial liabilities | 5,696 | 4,688 | 4,004 |
Trade and other payables (current and non current) | Trade and other payables (current and non current) | |||
Carrying amount | |||
Total financial liabilities | 9,973 | 9,412 | 13,023 |
Fair value | |||
Total financial liabilities | 9,973 | 9,412 | 13,023 |
Trade and other receivables | Trade receivables | |||
Carrying amount | |||
Total financial assets | 9,977 | 15,884 | 20,926 |
Fair value | |||
Total financial assets | 9,977 | 15,884 | 20,926 |
Deposits and other receivables | Deposits | |||
Carrying amount | |||
Total financial assets | 401 | 394 | 402 |
Fair value | |||
Total financial assets | 401 | 394 | 402 |
Other financial assets | Long-term investments | |||
Carrying amount | |||
Total financial assets | 335 | 337 | 353 |
Fair value | |||
Total financial assets | 335 | 337 | 353 |
Cash, cash equivalents and short-term investments | Cash, cash equivalents and short-term investments | |||
Carrying amount | |||
Total financial assets | 12,086 | 3,295 | |
Financial instruments at fair value through other comprehensive income | Cash flow hedges | |||
Carrying amount | |||
Total financial assets | 46 | 0 | 72 |
Fair value | |||
Total financial assets | $ 46 | $ 0 | $ 72 |
Information about financial i_4
Information about financial instruments - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Fair value | $ 24,857,000 | $ 28,701,000 | $ 25,048,000 |
Financial liabilities, at fair value | (67,729,000) | (58,168,000) | (42,820,000) |
Available for sale instruments | Long-term investments | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Fair value | 335,000 | 337,000 | 353,000 |
Level 1 | Available for sale instruments | Long-term investments | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Fair value | 0 | 0 | 0 |
Level 2 | Available for sale instruments | Long-term investments | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Fair value | 335,000 | 337,000 | 353,000 |
Level 3 | Available for sale instruments | Long-term investments | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Fair value | 0 | $ 0 | 0 |
Cash flow hedges | Financial instruments at fair value through other comprehensive income | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Financial liabilities, at fair value | 46,000 | 72,000 | |
Cash flow hedges | Financial instruments at fair value through other comprehensive income | Level 1 | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Financial liabilities, at fair value | 0 | ||
Cash flow hedges | Financial instruments at fair value through other comprehensive income | Level 2 | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Financial liabilities, at fair value | $ 46,000 | 72,000 | |
Cash flow hedges | Financial instruments at fair value through other comprehensive income | Level 3 | |||
Disclosure Of Financial Assets And Liabilities [Line Items] | |||
Financial liabilities, at fair value | $ 0 |
Information about financial i_5
Information about financial instruments - Schedule of Present Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | |||
Fair value | $ 67,729 | $ 58,168 | $ 42,820 |
Cash flow hedge | Financial instruments at fair value through other comprehensive income | |||
Disclosure of financial liabilities [line items] | |||
Notional Amount | 3,000 | 5,250 | |
Fair value | $ 46 | $ 72 | |
Cash flow hedge | Forward contracts | Financial instruments at fair value through other comprehensive income | |||
Disclosure of financial liabilities [line items] | |||
Notional Amount | 3,000 | 2,250 | |
Fair value | $ 46 | $ 53 | |
Cash flow hedge | Options | Financial instruments at fair value through other comprehensive income | |||
Disclosure of financial liabilities [line items] | |||
Notional Amount | 0 | 3,000 | |
Fair value | $ 0 | $ 19 |
Information about financial i_6
Information about financial instruments - Narrative (Details) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)$ / £ | Dec. 31, 2019USD ($)$ / ₪ | Dec. 31, 2019USD ($)$ / € | Dec. 31, 2019USD ($)$ / $ | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)bank | Dec. 31, 2018USD ($)$ / £ | Dec. 31, 2018USD ($)$ / ₪ | Dec. 31, 2018USD ($)$ / € | Dec. 31, 2018USD ($)$ / $ | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)$ / £ | Dec. 31, 2017USD ($)$ / ₪ | Dec. 31, 2017USD ($)$ / € | Dec. 31, 2017USD ($)$ / $ | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Net gain (loss) on cash flow hedge | $ 57,000 | $ (69,000) | $ 195,000 | ||||||||||||||||
