Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 26, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | IOTS | |
Entity Registrant Name | ADESTO TECHNOLOGIES CORP | |
Entity Central Index Key | 1,395,848 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 21,138,980 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | ||
Current assets: | ||||
Cash and cash equivalents | $ 30,508 | $ 19,719 | [1] | |
Accounts receivable, net | 8,810 | 6,111 | [1] | |
Inventories | 4,263 | 5,182 | [1] | |
Prepaid expenses | 348 | 462 | [1] | |
Other current assets | 103 | 105 | [1] | |
Total current assets | 44,032 | 31,579 | [1] | |
Property and equipment, net | 6,325 | 5,962 | [1] | |
Intangible assets, net | 7,397 | 8,324 | [1] | |
Other non-current assets | 607 | 296 | [1] | |
Goodwill | 22 | 22 | [1] | |
Total assets | 58,383 | 46,183 | [1] | |
Current liabilities: | ||||
Accounts payable | 5,907 | 5,167 | [1] | |
Accrued compensation and benefits | 2,132 | 1,599 | [1] | |
Accrued expenses and other current liabilities | 1,946 | 2,176 | [1] | |
Term loan, current | [1] | 6,466 | ||
Total current liabilities | 9,985 | 15,408 | [1] | |
Line of credit | 2,000 | 1,807 | [1] | |
Term loan, non-current | 11,396 | 9,775 | [1] | |
Deferred rent, non-current | 2,511 | 2,826 | [1] | |
Deferred tax liability, non-current | 2 | 2 | [1] | |
Total liabilities | 25,894 | 29,818 | [1] | |
Commitments and contingencies (See Note 7) | [1] | |||
Stockholders' equity: | ||||
Preferred stock, $0.0001 par value, 5,000,000 shares authorized as of September 30, 2017 and December 31, 2016; no shares issued and outstanding as of September 30, 2017 and December 31, 2016 | [1] | |||
Common stock, $0.0001 par value, 100,000,000 shares authorized; 21,121,497 and 15,494,308 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 2 | 2 | [1] | |
Additional paid-in capital | 132,467 | 110,749 | [1] | |
Accumulated other comprehensive loss | (301) | (230) | [1] | |
Accumulated deficit | (99,679) | (94,156) | [1] | |
Total stockholders' equity | 32,489 | 16,365 | [1] | |
Total liabilities and stockholders' equity | $ 58,383 | $ 46,183 | [1] | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 | [1] |
Statement Of Financial Position [Abstract] | |||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 21,121,497 | 15,494,308 | |
Common stock, shares outstanding | 21,121,497 | 15,494,308 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 15,239 | $ 11,180 | $ 39,958 | $ 31,638 |
Cost of revenue | 7,773 | 5,803 | 20,215 | 16,531 |
Gross profit | 7,466 | 5,377 | 19,743 | 15,107 |
Operating expenses: | ||||
Research and development | 3,606 | 4,390 | 10,653 | 12,527 |
Sales and marketing | 2,897 | 2,870 | 8,408 | 8,315 |
General and administrative | 1,761 | 1,586 | 5,569 | 4,984 |
Gain from settlement with former foundry supplier | (1,962) | |||
Total operating expenses | 8,264 | 8,846 | 24,630 | 23,864 |
Loss from operations | (798) | (3,469) | (4,887) | (8,757) |
Other income (expense): | ||||
Interest expense, net | (170) | (576) | (581) | (1,058) |
Other income (expense), net | (12) | (18) | 2 | (29) |
Total other income (expense), net | (182) | (594) | (579) | (1,087) |
Loss before provision for income taxes | (980) | (4,063) | (5,466) | (9,844) |
Provision for income taxes | 17 | 15 | 57 | 46 |
Net loss | $ (997) | $ (4,078) | $ (5,523) | $ (9,890) |
Net loss per share | ||||
Basic and diluted | $ (0.05) | $ (0.27) | $ (0.31) | $ (0.66) |
Weighted average number of shares used in computing net loss per share | ||||
Basic and diluted | 21,058,635 | 15,034,475 | 17,701,230 | 14,997,417 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (997,000) | $ (4,078,000) | $ (5,523,000) | $ (9,890,000) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustment | (20,000) | (19,000) | (71,000) | (36,000) |
Comprehensive loss | $ (1,017,000) | $ (4,097,000) | $ (5,594,000) | $ (9,926,000) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Cash flows from operating activities: | |||
Net loss | $ (5,523) | $ (9,890) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Stock-based compensation expense | 2,873 | 2,508 | |
Depreciation and amortization | 1,004 | 684 | |
Amortization of intangible assets | 927 | 927 | |
Amortization of debt discount | 64 | 606 | |
Deferred income taxes | 1 | ||
Gain from settlement with former foundry supplier | (1,962) | ||
Changes in assets and liabilities: | |||
Accounts receivable | (2,699) | 1,528 | |
Inventories | 919 | (539) | |
Prepaid expenses and other current assets | 116 | 619 | |
Other non-current assets | (311) | ||
Accounts payable | 1,426 | (1,037) | |
Accrued compensation and benefits | 533 | 448 | |
Accrued expenses and other current liabilities | (230) | 746 | |
Deferred rent | (315) | ||
Net cash used in operating activities | (1,216) | (5,361) | |
Cash flows from investing activities: | |||
Acquisition of property and equipment | (2,054) | (2,358) | |
Net cash used in investing activities | (2,054) | (2,358) | |
Cash flows from financing activities: | |||
Proceeds from public offering, net of underwriting discounts and commissions | 18,363 | ||
Proceeds from exercise of stock options | 639 | 238 | |
Tax withholdings related to net share settlement of restricted stock units | (157) | ||
Proceeds from revolving line of credit | 27,427 | 2,000 | |
Payments on revolving line of credit | (27,234) | ||
Proceeds from term loan, net of fees | 17,825 | ||
Payments on term loan | (4,909) | (14,000) | |
Net cash provided by financing activities | 14,129 | 6,063 | |
Effect of exchange rates on cash and equivalents | (70) | (56) | |
Net increase (decrease) in cash and cash equivalents | 10,789 | (1,712) | |
Cash and cash equivalents - beginning of period | 19,719 | [1] | 23,089 |
Cash and cash equivalents - end of period | 30,508 | 21,377 | |
Supplemental disclosures of other cash flow information: | |||
Cash paid for interest expense | 560 | 494 | |
Supplemental disclosures of non-cash investing information: | |||
Purchase of property and equipment included in accounts payable | $ 347 | $ 1,123 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies. | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies. | Note 1. Organization and Summary of Significant Accounting Policies. Organization and Nature of Operations. Adesto Technologies Corporation (together with its subsidiaries; “Adesto”, “we”, “our”, “us” or the “Company”) was incorporated in the state of California in January 2006 and reincorporated in Delaware in October 2015. We are a leading provider of application-specific and ultra-low power non-volatile memory (“NVM”) products. Our corporate headquarters are located in Santa Clara, California. On September 28, 2012, we purchased certain flash memory product assets from Atmel Corporation and our financial results include the operating results of those assets from the date of acquisition. Basis of Presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP to complete annual financial statements. In the opinion of our management, all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, for any other interim period or for any other future year. The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date, but does not include all of the disclosures required by U.S. GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 24, 2017. The condensed consolidated financial statements include the results of our operations, and the operations of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. There have been no material changes to our significant accounting policies described in Note 1, Organization and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2016 that have had a material impact on our condensed consolidated financial statements and related notes, except as described below. Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, we evaluate those estimates, including those related to allowances for doubtful accounts, reserves for sales, warranty accrual, inventory write-downs, valuation of long-lived assets, including property and equipment and identifiable intangible assets and goodwill, loss on purchase commitments, valuation of deferred taxes and contingencies. In addition, we use assumptions when employing the Black-Scholes option-pricing model to calculate the fair value of stock options granted and Monte Carlo simulation techniques to value certain restricted stock units with performance-based vesting conditions. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results could differ from these estimates. Revenue Recognition and Accounts Receivable Allowances. We recognize revenue from product sales when persuasive evidence of an arrangement exists, the selling price is fixed or determinable, transfer of title occurs, and the collectibility of the resulting receivable is reasonably assured. Due to the historical immaterial level of product returns under warranty, we do not record a reserve for estimated returns under warranty at the time of revenue recognition. Generally, we meet product sale revenue recognition conditions upon shipment because, in most cases, title and risk of loss passes to the customer at that time. In addition, we estimate and record provisions for future returns and other charges against revenue at the time of shipment, consistent with the terms of sale. We sell products to distributors at the price listed in our distributor price book. At the time of sale, we record a sales reserve for ship from stock and debits (“SSDs”), stock rotation rights and any special programs approved by management. We offset the sales reserve against recorded revenues, producing the revenue amount reported in our condensed consolidated statements of operations. The market price for our products can differ significantly from the book price at which we sold the product to the distributor. When the market price of a particular distributor’s sales opportunity to their customers would result in low or negative margins for the distributor, as compared to our original book price, we negotiate SSDs with the distributor. Management analyzes our SSD history to develop current SSD rates that form the basis of the SSD revenue reserve recorded each period. We obtain the historical SSD rates from the distributor’s records and our internal records. We typically grant payment terms of between 30 and 60 days to our customers. Our customers generally pay within those terms. Distributors are invoiced for shipments at listed book price. When the distributors pay the invoice, they may claim debits for SSDs previously authorized by us when appropriate. Once claimed, we process the requests against prior authorizations and adjust reserves previously established for that customer. The revenue we record for sales to our distributors is net of estimated provisions for these programs. Determining net revenue requires significant judgments and estimates on our part. We base our estimates on historical experience rates, the levels of inventory held by our distributors, current trends and other related factors. Because of the inherent nature of estimates, there is a risk actual amounts may differ materially from our estimates. Our consolidated financial condition and operating results depend on our ability to make reliable estimates. We believe that such estimates are reasonable. We also monitor collectibility of accounts receivable primarily through review of our accounts receivable aging. When facts and circumstances indicate the collection of specific amounts or from specific customers is at risk, we assess the impact on amounts recorded for bad debts and, if necessary, record a charge in the period such determination is made. As of September 30, 2017 and December 31, 2016, there was no allowance for doubtful accounts. Product Warranty. Our products are sold with a limited warranty for a period of one year, warranting that the product conforms to specifications and is free from material defects in design, materials and workmanship. To date, we have had insignificant returns of any defective production parts. During the year ended December 31, 2015, we recorded $250,000 for a specific potential warranty claim. As of September 30, 2017 and December 31, 2016, approximately $226,000 and $41,000, respectively, has been incurred relating to this potential warranty claim. As of September 30, 2017 and December 31, 2016, the warranty accrual was $24,000 and $209,000, respectively, and is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. Foreign Currency Translation. The functional currency of our foreign subsidiaries is the local currency. In consolidation, we translate assets and liabilities at exchange rates in effect at the consolidated balance sheet date. We translate revenue and expense accounts at the average exchange rates during the period in which the transaction takes place. Net losses from foreign currency translation of assets and liabilities were $20,000 and $19,000 for the three months ended September 30, 2017 and 2016, respectively, and $71,000, and $36,000 for the nine months ended September 30, 2017 and 2016, respectively, and are included in the cumulative translation adjustment component of accumulated other comprehensive loss, net of tax, a component of stockholders’ equity. Net losses arising from transactions denominated in currencies other than the functional currency were $7,000 and $18,000 for the three months ended September 30, 2017 and 2016, respectively, and a $1,000 gain and a $30,000 loss for the nine months ended September 30, 2017 and 2016, respectively, and are included in other income (expense), net in the condensed consolidated statements of operations. Concentration of Risk. Our products are primarily manufactured, assembled and tested by third-party foundries and other contractors in Asia and we are heavily dependent on a single foundry in Taiwan for the manufacture of wafers and a single contractor in the Philippines for assembly and testing of our products. We do not have long-term agreements with either of these suppliers. A significant disruption in the operations of these parties would adversely impact the production of our products for a substantial period of time, which could have a material adverse effect on our business, financial condition, operating results and cash flows. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivables. We place substantially all of our cash and cash equivalents on deposit with a reputable, high credit quality financial institution in the United States of America. We believe that the bank that holds substantially all of our cash and cash equivalents is financially sound and, accordingly, subject to minimal credit risk. Deposits held with the bank may exceed the amount of insurance provided on such deposits. We generally do not require collateral or other security in support of accounts receivable. We periodically review the need for an allowance for doubtful accounts by considering factors such as historical experience, credit quality, the age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. As a result of our favorable collection experience and customer concentration, there was no allowance for doubtful accounts as of September 30, 2017 and December 31, 2016. Customer concentrations as a percentage of revenue, net were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Customer A 13 % 12 % 16 % 14 % Customer B 12 % * 10 % 11 % Customer C 13 % 10 % 12 % 10 % * less than 10% Customer concentrations as a percentage of gross accounts receivable were as follows: September 30, September 30, 2017 2016 Customer A 23 % 16 % Customer B 17 % 13 % Customer C * 12 % * less than 10% Recent Accounting Pronouncements. In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU 2016-02, Leases, Topic 842. This ASU requires lease assets and lease liabilities arising from leases, including operating leases, to be recognized on the balance sheet, ASU 2016-02 will become effective for us on January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendment to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update). The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. |
Balance Sheet Components.
