Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | EVERSPIN TECHNOLOGIES INC | |
Entity Central Index Key | 0001438423 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 18,664,804 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 13,950 | $ 14,487 |
Accounts receivable, net | 6,320 | 5,799 |
Inventory | 7,944 | 7,863 |
Prepaid expenses and other current assets | 518 | 539 |
Total current assets | 28,732 | 28,688 |
Property and equipment, net | 3,077 | 3,479 |
Right-of-use assets | 2,770 | 3,132 |
Other assets | 73 | 73 |
Total assets | 34,652 | 35,372 |
Current liabilities: | ||
Accounts payable | 1,761 | 2,873 |
Accrued liabilities | 1,965 | 2,727 |
Current portion of long-term debt | 1,271 | 670 |
Operating lease liabilities | 1,613 | 1,582 |
Other liabilities | 34 | 42 |
Total current liabilities | 6,644 | 7,894 |
Long-term debt, net of current portion | 6,621 | 7,149 |
Operating lease liabilities, net of current portion | 1,426 | 1,840 |
Total liabilities | 14,691 | 16,883 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2020 and December 31, 2018 | ||
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 18,638,555 and 18,081,753 shares issued and outstanding as of March 31, 2020 and December 31, 2019 | 2 | 2 |
Additional paid-in capital | 170,353 | 167,149 |
Accumulated deficit | (150,394) | (148,662) |
Total stockholders’ equity | 19,961 | 18,489 |
Total liabilities and stockholders’ equity | $ 34,652 | $ 35,372 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Balance Sheets | ||
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 | 18,638,555 | 18,081,753 |
Common stock, shares outstanding | 18,638,555 | 18,081,753 |
Statements of Operations and Co
Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenue | $ 10,108 | $ 10,026 |
Cost of sales | 4,757 | 5,241 |
Gross profit | 5,351 | 4,785 |
Operating expenses: | ||
Research and development | 3,030 | 3,998 |
General and administrative | 2,800 | 3,595 |
Sales and marketing | 1,103 | 1,364 |
Total operating expenses | 6,933 | 8,957 |
Loss from operations | (1,582) | (4,172) |
Interest expense | (172) | (211) |
Other income, net | 22 | 127 |
Net loss and comprehensive loss | $ (1,732) | $ (4,256) |
Net loss per common share, basic and diluted | $ (0.10) | $ (0.25) |
Weighted-average shares used to compute net loss per common share, basic and diluted | 18,055,693 | 17,097,999 |
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 805 | $ 704 |
Research and development | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 162 | 147 |
General and administrative | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 585 | 509 |
Sales and marketing | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 58 | 48 |
Product sales | ||
Total revenue | 9,635 | 9,023 |
Product sales | ||
Total revenue | 9,635 | 9,023 |
Licensing, royalty and other revenue | ||
Total revenue | $ 473 | $ 1,003 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | At-the-Market Sales Agreement | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 2 | $ 158,912 | $ (133,993) | $ 24,921 | |
Balance (in shares) at Dec. 31, 2018 | 17,095,456 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock under stock incentive plans | 13 | 13 | |||
Issuance of common stock under stock incentive plans (in shares) | 12,607 | ||||
Stock-based compensation expense | 704 | 704 | |||
Net loss | (4,256) | (4,256) | |||
Balance at Mar. 31, 2019 | $ 2 | 159,629 | (138,249) | 21,382 | |
Balance (in shares) at Mar. 31, 2019 | 17,108,063 | ||||
Balance at Dec. 31, 2019 | $ 2 | 167,149 | (148,662) | 18,489 | |
Balance (in shares) at Dec. 31, 2019 | 18,081,753 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock in at-the-market offering, net of issuance costs | 2,084 | 2,084 | |||
Issuance of common stock (in shares) | 468,427 | 468,427 | |||
Issuance of common stock under stock incentive plans | 315 | 315 | |||
Issuance of common stock under stock incentive plans (in shares) | 88,375 | ||||
Stock-based compensation expense | 805 | 805 | |||
Net loss | (1,732) | (1,732) | |||
Balance at Mar. 31, 2020 | $ 2 | $ 170,353 | $ (150,394) | $ 19,961 | |
Balance (in shares) at Mar. 31, 2020 | 18,638,555 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (1,732) | $ (4,256) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 409 | 393 |
Loss on disposal of property and equipment | 20 | |
Stock-based compensation | 805 | 704 |
Non-cash gain on warrant revaluation | (6) | |
Non-cash interest expense | 73 | 81 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (521) | 1,540 |
Inventory | (81) | (562) |
Prepaid expenses and other current assets | 21 | 93 |
Accounts payable | (1,067) | (955) |
Accrued liabilities | (435) | (187) |
Lease liabilities | (21) | (20) |
Net cash used in operating activities | (2,555) | (3,149) |
Cash flows from investing activities | ||
Purchases of property and equipment | (64) | (225) |
Net cash used in investing activities | (64) | (225) |
Cash flows from financing activities | ||
Payments on debt | (1,500) | |
Payments on finance lease obligation | (2) | (3) |
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan | 13 | |
Proceeds from issuance of common stock in at-the-market offering, net of issuance costs | 2,084 | |
Net cash provided by (used in) financing activities | 2,082 | (1,490) |
Net decrease in cash and cash equivalents | (537) | (4,864) |
Cash and cash equivalents at beginning of period | 14,487 | 23,379 |
Cash and cash equivalents at end of period | 13,950 | 18,515 |
Supplementary cash flow information: | ||
Interest paid | 99 | 135 |
Operating cash flows paid for operating leases | 486 | 416 |
Financing cash flows paid for finance leases | 2 | 3 |
Non-cash investing and financing activities: | ||
Purchase of property and equipment in accounts payable and accrued liabilities | $ 20 | |
Bonus settled in shares of common stock | $ 315 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2020 | |
Organization and Nature of Business | |