Loss transferred from other comprehensive income to the statement of operations | (53,000) | (44,000) | |||||||||||||||||
Gain (loss) related to ineffective position of hedging instrument | 0 | (3,000) | |||||||||||||||||
Derivative maturity period | 12 months | ||||||||||||||||||
Fair value | $ 24,857,000 | $ 24,857,000 | $ 24,857,000 | $ 24,857,000 | $ 24,857,000 | $ 24,857,000 | 24,857,000 | $ 24,857,000 | $ 28,701,000 | $ 28,701,000 | $ 28,701,000 | $ 28,701,000 | 28,701,000 | $ 25,048,000 | $ 25,048,000 | $ 25,048,000 | $ 25,048,000 | 25,048,000 | |
Average rate | 1.2758 | 0.2806 | 1.1196 | 0.7331 | 1.3356 | 0.2782 | 1.1815 | 0.7416 | 1.2885 | 0.2780 | 1.1293 | 0.7244 | |||||||
Contract liabilities | 988,000 | $ 988,000 | $ 988,000 | $ 988,000 | $ 988,000 | 988,000 | 988,000 | 988,000 | $ 740,000 | $ 740,000 | $ 740,000 | $ 740,000 | 740,000 | $ 497,000 | $ 497,000 | $ 497,000 | $ 497,000 | 497,000 | $ 1,940,000 |
Available-for-sale financial assets | Long-term investments | |||||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Fair value | 335,000 | 335,000 | 335,000 | $ 335,000 | 335,000 | $ 335,000 | 335,000 | $ 335,000 | $ 337,000 | $ 337,000 | $ 337,000 | $ 337,000 | $ 337,000 | $ 353,000 | $ 353,000 | $ 353,000 | $ 353,000 | $ 353,000 | |
Foreign currency risk | |||||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Reasonably possible change in risk variable, percent | 10.00% | ||||||||||||||||||
Average rate | $ / € | 1.1218 | ||||||||||||||||||
Impact of change in the corresponding risk variable on operating expenses | 3,800,000 | ||||||||||||||||||
Foreign currency risk | U.S. dollar denominated accounts | |||||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Percentage of total revenues | 100.00% | ||||||||||||||||||
Percentage of total cost of sales | 89.00% | ||||||||||||||||||
Foreign currency risk | Euro denominated accounts | |||||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Percentage of operating expenses | 61.00% | ||||||||||||||||||
Credit risk | |||||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Number of banks | bank | 3 | ||||||||||||||||||
Liquidity risk | |||||||||||||||||||
Disclosure of detailed information about financial instruments [line items] | |||||||||||||||||||
Contract liabilities | $ 16,334,000 | $ 16,334,000 | $ 16,334,000 | $ 16,334,000 | $ 16,334,000 | $ 16,334,000 | $ 16,334,000 | $ 16,334,000 |
Information about financial i_7
Information about financial instruments - Summary of Customers Representing Company's Total Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disclosure of major customers [line items] | |||||
Accounts receivable | $ 8,390 | $ 13,177 | [1] | $ 17,814 | [1],[2] |
Credit risk | Customer A | Taiwan | |||||
Disclosure of major customers [line items] | |||||
Percentage of entity's revenue | 27.00% | 32.00% | 16.00% | ||
Accounts receivable | $ 1,383,000 | $ 5,881,000 | $ 4,060,000 | ||
Credit risk | Customer B | Korea | |||||
Disclosure of major customers [line items] | |||||
Percentage of entity's revenue | 22.00% | 0.00% | 0.00% | ||
Accounts receivable | $ 2,680,000 | $ 0 | $ 0 | ||
Credit risk | Customer C | Taiwan | |||||
Disclosure of major customers [line items] | |||||
Percentage of entity's revenue | 10.00% | 0.00% | |||
Accounts receivable | $ 1,745,000 | $ 1,138,000 | $ 0 | ||
Credit risk | Customer D | China | |||||
Disclosure of major customers [line items] | |||||
Percentage of entity's revenue | 13.00% | ||||
Accounts receivable | 0 | $ 1,858,000 | $ 911,000 | ||
Credit risk | Customer E | Taiwan | |||||
Disclosure of major customers [line items] | |||||
Percentage of entity's revenue | 17.00% | ||||
Accounts receivable | $ 201,000 | $ 2,526,000 | $ 5,352,000 | ||
[1] | (2) In 2019, the Company adopted IFRS 16 "Leases" standard using the modified retrospective approach. Accordingly, prior period amounts have not been restated. | ||||
[2] | In 2018, the Company adopted IFRS 15 “Revenue from Contracts with Customers” using the modified retrospective application approach. Accordingly, prior period amounts have not been restated. |
Information about financial i_8
Information about financial instruments - Schedule of Liquidity Risk (Details) - Liquidity risk - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | $ 87,538 | $ 79,434 | $ 56,755 |
Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 33,934 | 27,155 | 27,129 |
1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 37,384 | 15,481 | 17,499 |
2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 12,528 | 32,033 | 10,356 |