Balance Sheet Components. | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components. | Note 2. Balance Sheet Components. Accounts Receivable, Net. Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2017 2016 Accounts receivable $ 12,391 $ 8,800 Allowance for SSDs, price protection, rights of return and other activities (3,581 ) (2,689 ) Total accounts receivable, net $ 8,810 $ 6,111 Inventories. Inventories consisted of the following (in thousands): September 30, December 31, 2017 2016 Raw materials $ 1,018 $ 212 Work-in-process 2,299 3,793 Finished goods 946 1,177 Total inventories $ 4,263 $ 5,182 For the three months ended September 30, 2017 and 2016, we realized a benefit of $0.4 million and $0.1 million, respectively, from the sales of previously reserved products. For the nine months ended September 30, 2017 and 2016, we realized a benefit of $1.0 million and $0.8 million, respectively, from the sales of previously reserved products. Inventory write-downs were primarily associated with products built in excess of customer demand which resulted in excess inventory levels, legacy products for which no demand exists and lower of cost or net realizable value write-downs associated with CBRAM products for which costs exceeded net realizable value. Property and Equipment, Net. Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2017 2016 Machinery and equipment $ 8,561 $ 7,351 Furniture and fixtures 83 77 Leasehold improvements 4,252 4,252 Computer software 675 668 Construction in progress 1,301 1,098 Property and equipment, at cost 14,872 13,446 Accumulated depreciation and amortization (8,547 ) (7,484 ) Property and equipment, net $ 6,325 $ 5,962 The Company incurs costs for the fabrication of masks used by its foundry partners to manufacture its products. Beginning the first fiscal quarter of 2017, the Company Depreciation and amortization expense of property and equipment for the three and nine months ended September 30, 2017 was $0.4 million and $1.0 million, respectively. Depreciation and amortization expense of property and equipment for the three and nine months ended September, 30, 2016 was $0.3 million and $0.7 million, respectively. Accrued Expenses and Other Current Liabilities. Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2017 2016 Accrued sales commission payable $ 329 $ 366 Accrued manufacturing expenses 228 149 Deferred rent, current portion 413 388 Liabilities to certain customers 474 663 Product warranty 24 209 Other accrued liabilities 478 401 Total accrued expenses and other current liabilities $ 1,946 $ 2,176 |
Fair Value Measurements.
Fair Value Measurements. | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements. | Note 3. Fair Value Measurements. Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1. Quoted prices in active markets for identical assets or liabilities. Level 2. Quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices which are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3. Unobservable inputs which are supported by little or no market activity and which are significant to the fair value of the assets or liabilities. Financial assets measured at fair value on a recurring basis were as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) As of September 30, 2017 Assets: Money market funds $ 11,497 $ — $ — $ 11,497 As of December 31, 2016 Assets: Money market funds $ 16,540 $ — $ — $ 16,540 As of September 30, 2017 and December 31, 2016, we had no financial liabilities measured at fair value on a recurring basis. |
Intangible Assets, net.
Intangible Assets, net. | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net. | Note 4. Intangible Assets, net. In 2012, in connection with our purchase of the serial flash memory product line assets from Atmel Corporation, we recorded $16.4 million of intangible assets. Intangible assets, net were as follows (in thousands): September 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,282 $ 2,142 $ 2,140 Customer relationships 9,011 3,754 5,257 Customer backlog 2,779 2,779 — Non-compete agreement 282 282 — Total intangible assets subject to amortization $ 16,354 $ 8,957 $ 7,397 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,282 $ 1,820 $ 2,462 Customer relationships 9,011 3,191 5,820 Customer backlog 2,779 2,779 — Non-compete agreement 282 240 42 Total intangible assets subject to amortization $ 16,354 $ 8,030 $ 8,324 We recorded amortization expense related to the acquisition-related intangible assets as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating expense category: Research and development $ 121 $ 121 $ 364 $ 363 Sales and marketing 188 188 563 564 Total $ 309 $ 309 $ 927 $ 927 The estimated future amortization expense of acquisition-related intangible assets subject to amortization after September 30, 2017 is as follows (in thousands): Year Ended December 31, 2017 (remaining 3 months) $ 295 2018 1,179 2019 1,179 2020 1,179 2021 1,179 Thereafter 2,386 Total $ 7,397 |
Borrowings.
Borrowings. | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings. | Note 5. Borrowings. Opus Bank Term Loan. In April 2015, we entered into a three-year $15.0 million credit agreement, or the term loan facility. The agreement provided for a senior secured term loan facility, in an aggregate principal amount of up to $15.0 million to be used for general corporate purposes including working capital, to repay certain indebtedness and for capital expenditures and other expenses. Interest accrued on outstanding borrowings at a rate equal to (a) the higher of (i) the prime rate (as publicly announced from time to time by the Wall Street Journal) and (ii) 3.25% plus (b) (i) 1.00% if our cash equivalents are greater than 125% of the outstanding principal of our borrowings under the term loan facility, or (ii) 2.00% if our cash and cash equivalents are less than or equal to 125% of such borrowings. Indebtedness we incurred under this agreement was collateralized by substantially all of our assets and the agreement contained financial covenants requiring us to maintain a monthly asset coverage ratio after September 30, 2015 of not less than 1.10 to 1.00, and quarterly adjusted EBITDA (measured on a trailing three-month basis) of $1 through September 30, 2016 and increasing to higher levels thereafter. Under the agreement, the quarterly EBITDA covenant was not applicable if the asset coverage ratio is met at all times during any particular quarter. The agreement contained customary affirmative and negative covenants, including covenants that limited or restricted our ability to, among other things, incur additional indebtedness, grant liens, make investments, repurchase stock, pay dividends, transfer assets, merge or consolidate and make acquisitions. Upon an occurrence of an event of default, we could have been required to pay interest on all outstanding obligations under the agreement at a rate of 5% above the otherwise applicable interest rate, and the lender may accelerate our obligations under the agreement. Borrowings of $14.0 million under this facility were repaid in full in July 2016. In connection with the term loan facility, Opus Bank received a warrant to purchase 31,897 shares of Series E convertible preferred stock. Upon the completion of our initial public offering (“IPO”) on October 30, 2015 the preferred stock warrants were converted into 315,282 of our common stock warrants. In addition, we paid financing costs of $0.1 million. The financing costs and the value of the warrant, $1.0 million, were recorded as a debt discount and were being amortized over the life of the agreement. Amortization of debt discount was $0.2 million for the six months ended June 30, 2016. In connection with the repayment of this facility in July 2016, the remaining unamortized debt discount of $0.4 million was recorded as interest expense in the condensed consolidated statements of operations. Western Alliance Bank Term Loan. The Company is a party to that certain Business Financing Agreement dated July 7, 2016, by and between Western Alliance Bank and the Company, as amended (“Credit Facility”). The Credit Facility originally provided for (i) a term loan of up to $18.0 million (the “Term Loan”) and (ii) a revolving credit line advance (the “Line of Credit”) in the aggregate amount of the lower of (x) $2.0 million and (y) 80% of certain of the Company’s receivables. Prior to the Amendment (as defined below), the Term Loan bore interest at a rate per annum equal to the greater of the prime rate or 3.5%, plus 0.75% (5.00% on September 30, 2017), and was scheduled to mature in June 2019. Prior to the Amendment, the Line of Credit bore interest at a rate per annum equal to the greater of the prime rate or 3.5% plus 0.50% (4.75% on September 30, 2017), and was scheduled to mature in July 2018.Prior to the Amendment, we made interest-only payments on the Term Loan from July 2016 through September 2016 and began making interest payments and principal payments in 33 equal monthly installments starting October 2016. Prior to the Amendment, the Credit Facility provided that any indebtedness we incurred thereunder was collateralized by substantially all assets of the Company and any domestic subsidiaries, subject to certain customary exceptions. We paid a facility fee of $150,000 as well as a $25,000 diligence fee upon entry into the Credit Facility and an additional $10,000 on July 7, 2017. These fees have been recorded as a debt discount and are being amortized over the life of the agreement. During the nine months ended September 30, 2017, amortization of debt discount was $64,000 and the unamortized debt discount was $59,000 as of September 30, 2017. The Credit Facility contains customary representations and warranties and affirmative and negative covenants. Among other negative covenants, prior to the Amendment, the Credit Facility provided that we may not (i) permit the ratio of the balance of unrestricted cash deposited at the financial institution, plus eligible receivables, net of reserve to the total amounts owed with respect to advances under the revolving credit line to be less than 1.50 to 1.00 and (ii) permit cash held at the financial institution in a deposit account to be less than 100% of the term loan outstanding. Upon an occurrence of an event of default, under the Credit Facility we could be required to pay interest on all outstanding obligations under the agreement at a rate of 5% above the otherwise applicable interest rate, and the lender may accelerate our obligations under the agreement. As of September 30, 2017, we were in compliance with all financial covenants and restrictions. On September 29, 2017, we amended the Credit Facility by entering into that certain Second Business Financing Modification Agreement, dated September 29, 2017 (the “Amendment”) with Western Alliance Bank. The Amendment extended the maturity dates of the Line of Credit and the Term Loan to July 2019 and September 2021, respectively, from July 2018 and June 2019, respectively. In addition, the Amendment increased the amount available under the Line of Credit in the aggregate amount to $5.0 million. The Amendment also decreased the interest rates under the Line of Credit and the Term Loan and changed the payment schedule under the Term Loan. Under the Agreement, we will make interest-only payments on the Term Loan from October 10, 2017 and on the 10 th th Under the Amendment, we have agreed to modified and additional negative covenants, requiring us to maintain a ratio of at least 1.25 to 1.00 with respect to either of the following: (x) the sum of our cash and certain receivables to our indebtedness under the Credit Facility; or (y) our Adjusted EBITDA (as defined in the Amendment), less certain capital expenditures, to the sum of (a) all principal payments and interest expense that we would have owed to the Lender if the Term Loan’s amortization were to start on September 29, 2017, all measured on a trailing 4-quarter basis, plus (b) all principal payments and interest expense on any of our other debt. The Amendment also subjects us to the requirement that our quarterly revenues shall not negatively deviate more than 25% from the projections provided to Western Alliance Bank in accordance with the Credit Facility. Outstanding borrowings consisted of the following (in thousands): September 30, December 31, 2017 2016 Term loan, current $ — $ 6,466 Term loan, non-current 11,396 9,775 Line of credit 2,000 1,807 Total $ 13,396 $ 18,048 Future repayments on outstanding borrowings (excluding unamortized discount of $59,000 as of September 30, 2017) are as follows (in thousands): Year ending December 31, 2017 (remaining 3 months) $ — 2018 1,000 2019 6,000 2020 4,000 2021 2,455 $ 13,455 Interest expense incurred under our borrowings was $0.2 million and $0.6 million for the three and nine months ended September 30, 2017, respectively. Interest expense incurred under our borrowings was $0.6 million and $1.1 million for the three and nine months ended September 30, 2016, respectively. |
Segment Information.