Organization and Nature of Business | 1. Organization and Nature of Business Everspin Technologies, Inc. (the Company) was incorporated in Delaware on May 16, 2008. The Company’s magnetoresistive random-access memory (MRAM) solutions offer the persistence of non-volatile memory with the speed and endurance of random-access memory (RAM) and enable the protection of mission critical data particularly in the event of power interruption or failure. The Company’s MRAM solutions allow its customers in the industrial, automotive, transportation, and enterprise storage markets to design high performance, power efficient and reliable systems without the need for bulky batteries or capacitors. Ability to continue as a going concern The Company believes that its existing cash and cash equivalents as of March 31, 2020, coupled with its anticipated growth and sales levels will be sufficient to meet its anticipated cash requirements for at least the next twelve months from the financial statement issuance date. The Company’s future capital requirements will depend on many factors, including its growth rate, the timing and extent of its spending to support research and development activities, the timing and cost of establishing additional sales and marketing capabilities, and the introduction of new products. The Company may be required at some point in the future to seek additional equity or debt financing, to sustain operations beyond that point, and such additional financing may not be available on acceptable terms or at all. If the Company is unable to raise additional capital or generate sufficient cash from operations to adequately fund its operations, it will need to curtail planned activities to reduce costs. Doing so will likely harm its ability to execute on its business plan. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial information. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other interim period or for any other future year. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC. Use of Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory reserves, product warranty reserves, deferred tax assets and related valuation allowances, and stock-based compensation. The Company believes its estimates and assumptions are reasonable; however, actual results may differ from the Company’s estimates. Accounts receivable, net The Company establishes an allowance for product returns. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of products when evaluating the adequacy of sales returns. Returns are processed as credits on future purchases, as a result, the allowance is recorded against the balance of trade accounts receivable. In addition, the Company establishes an allowance for estimated price concessions related to its distributor agreements. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales. Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2020 2019 Trade accounts receivable $ 5,780 $ 5,454 Unbilled accounts receivable 653 576 Allowance for product returns and price concessions (113) (231) Accounts receivable, net $ 6,320 $ 5,799 Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by a financial institution in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. For the purposes of this disclosure, the Company defines “customer” as the entity that is purchasing the products or licenses directly from the Company, which includes the distributors of the Company’s products in addition to end customers that the Company sells to directly. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows: Revenue Accounts Receivable, net Three Months Ended As of March 31, March 31, December 31, Customers 2020 2019 2020 2019 Customer A 22 % * 35 % 41 % Customer B 12 % * 11 % 11 % Customer C 11 % 12 % * * Customer D 11 % 15 % * * Customer E * 11 % * * Customer F * 11 % * * Customer G * * 10 % * * Fair Value of Financial Instruments Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows: Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions As of March 31, 2020, based on Level 2 inputs and the borrowing rates available to the Company for loans with similar terms and consideration of the Company’s credit risk, the carrying value of the Company’s variable interest rate debt, excluding unamortized debt issuance costs, approximates fair value. The Company’s financial instruments consist of Level 1 assets and a Level 3 liability. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash equivalents. The Company’s Level 3 liability consists of warrants issued in connection with the 2019 Credit Facility (Note 6). The following tables sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 14,144 $ — $ — $ 14,144 Total assets measured at fair value $ 14,144 $ — $ — $ 14,144 Liabilities: Warrant liability $ — $ — $ 27 $ 27 Total liabilities measured at fair value $ — $ — $ 27 $ 27 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 12,367 $ — $ — $ 12,367 Total assets measured at fair value $ 12,367 $ — $ — $ 12,367 Liabilities: Warrant liability $ — $ — $ 33 $ 33 Total liabilities measured at fair value $ — $ — $ 33 $ 33 Recently Issued Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. As the Company is a smaller reporting company, ASU 2016-13 is effective for the Company’s annual reporting periods, and interim periods within those years, beginning after December 15, 2022, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements Financial Instruments-Credit Losses (Topic 326) . The new ASU provides narrow-scope amendments to help apply ASU No. 2016-13. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue. | |
