Cover
Cover | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity File Number | 001-35135 |
Entity Registrant Name | Sequans Communications S.A. |
Amendment Flag | false |
Entity Central Index Key | 0001383395 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Document Period End Date | Jun. 30, 2021 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||
Total revenue | $ 25,178,000 | $ 21,003,000 |
Cost of revenue: | ||
Total cost of revenue | 11,725,000 | 10,594,000 |
Gross profit | 13,453,000 | 10,409,000 |
Operating expenses: | ||
Research and development | 13,102,000 | 14,933,000 |
Sales and marketing | 4,591,000 | 4,135,000 |
General and administrative | 4,967,000 | 4,687,000 |
Total operating expenses | 22,660,000 | 23,755,000 |
Operating loss | (9,207,000) | (13,346,000) |
Financial Income (Expense) | ||
Interest expense | (6,146,000) | (7,228,000) |
Interest income | 24,000 | 20,000 |
Change in fair value of convertible debt derivative | (2,682,000) | (14,762,000) |
Impact of debt reimbursement | 5,177,000 | 1,399,000 |
Foreign exchange gain (loss), net | 394,000 | 170,000 |
Loss before income taxes | (12,440,000) | (33,747,000) |
Income tax expense (benefit) | 297,000 | 477,000 |
Loss | (12,737,000) | (34,224,000) |
Attributable to: | ||
Shareholders of the parent | (12,737,000) | (34,224,000) |
Non-controlling interests | $ 0 | $ 0 |
Basic earnings (loss) per ADS (in dollars per share) | $ (0.35) | $ (1.34) |
Diluted earnings (loss) per ADS (in dollars per share) | $ (0.35) | $ (1.34) |
Weighted average number of ADS used for computing: | ||
Basic earnings (loss) per ADS (in shares) | 35,894,642 | 25,502,105 |
Diluted earnings (loss) per ADS (in shares) | 35,894,642 | 25,502,105 |
Product revenue | ||
Revenue: | ||
Total revenue | $ 15,941,000 | $ 14,275,000 |
Cost of revenue: | ||
Total cost of revenue | 10,824,000 | 9,781,000 |
Other revenue | ||
Revenue: | ||
Total revenue | 9,237,000 | 6,728,000 |
Cost of revenue: | ||
Total cost of revenue | $ 901,000 | $ 813,000 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of comprehensive income [abstract] | ||
Loss for the period | $ (12,737) | $ (34,224) |
Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods : | ||
Net gain (loss) on cash flow hedge | (92) | (58) |
Exchange differences on translation of foreign operations | 125 | (125) |
Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods | 33 | (183) |
Other comprehensive income (loss) not to be reclassified to profit or loss in subsequent periods : | ||
Re-measurement gains (losses) on defined benefit plans | (24) | (24) |
Net other comprehensive income (loss) not to be reclassified to profit or loss in subsequent periods | (24) | (24) |
Total other comprehensive income (loss) | 9 | (207) |
Total comprehensive income (loss) | (12,728) | (34,431) |
Attributable to: | ||
Shareholders of the parent | (12,728) | (34,431) |
Non-controlling interests | $ 0 | $ 0 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Financial Position € in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Non-current assets: | ||
Property, plant and equipment | $ 8,103,000 | $ 9,187,000 |
Intangible assets | 31,535,000 | 25,312,000 |
Deposits and other receivables | 3,414,000 | 588,000 |
Other non-current financial assets | 374,000 | 386,000 |
Total non-current assets | 43,426,000 | 35,473,000 |
Current assets: | ||
Inventories | 5,206,000 | 6,225,000 |
Trade receivables | 7,433,000 | 17,277,000 |
Contract assets | 806,000 | 371,000 |
Prepaid expenses | 2,712,000 | 962,000 |
Other receivables | 6,609,000 | 3,264,000 |
Research tax credit receivable | 6,724,000 | 5,110,000 |
Short-term deposits | 26,500,000 | 10,900,000 |
Cash and cash equivalents | 3,783,000 | 7,574,000 |
Total current assets | 59,773,000 | 51,683,000 |
Total assets | 103,199,000 | 87,156,000 |
Equity: | ||
Issued capital euro 0.02 nominal value, 149,475,334 ordinary shares, issued and outstanding at June 30, 2021 (133,934,090 at December 31, 2020) | 3,642,000 | 3,269,000 |
Share premium | 298,434,000 | 276,560,000 |
Other capital reserves | 54,315,000 | 46,677,000 |
Accumulated deficit | (375,946,000) | (363,209,000) |
Other components of equity | (414,000) | (423,000) |
Total equity | (19,969,000) | (37,126,000) |
Non-current liabilities: | ||
Government grant advances and loans | 11,364,000 | 11,203,000 |
Venture debt | 0 | 2,172,000 |
Convertible debt | 32,912,000 | 26,074,000 |
Convertible debt embedded derivative | 16,611,000 | 12,395,000 |
Lease liabilities | 3,852,000 | 4,762,000 |
Trade payables | 890,000 | 851,000 |
Provisions | 2,241,000 | 1,874,000 |
Deferred tax liabilities | 20,000 | 19,000 |
Contract liabilities | 254,000 | 2,397,000 |
Total non-current liabilities | 68,144,000 | 61,747,000 |
Current liabilities: | ||
Trade payables | 16,205,000 | 15,701,000 |
Interest-bearing receivables financing | 10,755,000 | 14,228,000 |
Venture debt | 0 | 6,104,000 |
Lease liabilities | 1,213,000 | 1,014,000 |
Government grant advances and loans | 6,658,000 | 3,867,000 |
Contract liabilities | 9,266,000 | 13,145,000 |
Other current liabilities and provisions | 10,927,000 | 8,476,000 |
Total current liabilities | 55,024,000 | 62,535,000 |
Total equity and liabilities | $ 103,199,000 | $ 87,156,000 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Financial Position (Parenthetical) - € / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of financial position [abstract] | ||
Nominal value (euro per share) | € 0.02 | € 0.02 |
Shares issued (in shares) | 149,475,334 | 133,934,090 |
Shares outstanding (in shares) | 149,475,334 | 133,934,090 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Changes in Equity (Deficit) - USD ($) | 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, 2019 | 95,587,146,000 | ||||||
Beginning balance at Dec. 31, 2019 | $ (29,561,000) | $ 2,403,000 | $ 233,720,000 | $ 43,656,000 | $ (308,733,000) | $ (319,000) | $ (288,000) |
Loss for the period | (34,224,000) | (34,224,000) | |||||
Re-measurement gains (losses) on defined benefit plans | (24,000) | (24,000) | |||||
Foreign currency translation | (125,000) | (125,000) | |||||
Net gain (loss) on cash flow hedge | (58,000) | (58,000) | |||||
Total comprehensive income (loss) | (34,431,000) | (34,224,000) | (125,000) | (82,000) | |||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards (in shares) | 474,840,000 | ||||||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards | 32,000 | $ 10,000 | 22,000 | ||||
Issue of shares in connection with public offering and private placement (Note 11) (in shares) | 22,330,096,000 | ||||||
Issue of shares in connection with public offering and private placement (Note 11) | 28,750,000 | $ 487,000 | 28,263,000 | ||||
Issue of shares in connection with the ATM program (Note 11) (in shares) | 970,584,000 | ||||||
Issue of shares in connection with the ATM program (Note 11) | 1,613,000 | $ 21,000 | 1,592,000 | ||||
Conversion of loan (Note 11) (in shares) | 1,715,476,000 | ||||||
Conversion of loan (Note 11) | 2,246,000 | $ 37,000 | 2,209,000 | ||||
Transaction costs (Note 11) | (2,971,000) | (2,971,000) | |||||
Convertible note amendments (Note 15) | (5,266,000) | (5,266,000) | |||||
Deferred tax effect of debt instruments with equity components (Note 6) | 809,000 | 809,000 | |||||
Other movement | (41,000) | (41,000) | |||||
Share-based payments | 1,292,000 | 1,292,000 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 121,078,142,000 | ||||||
Ending balance at Jun. 30, 2020 | $ (37,528,000) | $ 2,958,000 | 262,835,000 | 40,450,000 | (342,957,000) | (444,000) | (370,000) |
Beginning balance (in shares) at Dec. 31, 2020 | 133,934,090 | 133,934,090,000 | |||||
Beginning balance at Dec. 31, 2020 | $ (37,126,000) | $ 3,269,000 | 276,560,000 | 46,677,000 | (363,209,000) | (219,000) | (204,000) |
Loss for the period | (12,737,000) | (12,737,000) | |||||
Re-measurement gains (losses) on defined benefit plans | (24,000) | (24,000) | |||||
Foreign currency translation | 125,000 | 125,000 | |||||
Net gain (loss) on cash flow hedge | (92,000) | (92,000) | |||||
Total comprehensive income (loss) | (12,728,000) | (12,737,000) | 125,000 | (116,000) | |||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards (in shares) | 1,041,212,000 | ||||||
Issue of shares in connection with the exercise of options and warrants, and vesting of restricted shares awards | 97,000 | $ 25,000 | 72,000 | ||||
Issue of shares in connection with public offering and private placement (Note 11) (in shares) | 7,272,724,000 | ||||||
Issue of shares in connection with public offering and private placement (Note 11) | 10,000,000 | $ 173,000 | 9,827,000 | ||||
Transaction costs (Note 11) | (136,000) | (136,000) | |||||
Share-based payments | 2,252,000 | 2,252,000 | |||||
Conversion of convertible debts (Note 15) (in shares) | 7,227,308,000 | ||||||
Conversion of convertible debts (Note 15) | $ 17,672,000 | $ 175,000 | 12,111,000 | 5,386,000 | |||
Ending balance (in shares) at Jun. 30, 2021 | 149,475,334 | 149,475,334,000 | |||||
Ending balance at Jun. 30, 2021 | $ (19,969,000) | $ 3,642,000 | $ 298,434,000 | $ 54,315,000 | $ (375,946,000) | $ (94,000) | $ (320,000) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Operating activities: | |||
Loss before income taxes | $ (12,440,000) | $ (33,747,000) | |
Non-cash adjustment to reconcile loss before tax to net cash used in operating activities: | |||
Amortization and impairment of property, plant and equipment | 1,963,000 | 1,934,000 | |
Amortization and impairment of intangible assets | 3,721,000 | 2,624,000 | |
Share-based payment expense | 2,252,000 | 1,292,000 | |
Increase (Decrease) in provisions | 253,000 | (40,000) | |
Interest expense, net | 6,122,000 | 7,274,000 | |
Change in fair value of convertible debt embedded derivative | 2,682,000 | 14,762,000 | |
Convertible debt amendment | 0 | (1,399,000) | |
Impact of debt reimbursement | (5,177,000) | 0 | |
Foreign exchange loss (gain) | (441,000) | 127,000 | |
Loss on disposal of property, plant and equipment | 7,000 | 0 | |
Bad debt expense | 0 | 18,000 | |
Working capital adjustments: | |||
Decrease (Increase) in trade receivables and other receivables | 7,432,000 | (3,709,000) | |
Decrease in inventories | 1,019,000 | 802,000 | |
Decrease (Increase) in research tax credit receivable | (635,000) | 1,680,000 | |
Increase in trade payables and other liabilities | 6,891,000 | 4,310,000 | |
Decrease in contract liabilities | (7,437,000) | (5,835,000) | |
Increase in government grant advances | [1] | 561,000 | 919,000 |
Income tax paid | (270,000) | (180,000) | |
Net cash flow used in operating activities | 6,503,000 | (9,168,000) | |
Investing activities: | |||
Purchase of intangible assets and property, plant and equipment | (6,242,000) | (2,845,000) | |
Capitalized development expenditures | (9,535,000) | (3,048,000) | |
Purchase of financial assets | (2,814,000) | (27,000) | |
Increase of short-term deposit | (15,600,000) | (17,900,000) | |
Interest received | 24,000 | 20,000 | |
Net cash flow used in investing activities | (34,167,000) | (23,800,000) | |
Financing activities: | |||
Proceeds from issue of warrants, exercise of stock options/warrants granted under share-based payment plans, net of transaction costs | 96,000 | 32,000 | |
Public equity offering proceeds, net of transaction costs paid | 9,894,000 | 27,453,000 | |
Proceeds from (repayment of) interest-bearing receivables financing | (3,341,000) | 5,572,000 | |
Proceeds from governments loans, net of transaction costs | 0 | 5,392,000 | |
Proceeds from interest-bearing research project financing | 0 | 405,000 | |
Proceeds from convertible debt, net of transaction costs | 39,647,000 | 2,050,000 | |
Repayment of convertible debt | (8,750,000) | 0 | |
Payment of lease liabilities | (550,000) | (786,000) | |
Repayment of interest-bearing research project financing | (363,000) | 0 | |
Repayment of government loans | (240,000) | 0 | |
Repayment of venture debt | (8,042,000) | (2,449,000) | |
Interest paid | (4,480,000) | (1,215,000) | |
Net cash flows from financing activities | 23,871,000 | 36,454,000 | |
Net increase (decrease) in cash and cash equivalents | (3,793,000) | 3,486,000 | |
Net foreign exchange difference | 2,000 | (3,000) | |
Cash and cash equivalents at January 1 | 7,574,000 | 14,098,000 | |
Cash and cash equivalents at period end | $ 3,783,000 | $ 17,581,000 | |
[1] | Including $1.4 million related to the forgiveness of a debt in April 2021 (see Note 13). |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 1 Months Ended |
Apr. 30, 2021USD ($) | |
Long-Term Research Project - January 2016 | Research Project Financing - Forgivable Loan | |
Statement [Line Items] | |
Increase in government grant advances | $ 1,400 |
Corporate information
Corporate information | 6 Months Ended |
Jun. 30, 2021 | |
Corporate Information [Abstract] | |
Corporate information | Corporate information Sequans Communications S.A. (“Sequans”) is organized as a limited liability company (“ société anonyme ”) incorporated and domiciled in the French Republic, 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 semiconductor chips and modules for IoT devices. The Company’s solutions incorporate baseband processor and radio frequency transceiver integrated circuits along with proprietary signal processing techniques, algorithms and software stacks. |
Basis of preparation and change
Basis of preparation and changes to the Company’s accounting policies | 6 Months Ended |
Jun. 30, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation and changes to the Company’s accounting policies | Basis of preparation and changes to the Company’s accounting policies 2.1. Basis of preparation The Condensed Consolidated Financial Statements for the six months ended June 30, 2021 are prepared in accordance with IAS 34 Interim Financial Reporting and were authorized for issue in accordance with a resolution of the board of directors on July 27, 2021. The Condensed Consolidated Financial Statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at December 31, 2020. These Condensed Consolidated Financial Statements for the six months ended June 30, 2021 have been prepared on a going concern assumption. During 2020 and the six months ended June 30, 2021, we financed our operations primarily through gross proceeds from the issuance of shares through public and private offerings ($29.3 million in 2020 and $9.9 million in 2021), government loans ($7.6 million in 2020 of which $2.2 million was converted into equity in May 2020) and convertible notes ($39.6 million in 2021). 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 additional financing, including through a combination of government research and development funding, strategic licensing and/or service agreements, or additional equity or debt offerings, 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 slightly increasing operating cost structure, ongoing and new government funding of research programs and new strategic funding activities. 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, 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 as well as industry-wide component shortages may continue to have a negative impact on the production of the Company's products, the Company's ability to source components needed for production or on the demand for the Company's products by customers whose supply chain or end demand are negatively affected by COVID-19 and/or the component shortage, and as a result could affect the Company’s financial condition. The effects of COVID-19 also could 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. 