Segment Information. | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information. | Note 6. Segment Information. We operate in one business segment, application-specific and feature-rich, ultra-low power NVM products. Our chief decision-maker, the President and Chief Executive Officer, evaluates our performance based on company-wide consolidated results. Revenue is evaluated based on product category and by geographic region. Product revenue from customers is designated based on the geographic region to which the product is delivered. Revenue by geographic region was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 United States $ 3,331 $ 1,873 $ 8,853 $ 4,780 Rest of Americas 58 64 189 335 Europe 2,044 1,466 6,054 4,313 Asia Pacific 9,729 7,730 24,540 21,979 Rest of world 77 47 322 231 Total $ 15,239 $ 11,180 $ 39,958 $ 31,638 Long-lived assets are attributed to the geographic region were they are located. Long-lived assets by geographic region were as follows (in thousands): September 30, December 31, 2017 2016 United States $ 5,646 $ 5,489 Asia Pacific 679 472 Europe — 1 Total property and equipment, net $ 6,325 $ 5,962 |
Commitments and Contingencies.
Commitments and Contingencies. | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies. | Note 7. Commitments and Contingencies. Operating Leases. The Company leases office facilities under various non-cancelable operating lease agreements. Certain lease agreements contain free or escalating rent payment provisions. The Company recognizes rent expense under such leases on a straight-line basis over the term of the lease with the difference between the expense and the payments recorded as deferred rent on the condensed consolidated balance sheets. Any reimbursements by the landlord for tenant improvements are considered lease incentives, the balance of which is recorded as a lease incentive obligation within deferred rent on the condensed consolidated balance sheets, and amortized as a reduction of rent expense over the life of the lease. Lease renewal periods are considered on a lease-by-lease basis in determining the lease term. On November 2, 2015, the Company extended the lease for its headquarters by six months to July 2016 by entering into that certain Amendment to Commercial Sublease (“Amendment”), dated November 2, 2015, between the Company and eGain Corporation. The Amendment provides for a base rent during the extension period of $47,000 per month. Subsequently, we extended the lease to August 31, 2016. Additionally, on November 2, 2015, the Company entered into a lease with Peterson Ridge LLC pursuant to which the Company leased a new headquarters facility, consisting of an aggregate of approximately 34,000 square feet of space in Santa Clara, California. The initial term of the lease commenced on November 2, 2015 and is scheduled to end on July 31, 2023 and may be extended, at the Company’s option, for an additional five-year period following the initial lease term. Pursuant to the lease, monthly base rental payments due under the lease are approximately $93,000 per month between August 1, 2016 and February 27, 2017, with annual increases of approximately 3% thereafter. The Company must also pay for certain other operating costs under the lease, including operating expenses, taxes, assessments, insurance, utilities, securities and property management fees. Peterson Ridge LLC is obligated to reimburse the Company for up to approximately $2.5 million of the Company’s out-of-pocket costs associated with any tenant improvements, as defined in the lease. The Company was reimbursed for this amount during the year ended December 31, 2016. As of September 30, 2017, the Company recorded a lease incentive obligation of $2.1 million in deferred rent on the condensed consolidated balance sheet. Rent expense under operating leases was $0.3 million and $0.8 million for the three and nine months ended September 30, 2017, respectively. Rent expense under operating leases was $0.4 million and $1.5 million for the three and nine months ended September 30, 2016, respectively. Total Remaining 2017 2018 2019 2020 2021 Thereafter (in thousands) Operating leases $ 7,390 $ 302 $ 1,210 $ 1,223 $ 1,249 $ 1,287 $ 2,119 Purchase Commitments. As of September 30, 2017, we had purchase commitments with our third-party foundries of $4.0 million due within one year, $0.6 million for a licensing and development agreement, and $7.9 million in conjunction with an agreement with TowerJazz Panasonic Semiconductor Company. Litigation. We may be subject to legal proceedings, claims and litigation, including intellectual property litigation, arising in the ordinary course of business. Such matters are subject to many uncertainties and outcomes and are not predictable with assurance. We accrue amounts that we believe are adequate to address any liabilities related to legal proceedings and other loss contingencies that we believe will result in a probable loss that is reasonably estimable. Indemnification. During the normal course of business, we may make certain indemnities, commitments and guarantees which may include intellectual property indemnities to certain of our customers in connection with the sales of our products and indemnities for liabilities associated with the infringement of other parties’ technology based upon our products. Our exposure under these indemnification provisions is generally limited to the total amount paid by a customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in such capacities. We have not recorded any liability for these indemnities, commitments and guarantees in the accompanying condensed consolidated balance sheets. Where necessary, we accrue for losses for any known contingent liabilities, including those that may arise from indemnification provisions, when future payment is probable. |
Common Stock, Common Stock Warr
Common Stock, Common Stock Warrants and Stock Option Plan. | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Common Stock, Common Stock Warrants and Stock Option Plan. | Note 8. Common Stock, Common Stock Warrants and Stock Option Plan. Common Stock. We are authorized to issue 100,000,000 shares of common stock with $0.0001 par value per share as of September 30, 2017 and December 31, 2016. Each holder of common stock is entitled to one vote per share. As of September 30, 2017, no dividends have been declared by the Board of Directors, however, the holders of common stock are also entitled to receive dividends, when and if declared by our Board of Directors. We completed a follow-on offering of our common stock in June 2017. We sold 5,000,000 shares, including 625,000 shares upon exercise of the underwriters’ option to purchase additional shares. The shares were sold at a public offering price of $4.00 per share for net proceeds of $18.4 million to us, after deducting underwriting discounts and commissions and offering expenses. Common Stock Reserved for Future Issuance. As of September 30, 2017 and December 31, 2016, we had reserved shares of common stock for future issuances as follows: September 30, December 31, 2017 2016 Warrants to purchase common stock 404,136 411,514 Stock option plan: Options outstanding 1,592,551 991,895 Restricted stock units outstanding 635,161 490,954 Shares available for future grants/RSU grants 602,463 1,275,685 Shares available for ESPP 275,587 231,355 Total 3,509,898 3,401,403 Common Stock Warrants. The following common stock warrants were outstanding as of September 30, 2017 and December 31, 2016 and were the result of a conversion of preferred stock warrants upon the completion of our IPO on October 30, 2015. Total amount of securities issuable under the outstanding warrants Exercise Price Issuance Date Expiration Date 74,141 $ 30.35 2012-2013 2019 329,995 $ 2.38 2014-2015 2022-2024 404,136 Common stock warrants are exercisable at the option of the holder any time after the date of issuance into shares of our common stock. The aggregate amount of shares of common stock that would be issued is determined by dividing the exercisable price by the conversion price applicable on the date of conversion multiplied by the number of warrants exercised. Employee Benefit Plans. 2007 Equity Incentive Plan. In 2007, our Board of Directors and shareholders approved the 2007 Equity Incentive Plan (the “2007 Plan”) under which 272,727 shares of common stock were reserved and available for the issuance of stock options and restricted stock to eligible participants. The 2007 Plan was subsequently amended to increase the number of shares of common stock reserved for issuance under the 2007 Plan to 787,878 and during the year ended December 31, 2015, the number of shares reserved for issuance under the 2007 Plan was increased to 2,651,515. Options and restricted stock awards were granted at a price per share not less than the 85% of the fair value at the date of grant or award, respectively. Restricted stock awarded to persons controlling more than 10% of our stock were granted at a price per share not less than the 100% of the fair value at the date of the award. Options that were granted to new employees generally vest over a four-year period with 25% vesting at the end of one year and the remaining to vest monthly thereafter, while options that were granted to existing employees generally vest over a four-year period. Options granted generally are exercisable up to 10 years from the date of grant. As of October 26, 2015, no shares were available for grant under the 2007 Plan and all outstanding options would continue to be governed and remain outstanding in accordance with their existing terms under the 2007 Plan. In addition, any shares subject to outstanding awards under the 2007 Plan that are issuable upon the exercise of options that expire or become unexercisable for any reason without having been exercised in full will be available for future grant and issuance under the 2015 Plan (as defined below). 2015 Equity Incentive Plan. In September 2015, our Board of Directors adopted, and in October 2015 our stockholders approved, our 2015 Equity Incentive Plan. The 2015 Equity Incentive Plan became effective on the date immediately prior to the date of our IPO. As a result, 1,813,272 shares of common stock previously reserved but unissued under the 2007 Plan on the effective date of the 2015 Equity Incentive Plan became reserved for issuance under our 2015 Equity Incentive Plan, and we ceased granting awards under our 2007 Plan. The number of shares reserved for issuance under our 2015 Equity Incentive Plan will increase automatically on the first day of January of each of 2016 through 2025 by the number of shares equal to 4% of the total outstanding shares of our common stock as of the immediately preceding December 31. However, our Board of Directors may reduce the amount of the increase in any particular year. Our 2015 Equity Incentive Plan authorizes the award of stock options, restricted stock awards, stock appreciation rights, restricted stock units (“RSUs”), performance awards and stock bonuses. No person will be eligible to receive more than 2,000,000 shares in any calendar year under our 2015 Equity Incentive Plan other than a new employee of ours, who will be eligible to receive no more than 4,000,000 shares under the plan in the calendar year in which the employee commences employment. The aggregate number of shares of our common stock that may be subject to awards granted to any one non-employee director pursuant to the 2015 Equity Incentive Plan in any calendar year shall not exceed 300,000. Our 2015 Equity Incentive Plan provides that no more than 25,000,000 shares will be issued as incentive stock options. 