Revenue | 3. Revenue The Company sells the majority of its products to its distributors, but also to original equipment manufacturers (OEMs). The Company also recognizes revenue under licensing and royalty agreements with some customers. The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Three Months Ended March 31, 2020 2019 Distributor $ 6,990 $ 7,185 Non-distributor 3,118 2,841 Total revenue $ 10,108 $ 10,026 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended March 31, 2020 2019 Point in time $ 10,043 $ 9,451 Over time 65 575 Total revenue $ 10,108 $ 10,026 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended March 31, 2020 2019 Product sales $ 9,635 $ 9,023 Royalties 408 428 Other revenue 65 575 Total revenue $ 10,108 $ 10,026 The Company recognizes revenue in three primary geographic regions: North America; Europe, Middle East and Africa (EMEA); and Asia-Pacific and Japan (APJ). The following table presents the Company’s revenues disaggregated by the geographic region to which the product is delivered or licensee is located (in thousands): Three Months Ended March 31, 2020 2019 North America $ 1,104 $ 2,189 EMEA 2,108 2,634 APJ 6,896 5,203 Total revenue $ 10,108 $ 10,026 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Balance Sheet Components Inventory Inventory consisted of the following (in thousands): March 31, December 31, 2020 2019 Raw materials $ 490 $ 119 Work-in-process 5,757 6,329 Finished goods 1,697 1,415 Total inventory $ 7,944 $ 7,863 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2020 2019 Accrued payroll-related expenses $ 819 $ 1,236 Accrued joint development agreement expenses — 170 Accrued inventory 267 87 Restructuring expenses 409 782 Other 470 452 Total accrued liabilities $ 1,965 $ 2,727 As of March 31, 2020, the Company completed the corporate restructuring activity initiated during the year ended December 31, 2019. Cash paid for employee severance and benefit arrangements in connection with the restructuring activity were $373,000 during the period ended March 31, 2020. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | 5. Leases Operating leases consist primarily of office space expiring at various dates through 2022. The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands): As of March 31, 2020 Amount 2020 (remaining nine months) $ 1,305 2021 1,763 2022 133 Total undiscounted lease payments 3,201 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Debt | 6. Debt 2019 Credit Facility In August 2019, the Company executed an Amended and Restated Loan and Security Agreement (the 2019 Credit Facility), which amended and restated the 2017 Credit Facility, providing for a formula revolving line of credit (Line of Credit) and a term loan (2019 Term Loan) with Silicon Valley Bank (SVB) to refinance in full the outstanding principal balance of $8.0 million under the 2017 Credit Facility. In August 2019, the Company paid the final payment of $0.8 million, which was due upon the refinancing of the 2017 Credit Facility. The Line of Credit allows for a maximum draw of $5.0 million, subject to a formula borrowing base, has a two-year term and bears interest at a floating rate equal to the Wall Street Journal (WSJ) prime rate plus 1.5%, per annum, subject to a floor of 6.75%. As of March 31, 2020, the interest rate was 6.75%. The Line of Credit provides for a commitment fee of 1.6% of the maximum availability of the Line of Credit, which was paid in August 2019 upon closing, and was accounted for as a debt discount. The Line of Credit also provides for a termination fee equal to 1% of the maximum availability under the Line of Credit, which is due in case of a termination of the Line of Credit prior to the scheduled maturity date, and an unused facility fee equal to 0.125% per annum of the average unused portion of the Line of Credit, which is expensed as incurred. At execution, $2.0 million from the Line of Credit was used to refinance a portion of the outstanding balance of the 2017 Credit Facility, and $3.0 million remains available under the Line of Credit, subject to borrowing base availability. As of March 31, 2020, the effective interest rate under the Line of Credit was 10.57% and the outstanding balance was $2.0 million. The 2019 Term Loan provides for a $6.0 million term loan, which was used to refinance the remaining balance of the 2017 Credit Facility. The 2019 Term Loan has a term of 42 months, and a 12-month interest only period followed by 30 months of equal principal payments, plus accrued interest. The 2019 Term Loan bears interest at a floating rate equal to the WSJ prime rate minus 0.75%, subject to a floor of 4.75%. As of March 31, 2020, the interest rate was 4.75%. A final payment of 7% of the original principal amount of the 2019 Term Loan must be made when the 2019 Term Loan is prepaid or repaid, whether at maturity or as a result of a prepayment or acceleration or otherwise. The additional payment, which is accounted for as a debt discount, is being accreted using the effective interest method. The 2019 Term Loan has a prepayment fee equal to 2% of the total commitment, which is due only if the 2019 Term Loan is prepaid prior to the scheduled maturity date for any reason. As of March 31, 2020, the effective interest rate under the 2019 Term Loan was 8.66%. In conjunction with entering into the 2019 Credit Facility, on August 5, 2019, the Company and SVB amended and restated the warrant issued to SVB in connection with the First Amendment, which was a warrant to purchase 9,375 shares of the Company’s common stock at $8.91 per share, to add an option by SVB to put the warrant back to the Company for $50,000 upon expiration or a liquidity event, to be prorated if SVB exercises a portion of the warrant. The warrant expires on July 6, 2023. As of August 5, 2019, the warrant was classified as a liability and recorded at fair value within other liabilities in the Company’s condensed balance sheet. Due to the put right, the warrant is subject to fair value remeasurement at each subsequent reporting date until the exercise or expiration of the warrant. Any resulting change in the fair value of the warrant will be recorded as other income, net in the Company’s condensed statement of operations and comprehensive loss. Collateral for the 2019 Credit Facility includes all of the Company’s assets except for intellectual property. The Company is required to comply with certain covenants under the 2019 Credit Facility, including requirements to maintain a minimum liquidity ratio, and restrictions on certain actions without the consent of the lender, such as limitations on its ability to engage in mergers or acquisitions, sell assets, incur indebtedness or grant liens or negative pledges on its assets, make loans or make other investments. Under these covenants, the Company is prohibited from paying cash dividends with respect to its capital stock. The Company was in compliance with all covenants at March 31, 2020. The 2019 Credit Facility contains a material adverse effect clause which provides that an event of default will occur if, among other triggers, an event occurs that could