2.2. Changes in accounting policy and disclosures New and amended standards and interpretations The accounting policies adopted in preparation of the Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2020 except for the following new and amended International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations effective as of January 1, 2021: • Interest Rate Benchmark Reform – Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. With publication of the phase two amendments, the IASB has completed its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments are effective for annual reporting periods beginning on or after January 1, 2021.The amendments had no material impact on the Company's financial statements. • IFRS IC decision on IAS 19: Employee benefits: IFRS IC was referred to the methods for calculating commitments for defined benefit plans for which the granting of rights is conditioned by the presence in the Company at the time of retirement (with loss of all rights in the event of early departure) and whose rights depend on seniority, while being capped at a certain number of years of seniority. For plans reviewed by IFRS IC, the limit may apply at a date prior to retirement. The decision of the IFRS IC concluding, in this case, that no rights are acquired in the event of departure before retirement age and that the rights are capped after a certain number of years of service ("X"), the engagement would only be recorded over the last X years of the employee's career in the company. The Company is currently assessing the impact of the decision. Standards issued but not yet effective Standards and interpretations issued but not yet effective up to the date of issue of the Company’s Condensed Consolidated Financial Statements are listed below. The Company intends to adopt these standards when they become effective: • Amendments to IAS 1: Classification of Liabilities as Current or Non-current: In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Company is currently assessing the impact of the amendments. • Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use. In May 2020, the IASB issued Property, Plant and Equipment — Proceeds before Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Company. • Reference to the Conceptual Framework – Amendments to IFRS 3: In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations. The amendments are intended to update a reference to the Conceptual Framework without significantly changing the requirements of IFRS 3. The amendments will promote consistency in financial reporting and avoid potential confusion from having more than one version of the Conceptual Framework in use. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The amendments are not expected to have a material impact on the Company. COVID-19 Management has considered what effect the COVID-19 pandemic has on the amounts recognized in the financial statements. Management has identified potential risks related to the impact on the production of the Company's products, on the Company's ability to source components required for production and on the demand for the Company's products by customers impacted by the pandemic. In the six months ended June 30, 2020, the primary impacts on operations of the COVID-19 pandemic were to increase demand in the broadband IoT business and in the six months ended June 30, 2020 and 2021, were to increase certain costs related to a temporary shortage of components and to delay growth in product revenues due to the limits placed on production capacity driven by the component shortages. As of June 30, 2021, the Company has not identified any impact on its assets and liabilities. 2.3. Other information No impairment tests on property, plant and equipment or on intangible assets were performed as of June 30, 2021 as no events or changes in circumstances indicated that the carrying amount of those assets was not recoverable. There is no major seasonality in Sequans’ revenue, although the first quarter tends to be seasonally the weakest for product revenue. |
Segment information and disaggr
Segment information and disaggregated revenue disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Operating segments [Abstract] | |
Segment information and disaggregated revenue disclosures | 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 Condensed 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. Six months ended June 30, 2020 2021 (In thousands) Asia: Taiwan $ 5,566 $ 8,691 Korea 7,475 1,089 Rest of Asia 294 667 Total Asia 13,335 10,447 United States of America 6,917 11,850 Rest of world 751 2,881 Total revenue $ 21,003 $ 25,178 Of our total revenue, 99.1% is attributable to international sales for the six months ended June 30, 2021 (99.5% in 2020). The Company categorizes its total revenue based on type of end user application. Six months ended June 30, 2020 2021 (In thousands) Broadband and Critical IoT $ 8,390 $ 4,089 Massive IoT 6,642 14,069 Vertical 5,971 7,020 Total revenue $ 21,003 $ 25,178 Additionally, the Company categorizes its total revenue as product and other revenue, which includes license and service revenue. Six months ended June 30, 2020 2021 (In thousands) Product $ 14,275 $ 15,941 License — 300 Development and other services 6,728 8,937 Total revenue $ 21,003 $ 25,178 The substantial majority of the Company’s non-current assets are held by the parent company, Sequans Communications S.A and located in France. For the six-month periods ended June 30, 2020 and 2021, customers representing more than 10% of revenue, and related accounts receivables at the end of the period, were: Customer Customer Location % of total revenues for the six months ended June 30, Trade receivables at 2020 2021 June 30, 2021 A Taiwan 24 % 31% $3,836,951 B United States of America 26 % 22% $1,800,000 C South Korea 35 % Less than 10% $648,248 When the Company performs under contracts 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. As of June 30, 2021, the transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) was $5,439,000 for which $4,919,000 is expected to be recognized in the next 12 months and $520,000 in the years after, excluding the amounts related to the development service contract entered into in October 2019, described under Note 19. |
Research tax credit receivable
Research tax credit receivable and product development costs capitalized | 6 Months Ended |
Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |
Research tax credit receivable and product development costs capitalized | Research tax credit receivable and product development costs capitalized 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). Total research tax credit receivable available in France as of June 30, 2021 is $7,880,000, relating to tax credits receivable for 2020 and to date in 2021. Part of the amount was financed in 2020 and 2021 and the remaining amount is expected to be recovered in 2021, 2026 and 2027 in cash (see Note 16). The Company also has research tax credits available in the United Kingdom. In the six months ended June 30, 2021 and 2020, the Company capitalized costs, in compliance with the applicable criteria under IAS 38, Intangible Assets , related to the development of the chipsets for NB-IoT (Monarch 2), LTE Category 1 (the Calliope 2) and 5G, and related to certification. Total amount of capitalized cost in each period was $8,804,000 and $2,599,000, respectively. |
Interest expenses
Interest expenses | 6 Months Ended |
Jun. 30, 2020 | |
Analysis of income and expense [abstract] | |
Interest expenses | Interest expenses The table below presents the major components of interest expenses: Six months June 30, 2020 2021 (In thousands) Interest on loans $ 4,839 $ 4,107 Interest on lease contract 327 383 Interest on financing component of long-term development services agreements 1,809 1,415 Interest on supplier payable with extended payment terms 53 81 Other bank fees and financial charges 200 160 Total interest expenses $ 7,228 $ 6,146 For the six months ended June 30, 2021, interest on loans included $4,107,000 related to convertible debt issued in 2021, 2019, 2018 and 2015, venture debt issued in 2018, the French government debt financing received in 2020 and government loans granted in 2015 and in 2020 ($4,750,000 for the six months ended June 30, 2020). |
Income tax
Income tax | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income tax | Income tax The major components of income tax expense are: Six months ended June 30, 2020 2021 (in thousands) Condensed Consolidated Statement of Operations Current income tax expense $ 79 $ 297 Deferred income tax expense (benefit) 398 — Income tax expense (benefit) reported in the Condensed Consolidated Statement of Operations $ 477 $ 297 During the six months ended June 30, 2020, the Company recognized (through equity) a reversal of deferred tax liabilities of $809,000 on the equity component of the convertible debt amended during the period partially offset by a deferred tax expense of $398,000 related to the impact of the extinguishment of the debt following the amendment (See Note 15). |
Intangible assets
Intangible assets | 6 Months Ended |
Jun. 30, 2021 | |
Intangible Assets [Abstract] | |
Intangible assets | Intangible assets Intangible assets include: Capitalized development costs Licenses Total (in thousands) Cost: At December 31, 2020 $ 16,798 $ 29,391 $ 46,189 Additions 8,804 1,074 9,878 Exchange difference — 96 96 At June 30, 2021 $ 25,602 $ 30,561 $ 56,163 Amortization and impairment: At December 31, 2020 3,250 17,627 20,877 Amortization 1,187 2,534 3,721 Exchange difference — 30 30 At June 30, 2021 $ 4,437 $ 20,191 $ 24,628 Net book value: At January 1, 2021 $ 13,548 $ 11,764 $ 25,312 At June 30, 2021 $ 21,165 $ 10,370 $ 31,535 In the six months ended June 30, 2021, the Company capitalized costs related to the development of the chipsets for NB-IoT (Monarch 2), LTE Category 1 (the Calliope 2) and 5G, and related to certification of products. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventories [Abstract] | |
Inventories | Inventories At December 31, 2020 At June 30, 2021 (in thousands) Components $ 2,138 $ 2,223 Finished goods 4,996 3,911 Total inventories at cost $ 7,134 $ 6,134 Depreciation of components $ 2 $ 2 Depreciation of finished goods 907 926 Total depreciation $ 909 $ 928 Components, net $ 2,136 $ 2,221 Finished goods, at the lower of cost and net realizable value 4,089 2,985 Total net inventories $ 6,225 $ 5,206 At December 31, 2020, the amount of $907,000 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. During the six months ended June 30, 2021, there was no significant change in the provision on components and finished goods. |
Trade receivables and contract
Trade receivables and contract assets | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade receivables and contract assets | Trade receivables and contract assets Trade receivables are non-interest bearing and are generally on 30-90 day payment terms. At December 31, 2020 At June 30, 2021 (in thousands) Trade receivables $ 20,537 $ 11,020 Contract assets 371 806 Provision for credit notes to be issued (536) (863) Provisions on trade receivables (2,724) (2,724) Net trade receivables $ 17,648 $ 8,239 Contract assets are related to the earned consideration in exchange for services transferred to the customer before the customer pays consideration or before payment is due. In the year ended December 31, 2020 and in the six months ended June 30, 2021, the Company recorded credit notes related to special customers programs such as rebates. The movements in the provision for impairment of receivables were as follows: Year ended December 31, Six months ended June 30, 20201 (in thousands) At January 1, $ 2,719 $ 2,724 Charge for the period 47 — Utilized amounts — — Unutilized amounts (42) — At period end $ 2,724 $ 2,724 Trade receivables impaired are related primarily to significantly aged receivables, which the Company no longer expects to collect although still subject to enforcement. 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, 2020 $ 17,648 $ 14,232 $ 2,879 $ 53 $ — $ 484 At June 30, 2021 $ 8,239 $ 6,874 $ 327 $ 26 $ 1,012 $ — The Company does not assign credit risk rating grades to its trade receivables, but assesses credit risk at the customer level. 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. |
Cash and cash equivalents; shor
Cash and cash equivalents; short-term deposits | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Cash and cash equivalents; short-term deposits | Cash and cash equivalents; short-term deposits At December 31, 2020 At June 30, 2021 (in thousands) Cash at banks $ 7,567 $ 3,776 Cash equivalents 7 7 Short-term deposits 10,900 26,500 Cash, cash equivalents and deposits $ 18,474 $ 30,283 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, 2020 At June 30, 2021 (in thousands) U.S. dollar denominated accounts $ 18,135 $ 28,752 Euro denominated accounts 154 1,300 GBP denominated accounts 76 13 SGP denominated accounts 44 14 NIS denominated accounts 14 139 RMB denominated accounts 29 51 Other currencies denominated accounts 22 14 Cash, cash equivalents and deposits $ 18,474 $ 30,283 |
Issued capital and reserves
Issued capital and reserves | 6 Months Ended |
Jun. 30, 2021 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Issued capital and reserves | Issued capital and reserves 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, 2020, authorized capital was 147,036,688 ordinary shares with a nominal value of €0.02 each. At June 30, 2021, following approval of resolutions for capital increases approved by the shareholders in June 2021, authorized capital was 312,150,039 ordinary shares with a nominal value of €0.02 each. The ratio of ordinary shares to ADS is four ordinary shares per ADS. Shares issued and fully paid At December 31, 2020, 133,934,090 ordinary shares were issued and outstanding, representing a nominal value of €2,678,000 ($3,269,000). At June 30, 2021, 149,475,334 ordinary shares were issued and outstanding, representing a nominal value of €2,990,000 ($3,642,000). Capital transactions On April 9, 2021, the Company increased its capital in connection with a private placement with Lynrock Lake Master Fund LP by issuing 7,272,724 ordinary shares at $1.375 per ordinary share (or $5.50 per ADS). The total offering amounted to $9,999,996. Accordingly, issued capital in the Condensed Consolidated Statement of Financial Position was increased by $172,698 recorded in share capital and by $9,827,297 in share premium. Costs directly attributable to the equity transaction amounting to approximately $0.1 million were deducted from the share premium. On January 13, 2021, January 17, 2021 and February 12, 2021, Nokomis Capital, L.L.C, converted portions of the convertible note issued in 2015 totaling a principal value of $7,750,000, plus accrued interest and conversion bonus of $4,536,438, into a total of 7,227,308 ordinary shares. $175,239 was recorded in share capital in the Condensed Consolidated Statement of Financial Position and $12,111,185 in share premium. On May 14, 2020, the Company increased its capital in connection with a public offering by issuing 22,330,096 ordinary shares (including 2,912,620 shares from the underwriters' over-allotment option) at $1.2875 per ordinary share (or $5.15 per ADS). The total offering amounted to $28,749,999. Accordingly, issued capital in the Condensed Consolidated Statement of Financial Position was increased by $486,761 recorded in share capital and by $28,263,238 in share premium. Costs directly attributable to the equity transaction amounting to approximately $2.3 million were deducted from the share premium. On April 2, 2020, the Company entered into a Shareholder Loan Agreement with Bpifrance Participations, providing for an unsecured shareholder loan in an aggregate principal amount of $2.2 million. The loan accrued interest at 4.0% per annum. On May 15, 2020, the Company completed a private placement of 428,869 ADSs (1,715,476 ordinary shares) to Bpifrance Participations at a price of $5.15 per ADS, which equaled the offering price to the public of ADSs sold in the underwritten public offering that closed on May 14, 2020. As a result of the issuance of ADSs to BPI in the private placement, the loan from BPI pursuant to the Shareholder Loan Agreement between the Company and BPI was discharged and issued capital in the Condensed Consolidated Statement of Financial Position was increased by $37,253 recorded in share capital and by $2,209,589 (before costs of $0.2 million) recorded in share premium. On March 31, 2020, the Company entered into an At The Market ("ATM") Issuance Sales Agreement (the “Sales Agreement”) with B. Riley FBR, Inc., as agent, pursuant to which the Company could offer and sell, from time to time, through B. Riley FBR, ADSs having an aggregate offering price of up to $35,000,000. In April 2020, the Company sold 242,646 ADS (970,584 ordinary shares) under this agreement, representing $1,613,116 of gross proceeds ($1.1 million of net proceeds taking into account all fees for putting in place the ATM program as well as the agent fees related to the ADSs sold). Accordingly, issued capital in the Condensed Consolidated Statement of Financial Position was increased by $21,114 recorded in share capital and by $1,592,002 (before costs of $0.5 million)recorded in share premium. On June 1, 2020, the Company terminated the ATM agreement, effective June 5, 2020. |
