Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.0001 | |
Trading Symbol | MRAM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,616,102 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001438423 | |
Amendment Flag | false |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 24,211 | $ 26,795 |
Accounts receivable, net | 11,209 | 10,665 |
Inventory | 6,279 | 6,683 |
Prepaid expenses and other current assets | 485 | 604 |
Total current assets | 42,184 | 44,747 |
Property and equipment, net | 3,754 | 3,883 |
Right-of-use assets | 6,359 | 6,641 |
Other assets | 62 | 62 |
Total assets | 52,359 | 55,333 |
Current liabilities: | ||
Accounts payable | 2,096 | 2,778 |
Accrued liabilities | 2,076 | 3,533 |
Deferred revenue | 898 | 821 |
Current portion of long-term debt | 2,594 | |
Lease liabilities, current portion | 1,139 | 1,122 |
Other liabilities | 50 | 27 |
Total current liabilities | 6,259 | 10,875 |
Lease liabilities, net of current portion | 5,288 | 5,580 |
Long-term income tax liability | 214 | 214 |
Total liabilities | 11,761 | 16,669 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | ||
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 20,534,744 and 20,374,288 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | 2 | 2 |
Additional paid-in capital | 186,537 | 185,364 |
Accumulated deficit | (145,941) | (146,702) |
Total stockholders' equity | 40,598 | 38,664 |
Total liabilities and stockholders' equity | $ 52,359 | $ 55,333 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 20,534,744 | 20,374,288 |
Common stock, shares outstanding | 20,534,744 | 20,374,288 |
Condensed Statements of Income
Condensed Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Total revenue | $ 14,846 | $ 14,347 |
Total cost of sales | 6,416 | 6,024 |
Gross profit | 8,430 | 8,323 |
Operating expenses: | ||
Research and development | 3,199 | 2,436 |
General and administrative | 3,220 | 2,729 |
Sales and marketing | 1,315 | 1,134 |
Total operating expenses | 7,734 | 6,299 |
Income from operations | 696 | 2,024 |
Interest expense | (63) | (75) |
Other income (expense), net | 128 | (14) |
Net income and comprehensive income | $ 761 | $ 1,935 |
Net income per common share, Basic | $ 0.04 | $ 0.10 |
Net income per common share, Diluted | $ 0.04 | $ 0.09 |
Weighted average shares of common stock outstanding, basic | 20,450,994 | 19,896,654 |
Weighted average shares of common stock outstanding, diluted | 20,832,074 | 20,726,193 |
Product sales | ||
Total revenue | $ 13,777 | $ 12,671 |
Total cost of sales | 6,123 | 5,752 |
Licensing, royalty, patent and other revenue | ||
Total revenue | 1,069 | 1,676 |
Total cost of sales | $ 293 | $ 272 |
Condensed Statements of Incom_2
Condensed Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 1,160 | $ 824 |
Research and Development | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 446 | 333 |
General and Administrative | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | 611 | 371 |
Sales and Marketing | ||
Operating expenses include stock-based compensation as follows: | ||
Total stock-based compensation | $ 103 | $ 120 |
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, 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 | |||
Issuance of common stock under stock incentive plans and exercise of stock options (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 | |||
Balance at Dec. 31, 2022 | $ 2 | 185,364 | (146,702) | 38,664 |
Balance (in shares) at Dec. 31, 2022 | 20,374,288 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options | 13 | $ 13 | ||
Exercise of stock options (in shares) | 3,020 | 3,020 | ||
Issuance of common stock under stock incentive plans and exercise of stock options (in shares) | 157,436 | |||
Stock-based compensation expense | 1,160 | $ 1,160 | ||
Net income (loss) | 761 | 761 | ||
Balance at Mar. 31, 2023 | $ 2 | $ 186,537 | $ (145,941) | $ 40,598 |
Balance (in shares) at Mar. 31, 2023 | 20,534,744 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 761 | $ 1,935 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 333 | 258 |
Stock-based compensation | 1,160 | 824 |
Loss on prepayment and termination of credit facility | 170 | |
Non-cash warrant revaluation | 23 | (11) |
Non-cash interest expense | 26 | 32 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (544) | (2,047) |
Inventory | 404 | 188 |
Prepaid expenses and other current assets | 119 | 126 |
Other assets | (13) | |
Accounts payable | 125 | 267 |
Accrued liabilities | (1,457) | (2,014) |
Deferred revenue | 77 | (502) |
Lease liabilities | 7 | (14) |
Net cash provided by (used in) operating activities | 1,204 | (971) |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,011) | (22) |
Net cash used in investing activities | (1,011) | (22) |
Cash flows from financing activities | ||
Payments on long-term debt | (2,790) | (600) |
Proceeds from exercise of stock options | 13 | 69 |
Net cash used in financing activities | (2,777) | (531) |
Net decrease in cash and cash equivalents | (2,584) | (1,524) |
Cash and cash equivalents at beginning of period | 26,795 | 21,409 |
Cash and cash equivalents at end of period | 24,211 | 19,885 |
Supplementary cash flow information: | ||
Interest paid | 37 | 43 |
Operating cash flows paid for operating leases | 375 | 318 |
Financing cash flows paid for finance leases | $ 3 | 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 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 | |