2015 Employee Stock Purchase Plan In September 2015, our Board of Directors adopted, and in October 2015 our stockholders approved, our 2015 Employee Stock Purchase Plan (“ESPP”). The 2015 Employee Stock Purchase Plan became effective on the date of our IPO. We reserved 150,000 shares of our common stock for issuance under our 2015 Employee Stock Purchase Plan. The number of shares reserved for issuance under our 2015 Employee Stock Purchase Plan will increase automatically on the first day of January following the first offering date by the number of shares equal to 1% of the total outstanding shares of our common stock as of the immediately preceding December 31 (rounded to the nearest whole share). However, our Board of Directors may reduce the amount of the increase in any particular year. The aggregate number of shares issued over the term of our 2015 Employee Stock Purchase Plan will not exceed 2,250,000 shares of our common stock. Under our 2015 Employee Stock Purchase Plan, eligible employees will be able to acquire shares of our common stock by accumulating funds through payroll deductions. Eligible employees will be able to select a rate of payroll deduction up to 15% of their base cash compensation. The purchase price for shares of our common stock purchased under our 2015 Employee Stock Purchase Plan will be 85% of the lesser of the fair market value of our common stock on (i) the first trading day of the applicable offering period and (ii) the last trading day of each purchase period in the applicable offering period. Except for the first offering period, each offering period will run for no more than six months, with purchases occurring every six months. The first offering period began upon the effective date of our IPO and was originally set to end on June 30, 2016. On May 25, 2016, the Board of Directors extended the initial offering period to July 31, 2016. Subsequent purchase periods will be 6 months in duration beginning on August 1, 2016. On July 29, 2016, we issued 68,392 shares of common stock in conjunction with the end date of the initial purchase period. On January 31, 2017, we issued 50,917 shares of common stock in conjunction with the end date of that purchase period. On July 31, 2017, we issued 59,794 shares of common stock in conjunction with the end of the most recent purchase period. No participant will have the right to purchase shares of our common stock in an amount that has a fair market value greater than $25,000, determined as of the first day of the applicable purchase period, for each calendar year in which that right is outstanding. In addition, no participant will be permitted to purchase more than 2,500 shares during any one purchase period or a lesser amount as determined by our compensation committee. Our 2015 Employee Stock Purchase Plan will continue until the earlier to occur of its termination by our Board of Directors, the issuance of all shares reserved for issuance under it or the tenth anniversary of its effective date. A summary of stock option and restricted stock units (including performance-based RSU) activity under the 2007 Plan and the 2015 Equity Incentive Plan is as follows: Stock Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (aggregate intrinsic value in thousands) Outstanding as of December 31, 2015 796,356 $ 2.49 6.5 $ 4,157 Granted 230,200 3.38 Exercised (13,112 ) 1.80 Canceled (21,549 ) 3.73 Outstanding as of December 31, 2016 991,895 2.68 6.3 161 Granted 809,980 4.19 Exercised (176,265 ) 1.70 Canceled (33,059 ) 4.06 Outstanding as of September 30, 2017 1,592,551 $ 3.53 7.8 $ 6,996 Options vested and expected to vest as of September 30, 2017 1,526,547 $ 3.50 7.8 $ 6,755 Options vested and exercisable as of September 30, 2017 766,120 $ 2.83 6.3 $ 3,917 Restricted Stock Units Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (aggregate intrinsic value in thousands) Outstanding as of December 31, 2015 874,508 $ 5.95 1.8 $ 6,742 Granted 69,414 4.82 — — Released (438,086 ) 5.95 — — Forfeited/expired (14,882 ) 5.70 — — Outstanding as of December 31, 2016 490,954 5.80 0.5 908 Granted 541,513 2.88 Released (371,866 ) 5.65 Forfeited/expired (25,440 ) 5.98 Outstanding as of September 30, 2017 635,161 $ 3.39 1.3 $ 4,986 |
Stock-based Compensation.
Stock-based Compensation. | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation. | Note 9. Stock-based Compensation. We record stock-based compensation based on fair value as of the grant date using the Black-Scholes option-pricing model for stock options granted and Monte Carlo simulation techniques for certain restricted stock units with performance-based vesting conditions. We recognize such costs as compensation expense on a straight-line basis over the employee’s requisite service period, which is generally four years. Our valuation assumptions for stock options are as follows: Fair value of common stock. Prior to our IPO in October 2015, we estimated the fair value of our common stock using various valuation methodologies, including valuation analyses performed by third-party valuation firms. After the IPO, we used the publicly quoted price as the fair value of our common stock. Risk-free interest rate. We base the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the options for each option group. Expected term. The expected term represents the period that our stock-based awards are expected to be outstanding. The expected term assumption is based on the simplified method in which the expected term is equal to the average of the stock-based award’s weighted-average vesting period and its contractual term. We expect to continue using the simplified method until sufficient information about historical behavior is available. Volatility. We determine volatility based on the historical stock volatilities of a group of publicly listed guideline companies over a period equal to the expected terms of the options, as we do not have sufficient trading history to determine the volatility of our common stock. Dividend yield. We have never declared or paid any cash dividend and do not currently plan to pay a cash dividend in the foreseeable future. Consequently, we used an expected dividend yield of zero. The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to determine fair value of stock options: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Volatility — — 86 % 51 % Expected dividend yield — — — — Risk-free rate — — 2.15 % 1.34 % Expected term (in years) — — 6 6 The weighted-average grant date fair value of the options granted under the 2015 Equity Incentive Plan as calculated using the Black-Scholes option-pricing model was $3.03 per share for the nine months ended September 30, 2017. No grants were made during the three months ended September 30, 2017 and 2016. On April 1, 2017, our compensation committee granted 204,220 RSUs that do not begin vesting unless certain performance goals are met. All performance goals must be met in order for the shares to begin vesting. Vesting would begin on the one-year anniversary of the grant date. These performance goals relate to a) the price performance of our common stock one year from the grant date as compared to a threshold established by our compensation committee and b) revenue, gross profit and EBITDA performance relative to plan targets for fiscal 2017 established by our compensation committee. As a result of these performance-based vesting conditions we valued these RSUs using Monte Carlo simulation techniques to establish a fair value per share of $0.81 at the time of grant. The following table presents the effects of stock-based compensation for stock options, RSUs (including performance-based RSUs), and ESPP purchase rights (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 35 $ 22 $ 86 $ 60 Research and development 373 273 937 787 Sales and marketing 239 186 621 530 General and administrative 420 398 1,229 1,131 Total $ 1,067 $ 879 $ 2,873 $ 2,508 Stock-based compensation expense capitalized to inventories was not material during the three and nine months ended September 30, 2017 and 2016. We did not realize any income tax benefit from stock option exercises in any of the periods presented due to recurring losses and valuation allowances. As of September 30, 2017, the total unrecognized compensation cost related to stock options, net of estimated forfeitures, was approximately $2.1 million, and this amount is expected to be recognized over a weighted-average period of approximately 3.1 years. As of September 30, 2017, the total unrecognized compensation cost related to RSUs (including performance-based RSUs) and ESPP purchase rights was $1.4 million and $54,000, respectively, and these amounts are expected to be recognized over 2.0 years and 0.3 years, respectively. |
Income Taxes.
Income Taxes. | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes. | Note 10. Income Taxes. We recorded an income tax provision of $17,000 and $15,000 for the three months ended September 30, 2017 and 2016, respectively, and $57,000 and $46,000 for the nine months ended September 30, 2017 and 2016, respectively. The income tax provision is comprised of estimates of current taxes due in domestic and foreign jurisdictions. The income tax provision reflects tax expense associated with state income tax, foreign taxes, uncertain tax positions and tax expense related to the recording of a deferred tax liability that results from the amortization for income tax purposes of acquisition-related goodwill. The decrease in the tax provision between 2017 and 2016 As of September 30, 2017, our deferred tax assets are fully offset by a valuation allowance except in those jurisdictions where it is determined that a valuation allowance is not required. Accounting for income taxes provides for the recognition of deferred tax assets if realization of such assets is more likely than not. Based on the weight of available evidence, which includes historical operating performance, reported cumulative net losses since inception and difficulty in accurately forecasting our future results, we provided a full valuation allowance against our net U.S. deferred tax assets. We reassess the need for our valuation allowance on a quarterly basis. If it is later determined that a portion or all of the valuation allowance is not required, it generally will be a benefit to the income tax provision in the period that such determination is made. We evaluate tax positions for recognition using a more-likely-than-not recognition threshold, and those tax positions eligible for recognition are measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon the effective settlement with a taxing authority that has full knowledge of all relevant information. We believe that we have provided adequate reserves for our income tax uncertainties in all open tax years. We do not anticipate a material change in the total amount or composition of its unrecognized tax benefits within 12 months of September 30, 2017. We file federal, state and foreign income tax returns in jurisdictions with varying statutes of limitations. Due to our net operating loss and credit carryforwards, our income tax returns generally remain subject to examination by federal, state and international authorities. |
Net Loss Per Share.
Net Loss Per Share. | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share. | Note 11. Net Loss Per Share. The following outstanding common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: Three and Nine Months Ended September 30, 2017 2016 Shares not used in computing net loss per share as considered anti-dilutive: Stock options 1,592,551 984,386 Common stock warrants 404,136 411,514 Restricted stock units 635,161 931,874 2,631,848 2,327,774 |
Related Party Transactions.
Related Party Transactions. | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 12. Related Party Transactions. The Company purchases certain wafers from one of its stockholders, Altis Semiconductor S.N.C. This stockholder was acquired in 2016 by X-FAB Silicon Foundries (“X-FAB”), resulting in X-FAB becoming one of our stockholders. We made payments of $45,000 and $82,000 to X-FAB during the three and nine months ended September 30, 2017. We made payments of $0 and $172,000 to X-FAB during the three and nine months ended September 30, 2016, respectively. As of September 30, 2017 and December 31, 2016, invoices totaling $113,000 and $195,000, respectively, were payable to X-FAB and included within accounts payable on the condensed consolidated balance sheets. |
Subsequent Events.