Share-based payment plans
Share-based payment plans | 6 Months Ended |
Jun. 30, 2021 | |
Share-Based Payment Arrangements [Abstract] | |
Share-based payment plans | Share-based payment plans The expense recognized for employee and other services received during the six months ended June 30, 2021 arising from equity-settled share-based payment transactions was $2,252,000 (six months ended June 30, 2020: $1,292,000). The breakdown is as follows: Six months ended June 30, 2020 2021 (in thousands) Cost of revenue $ 9 $ 30 Research and development $ 538 $ 1,067 Sales and marketing $ 235 $ 423 General and administrative $ 510 $ 732 Total $ 1,292 $ 2,252 During the six months ended June 30, 2021, the board of directors granted 329,280 restricted share awards (RSA). RSA vest over four years, with either 25% vesting after the one-year anniversary of the grant or 50% vesting after the two-year anniversary, and the remaining portion of the grant vesting quarterly over the remaining years. The board of directors granted 96,000 warrants to consultants during this period. In June 2021, following approval at the annual meeting of shareholders, 980,000 warrants were issued to members of the board of directors at an exercise price of $1.49 per ordinary share ($5.96 per ADS). The warrants vest after one year. During the six months ended June 30, 2021, 375,731 stock options, restricted shares and warrants were canceled. During this period, 59,908 stock options were exercised resulting in the issuance of 59,908 ordinary shares and an increase of nominal capital of 1,450 and an increase of share premium of $94,612. During the six months ended June 30, 2021, 981,304 restricted shares vested and were issued as ordinary shares. |
Government grant advances and l
Government grant advances and loans | 6 Months Ended |
Jun. 30, 2021 | |
Government Grant Advances And Loans [Abstract] | |
Government grant advances and loans | Government grant advances and loans On April 30, 2020, the Company finalized €5 million of French government debt financing that was received in May 2020 as part of the French COVID-19 economic support plan. The French loan is unsecured and can, at Sequans’ option, be repaid in full in one year plus 1.75% interest or, with one In January 2016, Bpifrance provided funding to the Company for a new long-term research project, completed in early 2020. The total of the funding amounted to €2,095,000 ($2,288,000 using the exchange rate of the grant dates) 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 using the exchange rate of the funding date). 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 ($3.7 million using the exchange rate as of December 31, 2020), then the Company shall pay for four 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 $736,000, over a period of 10 years). In late 2020, the Company determined that there was not enough market interest for the radio frequency of the product development funded by this grant, and abandoned the project. A request for forgiveness of the debt was made and in April 2021 Bpifrance forgave a large portion of the advance, effectively transforming the advance to a grant and resulting in a one-time benefit of €1,214,000 ($1,442,111 using the exchange rate of the period), recorded as a reduction of Research and Development expenses. The unforgiven portion of €213,000 will be reimbursed in the second half of 2022. |
Venture debt
Venture debt | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financial Instruments [Abstract] | ||
Venture debt | 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 Company could redeem or repurchase the notes before the maturity date, subject to making certain contractual payments. The contract also required the Company to pay an additional fee equal to 2.5% of the principal at the end of the term. The Bond was secured by various assets of the Company, including intellectual property, and was 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 using the exchange rate as of October 26, 2018), which was recorded in Other Capital Reserves in shareholders’ equity, and (ii) the liability component for €10.9 million ($12.8 million using the exchange rate as of October 26, 2018). 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 ($550,000 using the exchange rate as of December 31, 2020) and which were to continue until April 26, 2022. On April 15, 2021, following the issuance of new convertible debt and a private placement (see Notes 11 and 15), the Company used a portion of these proceeds to prepay in full all amounts due to Harbert. Interest expense related to the venture debt recorded during the six months ended June 30, 2021 amounted to $701,000 and was paid during the period. Repayments of principal during the six months ended June 30, 2021 amounted to € 6,588,007 ($7,869,000 using the actual exchange rates during the period). The prepayment in full was considered a debt renegotiation. The positive impact of $532,000 was recognized as financial income in the Condensed Consolidated Statement of Operations. 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. In July 2017, the Company signed an amendment to the initial agreement to include financing of accounts receivable from service revenue up to $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 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 June 30, 2021, $5,052,000 had been drawn on the line of credit and recorded as a current borrowing (December 31, 2020: $10,421,000). In May 2020, the Company entered into an agreement to finance the 2020 research tax credit as it is earned over the year. At June 30, 2021, the amount financed was $4,016,000, recorded as current liabilities and does not include retention of $677,000, which are expected to be received in the second half of 2021 ($558,000) and in 2026 ($119,000). The effective interest rate of 6.45% includes expenses related to the financing. In February 2021, the Company entered into a new agreement to finance the 2021 research tax credit as it is earned over the year. At June 30, 2021, the amount financed was $1,687,000, recorded as current liabilities and does not include retention of | Convertible debt Changes over the six month-period ended June 30, 2020 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. 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. 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) would stay at 7% but the holder would 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 would be adjusted to 9.5%, the previous warrants granted on the first option exercise would be extended by one year and the holder would 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 would be adjusted to 13.5%, and the holder would 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 would 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. From an accounting perspective, the amendment of the convertible notes resulted in the extinguishment of the existing notes and issuance of five new notes, accounted for as compound financial instruments with two components: • A liability component reflecting the Company’s contractual obligation to pay interest and redeem the notes in cash; and • An embedded derivative, which reflects the Company's call options to extend the term of each note, the conversion option of Nokomis and in certain cases a repricing to decrease the conversion price. The change in the liability component before and after the amendment was recorded as financial gain for an amount of $1,399,000. The fair value of the liability component on the amendment 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 26.3% as the market rate of interest in order to value the liability components. The embedded derivatives of the notes were valued using the Geometric Brownian Motion framework relying on Monte-Carlo simulations. On March 20, 2020, the initial fair value of the embedded derivative of the notes was calculated to be $5,266,000 and recorded in Other Capital reserves in shareholders' equity. The change in fair value is remeasured and recorded as financial income or loss at each statement of financial position date. At June 30, 2020, the recalculated fair value was $20,028,000 and the change of the fair value of $14,762,000 for the six-months ended June 30, 2020 was recorded in the Condensed Consolidated Statement of Operations. Interest accrued on the notes at the rate of 7% per year, paid in kind annually on the anniversaries of the issuance of the notes. Interest expense related to convertible notes recorded during the six months ended June 30, 2020 amounted to $3,797,000. No repayments of principal nor payment of interest occurred during that period. Changes over the six month-period ended June 30, 2021 On January 13, 2021, January 17, 2021 and February 12, 2021, Nokomis Capital, L.L.C, converted portions of the convertible note issued in 2015 with a total principal value of $7,750,000 plus accrued interest and conversion bonus of $4,536,438, into a total of 7,227,308 ordinary shares. The recalculated fair value of the embedded derivatives related to the note at the conversion dates was $6,534,000 and the change of the fair value amounted to a loss of $3,269,000. The difference between the capital increase, the liability component and the fair value of the embedded option has been recorded in Other Capital Reserves in shareholders’ equity for an amount of $5,386,000. On April 9, 2021, the Company entered into a convertible note agreement with Lynrock Lake Master Fund LP in the principal amount of $40.0 million. The convertible note matures in April 2024 and is convertible, at the holder’s option, into the company’s shares at a conversion rate of $1.915 per share (representing $7.66 per ADS), subject to a 9.9% ownership limit for Lynrock Lake.The convertible debt pays interest annually at an interest rate of 5.0625% for cash payments or 6% for payment in kind accruals. Sequans retains an option to call the convertible debt under certain circumstances after 12 months, either in full or in part. If a change of control occurs at any time prior to the payment of the note in full, Lynrock Lake Master Fund LP shall have the right, in its sole discretion, to require Sequans convert or redeem all of the outstanding principal amount (including accrued interest and unpaid interest). The note was 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 reflects the value of the conversion option. The initial fair value of the 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 20.89% as the market rate of interest in order to value the liability components of the note on issuance. The embedded derivative of the note was valued using the Geometric Brownian Motion framework relying on Monte-Carlo simulations.On April 9, 2021, the initial fair value of the embedded derivative of the notes was calculated to be $12,713,000 The change in fair value is remeasured and recorded as financial income or loss at each statement of financial position date. On April 14, 2021, the Company repaid the remaining amount of the existing convertible debts that were due on April 14 (convertible notes issued in April 2015 and in September 2018) with accrued paid-in-kind interest of 7%. $6,378,104 was repaid for the April 2015 convertible note ($4,250,000 in principal and $2,128,000 as accrued interest) and $5,346,699 ($4,500,000 in principal and $847,000 as accrued interest) for the September 2018 convertible note. The recalculated fair value of the embedded derivatives at the repayment date was $4,645,000 and was recorded as financial income in the Condensed Consolidated Statement of Operations and the change of the fair value amounted to a loss of $934,000. At June 30, 2021, the recalculated fair value of the remaining convertible debt embedded derivative was $16,611,000 and the change of the fair value of $1,521,000 for the six-months ended June 30, 2021 was recorded in the Condensed Consolidated Statement of Operations. Interest expense related to convertible notes recorded during the six months ended June 30, 2021 amounted to $2,768,000. A total of $2,975,000 of interest was repaid during that period. |
Convertible debt
Convertible debt | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financial Instruments [Abstract] | ||
Convertible debt | 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 Company could redeem or repurchase the notes before the maturity date, subject to making certain contractual payments. The contract also required the Company to pay an additional fee equal to 2.5% of the principal at the end of the term. The Bond was secured by various assets of the Company, including intellectual property, and was 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 using the exchange rate as of October 26, 2018), which was recorded in Other Capital Reserves in shareholders’ equity, and (ii) the liability component for €10.9 million ($12.8 million using the exchange rate as of October 26, 2018). 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 ($550,000 using the exchange rate as of December 31, 2020) and which were to continue until April 26, 2022. On April 15, 2021, following the issuance of new convertible debt and a private placement (see Notes 11 and 15), the Company used a portion of these proceeds to prepay in full all amounts due to Harbert. Interest expense related to the venture debt recorded during the six months ended June 30, 2021 amounted to $701,000 and was paid during the period. Repayments of principal during the six months ended June 30, 2021 amounted to € 6,588,007 ($7,869,000 using the actual exchange rates during the period). The prepayment in full was considered a debt renegotiation. The positive impact of $532,000 was recognized as financial income in the Condensed Consolidated Statement of Operations. 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. In July 2017, the Company signed an amendment to the initial agreement to include financing of accounts receivable from service revenue up to $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 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 June 30, 2021, $5,052,000 had been drawn on the line of credit and recorded as a current borrowing (December 31, 2020: $10,421,000). In May 2020, the Company entered into an agreement to finance the 2020 research tax credit as it is earned over the year. At June 30, 2021, the amount financed was $4,016,000, recorded as current liabilities and does not include retention of $677,000, which are expected to be received in the second half of 2021 ($558,000) and in 2026 ($119,000). The effective interest rate of 6.45% includes expenses related to the financing. In February 2021, the Company entered into a new agreement to finance the 2021 research tax credit as it is earned over the year. At June 30, 2021, the amount financed was $1,687,000, recorded as current liabilities and does not include retention of | Convertible debt Changes over the six month-period ended June 30, 2020 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. 