3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,348 | 4,317 | 788 |
4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,037 | 375 | 542 |
More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,307 | 73 | 441 |
Research project financing | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 6,032 | 5,389 | 3,845 |
Research project financing | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 739 | 238 | 899 |
Research project financing | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 2,252 | 973 | 1,246 |
Research project financing | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 2,601 | 2,043 | 671 |
Research project financing | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 368 | 1,687 | 291 |
Research project financing | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 72 | 375 | 297 |
Research project financing | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 73 | 441 |
Interest-bearing receivables financing | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 4,068 | 10,295 | 7,413 |
Interest-bearing receivables financing | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 4,068 | 10,295 | 7,413 |
Interest-bearing receivables financing | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Interest-bearing receivables financing | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Interest-bearing receivables financing | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Interest-bearing receivables financing | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Interest-bearing receivables financing | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Government loans | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,173 | 1,695 | 2,431 |
Government loans | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 478 | 499 | 656 |
Government loans | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 466 | 487 | 523 |
Government loans | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 229 | 475 | 510 |
Government loans | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 234 | 497 |
Government loans | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 245 |
Government loans | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Convertible debt and accrued interest | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 40,779 | 31,220 | 24,905 |
Convertible debt and accrued interest | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 7,863 | 0 | 0 |
Convertible debt and accrued interest | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 26,792 | 7,863 | 15,730 |
Convertible debt and accrued interest | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 6,124 | 23,357 | 9,175 |
Convertible debt and accrued interest | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Convertible debt and accrued interest | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Convertible debt and accrued interest | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Venture debt | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 14,435 | 16,769 | |
Venture debt | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 6,042 | 2,057 | |
Venture debt | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 6,042 | 6,158 | |
Venture debt | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 2,351 | 6,158 | |
Venture debt | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 2,396 | |
Venture debt | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | |
Venture debt | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | |
Lease liability | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 6,204 | ||
Lease liability | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,147 | ||
Lease liability | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 832 | ||
Lease liability | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 973 | ||
Lease liability | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 980 | ||
Lease liability | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 965 | ||
Lease liability | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,307 | ||
Trade payables | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 10,307 | 9,412 | 13,023 |
Trade payables | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 9,057 | 9,412 | 13,023 |
Trade payables | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 1,000 | 0 | 0 |
Trade payables | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 250 | 0 | 0 |
