Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 09, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
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 130 | |
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 $0.0001 | |
Trading Symbol | MRAM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,033,377 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001438423 | |
Amendment Flag | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 19,885 | $ 21,409 |
Accounts receivable, net | 10,240 | 8,193 |
Inventory | 6,208 | 6,396 |
Prepaid expenses and other current assets | 636 | 762 |
Total current assets | 36,969 | 36,760 |
Property and equipment, net | 959 | 973 |
Right-of-use assets | 3,974 | 913 |
Other assets | 769 | 734 |
Total assets | 42,671 | 39,380 |
Current liabilities: | ||
Accounts payable | 2,287 | 1,776 |
Accrued liabilities | 1,565 | 3,579 |
Deferred revenue | 330 | 832 |
Current portion of long-term debt | 3,377 | 3,370 |
Lease liabilities | 942 | 724 |
Other liabilities | 39 | 50 |
Total current liabilities | 8,540 | 10,331 |
Long-term debt, net of current portion | 954 | 1,529 |
Lease liabilities, net of current portion | 2,897 | 68 |
Long-term income tax liability | 214 | 214 |
Total liabilities | 12,605 | 12,142 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2022 and December 31, 2021 | ||
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 19,970,786 and 19,858,460 shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 2 | 2 |
Additional paid-in capital | 180,960 | 180,067 |
Accumulated deficit | (150,896) | (152,831) |
Total stockholders' equity | 30,066 | 27,238 |
Total liabilities and stockholders' equity | $ 42,671 | $ 39,380 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Condensed 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 | 19,970,786 | 19,858,460 |
Common stock, shares outstanding | 19,970,786 | 19,858,460 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Total revenue | $ 14,347 | $ 10,280 |
Total cost of sales | 6,024 | 4,295 |
Gross profit | 8,323 | 5,985 |
Operating expenses: | ||
Research and development | 2,436 | 2,439 |
General and administrative | 2,729 | 2,843 |
Sales and marketing | 1,134 | 987 |
Total operating expenses | 6,299 | 6,269 |
Income (loss) from operations | 2,024 | (284) |
Interest expense | (75) | (152) |
Other expense, net | (14) | (15) |
Net income (loss) before income taxes | 1,935 | (451) |
Income tax expense | (9) | |
Net income (loss) and comprehensive income (loss) | $ 1,935 | $ (460) |
Net income (loss) per share attributable to common share, basic | $ 0.10 | $ (0.02) |
Net income (loss) per common share, diluted | $ 0.09 | $ (0.02) |
Weighted average shares of common stock outstanding, basic | 19,896,654 | 19,092,367 |
Weighted average shares of common stock outstanding, diluted | 20,726,193 | 19,092,367 |
Product sales | ||
Total revenue | $ 12,671 | $ 9,068 |
Total cost of sales | 5,752 | 4,256 |
Licensing, royalty, patent and other revenue | ||
Total revenue | 1,676 | 1,212 |
Total cost of sales | $ 272 | $ 39 |
Condensed Statements of Opera_2
Condensed Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 824 | $ 743 |
Research and Development [Member] | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 333 | 181 |
General and Administrative [Member] | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 371 | 485 |
Sales and Marketing [Member] | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 120 | $ 77 |
Condensed Statements of Stockho
Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
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 | 144 | 144 | ||
Exercise of stock options (in shares) | 54,077 | |||
Issuance of common stock under stock incentive plans | 364 | 364 | ||
Issuance of common stock under stock incentive plans (in shares) | 136,709 | |||
Stock-based compensation expense | 743 | 743 | ||
Net income (loss) | (460) | (460) | ||
Balance at Mar. 31, 2021 | $ 2 | 175,835 | (157,634) | 18,203 |
Balance (in shares) at Mar. 31, 2021 | 19,222,342 | |||
Balance at Dec. 31, 2021 | $ 2 | 180,067 | (152,831) | 27,238 |
Balance (in shares) at Dec. 31, 2021 | 19,858,460 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options | 69 | $ 69 | ||
Exercise of stock options (in shares) | 15,830 | 15,830 | ||
Issuance of common stock under stock incentive plans (in shares) | 96,496 | |||
Stock-based compensation expense | 824 | $ 824 | ||
Net income (loss) | 1,935 | 1,935 | ||
Balance at Mar. 31, 2022 | $ 2 | $ 180,960 | $ (150,896) | $ 30,066 |
Balance (in shares) at Mar. 31, 2022 | 19,970,786 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income (loss) | $ 1,935 | $ (460) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 258 | 383 |
Stock-based compensation | 824 | 743 |
Non-cash warrant revaluation | (11) | 4 |
Non-cash interest expense | 32 | 86 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,047) | (2,708) |
Inventory | 188 | 363 |
Prepaid expenses and other current assets | 126 | 62 |
Right-of-use assets | (3,061) | 343 |
Other assets | (13) | |
Accounts payable | 267 | (63) |
Accrued liabilities | (2,014) | 280 |