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. 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) would stay at 7% but the holder would 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 would be adjusted to 9.5%, the previous warrants granted on the first option exercise would be extended by one year and the holder would 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 would be adjusted to 13.5%, and the holder would 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 would 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. From an accounting perspective, the amendment of the convertible notes resulted in the extinguishment of the existing notes and issuance of five new notes, accounted for as compound financial instruments with two components: • A liability component reflecting the Company’s contractual obligation to pay interest and redeem the notes in cash; and • An embedded derivative, which reflects the Company's call options to extend the term of each note, the conversion option of Nokomis and in certain cases a repricing to decrease the conversion price. The change in the liability component before and after the amendment was recorded as financial gain for an amount of $1,399,000. The fair value of the liability component on the amendment 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 26.3% as the market rate of interest in order to value the liability components. The embedded derivatives of the notes were valued using the Geometric Brownian Motion framework relying on Monte-Carlo simulations. On March 20, 2020, the initial fair value of the embedded derivative of the notes was calculated to be $5,266,000 and recorded in Other Capital reserves in shareholders' equity. The change in fair value is remeasured and recorded as financial income or loss at each statement of financial position date. At June 30, 2020, the recalculated fair value was $20,028,000 and the change of the fair value of $14,762,000 for the six-months ended June 30, 2020 was recorded in the Condensed Consolidated Statement of Operations. Interest accrued on the notes at the rate of 7% per year, paid in kind annually on the anniversaries of the issuance of the notes. Interest expense related to convertible notes recorded during the six months ended June 30, 2020 amounted to $3,797,000. No repayments of principal nor payment of interest occurred during that period. Changes over the six month-period ended June 30, 2021 On January 13, 2021, January 17, 2021 and February 12, 2021, Nokomis Capital, L.L.C, converted portions of the convertible note issued in 2015 with a total principal value of $7,750,000 plus accrued interest and conversion bonus of $4,536,438, into a total of 7,227,308 ordinary shares. The recalculated fair value of the embedded derivatives related to the note at the conversion dates was $6,534,000 and the change of the fair value amounted to a loss of $3,269,000. The difference between the capital increase, the liability component and the fair value of the embedded option has been recorded in Other Capital Reserves in shareholders’ equity for an amount of $5,386,000. On April 9, 2021, the Company entered into a convertible note agreement with Lynrock Lake Master Fund LP in the principal amount of $40.0 million. The convertible note matures in April 2024 and is convertible, at the holder’s option, into the company’s shares at a conversion rate of $1.915 per share (representing $7.66 per ADS), subject to a 9.9% ownership limit for Lynrock Lake.The convertible debt pays interest annually at an interest rate of 5.0625% for cash payments or 6% for payment in kind accruals. Sequans retains an option to call the convertible debt under certain circumstances after 12 months, either in full or in part. If a change of control occurs at any time prior to the payment of the note in full, Lynrock Lake Master Fund LP shall have the right, in its sole discretion, to require Sequans convert or redeem all of the outstanding principal amount (including accrued interest and unpaid interest). The note was 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 reflects the value of the conversion option. The initial fair value of the 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 20.89% as the market rate of interest in order to value the liability components of the note on issuance. The embedded derivative of the note was valued using the Geometric Brownian Motion framework relying on Monte-Carlo simulations.On April 9, 2021, the initial fair value of the embedded derivative of the notes was calculated to be $12,713,000 The change in fair value is remeasured and recorded as financial income or loss at each statement of financial position date. On April 14, 2021, the Company repaid the remaining amount of the existing convertible debts that were due on April 14 (convertible notes issued in April 2015 and in September 2018) with accrued paid-in-kind interest of 7%. $6,378,104 was repaid for the April 2015 convertible note ($4,250,000 in principal and $2,128,000 as accrued interest) and $5,346,699 ($4,500,000 in principal and $847,000 as accrued interest) for the September 2018 convertible note. The recalculated fair value of the embedded derivatives at the repayment date was $4,645,000 and was recorded as financial income in the Condensed Consolidated Statement of Operations and the change of the fair value amounted to a loss of $934,000. At June 30, 2021, the recalculated fair value of the remaining convertible debt embedded derivative was $16,611,000 and the change of the fair value of $1,521,000 for the six-months ended June 30, 2021 was recorded in the Condensed Consolidated Statement of Operations. Interest expense related to convertible notes recorded during the six months ended June 30, 2021 amounted to $2,768,000. A total of $2,975,000 of interest was repaid during that period. |
Accounts receivable financing a
Accounts receivable financing agreement | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Financial Instruments [Abstract] | ||
Accounts receivable financing agreement | 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 Company could redeem or repurchase the notes before the maturity date, subject to making certain contractual payments. The contract also required the Company to pay an additional fee equal to 2.5% of the principal at the end of the term. The Bond was secured by various assets of the Company, including intellectual property, and was 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 using the exchange rate as of October 26, 2018), which was recorded in Other Capital Reserves in shareholders’ equity, and (ii) the liability component for €10.9 million ($12.8 million using the exchange rate as of October 26, 2018). 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 ($550,000 using the exchange rate as of December 31, 2020) and which were to continue until April 26, 2022. On April 15, 2021, following the issuance of new convertible debt and a private placement (see Notes 11 and 15), the Company used a portion of these proceeds to prepay in full all amounts due to Harbert. Interest expense related to the venture debt recorded during the six months ended June 30, 2021 amounted to $701,000 and was paid during the period. Repayments of principal during the six months ended June 30, 2021 amounted to € 6,588,007 ($7,869,000 using the actual exchange rates during the period). The prepayment in full was considered a debt renegotiation. The positive impact of $532,000 was recognized as financial income in the Condensed Consolidated Statement of Operations. 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. In July 2017, the Company signed an amendment to the initial agreement to include financing of accounts receivable from service revenue up to $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 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 June 30, 2021, $5,052,000 had been drawn on the line of credit and recorded as a current borrowing (December 31, 2020: $10,421,000). In May 2020, the Company entered into an agreement to finance the 2020 research tax credit as it is earned over the year. At June 30, 2021, the amount financed was $4,016,000, recorded as current liabilities and does not include retention of $677,000, which are expected to be received in the second half of 2021 ($558,000) and in 2026 ($119,000). The effective interest rate of 6.45% includes expenses related to the financing. In February 2021, the Company entered into a new agreement to finance the 2021 research tax credit as it is earned over the year. At June 30, 2021, the amount financed was $1,687,000, recorded as current liabilities and does not include retention of | Convertible debt Changes over the six month-period ended June 30, 2020 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. 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. 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) would stay at 7% but the holder would 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 would be adjusted to 9.5%, the previous warrants granted on the first option exercise would be extended by one year and the holder would 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 would be adjusted to 13.5%, and the holder would 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 would 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. From an accounting perspective, the amendment of the convertible notes resulted in the extinguishment of the existing notes and issuance of five new notes, accounted for as compound financial instruments with two components: • A liability component reflecting the Company’s contractual obligation to pay interest and redeem the notes in cash; and • An embedded derivative, which reflects the Company's call options to extend the term of each note, the conversion option of Nokomis and in certain cases a repricing to decrease the conversion price. The change in the liability component before and after the amendment was recorded as financial gain for an amount of $1,399,000. The fair value of the liability component on the amendment 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 26.3% as the market rate of interest in order to value the liability components. The embedded derivatives of the notes were valued using the Geometric Brownian Motion framework relying on Monte-Carlo simulations. On March 20, 2020, the initial fair value of the embedded derivative of the notes was calculated to be $5,266,000 and recorded in Other Capital reserves in shareholders' equity. The change in fair value is remeasured and recorded as financial income or loss at each statement of financial position date. At June 30, 2020, the recalculated fair value was $20,028,000 and the change of the fair value of $14,762,000 for the six-months ended June 30, 2020 was recorded in the Condensed Consolidated Statement of Operations. Interest accrued on the notes at the rate of 7% per year, paid in kind annually on the anniversaries of the issuance of the notes. Interest expense related to convertible notes recorded during the six months ended June 30, 2020 amounted to $3,797,000. No repayments of principal nor payment of interest occurred during that period. Changes over the six month-period ended June 30, 2021 On January 13, 2021, January 17, 2021 and February 12, 2021, Nokomis Capital, L.L.C, converted portions of the convertible note issued in 2015 with a total principal value of $7,750,000 plus accrued interest and conversion bonus of $4,536,438, into a total of 7,227,308 ordinary shares. The recalculated fair value of the embedded derivatives related to the note at the conversion dates was $6,534,000 and the change of the fair value amounted to a loss of $3,269,000. The difference between the capital increase, the liability component and the fair value of the embedded option has been recorded in Other Capital Reserves in shareholders’ equity for an amount of $5,386,000. On April 9, 2021, the Company entered into a convertible note agreement with Lynrock Lake Master Fund LP in the principal amount of $40.0 million. The convertible note matures in April 2024 and is convertible, at the holder’s option, into the company’s shares at a conversion rate of $1.915 per share (representing $7.66 per ADS), subject to a 9.9% ownership limit for Lynrock Lake.The convertible debt pays interest annually at an interest rate of 5.0625% for cash payments or 6% for payment in kind accruals. Sequans retains an option to call the convertible debt under certain circumstances after 12 months, either in full or in part. If a change of control occurs at any time prior to the payment of the note in full, Lynrock Lake Master Fund LP shall have the right, in its sole discretion, to require Sequans convert or redeem all of the outstanding principal amount (including accrued interest and unpaid interest). The note was 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 reflects the value of the conversion option. The initial fair value of the 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 20.89% as the market rate of interest in order to value the liability components of the note on issuance. The embedded derivative of the note was valued using the Geometric Brownian Motion framework relying on Monte-Carlo simulations.On April 9, 2021, the initial fair value of the embedded derivative of the notes was calculated to be $12,713,000 The change in fair value is remeasured and recorded as financial income or loss at each statement of financial position date. On April 14, 2021, the Company repaid the remaining amount of the existing convertible debts that were due on April 14 (convertible notes issued in April 2015 and in September 2018) with accrued paid-in-kind interest of 7%. $6,378,104 was repaid for the April 2015 convertible note ($4,250,000 in principal and $2,128,000 as accrued interest) and $5,346,699 ($4,500,000 in principal and $847,000 as accrued interest) for the September 2018 convertible note. The recalculated fair value of the embedded derivatives at the repayment date was $4,645,000 and was recorded as financial income in the Condensed Consolidated Statement of Operations and the change of the fair value amounted to a loss of $934,000. At June 30, 2021, the recalculated fair value of the remaining convertible debt embedded derivative was $16,611,000 and the change of the fair value of $1,521,000 for the six-months ended June 30, 2021 was recorded in the Condensed Consolidated Statement of Operations. Interest expense related to convertible notes recorded during the six months ended June 30, 2021 amounted to $2,768,000. A total of $2,975,000 of interest was repaid during that period. |
Lease liabilities
Lease liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Lease liabilities | Lease liabilities 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, 2021 $ 4,184 $ 472 $ 4,656 Additions — — — Disposals — (546) (546) Depreciation expenses (554) (41) (595) Amortization disposals — 152 152 As at June 30, 2021 $ 3,630 $ 37 $ 3,667 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, 2021 $ 5,776 $ 1,014 $ 4,762 Disposals (422) Interest expense 383 Foreign exchange loss (gain) (122) Payments (550) As at June 30, 2021 $ 5,065 $ 1,213 $ 3,852 The rental charges relating to short-term and low value leases remain classified as operating expenses in the Condensed Consolidated Statements of Operations and amounted to $586,000 for the six months ended June 30, 2021. |
Provisions
Provisions | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Provisions | Provisions Post- employment benefits Others Total Current Non-current (in thousands) At December 31, 2020 $ 1,155 $ 809 $ 1,964 $ 90 $ 1,874 Arising during the period 85 451 536 Released (used) during the period — (90) (90) Released (unused) during the period — (122) (122) At June 30, 2021 $ 1,240 $ 1,048 $ 2,288 $ 47 $ 2,241 The provision for post-employment benefits is for the lump sum retirement indemnity required to be paid to French employees. No employee has retired during the period. |