reasonably be expected to result in a material adverse effect on the Company’s business, operations or condition, or on the Company’s ability to perform its obligations under the term loan. As of March 31, 2020, management does not believe that it is probable that the clause will be triggered within the next 12 months, and therefore the term loan is classified as long-term. The carrying value of the Company’s 2019 Credit Facility at March 31, 2020 was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 1,400 $ 7,020 $ 8,420 Unamortized debt discounts (129) (399) (528) Net carrying value $ 1,271 $ 6,621 $ 7,892 The carrying value of the Company’s 2019 Credit Facility at December 31, 2019 was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 800 $ 7,620 $ 8,420 Unamortized debt discounts (130) (471) (601) Net carrying value $ 670 $ 7,149 $ 7,819 The table below includes the principal repayments due under the 2019 Credit Facility (in thousands): Principal Repayment as of March 31, 2020 2020 (remaining nine months) $ 800 2021 4,400 2022 2,400 2023 820 Total principal repayments $ 8,420 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders’ Equity | |
Stockholders’ Equity | 7. Stockholders’ Equity At-the-Market Sales Agreement In August 2019, the Company entered into an Open Market Sale Agreement, or the 2019 Sales Agreement, with Jefferies, LLC, or Jefferies, for the offer and sale of shares of its common stock having an aggregate offering of up to $25.0 million from time to time through Jefferies, acting as the Company’s sales agent. The issuance and sale of these shares by the Company pursuant to the 2019 Sales Agreement are deemed an “at-the-market” offering under the Securities Act of 1933, as amended. Under the 2019 Sales Agreement, the Company agreed to pay Jefferies a commission of up to 3% of the gross proceeds of any sales made pursuant to the Sales Agreement. During the three months ended March 31, 2020, the Company received net proceeds of $2.1 million after deducting commissions and expenses payable by the Company, from the sale of 468,427 shares of common stock pursuant to the 2019 Sales Agreement. As of March 31, 2020, the Company had an aggregate of $17.7 million available for future sales under the 2019 Sales Agreement. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation The following table summarizes the stock option and award activity for the three months ended March 31, 2020: Options Outstanding Weighted- Weighted- Options and Average Average Awards Exercise Remaining Aggregate Available for Number of Price Per Contractual Intrinsic Grant Options Share Life (years) Value (In thousands) Balance—December 31, 2019 638,227 1,931,903 $ 7.17 6.5 $ 188 Authorized 542,452 RSUs granted (228,013) RSUs cancelled/forfeited 24,697 Options granted (631,055) 631,055 $ 2.30 Options cancelled/forfeited 120,313 (125,834) $ 8.08 Balance—March 31, 2020 466,621 2,437,124 $ 5.86 7.5 $ 225 Options exercisable—March 31, 2020 1,133,244 $ 7.08 5.6 $ — The total grant date fair value of options vested was $799,000 and $710,000 during the three months ended March 31, 2020 and 2019, respectively. The weighted-average grant date fair value of employee options granted was $1.52 and $4.00 per share during the three months ended March 31, 2020 and 2019, respectively. 2016 Employee Stock Purchase Plan In January 2020, there was an increase of 180,817 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP). The Company had 576,817 shares available for future issuance under the Company’s ESPP as of March 31, 2020. Employees did not purchase any shares during the three months ended March 31, 2020 and 2019. Restricted Stock Units The following table summarizes Restricted Stock Units (RSUs) activity for the three months ended March 31, 2020: RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2019 211,962 $ 6.97 Granted 228,013 3.08 Vested (88,375) 5.90 Cancelled/forfeited (24,697) 7.59 Balance—March 31, 2020 326,903 $ 4.50 The fair value of RSUs is determined on the date of grant based on the market price of the Company’s common stock on that date. As of March 31, 2020, there was $1.1 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.9 years. Stock-based Compensation Expense As of March 31, 2020, there was $4.2 million of total unrecognized compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 3.1 years. Compensation cost capitalized within inventory at March 31, 2020 and at December 31, 2019 was not material. |
Significant Agreements
Significant Agreements | 3 Months Ended |
Mar. 31, 2020 | |
Significant Agreements | |
Significant Agreements | 9. Significant Agreements GLOBALFOUNDRIES, Inc. Joint Development Agreement Since October 17, 2014, the Company has participated in a joint development agreement with GLOBALFOUNDRIES Inc., a semiconductor foundry, for the joint development of STT-MRAM technology to produce of a family of discrete and embedded MRAM technologies. The term of the agreement is until the completion, termination, or expiration of the last statement of work entered into pursuant to the joint development agreement. The agreement was extended on December 31, 2019 to include a new phase of support for 12nm MRAM development. Under the current JDA extension terms, each party licenses its relevant intellectual property to the other party. For certain jointly developed works, the parties have agreed to follow an invention allocation procedure to determine ownership. In addition, GF possesses the exclusive right to manufacture the Company’s discrete and embedded STT-MRAM devices developed pursuant to the agreement until the earlier of three years after the qualification of the MRAM device for a particular technology node or four years after the completion of the relevant statement of work under which the device was developed. For the same exclusivity period associated with the relevant device, GF agreed not to license intellectual property developed in connection with the JDA to named competitors of the Company. Generally, unless otherwise specified in the agreement or a statement of work, the Company and GF share project costs, which do not include personnel or production qualification costs, under the JDA. If GF manufactures, sells or transfers to