Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Document And Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-37900 | ||
Entity Registrant Name | Everspin Technologies, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-2640654 | ||
Entity Address, Address Line One | 5670 W. Chandler Boulevard | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Chandler | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85226 | ||
City Area Code | 480 | ||
Local Phone Number | 347-1111 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 | ||
Trading Symbol | MRAM | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Phoenix, Arizona | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 19,892,838 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001438423 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 118.4 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 21,409 | $ 14,599 |
Accounts receivable, net | 8,193 | 7,607 |
Inventory | 6,396 | 5,721 |
Prepaid expenses and other current assets | 762 | 270 |
Total current assets | 36,760 | 28,197 |
Property and equipment, net | 973 | 1,946 |
Right-of-use assets | 913 | 2,313 |
Other assets | 734 | 73 |
Total assets | 39,380 | 32,529 |
Current liabilities: | ||
Accounts payable | 1,776 | 2,224 |
Accrued liabilities | 3,579 | 2,232 |
Deferred revenue | 832 | |
Current portion of long-term debt | 3,370 | 4,242 |
Operating lease liabilities | 724 | 1,508 |
Other liabilities | 50 | 31 |
Total current liabilities | 10,331 | 10,237 |
Long-term debt, net of current portion | 1,529 | 3,748 |
Operating lease liabilities, net of current portion | 68 | 903 |
Long-term income tax liability | 214 | 229 |
Total liabilities | 12,142 | 15,117 |
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 December 31, 2021 and December 31, 2020 | ||
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 19,858,460 and 19,031,556 shares issued and outstanding as of December 31, 2021 and 2020 | 2 | 2 |
Additional paid-in capital | 180,067 | 174,584 |
Accumulated deficit | (152,831) | (157,174) |
Total stockholders' equity | 27,238 | 17,412 |
Total liabilities and stockholders' equity | $ 39,380 | $ 32,529 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 19,858,460 | 19,031,556 |
Common stock, shares outstanding | 19,858,460 | 19,031,556 |
Statements of Operations and Co
Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Total revenue | $ 55,146 | $ 42,031 |
Total cost of sales | 22,074 | 23,942 |
Gross profit | 33,072 | 18,089 |
Operating expenses: | ||
Research and development | 12,628 | 10,896 |
General and administrative | 10,949 | 10,773 |
Sales and marketing | 4,460 | 3,983 |
Total operating expenses | 28,037 | 25,652 |
Income (loss) from operations | 5,035 | (7,563) |
Interest expense | (547) | (665) |
Other expense, net | (141) | (24) |
Net income (loss) before income taxes | 4,347 | (8,252) |
Income tax expense | (4) | (260) |
Net income (loss) and comprehensive income (loss) | $ 4,343 | $ (8,512) |
Net income (loss) per share attributable to common share, basic | $ 0.22 | $ (0.45) |
Net income (loss) per common share, diluted | $ 0.22 | $ (0.45) |
Weighted average common shares used to compute net income (loss) per common share attributable to common stockholders, basic | 19,400,124 | 18,782,287 |
Weighted average common shares used to compute net income (loss) per common share attributable to common stockholders, diluted | 19,972,145 | 18,782,287 |
Product sales | ||
Total revenue | $ 43,931 | $ 39,848 |
Total cost of sales | 21,045 | 23,746 |
Product Non Affiliate Member | ||
Total revenue | 43,931 | 39,848 |
Licensing, royalty, patent and other revenue | ||
Total revenue | 11,215 | 2,183 |
Total cost of sales | $ 1,029 | $ 196 |
Statements of Operations and _2
Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 3,227 | $ 3,968 |
Research and Development [Member] | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 1,280 | 903 |
General and Administrative [Member] | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 1,465 | 2,710 |
Sales and Marketing [Member] | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 482 | $ 355 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
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 under stock incentive plans | 1,595 | 1,595 | ||
Issuance of common stock under stock incentive plans (in shares) | 481,376 | |||
Stock-based compensation expense | 3,604 | 3,604 | ||
Issuance of common stock in at-the-market offering, net of issuance costs | 2,084 | 2,084 | ||
Issuance of common stock in at-the-market offering, net of issuance costs (in shares) | 468,427 | |||
Issuance of warrant | 152 | 152 | ||
Net income (loss) | (8,512) | (8,512) | ||
Balance at Dec. 31, 2020 | $ 2 | 174,584 | (157,174) | $ 17,412 |
Balance (in shares) at Dec. 31, 2020 | 19,031,556 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (in shares) | 321,694 | |||
Issuance of common stock under stock incentive plans | 2,256 | $ 2,256 | ||
Issuance of common stock under stock incentive plans (in shares) | 805,441 | |||
Stock-based compensation expense | 3,227 | 3,227 | ||
Exercise of warrants (in shares) | 21,463 | |||
Net income (loss) | 4,343 | 4,343 | ||
Balance at Dec. 31, 2021 | $ 2 | $ 180,067 | $ (152,831) | $ 27,238 |
Balance (in shares) at Dec. 31, 2021 | 19,858,460 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net income (loss) | $ 4,343 | $ (8,512) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,455 | 1,982 |
Loss on disposal of property and equipment | 30 | |
Stock-based compensation | 3,227 | 3,968 |
Non-cash warrant revaluation | 19 | (2) |
Non-cash interest expense | 319 | 323 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (586) | (1,808) |
Inventory | (675) | 2,142 |
Prepaid expenses and other current assets | (492) | 269 |
Other assets | 11 | |
Accounts payable | (571) | (820) |
Accrued liabilities | 1,696 | (303) |
Deferred revenue | 832 | |
Lease liabilities | (219) | (192) |
Net cash provided by (used in) operating activities | 9,359 | (2,923) |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,030) | (320) |
Net cash used in investing activities | (1,030) | (320) |
Cash flows from financing activities | ||
Payments on long-term debt | (3,400) | |
Payments of debt issuance costs | (11) | |
Payments on finance lease obligation | (9) | |
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan | 1,892 | 1,280 |
Proceeds from issuance of common stock in at-the-market offering, net of issuance costs | 2,084 | |
Net cash (used in) provided by financing activities | (1,519) | 3,355 |
Net decrease in cash and cash equivalents | 6,810 | 112 |
Cash and cash equivalents at beginning of period | 14,599 | 14,487 |
Cash and cash equivalents at end of period | 21,409 | 14,599 |
Supplementary cash flow information: | ||
Interest paid | 228 | 342 |
Operating cash flows paid for operating leases | 1,603 | 1,736 |
Financing cash flows paid for finance leases | 9 | |
Non-cash investing and financing activities: | ||
Increase of right-of-use asset and lease liability due to lease modification | 545 | |
Purchases of property and equipment in accounts payable and accrued liabilities | 340 | 216 |
Bonus settled in shares of common stock | $ 364 | 315 |
Issuance of warrant with debt | $ 152 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization and Operations | |
Organization and Operations | 1. Organization and Operations 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 key markets, such as industrial, medical, automotive/transportation, aerospace, and data center, 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 December 31, 2021, coupled with its anticipated growth and sales levels and availability under its credit facility, will be sufficient to meet its anticipated cash requirements for at least the next 12 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 | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of the 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 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 net realizable value, 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. Segments The Company’s chief operating decision maker is its Interim Chief Executive Officer who reviews financial information for purposes of allocating resources and evaluating financial performance for the entire Company. As a result, the Company has single operating and reportable segment. Cash and Cash Equivalents The Company considers all highly liquid, short-term investments with maturity dates of 90 days or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist solely of money market funds. Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances would be provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers a number of factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances would be charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s evaluation determined that no material allowance for doubtful accounts was necessary at December 31, 2021 and 2020. The unbilled accounts receivable is an estimate of consideration to which the Company expects to be entitled for uses of the Company’s intellectual property. Certain customers report on a lagged basis and actual information is not available timely. The estimates recorded are based on historical trends in the customer’s usage and current market conditions. At December 31, 2021 and 2020, the unbilled accounts receivable balance was $450,000 and $255,000, respectively. 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 and, as a result, the allowance is recorded against the balance of trade accounts receivable. In addition, the Company from time to time may establish an allowance for estimated price adjustments related to its distributor agreements. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales and evaluation of current market conditions. At December 31, 2021 and 2020, the allowance for product returns and price adjustments was $397,000 and $238,000, respectively. Accounts receivable, net consisted of the following (in thousands): December 31, 2021 2020 Trade accounts receivable $ 8,140 $ 7,590 Unbilled accounts receivable 450 255 Allowance for product returns and price adjustments (397) (238) Accounts receivable, net $ 8,193 $ 7,607 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 Year Ended December 31, December 31, Customers 2021 2020 2021 2020 Customer A % * % 29 % * % 29 % Customer B % 22 % 11 % 54 % 25 % * Less than 10% Inventory Inventory is valued at the lower of cost, using the first-in, first-out or net realizable value. The carrying value of inventory is adjusted for excess and obsolescence based on the Company’s evaluation which takes into consideration historical and expected future demand, the effect new products may have on the sale of existing products, technological obsolescence, and other factors including inventory age and shipment. At the point of loss recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that new cost basis. 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 Level 2 Level 3 The carrying value of accounts receivable, accounts payable, and other accruals readily convertible into cash approximate fair value because of the short-term nature of the instruments. As of December 31, 2021, 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 (as defined in Note 6). The change in the fair value of the warrant liability during the year ended December 31, 2021 was immaterial. 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): December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 21,508 $ — $ — $ 21,508 Total assets measured at fair value $ 21,508 $ — $ — $ 21,508 Liabilities: Warrant liability $ — $ — $ 50 $ 50 Total liabilities measured at fair value $ — $ — $ 50 $ 50 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 14,669 $ — $ — $ 14,669 Total assets measured at fair value $ 14,669 $ — $ — $ 14,669 Liabilities: Warrant liability $ — $ — $ 31 $ 31 Total liabilities measured at fair value $ — $ — $ 31 $ 31 Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation begins at the time the asset is placed in service. Maintenance and repairs are charged to operations as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives of the assets: Useful Lives Computer and network equipment 2 years Manufacturing equipment 2 – 7 years Furniture and fixtures 7 years Software 3 years Leasehold improvements 2 years (not to exceed the lease life) Costs incurred to develop software for internal use during the application development phase are capitalized and amortized over such software’s estimated useful life. Costs related to the design or maintenance of internal-use software are included in operating expenses as incurred. Upon sale or retirement of assets, the cost and related accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in operations. Amortization expense of assets acquired through finance leases is included in the statements of operations and comprehensive income (loss). Impairment of Long-lived Assets The Company evaluates its long-lived assets, including property and equipment, at the asset group level, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. If such events or changes in circumstances occur, for purposes of this assessment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by comparison of the carrying amount of each asset group to the future undiscounted cash flows the asset group is expected to generate over its remaining life. If the asset group is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. There have been no impairments of the Company’s long-lived assets during either of the periods presented. Leases The Company leases office, lab, manufacturing space and equipment in various locations with initial lease terms of up to seven years. These leases require monthly lease payments that may renew extend two The Company determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The classification of the Company’s leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at commencement date, to determine the present value of lease payments when its leases do not provide an implicit rate. The Company uses the implicit rate when readily determinable. The ROU asset is based on the measurement of the lease liability, includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs incurred, as applicable. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. Amortization expense for ROU assets associated with finance leases is recognized on a straight-line basis over the shorter of the useful life of the asset or the lease term and interest expense associated with finance leases is recognized on the balance of the lease liability using the effective interest method based on the estimated incremental borrowing rate. The Company has lease agreements with lease and non-lease components. The Company has elected to not separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has elected to separate lease and non-lease components for any leases involving manufacturing facility classes of assets. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to leases with terms of 12 months or less (short-term leases) for all classes of assets. As of December 31, 2021, the Company did not have any short-term leases. Operating leases are included in right-of-use assets, operating lease liabilities, and operating lease liabilities, net of current portion in the Company’s balance sheet. Finance leases are included in property and equipment, net, other liabilities, and other long-term liabilities in the Company’s balance sheet. Debt Issuance Costs The Company defers and amortizes issuance costs, underwriting fees, end of term payments, and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs are reflected as a direct reduction of the carrying amount of the related debt liability. Revenue Recognition The Company recognizes revenue when a customer obtains control of the promised products or services, in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of allowances for returns and price adjustments, and any taxes imposed on specific revenue-producing transactions, which are subsequently remitted to governmental authorities. Nature of Products and Services The Company’s revenue is derived from the sale of MRAM-based products in discrete unit form, licenses of and royalties on its MRAM and magnetic sensor technology, the sale of backend foundry services and design services to third parties. Sales of products in discrete unit form are recognized at a point in time, revenue related to licensing agreements is recognized when the Company has delivered control of the technology, revenue related to royalty agreements is recognized in the period in which sales generated from products sold using the Company’s technology occurs, sales of backend foundry services are recognized over time, and design services to third parties are recognized either at a point in time or over time, depending on the nature of the services. Product Revenue For products sold in their discrete form, the Company either sells its products directly to original equipment manufacturers (OEMs), original design manufacturers (ODMs) and contract manufacturers (CMs), or through a network of distributors, who in turn sell to those customers. For sales directly to OEMs, ODMs and CMs, revenue is recognized when the OEM, ODM or CM obtains control of the product, which occurs at a point in time, generally upon shipment to the customer. Contracts for sales of products are generally less than one year. The Company sells a majority of its products to their distributors at a uniform list price. However, distributors may resell products to end customers at a very broad range of individually negotiated price points. From time to time, the Company may provide distributors with price adjustments subsequent to the delivery of product to them and such amounts are dependent on the end customer and product sales price. Price adjustments can be based on a variety of factors, including customer, product, quantity, geography, and competitive differentiation. Price protection rights grant distributors the right to a credit in the event of declines in the price of the Company’s products. Under these circumstances, the Company remits back to the distributor a portion of their original purchase price after the resale transaction is completed in the form of a credit against the distributors’ outstanding accounts receivable balance. The credits are on a per unit basis and are not given to the distributor until the distributor provides information regarding the sale to their end customer. The Company estimates these credits and record such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of an allowance for price adjustments for amounts due to distributors. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales and evaluation of current market conditions. Revenue on shipments to distributors is recorded when control of the products has been transferred to the distributor. The Company estimates the amount of our product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company estimates its product return liability by analyzing its historical returns, current economic trends and changes in customer demand and acceptance of products. The Company has received insignificant returns to date and believes that returns of its products will continue to be minimal. Upon the transfer of control, generally at shipment, the Company records a trade receivable for the selling price as there is a legally enforceable obligation of the distributor to pay for the product delivered, an allowance is recorded for the estimated discount that will be provided to the distributor, and the net of these amounts is recorded as revenue on the statement of operations. License Revenue For licenses of technology, recognition of revenue is dependent upon whether the Company has delivered rights to the technology, and whether there are future performance obligations under the contract. In some instances, the license agreements call for future events or activities to occur in order for milestones amounts to become due from the customer. The terms of such agreements include payment to the Company of one or more of the following: non-refundable upfront fees; and royalties on net sales of licensed products. Historically, these license agreements have not included other future performance obligations for the Company once the license has been transferred to the customer. Revenue from non-refundable upfront payments is recognized when the license is transferred to the customer and the Company has no other performance obligations. The Company also entered into a contractual agreement with a customer in 2021 for the development of a RAD-Hard product, consisting of a technology license, a design license agreement and development contract. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. The Company concluded these contractual arrangements represent one arrangement and evaluated its promises to the customer and whether the performance obligations granted under the arrangement were distinct. The licenses provided to the customer are not transferable, are of limited value without the promised development services, and the customer cannot benefit from the license agreements without the specific obligated services in the development subcontract, as there is strong interdependency between the licenses and the development subcontract. Accordingly, the Company determined the licenses were not distinct within the context of the contract and combined the license with other performance obligations. As a result, the Company is recognizing revenue related to the performance obligations over time using the input method based on costs incurred to date relative to the total expected costs of the contract over the performance obligation period. Patents In an effort to monetize on its intellectual property, the Company may sell patents to customers. The performance obligations are satisfied at the point in time at which the customer obtains control of the patents. Royalties Revenue from sales-based royalties from licenses of the Company’s technology are recognized at the later of when (1) the sale occurs or (2) the performance obligation to which some or all of the sales-based royalty has been allocated is satisfied (in whole or in part). The Company will record an unbilled receivable (within accounts receivable, net) for the portion of sales-based royalties that have been earned, but not invoiced at the end of each reporting period. Other Revenue For certain revenue streams, the Company recognizes revenue based on the pattern of transfer of the services. The Company uses the input method of measuring costs incurred to date compared to total estimated costs to be incurred under the contract as this method most faithfully depicts its performance. The Company will record an unbilled receivable (within accounts receivable, net) for the portion of the work that has been completed but not invoiced at the end of each reporting period. At the inception of each agreement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price by using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates the probability or achievement of each such milestone and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. Product Warranty The Company generally sells products with a limited warranty of product quality and a limited indemnification of customers against intellectual property infringement claims related to the Company’s products. The Company accrues for known warranty and indemnification issues if a loss is probable and can be reasonably estimated and accrues for estimated losses incurred for unidentified issues based on historical experience. A warranty liability was not recorded at December 31, 2021 and 2020, as the estimated future warranty costs were not material based on the Company’s historical experience. Research and Development Research and development expenses are incurred in support of internal development programs or as part of the Company’s joint development agreement with GLOBALFOUNDRIES and joint collaboration agreement with Silterra Malaysia Sdn. Bhd. (see Note 10). Research and development expenses include personnel-related costs (including stock-based compensation), circuit design costs, purchases of materials and laboratory supplies, fabrication and packaging of experimental integrated circuit products, depreciation of research and development related capital equipment and overhead and are expensed as incurred. Stock-based Compensation Stock-based compensation arrangements include stock option grants and restricted stock unit (RSU) awards under the Company’s equity incentive plans, as well as shares issued under the Company’s Employee Stock Purchase Plan (ESPP), through which employees may purchase the Company’s common stock at a discount to the market price. The Company measures its stock option grants based on the estimated fair value of the options as of the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service period using the straight-line method. The Company accounts for forfeitures as they occur. Expected volatility. Risk-free interest rate. Expected term. Dividend yield. Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits, as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period less shares subject to repurchase, without consideration of potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding in addition to the potential impact of dilutive securities including restricted stock units, warrants, and options. In periods with a net loss, diluted net loss per common share is the same as basic net loss per common share since the effect of potentially dilutive securities is anti-dilutive. Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes in the year ended December 31, 2021. The adoption of this standard did not have a material impact on the financial statements. Recently Issued Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued 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 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). ASU No. 2019-04 provides narrow-scope amendments to help apply ASU No. 2016-13, and is effective with the adoption of ASU No. 2016-13. The Company is evaluating the impact of the adoption of ASU 2016-13 and ASU No. 2019-04 on its financial statements. Subsequent Events The Company evaluated events after December 31, 2021, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue. | |