Subsequent Events. | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events. | Note 13. Subsequent Events. None |
Organization and Summary of S20
Organization and Summary of Significant Accounting Policies. (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Nature of Operations. | Organization and Nature of Operations. Adesto Technologies Corporation (together with its subsidiaries; “Adesto”, “we”, “our”, “us” or the “Company”) was incorporated in the state of California in January 2006 and reincorporated in Delaware in October 2015. We are a leading provider of application-specific and ultra-low power non-volatile memory (“NVM”) products. Our corporate headquarters are located in Santa Clara, California. On September 28, 2012, we purchased certain flash memory product assets from Atmel Corporation and our financial results include the operating results of those assets from the date of acquisition. |
Basis of Presentation. | Basis of Presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP to complete annual financial statements. In the opinion of our management, all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the financial position of the Company and its results of operations and cash flows for the interim periods presented have been included. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017, for any other interim period or for any other future year. The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date, but does not include all of the disclosures required by U.S. GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 24, 2017. The condensed consolidated financial statements include the results of our operations, and the operations of our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. There have been no material changes to our significant accounting policies described in Note 1, Organization and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2016 that have had a material impact on our condensed consolidated financial statements and related notes, except as described below. |
Use of Estimates. | Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amount of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. On an on-going basis, we evaluate those estimates, including those related to allowances for doubtful accounts, reserves for sales, warranty accrual, inventory write-downs, valuation of long-lived assets, including property and equipment and identifiable intangible assets and goodwill, loss on purchase commitments, valuation of deferred taxes and contingencies. In addition, we use assumptions when employing the Black-Scholes option-pricing model to calculate the fair value of stock options granted and Monte Carlo simulation techniques to value certain restricted stock units with performance-based vesting conditions. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Actual results could differ from these estimates. |
Revenue Recognition and Accounts Receivable Allowances. | Revenue Recognition and Accounts Receivable Allowances. We recognize revenue from product sales when persuasive evidence of an arrangement exists, the selling price is fixed or determinable, transfer of title occurs, and the collectibility of the resulting receivable is reasonably assured. Due to the historical immaterial level of product returns under warranty, we do not record a reserve for estimated returns under warranty at the time of revenue recognition. Generally, we meet product sale revenue recognition conditions upon shipment because, in most cases, title and risk of loss passes to the customer at that time. In addition, we estimate and record provisions for future returns and other charges against revenue at the time of shipment, consistent with the terms of sale. We sell products to distributors at the price listed in our distributor price book. At the time of sale, we record a sales reserve for ship from stock and debits (“SSDs”), stock rotation rights and any special programs approved by management. We offset the sales reserve against recorded revenues, producing the revenue amount reported in our condensed consolidated statements of operations. The market price for our products can differ significantly from the book price at which we sold the product to the distributor. When the market price of a particular distributor’s sales opportunity to their customers would result in low or negative margins for the distributor, as compared to our original book price, we negotiate SSDs with the distributor. Management analyzes our SSD history to develop current SSD rates that form the basis of the SSD revenue reserve recorded each period. We obtain the historical SSD rates from the distributor’s records and our internal records. We typically grant payment terms of between 30 and 60 days to our customers. Our customers generally pay within those terms. Distributors are invoiced for shipments at listed book price. When the distributors pay the invoice, they may claim debits for SSDs previously authorized by us when appropriate. Once claimed, we process the requests against prior authorizations and adjust reserves previously established for that customer. The revenue we record for sales to our distributors is net of estimated provisions for these programs. Determining net revenue requires significant judgments and estimates on our part. We base our estimates on historical experience rates, the levels of inventory held by our distributors, current trends and other related factors. Because of the inherent nature of estimates, there is a risk actual amounts may differ materially from our estimates. Our consolidated financial condition and operating results depend on our ability to make reliable estimates. We believe that such estimates are reasonable. We also monitor collectibility of accounts receivable primarily through review of our accounts receivable aging. When facts and circumstances indicate the collection of specific amounts or from specific customers is at risk, we assess the impact on amounts recorded for bad debts and, if necessary, record a charge in the period such determination is made. As of September 30, 2017 and December 31, 2016, there was no allowance for doubtful accounts. |
Product Warranty. | Product Warranty. Our products are sold with a limited warranty for a period of one year, warranting that the product conforms to specifications and is free from material defects in design, materials and workmanship. To date, we have had insignificant returns of any defective production parts. During the year ended December 31, 2015, we recorded $250,000 for a specific potential warranty claim. As of September 30, 2017 and December 31, 2016, approximately $226,000 and $41,000, respectively, has been incurred relating to this potential warranty claim. As of September 30, 2017 and December 31, 2016, the warranty accrual was $24,000 and $209,000, respectively, and is included in accrued expenses and other current liabilities on the condensed consolidated balance sheets. |
Foreign Currency Translation. | Foreign Currency Translation. The functional currency of our foreign subsidiaries is the local currency. In consolidation, we translate assets and liabilities at exchange rates in effect at the consolidated balance sheet date. We translate revenue and expense accounts at the average exchange rates during the period in which the transaction takes place. Net losses from foreign currency translation of assets and liabilities were $20,000 and $19,000 for the three months ended September 30, 2017 and 2016, respectively, and $71,000, and $36,000 for the nine months ended September 30, 2017 and 2016, respectively, and are included in the cumulative translation adjustment component of accumulated other comprehensive loss, net of tax, a component of stockholders’ equity. Net losses arising from transactions denominated in currencies other than the functional currency were $7,000 and $18,000 for the three months ended September 30, 2017 and 2016, respectively, and a $1,000 gain and a $30,000 loss for the nine months ended September 30, 2017 and 2016, respectively, and are included in other income (expense), net in the condensed consolidated statements of operations. |
Concentration of Risk. | Concentration of Risk. Our products are primarily manufactured, assembled and tested by third-party foundries and other contractors in Asia and we are heavily dependent on a single foundry in Taiwan for the manufacture of wafers and a single contractor in the Philippines for assembly and testing of our products. We do not have long-term agreements with either of these suppliers. A significant disruption in the operations of these parties would adversely impact the production of our products for a substantial period of time, which could have a material adverse effect on our business, financial condition, operating results and cash flows. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents and accounts receivables. We place substantially all of our cash and cash equivalents on deposit with a reputable, high credit quality financial institution in the United States of America. We believe that the bank that holds substantially all of our cash and cash equivalents is financially sound and, accordingly, subject to minimal credit risk. Deposits held with the bank may exceed the amount of insurance provided on such deposits. We generally do not require collateral or other security in support of accounts receivable. We periodically review the need for an allowance for doubtful accounts by considering factors such as historical experience, credit quality, the age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay. As a result of our favorable collection experience and customer concentration, there was no allowance for doubtful accounts as of September 30, 2017 and December 31, 2016. Customer concentrations as a percentage of revenue, net were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Customer A 13 % 12 % 16 % 14 % Customer B 12 % * 10 % 11 % Customer C 13 % 10 % 12 % 10 % * less than 10% Customer concentrations as a percentage of gross accounts receivable were as follows: September 30, September 30, 2017 2016 Customer A 23 % 16 % Customer B 17 % 13 % Customer C * 12 % * less than 10% |
Recent Accounting Pronouncements. | Recent Accounting Pronouncements. In May 2014, as part of its ongoing efforts to assist in the convergence of U.S. GAAP and International Financial Reporting Standards (“IFRS”), the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606) Narrow-Scope Improvements and Practical Expedients In February 2016, the FASB issued ASU 2016-02, Leases, Topic 842. This ASU requires lease assets and lease liabilities arising from leases, including operating leases, to be recognized on the balance sheet, ASU 2016-02 will become effective for us on January 1, 2019. We are currently evaluating the impact of this guidance on our consolidated financial statements. In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendment to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments (SEC Update). The amendments in ASU No. 2017-13 amends the early adoption date option for certain companies related to the adoption of ASU No. 2014-09 and ASU No. 2016-02. |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Customer Concentration as Percentage of Net Revenue and Gross Receivable | Customer concentrations as a percentage of revenue, net were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Customer A 13 % 12 % 16 % 14 % Customer B 12 % * 10 % 11 % Customer C 13 % 10 % 12 % 10 % * less than 10% Customer concentrations as a percentage of gross accounts receivable were as follows: September 30, September 30, 2017 2016 Customer A 23 % 16 % Customer B 17 % 13 % Customer C * 12 % * less than 10% |
Balance Sheet Components. (Tabl
Balance Sheet Components. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Accounts Receivable, Net | Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2017 2016 Accounts receivable $ 12,391 $ 8,800 Allowance for SSDs, price protection, rights of return and other activities (3,581 ) (2,689 ) Total accounts receivable, net $ 8,810 $ 6,111 |
Components of Inventories | Inventories consisted of the following (in thousands): September 30, December 31, 2017 2016 Raw materials $ 1,018 $ 212 Work-in-process 2,299 3,793 Finished goods 946 1,177 Total inventories $ 4,263 $ 5,182 |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): September 30, December 31, 2017 2016 Machinery and equipment $ 8,561 $ 7,351 Furniture and fixtures 83 77 Leasehold improvements 4,252 4,252 Computer software 675 668 Construction in progress 1,301 1,098 Property and equipment, at cost 14,872 13,446 Accumulated depreciation and amortization (8,547 ) (7,484 ) Property and equipment, net $ 6,325 $ 5,962 |
Components of Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities. Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2017 2016 Accrued sales commission payable $ 329 $ 366 Accrued manufacturing expenses 228 149 Deferred rent, current portion 413 388 Liabilities to certain customers 474 663 Product warranty 24 209 Other accrued liabilities 478 401 Total accrued expenses and other current liabilities $ 1,946 $ 2,176 |
Fair Value Measurements. (Table
Fair Value Measurements. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | Financial assets measured at fair value on a recurring basis were as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (in thousands) As of September 30, 2017 Assets: Money market funds $ 11,497 $ — $ — $ 11,497 As of December 31, 2016 Assets: Money market funds $ 16,540 $ — $ — $ 16,540 |
Intangible Assets, net. (Tables
Intangible Assets, net. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net were as follows (in thousands): September 30, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,282 $ 2,142 $ 2,140 Customer relationships 9,011 3,754 5,257 Customer backlog 2,779 2,779 — Non-compete agreement 282 282 — Total intangible assets subject to amortization $ 16,354 $ 8,957 $ 7,397 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technology $ 4,282 $ 1,820 $ 2,462 Customer relationships 9,011 3,191 5,820 Customer backlog 2,779 2,779 — Non-compete agreement 282 240 42 Total intangible assets subject to amortization $ 16,354 $ 8,030 $ 8,324 |
Schedule of Amortization Expense of Intangible Assets | We recorded amortization expense related to the acquisition-related intangible assets as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Operating expense category: Research and development $ 121 $ 121 $ 364 $ 363 Sales and marketing 188 188 563 564 Total $ 309 $ 309 $ 927 $ 927 |
Schedule of Finite-Lived Intangible Assets, Annual Expected Amortization Expense | The estimated future amortization expense of acquisition-related intangible assets subject to amortization after September 30, 2017 is as follows (in thousands): Year Ended December 31, 2017 (remaining 3 months) $ 295 2018 1,179 2019 1,179 2020 1,179 2021 1,179 Thereafter 2,386 Total $ 7,397 |
Borrowings. (Tables)
Borrowings. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Borrowings | Outstanding borrowings consisted of the following (in thousands): September 30, December 31, 2017 2016 Term loan, current $ — $ 6,466 Term loan, non-current 11,396 9,775 Line of credit 2,000 1,807 Total $ 13,396 $ 18,048 |
Schedule of Future Repayments Of Outstanding Borrowing | Future repayments on outstanding borrowings (excluding unamortized discount of $59,000 as of September 30, 2017) are as follows (in thousands): Year ending December 31, 2017 (remaining 3 months) $ — 2018 1,000 2019 6,000 2020 4,000 2021 2,455 $ 13,455 |
Segment Information. (Tables)
Segment Information. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Product Revenue from Customers Based on Geographic Region | Product revenue from customers is designated based on the geographic region to which the product is delivered. Revenue by geographic region was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 United States $ 3,331 $ 1,873 $ 8,853 $ 4,780 Rest of Americas 58 64 189 335 Europe 2,044 1,466 6,054 4,313 Asia Pacific 9,729 7,730 24,540 21,979 Rest of world 77 47 322 231 Total $ 15,239 $ 11,180 $ 39,958 $ 31,638 |
Schedule of Long-Lived Assets by Geographic Region | Long-lived assets are attributed to the geographic region were they are located. Long-lived assets by geographic region were as follows (in thousands): September 30, December 31, 2017 2016 United States $ 5,646 $ 5,489 Asia Pacific 679 472 Europe — 1 Total property and equipment, net $ 6,325 $ 5,962 |
Commitments and Contingencies.