customers wafers containing production quantified STT-MRAM devices that utilize certain design information, GF will be required to pay the Company a royalty. The Company incurred project costs of $0.8 million for the three months ended March 31, 2019, which were recognized in research and development expense. No project costs were incurred during the three months ended March 31, 2020. The Company entered into a Statement of Work (SOW) and an Amendment to the SOW, under the JDA with GF effective August 2016 and June 2018, respectively. The Company is entitled to revenues under the SOW and its Amendment upon delivery and acceptance of product. The Company did not recognize any revenue from GF during the three months ended March 31, 2020 and 2019. Silterra Malaysia Sdn. Bhd. Joint Collaboration Agreement In September 2018, the Company entered into a Joint Collaboration Agreement (JCA) with Silterra Malaysia Sdn. Bhd. (Silterra), and another third party. The JCA will create additional manufacturing capacity for the Company’s Toggle MRAM products. Initial production is expected to start in 2020. Under the JCA the Company will pay non-recurring engineering costs of $1.0 million. As of March 31, 2020, the Company has paid $600,000 of JCA costs. There were no JCA costs paid for during the three months ended March 31, 2020. |
Net Loss Per Common Share
Net Loss Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Net Loss Per Common Share | |
Net Loss Per Common Share | 10. Net Loss Per Common Share The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per common share for the periods presented, because their inclusion would be anti-dilutive: Three Months Ended March 31, 2020 2019 Options to purchase common stock 2,437,124 1,796,103 Restricted stock units 326,903 168,408 Common stock warrants 27,836 27,836 Total 2,791,863 1,992,347 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial information. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other interim period or for any other future year. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the SEC. |
Use of Estimates | Use of Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory reserves, product warranty reserves, deferred tax assets and related valuation allowances, and stock-based compensation. The Company believes its estimates and assumptions are reasonable; however, actual results may differ from the Company’s estimates. |
Accounts Receivable | Accounts receivable, net The Company establishes an allowance for product returns. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of products when evaluating the adequacy of sales returns. Returns are processed as credits on future purchases, as a result, the allowance is recorded against the balance of trade accounts receivable. In addition, the Company establishes an allowance for estimated price concessions related to its distributor agreements. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales. Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2020 2019 Trade accounts receivable $ 5,780 $ 5,454 Unbilled accounts receivable 653 576 Allowance for product returns and price concessions (113) (231) Accounts receivable, net $ 6,320 $ 5,799 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by a financial institution in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. For the purposes of this disclosure, the Company defines “customer” as the entity that is purchasing the products or licenses directly from the Company, which includes the distributors of the Company’s products in addition to end customers that the Company sells to directly. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows: Revenue Accounts Receivable, net Three Months Ended As of March 31, March 31, December 31, Customers 2020 2019 2020 2019 Customer A 22 % * 35 % 41 % Customer B 12 % * 11 % 11 % Customer C 11 % 12 % * * Customer D 11 % 15 % * * Customer E * 11 % * * Customer F * 11 % * * Customer G * * 10 % * * |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows: Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions As of March 31, 2020, based on Level 2 inputs and the borrowing rates available to the Company for loans with similar terms and consideration of the Company’s credit risk, the carrying value of the Company’s variable interest rate debt, excluding unamortized debt issuance costs, approximates fair value. The Company’s financial instruments consist of Level 1 assets and a Level 3 liability. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash equivalents. The Company’s Level 3 liability consists of warrants issued in connection with the 2019 Credit Facility (Note 6). The following tables sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 14,144 $ — $ — $ 14,144 Total assets measured at fair value $ 14,144 $ — $ — $ 14,144 Liabilities: Warrant liability $ — $ — $ 27 $ 27 Total liabilities measured at fair value $ — $ — $ 27 $ 27 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 12,367 $ — $ — $ 12,367 Total assets measured at fair value $ 12,367 $ — $ — $ 12,367 Liabilities: Warrant liability $ — $ — $ 33 $ 33 Total liabilities measured at fair value $ — $ — $ 33 $ 33 |
Recently Adopted Pronouncements and Recently Issued Pronouncements | Recently Issued Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. As the Company is a smaller reporting company, ASU 2016-13 is effective for the Company’s annual reporting periods, and interim periods within those years, beginning after December 15, 2022, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements Financial Instruments-Credit Losses (Topic 326) . The new ASU provides narrow-scope amendments to help apply ASU No. 2016-13. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of accounts receivable net | Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2020 2019 Trade accounts receivable $ 5,780 $ 5,454 Unbilled accounts receivable 653 576 Allowance for product returns and price concessions (113) (231) Accounts receivable, net $ 6,320 $ 5,799 |
Schedule of revenue and accounts receivable for each significant customer | Revenue Accounts Receivable, net Three Months Ended As of March 31, March 31, December 31, Customers 2020 2019 2020 2019 Customer A 22 % * 35 % 41 % Customer B 12 % * 11 % 11 % Customer C 11 % 12 % * * Customer D 11 % 15 % * * Customer E * 11 % * * Customer F * 11 % * * Customer G * * 10 % * * |