Trade payables | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Trade payables | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Trade payables | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Other current liabilities | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 4,540 | 4,654 | 5,138 |
Other current liabilities | Within one year | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 4,540 | 4,654 | 5,138 |
Other current liabilities | 1 to 2 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Other current liabilities | 2 to 3 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Other current liabilities | 3 to 4 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Other current liabilities | 4 to 5 years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | 0 | 0 | 0 |
Other current liabilities | More than five years | |||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |||
Financial liabilities considered in liquidity risk | $ 0 | $ 0 | $ 0 |
Information about financial i_9
Information about financial instruments - Changes in Liabilities Arising from Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | $ 53,637 | $ 31,098 | $ 29,795 |
Increase (decrease) through financing cash flows | (1,186) | 20,438 | 2,301 |
Increase (decrease) through effect of changes in foreign exchange rates | (303) | (493) | 915 |
Increase (decrease) through non-cash interest | 8,482 | 4,913 | 4,077 |
Increase (decrease) through non-cash impact of amendment | (1,986) | (3,630) | (3,097) |
Increase (decrease) through other changes | 58,644 | (3,312) | (2,893) |
Liabilities arising from financing activities ending balance | 53,637 | 31,098 | |
Government grant advances and loans | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 6,362 | 6,622 | 5,745 |
Increase (decrease) through financing cash flows | 1,006 | 985 | 2,600 |
Increase (decrease) through effect of changes in foreign exchange rates | (112) | (250) | 915 |
Increase (decrease) through non-cash interest | 220 | 151 | 90 |
Increase (decrease) through non-cash impact of amendment | 145 | 0 | 0 |
Increase (decrease) through other changes | 7,621 | (1,146) | (2,728) |
Liabilities arising from financing activities ending balance | 6,362 | 6,622 | |
Convertible debt | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 19,723 | 17,063 | 16,338 |
Increase (decrease) through financing cash flows | 7,967 | 3,202 | 0 |
Increase (decrease) through effect of changes in foreign exchange rates | 0 | 0 | 0 |
Increase (decrease) through non-cash interest | 5,844 | 4,435 | 3,987 |
Increase (decrease) through non-cash impact of amendment | (2,863) | (3,630) | (3,097) |
Increase (decrease) through other changes | 30,671 | (1,347) | (165) |
Liabilities arising from financing activities ending balance | 19,723 | 17,063 | |
Venture debt | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 12,634 | 0 | |
Increase (decrease) through financing cash flows | (2,010) | 13,369 | |
Increase (decrease) through effect of changes in foreign exchange rates | (240) | (243) | |
Increase (decrease) through non-cash interest | 1,796 | 327 | |
Increase (decrease) through non-cash impact of amendment | 0 | 0 | |
Increase (decrease) through other changes | 12,180 | (819) | |
Liabilities arising from financing activities ending balance | 12,634 | 0 | |
Lease contracts | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 4,623 | ||
Increase (decrease) through financing cash flows | (1,922) | ||
Increase (decrease) through effect of changes in foreign exchange rates | 49 | ||
Increase (decrease) through non-cash interest | 622 | ||
Increase (decrease) through non-cash impact of amendment | 732 | ||
Increase (decrease) through other changes | 4,104 | ||
Liabilities arising from financing activities ending balance | 4,623 | ||
Interest-bearing receivables financing | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 10,295 | 7,413 | 7,712 |
Increase (decrease) through financing cash flows | (6,227) | 2,882 | (299) |
Increase (decrease) through effect of changes in foreign exchange rates | 0 | 0 | 0 |
Increase (decrease) through non-cash interest | 0 | 0 | 0 |
Increase (decrease) through non-cash impact of amendment | 0 | 0 | 0 |
Increase (decrease) through other changes | 4,068 | 0 | 0 |
Liabilities arising from financing activities ending balance | 10,295 | $ 7,413 | |
Previously stated | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 49,014 | ||
Liabilities arising from financing activities ending balance | 49,014 | ||
Previously stated | Government grant advances and loans | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 6,362 | ||