Commitments and Contingencies. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments Under Operating Leases | Total Remaining 2017 2018 2019 2020 2021 Thereafter (in thousands) Operating leases $ 7,390 $ 302 $ 1,210 $ 1,223 $ 1,249 $ 1,287 $ 2,119 |
Common Stock, Common Stock Wa28
Common Stock, Common Stock Warrants and Stock Option Plan. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Stock Reserved for Future Issuance | As of September 30, 2017 and December 31, 2016, we had reserved shares of common stock for future issuances as follows: September 30, December 31, 2017 2016 Warrants to purchase common stock 404,136 411,514 Stock option plan: Options outstanding 1,592,551 991,895 Restricted stock units outstanding 635,161 490,954 Shares available for future grants/RSU grants 602,463 1,275,685 Shares available for ESPP 275,587 231,355 Total 3,509,898 3,401,403 |
Summary of Outstanding Common Stock Warrants | The following common stock warrants were outstanding as of September 30, 2017 and December 31, 2016 and were the result of a conversion of preferred stock warrants upon the completion of our IPO on October 30, 2015. Total amount of securities issuable under the outstanding warrants Exercise Price Issuance Date Expiration Date 74,141 $ 30.35 2012-2013 2019 329,995 $ 2.38 2014-2015 2022-2024 404,136 |
Summary of Stock Option Activity | A summary of stock option and restricted stock units (including performance-based RSU) activity under the 2007 Plan and the 2015 Equity Incentive Plan is as follows: Stock Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (aggregate intrinsic value in thousands) Outstanding as of December 31, 2015 796,356 $ 2.49 6.5 $ 4,157 Granted 230,200 3.38 Exercised (13,112 ) 1.80 Canceled (21,549 ) 3.73 Outstanding as of December 31, 2016 991,895 2.68 6.3 161 Granted 809,980 4.19 Exercised (176,265 ) 1.70 Canceled (33,059 ) 4.06 Outstanding as of September 30, 2017 1,592,551 $ 3.53 7.8 $ 6,996 Options vested and expected to vest as of September 30, 2017 1,526,547 $ 3.50 7.8 $ 6,755 Options vested and exercisable as of September 30, 2017 766,120 $ 2.83 6.3 $ 3,917 |
Summary of Restricted Stock Units Activity (Including Performance-Based RSU) | A summary of stock option and restricted stock units (including performance-based RSU) activity under the 2007 Plan and the 2015 Equity Incentive Plan is as follows: Restricted Stock Units Shares Weighted- Average Grant Date Fair Value Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (aggregate intrinsic value in thousands) Outstanding as of December 31, 2015 874,508 $ 5.95 1.8 $ 6,742 Granted 69,414 4.82 — — Released (438,086 ) 5.95 — — Forfeited/expired (14,882 ) 5.70 — — Outstanding as of December 31, 2016 490,954 5.80 0.5 908 Granted 541,513 2.88 Released (371,866 ) 5.65 Forfeited/expired (25,440 ) 5.98 Outstanding as of September 30, 2017 635,161 $ 3.39 1.3 $ 4,986 |
Stock-based Compensation. (Tabl
Stock-based Compensation. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options | The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to determine fair value of stock options: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Volatility — — 86 % 51 % Expected dividend yield — — — — Risk-free rate — — 2.15 % 1.34 % Expected term (in years) — — 6 6 |
Schedule of Effects of Stock-Based Compensation for Stock Options, RSU's (Including Performance-Based RSUs) and ESPP Purchase Rights | The following table presents the effects of stock-based compensation for stock options, RSUs (including performance-based RSUs), and ESPP purchase rights (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenue $ 35 $ 22 $ 86 $ 60 Research and development 373 273 937 787 Sales and marketing 239 186 621 530 General and administrative 420 398 1,229 1,131 Total $ 1,067 $ 879 $ 2,873 $ 2,508 |
Net Loss Per Share. (Tables)
Net Loss Per Share. (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: Three and Nine Months Ended September 30, 2017 2016 Shares not used in computing net loss per share as considered anti-dilutive: Stock options 1,592,551 984,386 Common stock warrants 404,136 411,514 Restricted stock units 635,161 931,874 2,631,848 2,327,774 |
Organization and Summary of S31
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||||
Date of Acquisition | Sep. 28, 2012 | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | |||
Product warranty claim recorded | $ 250,000 | |||||
Product warranty claim incurred | 226,000 | $ 226,000 | 41,000 | |||
Product warranty period | Our products are sold with a limited warranty for a period of one year, warranting that the product conforms to specifications and is free from material defects in design, materials and workmanship. | |||||
Product warranty accrual | 24,000 | $ 24,000 | $ 209,000 | |||
Foreign currency translation adjustment | (20,000) | $ (19,000) | (71,000) | $ (36,000) | ||
Net gains or losses arising from transactions denominated in currencies other than the functional currency | $ (7,000) | $ (18,000) | $ 1,000 | $ (30,000) |
Organization and Summary of S32
Organization and Summary of Significant Accounting Policies - Schedule of Customer Concentration as Percentage of Net Revenue and Gross Receivable (Detail) - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |||
Sales Revenue, Net [Member] | Customer A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 13.00% | 12.00% | 16.00% | 14.00% | ||
Sales Revenue, Net [Member] | Customer B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 12.00% | 0.00% | [1] | 10.00% | 11.00% | |
Sales Revenue, Net [Member] | Customer C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 13.00% | 10.00% | 12.00% | 10.00% | ||
Accounts Receivable [Member] | Customer A [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 23.00% | 16.00% | ||||
Accounts Receivable [Member] | Customer B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 17.00% | 13.00% | ||||
Accounts Receivable [Member] | Customer C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk percentage | 0.00% | [1] | 12.00% | |||
[1] | less than 10% |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Accounts receivable | $ 12,391 | $ 8,800 | |
Allowance for SSDs, price protection, rights of return and other activities | (3,581) | (2,689) | |
Total accounts receivable, net | $ 8,810 | $ 6,111 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Balance Sheet Components - Co34
Balance Sheet Components - Components of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 1,018 | $ 212 | |
Work-in-process | 2,299 | 3,793 | |
Finished goods | 946 | 1,177 | |
Total inventories | $ 4,263 | $ 5,182 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property Plant And Equipment [Line Items] | ||||
Realized benefit from sales of previously reserved products | $ 0.4 | $ 0.1 | $ 1 | $ 0.8 |
Depreciation and amortization | $ 0.4 | $ 0.3 | $ 1 | $ 0.7 |
Masks [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
Estimated useful life | 3 years |
Balance Sheet Components - Co36
Balance Sheet Components - Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Line Items] | |||
Property and equipment, at cost | $ 14,872 | $ 13,446 | |
Accumulated depreciation and amortization | (8,547) | (7,484) | |
Property and equipment, net | 6,325 | 5,962 | [1] |
Machinery and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, at cost | 8,561 | 7,351 | |
Furniture and Fixtures [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, at cost | 83 | 77 | |
Leasehold Improvements [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, at cost | 4,252 | 4,252 | |
Computer Software [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, at cost | 675 | 668 | |
Construction in Progress [Member] | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, at cost | $ 1,301 | $ 1,098 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Balance Sheet Components - Co37
Balance Sheet Components - Components of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |||
Accrued sales commission payable | $ 329,000 | $ 366,000 | |
Accrued manufacturing expenses | 228,000 | 149,000 | |
Deferred rent, current portion | 413,000 | 388,000 | |
Liabilities to certain customers | 474,000 | 663,000 | |
Product warranty | 24,000 | 209,000 | |
Other accrued liabilities | 478,000 | 401,000 | |
Total accrued expenses and other current liabilities | $ 1,946,000 | $ 2,176,000 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured at Fair Value (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Money market funds | $ 11,497 | $ 16,540 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Money market funds | $ 11,497 | $ 16,540 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | ||
Financial liabilities, fair value at recurring basis | $ 0 | $ 0 |
Intangible Assets, net - Additi
Intangible Assets, net - Additional Information (Detail) $ in Millions | Sep. 30, 2012USD ($) |
Finite Lived Intangible Assets Net [Abstract] | |
Finite-lived intangible assets | $ 16.4 |
Intangible Assets, net - Schedu
Intangible Assets, net - Schedule of Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 16,354 | $ 16,354 | |
Accumulated amortization | 8,957 | 8,030 | |
Net carrying amount | 7,397 | 8,324 | [1] |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 4,282 | 4,282 | |
Accumulated amortization | 2,142 | 1,820 | |
Net carrying amount | 2,140 | 2,462 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 9,011 | 9,011 | |
Accumulated amortization | 3,754 | 3,191 | |
Net carrying amount | 5,257 | 5,820 | |
Customer Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 2,779 | 2,779 | |
Accumulated amortization | 2,779 | 2,779 | |
Non-compete Agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 282 | 282 | |
Accumulated amortization | $ 282 | 240 | |
Net carrying amount | $ 42 | ||
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Intangible Assets, net - Sche42
Intangible Assets, net - Schedule of Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense, acquisition related intangible assets | $ 309 | $ 309 | $ 927 | $ 927 |
Research and Development [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense, acquisition related intangible assets | 121 | 121 | 364 | 363 |
Sales and Marketing [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense, acquisition related intangible assets | $ 188 | $ 188 | $ 563 | $ 564 |
Intangible Assets, net - Sche43
Intangible Assets, net - Schedule of Finite-Lived Intangible Assets, Annual Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | [1] |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |||
2017 (remaining 3 months) | $ 295 | ||
2,018 | 1,179 | ||
2,019 | 1,179 | ||
2,020 | 1,179 | ||
2,021 | 1,179 | ||
Thereafter | 2,386 | ||
Net carrying amount | $ 7,397 | $ 8,324 | |
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Sep. 29, 2017 | Jul. 07, 2016 | Jul. 31, 2016 | Apr. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jul. 07, 2017 | Oct. 30, 2015 |
Debt Instrument [Line Items] | |||||||||||
Amortization of debt discount | $ 64,000 | $ 606,000 | |||||||||
Interest expense | $ 200,000 | $ 600,000 | $ 600,000 | $ 1,100,000 | |||||||
Opus Bank Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, agreement period | 3 years | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | ||||||||||
Debt instrument, description of variable rate basis | (a) the higher of (i) the prime rate (as publicly announced from time to time by the Wall Street Journal) and (ii) 3.25% plus (b) (i) 1.00% if our cash equivalents are greater than 125% of the outstanding principal of our borrowings under the term loan facility, or (ii) 2.00% if our cash and cash equivalents are less than or equal to 125% of such borrowings. | ||||||||||
Debt instrument, variable rate | 3.25% | ||||||||||
Debt service coverage ratio, after September 30, 2015 | 110.00% | ||||||||||
Quarterly adjusted EBITDA | $ 1 | ||||||||||
Repayment amount of borrowing capacity | $ 14,000,000 | ||||||||||
Issuance of warrants to purchase preferred stock shares | 31,897 | ||||||||||