Revenue | 3. Revenue The Company sells products to its distributors and OEMs. The Company also recognizes revenue under licensing, patent, and royalty agreements with some customers. The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Year Ended December 31, 2021 2020 Distributor $ 36,479 $ 26,027 Non-distributor 18,667 16,004 Total revenue $ 55,146 $ 42,031 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Year Ended December 31, 2021 2020 Point in time $ 51,204 $ 40,846 Over time 3,942 1,185 Total revenue $ 55,146 $ 42,031 The following table presents the Company’s revenues disaggregated by type (in thousands): Year Ended December 31, 2021 2020 Product sales $ 43,931 $ 39,848 Royalties 2,021 998 Patents 5,250 — Other revenue 3,944 1,185 Total revenue $ 55,146 $ 42,031 In September 2021, the Company entered into an intellectual property monetization deal to sell five patents to a customer for a total contract value of $5.25 million. Two of the patents were assigned to the customer in September 2021, and the remaining three patents were assigned to the customer in October 2021. Control is transferred when the patents are assigned to the customer. As a result, all $5.25 million of patent revenue was recognized during the year ended December 31, 2021, related to the patent sales. The Company licenses its intellectual property and is entitled to consideration based on the customer’s sales. The Company makes estimates in instances when the customer reports sales on a lagged basis and actual information is not available timely. The estimates are based on historical trends in the customer’s activity and current market conditions. In the year ended December 31, 2021 the Company recognized $0.8 million of royalty revenue related to activity occurring in the year ended December 31, 2020. This is a change in estimate and is based on actual information received from the customer. The amounts are reported in licensing, royalty, patent and other revenue in the statements of operations and comprehensive income (loss). The Company recognizes revenue in three geographic regions: Asia-Pacific (APAC); North America; and Europe, Middle East and Africa (EMEA). We recognize revenue by geography based on the region in which our products are sold, and not to where the end products in which they are assembled are shipped. Our revenue by region for the periods indicated was as follows (in thousands): Year Ended December 31, 2021 2020 APAC $ 32,327 $ 29,480 North America 15,813 9,253 EMEA 7,006 3,298 Total revenue $ 55,146 $ 42,031 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Balance Sheet Components Inventory Inventory consisted of the following (in thousands): December 31, 2021 2020 Raw materials $ 464 $ 329 Work-in-process 4,620 4,910 Finished goods 1,312 482 Total inventory $ 6,396 $ 5,721 Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Manufacturing equipment $ 12,608 $ 12,296 Computer and network equipment 1,008 917 Furniture and fixtures 187 112 Software 929 925 Leasehold improvements 1,444 1,444 Total property and equipment, gross 16,176 15,694 Less: accumulated depreciation (15,203) (13,748) Total property and equipment, net $ 973 $ 1,946 Depreciation and amortization expense during the years ended December 31, 2021 and 2020 was $1.5 million and $2.0 million, respectively. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): December 31, 2021 2020 Payroll-related expenses $ 2,845 $ 1,274 Inventory 177 416 Other 557 542 Total accrued liabilities $ 3,579 $ 2,232 Deferred Revenue During the year ended December 31, 2021, the Company executed contractual arrangements with a customer for the development of a RAD-Hard product, consisting of a technology license, design license agreement and development subcontract. The Company does not share in the rights to future revenues or royalties. The total arrangements are for $6.5 million in consideration. The Company concluded these contractual arrangements represent one arrangement and evaluated its promises to the customer and whether the performance obligations granted under the arrangement were distinct. The licenses provided to the customer are not transferable, are of limited value without the promised development services, and the customer cannot benefit from the license agreements without the specific obligated services in the development subcontract, as there is strong interdependency between the licenses and the development subcontract. Accordingly, the Company determined the licenses were not distinct within the context of the contract and combined the license with other performance obligations. The total transaction price of $6.5 million was allocated to the single performance obligation. The Company recognizes revenue related to the performance obligations over time using the input method based on costs incurred to date relative to the total expected costs of the contract and began recognizing revenue in the second quarter of 2021 over the performance obligation period. This method depicts performance under the contract and requires the Company to make estimates about the future costs expected to be incurred to perform under the contact, including labor and material costs. For the year ended December 31, 2021, the Company has billed $4.1 million for the performance under the contractual agreements. Under the input method of recognition, the Company has recognized $3.3 million in revenue for the year ending December 31, 2021. As a result, the Company has recorded |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 5. Commitments and Contingencies Leases The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands): As of December 31, 2021 Amount 2022 $ 746 2023 68 Thereafter — Total lease payments 814 Less: imputed interest (22) Total operating lease liabilities 792 Less: current portion of operating lease liabilities (724) Total operating lease liabilities, net of current portion $ 68 Other information related to the Company's operating lease liabilities was as follows: December 31, 2021 2020 Weighted-average remaining lease term (years) 1.08 1.74 Weighted-average discount rate 6.00 % 6.00 % Lease costs for the Company’s operating leases were $1.5 million for both the years ended December 31, 2021 and 2020, respectively. Variable lease payments for operating leases were immaterial for the years ended December 31, 2021 and 2020. Lease costs for the Company’s finance lease were immaterial for the years ended December 31, 2021 and 2020. Subsequent to December 31, 2021, the Company’s office space lease in Chandler, Arizona and design facility lease in Austin, Texas expired. Both leases expired in January 2022 and were replaced with new leases . The Company signed the new leases in 2021 and the leases commenced in January and February 2022. The Company’s lease liability and right-of-use assets will be recognized when the leases commence, and the underlying assets are available for use, which was during the first quarter of 2022. The undiscounted future non-cancellable lease payments under these two operating leases are as follows (in thousands): As of December 31, 2021 Amount 2022 $ 531 2023 579 2024 594 2025 610 2026 626 Thereafter 964 Total $ 3,904 Legal Proceedings From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that it expects will have a material adverse effect on the financial position, results of operations or cash flows of the Company. Indemnifications In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors’ and officers’ insurance. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt | |
Debt | 6. Debt 2019 Credit Facility In August 2019, the Company executed an Amended and Restated Loan and Security Agreement (2019 Credit Facility), which amended and restated the Company’s prior loan and security agreement (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). In July 2020, the Company executed the first amendment to the 2019 Credit Facility with SVB. The amendment, among other things, extended the initial 12-month interest-only period for the 2019 Term Loan to a 16-month interest-only period and lowered the floor interest rate. The floor interest rates for the 2019 Term Loan and the Line of Credit were reduced from 4.75% and 6.75% to 3.75% and 4.75%, respectively. The amended 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 4.75%. As of December 31, 2021, the interest rate was 4.75%. The Line of Credit required 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. Currently, $4.0 million remains available under the Line of Credit, subject to borrowing base availability. As of December 31, 2021, the effective interest rate under the Line of Credit was 10.18% and the outstanding balance was $1.0 million. The Line of Credit was set to mature on August 5, 2021. The second amendment, entered into on July 28, 2021, extended the maturity date of the Line of Credit to August 5, 2022. The amended 2019 Term Loan provides for a $6.0 million term loan. The 2019 Term Loan has a term of 46 months, and a 16-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 3.75%. As of December 31, 2021, the interest rate was 3.75%. 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 December 31, 2021, the effective interest rate under the 2019 Term Loan was 7.85% and the outstanding balance was $4.0 million. The 2019 Term Loan matures on June 1, 2023. 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 to the 2017 Credit Facility, which was a warrant to purchase 9,375 shares of the Company’s common stock at an exercise price of $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. The warrant is 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 (expense) income, net in the Company’s statements of operations and comprehensive income (loss). The Company recognized an expense of $19,000 and income of $2,000 for years ended 2021 and 2020, respectively, related to the change in fair value of the warrant within other (expense) income, net in the statements of operations and comprehensive income (loss). Additionally, in conjunction with entering into the first amendment to the 2019 Credit Facility, on July 15, 2020, the Company issued an additional warrant to SVB to purchase 21,500 shares of its common stock at an exercise price of $0.01 per share, which was to expire on July 15, 2025. The warrant was classified as equity and was recorded as a debt discount that was amortized to interest expense using the effective interest method. The fair value of the warrant was $152,000 on the date of issuance using the Black-Scholes option-pricing model. On July 22, 2021, SVB elected to exercise the warrant associated with the first amendment to the 2019 Credit Facility, which resulted in a net cashless exercise of the warrant and the issuance of 21,463 shares of the Company’s common stock. 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 cash balance and availability under the Line of Credit, 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 December 31, 2021. 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 2019 Term Loan. As of December 31, 2021, management does not believe that it is probable that the clause will be triggered within the next 12 months, and therefore the 2019 Term Loan is classified as long-term debt. The amortization of the debt issuance costs and accretion of the debt discount is included in interest expense within the statements of operations and comprehensive income (loss) and included in non-cash interest expense within the statement of cash flows. The carrying value of the Company’s 2019 Credit Facility at December 31, 2021, was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 3,400 $ 1,620 $ 5,020 Unamortized debt discounts (30) (91) (121) Net carrying value $ 3,370 $ 1,529 $ 4,899 The carrying value of the Company’s 2019 Credit Facility at December 31, 2020, was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 4,400 $ 4,020 $ 8,420 Unamortized debt discounts (158) (272) (430) Net carrying value $ 4,242 $ 3,748 $ 7,990 The table below includes the principal repayments due under the 2019 Credit Facility as of December 31, 2021 (in thousands): Principal Repayment as of December 31, 2021 2022 3,400 2023 1,620 Total principal repayments $ 5,020 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | 7. Stockholders’ Equity Common Stock Common stockholders are entitled to dividends if and when declared by the board of directors. As of December 31, 2021, no dividends on common stock had been declared by the board of directors. At-the-Market Sales Agreement In August 2019, the Company entered into an Open Market Sale Agreement (2019 Sales Agreement) with Jefferies, LLC (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” (ATM) 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 2019 Sales Agreement. During the year ended December 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. The Company suspended sales under the 2019 Sales Agreement in March 2020 and terminated the ATM program in November 2020. Reserved Shares of Common Stock The Company had reserved shares of common stock for future issuance as follows: December 31, 2021 2020 Options issued and outstanding 1,783,298 2,272,905 Shares available for future option grants 1,038,956 179,219 RSUs subject to future vesting 384,307 416,742 Common stock warrants 27,836 49,336 Total 3,234,397 2,918,202 Warrants In connection with the Company’s credit facility, the Company has issued warrants to Silicon Valley Bank. For more details see Note 6 to the financial statements. In connection with the Company’s prior credit facility with Ares Venture Finance entered into in June 2015, the Company issued Ares Venture Finance a warrant to purchase 18,461 shares of the Company’s common stock at an exercise price of $26.00 per share. The warrant can be exercised at any time and expires on June 5, 2025. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | 8. Stock-Based Compensation 2016 Employee Incentive Plan The Company’s board of directors adopted the 2016 Equity Incentive Plan (the 2016 Plan) on April 25, 2016, which was subsequently approved on September 20, 2016 by the Company’s stockholders. The 2016 Plan became effective on October 7, 2016, the date the Company’s S-8 registration statement relating to the 2016 Plan was declared effective by the SEC. The Company’s 2016 Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, and other forms of equity compensation to employees, directors, and consultants. In addition, the Company’s 2016 Plan provides for the grant of performance cash awards to employees, directors, and consultants. The maximum number of shares of common stock that may be issued under the Company’s 2016 Plan was initially 500,000 subject to an automatic increase on January 1 of each year, beginning on January 1, 2017, and continuing through and including January 1, 2026, by 3% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors. On May 20, 2021, the Company’s stockholders approved an amendment to the 2016 Plan to increase the total number of authorized shares of common stock available for grant thereunder by an additional 550,000 shares. At December 31, 2021, of the 3,206,561 shares of common stock reserved and available for grant under the 2016 Plan, 1,038,956 shares of common stock remain available for grant under the 2016 Plan. 2008 Employee Incentive Plan The 2008 Equity Incentive Plan (the 2008 Plan) provided for the issuance of incentive stock options (ISO), nonqualified stock options, and other stock compensation awards. Due to the adoption of the 2016 Plan, no further grants will be made under the Company’s 2008 Plan. However, any outstanding stock awards granted under the 2008 Plan will remain outstanding, subject to the terms of the Company’s 2008 Plan and the applicable stock award agreements, until such outstanding stock awards that are stock options are exercised or until they terminate or expire by their terms, or until such stock awards are fully settled, terminated, or forfeited. At December 31, 2021, 79,910 options under the 2008 Plan remained outstanding. Summary of Stock Option Activity The following table summarizes the stock option and award activity for all grants under the 2008 Plan and 2016 Plan: Options Outstanding Weighted- Weighted- Options and Average Average Aggregate Awards Exercise Remaining Intrinsic Available for Number of Price Per Contractual Value Grant Options Share Life (years) (In thousands) Balance—December 31, 2020 179,219 2,272,905 $ 5.58 7.9 $ 1,640 Authorized 1,120,946 RSUs granted (522,814) RSUs cancelled/forfeited 135,909 Options granted (788,441) 766,978 $ 5.63 Options exercised — (321,694) $ 5.15 $ 1,783 Options cancelled/forfeited 914,137 (934,891) $ 6.47 Balance—December 31, 2021 1,038,956 1,783,298 $ 5.21 8.0 $ 10,891 Options exercisable—December 31, 2021 609,459 $ 5.77 6.3 $ 3,400 During the years ended December 31, 2021 and 2020, the Company granted options with a weighted-average grant date fair value of $3.60 and $1.81 per share, respectively. The total fair value of options vested during the year was $0.9 million and $2.2 million, for the years ended December 31, 2021, and 2020, respectively. 2016 Employee Stock Purchase Plan The Company’s board of directors adopted the 2016 Employee Stock Purchase Plan (the ESPP) on April 25, 2016, which was subsequently approved on September 20, 2016 by the Company’s stockholders. The Company had 652,771 shares available for issuance under the Company’s ESPP as of December 31, 2021. Employees purchased 64,407 shares for $236,000 during the year ended December 31, 2021 and 49,951 shares for $112,000 during the year ended December 31, 2020. The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine fair value of the Company’s common shares issued under the ESPP: Year Ended December 31, 2021 2020 Expected volatility 40.7 - 100.7 % 44.7 - 100.7 % Risk-free interest rate 0.05 - 0.13 % 0.12 - 1.68 % Expected term (in years) 0.5 - 1.0 0.5 - 1.0 Dividend yield — % — % Restricted Stock Units In September 2017, the Company’s board of directors authorized the issuance of restricted stock units (RSUs), under the 2016 Plan and adopted a form of Restricted Stock Unit Award Agreement, which is intended to serve as a standard form agreement for RSU grants issued to employees, executive officers, directors, and consultants. The fair value of the RSUs is recognized as expense ratably over the vesting period, as determined by the board of directors on the date of grant. The following table summarizes RSU activity for the year ended December 31, 2021: RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2020 416,742 $ 4.89 Granted 522,814 $ 5.52 Vested (419,340) $ 5.61 Cancelled/forfeited (135,909) $ 4.77 Balance—December 31, 2021 384,307 $ 5.00 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 December 31, 2021, there was $1.4 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.3 years. Stock-based Compensation Expense As of December 31, 2021, there was $3.2 million of total unrecognized compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 2.8 years. Compensation cost capitalized within inventory at December 31, 2021 and 2020 was not material. The Company estimated the fair value of each option grant using the Black-Scholes option-pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the assumptions below. Year Ended December 31, 2021 2020 Expected volatility 72.6 - 74.1 % 74.4 - 79.3 % Risk-free interest rate 0.62 - 1.30 % 0.22 - 1.63 % Expected term (in years) 5.9 - 6.1 6.07 - 6.08 Dividend yield — % — % |
401 (k) Plan
401 (k) Plan | 12 Months Ended |
Dec. 31, 2021 | |
401 (k) Plan | |
401 (k) Plan | 9. 401(k) Plan The Company has a defined contribution employee benefit plan pursuant to Section 401(k) of the Internal Revenue Code. The plan allows eligible employees to defer a portion of their annual compensation up to certain statutory limits. At the election of the Board of Directors, the Company may elect to match employee contributions but has not done so to date. |
Significant Agreements
Significant Agreements | 12 Months Ended |
Dec. 31, 2021 | |
Significant Agreements | |
Significant Agreements | 10. Significant Agreements GLOBALFOUNDRIES, Inc. Joint Development Agreement Since October 17, 2014, the Company has participated in a joint development agreement (JDA) with GLOBALFOUNDRIES Inc. (GF), a semiconductor foundry, for the joint development of Spin-transfer Torque MRAM (STT-MRAM) technology to produce 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. Silterra Malaysia Sdn. Bhd. Joint Collaboration Agreement In September 2018, the Company entered into a Joint Collaboration Agreement (JCA) with Silterra Malaysia Sdn. Bhd., and another third party. The JCA was intended to create additional manufacturing capacity for the Company’s Toggle MRAM products. The Company had previously anticipated initial production starting in 2020, which was subsequently delayed. Under the JCA, the Company was required to pay non-recurring engineering costs of $1.0 million. As of December 31, 2021, the Company has paid $600,000 of these JCA costs. On October 23, 2021, the Company executed a termination of the JCA. As a result, the Company does not expect to incur additional JCA costs. There were no JCA costs paid during the years ended December 31, 2021 and 2020. As a result of the JCA, Silterra Malaysia Sdn. Bhd., successfully became a second source for Toggle MRAM products to the Company. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Geographic Information | |
Geographic Information | 11. Geographic Information Property and equipment, net by country was as follows (in thousands): December 31, 2021 2020 United States $ 825 $ 1,415 Singapore 88 287 Other 60 244 $ 973 $ 1,946 Revenue from customers is designated based on the geographic region or country to which the product is delivered or the licensee is located. Revenue by country was as follows (in thousands): Year Ended December 31, 2021 2020 Hong Kong $ 17,403 $ 18,258 United States 15,662 5,743 Japan 7,315 5,403 Canada 3,797 3,423 China 2,731 2,403 All other 8,238 6,801 Total revenue $ 55,146 $ 42,031 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | 12. Income Taxes For the years ended December 31, 2021 and 2020, the Company’s provision for income tax consisted of: Year Ended December 31, 2021 2020 Current: Federal $ — $ — State 4 — Foreign — 260 Total Current $ 4 $ 260 Deferred: Federal $ — $ — State — — Foreign — — Total Deferred $ — $ — Provision for income taxes $ 4 $ 260 The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2021 2020 Tax at statutory federal rate 21.0 % (21.0) % State taxes, net of federal benefit 1.8 (1.5) Stock-based compensation 4.7 5.4 Change in uncertain tax benefits — 3.1 Change in valuation allowance (27.5) 17.0 Other 0.1 — Provision for income taxes 0.1 % 3.0 % The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 30,658 $ 31,683 Inventory 278 147 Accruals 801 254 Depreciation and amortization 240 240 Limitation on business interest — 268 Stock-based compensation 177 676 Right of use liability 206 549 Gross deferred tax assets 32,360 33,817 Valuation allowance (32,047) (33,265) Deferred tax assets 313 552 Deferred tax liabilities: Right of use asset (209) (527) Other (104) (25) Deferred tax liabilities (313) (552) Net deferred tax assets $ — $ — The Company is required to reduce its deferred tax assets by a valuation allowance if it is more likely than not that some or all of its deferred tax assets will not be realized. Management must use judgment in assessing the potential need for a valuation allowance, which requires an evaluation of both negative and positive evidence. The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which it can be objectively verified. In determining the need for and amount of the valuation allowance, if any, the Company assesses the likelihood that it will be able to recover its deferred tax assets using historical levels of income, estimates of future income and tax planning strategies. As a result of historical cumulative losses, the Company determined that, based on all available evidence, there was substantial uncertainty as to whether it will recover recorded net deferred taxes in future periods. Accordingly, the Company recorded a valuation allowance against all of its net deferred tax assets as of December 31, 2021 and 2020. The net valuation allowance decreased by $1.2 million in 2021. As of December 31, 2021, the Company has federal net operating loss carryforwards of approximately $136.0 million, of which $95.2 million will expire in 2028 through 2037 if not utilized, and $40.8 million that will carryover indefinitely. In addition, the Company has state net operating loss carryforwards of approximately $52.1 million, of which $49.3 million will expire in 2023 through 2041 if not utilized, and $2.8 million that will carryover indefinitely. The Tax Reform Act of 1986 (the Act) provides for a limitation on the annual use of net operating loss carryforwards following certain ownership changes (as defined by the Act and codified under Section 382 of the U.S. Internal Revenue Code of 1986, as amended (the Code)) that could limit the Company’s ability to utilize these carryforwards. Further, a portion of the carryforwards may expire before utilized to reduce future income tax liabilities as a result of the annual limitation. The Company experienced an ownership change in October 2016 and as a result, $43.8 million ($9.2 million tax effected) of the federal NOLs are expected to expire unutilized due to limitation under Section 382 of the Code. The NOLs expected to expire unutilized are included in the NOL carryforward amounts disclosed, subject to a valuation allowance. The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company is generally subject to U.S. federal and state income tax examination for all tax years beginning in 2008, due to the net operating losses that are carried forward. A summary of changes in the Company’s gross unrecognized tax benefits for the years ended December 31, 2021 and 2020 was as follows (in thousands): Year Ended December 31, 2021 2020 Unrecognized tax expense, beginning of the year $ 104 $ — (Decrease)/increase related to prior year tax positions (12) 91 Increase related to current year tax positions 13 13 Unrecognized tax expense, end of year $ 105 $ 104 The total balance of unrecognized tax benefits as of December 31, 2021 would impact the effective tax rate, if recognized. The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefit as a component of income tax expense. The Company has accrued penalties and interest of $155,000 and $156,000, as of December 31, 2021 and December 31, 2020, respectively. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Net Income (Loss) Per Common Share | |