Other non-current liabilities
Other non-current liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other non-current liabilities | Other non-current liabilities At December 31, 2020 At June 30, 2021 (in thousands) Trade payables $ 851 $ 890 Deferred tax liabilities 19 20 Contract liabilities: License and development services agreement 2,343 254 Deferred revenue 54 — Total contract liabilities $ 2,397 $ 254 As of December 31, 2020, trade payables included the non-current part of a supplier debt related to the acquisition of certain intangible assets of $1,916,000, which is scheduled to be paid in 27 months. As of December 31, 2020, $1,139,000 remained of this liability ($244,000 as the non-current portion). As of June 30, 2021, $707,000 remained as current portion. In the six months ended June 30, 2021, the Company contracted a new supplier debt related to the acquisition of certain intangible assets. As of June 30, 2021, $289,000 remained of this liability ($202,000 as the non-current portion). In January 2020, the Company entered into an agreement with a technology company based in Israel to transfer a team of engineers to the Company for the purpose of accelerating 5G new product development. The remaining amount to be paid in June 2024 for this agreement is $1,430,000. This amount has been discounted and as of June 30, 2021, $688,000 is included in non-current trade payables ($607,000 as of December 31, 2020), and the Company records interest expense associated with this amount each reporting period. At June 30, 2021, the Company recognized a net deferred tax liability of $20,000 ($19,000 at December 31, 2020) related to origination and reversal of timing differences. 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. The contract also includes clauses that allow for termination in certain circumstances, 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 related to the upfront payment, which results in the recognition of interest expense over a portion of the term of the agreement. In the six months ended June 30, 2021, the Company recognized revenues for an amount of $5,566,000 ($5,565,000 in the six months ended June 30, 2020) as a result of development services performed and interest expenses on the upfront payment of $1,100,000 ($1,809,000 in 2020). At June 30, 2021, the net remaining contract liability of $5,936,000 was presented on the Statement of Financial Position as current contract liabilities. In December 2020, the Company signed a 5G technology access and license agreement with a strategic partner for an amount of $4,500,000. The agreement provided for an upfront payment which was received in January 2021. The Company determined that this agreement includes a financing component related to the upfront payment, which will result in the recognition of interest expense over a portion of the term of the agreement. In the six months ended June 30, 2021, the Company recognized revenues for an amount of $1,390,000. At June 30, 2021, the net remaining contract liability of $3,259,000 was presented on the Statement of Financial Position as current contract liabilities for $3,005,000 and the remaining amount of $254,000 as non-current liabilities. |
Foreign currency risk and fair
Foreign currency risk and fair value of financial instruments | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Foreign currency risk and fair value of financial instruments | Foreign currency risk and fair value of financial instruments 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 denominated in euros, and lease liabilities are denominated in different currencies while the functional currency of the entity carrying out these transactions is the US 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. During the six months ended June 30, 2021, nearly 100% of total revenues and 91% 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. During the six months ended June 30, 2021, approximately 62% of operating expense is denominated in euros. If there was a 10% increase or decrease in the exchange rate of the U.S. dollar to the euro, the Company estimates the impact, in absolute terms, on operating expenses and on financial liabilities for the six months ended June 30, 2021 would have been $3.1 million. The Company uses financial instruments, including derivatives such as foreign currency forward 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, 2020 and June 30, 2021. At December 31, 2020 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S. dollars) € 2,250 $ 84 Total € 2,250 $ 84 At June 30, 2021 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S. dollars) € 1,250 $ (5) Total € 1,250 $ (5) The fair value of foreign currency related derivatives is included in the Condensed Consolidated Statement of Financial Position in "other receivables” at December 31, 2020 and in "other liabilities" at June 30, 2021. 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 six months ended June 30, 2021, the Company recorded a loss of $92,000 (loss of $58,000 for the six months ended June 30, 2020) in other comprehensive income (loss) related to the effective portion of the change in fair value of its cash flow hedges. During the six months ended June 30, 2021, the amount reclassified from other comprehensive income to Condensed Consolidated Statement of Operations was a gain of $49,000 (loss of $150 during the six-months ended June 30, 2020). At June 30, 2021, the Company holds $1,531,000 in currencies other than the U.S. dollar compared with $339,000 at December 31, 2020 (See Note 10). The amount received from the BPI loan in May 2020 was denominated in euros and the 2020 and 2021 research tax credit financing were denominated in euros. At June 30, 2021, the Company has loans denominated in euros for a principal amount of $16,590,000 ($25,444,000 at December 31, 2020). Fair value of financial assets and liabilities 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 $386,000 and $374,000 at December 31, 2020 and June 30, 2021, respectively. The carrying amounts approximate fair value measured based on significant observable input (Level 2). • 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. • At December 31, 2020 and June 30, 2021, the carrying amount of the debt components of convertible notes approximates fair value, because, with the amendment of the convertible notes in March 2020, the existing notes were extinguished and new notes issued with effective interest rate at the amendment date. There was no change in the fair value since the amendment date. • As described under Note 15, the fair value of the embedded derivative related to the convertible debt is recalculated at the end of each reporting period. The fair value measured is based on significant observable input (Level 2). • Interest-bearing receivable financing, government loans and research project financing: carrying amounts approximate fair value. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets Explanatory [Abstract] | |
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. 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. After a second mediation session in April 2020, the parties agreed to a settlement for an amount of $2.75 million, which was approved by the Court on September 28, 2020 and paid. The settlement amount and costs to defend were paid by the Company's insurers, except for the $700,000 retention amount paid by the Company and recognized in expense prior to 2020. 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. |
Related party disclosures
Related party disclosures | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020, BPI France Participation - Fonds Large Venture, a fund managed by Bpifrance owned an estimated 8.8% of the share capital of the Company. 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 and in loans (See Note 13 Government loans). On April 2, 2020, the Company entered into a Shareholder Loan Agreement with Bpifrance Participations of $2.2 million which was converted into equity on May 15, 2020. On March 5, 2021, the Company executed an agreement with Bpifrance that provides funding to the Company in the context of a long-term research project named CRIIOT, estimated to be completed over a 33-month period. The total value of the project is €5,615,000 ($6,673,000 using exchange rate as of June 30, 2021) in the form of a grant. The funding will be paid in three installments: €1,404,000 ($1,670,000 using exchange rate of the funding date) after the signature of the contract, received in April 2021; €2,808,000 ($3,337,000 using exchange rate as of June 30, 2021) expected to be received between October 26, 2021 and October 26, 2022 based on achievement of milestones and the remaining amount of €1,403,000 ($1,667,000 using exchange rate as of June 30, 2021) at the end of the contract. 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, all to an affiliate of Nokomis Capital, L.L.C., a beneficial owner of 9.9% of the share capital of the Company (see Note 15 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. Since February 2020 and as of June 30, 2021, Nokomis no longer has representation on the board of directors. 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 (See Note 15). In December 2020, January 2021 and February 2021, Nokomis converted the April 2015, April 2016 and May 2019 notes (see Note 15 Convertible debt). As of June 30, 2021, the principal amount and accrued interest of the convertible notes held by an affiliate of Nokomis Capital, L.L.C amounts to $4.7 million. On February 2, 2021, the board of director approved a consultancy services agreement with ABLE France, a company owned by Yves Maitre, member of the board of directors, for services in business development. No other transactions have been entered into with these or any other related parties during the six months ended June 30, 2020 and 2021, 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. |
Basis of preparation and chan_2
Basis of preparation and changes to the Company’s accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of presentation | Basis of preparation The Condensed Consolidated Financial Statements for the six months ended June 30, 2021 are prepared in accordance with IAS 34 Interim Financial Reporting and were authorized for issue in accordance with a resolution of the board of directors on July 27, 2021. The Condensed Consolidated Financial Statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Company’s annual financial statements as at December 31, 2020. These Condensed Consolidated Financial Statements for the six months ended June 30, 2021 have been prepared on a going concern assumption. During 2020 and the six months ended June 30, 2021, we financed our operations primarily through gross proceeds from the issuance of shares through public and private offerings ($29.3 million in 2020 and $9.9 million in 2021), government loans ($7.6 million in 2020 of which $2.2 million was converted into equity in May 2020) and convertible notes ($39.6 million in 2021). 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 additional financing, including through a combination of government research and development funding, strategic licensing and/or service agreements, or additional equity or debt offerings, 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 slightly increasing operating cost structure, ongoing and new government funding of research programs and new strategic funding activities. 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, 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 as well as industry-wide component shortages may continue to have a negative impact on the production of the Company's products, the Company's ability to source components needed for production or on the demand for the Company's products by customers whose supply chain or end demand are negatively affected by COVID-19 and/or the component shortage, and as a result could affect the Company’s financial condition. The effects of COVID-19 also could negatively impact the ability of the Company to raise funds to meet its financial needs in the next twelve months and beyond. |
Changes in accounting policy and disclosures | Changes in accounting policy and disclosures New and amended standards and interpretations The accounting policies adopted in preparation of the Condensed Consolidated Financial Statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31, 2020 except for the following new and amended International Financial Reporting Standards (IFRS) and International Financial Reporting Interpretations Committee (IFRIC) interpretations effective as of January 1, 2021: • Interest Rate Benchmark Reform – Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. With publication of the phase two amendments, the IASB has completed its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments are effective for annual reporting periods beginning on or after January 1, 2021.The amendments had no material impact on the Company's financial statements. • IFRS IC decision on IAS 19: Employee benefits: IFRS IC was referred to the methods for calculating commitments for defined benefit plans for which the granting of rights is conditioned by the presence in the Company at the time of retirement (with loss of all rights in the event of early departure) and whose rights depend on seniority, while being capped at a certain number of years of seniority. For plans reviewed by IFRS IC, the limit may apply at a date prior to retirement. The decision of the IFRS IC concluding, in this case, that no rights are acquired in the event of departure before retirement age and that the rights are capped after a certain number of years of service ("X"), the engagement would only be recorded over the last X years of the employee's career in the company. The Company is currently assessing the impact of the decision. Standards issued but not yet effective Standards and interpretations issued but not yet effective up to the date of issue of the Company’s Condensed Consolidated Financial Statements are listed below. The Company intends to adopt these standards when they become effective: • Amendments to IAS 1: Classification of Liabilities as Current or Non-current: In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments are effective for annual reporting periods beginning on or after January 1, 2023 and must be applied retrospectively. The Company is currently assessing the impact of the amendments. • Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use. In May 2020, the IASB issued Property, Plant and Equipment — Proceeds before Intended Use, which prohibits entities deducting from the cost of an item of property, plant and equipment, any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. The amendments are effective for annual reporting periods beginning on or after January 1, 2022 and must be applied retrospectively to items of property, plant and equipment made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. The amendments are not expected to have a material impact on the Company. • Reference to the Conceptual Framework – Amendments to IFRS 3: In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations. The amendments are intended to update a reference to the Conceptual Framework without significantly changing the requirements of IFRS 3. The amendments will promote consistency in financial reporting and avoid potential confusion from having more than one version of the Conceptual Framework in use. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The amendments are not expected to have a material impact on the Company. COVID-19 Management has considered what effect the COVID-19 pandemic has on the amounts recognized in the financial statements. Management has identified potential risks related to the impact on the production of the Company's products, on the Company's ability to source components required for production and on the demand for the Company's products by customers impacted by the pandemic. In the six months ended June 30, 2020, the primary impacts on operations of the COVID-19 pandemic were to increase demand in the broadband IoT business and in the six months ended June 30, 2020 and 2021, were to increase certain costs related to a temporary shortage of components and to delay growth in product revenues due to the limits placed on production capacity driven by the component shortages. As of June 30, 2021, the Company has not identified any impact on its assets and liabilities. |