Payment for financing costs | $ 100,000 | ||||||||||
Unamortized debt discount | $ 1,000,000 | 400,000 | $ 400,000 | ||||||||
Amortization of debt discount | $ 200,000 | ||||||||||
Opus Bank Term Loan [Member] | IPO [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Issuance of warrants to purchase preferred stock shares | 315,282 | ||||||||||
Opus Bank Term Loan [Member] | If our cash and cash equivalents are greater than 125% of the outstanding principal of our borrowings under the new term loan facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||||||
Opus Bank Term Loan [Member] | If our cash and cash equivalents are less than or equal to 125% of such borrowings [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||||||
Opus Bank Term Loan [Member] | Upon an occurrence of an event of default [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 5.00% | ||||||||||
Western Alliance Bank Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Unamortized debt discount | $ 59,000 | 59,000 | |||||||||
Amortization of debt discount | $ 64,000 | ||||||||||
Debt Instrument, fee amount | $ 150,000 | ||||||||||
Debt Instrument additional fee liability | 10,000 | ||||||||||
Debt instrument diligence fee | $ 25,000 | ||||||||||
Debt instrument, description of payment terms | The Amendment also decreased the interest rates under the Line of Credit and the Term Loan and changed the payment schedule under the Term Loan. Under the Agreement, we will make interest-only payments on the Term Loan from October 10, 2017 and on the 10th calendar day of each month thereafter, and will make principal and interest payments in 36 equal installments beginning on October 10, 2018, and on the 10th calendar day of each month thereafter, until the maturity date of the Term Loan. | ||||||||||
Credit facility, covenant terms | The Credit Facility contains customary representations and warranties and affirmative and negative covenants. Among other negative covenants, prior to the Amendment, the Credit Facility provided that we may not (i) permit the ratio of the balance of unrestricted cash deposited at the financial institution, plus eligible receivables, net of reserve to the total amounts owed with respect to advances under the revolving credit line to be less than 1.50 to 1.00 and (ii) permit cash held at the financial institution in a deposit account to be less than 100% of the term loan outstanding. | ||||||||||
Credit facility, additional covenant terms | Under the Amendment, we have agreed to modified and additional negative covenants, requiring us to maintain a ratio of at least 1.25 to 1.00 with respect to either of the following: (x) the sum of our cash and certain receivables to our indebtedness under the Credit Facility; or (y) our Adjusted EBITDA (as defined in the Amendment), less certain capital expenditures, to the sum of (a) all principal payments and interest expense that we would have owed to the Lender if the Term Loan’s amortization were to start on September 29, 2017, all measured on a trailing 4-quarter basis, plus (b) all principal payments and interest expense on any of our other debt. | ||||||||||
Western Alliance Bank Term Loan [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, threshold percentage for quarterly revenue projections | 25.00% | ||||||||||
Western Alliance Bank Term Loan [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Credit facility, indebtedness ratio | 125.00% | ||||||||||
Western Alliance Bank Term Loan [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 18,000,000 | ||||||||||
Debt instrument, description of variable rate basis | Prior to the Amendment, the Term Loan bore interest at a rate per annum equal to the greater of the prime rate or 3.5%, plus 0.75% (5.00% on September 30, 2017), and was scheduled to mature in June 2019 | ||||||||||
Debt instrument, prime rate, minimum | 3.50% | 5.00% | 5.00% | ||||||||
Borrowings mature date | Sep. 30, 2021 | Jun. 30, 2019 | |||||||||
Debt instrument, description of payment terms | Prior to the Amendment, we made interest-only payments on the Term Loan from July 2016 through September 2016 and began making interest payments and principal payments in 33 equal monthly installments starting October 2016. | ||||||||||
Additional interest rate above the applicable rate in the event of default | 5.00% | ||||||||||
Western Alliance Bank Term Loan [Member] | Term Loan [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Permitted cash held in deposit account as percentage of outstanding debt under credit facility | 100.00% | ||||||||||
Western Alliance Bank Term Loan [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | $ 2,000,000 | |||||||||
Debt instrument, description of variable rate basis | Prior to the Amendment, the Line of Credit bore interest at a rate per annum equal to the greater of the prime rate or 3.5% plus 0.50% (4.75% on September 30, 2017), and was scheduled to mature in July 2018. | ||||||||||
Debt instrument, prime rate, minimum | 3.50% | 4.75% | 4.75% | ||||||||
Borrowings mature date | Jul. 31, 2019 | Jul. 31, 2018 | |||||||||
Western Alliance Bank Term Loan [Member] | Line of Credit [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility, maximum borrowing capacity as a percentage of eligible accounts receivable | 80.00% | ||||||||||
Unrestricted cash deposit to indebtedness ratio | 150.00% | ||||||||||
Western Alliance Bank Term Loan [Member] | Prime Rate [Member] | Term Loan [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 0.75% | ||||||||||
Western Alliance Bank Term Loan [Member] | Prime Rate [Member] | Line of Credit [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, basis spread on variable rate | 0.50% |
Borrowings - Schedule of Outsta
Borrowings - Schedule of Outstanding Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | ||
Debt Disclosure [Abstract] | ||||
Term loan, current | [1] | $ 6,466 | ||
Term loan, non-current | $ 11,396 | 9,775 | [1] | |
Line of credit | 2,000 | 1,807 | [1] | |
Total | $ 13,396 | $ 18,048 | ||
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Repayments of Outstanding Borrowing (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Long Term Debt By Maturity [Abstract] | |
2,018 | $ 1,000 |
2,019 | 6,000 |
2,020 | 4,000 |
2,021 | 2,455 |
Borrowing outstanding prior to accounting for debt discount | $ 13,455 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of business segment | 1 |
Segment Information - Schedule
Segment Information - Schedule of Revenue by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 15,239 | $ 11,180 | $ 39,958 | $ 31,638 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 3,331 | 1,873 | 8,853 | 4,780 |
Rest of Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 58 | 64 | 189 | 335 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,044 | 1,466 | 6,054 | 4,313 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 9,729 | 7,730 | 24,540 | 21,979 |
Rest of World [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 77 | $ 47 | $ 322 | $ 231 |
Segment Information - Long-Live
Segment Information - Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net | $ 6,325 | $ 5,962 | [1] |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net | 5,646 | 5,489 | |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net | $ 679 | 472 | |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total property and equipment, net | $ 1 | ||
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Nov. 02, 2015USD ($)ft² | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) |
Commitment And Contingencies [Line Items] | |||||
Rent expense under operating leases | $ 300,000 | $ 400,000 | $ 800,000 | $ 1,500,000 | |
Supply Commitment [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Purchase commitments | 4,000,000 | 4,000,000 | |||
Purchase commitment for licensing and development agreement | 600,000 | $ 600,000 | |||
Purchase commitments due period | 1 year | ||||
TowerJazz Panasonic Semiconductor Company [Member] | Supply Commitment [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Purchase commitments | 7,900,000 | $ 7,900,000 | |||
Lease Agreements [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Base monthly rent during the extension period | $ 93,000 | ||||
Annual increase of monthly rent after February 27, 2017 | 3.00% | ||||
Lease incentive obligation | $ 2,100,000 | $ 2,100,000 | |||
eGain Corporation [Member] | Lease Agreements [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Lease extension term | 6 months | ||||
Base monthly rent during the extension period | $ 47,000 | ||||
Lease Expiration Date | Aug. 31, 2016 | ||||
Peterson Ridge LLC [Member] | Lease Agreements [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Lease Expiration Date | Jul. 31, 2023 | ||||
Additional area leased | ft² | 34,000 | ||||
Optional Lease Extension Term | 5 years | ||||
Peterson Ridge LLC [Member] | Lease Agreements [Member] | Maximum [Member] | |||||
Commitment And Contingencies [Line Items] | |||||
Reimbursement for out-of-pocket costs associated with any tenant improvements | $ 2,500,000 |
Commitments and Contingencies51
Commitments and Contingencies - Schedule of Future Minimum Lease Payments Under Operating Leases (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Total | $ 7,390 |
Remaining 2,017 | 302 |
2,018 | 1,210 |
2,019 | 1,223 |
2,020 | 1,249 |
2,021 | 1,287 |
Thereafter | $ 2,119 |
Common Stock, Common Stock Wa52
Common Stock, Common Stock Warrants and Stock Option Plan - Additional Information (Detail) - USD ($) | Jul. 31, 2017 | Jan. 31, 2017 | Jul. 29, 2016 | May 25, 2016 | Dec. 31, 2007 | Jun. 30, 2017 | Sep. 30, 2015 | Sep. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | Oct. 26, 2015 | |
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | [1] | |||||||||
Common stock, no par value | ||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | [1] | |||||||||
Voting right common stock holder | Each holder of common stock is entitled to one vote per share. | |||||||||||
Common stock, dividends declared | $ 0 | |||||||||||
Proceeds from public offering, net of underwriting discounts and commissions and offering expenses | $ 18,363,000 | |||||||||||
Shares of common stock reserved and available for the issuance | 3,509,898 | 3,401,403 | ||||||||||
Maximum fair market value, that would permit employee to purchase common stock under plan | $ 25,000 | |||||||||||
2007 Plan [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Shares of common stock reserved and available for the issuance of stock options and restricted stock to eligible participants | 272,727 | |||||||||||
Shares of common stock reserved and available for the issuance of stock options and restricted stock to eligible participants | 787,878 | 2,651,515 | ||||||||||
Vesting period | 4 years | |||||||||||
Option exercisable period after grant date | 10 years | |||||||||||
Number of shares available for grant | 0 | |||||||||||
2007 Plan [Member] | Minimum [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Share based compensation arrangement by share based payment grants as percentage of fair value | 85.00% | |||||||||||
2007 Plan [Member] | Persons controlling more than 10% of Company's stock [Member] | Restricted Stock [Member] | Minimum [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Share based compensation arrangement by share based payment grants as percentage of fair value | 100.00% | |||||||||||
2007 Plan [Member] | New Employee [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Vesting period | 4 years | |||||||||||
Percentage of performance based awards allowed to vest within year | 25.00% | |||||||||||
2015 Equity Incentive Plan [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Shares of common stock reserved and available for the issuance | 1,813,272 | |||||||||||
Percentage threshold of outstanding shares increased annually under the plan | 4.00% | |||||||||||