Net Loss Per Common Share | 13. Net Income (Loss) Per Common Share The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except share and per share amounts): Year Ended December 31, 2021 2020 Numerator: Net income (loss) $ 4,343 $ (8,512) Denominator: Weighted-average common shares outstanding used to calculate net income (loss) per common share, basic 19,400,124 18,782,287 Net income (loss) per common share, basic $ 0.22 $ (0.45) Year Ended December 31, 2021 2020 Numerator: Net income (loss) $ 4,343 $ (8,512) Denominator: Weighted-average common shares outstanding used to calculate net income (loss) per common share, basic 19,400,124 18,782,287 Effect of dilutive securities 572,021 — Weighted-average common shares outstanding used to calculate net income (loss) per common share, diluted 19,972,145 18,782,287 Net income (loss) per common share, diluted $ 0.22 $ (0.45) The following outstanding shares of potentially dilutive securities have been excluded from diluted net income (loss) per common share for the periods presented, because their inclusion would be anti-dilutive: Year Ended December 31, 2021 2020 Options to purchase common stock 1,221,720 2,272,905 RSUs 9,815 416,742 Common stock warrants 27,836 49,336 Total 1,259,371 2,738,983 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Use of Estimates | Use of Estimates The preparation of the 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 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 net realizable value, 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. |
Segments | Segments The Company’s chief operating decision maker is its Interim Chief Executive Officer who reviews financial information for purposes of allocating resources and evaluating financial performance for the entire Company. As a result, the Company has single operating and reportable segment. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid, short-term investments with maturity dates of 90 days or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist solely of money market funds. |
Accounts receivable, net | Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances would be provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers a number of factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances would be charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company’s evaluation determined that no material allowance for doubtful accounts was necessary at December 31, 2021 and 2020. The unbilled accounts receivable is an estimate of consideration to which the Company expects to be entitled for uses of the Company’s intellectual property. Certain customers report on a lagged basis and actual information is not available timely. The estimates recorded are based on historical trends in the customer’s usage and current market conditions. At December 31, 2021 and 2020, the unbilled accounts receivable balance was $450,000 and $255,000, respectively. 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 and, as a result, the allowance is recorded against the balance of trade accounts receivable. In addition, the Company from time to time may establish an allowance for estimated price adjustments related to its distributor agreements. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales and evaluation of current market conditions. At December 31, 2021 and 2020, the allowance for product returns and price adjustments was $397,000 and $238,000, respectively. Accounts receivable, net consisted of the following (in thousands): December 31, 2021 2020 Trade accounts receivable $ 8,140 $ 7,590 Unbilled accounts receivable 450 255 Allowance for product returns and price adjustments (397) (238) Accounts receivable, net $ 8,193 $ 7,607 |
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 Year Ended December 31, December 31, Customers 2021 2020 2021 2020 Customer A % * % 29 % * % 29 % Customer B % 22 % 11 % 54 % 25 % * Less than 10% |
Inventory | Inventory Inventory is valued at the lower of cost, using the first-in, first-out or net realizable value. The carrying value of inventory is adjusted for excess and obsolescence based on the Company’s evaluation which takes into consideration historical and expected future demand, the effect new products may have on the sale of existing products, technological obsolescence, and other factors including inventory age and shipment. At the point of loss recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that new cost basis. |
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 Level 2 Level 3 The carrying value of accounts receivable, accounts payable, and other accruals readily convertible into cash approximate fair value because of the short-term nature of the instruments. As of December 31, 2021, 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 (as defined in Note 6). The change in the fair value of the warrant liability during the year ended December 31, 2021 was immaterial. 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): December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 21,508 $ — $ — $ 21,508 Total assets measured at fair value $ 21,508 $ — $ — $ 21,508 Liabilities: Warrant liability $ — $ — $ 50 $ 50 Total liabilities measured at fair value $ — $ — $ 50 $ 50 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 14,669 $ — $ — $ 14,669 Total assets measured at fair value $ 14,669 $ — $ — $ 14,669 Liabilities: Warrant liability $ — $ — $ 31 $ 31 Total liabilities measured at fair value $ — $ — $ 31 $ 31 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation begins at the time the asset is placed in service. Maintenance and repairs are charged to operations as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives of the assets: Useful Lives Computer and network equipment 2 years Manufacturing equipment 2 – 7 years Furniture and fixtures 7 years Software 3 years Leasehold improvements 2 years (not to exceed the lease life) Costs incurred to develop software for internal use during the application development phase are capitalized and amortized over such software’s estimated useful life. Costs related to the design or maintenance of internal-use software are included in operating expenses as incurred. Upon sale or retirement of assets, the cost and related accumulated depreciation are removed from the balance sheet and any resulting gain or loss is reflected in operations. Amortization expense of assets acquired through finance leases is included in the statements of operations and comprehensive income (loss). |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company evaluates its long-lived assets, including property and equipment, at the asset group level, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. If such events or changes in circumstances occur, for purposes of this assessment, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by comparison of the carrying amount of each asset group to the future undiscounted cash flows the asset group is expected to generate over its remaining life. If the asset group is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. There have been no impairments of the Company’s long-lived assets during either of the periods presented. |
Leases | Leases The Company leases office, lab, manufacturing space and equipment in various locations with initial lease terms of up to seven years. These leases require monthly lease payments that may renew extend two The Company determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The classification of the Company’s leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. The Company uses its incremental borrowing rate, based on the information available at commencement date, to determine the present value of lease payments when its leases do not provide an implicit rate. The Company uses the implicit rate when readily determinable. The ROU asset is based on the measurement of the lease liability, includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs incurred, as applicable. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. Amortization expense for ROU assets associated with finance leases is recognized on a straight-line basis over the shorter of the useful life of the asset or the lease term and interest expense associated with finance leases is recognized on the balance of the lease liability using the effective interest method based on the estimated incremental borrowing rate. The Company has lease agreements with lease and non-lease components. The Company has elected to not separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has elected to separate lease and non-lease components for any leases involving manufacturing facility classes of assets. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to leases with terms of 12 months or less (short-term leases) for all classes of assets. As of December 31, 2021, the Company did not have any short-term leases. Operating leases are included in right-of-use assets, operating lease liabilities, and operating lease liabilities, net of current portion in the Company’s balance sheet. Finance leases are included in property and equipment, net, other liabilities, and other long-term liabilities in the Company’s balance sheet. |
Debt Issuance Costs | Debt Issuance Costs The Company defers and amortizes issuance costs, underwriting fees, end of term payments, and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs are reflected as a direct reduction of the carrying amount of the related debt liability. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when a customer obtains control of the promised products or services, in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. Revenue is recognized net of allowances for returns and price adjustments, and any taxes imposed on specific revenue-producing transactions, which are subsequently remitted to governmental authorities. Nature of Products and Services The Company’s revenue is derived from the sale of MRAM-based products in discrete unit form, licenses of and royalties on its MRAM and magnetic sensor technology, the sale of backend foundry services and design services to third parties. Sales of products in discrete unit form are recognized at a point in time, revenue related to licensing agreements is recognized when the Company has delivered control of the technology, revenue related to royalty agreements is recognized in the period in which sales generated from products sold using the Company’s technology occurs, sales of backend foundry services are recognized over time, and design services to third parties are recognized either at a point in time or over time, depending on the nature of the services. Product Revenue For products sold in their discrete form, the Company either sells its products directly to original equipment manufacturers (OEMs), original design manufacturers (ODMs) and contract manufacturers (CMs), or through a network of distributors, who in turn sell to those customers. For sales directly to OEMs, ODMs and CMs, revenue is recognized when the OEM, ODM or CM obtains control of the product, which occurs at a point in time, generally upon shipment to the customer. Contracts for sales of products are generally less than one year. The Company sells a majority of its products to their distributors at a uniform list price. However, distributors may resell products to end customers at a very broad range of individually negotiated price points. From time to time, the Company may provide distributors with price adjustments subsequent to the delivery of product to them and such amounts are dependent on the end customer and product sales price. Price adjustments can be based on a variety of factors, including customer, product, quantity, geography, and competitive differentiation. Price protection rights grant distributors the right to a credit in the event of declines in the price of the Company’s products. Under these circumstances, the Company remits back to the distributor a portion of their original purchase price after the resale transaction is completed in the form of a credit against the distributors’ outstanding accounts receivable balance. The credits are on a per unit basis and are not given to the distributor until the distributor provides information regarding the sale to their end customer. The Company estimates these credits and record such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of an allowance for price adjustments for amounts due to distributors. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales and evaluation of current market conditions. Revenue on shipments to distributors is recorded when control of the products has been transferred to the distributor. The Company estimates the amount of our product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company estimates its product return liability by analyzing its historical returns, current economic trends and changes in customer demand and acceptance of products. The Company has received insignificant returns to date and believes that returns of its products will continue to be minimal. Upon the transfer of control, generally at shipment, the Company records a trade receivable for the selling price as there is a legally enforceable obligation of the distributor to pay for the product delivered, an allowance is recorded for the estimated discount that will be provided to the distributor, and the net of these amounts is recorded as revenue on the statement of operations. License Revenue For licenses of technology, recognition of revenue is dependent upon whether the Company has delivered rights to the technology, and whether there are future performance obligations under the contract. In some instances, the license agreements call for future events or activities to occur in order for milestones amounts to become due from the customer. The terms of such agreements include payment to the Company of one or more of the following: non-refundable upfront fees; and royalties on net sales of licensed products. Historically, these license agreements have not included other future performance obligations for the Company once the license has been transferred to the customer. Revenue from non-refundable upfront payments is recognized when the license is transferred to the customer and the Company has no other performance obligations. The Company also entered into a contractual agreement with a customer in 2021 for the development of a RAD-Hard product, consisting of a technology license, a design license agreement and development contract. The Company applies a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to the performance obligations in the contract; and (5) recognizing revenue when the performance obligation is satisfied. The Company concluded these contractual arrangements represent one arrangement and evaluated its promises to the customer and whether the performance obligations granted under the arrangement were distinct. The licenses provided to the customer are not transferable, are of limited value without the promised development services, and the customer cannot benefit from the license agreements without the specific obligated services in the development subcontract, as there is strong interdependency between the licenses and the development subcontract. Accordingly, the Company determined the licenses were not distinct within the context of the contract and combined the license with other performance obligations. As a result, the Company is recognizing revenue related to the performance obligations over time using the input method based on costs incurred to date relative to the total expected costs of the contract over the performance obligation period. Patents In an effort to monetize on its intellectual property, the Company may sell patents to customers. The performance obligations are satisfied at the point in time at which the customer obtains control of the patents. Royalties Revenue from sales-based royalties from licenses of the Company’s technology are recognized at the later of when (1) the sale occurs or (2) the performance obligation to which some or all of the sales-based royalty has been allocated is satisfied (in whole or in part). The Company will record an unbilled receivable (within accounts receivable, net) for the portion of sales-based royalties that have been earned, but not invoiced at the end of each reporting period. Other Revenue For certain revenue streams, the Company recognizes revenue based on the pattern of transfer of the services. The Company uses the input method of measuring costs incurred to date compared to total estimated costs to be incurred under the contract as this method most faithfully depicts its performance. The Company will record an unbilled receivable (within accounts receivable, net) for the portion of the work that has been completed but not invoiced at the end of each reporting period. At the inception of each agreement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price by using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates the probability or achievement of each such milestone and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment. |
Product Warranty | Product Warranty The Company generally sells products with a limited warranty of product quality and a limited indemnification of customers against intellectual property infringement claims related to the Company’s products. The Company accrues for known warranty and indemnification issues if a loss is probable and can be reasonably estimated and accrues for estimated losses incurred for unidentified issues based on historical experience. A warranty liability was not recorded at December 31, 2021 and 2020, as the estimated future warranty costs were not material based on the Company’s historical experience. |
Research and Development | Research and Development Research and development expenses are incurred in support of internal development programs or as part of the Company’s joint development agreement with GLOBALFOUNDRIES and joint collaboration agreement with Silterra Malaysia Sdn. Bhd. (see Note 10). Research and development expenses include personnel-related costs (including stock-based compensation), circuit design costs, purchases of materials and laboratory supplies, fabrication and packaging of experimental integrated circuit products, depreciation of research and development related capital equipment and overhead and are expensed as incurred. |
Stock-based Compensation | Stock-based Compensation Stock-based compensation arrangements include stock option grants and restricted stock unit (RSU) awards under the Company’s equity incentive plans, as well as shares issued under the Company’s Employee Stock Purchase Plan (ESPP), through which employees may purchase the Company’s common stock at a discount to the market price. The Company measures its stock option grants based on the estimated fair value of the options as of the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service period using the straight-line method. The Company accounts for forfeitures as they occur. Expected volatility. Risk-free interest rate. Expected term. Dividend yield. |
Income Taxes | Income Taxes The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits, as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period less shares subject to repurchase, without consideration of potentially dilutive securities. Diluted earnings per share is calculated using the treasury stock method by dividing net income by the total weighted average shares of common stock outstanding in addition to the potential impact of dilutive securities including restricted stock units, warrants, and options. In periods with a net loss, diluted net loss per common share is the same as basic net loss per common share since the effect of potentially dilutive securities is anti-dilutive. |
Recently Adopted Accounting Pronouncements and Recently Issued Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes in the year ended December 31, 2021. The adoption of this standard did not have a material impact on the financial statements. Recently Issued Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued 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 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). ASU No. 2019-04 provides narrow-scope amendments to help apply ASU No. 2016-13, and is effective with the adoption of ASU No. 2016-13. The Company is evaluating the impact of the adoption of ASU 2016-13 and ASU No. 2019-04 on its financial statements. |
Subsequent Events | Subsequent Events The Company evaluated events after December 31, 2021, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of accounts receivable net | Accounts receivable, net consisted of the following (in thousands): December 31, 2021 2020 Trade accounts receivable $ 8,140 $ 7,590 Unbilled accounts receivable 450 255 Allowance for product returns and price adjustments (397) (238) Accounts receivable, net $ 8,193 $ 7,607 |
Schedule of revenue and accounts receivable for each significant customer | Revenue Accounts Receivable Year Ended December 31, December 31, Customers 2021 2020 2021 2020 Customer A % * % 29 % * % 29 % Customer B % 22 % 11 % 54 % 25 % * Less than 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): December 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 21,508 $ — $ — $ 21,508 Total assets measured at fair value $ 21,508 $ — $ — $ 21,508 Liabilities: Warrant liability $ — $ — $ 50 $ 50 Total liabilities measured at fair value $ — $ — $ 50 $ 50 December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 14,669 $ — $ — $ 14,669 Total assets measured at fair value $ 14,669 $ — $ — $ 14,669 Liabilities: Warrant liability $ — $ — $ 31 $ 31 Total liabilities measured at fair value $ — $ — $ 31 $ 31 |
Schedule of estimated useful lives of the assets | Useful Lives Computer and network equipment 2 years Manufacturing equipment 2 – 7 years Furniture and fixtures 7 years Software 3 years Leasehold improvements 2 years (not to exceed the lease life) |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue. | |
Schedule of disaggregation of revenue | The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Year Ended December 31, 2021 2020 Distributor $ 36,479 $ 26,027 Non-distributor 18,667 16,004 Total revenue $ 55,146 $ 42,031 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Year Ended December 31, 2021 2020 Point in time $ 51,204 $ 40,846 Over time 3,942 1,185 Total revenue $ 55,146 $ 42,031 The following table presents the Company’s revenues disaggregated by type (in thousands): Year Ended December 31, 2021 2020 Product sales $ 43,931 $ 39,848 Royalties 2,021 998 Patents 5,250 — Other revenue 3,944 1,185 Total revenue $ 55,146 $ 42,031 Year Ended December 31, 2021 2020 APAC $ 32,327 $ 29,480 North America 15,813 9,253 EMEA 7,006 3,298 Total revenue $ 55,146 $ 42,031 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, 2021 2020 Raw materials $ 464 $ 329 Work-in-process 4,620 4,910 Finished goods 1,312 482 Total inventory $ 6,396 $ 5,721 |
Schedule of property and equipment, net | Property and equipment, net consisted of the following (in thousands): December 31, 2021 2020 Manufacturing equipment $ 12,608 $ 12,296 Computer and network equipment 1,008 917 Furniture and fixtures 187 112 Software 929 925 Leasehold improvements 1,444 1,444 Total property and equipment, gross 16,176 15,694 Less: accumulated depreciation (15,203) (13,748) Total property and equipment, net $ 973 $ 1,946 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): December 31, 2021 2020 Payroll-related expenses $ 2,845 $ 1,274 Inventory 177 416 Other 557 542 Total accrued liabilities $ 3,579 $ 2,232 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of supplemental information | December 31, 2021 2020 Weighted-average remaining lease term (years) 1.08 1.74 Weighted-average discount rate 6.00 % 6.00 % |
Chandler Arizona and Austin Texas leased space | |
Schedule of Undiscounted future non-cancellable lease payments | The undiscounted future non-cancellable lease payments under these two operating leases are as follows (in thousands): As of December 31, 2021 Amount 2022 $ 531 2023 579 2024 594 2025 610 2026 626 Thereafter 964 Total $ 3,904 |
Office and Lab Space | |
Schedule of Undiscounted future non-cancellable lease payments | The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands): As of December 31, 2021 Amount 2022 $ 746 2023 68 Thereafter — Total lease payments 814 Less: imputed interest (22) Total operating lease liabilities 792 Less: current portion of operating lease liabilities (724) Total operating lease liabilities, net of current portion $ 68 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt | |
Summary of debt | The carrying value of the Company’s 2019 Credit Facility at December 31, 2021, was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 3,400 $ 1,620 $ 5,020 Unamortized debt discounts (30) (91) (121) Net carrying value $ 3,370 $ 1,529 $ 4,899 The carrying value of the Company’s 2019 Credit Facility at December 31, 2020, was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 4,400 $ 4,020 $ 8,420 Unamortized debt discounts (158) (272) (430) Net carrying value $ 4,242 $ 3,748 $ 7,990 |
Summary of principal repayments of credit facility | The table below includes the principal repayments due under the 2019 Credit Facility as of December 31, 2021 (in thousands): Principal Repayment as of December 31, 2021 2022 3,400 2023 1,620 Total principal repayments $ 5,020 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity | |
Summary of common stock reserved for future issuance | December 31, 2021 2020 Options issued and outstanding 1,783,298 2,272,905 Shares available for future option grants 1,038,956 179,219 RSUs subject to future vesting 384,307 416,742 Common stock warrants 27,836 49,336 Total 3,234,397 2,918,202 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of stock option activity | Options Outstanding Weighted- Weighted- Options and Average Average Aggregate Awards Exercise Remaining Intrinsic Available for Number of Price Per Contractual Value Grant Options Share Life (years) (In thousands) Balance—December 31, 2020 179,219 2,272,905 $ 5.58 7.9 $ 1,640 Authorized 1,120,946 RSUs granted (522,814) RSUs cancelled/forfeited 135,909 Options granted (788,441) 766,978 $ 5.63 Options exercised — (321,694) $ 5.15 $ 1,783 Options cancelled/forfeited 914,137 (934,891) $ 6.47 Balance—December 31, 2021 1,038,956 1,783,298 $ 5.21 8.0 $ 10,891 Options exercisable—December 31, 2021 609,459 $ 5.77 6.3 $ 3,400 |
Schedule of restricted stock unit activity | RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2020 416,742 $ 4.89 Granted 522,814 $ 5.52 Vested (419,340) $ 5.61 Cancelled/forfeited (135,909) $ 4.77 Balance—December 31, 2021 384,307 $ 5.00 |
Employee | |
Schedule of fair value assumptions | Year Ended December 31, 2021 2020 Expected volatility 72.6 - 74.1 % 74.4 - 79.3 % Risk-free interest rate 0.62 - 1.30 % 0.22 - 1.63 % Expected term (in years) 5.9 - 6.1 6.07 - 6.08 Dividend yield — % — % |
ESPP | |
Schedule of fair value assumptions | Year Ended December 31, 2021 2020 Expected volatility 40.7 - 100.7 % 44.7 - 100.7 % Risk-free interest rate 0.05 - 0.13 % 0.12 - 1.68 % Expected term (in years) 0.5 - 1.0 0.5 - 1.0 Dividend yield — % — % |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Geographic Information | |