Liabilities arising from financing activities ending balance | 6,362 | ||
Previously stated | Convertible debt | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 19,723 | ||
Liabilities arising from financing activities ending balance | 19,723 | ||
Previously stated | Venture debt | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | 12,634 | ||
Liabilities arising from financing activities ending balance | 12,634 | ||
Previously stated | Interest-bearing receivables financing | |||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | |||
Liabilities arising from financing activities beginning balance | $ 10,295 | ||
Liabilities arising from financing activities ending balance | $ 10,295 |
Commitments and contingencies -
Commitments and contingencies - Contingencies (Details) - USD ($) $ in Thousands | Aug. 01, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of contingent liabilities [line items] | |||
Provision for risk | $ 700 | ||
Payments above limit | $ 700 | ||
Class Action Lawsuit, Revenue Recognition Policy | |||
Disclosure of contingent liabilities [line items] | |||
Revenue | $ 740 |
Commitments and contingencies_2
Commitments and contingencies - Bank Guarantee (Details) - Bank guarantee - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | ||
Term of secured lease payments | 6 months | |
Bank guarantee issued in favor of owners of new leased office space | $ 330 | $ 336 |
Amount of guarantee secured, percentage | 100.00% | |
Total value of investments | $ 335 | $ 337 |
Commitments and contingencies_3
Commitments and contingencies - Purchase Commitments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Non-cancelable purchase commitments with third-party manufacturer and suppliers for future deliveries of equipment and components | |
Disclosure of contingent liabilities [line items] | |
Purchase commitments | $ 3.5 |
Commitments and contingencies_4
Commitments and contingencies - Pledge of Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Contingent liabilities related to joint ventures | ||
Disclosure of contingent liabilities [line items] | ||
Financial assets pledged as collateral | $ 4.5 | $ 4.1 |
Specified bank accounts | ||
Disclosure of contingent liabilities [line items] | ||
Financial assets pledged as collateral | $ 13.9 | $ 11.9 |
Related party disclosures - Nar
Related party disclosures - Narrative (Details) - USD ($) | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Aug. 31, 2019 | Aug. 16, 2019 | May 31, 2019 | May 07, 2019 | Oct. 30, 2018 | Sep. 30, 2018 | Sep. 27, 2018 | May 09, 2017 | Apr. 30, 2016 | Apr. 27, 2016 | Apr. 30, 2015 | Apr. 14, 2015 | |
BPI France Participation – Fonds Large Venture | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Share capital of the Company (in excess of) | 10.00% | ||||||||||||
2015 convertible notes | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 12,000,000 | ||||||||||||
2015 convertible notes | Affiliate of Nokomis Capital, L.L.C. | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 4,500,000 | $ 12,000,000 | |||||||||||
Fair value of convertible note | $ 30,700,000 | ||||||||||||
2019-1 notes | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 3,000,000 | ||||||||||||
2019-1 notes | Affiliate of Nokomis Capital, L.L.C. | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 3,000,000 | ||||||||||||
2019-2 notes | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 5,000,000 | ||||||||||||
2019-2 notes | Affiliate of Nokomis Capital, L.L.C. | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 5,000,000 | ||||||||||||
2016 convertible notes | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 1,000,000 | $ 6,000,000 | $ 160,000 | $ 7,160,000 | |||||||||
2016 convertible notes | Affiliate of Nokomis Capital, L.L.C. | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Notional amount | $ 6,000,000 |
Related party disclosures - Com
Related party disclosures - Compensation of Key Management Personnel (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | |||
Fixed and variable wages, social charges and benefits expensed in the year | $ 2,179,000 | $ 2,348,000 | $ 2,376,000 |
Share-based payment expense for the year | 1,106,000 | 1,397,000 | 1,043,000 |
Board members fees to non-executive members | 210,000 | 199,000 | 190,000 |
Total compensation expense for key management personnel | 3,495,000 | $ 3,944,000 | $ 3,609,000 |
Key management personnel | |||
Disclosure of transactions between related parties [line items] | |||