Deferred revenue | (502) | 3,000 |
Lease liabilities | 3,047 | (382) |
Net cash (used in) provided by operating activities | (971) | 1,651 |
Cash flows from investing activities | ||
Purchases of property and equipment | (22) | (309) |
Net cash used in investing activities | (22) | (309) |
Cash flows from financing activities | ||
Payments on long-term debt | (600) | (600) |
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan | 69 | 144 |
Net cash used in financing activities | (531) | (456) |
Net (decrease) increase in cash and cash equivalents | (1,524) | 886 |
Cash and cash equivalents at beginning of period | 21,409 | 14,599 |
Cash and cash equivalents at end of period | 19,885 | 15,485 |
Supplementary cash flow information: | ||
Interest paid | 43 | 66 |
Operating cash flows paid for operating leases | 318 | 413 |
Financing cash flows paid for finance leases | 2 | |
Non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease liabilities | 3,350 | |
Right-of-use assets obtained in exchange for finance lease liabilities | 36 | |
Purchases of property and equipment in accounts payable and accrued liabilities | $ 257 | |
Bonus settled in shares of common stock | $ 364 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization and Nature of Business | |
Organization and Nature of Business | 1. Organization and Nature of Business Everspin Technologies, Inc. (the Company) was incorporated in Delaware on May 16, 2008. The Company’s magnetoresistive random-access memory (MRAM) solutions offer the persistence of non-volatile memory with the speed and endurance of random-access memory (RAM) and enable the protection of mission critical data particularly in the event of power interruption or failure. The Company’s MRAM solutions allow its customers in key markets, such as industrial, medical, automotive/transportation, aerospace and data center markets to design high performance, power efficient and reliable systems without the need for bulky batteries or capacitors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2021, has been derived from the audited financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial information. The results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period or for any other future year. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company believes that its existing cash and cash equivalents as of March 31, 2022, 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. Prior Period Reclassifications Certain immaterial prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory reserves, product warranty reserves, deferred tax assets and related valuation allowances, and stock-based compensation. The Company believes its estimates and assumptions are reasonable; however, actual results may differ from the Company’s estimates. Accounts receivable, net The Company establishes an allowance for product returns. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of products when evaluating the adequacy of sales returns. Returns are processed as credits on future purchases 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. Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Trade accounts receivable $ 9,798 $ 8,140 Unbilled accounts receivable 968 450 Other receivables 51 — Allowance for product returns and price adjustments (577) (397) Accounts receivable, net $ 10,240 $ 8,193 Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by a financial institution in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. For the purposes of this disclosure, the Company defines “customer” as the entity that is purchasing the products or licenses directly from the Company, which includes the distributors of the Company’s products in addition to end customers that the Company sells to directly. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows: Revenue Accounts Receivable, net Three Months Ended As of March 31, March 31, December 31, Customers 2022 2021 2022 2021 Customer A * * 13 % * Customer B 18 % 27 % 46 % 54 % Customer C 13 % * * * * Less than 10% Fair Value of Financial Instruments Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows: Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions. As of March 31, 2022, 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. 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 Company’s current credit facility (Note 6). The following tables sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 19,898 $ — $ — $ 19,898 Total assets measured at fair value $ 19,898 $ — $ — $ 19,898 Liabilities: Warrant liability $ — $ — $ 39 $ 39 Total liabilities measured at fair value $ — $ — $ 39 $ 39 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 Recently Issued Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements Financial Instruments-Credit Losses (Topic 326) We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue. | |