Schedule of property and equipment by country | Property and equipment, net by country was as follows (in thousands): December 31, 2021 2020 United States $ 825 $ 1,415 Singapore 88 287 Other 60 244 $ 973 $ 1,946 |
Schedule of revenue by country | Year Ended December 31, 2021 2020 Hong Kong $ 17,403 $ 18,258 United States 15,662 5,743 Japan 7,315 5,403 Canada 3,797 3,423 China 2,731 2,403 All other 8,238 6,801 Total revenue $ 55,146 $ 42,031 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule of components of income taxes | Year Ended December 31, 2021 2020 Current: Federal $ — $ — State 4 — Foreign — 260 Total Current $ 4 $ 260 Deferred: Federal $ — $ — State — — Foreign — — Total Deferred $ — $ — Provision for income taxes $ 4 $ 260 |
Schedule of reconciliation of statutory federal income tax rate | Year Ended December 31, 2021 2020 Tax at statutory federal rate 21.0 % (21.0) % State taxes, net of federal benefit 1.8 (1.5) Stock-based compensation 4.7 5.4 Change in uncertain tax benefits — 3.1 Change in valuation allowance (27.5) 17.0 Other 0.1 — Provision for income taxes 0.1 % 3.0 % |
Schedule of tax effects of temporary differences and carryforwards | The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 30,658 $ 31,683 Inventory 278 147 Accruals 801 254 Depreciation and amortization 240 240 Limitation on business interest — 268 Stock-based compensation 177 676 Right of use liability 206 549 Gross deferred tax assets 32,360 33,817 Valuation allowance (32,047) (33,265) Deferred tax assets 313 552 Deferred tax liabilities: Right of use asset (209) (527) Other (104) (25) Deferred tax liabilities (313) (552) Net deferred tax assets $ — $ — |
Schedule of changes in the Company's gross unrecognized tax benefits | A summary of changes in the Company’s gross unrecognized tax benefits for the years ended December 31, 2021 and 2020 was as follows (in thousands): Year Ended December 31, 2021 2020 Unrecognized tax expense, beginning of the year $ 104 $ — (Decrease)/increase related to prior year tax positions (12) 91 Increase related to current year tax positions 13 13 Unrecognized tax expense, end of year $ 105 $ 104 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Income (Loss) Per Common Share | |
Computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except share and per share amounts): Year Ended December 31, 2021 2020 Numerator: Net income (loss) $ 4,343 $ (8,512) Denominator: Weighted-average common shares outstanding used to calculate net income (loss) per common share, basic 19,400,124 18,782,287 Net income (loss) per common share, basic $ 0.22 $ (0.45) Year Ended December 31, 2021 2020 Numerator: Net income (loss) $ 4,343 $ (8,512) Denominator: Weighted-average common shares outstanding used to calculate net income (loss) per common share, basic 19,400,124 18,782,287 Effect of dilutive securities 572,021 — Weighted-average common shares outstanding used to calculate net income (loss) per common share, diluted 19,972,145 18,782,287 Net income (loss) per common share, diluted $ 0.22 $ (0.45) |
Schedule of potentially dilutive securities excluded from diluted net loss per common share | Year Ended December 31, 2021 2020 Options to purchase common stock 1,221,720 2,272,905 RSUs 9,815 416,742 Common stock warrants 27,836 49,336 Total 1,259,371 2,738,983 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable | ||
Trade accounts receivable | $ 8,140 | $ 7,590 |
Unbilled accounts receivable | 450 | 255 |
Allowance for product returns and price adjustments | (397) | (238) |
Accounts receivable, net | $ 8,193 | $ 7,607 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable for Each Significant Customer (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue [Member] | Customer A [Member] | ||
Concentration risk | ||
Concentration risk percentage | 29.00% | |
Revenue [Member] | Customer A [Member] | Maximum [Member] | ||
Concentration risk | ||
Concentration risk percentage | 10.00% | |
Revenue [Member] | Customer B [Member] | ||
Concentration risk | ||
Concentration risk percentage | 22.00% | 11.00% |
Accounts Receivable, net [Member] | Customer A [Member] | ||
Concentration risk | ||
Concentration risk percentage | 29.00% | |
Accounts Receivable, net [Member] | Customer A [Member] | Maximum [Member] | ||
Concentration risk | ||
Concentration risk percentage | 10.00% | |
Accounts Receivable, net [Member] | Customer B [Member] | ||
Concentration risk | ||
Concentration risk percentage | 54.00% | 25.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Total assets measured at fair value | $ 21,508 | $ 14,669 |
Warrant liability | 50 | 31 |
Total liabilities measured at fair value | 50 | 31 |
Level 1 [Member] | ||
Fair Value | ||
Total assets measured at fair value | 21,508 | 14,669 |
Level 3 [Member] | ||
Fair Value | ||
Warrant liability | 50 | 31 |
Total liabilities measured at fair value | 50 | 31 |
Money Market Funds [Member] | ||
Fair Value | ||
Money market funds | 21,508 | 14,669 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value | ||
Money market funds | $ 21,508 | $ 14,669 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Impairment of Long-lived Assets | ||
Impairment of long-lived assets | $ 0 | $ 0 |
Computer and network equipment | ||
Property and Equipment, Net | ||
Useful Lives | 2 years | |
Manufacturing equipment | Minimum [Member] | ||
Property and Equipment, Net | ||
Useful Lives | 2 years | |
Manufacturing equipment | Maximum [Member] | ||
Property and Equipment, Net | ||
Useful Lives | 7 years | |
Furniture and fixtures | ||
Property and Equipment, Net | ||
Useful Lives | 7 years | |
Software | ||
Property and Equipment, Net | ||
Useful Lives | 3 years | |
Leasehold improvements | ||
Property and Equipment, Net | ||
Useful Lives | 2 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Operating lease - existence of option to extend | true |
Finance lease - existence of option to extend | true |
Minimum [Member] | |
Leases | |
Operating lease renewal term (in years) | 2 years |
Finance lease renewal term (in years) | 2 years |
Maximum [Member] | |
Leases | |
Operating term of lease (in years) | 7 years |
Operating lease renewal term (in years) | 5 years |
Finance term of lease (in years) | 5 years |
Finance lease renewal term (in years) | 5 years |
Revenue - Disaggregated by Sale
Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue | ||
Revenue | $ 55,146 | $ 42,031 |
Distributor | ||
Disaggregation of Revenue | ||
Revenue | 36,479 | 26,027 |
Non-distributor | ||
Disaggregation of Revenue | ||
Revenue | $ 18,667 | $ 16,004 |
Revenue - Disaggregated by Timi
Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue | ||
Revenue | $ 55,146 | $ 42,031 |
Point in time | ||
Disaggregation of Revenue | ||
Revenue | 51,204 | 40,846 |
Over time | ||
Disaggregation of Revenue | ||
Revenue | $ 3,942 | $ 1,185 |
Revenue - Disaggregated by Type
Revenue - Disaggregated by Type (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2021patent | Sep. 30, 2021USD ($)patent | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Disaggregation of Revenue | ||||
Revenue | $ 55,146 | $ 42,031 | ||
Product sales | ||||
Disaggregation of Revenue | ||||
Revenue | 43,931 | 39,848 | ||
Royalties | ||||
Disaggregation of Revenue | ||||
Revenue | 2,021 | 998 | ||
Revenue recognized in current year due to a change in estimate | 800 | |||
Patents | ||||
Disaggregation of Revenue | ||||
Revenue | 5,250 | |||
Number of patents sold | patent | 5 | |||
Amount to be received from sale of patents | $ 5,250 | |||
Patents | Patents assigned in September 2021 | ||||
Disaggregation of Revenue | ||||
Number of patents sold | patent | 2 | |||
Patents | Patents assigned in October 2021 | ||||
Disaggregation of Revenue | ||||
Number of patents sold | patent | 3 | |||
Other revenue | ||||
Disaggregation of Revenue | ||||
Revenue | $ 3,944 | $ 1,185 |
Revenue - Disaggregated by Geog
Revenue - Disaggregated by Geographic Region (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)region | Dec. 31, 2020USD ($) | |
Disaggregation of Revenue | ||
Number of primary geographic regions | region | 3 | |
Revenue | $ 55,146 | $ 42,031 |
APAC | ||
Disaggregation of Revenue | ||
Revenue | 32,327 | 29,480 |
North America | ||
Disaggregation of Revenue | ||
Revenue | 15,813 | 9,253 |
EMEA | ||
Disaggregation of Revenue | ||
Revenue | $ 7,006 | $ 3,298 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory | ||
Raw materials | $ 464 | $ 329 |
Work-in-process | 4,620 | 4,910 |
Finished goods | 1,312 | 482 |
Total inventory | $ 6,396 | $ 5,721 |
Balance Sheet Components - Prop
Balance Sheet Components - Property and Equipment Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property and Equipment, Net | ||
Total property and equipment, gross | $ 16,176 | $ 15,694 |
Less: accumulated depreciation | (15,203) | (13,748) |
Total property and equipment, net | 973 | 1,946 |
Depreciation and amortization expense | 1,500 | 2,000 |
Manufacturing equipment | ||
Property and Equipment, Net | ||
Total property and equipment, gross | 12,608 | 12,296 |
Computer and network equipment | ||
Property and Equipment, Net | ||
Total property and equipment, gross | 1,008 | 917 |
Furniture and fixtures | ||
Property and Equipment, Net | ||
Total property and equipment, gross | 187 | 112 |
Software | ||
Property and Equipment, Net | ||
Total property and equipment, gross | 929 | 925 |
Leasehold improvements | ||
Property and Equipment, Net | ||
Total property and equipment, gross | $ 1,444 | $ 1,444 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued liabilities | ||
Payroll-related expenses | $ 2,845 | $ 1,274 |
Inventory | 177 | 416 |
Other | 557 | 542 |
Total accrued liabilities | $ 3,579 | $ 2,232 |
Balance Sheet Components - Defe
Balance Sheet Components - Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Revenue | ||
Revenue | $ 55,146 | $ 42,031 |
Deferred licensing revenue | 832 | |
RAD-Hard product | ||
Deferred Revenue | ||
Total amount of consideration to be received | 6,500 | |
Revenue | 3,300 | |
Deferred licensing revenue | 800 | |
Amount billed for the performance under contractual agreements | 4,100 | |
Revenue expected to be recognized | $ 3,200 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)lease | Dec. 31, 2020USD ($) | |
Lease information | ||
Right-of-use assets | $ 913 | $ 2,313 |
Future operating lease payments | ||
Less: current portion of operating lease liabilities | (724) | (1,508) |
Total operating lease liabilities, net of current portion | $ 68 | $ 903 |
Other lease information | ||
Weighted-average remaining lease term (years) | 1 year 29 days | 1 year 8 months 26 days |
Weighted-average discount rate | 6.00% | 6.00% |
Operating lease costs | $ 1,500 | $ 1,500 |
Chandler Arizona and Austin Texas leased space | ||
Lease information | ||
Number of operating leases | lease | 2 | |
Future operating lease payments | ||
2022 | $ 531 | |
2023 | 579 | |
2024 | 594 | |
2025 | 610 | |
2026 | 626 | |
Thereafter | 964 | |
Total lease payments | 3,904 | |
Office and Lab Space | ||
Lease information | ||
Operating leases liabilities | 792 | |
Future operating lease payments | ||
2022 | 746 | |
2023 | 68 | |
Total lease payments | 814 | |
Less: imputed interest | (22) | |
Total operating lease liabilities | 792 | |
Less: current portion of operating lease liabilities | (724) | |
Total operating lease liabilities, net of current portion | $ 68 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 22, 2021 | Jun. 30, 2020 | Aug. 05, 2019 | Jul. 31, 2020 | Aug. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 20, 2020 |
Debt | ||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | ||||||
Exercise of warrants (in shares) | 21,463 | |||||||
Other (expense) income | $ (141) | $ (24) | ||||||
2019 Credit Facility | ||||||||
Debt | ||||||||
Number of shares the warrant can be converted to | 9,375 | 21,500 | ||||||
Warrant exercise price | $ 8.91 | $ 0.01 | ||||||
Amount bank could receive if takes the option to put the warrants upon expiration or a liquidity event | $ 50 | |||||||
Fair value of warrants | $ 152 | |||||||
Principal amount | 5,020 | 8,420 | ||||||
Other (expense) income | $ (19) | $ 2 | ||||||
2019 Credit Facility | Prime Rate [Member] | ||||||||
Debt | ||||||||
Effective interest rate | 3.75% | |||||||
2019 Credit Facility - Revolving Line Of Credit | ||||||||
Debt | ||||||||
Loan agreement amount | $ 5,000 | |||||||
Agreement term | 2 years | |||||||
Effective interest rate | 6.75% | 4.75% | 10.18% | |||||
Commitment fee (as a percentage) | 1.60% | |||||||
Termination fee (as a percentage) | 1.00% | |||||||
Unused facility fee (as a percentage) | 0.125% | |||||||
Remaining availability | $ 4,000 | |||||||
Outstanding balance | $ 1,000 | |||||||
2019 Credit Facility - Revolving Line Of Credit | Minimum [Member] | ||||||||
Debt | ||||||||
Effective interest rate | 4.75% | |||||||
2019 Credit Facility - Revolving Line Of Credit | Prime Rate [Member] | ||||||||
Debt | ||||||||
Interest rate, basis spread percentage | 1.50% | |||||||
2019 Credit Facility - Revolving Line Of Credit | Prime Rate [Member] | Minimum [Member] | ||||||||
Debt | ||||||||
Effective interest rate | 4.75% | |||||||
2019 Credit Facility - Term Loan | ||||||||
Debt | ||||||||
End-of-term fee (as a percent) | 7.00% | |||||||
Agreement term | 46 months | |||||||
Effective interest rate | 4.75% | 3.75% | 7.85% | |||||
Prepayment fee (as a percentage) | 2.00% | |||||||
Debt amount | $ 6,000 | |||||||
Number of months of interest only payment | 12 months | 16 months | ||||||