Stock option grants description | The number of shares reserved for issuance under our 2015 Equity Incentive Plan will increase automatically on the first day of January of each of 2016 through 2025 by the number of shares equal to 4% of the total outstanding shares of our common stock as of the immediately preceding December 31. | |||||||||||
Common stock shares authorized for issuance | 25,000,000 | |||||||||||
2015 Equity Incentive Plan [Member] | New Employee [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Common stock shares authorized for issuance | 4,000,000 | |||||||||||
2015 Equity Incentive Plan [Member] | Existing Employee [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Common stock shares authorized for issuance | 2,000,000 | |||||||||||
2015 Equity Incentive Plan [Member] | Non Employee Director [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Common stock shares authorized for issuance | 300,000 | |||||||||||
2015 Employee Stock Purchase Plan [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Shares of common stock reserved and available for the issuance | 150,000 | |||||||||||
Percentage threshold of outstanding shares increased annually under the plan | 1.00% | |||||||||||
Stock option grants description | The number of shares reserved for issuance under our 2015 Employee Stock Purchase Plan will increase automatically on the first day of January following the first offering date by the number of shares equal to 1% of the total outstanding shares of our common stock as of the immediately preceding December 31 (rounded to the nearest whole share). | |||||||||||
Common stock shares authorized for issuance | 2,250,000 | |||||||||||
Options to purchase shares of common stock, discount percentage | 15.00% | |||||||||||
Percentage of fair market value of common stock | 85.00% | |||||||||||
Extended initial offering date | Jul. 31, 2016 | |||||||||||
Shares issued in conjunction with the end date of initial purchase | 59,794 | 50,917 | 68,392 | |||||||||
Follow-on Offering [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Common stock, shares sold | 5,000,000 | |||||||||||
Common stock, public offering price per share | $ 4 | |||||||||||
Proceeds from public offering, net of underwriting discounts and commissions and offering expenses | $ 18,400,000 | |||||||||||
Overallotment Option [Member] | ||||||||||||
Common Stock Options Restricted Stock Warrants And Changes In Capitalization [Line Items] | ||||||||||||
Common stock, shares sold | 625,000 | |||||||||||
[1] | The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements as of that date. |
Common Stock, Common Stock Wa53
Common Stock, Common Stock Warrants and Stock Option Plan - Schedule of Stock Reserved for Future Issuance (Detail) - shares | Sep. 30, 2017 | Dec. 31, 2016 |
Common Stock And Warrant Liability [Line Items] | ||
Common stock, capital shares reserved for future issuance | 3,509,898 | 3,401,403 |
Warrants To Purchase Common Stock [Member] | ||
Common Stock And Warrant Liability [Line Items] | ||
Common stock, capital shares reserved for future issuance | 404,136 | 411,514 |
Stock Options Outstanding [Member] | ||
Common Stock And Warrant Liability [Line Items] | ||
Common stock, capital shares reserved for future issuance | 1,592,551 | 991,895 |
Restricted Stock Units Outstanding [Member] | ||
Common Stock And Warrant Liability [Line Items] | ||
Common stock, capital shares reserved for future issuance | 635,161 | 490,954 |
Shares Available For Future Grants/RSU Grants [Member] | ||
Common Stock And Warrant Liability [Line Items] | ||
Common stock, capital shares reserved for future issuance | 602,463 | 1,275,685 |
Shares Available For ESPP [Member] | ||
Common Stock And Warrant Liability [Line Items] | ||
Common stock, capital shares reserved for future issuance | 275,587 | 231,355 |
Common Stock, Common Stock Wa54
Common Stock, Common Stock Warrants and Stock Option Plan - Outstanding Common Stock Warrants (Detail) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Common Stock Warrants One [Member] | ||
Class of Warrant or Right [Line Items] | ||
Total amount of securities issuable under the outstanding warrants | 74,141 | 74,141 |
Exercise Price | $ 30.35 | $ 30.35 |
Expiration Date | 2,019 | 2,019 |
Common Stock Warrants One [Member] | Minimum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance Date | 2,012 | 2,012 |
Common Stock Warrants One [Member] | Maximum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance Date | 2,013 | 2,013 |
Common Stock Warrants Two [Member] | ||
Class of Warrant or Right [Line Items] | ||
Total amount of securities issuable under the outstanding warrants | 329,995 | 329,995 |
Exercise Price | $ 2.38 | $ 2.38 |
Common Stock Warrants Two [Member] | Minimum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance Date | 2,014 | 2,014 |
Expiration Date | 2,022 | 2,022 |
Common Stock Warrants Two [Member] | Maximum [Member] | ||
Class of Warrant or Right [Line Items] | ||
Issuance Date | 2,015 | 2,015 |
Expiration Date | 2,024 | 2,024 |
Common Stock Warrants [Member] | ||
Class of Warrant or Right [Line Items] | ||
Total amount of securities issuable under the outstanding warrants | 404,136 | 404,136 |
Common Stock, Common Stock Wa55
Common Stock, Common Stock Warrants and Stock Option Activity Under 2007 Plan And 2015 Equity Incentive Plan (Detail) - Stock Options [Member] - Two Thousand Seven And Two Thousand Fifteen Equity Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Outstanding, beginning of period | 991,895 | 796,356 | |
Granted | 809,980 | 230,200 | |
Exercised | (176,265) | (13,112) | |
Canceled | (33,059) | (21,549) | |
Outstanding, end of period | 1,592,551 | 991,895 | 796,356 |
Options vested and expected to vest, end of period | 1,526,547 | ||
Options vested and exercisable, end of period | 766,120 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period | $ 2.68 | $ 2.49 | |
Granted | 4.19 | 3.38 | |
Exercised | 1.70 | 1.80 | |
Canceled | 4.06 | 3.73 | |
Outstanding, end of period | 3.53 | $ 2.68 | $ 2.49 |
Options vested and expected to vest, end of period | 3.50 | ||
Options vested and exercisable, end of period | $ 2.83 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding, Weighted Average Remaining Contractual Term (Years) | 7 years 9 months 18 days | 6 years 3 months 18 days | 6 years 6 months |
Options vested and expected to vest | 7 years 9 months 18 days | ||
Options vested and exercisable | 6 years 3 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding, Aggregate Intrinsic Value | $ 6,996 | $ 161 | $ 4,157 |
Options vested and expected to vest as of September 30, 2017 | 6,755 | ||
Options vested and exercisable as of September 30, 2017 | $ 3,917 |
Common Stock, Common Stock Wa56
Common Stock, Common Stock Warrants and Stock Option Plan - Summary of Restricted Stock Units Activity (Including Performance-Based RSU) (Detail) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Shares | ||||
Granted | 204,220 | |||
Weighted Average Grant Date Fair Value | ||||
Granted | $ 0.81 | |||
Two Thousand Seven And Two Thousand Fifteen Equity Incentive Plan [Member] | ||||
Shares | ||||
Outstanding, beginning of period | 490,954 | 874,508 | ||
Granted | 541,513 | 69,414 | ||
Released | (371,866) | (438,086) | ||
Forfeited/expired | (25,440) | (14,882) | ||
Outstanding, end of period | 635,161 | 490,954 | 874,508 | |
Weighted Average Grant Date Fair Value | ||||
Outstanding, beginning of period | $ 5.80 | $ 5.95 | ||
Granted | 2.88 | 4.82 | ||
Released | 5.65 | 5.95 | ||
Forfeited/expired | 5.98 | 5.70 | ||
Outstanding, end of period | $ 3.39 | $ 5.80 | $ 5.95 | |
Weighted Average Remaining Contractual Term (Years) | ||||
Outstanding, Weighted Average Remaining Contractual Term (Years) | 1 year 3 months 19 days | 6 months | 1 year 9 months 18 days | |
Aggregate Intrinsic Value | ||||
Outstanding, Aggregate Intrinsic Value | $ 4,986 | $ 908 | $ 6,742 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) | Apr. 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 |
Share Based Compensation Expense [Line Items] | ||||
Employee's requisite service period | 4 years | |||
Expected dividend yield | $ 0 | |||
Unrecognized compensation cost | $ 2,100,000 | $ 2,100,000 | ||
Expected to be recognized over a weighted-average period | 3 years 1 month 7 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Shares, granted | 204,220 | |||
Vesting rights, description | On April 1, 2017, our compensation committee granted 204,220 RSUs that do not begin vesting unless certain performance goals are met. All performance goals must be met in order for the shares to begin vesting. Vesting would begin on the one-year anniversary of the grant date. These performance goals relate to a) the price performance of our common stock one year from the grant date as compared to a threshold established by our compensation committee and b) revenue, gross profit and EBITDA performance relative to plan targets for fiscal 2017 established by our compensation committee. | |||
Grant date fair value per share | $ 0.81 | |||
RSUs (Including Performance-Based RSUs) [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Unrecognized compensation cost | 1,400,000 | $ 1,400,000 | ||
Expected to be recognized over a weighted-average period | 2 years | |||
ESPP Purchase Rights [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Unrecognized compensation cost | $ 54,000 | $ 54,000 | ||
Expected to be recognized over a weighted-average period | 3 months 19 days | |||
2015 Equity Incentive Plan [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Weighted-average grant date fair value of options granted | $ 3.03 | |||
Number of shares granted | 0 | 0 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Volatility | 86.00% | 51.00% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Risk-free rate | 2.15% | 1.34% | ||
Expected term (in years) | 6 years | 6 years |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Effects of Stock-Based Compensation for Stock Options, RSU's (Including Performance-Based RSUs) and ESPP Purchase Rights (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Based Compensation Expense [Line Items] | ||||
Stock-based compensation expense | $ 1,067 | $ 879 | $ 2,873 | $ 2,508 |
Stock Options, RSU's (Including Performance-Based RSUs), And ESPP Purchase Rights [Member] | Cost of Revenue [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Stock-based compensation expense | 35 | 22 | 86 | 60 |
Stock Options, RSU's (Including Performance-Based RSUs), And ESPP Purchase Rights [Member] | Research and Development [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Stock-based compensation expense | 373 | 273 | 937 | 787 |
Stock Options, RSU's (Including Performance-Based RSUs), And ESPP Purchase Rights [Member] | Sales and Marketing [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Stock-based compensation expense | 239 | 186 | 621 | 530 |
Stock Options, RSU's (Including Performance-Based RSUs), And ESPP Purchase Rights [Member] | General and Administrative [Member] | ||||
Share Based Compensation Expense [Line Items] | ||||
Stock-based compensation expense | $ 420 | $ 398 | $ 1,229 | $ 1,131 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 17 | $ 15 | $ 57 | $ 46 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Outstanding Common Stock Equivalents Excluded From Computation of Diluted Net Loss Per Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,631,848 | 2,327,774 | 2,631,848 | 2,327,774 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,592,551 | 984,386 | 1,592,551 | 984,386 |
Common Stock Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 404,136 | 411,514 | 404,136 | 411,514 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 635,161 | 931,874 | 635,161 | 931,874 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Altis Semiconductor S.N.C [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Payments to related party | $ 45,000 | $ 0 | $ 82,000 | $ 172,000 | |
Accounts payable to related party | $ 113,000 | $ 113,000 | $ 195,000 |