Revenue | 3. Revenue The Company sells products to its distributors and OEMs. The Company also recognized revenue under licensing, patent, and royalty agreements with some customers. The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Three Months Ended March 31, 2022 2021 Distributor $ 10,794 $ 7,866 Non-distributor 3,553 2,414 Total revenue $ 14,347 $ 10,280 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended March 31, 2022 2021 Point in time $ 13,646 $ 10,034 Over time 701 246 Total revenue $ 14,347 $ 10,280 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended March 31, 2022 2021 Product sales $ 12,671 $ 9,068 Licensing 575 — Royalties 400 966 Other revenue 701 246 Total revenue $ 14,347 $ 10,280 The Company recognizes revenue in three primary geographic regions: Asia-Pacific (APAC); North America; and Europe, Middle East and Africa (EMEA). The Company recognizes revenue by geography based on the region in which the products are sold, and not to where the end products in which they are assembled are shipped. The Company’s revenue by region for the periods indicated was as follows (in thousands): Three Months Ended March 31, 2022 2021 APAC $ 9,234 $ 7,158 North America 3,105 1,740 EMEA 2,008 1,382 Total revenue $ 14,347 $ 10,280 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Balance Sheet Components Inventory Inventory consisted of the following (in thousands): March 31, December 31, 2022 2021 Raw materials $ 360 $ 464 Work-in-process 4,499 4,620 Finished goods 1,349 1,312 Total inventory $ 6,208 $ 6,396 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2022 2021 Payroll-related expenses $ 859 $ 2,845 Inventory 314 177 Other 392 557 Total accrued liabilities $ 1,565 $ 3,579 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. As of March 31, 2022, the Company has billed $4.2 million for the performance under the contractual agreements. Under the input method of recognition, the Company has recognized $0.6 million in revenue for the three-months ended March 31, 2022, and $3.9 million in revenue since inception of the contractual agreement. As a result, the Company has recorded $0.3 million in deferred revenue as of March 31, 2022. The Company expects to recognize the remaining $2.6 million of the transaction price as services are performed throughout the contractual period and performance is expected to be complete in the year ended December 31, 2024. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Leases | 5. Leases Operating leases consist primarily of office space expiring at various dates through 2029. Finance leases relate to a server lease expiring in January 2025. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The undiscounted future non-cancellable lease payments under the Company’s operating and finance leases were as follows (in thousands): As of March 31, 2022 Amount 2022 $ 871 2023 653 2024 600 2025 605 2026 620 Thereafter 1,002 Total lease payments 4,351 Less: imputed interest (512) Total lease liabilities 3,839 Less: current portion of lease liabilities (942) Total lease liabilities, net of current portion $ 2,897 Other information related to the Company’s operating lease liabilities was as follows: March 31, December 31, 2022 2021 Weighted-average remaining lease term (years) 4.52 1.08 Weighted-average discount rate 4.73 % 6.00 % Other information related to the Company’s finance lease liabilities was as follows: March 31, December 31, 2022 2021 Weighted-average remaining lease term (years) 2.84 — Weighted-average discount rate 4.50 % — % |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
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, 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 March 31, 2022, the interest rate was 5.00%. 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 March 31, 2022, 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 March 31, 2022, 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 March 31, 2022, the effective interest rate under the 2019 Term Loan was 7.85% and the outstanding balance was $3.4 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 other income of $11,000 and other expense of $4,000 for the three months ended March 31, 2022 and 2021, respectively, related to the change in fair value of the warrant within other expense, 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 as of March 31, 2022. 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 March 31, 2022, 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 March 31, 2022, was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 3,400 $ 1,020 $ 4,420 Unamortized debt discounts (23) (66) (89) Net carrying value $ 3,377 $ 954 $ 4,331 The carrying value of the Company’s 2019 Credit Facility as of 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 table below includes the principal repayments due under the 2019 Credit Facility (in thousands): Principal Repayment as of March 31, 2022 2022 3,400 2023 1,020 Total principal repayments $ 4,420 Of |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. Stock-Based Compensation Summary of Stock Option Activity The following table summarizes the stock option and award activity for the three months ended March 31, 2022: 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, 2021 1,038,956 1,783,298 $ 5.21 8.0 $ 10,891 Authorized 