Other information | Other information No impairment tests on property, plant and equipment or on intangible assets were performed as of June 30, 2021 as no events or changes in circumstances indicated that the carrying amount of those assets was not recoverable. There is no major seasonality in Sequans’ revenue, although the first quarter tends to be seasonally the weakest for product revenue. |
Segment information and disag_2
Segment information and disaggregated revenue disclosures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Operating segments [Abstract] | |
Schedule of Total Revenue by Geographic Region | The Company categorizes its total revenue geographically based on the location to which it invoices. Six months ended June 30, 2020 2021 (In thousands) Asia: Taiwan $ 5,566 $ 8,691 Korea 7,475 1,089 Rest of Asia 294 667 Total Asia 13,335 10,447 United States of America 6,917 11,850 Rest of world 751 2,881 Total revenue $ 21,003 $ 25,178 |
Disclosure of Revenue Disaggregation | The Company categorizes its total revenue based on type of end user application. Six months ended June 30, 2020 2021 (In thousands) Broadband and Critical IoT $ 8,390 $ 4,089 Massive IoT 6,642 14,069 Vertical 5,971 7,020 Total revenue $ 21,003 $ 25,178 Additionally, the Company categorizes its total revenue as product and other revenue, which includes license and service revenue. Six months ended June 30, 2020 2021 (In thousands) Product $ 14,275 $ 15,941 License — 300 Development and other services 6,728 8,937 Total revenue $ 21,003 $ 25,178 |
Disclosure of Major Customers | For the six-month periods ended June 30, 2020 and 2021, customers representing more than 10% of revenue, and related accounts receivables at the end of the period, were: Customer Customer Location % of total revenues for the six months ended June 30, Trade receivables at 2020 2021 June 30, 2021 A Taiwan 24 % 31% $3,836,951 B United States of America 26 % 22% $1,800,000 C South Korea 35 % Less than 10% $648,248 |
Interest expenses (Tables)
Interest expenses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |
Major components of interest expenses | The table below presents the major components of interest expenses: Six months June 30, 2020 2021 (In thousands) Interest on loans $ 4,839 $ 4,107 Interest on lease contract 327 383 Interest on financing component of long-term development services agreements 1,809 1,415 Interest on supplier payable with extended payment terms 53 81 Other bank fees and financial charges 200 160 Total interest expenses $ 7,228 $ 6,146 |
Income tax (Tables)
Income tax (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Taxes [Abstract] | |
Schedule of Major Components of Income Tax Expense | The major components of income tax expense are: Six months ended June 30, 2020 2021 (in thousands) Condensed Consolidated Statement of Operations Current income tax expense $ 79 $ 297 Deferred income tax expense (benefit) 398 — Income tax expense (benefit) reported in the Condensed Consolidated Statement of Operations $ 477 $ 297 |
Intangible assets (Tables)
Intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Intangible Assets [Abstract] | |
Schedule of Intangible Assets | Intangible assets include: Capitalized development costs Licenses Total (in thousands) Cost: At December 31, 2020 $ 16,798 $ 29,391 $ 46,189 Additions 8,804 1,074 9,878 Exchange difference — 96 96 At June 30, 2021 $ 25,602 $ 30,561 $ 56,163 Amortization and impairment: At December 31, 2020 3,250 17,627 20,877 Amortization 1,187 2,534 3,721 Exchange difference — 30 30 At June 30, 2021 $ 4,437 $ 20,191 $ 24,628 Net book value: At January 1, 2021 $ 13,548 $ 11,764 $ 25,312 At June 30, 2021 $ 21,165 $ 10,370 $ 31,535 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventories [Abstract] | |
Schedule of Inventories | At December 31, 2020 At June 30, 2021 (in thousands) Components $ 2,138 $ 2,223 Finished goods 4,996 3,911 Total inventories at cost $ 7,134 $ 6,134 Depreciation of components $ 2 $ 2 Depreciation of finished goods 907 926 Total depreciation $ 909 $ 928 Components, net $ 2,136 $ 2,221 Finished goods, at the lower of cost and net realizable value 4,089 2,985 Total net inventories $ 6,225 $ 5,206 |
Trade receivables and contrac_2
Trade receivables and contract assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Non-Interest Bearing Trade Receivables | Trade receivables are non-interest bearing and are generally on 30-90 day payment terms. At December 31, 2020 At June 30, 2021 (in thousands) Trade receivables $ 20,537 $ 11,020 Contract assets 371 806 Provision for credit notes to be issued (536) (863) Provisions on trade receivables (2,724) (2,724) Net trade receivables $ 17,648 $ 8,239 |
Schedule of Movements in the Provision for Impairment of Receivables | The movements in the provision for impairment of receivables were as follows: Year ended December 31, Six months ended June 30, 20201 (in thousands) At January 1, $ 2,719 $ 2,724 Charge for the period 47 — Utilized amounts — — Unutilized amounts (42) — At period end $ 2,724 $ 2,724 Post- employment benefits Others Total Current Non-current (in thousands) At December 31, 2020 $ 1,155 $ 809 $ 1,964 $ 90 $ 1,874 Arising during the period 85 451 536 Released (used) during the period — (90) (90) Released (unused) during the period — (122) (122) At June 30, 2021 $ 1,240 $ 1,048 $ 2,288 $ 47 $ 2,241 |
Aging Analysis of Trade Receivables That Were Not Impaired | 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, 2020 $ 17,648 $ 14,232 $ 2,879 $ 53 $ — $ 484 At June 30, 2021 $ 8,239 $ 6,874 $ 327 $ 26 $ 1,012 $ — |
Cash and cash equivalents; sh_2
Cash and cash equivalents; short-term deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Cash, Cash Equivalents, and Deposits | At December 31, 2020 At June 30, 2021 (in thousands) Cash at banks $ 7,567 $ 3,776 Cash equivalents 7 7 Short-term deposits 10,900 26,500 Cash, cash equivalents and deposits $ 18,474 $ 30,283 At December 31, 2020 At June 30, 2021 (in thousands) U.S. dollar denominated accounts $ 18,135 $ 28,752 Euro denominated accounts 154 1,300 GBP denominated accounts 76 13 SGP denominated accounts 44 14 NIS denominated accounts 14 139 RMB denominated accounts 29 51 Other currencies denominated accounts 22 14 Cash, cash equivalents and deposits $ 18,474 $ 30,283 |
Share-based payment plans (Tabl
Share-based payment plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-Based Payment Arrangements [Abstract] | |
Share-based payment breakdown | The breakdown is as follows: Six months ended June 30, 2020 2021 (in thousands) Cost of revenue $ 9 $ 30 Research and development $ 538 $ 1,067 Sales and marketing $ 235 $ 423 General and administrative $ 510 $ 732 Total $ 1,292 $ 2,252 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 $ 4,184 $ 472 $ 4,656 Additions — — — Disposals — (546) (546) Depreciation expenses (554) (41) (595) Amortization disposals — 152 152 As at June 30, 2021 $ 3,630 $ 37 $ 3,667 |
Disclosure of lease liabilities | 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, 2021 $ 5,776 $ 1,014 $ 4,762 Disposals (422) Interest expense 383 Foreign exchange loss (gain) (122) Payments (550) As at June 30, 2021 $ 5,065 $ 1,213 $ 3,852 |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities and Contingent Assets [Abstract] | |
Reconciliation of Changes in Provisions | The movements in the provision for impairment of receivables were as follows: Year ended December 31, Six months ended June 30, 20201 (in thousands) At January 1, $ 2,719 $ 2,724 Charge for the period 47 — Utilized amounts — — Unutilized amounts (42) — At period end $ 2,724 $ 2,724 Post- employment benefits Others Total Current Non-current (in thousands) At December 31, 2020 $ 1,155 $ 809 $ 1,964 $ 90 $ 1,874 Arising during the period 85 451 536 Released (used) during the period — (90) (90) Released (unused) during the period — (122) (122) At June 30, 2021 $ 1,240 $ 1,048 $ 2,288 $ 47 $ 2,241 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Non-Current Liabilities | At December 31, 2020 At June 30, 2021 (in thousands) Trade payables $ 851 $ 890 Deferred tax liabilities 19 20 Contract liabilities: License and development services agreement 2,343 254 Deferred revenue 54 — Total contract liabilities $ 2,397 $ 254 |
Foreign currency risk and fai_2
Foreign currency risk and fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Schedule of Present Fair Values of Derivative Financial Instruments | The following tables present fair values of derivative financial instruments at December 31, 2020 and June 30, 2021. At December 31, 2020 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S. dollars) € 2,250 $ 84 Total € 2,250 $ 84 At June 30, 2021 Notional Amount Fair value (in thousands) Forward contracts (buy euros, sell U.S. dollars) € 1,250 $ (5) Total € 1,250 $ (5) |
Basis of preparation and chan_3
Basis of preparation and changes to the Company’s accounting policies (Details) - USD ($) $ in Thousands | May 15, 2020 | May 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |||||
Public equity offering proceeds | $ 9,900 | $ 29,300 | |||
Proceeds from governments loans | $ 7,600 | ||||
Conversion of convertible instruments | $ 2,200 | $ 2,200 | 17,672 | ||
Proceeds from convertible debt, net of transaction costs | $ 39,647 | $ 2,050 |
Segment information and disag_3
Segment information and disaggregated revenue disclosures - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($)segment | Jun. 30, 2020 | |
Disclosure of geographical areas [line items] | ||
Number of operating segments | segment | 1 | |
Transaction price allocated to remaining performance obligations | $ 5,439,000 | |
Within one year | ||
Disclosure of geographical areas [line items] | ||
Transaction price allocated to remaining performance obligations | 4,919,000 | |
Years after | ||
Disclosure of geographical areas [line items] | ||
Transaction price allocated to remaining performance obligations | $ 520,000 | |
International | ||
Disclosure of geographical areas [line items] | ||
Percentage of total revenues | 99.10% | 99.50% |
Segment information and disag_4
Segment information and disaggregated revenue disclosures - Schedule of Total Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of geographical areas [line items] | ||
Product revenue | $ 25,178 | $ 21,003 |
Total Asia | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 10,447 | 13,335 |
Taiwan | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 8,691 | 5,566 |
Korea | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 1,089 | 7,475 |
Rest of Asia | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 667 | 294 |
United States of America | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 11,850 | 6,917 |
Rest of world | ||
Disclosure of geographical areas [line items] | ||
Product revenue | $ 2,881 | $ 751 |
Segment information and disag_5
Segment information and disaggregated revenue disclosures - Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of geographical areas [line items] | ||
Product revenue | $ 25,178 | $ 21,003 |
Broadband and Critical IoT | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 4,089 | 8,390 |
Massive IoT | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 14,069 | 6,642 |
Vertical | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 7,020 | 5,971 |
Product | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 15,941 | 14,275 |
License | ||
Disclosure of geographical areas [line items] | ||
Product revenue | 300 | 0 |
Development and other services | ||
Disclosure of geographical areas [line items] | ||
Product revenue | $ 8,937 | $ 6,728 |
Segment information and disag_6
Segment information and disaggregated revenue disclosures - Major Customers (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of major customers [line items] | |||
Trade receivables | $ 7,433,000 | $ 17,277,000 | |
Credit risk | Taiwan | A Taiwan | |||
Disclosure of major customers [line items] | |||
Percentage of total revenues | 31.00% | 24.00% | |
Trade receivables | $ 3,836,951 | ||
Credit risk | United States of America | B United States of America | |||
Disclosure of major customers [line items] | |||
Percentage of total revenues | 22.00% | 26.00% | |
Trade receivables | $ 1,800,000 | ||
Credit risk | Korea | C South Korea | |||
Disclosure of major customers [line items] | |||
Percentage of total revenues | 10.00% | 35.00% | |
Trade receivables | $ 648,248 |
Research tax credit receivabl_2
Research tax credit receivable and product development costs capitalized (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Research tax credit receivable | $ 6,724,000 | $ 5,110,000 | |
Intangible assets | 31,535,000 | 25,312,000 | |
Research Tax Credit | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Research tax credit receivable | 7,880,000 | ||
Capitalized development costs | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Intangible assets | 21,165,000 | $ 13,548,000 | |
Capitalized development costs | Monarch N, Monarch 2 And Calliope 2 Chipsets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Intangible assets | $ 8,804,000 | $ 2,599,000 |
Interest expenses - Major compo
Interest expenses - Major components of interest expenses (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||
Interest on loans | $ 4,107 | $ 4,839 |
Interest on lease contract | 383 | 327 |
Interest on financing component of long-term development services agreements | 1,415 | 1,809 |
Interest on supplier payable with extended payment terms | 81 | 53 |
Other bank fees and financial charges | 160 | 200 |
Total interest expenses | $ 6,146 | $ 7,228 |
Interest expenses - Narrative (
Interest expenses - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of detailed information about borrowings [line items] | ||
Interest on loans | $ 4,107,000 | $ 4,839,000 |
Loans and finance leases related to convertible debts issued and government loans granted | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest on loans | $ 4,107,000 | $ 4,750,000 |
Income tax - Schedule of Major
Income tax - Schedule of Major Components of Income Tax Expense (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes [Abstract] | ||
Current income tax expense | $ 297,000 | $ 79,000 |
Deferred income tax expense (benefit) | 0 | 398,000 |
Income tax expense (benefit) reported in the Condensed Consolidated Statement of Operations | $ 297,000 | $ 477,000 |
Income tax - Narrative (Details
Income tax - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax asset (liability) recognized through equity | $ 809,000 | ||
Deferred tax expense (benefit) | $ 0 | $ 398,000 | |
Deferred tax liabilities | $ 20,000 | $ 19,000 |
Intangible assets (Details)
Intangible assets (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | $ 25,312 |
Intangible assets other than goodwill at end of period | 31,535 |
Cost: | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | 46,189 |
Additions | 9,878 |
Exchange difference | 96 |
Intangible assets other than goodwill at end of period | 56,163 |
Amortization and impairment: | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | (20,877) |
Additions | (3,721) |
Exchange difference | (30) |
Intangible assets other than goodwill at end of period | (24,628) |
Capitalized development costs | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | 13,548 |
Intangible assets other than goodwill at end of period | 21,165 |
Capitalized development costs | Cost: | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | 16,798 |