Schedule of fair value of financial assets and liabilities measured on recurring basis | The following tables sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 14,144 $ — $ — $ 14,144 Total assets measured at fair value $ 14,144 $ — $ — $ 14,144 Liabilities: Warrant liability $ — $ — $ 27 $ 27 Total liabilities measured at fair value $ — $ — $ 27 $ 27 December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 12,367 $ — $ — $ 12,367 Total assets measured at fair value $ 12,367 $ — $ — $ 12,367 Liabilities: Warrant liability $ — $ — $ 33 $ 33 Total liabilities measured at fair value $ — $ — $ 33 $ 33 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue. | |
Schedule of disaggregation of revenue | The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Three Months Ended March 31, 2020 2019 Distributor $ 6,990 $ 7,185 Non-distributor 3,118 2,841 Total revenue $ 10,108 $ 10,026 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended March 31, 2020 2019 Point in time $ 10,043 $ 9,451 Over time 65 575 Total revenue $ 10,108 $ 10,026 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended March 31, 2020 2019 Product sales $ 9,635 $ 9,023 Royalties 408 428 Other revenue 65 575 Total revenue $ 10,108 $ 10,026 The Company recognizes revenue in three primary geographic regions: North America; Europe, Middle East and Africa (EMEA); and Asia-Pacific and Japan (APJ). The following table presents the Company’s revenues disaggregated by the geographic region to which the product is delivered or licensee is located (in thousands): Three Months Ended March 31, 2020 2019 North America $ 1,104 $ 2,189 EMEA 2,108 2,634 APJ 6,896 5,203 Total revenue $ 10,108 $ 10,026 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, 2020 2019 Raw materials $ 490 $ 119 Work-in-process 5,757 6,329 Finished goods 1,697 1,415 Total inventory $ 7,944 $ 7,863 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2020 2019 Accrued payroll-related expenses $ 819 $ 1,236 Accrued joint development agreement expenses — 170 Accrued inventory 267 87 Restructuring expenses 409 782 Other 470 452 Total accrued liabilities $ 1,965 $ 2,727 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Schedule of future lease payments | The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands): As of March 31, 2020 Amount 2020 (remaining nine months) $ 1,305 2021 1,763 2022 133 Total undiscounted lease payments 3,201 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt | |
Summary of debt | The carrying value of the Company’s 2019 Credit Facility at March 31, 2020 was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 1,400 $ 7,020 $ 8,420 Unamortized debt discounts (129) (399) (528) Net carrying value $ 1,271 $ 6,621 $ 7,892 The carrying value of the Company’s 2019 Credit Facility at December 31, 2019 was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 800 $ 7,620 $ 8,420 Unamortized debt discounts (130) (471) (601) Net carrying value $ 670 $ 7,149 $ 7,819 |
Summary of principal repayments of credit facility | The table below includes the principal repayments due under the 2019 Credit Facility (in thousands): Principal Repayment as of March 31, 2020 2020 (remaining nine months) $ 800 2021 4,400 2022 2,400 2023 820 Total principal repayments $ 8,420 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation | |
Summary of stock option activity | Options Outstanding Weighted- Weighted- Options and Average Average Awards Exercise Remaining Aggregate Available for Number of Price Per Contractual Intrinsic Grant Options Share Life (years) Value (In thousands) Balance—December 31, 2019 638,227 1,931,903 $ 7.17 6.5 $ 188 Authorized 542,452 RSUs granted (228,013) RSUs cancelled/forfeited 24,697 Options granted (631,055) 631,055 $ 2.30 Options cancelled/forfeited 120,313 (125,834) $ 8.08 Balance—March 31, 2020 466,621 2,437,124 $ 5.86 7.5 $ 225 Options exercisable—March 31, 2020 1,133,244 $ 7.08 5.6 $ — |
Schedule of restricted stock unit activity | RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2019 211,962 $ 6.97 Granted 228,013 3.08 Vested (88,375) 5.90 Cancelled/forfeited (24,697) 7.59 Balance—March 31, 2020 326,903 $ 4.50 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Net Loss Per Common Share | |
Schedule of potentially dilutive securities excluded from diluted net loss per common share | Three Months Ended March 31, 2020 2019 Options to purchase common stock 2,437,124 1,796,103 Restricted stock units 326,903 168,408 Common stock warrants 27,836 27,836 Total 2,791,863 1,992,347 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable | ||
Trade accounts receivable | $ 5,780 | $ 5,454 |
Unbilled accounts receivable | 653 | 576 |
Allowance for product returns and price concessions | (113) | (231) |
Accounts receivable, net | $ 6,320 | $ 5,799 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable for Each Significant Customer (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue | Customer A | |||
Concentration risk | |||
Concentration risk percentage | 22.00% | ||
Revenue | Customer A | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | ||
Revenue | Customer B | |||
Concentration risk | |||
Concentration risk percentage | 12.00% | ||
Revenue | Customer B | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | ||
Revenue | Customer C | |||
Concentration risk | |||
Concentration risk percentage | 11.00% | 12.00% | |
Revenue | Customer D | |||
Concentration risk | |||
Concentration risk percentage | 11.00% | 15.00% | |
Revenue | Customer E | |||
Concentration risk | |||
Concentration risk percentage | 11.00% | ||
Revenue | Customer E | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | ||
Revenue | Customer F | |||
Concentration risk | |||
Concentration risk percentage | 11.00% | ||
Revenue | Customer F | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | ||
Revenue | Customer G | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% | |
Accounts Receivable | Customer A | |||
Concentration risk | |||
Concentration risk percentage | 35.00% | 41.00% | |
Accounts Receivable | Customer B | |||
Concentration risk | |||