595,753 RSUs granted (330,832) RSUs cancelled/forfeited 5,951 — Options granted (488,744) 488,744 $ 8.17 Options exercised — (15,830) $ 4.40 $ 927 Options cancelled/forfeited 48,015 (70,341) $ 6.40 Balance—March 31, 2022 869,099 2,185,871 $ 5.84 8.5 $ 6,337 Options exercisable—March 31, 2022 727,933 $ 5.59 7.1 $ 2,329 The total grant date fair value of options vested was $966,000 and $312,000 during the three months ended March 31, 2022 and 2021, respectively. The weighted-average grant date fair value of options granted was $5.41 and $3.53 per share during the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, of the 70,341 options cancelled/forfeited during the three months ended March 31, 2022, 22,326 of the options relate to a prior stock-based compensation plan that are no longer available for grant under the current stock-based compensation plan. 2016 Employee Stock Purchase Plan In January 2022, there was an increase of 198,584 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP) pursuant to the terms of the ESPP. The Company had 851,358 shares available for future issuance under the Company’s ESPP as of March 31, 2022. Employees did not purchase any shares during the three months ended March 31, 2022 and 2021. Restricted Stock Units The following table summarizes restricted stock units (RSUs) activity for the three months ended March 31, 2022: RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2021 384,307 $ 5.00 Granted 330,832 $ 8.17 Vested (96,496) $ 4.92 Cancelled/forfeited (5,951) $ 5.47 Balance—March 31, 2022 612,692 $ 6.72 The fair value of RSUs is determined on the date of grant based on the market price of the Company’s common stock on that date. As of March 31, 2022, there was $3.6 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.6 years. Stock-based Compensation Expense As of March 31, 2022, there was $3.2 million of total unrecognized stock-based compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 3.0 years. |
Significant Agreements
Significant Agreements | 3 Months Ended |
Mar. 31, 2022 | |
Significant Agreements | |
Significant Agreements | 8. 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 Company entered into a Statement of Work (SOW) and an Amendment to the SOW, under the JDA with GF effective August 2016 and June 2018, respectively. The 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 will create additional manufacturing capacity for the Company’s Toggle MRAM products. The Company had previously anticipated initial production starting in 2020. However, as a result of recent delays, the Company now anticipates initial production to start some time in 2022. Under the JCA, the Company is required to pay non-recurring engineering costs of $1.0 million. As of September 30, 2021, the Company had 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 for the remainder of 2022. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Net Income (Loss) Per Common Share | |
Net Loss Per Common Share | 9. 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. The following tables set forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts): Basic EPS Three Months Ended March 31, 2022 2021 Numerator: Net income (loss) $ 1,935 $ (460) Denominator: Weighted-average shares of common stock outstanding, basic 19,896,654 19,092,367 Net income (loss) per common share, basic $ 0.10 $ (0.02) Diluted EPS Three Months Ended March 31, 2022 2021 Numerator: Net income (loss) $ 1,935 $ (460) Less: warrant liability fair value gain recognized (11) — Net income (loss) attributable to common stockholders, diluted $ 1,924 $ (460) Denominator: Weighted-average shares of common stock outstanding, basic 19,896,654 19,092,367 Effect of dilutive securities 829,539 — Weighted-average shares of common stock outstanding, diluted 20,726,193 19,092,367 Net income (loss) per common share, diluted $ 0.09 $ (0.02) 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: Three Months Ended March 31, 2022 2021 Options to purchase common stock 197,131 2,121,896 RSUs 66,166 485,012 Common stock warrants 18,461 49,336 Total 281,758 2,656,244 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2021, has been derived from the audited financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial information. The results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any other interim period or for any other future year. The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2021, included in the Company’s Annual Report on Form 10-K filed with the SEC. The Company believes that its existing cash and cash equivalents as of March 31, 2022, 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. |
Prior Period Reclassifications | Prior Period Reclassifications Certain immaterial prior period amounts have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory reserves, product warranty reserves, deferred tax assets and related valuation allowances, and stock-based compensation. The Company believes its estimates and assumptions are reasonable; however, actual results may differ from the Company’s estimates. |