Additions | 8,804 |
Exchange difference | 0 |
Intangible assets other than goodwill at end of period | 25,602 |
Capitalized development costs | Amortization and impairment: | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | (3,250) |
Additions | (1,187) |
Exchange difference | 0 |
Intangible assets other than goodwill at end of period | (4,437) |
Licenses | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | 11,764 |
Intangible assets other than goodwill at end of period | 10,370 |
Licenses | Cost: | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | 29,391 |
Additions | 1,074 |
Exchange difference | 96 |
Intangible assets other than goodwill at end of period | 30,561 |
Licenses | Amortization and impairment: | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | |
Intangible assets other than goodwill at beginning of period | (17,627) |
Additions | (2,534) |
Exchange difference | (30) |
Intangible assets other than goodwill at end of period | $ (20,191) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Components | $ 2,221 | $ 2,136 |
Finished goods | 2,985 | 4,089 |
Total net inventories | 5,206 | 6,225 |
Gross carrying amount | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Components | 2,223 | 2,138 |
Finished goods | 3,911 | 4,996 |
Total net inventories | 6,134 | 7,134 |
Inventory adjustments | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Components | 2 | 2 |
Finished goods | 926 | 907 |
Total net inventories | $ 928 | $ 909 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Damaged goods inventory adjustments | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Inventory adjustment included in depreciation | $ 907,000 |
Trade receivables and contrac_3
Trade receivables and contract assets - Schedule of Non-Interest Bearing Trade Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Trade receivables | $ 11,020 | $ 20,537 |
Contract assets | 806 | 371 |
Provision for credit notes to be issued | (863) | (536) |
Provisions on trade receivables | (2,724) | (2,724) |
Net trade receivables | $ 8,239 | $ 17,648 |
Trade receivables and contrac_4
Trade receivables and contract assets - Schedule of Movements in the Provision for Impairment of Receivables (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
At January 1, | $ 2,724 | |
At period end | 2,724 | $ 2,724 |
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, | 2,724 | 2,719 |
Charge for the period | 0 | 47 |
Utilized amounts | 0 | 0 |
Unutilized amounts | 0 | (42) |
At period end | $ 2,724 | $ 2,724 |
Trade receivables and contrac_5
Trade receivables and contract assets - Aging Analysis of Trade Receivables That Were Not Impaired (Details) - Trade receivables - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 8,239 | $ 17,648 |
Neither past due nor Impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 6,874 | 14,232 |
Past due but not impaired | Less than 30 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 327 | 2,879 |
Past due but not impaired | 30-60 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 26 | 53 |
Past due but not impaired | 60-120 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,012 | 0 |
Past due but not impaired | More than 120 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 0 | $ 484 |
Cash and cash equivalents; sh_3
Cash and cash equivalents; short-term deposits - Schedule of Cash, Cash Equivalents, and Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Cash at banks | $ 3,776 | $ 7,567 |
Cash equivalents | 7 | 7 |
Short-term deposits | 26,500 | 10,900 |
Cash, cash equivalents and deposits | $ 30,283 | $ 18,474 |
Cash and cash equivalents; sh_4
Cash and cash equivalents; short-term deposits - Schedule of Cash, Cash Equivalents, and Deposits Held by Currency (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | $ 30,283 | $ 18,474 |
U.S. dollar denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | 28,752 | 18,135 |
Euro denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | 1,300 | 154 |
GBP denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | 13 | 76 |
SGP denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | 14 | 44 |
NIS denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | 139 | 14 |
RMB denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | 51 | 29 |
Other currencies denominated accounts | ||
Disclosure Of Cash And Cash Equivalents [Line Items] | ||
Cash, cash equivalents and deposits | $ 14 | $ 22 |
Issued capital and reserves - A
Issued capital and reserves - Authorized capital, in number of shares (Details) - € / shares | Jun. 30, 2021 | Dec. 31, 2020 | Nov. 29, 2019 |
Share Capital, Reserves And Other Equity Interest [Abstract] | |||
Authorised capital (in shares) | 312,150,039 | 147,036,688 | |
Nominal value (euro per share) | € 0.02 | € 0.02 | |
Number of ordinary shares per each ADS (in shares) | 4 |
Issued capital and reserves - S
Issued capital and reserves - Shares issued and fully paid (Details) € in Thousands, $ in Thousands | Jun. 30, 2021USD ($)shares | Jun. 30, 2021EUR (€)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2020EUR (€)shares |
Share Capital, Reserves And Other Equity Interest [Abstract] | ||||
Ordinary shares (in shares) | 149,475,334 | 149,475,334 | 133,934,090 | 133,934,090 |
Shares outstanding (in shares) | 149,475,334 | 149,475,334 | 133,934,090 | 133,934,090 |
Ordinary shares | $ 3,642 | € 2,990 | $ 3,269 | € 2,678 |
Issued capital and reserves - C
Issued capital and reserves - Capital transactions (Details) - USD ($) | Apr. 08, 2021 | May 15, 2020 | May 14, 2020 | Feb. 12, 2021 | May 31, 2020 | Apr. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Apr. 02, 2020 |
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Ordinary shares issued in connection with a public offering (in shares) | 7,272,724 | 22,330,096 | |||||||||
Ordinary share price (usd per share) | $ 1.375 | $ 1.2875 | |||||||||
Share price per ADS (in shares) | $ 5.50 | $ 5.15 | |||||||||
Total offering | $ 9,999,996 | $ 28,749,999 | $ 10,000,000 | $ 28,750,000 | |||||||
Costs directly attributable to the equity transaction | $ 2,300,000 | $ 136,000 | $ 2,971,000 | ||||||||
Shares issued (in shares) | 149,475,334 | 133,934,090 | |||||||||
Conversion of convertible debts (Note 15) | $ 2,200,000 | $ 2,200,000 | $ 17,672,000 | ||||||||
Underwriters' over-allotment shares issued (in shares) | 2,912,620 | ||||||||||
Share capital | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Ordinary shares issued in connection with a public offering (in shares) | 7,272,724,000 | 22,330,096,000 | |||||||||
Total offering | 172,698 | $ 486,761 | $ 173,000 | $ 487,000 | |||||||
Conversion of convertible debts (Note 15) | $ 175,000 | ||||||||||
Conversion of convertible debts (Note 15) (in shares) | 1,715,476 | 7,227,308,000 | |||||||||
Share premium | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Total offering | 9,827,297 | 28,263,238 | $ 9,827,000 | 28,263,000 | |||||||
Costs directly attributable to the equity transaction | $ 100,000 | 136,000 | $ 2,971,000 | ||||||||
Conversion of convertible debts (Note 15) | $ 12,111,000 | ||||||||||
Bpifrance Participations | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Private placement ADS issued (in shares) | 428,869 | ||||||||||
Private placement ADS issued (in dollars per share) | $ 5.15 | ||||||||||
Bpifrance Participations | Share capital | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Notional amount | 37,253 | ||||||||||
Bpifrance Participations | Share premium | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Costs directly attributable to the equity transaction | $ 200,000 | ||||||||||
Notional amount | $ 2,209,589 | ||||||||||
B. Riley FBR, Inc. | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Aggregate offering price (up to) | $ 35,000,000 | ||||||||||
Number of ADS sold (in shares) | 242,646 | ||||||||||
Issue of shares in connection with the ATM program (in shares) | 970,584 | ||||||||||
Gross proceeds from sale | $ 1,613,116 | ||||||||||
Net proceeds from sale | 1,100,000 | ||||||||||
B. Riley FBR, Inc. | Share capital | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Gross proceeds from sale | 21,114 | ||||||||||
B. Riley FBR, Inc. | Share premium | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Costs directly attributable to the equity transaction | $ 500,000 | ||||||||||
Gross proceeds from sale | $ 1,592,002 | ||||||||||
Convertible Notes 2015 | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Notional amount | $ 7,750,000 | ||||||||||
Borrowings, accrued interest | $ 4,536,438 | ||||||||||
Shares issued (in shares) | 7,227,308 | ||||||||||
Convertible Notes 2015 | Share capital | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Conversion of convertible debts (Note 15) | $ 175,239 | ||||||||||
Convertible Notes 2015 | Share premium | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Conversion of convertible debts (Note 15) | $ 12,111,185 | ||||||||||
Shareholder Loan Agreement | Bpifrance Participations | |||||||||||
Disclosure of analysis of other comprehensive income by item [line items] | |||||||||||
Notional amount | $ 2,200,000 | ||||||||||
Borrowings, interest rate | 4.00% |
Share-based payment plans - Nar
Share-based payment plans - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2021warrant$ / sharesshares | Jun. 30, 2020 | Jun. 30, 2021USD ($)shares$ / sharesshares | Jun. 30, 2020USD ($) | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Expense recognized for employee and other services received | $ | $ 2,252,000 | $ 1,292,000 | ||
Stock options, restricted shares and warrants canceled (in shares) | 375,731 | |||
Stock options exercised (in shares) | 59,908 | |||
Ordinary shares | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Increase (decrease) in number of shares outstanding (in shares) | 59,908 | |||
Issuance of ordinary shares (in shares) | $ | $ 1,450 | |||
Share premium | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Issuance of ordinary shares (in shares) | $ | $ 94,612 | |||
Restricted share awards (RSA) | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Awards granted (in shares) | 329,280 | |||
Award vesting period | 4 years | |||
Restricted share awards (RSA) | One-year anniversary | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Award vesting period | 1 year | |||
Award vesting percentage | 25.00% | |||
Restricted share awards (RSA) | One-year anniversary alternative | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Award vesting period | 2 years | |||
Award vesting percentage | 50.00% | |||
Warrants | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Award vesting period | 1 year | |||
Number of other equity instruments granted in share-based payment arrangement (in shares) | warrant | 980,000 | |||
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in dollars per share) | $ / shares | $ 1.49 | $ 1.49 | ||
Weighted average exercise price of other equity instruments exercisable in share-based payment arrangement (in dollars per ADS) | $ / shares | $ 5.96 | $ 5.96 | ||
Warrants | Consultants | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Number of share options and other equity instruments outstanding in share-based payment arrangement (in shares) | 96,000 | 96,000 | ||
Restricted shares | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Vested (in shares) | 981,304 |
Share-based payment plans - Bre
Share-based payment plans - Breakdown (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total | $ 2,252 | $ 1,292 |
Cost of revenue | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total | 30 | 9 |
Research and development | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total | 1,067 | 538 |
Sales and marketing | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total | 423 | 235 |
General and administrative | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Total | $ 732 | $ 510 |
Government grant advances and_2
Government grant advances and loans (Details) | Apr. 30, 2020EUR (€) | Mar. 31, 2021 | Feb. 29, 2020USD ($) | Feb. 29, 2020EUR (€) | Jan. 31, 2016USD ($) | Jan. 31, 2016EUR (€) | Jun. 30, 2021USD ($) | Apr. 30, 2021USD ($) | Apr. 30, 2021EUR (€) | Dec. 31, 2020USD ($) | Jan. 31, 2016EUR (€) |
Long-Term Research Project - January 2016 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Debt instrument, increase (decrease) for period, net | $ 30,000 | ||||||||||
Long-Term Research Project - January 2016 | Royalty Agreement terms | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Research and Development arrangement, contract to perform for others, excess sales threshold | $ 3,700,000 | € 3,000,000 | |||||||||
Research and Development arrangement, contract to perform for others, royalty percentage | 13.00% | 13.00% | |||||||||
Research and Development arrangement, contract to perform for others, maximum royalty payable | $ 736,000 | € 600,000 | |||||||||
Research and Development arrangement, contract to perform for others, term | 10 years | 10 years | |||||||||
French Government Debt Financing | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Notional amount | € | € 5,000,000 | ||||||||||
Maturity term | 1 year | ||||||||||
Borrowings, interest rate | 1.75% | ||||||||||
Option maturity term | 5 years | 5 years | |||||||||
Amount classified as current | $ 707,000 | ||||||||||
Total non-current portion | $ 5,421,000 | ||||||||||
Government Loan, Covid-19 Support Plan | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Current borrowings | $ 1,395,000 | ||||||||||
Research Project Financing | Long-Term Research Project - January 2016 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Notional amount | $ 2,288,000 | € 2,095,000 | |||||||||
Research Project Financing - Government Grant | Long-Term Research Project - January 2016 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Notional amount | 729,000 | 668,000 | |||||||||
Research Project Financing - Forgivable Loan | Long-Term Research Project - January 2016 | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Notional amount | $ 1,558,000 | € 1,427,000 | |||||||||
Proceeds received from long-term projects | $ 405,000 | € 365,000 | |||||||||
Borrowings, debt relief | $ 1,442,111 | € 1,214,000 | |||||||||
Borrowings, debt relief, outstanding amount | € | € 213,000 | ||||||||||
Minimum | French Government Debt Financing | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Notice term to option | 1 month | ||||||||||
Maximum | French Government Debt Financing | |||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||
Notice term to option | 4 months |
Venture debt (Details)
Venture debt (Details) $ / shares in Units, $ in Thousands | Oct. 26, 2018USD ($)$ / sharesshares | Oct. 26, 2018EUR (€) | Nov. 30, 2019USD ($) | Nov. 30, 2019EUR (€) | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2020USD ($) | Oct. 26, 2018EUR (€)shares |
Disclosure of detailed information about borrowings [line items] | ||||||||
Warrants | $ 819 | € 712,000 | ||||||
Repayment of venture debt | $ 8,042 | $ 2,449 | ||||||
Interest on loans | 4,107 | 4,839 | ||||||
Gain on debt modification | (5,177) | $ (1,399) | ||||||
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% | ||||||
Maturity term | 42 months | 42 months | ||||||
Additional fee to be paid at end of term | 2.50% | 2.50% | ||||||
Subscription price (in dollars per share) | $ / shares | $ 1 | |||||||
Number of warrants issued (in shares) | 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 | |||||||
Bond issuance agreement | Venture debt | Financial liabilities at fair value through profit or loss | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Increase in borrowings | $ 12,800 | € 10,900,000 | ||||||
Repayment of venture debt | $ 550 | € 448,000 | 7,869 | € 6,588,007 | ||||
Interest on loans | 701 | |||||||
Gain on debt modification | $ 532 |
Convertible debt - Changes over
Convertible debt - Changes over the 6 month-period ended June 30, 2020 (Details) | Apr. 14, 2021USD ($) | Mar. 20, 2020USD ($)options | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 09, 2021USD ($) | Dec. 31, 2020USD ($) | Feb. 11, 2020$ / shares | Apr. 30, 2016$ / shares |