Number of months of equal principal payments plus accrued interest | 30 months | |||||||
Outstanding balance | $ 4,000 | |||||||
2019 Credit Facility - Term Loan | Prime Rate [Member] | ||||||||
Debt | ||||||||
Interest rate, negative basis spread percentage | 0.75% | |||||||
Effective interest rate | 3.75% |
Debt - Carrying Value (Details)
Debt - Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt | ||
Net carrying value of debt, Current Portion | $ 3,370 | $ 4,242 |
Net carrying value of debt, Long-term debt | 1,529 | 3,748 |
2019 Credit Facility | ||
Debt | ||
Debt, Current Portion | 3,400 | 4,400 |
Less: Debt issuance costs, Current Portion | (30) | (158) |
Net carrying value of debt, Current Portion | 3,370 | 4,242 |
Debt, including end of term fee, Long-term debt | 1,620 | 4,020 |
Less: Unamortized debt discounts, Long-term debt | (91) | (272) |
Net carrying value of debt, Long-term debt | 1,529 | 3,748 |
Total principal repayments | 5,020 | 8,420 |
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Total | (121) | (430) |
Net carrying value of debt, Total | $ 4,899 | $ 7,990 |
Debt - Summary of Principal Rep
Debt - Summary of Principal Repayments of 2019 Credit Facility (Details) - 2019 Credit Facility - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt | ||
2022 | $ 3,400 | |
2023 | 1,620 | |
Total principal repayments | $ 5,020 | $ 8,420 |
Stockholders' Equity - (Details
Stockholders' Equity - (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock reserved | |||
Dividends on common stock | $ 0 | ||
Reserved shares of common stock for future issuance | 3,234,397 | 2,918,202 | |
Common stock warrants | |||
Common stock reserved | |||
Reserved shares of common stock for future issuance | 27,836 | 49,336 | |
Options Issued and Outstanding [Member] | |||
Common stock reserved | |||
Reserved shares of common stock for future issuance | 1,783,298 | 2,272,905 | |
Shares Available for Future Option Grants [Member] | |||
Common stock reserved | |||
Reserved shares of common stock for future issuance | 1,038,956 | 179,219 | |
RSUs subject to future vesting | |||
Common stock reserved | |||
Reserved shares of common stock for future issuance | 384,307 | 416,742 | |
At-the-Market Sales Agreement | |||
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 |
Stockholders' Equity - Warrants
Stockholders' Equity - Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 05, 2019 | Jul. 20, 2020 | Jun. 30, 2015 |
2019 Credit Facility | |||
Warrants | |||
Number of shares the warrant can be converted to | 9,375 | 21,500 | |
Warrant exercise price | $ 8.91 | $ 0.01 | |
Fair Value Of Warrants | $ 152 | ||
Amount bank could receive if takes the option to put the warrants upon expiration or a liquidity event | $ 50 | ||
Warrants to Purchase Series B Redeemable Convertible Preferred Stock [Member] | 2015 Credit Facility [Member] | |||
Warrants | |||
Number of shares the warrant can be converted to | 18,461 | ||
Warrant exercise price | $ 26 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Options and Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-based compensation | ||
Options and Awards Available for Grant, Outstanding, Beginning balance | 179,219 | |
Options and Awards Available for Grant, Options authorized | 1,120,946 | |
Options and Awards Available for Grant, Options granted | (788,441) | |
Options and Awards Available for Grant, Options cancelled/forfeited | 914,137 | |
Options and Awards Available for Grant, Outstanding, Ending balance | 1,038,956 | 179,219 |
Number of Options, Outstanding, Beginning balance | 2,272,905 | |
Number of Options, Options granted | 766,978 | |
Number of Options, Options exercised | (321,694) | |
Number of Options, Options cancelled/forfeited | (934,891) | |
Number of Options, Outstanding, Ending balance | 1,783,298 | 2,272,905 |
Number of Options, exercisable | 609,459 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance | $ 5.58 | |
Weighted - Average Exercise Price Per Share, Options granted | 5.63 | |
Weighted - Average Exercise Price Per Share, Options exercised | 5.15 | |
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited | 6.47 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance | 5.21 | $ 5.58 |
Weighted - Average Exercise Price Per Share, Options exercisable | $ 5.77 | |
Weighted - Average Remaining Contractual Life, Options outstanding | 8 years | 7 years 10 months 24 days |
Weighted - Average Remaining Contractual Life, Options exercisable | 6 years 3 months 18 days | |
Aggregate Intrinsic Value, Options outstanding | $ 10,891 | $ 1,640 |
Aggregate Intrinsic Value, Options exercised | 1,783 | |
Aggregate Intrinsic Value, Options exercisable | $ 3,400 | |
RSUs | ||
Stock-based compensation | ||
Options and Awards Available for Grant, RSUs granted | (522,814) | |
Options Available for Grant, RSUs cancelled/forfeited | 135,909 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | May 01, 2021 | Oct. 07, 2016 | Dec. 31, 2021 | Dec. 31, 2020 |
Share-based Compensation | ||||
Total grant date fair value of options vested | $ 900,000 | $ 2,200,000 | ||
Weighted-average grant date fair value of options granted | $ 3.60 | $ 1.81 | ||
Number of Options, Options cancelled/forfeited | 934,891 | |||
Number of shares reserved and available for future issuance | 3,206,561 | |||
Shares available for future issuance (in shares) | 1,038,956 | 179,219 | ||
Value of share issued | $ 2,256,000 | $ 1,595,000 | ||
Weighted-average exercise price (per share) | $ 5.21 | $ 5.58 | ||
Number of stock options granted (in shares) | 766,978 | |||
Options remained outstanding | 1,783,298 | 2,272,905 | ||
2016 Employee Incentive Plan [Member] | ||||
Share-based Compensation | ||||
Maximum number of common stock shares may be issued under the plan | 500,000 | |||
Annual increases in the number of shares available for issuance, percentage of outstanding capital stock | 3.00% | |||
Increase in number of shares reserved for issuance (in shares) | 550,000 | |||
Shares available for future issuance (in shares) | 1,038,956 | |||
2008 Equity Incentive Plan [Member] | ||||
Share-based Compensation | ||||
Number of stock options granted (in shares) | 0 | |||
Options remained outstanding | 79,910 | |||
ESPP | ||||
Share-based Compensation | ||||
Shares available for future issuance (in shares) | 652,771 | |||
Value of share issued | $ 236,000 | $ 112,000 | ||
Number of shares issued (in shares) | 64,407 | 49,951 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 3.2 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 9 months 18 days |
RSUs | |
Number of Restricted Stock Units | |
Balance, beginning of period | shares | 416,742 |
Granted | shares | 522,814 |
Vested | shares | (419,340) |
Cancelled/forfeited | shares | (135,909) |
Balance, end of period | shares | 384,307 |
Weighted Average Exercise Price Per Share | |
Balance, beginning of period (price per share) | $ / shares | $ 4.89 |
Granted (price per share) | $ / shares | 5.52 |
Vested (price per share) | $ / shares | 5.61 |
Cancelled/forfeited (price per share) | $ / shares | 4.77 |
Balance, end of period (price per share) | $ / shares | $ 5 |
2016 Employee Incentive Plan [Member] | |
Weighted Average Exercise Price Per Share | |
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 9 months 18 days |
2016 Employee Incentive Plan [Member] | RSUs | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 1.4 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 3 months 18 days |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee | Options to Purchase Common Stock [Member] | ||
Share-based Compensation | ||
Expected volatility, Minimum | 72.60% | 74.40% |
Expected volatility, Maximum | 74.10% | 79.30% |
Risk-free interest rate, Minimum | 0.62% | 0.22% |
Risk-free interest rate, Maximum | 1.30% | 1.63% |
Minimum [Member] | Employee | Options to Purchase Common Stock [Member] | ||
Share-based Compensation | ||
Expected term (in years) | 5 years 10 months 24 days | 6 years 25 days |
Maximum [Member] | Employee | Options to Purchase Common Stock [Member] | ||
Share-based Compensation | ||
Expected term (in years) | 6 years 1 month 6 days | 6 years 29 days |
ESPP | ||
Share-based Compensation | ||
Expected volatility, Minimum | 40.70% | 44.70% |
Expected volatility, Maximum | 100.70% | 100.70% |
Risk-free interest rate, Minimum | 0.05% | 0.12% |
Risk-free interest rate, Maximum | 0.13% | 1.68% |
ESPP | Minimum [Member] | ||
Share-based Compensation | ||
Expected term (in years) | 6 months | 6 months |
ESPP | Maximum [Member] | ||
Share-based Compensation | ||
Expected term (in years) | 1 year | 1 year |
Significant Agreements (Details
Significant Agreements (Details) - USD ($) $ in Thousands | Oct. 17, 2014 | Sep. 30, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 |
Joint Development Agreement [Member] | Global Foundries, Inc. [Member] | |||||
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 | ||||
Collaborative Agreement | Silterra | |||||
Joint development agreement | |||||
Non-recurring engineering cost obligation | $ 1,000 | ||||
JCA costs was paid | $ 0 | $ 0 | $ 600 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Geographic Information | ||
Property and equipment, net | $ 973 | $ 1,946 |
Revenue | 55,146 | 42,031 |
Hong Kong | ||
Geographic Information | ||
Revenue | 17,403 | 18,258 |
United States | ||
Geographic Information | ||
Property and equipment, net | 825 | 1,415 |
Revenue | 15,662 | 5,743 |
Japan | ||
Geographic Information | ||
Revenue | 7,315 | 5,403 |
Canada | ||
Geographic Information | ||
Revenue | 3,797 | 3,423 |
China | ||
Geographic Information | ||
Revenue | 2,731 | 2,403 |
Singapore | ||
Geographic Information | ||
Property and equipment, net | 88 | 287 |
All other | ||
Geographic Information | ||
Property and equipment, net | 60 | 244 |
Revenue | $ 8,238 | $ 6,801 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
State | $ 4 | |
Foreign | $ 260 | |
Total Current | 4 | 260 |
Provision for income taxes | $ 4 | $ 260 |
Income Taxes - Reconciliation E
Income Taxes - Reconciliation Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | ||
Provision for income taxes | $ 4 | $ 260 |
Reconciliation of statutory federal income tax | ||
Tax at statutory federal rate | 21.00% | 21.00% |
State taxes, net of federal benefit | 1.80% | (1.50%) |
Stock-based compensation | 4.70% | 5.40% |
Change in uncertain tax benefits | 3.10% | |
Change in valuation allowance | (27.50%) | 17.00% |
Other | 0.10% | |
Provision for income taxes | 0.10% | 3.00% |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 30,658 | $ 31,683 |
Inventory | 278 | 147 |
Accruals | 801 | 254 |
Depreciation and amortization | 240 | 240 |
Limitation on business interest | 268 | |
Stock-based compensation | 177 | 676 |
Right of use liability | 206 | 549 |
Gross deferred tax assets | 32,360 | 33,817 |
Valuation allowance | (32,047) | (33,265) |
Deferred tax assets | 313 | 552 |
Deferred tax liabilities: | ||
Right of use asset | (209) | (527) |
Other | (104) | (25) |
Deferred tax liabilities | (313) | $ (552) |
(Decrease) increase in valuation allowance | $ (1,200) | |
Tax at statutory federal rate | 21.00% | 21.00% |
Income Taxes - Net operating lo
Income Taxes - Net operating loss carryforwards and Tax Act (Details) $ in Millions | Dec. 31, 2021USD ($) |
Federal | |
Net operating loss carryforwards | |
Net operating loss carryforwards | $ 136 |
Net operating loss carryforwards, which will expire if not utilized | 95.2 |
Net operating loss carryforwards, which will carryover indefinitely | 40.8 |
Net operating loss carryforwards, subject to expiration per IRC Section 382 | 43.8 |
Net operating loss carryforwards (tax effected), subject to expiration per IRC Section 382 | 9.2 |
State | |
Net operating loss carryforwards | |
Net operating loss carryforwards | 52.1 |
Net operating loss carryforwards, which will expire if not utilized | 49.3 |
Net operating loss carryforwards, which will carryover indefinitely | $ 2.8 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unrecognized tax expense rollforward | ||
Unrecognized tax expense, beginning of the year | $ 104 | |
(Decrease)/increase related to prior year tax positions | (12) | $ 91 |
Increase related to current year tax positions | 13 | 13 |
Unrecognized tax expense, end of year | 105 | 104 |
Interest and penalties on unrecognized tax benefit | $ 155 | $ 156 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | ||
Net income (loss) | $ 4,343 | $ (8,512) |
Net income (loss) per common share, basic | ||
Weighted average common shares used to compute net income (loss) per common share attributable to common stockholders, basic | 19,400,124 | 18,782,287 |
Net income (loss) per share attributable to common share, basic | $ 0.22 | $ (0.45) |
Net income (loss) per common share, diluted | ||
Effect of dilutive | 572,021 | |
Weighted-average common shares outstanding used to calculate net income (loss) per common share, diluted | 19,972,145 | 18,782,287 |
Net income (loss) per common share, diluted | $ 0.22 | $ (0.45) |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Schedule of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Common Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 1,259,371 | 2,738,983 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 1,221,720 | 2,272,905 |
RSUs | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 9,815 | 416,742 |
Common stock warrants | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 27,836 | 49,336 |