Concentration risk percentage | 11.00% | 11.00% | |
Accounts Receivable | Customer C | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% | |
Accounts Receivable | Customer D | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% | |
Accounts Receivable | Customer E | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% | |
Accounts Receivable | Customer F | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% | |
Accounts Receivable | Customer G | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | ||
Accounts Receivable | Customer G | Maximum | |||
Concentration risk | |||
Concentration risk percentage | 10.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Level 3 | ||
Fair Value | ||
Warrant liability | $ 33 | |
Total liabilities measured at fair value | 33 | |
Recurring | ||
Fair Value | ||
Total assets measured at fair value | $ 14,144 | 12,367 |
Warrant liability | 27 | 33 |
Total liabilities measured at fair value | 27 | 33 |
Recurring | Level 1 | ||
Fair Value | ||
Total assets measured at fair value | 14,144 | 12,367 |
Recurring | Level 3 | ||
Fair Value | ||
Warrant liability | 27 | |
Total liabilities measured at fair value | 27 | |
Recurring | Money market funds | ||
Fair Value | ||
Money market funds | 14,144 | 12,367 |
Recurring | Money market funds | Level 1 | ||
Fair Value | ||
Money market funds | $ 14,144 | $ 12,367 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recently issued pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Recently Issued Pronouncement | ||
Right-of-use assets | $ 2,770 | $ 3,132 |
Revenue - Disaggregated by Sale
Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Revenue | $ 10,108 | $ 10,026 |
Distributor | ||
Disaggregation of Revenue | ||
Revenue | 6,990 | 7,185 |
Non-distributor | ||
Disaggregation of Revenue | ||
Revenue | $ 3,118 | $ 2,841 |
Revenue - Disaggregated by Timi
Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Revenue | $ 10,108 | $ 10,026 |
Point in time | ||
Disaggregation of Revenue | ||
Revenue | 10,043 | 9,451 |
Over time | ||
Disaggregation of Revenue | ||
Revenue | $ 65 | $ 575 |
Revenue - Disaggregated by Type
Revenue - Disaggregated by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue | ||
Revenue | $ 10,108 | $ 10,026 |
Product sales | ||
Disaggregation of Revenue | ||
Revenue | 9,635 | 9,023 |
Royalties | ||
Disaggregation of Revenue | ||
Revenue | 408 | 428 |
Other revenue | ||
Disaggregation of Revenue | ||
Revenue | $ 65 | $ 575 |
Revenue - Disaggregated by Geog
Revenue - Disaggregated by Geographic Region (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)region | Mar. 31, 2019USD ($) | |
Disaggregation of Revenue | ||
Number of primary geographic regions | region | 3 | |
Revenue | $ 10,108 | $ 10,026 |
North America | ||
Disaggregation of Revenue | ||
Revenue | 1,104 | 2,189 |
EMEA | ||
Disaggregation of Revenue | ||
Revenue | 2,108 | 2,634 |
APJ | ||
Disaggregation of Revenue | ||
Revenue | $ 6,896 | $ 5,203 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory | ||
Raw materials | $ 490 | $ 119 |
Work-in-process | 5,757 | 6,329 |
Finished goods | 1,697 | 1,415 |
Total inventory | $ 7,944 | $ 7,863 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Accrued liabilities | ||
Accrued payroll-related expenses | $ 819 | $ 1,236 |
Accrued joint development agreement expenses | 170 | |
Accrued inventory | 267 | 87 |
Restructuring expenses | 409 | 782 |
Other | 470 | 452 |
Total accrued liabilities | 1,965 | $ 2,727 |
Payment of employee severance and benefit arrangements | $ 373 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Future operating lease payments | ||
2020 (remaining nine months) | $ 1,305 | |
2021 | 1,763 | |
2022 | 133 | |
Total undiscounted lease payments | 3,201 | |
Less: Current portion of operating lease liabilities | (1,613) | $ (1,582) |
Total operating lease liabilities, net of current portion | $ 1,426 | $ 1,840 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | Aug. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2019 |
Debt | |||||
Outstanding balance | $ 2,000 | ||||
2017 Credit Facility | |||||
Debt | |||||
Repayment of credit facility | $ 800 | ||||
Principal amount | $ 8,000 | ||||
2019 Credit Facility | |||||
Debt | |||||
Number of shares the warrant can be converted to | 9,375 | ||||
Warrant exercise price | $ 8.91 | ||||
Amount bank could receive if takes the option to put the warrants upon expiration or a liquidity event | $ 50 | ||||
Principal amount | $ 8,420 | $ 8,420 | |||
2019 Credit Facility | Prime Rate | |||||
Debt | |||||
Effective interest rate | 4.75% | ||||
2019 Credit Facility - Revolving Line Of Credit | |||||
Debt | |||||
Loan agreement amount | $ 5,000 | ||||
Agreement term | 2 years | ||||
Interest rate, basis spread percentage | 1.50% | ||||
Effective interest rate | 10.57% | ||||
Commitment fee (as a percentage) | 1.60% | ||||
Termination fee (as a percentage) | 1.00% | ||||
Unused facility fee (as a percentage) | 0.125% | ||||
Debt amount | $ 2,000 | ||||
Remaining availability | $ 3,000 | ||||
2019 Credit Facility - Revolving Line Of Credit | Prime Rate | Minimum | |||||
Debt | |||||
Interest rate, basis spread percentage | 6.75% | ||||
Effective interest rate | 6.75% | ||||
2019 Credit Facility - Term Loan | |||||
Debt | |||||
End-of-term fee (as a percent) | 7.00% | ||||
Agreement term | 42 months | ||||
Effective interest rate | 8.66% | ||||
Prepayment fee (as a percentage) | 2.00% | ||||
Debt amount | $ 6,000 | ||||
Number of months of interest only payment | 12 months | ||||
Number of months of equal principal payments plus accrued interest | 30 months | ||||
2019 Credit Facility - Term Loan | Prime Rate | |||||
Debt | |||||
Interest rate, negative basis spread percentage | 0.75% | ||||
Effective interest rate | 4.75% |
Debt - Carrying Value (Details)
Debt - Carrying Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt | ||
Net carrying value of debt, Current Portion | $ 1,271 | $ 670 |
Net carrying value of debt, Long-term debt | 6,621 | 7,149 |
2019 Credit Facility | ||
Debt | ||
Debt, Current Portion | 1,400 | 800 |
Less: Debt issuance costs, Current Portion | (129) | (130) |
Net carrying value of debt, Current Portion | 1,271 | 670 |
Debt, including end of term fee, Long-term debt | 7,020 | 7,620 |