Accounts receivable, net | Accounts receivable, net The Company establishes an allowance for product returns. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of products when evaluating the adequacy of sales returns. Returns are processed as credits on future purchases 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. Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Trade accounts receivable $ 9,798 $ 8,140 Unbilled accounts receivable 968 450 Other receivables 51 — Allowance for product returns and price adjustments (577) (397) Accounts receivable, net $ 10,240 $ 8,193 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by a financial institution in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions. Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. For the purposes of this disclosure, the Company defines “customer” as the entity that is purchasing the products or licenses directly from the Company, which includes the distributors of the Company’s products in addition to end customers that the Company sells to directly. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows: Revenue Accounts Receivable, net Three Months Ended As of March 31, March 31, December 31, Customers 2022 2021 2022 2021 Customer A * * 13 % * Customer B 18 % 27 % 46 % 54 % Customer C 13 % * * * * Less than 10% |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows: Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets; Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions. As of March 31, 2022, 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. 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 Company’s current credit facility (Note 6). The following tables sets forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 19,898 $ — $ — $ 19,898 Total assets measured at fair value $ 19,898 $ — $ — $ 19,898 Liabilities: Warrant liability $ — $ — $ 39 $ 39 Total liabilities measured at fair value $ — $ — $ 39 $ 39 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 |
Recently Issued Pronouncements | Recently Issued Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements Financial Instruments-Credit Losses (Topic 326) We reviewed all other recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of accounts receivable net | Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2022 2021 Trade accounts receivable $ 9,798 $ 8,140 Unbilled accounts receivable 968 450 Other receivables 51 — Allowance for product returns and price adjustments (577) (397) Accounts receivable, net $ 10,240 $ 8,193 |
Schedule of revenue and accounts receivable for each significant customer | Revenue Accounts Receivable, net Three Months Ended As of March 31, March 31, December 31, Customers 2022 2021 2022 2021 Customer A * * 13 % * Customer B 18 % 27 % 46 % 54 % Customer C 13 % * * * * 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): March 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 19,898 $ — $ — $ 19,898 Total assets measured at fair value $ 19,898 $ — $ — $ 19,898 Liabilities: Warrant liability $ — $ — $ 39 $ 39 Total liabilities measured at fair value $ — $ — $ 39 $ 39 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 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue. | |
Schedule of disaggregation of revenue | The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Three Months Ended March 31, 2022 2021 Distributor $ 10,794 $ 7,866 Non-distributor 3,553 2,414 Total revenue $ 14,347 $ 10,280 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended March 31, 2022 2021 Point in time $ 13,646 $ 10,034 Over time 701 246 Total revenue $ 14,347 $ 10,280 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended March 31, 2022 2021 Product sales $ 12,671 $ 9,068 Licensing 575 — Royalties 400 966 Other revenue 701 246 Total revenue $ 14,347 $ 10,280 Three Months Ended March 31, 2022 2021 APAC $ 9,234 $ 7,158 North America 3,105 1,740 EMEA 2,008 1,382 Total revenue $ 14,347 $ 10,280 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, 2022 2021 Raw materials $ 360 $ 464 Work-in-process 4,499 4,620 Finished goods 1,349 1,312 Total inventory $ 6,208 $ 6,396 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2022 2021 Payroll-related expenses $ 859 $ 2,845 Inventory 314 177 Other 392 557 Total accrued liabilities $ 1,565 $ 3,579 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases | |
Schedule of Undiscounted future non-cancellable lease payments | The undiscounted future non-cancellable lease payments under the Company’s operating and finance leases were as follows (in thousands): As of March 31, 2022 Amount 2022 $ 871 2023 653 2024 600 2025 605 2026 620 Thereafter 1,002 Total lease payments 4,351 Less: imputed interest (512) Total lease liabilities 3,839 Less: current portion of lease liabilities (942) Total lease liabilities, net of current portion $ 2,897 |
Schedule of supplemental information | Other information related to the Company’s operating lease liabilities was as follows: March 31, December 31, 2022 2021 Weighted-average remaining lease term (years) 4.52 1.08 Weighted-average discount rate 4.73 % 6.00 % Other information related to the Company’s finance lease liabilities was as follows: March 31, December 31, 2022 2021 Weighted-average remaining lease term (years) 2.84 — Weighted-average discount rate 4.50 % — % |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt | |
Summary of debt | The carrying value of the Company’s 2019 Credit Facility at March 31, 2022, was as follows (in thousands): Current Long-Term Portion Debt Total Credit Facility $ 3,400 $ 1,020 $ 4,420 Unamortized debt discounts (23) (66) (89) Net carrying value $ 3,377 $ 954 $ 4,331 The carrying value of the Company’s 2019 Credit Facility as of 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 |
Summary of principal repayments of credit facility | The table below includes the principal repayments due under the 2019 Credit Facility (in thousands): Principal Repayment as of March 31, 2022 2022 3,400 2023 1,020 Total principal repayments $ 4,420 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
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, 2021 1,038,956 1,783,298 $ 5.21 8.0 $ 10,891 Authorized 595,753 RSUs granted (330,832) RSUs cancelled/forfeited 5,951 — Options granted (488,744) 488,744 $ 8.17 Options exercised — (15,830) $ 4.40 $ 927 Options cancelled/forfeited 48,015 (70,341) $ 6.40 Balance—March 31, 2022 869,099 2,185,871 $ 5.84 8.5 $ 6,337 Options exercisable—March 31, 2022 727,933 $ 5.59 7.1 $ 2,329 |
Schedule of restricted stock unit activity | RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2021 384,307 $ 5.00 Granted 330,832 $ 8.17 Vested (96,496) $ 4.92 Cancelled/forfeited (5,951) $ 5.47 Balance—March 31, 2022 612,692 $ 6.72 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Net Income (Loss) Per Common Share | |
Computation of basic net income (loss) per share | The following tables set forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts): Basic EPS Three Months Ended March 31, 2022 2021 Numerator: Net income (loss) $ 1,935 $ (460) Denominator: Weighted-average shares of common stock outstanding, basic 19,896,654 19,092,367 Net income (loss) per common share, basic $ 0.10 $ (0.02) |
Computation of diluted net income (loss) per share | The following tables set forth the computation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts): Diluted EPS Three Months Ended March 31, 2022 2021 Numerator: Net income (loss) $ 1,935 $ (460) Less: warrant liability fair value gain recognized (11) — Net income (loss) attributable to common stockholders, diluted $ 1,924 $ (460) Denominator: Weighted-average shares of common stock outstanding, basic 19,896,654 19,092,367 Effect of dilutive securities 829,539 — Weighted-average shares of common stock outstanding, diluted 20,726,193 19,092,367 Net income (loss) per common share, diluted $ 0.09 $ (0.02) |
Schedule of potentially dilutive securities excluded from diluted net loss per common share | Three Months Ended March 31, 2022 2021 Options to purchase common stock 197,131 2,121,896 RSUs 66,166 485,012 Common stock warrants 18,461 49,336 Total 281,758 2,656,244 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts receivable | ||
Trade accounts receivable | $ 9,798 | $ 8,140 |
Unbilled accounts receivable | 968 | 450 |
Other receivables | 51 | |
Allowance for product returns and price adjustments | (577) | (397) |
Accounts receivable, net | $ 10,240 | $ 8,193 |
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] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue [Member] | Customer A [Member] | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% | |
Revenue [Member] | Customer B [Member] | |||
Concentration risk | |||
Concentration risk percentage | 18.00% | 27.00% | |
Revenue [Member] | Customer C [Member] | |||
Concentration risk | |||
Concentration risk percentage | 13.00% | ||
Revenue [Member] | Customer C [Member] | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | ||
Accounts Receivable, net [Member] | Customer A [Member] | |||
Concentration risk | |||
Concentration risk percentage | 13.00% | ||
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 | 46.00% | 54.00% | |
Accounts Receivable, net [Member] | Customer C [Member] | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10.00% | 10.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Total assets measured at fair value | $ 19,898 | $ 21,508 |
Warrant liability | 39 | 50 |
Total liabilities measured at fair value | 39 | 50 |
Level 1 [Member] | ||
Fair Value | ||
Total assets measured at fair value | 19,898 | 21,508 |
Level 3 [Member] | ||
Fair Value | ||
Warrant liability | 39 | 50 |
Total liabilities measured at fair value | 39 | 50 |
Money Market Funds [Member] | ||
Fair Value | ||
Money market funds | 19,898 | 21,508 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value | ||
Money market funds | $ 19,898 | $ 21,508 |
Revenue - Disaggregated by Sale
Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Revenue | $ 14,347 | $ 10,280 |
Distributor | ||
Disaggregation of Revenue | ||
Revenue | 10,794 | 7,866 |
Non-distributor | ||
Disaggregation of Revenue | ||
Revenue | $ 3,553 | $ 2,414 |
Revenue - Disaggregated by Timi
Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Revenue | $ 14,347 | $ 10,280 |
Point in time | ||
Disaggregation of Revenue | ||
Revenue | 13,646 | 10,034 |
Over time | ||
Disaggregation of Revenue | ||
Revenue | $ 701 | $ 246 |
Revenue - Disaggregated by Type
Revenue - Disaggregated by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Revenue | $ 14,347 | $ 10,280 |
Product sales | ||
Disaggregation of Revenue | ||
Revenue | 12,671 | 9,068 |
Licensing | ||
Disaggregation of Revenue | ||
Revenue | 575 | |
Royalties | ||
Disaggregation of Revenue | ||
Revenue | 400 | 966 |
Other revenue | ||
Disaggregation of Revenue | ||
Revenue | $ 701 | $ 246 |
Revenue - Disaggregated by Geog
Revenue - Disaggregated by Geographic Region (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)region | Mar. 31, 2021USD ($) | |
Disaggregation of Revenue | ||
Number of primary geographic regions | region | 3 | |
Revenue | $ 14,347 | $ 10,280 |
APAC | ||
Disaggregation of Revenue | ||
Revenue | 9,234 | 7,158 |
North America | ||
Disaggregation of Revenue | ||
Revenue | 3,105 | 1,740 |
EMEA | ||
Disaggregation of Revenue | ||
Revenue | $ 2,008 | $ 1,382 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory | ||
Raw materials | $ 360 | $ 464 |
Work-in-process | 4,499 | 4,620 |
Finished goods | 1,349 | 1,312 |
Total inventory | $ 6,208 | $ 6,396 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued liabilities | ||
Payroll-related expenses | $ 859 | $ 2,845 |
Inventory | 314 | 177 |
Other | 392 | 557 |
Total accrued liabilities | $ 1,565 | $ 3,579 |
Balance Sheet Components - Defe
Balance Sheet Components - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 15 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Mar. 31, 2022 | |
Deferred Revenue | ||||
Revenue | $ 14,347 | $ 10,280 | ||
Deferred licensing revenue | 330 | $ 832 | $ 330 | |
RAD-Hard product | ||||
Deferred Revenue | ||||
Total amount of consideration to be received | $ 6,500 | |||
Amount billed for the performance under contractual agreements | 4,200 | |||
Revenue | 600 | 3,900 | ||
Deferred licensing revenue | 300 | 300 | ||
Revenue expected to be recognized | $ 2,600 | $ 2,600 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Future lease payments | ||
2022 | $ 871 | |
2023 | 653 | |
2024 | 600 | |
2025 | 605 | |
2026 | 620 | |
Thereafter | 1,002 | |
Total undiscounted lease payments | 4,351 | |
Less: Present value adjustment | (512) | |
Total lease liability | 3,839 | |
Less: current portion of operating lease liabilities | (942) | $ (724) |
Total lease liabilities, net of current portion | $ 2,897 | $ 68 |
Other lease information | ||
Operating lease weighted-average remaining lease term (years) | 4 years 6 months 7 days | 1 year 29 days |
Operating lease weighted-average discount rate | 4.73% | 6.00% |
Finance lease weighted-average remaining lease term (years) | 2 years 10 months 2 days | |
Finance lease weighted-average discount rate | 4.50% |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) | Jul. 22, 2021 | Jun. 30, 2020 | Aug. 05, 2019 | Jul. 31, 2020 | Aug. 31, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Jul. 20, 2020 |
Debt | ||||||||
Exercise of warrants (in shares) | 21,463 | |||||||
Other income (expense) | $ (14,000) | $ (15,000) | ||||||
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 | $ 50,000 | |||||||
Fair value of warrants | $ 152,000 | |||||||
Other income (expense) | $ 11,000 | $ (4,000) | ||||||
2019 Credit Facility | Prime Rate [Member] | ||||||||
Debt | ||||||||
Effective interest rate | 3.75% | |||||||
2019 Credit Facility - Revolving Line Of Credit | ||||||||
Debt | ||||||||
Loan agreement amount | $ 5,000,000 | |||||||
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 | $ 4,000,000 | |||||||
Outstanding balance | $ 1,000,000 | |||||||
2019 Credit Facility - Revolving Line Of Credit | Minimum [Member] | ||||||||
Debt | ||||||||
Effective interest rate | 5.00% | |||||||
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 | $ 6,000,000 | |||||||
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 | $ 3,400,000 | |||||||
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
Net carrying value of debt, Current Portion | $ 3,377 | $ 3,370 |
Net carrying value of debt, Long-term debt | 954 | 1,529 |
2019 Credit Facility | ||
Debt | ||
Debt, Current Portion | 3,400 | 3,400 |
Less: Debt issuance costs, Current Portion | (23) | (30) |
Net carrying value of debt, Current Portion | 3,377 | 3,370 |
Debt, including end of term fee, Long-term debt | 1,020 | 1,620 |
Less: Unamortized debt discounts, Long-term debt | (66) | (91) |
Net carrying value of debt, Long-term debt | 954 | 1,529 |
Total principal repayments | 4,420 | 5,020 |
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Total | (89) | (121) |
Net carrying value of debt, Total | $ 4,331 | $ 4,899 |
Debt - Summary of Principal Rep
Debt - Summary of Principal Repayments of 2019 Credit Facility (Details) - 2019 Credit Facility - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt | ||
2022 | $ 3,400 | |
2023 | 1,020 | |