Disclosure of detailed information about borrowings [line items] | ||||||||
Financial expense for change in liability component | $ 5,177,000 | $ 1,399,000 | ||||||
Convertible debt embedded derivative | 16,611,000 | $ 12,395,000 | ||||||
Change in fair value of convertible debt derivative | $ (934,000) | (2,682,000) | (14,762,000) | |||||
Interest expense | 4,107,000 | 4,839,000 | ||||||
2016 convertible notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 1.225 | $ 2.25 | ||||||
Convertible notes issued except August 2019 notes | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Number of options to extend term | options | 3 | |||||||
Convertible notes issued in August 2019 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Number of options to extend term | options | 2 | |||||||
Convertible notes issued in April 2015, April 2016, September 2018, May 2019 and August 2019 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Option term extension | 1 year | |||||||
Conversion premium percentage | 20.00% | |||||||
VWAP period | 20 days | |||||||
Option one | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Conversion premium percentage | 20.00% | |||||||
VWAP period | 20 days | |||||||
Payment-in-kind interest | 7.00% | |||||||
Warrant, percentage of note value | 10.00% | |||||||
Warrant term | 3 years | |||||||
Option two | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Option term extension | 1 year | |||||||
Conversion premium percentage | 20.00% | |||||||
VWAP period | 20 days | |||||||
Payment-in-kind interest | 9.50% | |||||||
Warrant, percentage of note value | 15.00% | |||||||
Warrant term | 3 years | |||||||
Option three | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Conversion premium percentage | 20.00% | |||||||
VWAP period | 20 days | |||||||
Payment-in-kind interest | 13.50% | |||||||
Warrant, percentage of note value | 20.00% | |||||||
Warrant term | 3 years | |||||||
Convertible debt | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Convertible debt embedded derivative | 16,611,000 | $ 12,713,000 | ||||||
Change in fair value of convertible debt derivative | (1,521,000) | |||||||
Interest rate | 7.00% | |||||||
Interest expense | $ 2,768,000 | 3,797,000 | ||||||
Convertible debt | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Convertible debt embedded derivative | $ 5,266,000 | 20,028,000 | ||||||
Change in fair value of convertible debt derivative | $ 14,762,000 | |||||||
Market approach | Convertible debt | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Market rate of interest input percentage | 0.263 |
Convertible debt - Changes ov_2
Convertible debt - Changes over the 6 month-period ended June 30, 2021 (Details) - USD ($) | Apr. 14, 2021 | Apr. 09, 2021 | May 15, 2020 | May 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Feb. 12, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||||||||
Shares issued (in shares) | 149,475,334 | 133,934,090 | ||||||
Convertible debt embedded derivative | $ 16,611,000 | $ 12,395,000 | ||||||
Change in fair value of convertible debt derivative | $ (934,000) | (2,682,000) | $ (14,762,000) | |||||
Conversion of convertible debts (Note 15) | $ 2,200,000 | $ 2,200,000 | 17,672,000 | |||||
Repayment of convertible debt | 8,750,000 | 0 | ||||||
Interest expense | 4,107,000 | 4,839,000 | ||||||
Interest paid, classified as financing activities | 4,480,000 | 1,215,000 | ||||||
Other capital reserves | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Conversion of convertible debts (Note 15) | 5,386,000 | |||||||
Convertible Notes 2015 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 7,750,000 | |||||||
Borrowings, accrued interest | $ 4,536,438 | |||||||
Shares issued (in shares) | 7,227,308 | |||||||
Convertible debt embedded derivative | 6,534,000 | |||||||
Change in fair value of convertible debt derivative | (3,269,000) | |||||||
Repayment of convertible debt | 6,378,104 | |||||||
Repayment of convertible debt, principal | 4,250,000 | |||||||
Repayment of convertible debt, accrued interest | 2,128,000 | |||||||
Convertible Notes 2021 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Notional amount | $ 40,000,000 | |||||||
Conversion price (in dollars per share) | $ 1.915 | |||||||
Conversion price (in dollars per ADS) | $ 7.66 | |||||||
Debt instrument, convertible, interest rate | 5.0625% | |||||||
Debt instrument, convertible, payment-in-kind interest rate | 6.00% | |||||||
Debt instrument, convertible, maximum period to call the convertible debt | 12 months | |||||||
Debt instrument, convertible, ownership limit | 9.90% | |||||||
Convertible Notes 2015 And 2018 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Convertible debt embedded derivative | $ 4,645,000 | |||||||
Interest rate | 7.00% | |||||||
Convertible Notes 2018 | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Repayment of convertible debt | $ 5,346,699 | |||||||
Repayment of convertible debt, principal | 4,500,000 | |||||||
Repayment of convertible debt, accrued interest | $ 847,000 | |||||||
Convertible debt | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Convertible debt embedded derivative | $ 12,713,000 | 16,611,000 | ||||||
Change in fair value of convertible debt derivative | (1,521,000) | |||||||
Interest rate | 7.00% | |||||||
Interest expense | 2,768,000 | $ 3,797,000 | ||||||
Interest paid, classified as financing activities | $ 2,975,000 |
Accounts receivable financing_2
Accounts receivable financing agreement (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 66 Months Ended | 72 Months Ended | |||||||
Jun. 30, 2014 | Dec. 31, 2021 | Dec. 31, 2027 | Dec. 31, 2026 | Dec. 31, 2022 | Dec. 31, 2026 | Dec. 31, 2027 | Jun. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | May 31, 2020 | Jul. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Current borrowings | $ 10,755,000 | $ 14,228,000 | ||||||||||
Interest-bearing receivables financing | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Current borrowings | 5,052,000 | $ 10,421,000 | ||||||||||
Accounts receivable financing agreement | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Available borrowings (up to) | $ 800,000 | |||||||||||
2020 Research Tax Credit Financing | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Current borrowings | 4,016,000 | |||||||||||
Effective interest rate | 6.20% | 6.45% | ||||||||||
2020 Research Tax Credit Financing | Forecast | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Proceeds from governments loans, net of transaction costs | $ 558,000 | $ 119,000 | $ 677,000 | |||||||||
2021 Research Tax Credit Financing | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Current borrowings | $ 1,687,000 | |||||||||||
2021 Research Tax Credit Financing | Forecast | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Proceeds from governments loans, net of transaction costs | $ 164,000 | $ 1,012,000 | $ 1,176,000 | |||||||||
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% |
Lease liabilities - Right-of-us
Lease liabilities - Right-of-use Assets Activity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Disclosure of Leases [Line Items] | |
As at January 1, 2021 | $ 4,656 |
Additions | 0 |
Disposals | (546) |
Depreciation expenses | (595) |
Amortization disposals | 152 |
As at June 30, 2021 | 3,667 |
Real-estate | |
Disclosure of Leases [Line Items] | |
As at January 1, 2021 | 4,184 |
Additions | 0 |
Disposals | 0 |
Depreciation expenses | (554) |
Amortization disposals | 0 |
As at June 30, 2021 | 3,630 |
IT and office equipment | |
Disclosure of Leases [Line Items] | |
As at January 1, 2021 | 472 |
Additions | 0 |
Disposals | (546) |
Depreciation expenses | (41) |
Amortization disposals | 152 |
As at June 30, 2021 | $ 37 |
Lease liabilities - Lease Liabi
Lease liabilities - Lease Liabilities Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
As at January 1, 2021 | $ 5,776 | |
Disposals | (422) | |
Interest expense | 383 | $ 327 |
Foreign exchange loss (gain) | (122) | |
Payments | (550) | |
As at June 30, 2021 | 5,065 | |
Current lease liabilities at beginning of period | 1,014 | |
Current lease liabilities at end of period | 1,213 | |
Non-current at beginning of period | 4,762 | |
Non-current at end of period | $ 3,852 |
Lease liabilities - Narrative (
Lease liabilities - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Subclassifications of assets, liabilities and equities [abstract] | |
Rental charges | $ 586,000 |
Provisions - Reconciliation of
Provisions - Reconciliation of Changes in Provisions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Provisions For Employee Benefits [Roll Forward] | ||
At December 31, 2020 | $ 1,155 | |
Arising during the period | 85 | |
Released (used) during the period | 0 | |
Released (unused) during the period | 0 | |
At June 30, 2021 | 1,240 | |
Provisions [Roll Forward] | ||
At December 31, 2020 | 1,964 | |
Arising during the period | 536 | |
Released (used) during the period | (90) | |
Released (unused) during the period | (122) | |
At June 30, 2021 | 2,288 | |
Current | 47 | $ 90 |
Non-current | 2,241 | $ 1,874 |
Others | ||
Other Provisions [Roll Forward] | ||
At December 31, 2020 | 809 | |
Arising during the period | 451 | |
Released (used) during the period | (90) | |
Released (unused) during the period | (122) | |
At June 30, 2021 | $ 1,048 |
Other non-current liabilities -
Other non-current liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2016 |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Trade payables | $ 890,000 | $ 851,000 | |
Deferred tax liabilities | 20,000 | 19,000 | |
Contract liabilities | 254,000 | 2,397,000 | |
License and development services agreement | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Contract liabilities | 254,000 | 2,343,000 | |
Deferred revenue | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Contract liabilities | $ 0 | $ 54,000 | $ 1,940,000 |
Other non-current liabilities_2
Other non-current liabilities - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Oct. 24, 2019 | Dec. 31, 2016 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Non-current trade payables | $ 890,000 | $ 851,000 | ||||||
Trade payables | 16,205,000 | 15,701,000 | ||||||
Deferred tax liabilities | 20,000 | 19,000 | ||||||
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 | |||||||
Contract liabilities | 254,000 | 2,397,000 | ||||||
Contract liabilities | 9,266,000 | 13,145,000 | ||||||
Acquired intangible assets | ||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Trade payables | 1,916,000 | |||||||
Payment period | 27 months | |||||||
Non-current trade payables | 202,000 | |||||||
Israeli Technology Company | ||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Non-current trade payables | 688,000 | 607,000 | ||||||
Remaining amount to be paid | 1,430,000 | |||||||
5G new product development | ||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Trade payables | 289,000 | $ 1,139,000 | ||||||
Non-current trade payables | 244,000 | |||||||
Trade payables | 707,000 | |||||||
Development services | ||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Deferred tax liabilities | 20,000 | |||||||
Recognized revenues | 4,500,000 | |||||||
Other revenue | 1,390,000 | |||||||
Contract liability | 3,259,000 | |||||||
Current contract liability | 3,005,000 | |||||||
Non-current contract liability | $ 254,000 | |||||||
License and development services agreement | ||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Recognized as revenue | 5,566,000 | $ 5,565,000 | ||||||
Interest expenses on upfront payment | 1,100,000 | 1,809,000 | ||||||
Net remaining contract liability | 5,936,000 | |||||||
Contract liabilities | 254,000 | 2,343,000 | ||||||
Deferred revenue | ||||||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||||||
Recognized as revenue | 243,000 | $ 243,000 | ||||||
Contract liabilities | 0 | 54,000 | $ 1,940,000 | |||||
Contract liabilities recognition term | 4 years | |||||||
Contract liabilities | $ 81,000 | $ 323,000 |
Foreign currency risk and fai_3
Foreign currency risk and fair value of financial instruments - Narrative (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Net gain (loss) on cash flow hedge | $ (92,000) | $ (58,000) | ||
Gain (loss) transferred from other comprehensive income to the statement of operations | 49,000 | (150) | ||
Cash and cash equivalents | 3,783,000 | $ 17,581,000 | $ 7,574,000 | $ 14,098,000 |
Principal amount | 16,590,000 | 25,444,000 | ||
Long-term investments, debt-based mutual funds | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Fair value of asset | 374,000 | 386,000 | ||
Currencies other than US dollar | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | $ 1,531,000 | $ 339,000 | ||
Foreign currency risk | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Reasonably possible change in risk variable, percent | 10.00% | |||
Impact of change in the corresponding risk variable on operating expenses | $ 3,100,000 | |||
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 | 91.00% | |||
Foreign currency risk | Euro denominated accounts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Percentage of operating expenses | 62.00% |
Foreign currency risk and fai_4
Foreign currency risk and fair value of financial instruments - Schedule of Present Fair Values of Derivative Financial Instruments (Details) - Cash flow hedge - Financial instruments at fair value through other comprehensive income - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure of financial liabilities [line items] | ||
Notional Amount | 1,250 | 2,250 |
Fair value of liability | $ (5) | $ 84 |
Forward contracts | ||
Disclosure of financial liabilities [line items] | ||
Notional Amount | 1,250 | 2,250 |
Fair value of liability | $ (5) | $ 84 |
Contingencies (Details)
Contingencies (Details) | Dec. 31, 2020USD ($) |
Other Provisions, Contingent Liabilities And Contingent Assets Explanatory [Abstract] | |
Settlement amount | $ 2,750,000 |
Payments above limit | $ 700,000 |
Related party disclosures - Nar
Related party disclosures - Narrative (Details) | Mar. 05, 2021USD ($) | Mar. 05, 2021EUR (€) | May 15, 2020USD ($) | Aug. 31, 2019USD ($) | May 31, 2020USD ($) | Jun. 30, 2021USD ($) | Mar. 05, 2021EUR (€) | Sep. 30, 2019USD ($) | May 31, 2019USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2015USD ($) |
Disclosure of transactions between related parties [line items] | |||||||||||
Conversion of convertible debts (Note 15) | $ 2,200,000 | $ 2,200,000 | $ 17,672,000 | ||||||||
Affiliate of Nokomis Capital, L.L.C. | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Share capital of the Company | 9.90% | ||||||||||
Research Project Financing, BPI France | Government grant advances and loans | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Notional amount | $ 6,673,000 | € 5,615,000 | |||||||||
Research Project Financing, BPI France | First Instalment | Government grant advances and loans | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Proceeds received from long-term projects | 1,670,000 | € 1,404,000 | |||||||||
Research Project Financing, BPI France | Second Instalment | Government grant advances and loans | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Proceeds received from long-term projects | 3,337,000 | 2,808,000 | |||||||||
Research Project Financing, BPI France | Third Instalment | Government grant advances and loans | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Proceeds received from long-term projects | $ 1,667,000 | € 1,403,000 | |||||||||
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 | $ 4,700,000 | ||||||||||
2016 convertible notes | Affiliate of Nokomis Capital, L.L.C. | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Notional amount | $ 6,000,000 | ||||||||||
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 | Affiliate of Nokomis Capital, L.L.C. | |||||||||||
Disclosure of transactions between related parties [line items] | |||||||||||
Notional amount | $ 5,000,000 |