Total compensation expense for key management personnel | $ 18,000 | ||
Termination indemnity amount (in months) | 18 months | ||
Percentage of bonus in event of dismissal | 150.00% |
Related party disclosures - Dir
Related party disclosures - Directors’ Interests In An Employee Share Incentive Plan (Details) $ / shares in Units, $ in Thousands | Jul. 01, 2019$ / shares | Jun. 28, 2019shares | Jul. 02, 2018$ / shares | Jun. 29, 2018shares | Jul. 30, 2017shares | Jul. 03, 2017$ / shares | Jun. 30, 2017shares | Jun. 28, 2016shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2019€ / shares | Dec. 31, 2018€ / shares |
Disclosure of transactions between related parties [line items] | |||||||||||||
Subscription price (eur per share) | $ / shares | $ 3.55 | $ 3.62 | $ 3.90 | ||||||||||
Share-based payment expense | $ | $ 1,106 | $ 1,397 | $ 1,043 | ||||||||||
Warrants | Board of Directors | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Exercise price (usd per share) | $ / shares | $ 0.89 | $ 2.04 | $ 3.31 | ||||||||||
Subscription price (eur per share) | € / shares | € 0.00002778 | € 0.01 | |||||||||||
Share-based payment expense | $ | $ 28 | $ 65 | $ 89 | ||||||||||
Warrants | Mr. de Pesquidoux | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Number of warrants authorized (in shares) | 36,000 | 30,000 | |||||||||||
Warrants | Mr. Pitteloud | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Number of warrants authorized (in shares) | 30,000 | 30,000 | 20,000 | ||||||||||
Warrants | Mr. Sharma | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Number of warrants authorized (in shares) | 30,000 | 30,000 | 20,000 | ||||||||||
Warrants | Mr. Slonimsky | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Number of warrants authorized (in shares) | 30,000 | 30,000 | 20,000 | ||||||||||
Warrants | Mr. Maitre | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Number of warrants authorized (in shares) | 30,000 | 30,000 | 20,000 | ||||||||||
Warrants | Mr. Nottenburg | |||||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||||
Number of warrants authorized (in shares) | 30,000 | 30,000 |
Events after the reporting da_2
Events after the reporting date (Details) | Feb. 04, 2020 | Feb. 04, 2020shares | Feb. 04, 2020ads | Dec. 31, 2018 | Mar. 20, 2020 | Feb. 11, 2020$ / shares | Jan. 29, 2020USD ($) | Nov. 29, 2019$ / shares | Nov. 28, 2019$ / shares | Oct. 30, 2017$ / shares | Apr. 27, 2016$ / shares |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Award vesting period | 10 years | ||||||||||
Entering into significant commitments or contingent liabilities | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Physical assets acquired | $ | $ 220,000 | ||||||||||
Agreement to pay in first quarter of 2020 | $ | 150,000 | ||||||||||
Agreement to pay in June 2024 | $ | $ 1,430,000 | ||||||||||
Granting of shares | Restricted share awards | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Number of awards granted (in shares) | 880,896 | 220,224 | |||||||||
Award vesting period | 4 years | ||||||||||
2016 convertible notes | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Conversion price (in dollars per share) | $ 9 | $ 2.25 | $ 2.25 | $ 2.7126 | |||||||
Conversion price (in dollars per ADS) | $ 9 | ||||||||||
2016 convertible notes | Major ordinary share transactions | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Conversion price (in dollars per share) | $ 1.225 | ||||||||||
Conversion price (in dollars per ADS) | $ 4.90 | ||||||||||
Convertible Notes Amended, Option One | Entering into significant commitments or contingent liabilities | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
Conversion price premium percentage | 20.00% | ||||||||||
PIK interest rate | 7.00% | ||||||||||
Warrant, as a percentage of note value | 10.00% | ||||||||||
Exercise price, premium percentage | 20.00% | ||||||||||
Convertible Notes Amended, Option Two | Entering into significant commitments or contingent liabilities | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
PIK interest rate | 9.50% | ||||||||||
Warrant, as a percentage of note value | 15.00% | ||||||||||
Exercise price, premium percentage | 20.00% | ||||||||||
Convertible Notes Amended, Option Three | Entering into significant commitments or contingent liabilities | |||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||
PIK interest rate | 13.50% | ||||||||||
Warrant, as a percentage of note value | 20.00% | ||||||||||
Exercise price, premium percentage | 20.00% |