Total principal repayments | $ 4,420 | $ 5,020 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Options and Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation | ||
Options and Awards Available for Grant, Outstanding, Beginning balance | 1,038,956 | |
Options and Awards Available for Grant, Options authorized | 595,753 | |
Options and Awards Available for Grant, RSUs granted | (330,832) | |
Options Available for Grant, RSUs cancelled/forfeited | 5,951 | |
Options and Awards Available for Grant, Options granted | (488,744) | |
Options and Awards Available for Grant, Options cancelled/forfeited | 48,015 | |
Options and Awards Available for Grant, Outstanding, Ending balance | 869,099 | 1,038,956 |
Number of Options, Outstanding, Beginning balance | 1,783,298 | |
Number of Options, Options granted | 488,744 | |
Number of Options, Options exercised | (15,830) | |
Number of Options, Options cancelled/forfeited | (70,341) | |
Number of Options, Outstanding, Ending balance | 2,185,871 | 1,783,298 |
Number of Options, exercisable | 727,933 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance | $ 5.21 | |
Weighted - Average Exercise Price Per Share, Options granted | 8.17 | |
Weighted - Average Exercise Price Per Share, Options exercised | 4.40 | |
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited | 6.40 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance | 5.84 | $ 5.21 |
Weighted - Average Exercise Price Per Share, Options exercisable | $ 5.59 | |
Weighted - Average Remaining Contractual Life, Options outstanding | 8 years 6 months | 8 years |
Weighted - Average Remaining Contractual Life, Options exercisable | 7 years 1 month 6 days | |
Aggregate Intrinsic Value, Options outstanding | $ 6,337 | $ 10,891 |
Aggregate Intrinsic Value, Options exercised | 927 | |
Aggregate Intrinsic Value, Options exercisable | $ 2,329 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation | ||||
Total grant date fair value of options vested | $ 966 | $ 312 | ||
Shares available for future issuance (in shares) | 869,099 | 1,038,956 | ||
Number of Options, Options cancelled/forfeited | 70,341 | |||
Number of shares cancelled/forfeited related to a prior stock-based compensation plan that are no longer available for grant under the current stock-based compensation plan | 22,326 | |||
Number of stock options granted (in shares) | 488,744 | |||
Employees [Member] | ||||
Share-based Compensation | ||||
Weighted-average grant date fair value of options granted | $ 5.41 | $ 3.53 | ||
ESPP | ||||
Share-based Compensation | ||||
Increase in number of shares reserved for issuance (in shares) | 198,584 | |||
Shares available for future issuance (in shares) | 851,358 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 3.2 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 3 years |
RSUs | |
Number of Restricted Stock Units | |
Balance, beginning of period | shares | 384,307 |
Granted | shares | 330,832 |
Vested | shares | (96,496) |
Cancelled/forfeited | shares | (5,951) |
Balance, end of period | shares | 612,692 |
Weighted Average Exercise Price Per Share | |
Balance, beginning of period (price per share) | $ / shares | $ 5 |
Granted (price per share) | $ / shares | 8.17 |
Vested (price per share) | $ / shares | 4.92 |
Cancelled/forfeited (price per share) | $ / shares | 5.47 |
Balance, end of period (price per share) | $ / shares | $ 6.72 |
2016 Employee Incentive Plan [Member] | RSUs | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 3.6 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 7 months 6 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Stock-Based Compensation | |
Unrecognized stock-based compensation expense | $ 3.2 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 3 years |
Significant Agreements (Details
Significant Agreements (Details) - USD ($) $ in Thousands | Oct. 17, 2014 | Sep. 30, 2018 | Sep. 30, 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 | $ 600 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator: | ||
Net income (loss) | $ 1,935 | $ (460) |
Net income (loss) per common share, basic | ||
Weighted average shares of common stock outstanding, basic | 19,896,654 | 19,092,367 |
Net income (loss) per share attributable to common share, basic | $ 0.10 | $ (0.02) |
Net income (loss) per common share, diluted | ||
Net income (loss) and comprehensive income (loss) | $ 1,935 | $ (460) |
Less: warrant liability fair value gain recognized | (11) | |
Net income (loss) attributable to common stockholders, diluted | $ 1,924 | $ (460) |
Effect of dilutive securities | 829,539 | |
Weighted-average shares of common stock outstanding, diluted | 20,726,193 | 19,092,367 |
Net income (loss) per common share, diluted | $ 0.09 | $ (0.02) |
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 | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 281,758 | 2,656,244 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 197,131 | 2,121,896 |
RSUs | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 66,166 | 485,012 |
Common stock warrants | ||
Antidilutive Securities | ||
Potentially dilutive securities excluded from diluted net loss per common share | 18,461 | 49,336 |