Less: Unamortized debt discounts, Long-term debt | (399) | (471) |
Net carrying value of debt, Long-term debt | 6,621 | 7,149 |
Total principal amount | 8,420 | 8,420 |
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Total | (528) | (601) |
Net carrying value of debt, Total | $ 7,892 | $ 7,819 |
Debt - Summary of Principal Rep
Debt - Summary of Principal Repayments of 2019 Credit Facility (Details) - 2019 Credit Facility - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt | ||
2020 (remaining nine months) | $ 800 | |
2021 | 4,400 | |
2022 | 2,400 | |
2023 | 820 | |
Total principal amount | $ 8,420 | $ 8,420 |
Stockholders' Equity - (Details
Stockholders' Equity - (Details) - At-the-Market Sales Agreement - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Aug. 31, 2019 | Mar. 31, 2020 | |
Common stock reserved | ||
Maximum amount of shares for offering | $ 25 | |
Maximum commission percentage | 3.00% | |
Net proceeds | $ 2.1 | |
Number of shares sold | 468,427 | |
Shares available for future issuance | $ 17.7 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Options and Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Stock-based compensation | ||
Options and Awards Available for Grant, Outstanding, Beginning balance | 638,227 | |
Options and Awards Available for Grant, Options authorized | 542,452 | |
Options and Awards Available for Grant, RSUs granted | (228,013) | |
Options Available for Grant, RSUs cancelled/forfeited | 24,697 | |
Options and Awards Available for Grant, Options granted | (631,055) | |
Options and Awards Available for Grant, Options cancelled/forfeited | 120,313 | |
Options and Awards Available for Grant, Outstanding, Ending balance | 466,621 | 638,227 |
Number of Options, Outstanding, Beginning balance | 1,931,903 | |
Number of Options, Options granted | 631,055 | |
Number of Options, Options cancelled/forfeited | (125,834) | |
Number of Options, Outstanding, Ending balance | 2,437,124 | 1,931,903 |
Number of Options, exercisable | 1,133,244 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance | $ 7.17 | |
Weighted - Average Exercise Price Per Share, Options granted | 2.30 | |
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited | 8.08 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance | 5.86 | $ 7.17 |
Weighted - Average Exercise Price Per Share, Options exercisable | $ 7.08 | |
Weighted - Average Remaining Contractual Life, Options outstanding | 7 years 6 months | 6 years 6 months |
Weighted - Average Remaining Contractual Life, Options exercisable | 5 years 7 months 6 days | |
Aggregate Intrinsic Value, Options outstanding | $ 225 | $ 188 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation | ||||
Total grant date fair value of options vested | $ 799 | $ 710 | ||
Shares available for future issuance (in shares) | 466,621 | 638,227 | ||
Value of share issued | $ 315 | $ 13 | ||
Weighted-average exercise price (per share) | $ 5.86 | $ 7.17 | ||
Number of stock options granted (in shares) | 631,055 | |||
Options remained outstanding | 2,437,124 | 1,931,903 | ||
Employees | ||||
Share-based Compensation | ||||
Weighted-average grant date fair value of options granted | $ 1.52 | $ 4 | ||
2016 Employee Stock Purchase Plan | ||||
Share-based Compensation | ||||
Increase in number of shares available for grant | 180,817 | |||
Shares available for future issuance (in shares) | 576,817 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 4.2 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 3 years 1 month 6 days |
Restricted stock units | |
Number of Restricted Stock Units | |
Balance, beginning of period | shares | 211,962 |
Granted | shares | 228,013 |
Vested | shares | (88,375) |
Cancelled/forfeited | shares | (24,697) |
Balance, end of period | shares | 326,903 |
Weighted Average Exercise Price Per Share | |
Balance, beginning of period (price per share) | $ / shares | $ 6.97 |
Granted (price per share) | $ / shares | 3.08 |
Vested (price per share) | $ / shares | 5.90 |
Cancelled/forfeited (price per share) | $ / shares | 7.59 |
Balance, end of period (price per share) | $ / shares | $ 4.50 |
2016 Employee Incentive Plan | Restricted stock units | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 1.1 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 10 months 24 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Stock-Based Compensation | |
Unrecognized stock-based compensation expense | $ 4.2 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 3 years 1 month 6 days |
Significant Agreements (Details
Significant Agreements (Details) - USD ($) $ in Thousands | Oct. 17, 2014 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 |
Joint development agreement | |||||
Research and development expense | $ 3,030 | $ 3,998 | |||
Common Stock | |||||
Joint development agreement | |||||
Number of shares sold | 468,427 | ||||
Joint Development Agreement | Global Foundries, Inc. | |||||
Joint development agreement | |||||
Period of possession of exclusive right to manufacture after qualification of device | 3 years | ||||
Period of possession of exclusive right to manufacture after completion of device development work | 4 years | ||||
Research and development expense | $ 0 | 800 | |||
Milestone revenue | 0 | $ 0 | |||
Collaborative Agreement | Silterra | |||||
Joint development agreement | |||||
Non-recurring engineering cost obligation | $ 1,000 | ||||
JCA costs | $ 0 | $ 600 |
Net Loss Per Common Share - Com
Net Loss Per Common Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net loss | $ (1,732) | $ (4,256) |
Denominator: | ||
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted | 18,055,693 | 17,097,999 |
Net loss per common share, basic and diluted | $ (0.10) | $ (0.25) |
Net Loss Per Common Share - Sch
Net Loss Per Common Share - Schedule of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Common Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 2,791,863 | 1,992,347 |
Options to purchase common stock | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 2,437,124 | 1,796,103 |
Restricted stock units | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 326,903 | 168,408 |
Common stock warrants | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 27,836 | 27,836 |