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, 2022, 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, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023 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, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC. Use of Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory reserves, product return 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, 2023 2022 Trade accounts receivable $ 10,951 $ 10,498 Unbilled accounts receivable 498 551 Allowance for product returns and price adjustments (240) (384) Accounts receivable, net $ 11,209 $ 10,665 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 Three Months Ended March 31, March 31, December 31, Customers 2023 2022 2023 2022 Customer A * 18 % 15 % 30 % Customer B 15 % 13 % 12 % 18 % Customer C 14 % * * * Customer D 12 % * * * Customer E 18 % * 22 % * * 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, 2023, 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 2019 Credit Facility. The warrants expire on July 6, 2023. 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, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 24,225 $ — $ — $ 24,225 Total assets measured at fair value $ 24,225 $ — $ — $ 24,225 Liabilities: Warrant liability $ — $ — $ 50 $ 50 Total liabilities measured at fair value $ — $ — $ 50 $ 50 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 26,812 $ — $ — $ 26,812 Total assets measured at fair value $ 26,812 $ — $ — $ 26,812 Liabilities: Warrant liability $ — $ — $ 27 $ 27 Total liabilities measured at fair value $ — $ — $ 27 $ 27 Recently Adopted Accounting 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) The Company 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 financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue. | |
Revenue | 3. Revenue The Company sells products to its distributors and original equipment manufacturers (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): Three Months Ended March 31, 2023 2022 Distributor $ 12,842 10,794 Non-distributor 2,004 3,553 Total revenue $ 14,846 $ 14,347 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended March 31, 2023 2022 Point in time $ 13,870 13,646 Over time 976 701 Total revenue $ 14,846 $ 14,347 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended March 31, 2023 2022 Product sales $ 13,777 $ 12,671 Licensing 918 575 Royalties 93 400 Other revenue 58 701 Total revenue $ 14,846 $ 14,347 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 Company’s 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, 2023 2022 APAC $ 7,591 $ 9,234 North America 2,925 3,105 EMEA 4,330 2,008 Total revenue $ 14,846 $ 14,347 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Components | |
Balance Sheet Components | 4. Balance Sheet Components Inventory Inventory consisted of the following (in thousands): March 31, December 31, 2023 2022 Raw materials $ 530 $ 666 Work-in-process 4,631 4,746 Finished goods 1,118 1,271 Total inventory $ 6,279 $ 6,683 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2023 2022 Payroll-related expenses $ 1,165 $ 2,886 Inventory 406 185 Other 505 462 Total accrued liabilities $ 2,076 $ 3,533 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 (RAD-Hard 1). 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 contract 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, 2023, the Company has billed $6.0 million for the performance under the RAD-Hard 1 contractual agreements. Under the input method of recognition, the Company has recognized $0.2 million in revenue for the three-months ending March 31, 2023, and $5.2 million in revenue since inception of the contractual agreements. As a result, the Company has recorded $0.8 million in deferred revenue as of March 31, 2023. The Company expects to recognize the remaining $1.3 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. During the year ended December 31, 2022, the Company executed a contractual arrangement with a customer for the development of a strategic radiation hardened field programmable gate array product, consisting of a technology license to provide design and development services under the contractual agreement (RAD-Hard 2). The Company does not share in the rights to future revenues or royalties. The total arrangement is for $6.5 million in consideration and services are expected to be performed through the year ended December 31, 2024, subject to certain termination and extension provisions defined in the arrangement. The accounting for this contract follows the same revenue recognition as the RAD-Hard 1 contractual agreements. As of March 31, 2023, the Company has billed $1.1 million for the performance under the RAD-Hard 2 contractual agreement. Under the input method of recognition, the Company has recognized $0.7 million in revenue for the three-months ending March 31, 2023, and $1.0 million in revenue since inception of the contractual agreement. As a result, the Company has recorded $0.1 million in deferred revenue as of March 31, 2023. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 Amount 2023 $ 1,048 2024 1,411 2025 1,416 2026 1,431 2027 1,314 Thereafter 566 Total lease payments 7,186 Less: imputed interest (759) Total lease liabilities 6,427 Less: current portion of lease liabilities (1,139) Total lease liabilities, net of current portion $ 5,288 Other information related to the Company’s operating lease liabilities was as follows: March 31, December 31, 2023 2022 Weighted-average remaining lease term (years) 5.11 5.35 Weighted-average discount rate 4.50 % 4.50 % Other information related to the Company’s finance lease liabilities was as follows: March 31, December 31, 2023 2022 Weighted-average remaining lease term (years) 1.84 2.09 Weighted-average discount rate 4.50 % 4.50 % |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt | |
Debt | 6. Debt 2019 Credit Facility In March 2023, the 2019 Credit Facility, consisting of the Company’s Term Loan and Line of Credit, was paid in full, and there was no outstanding balance as of March 31, 2023. The Company paid an early termination and prepayment fee of $170,000, which was recorded within other income (expense) within the condensed statements of income and comprehensive income for the three months ended March 31, 2023. The Company was in compliance with all covenants throughout the 2019 Credit Facility payoff date in March 2023. The amortization of the debt issuance costs and accretion of the debt discount is included in interest expense within the condensed statements of income and comprehensive income and included in non-cash interest expense within the statement of cash flows. Of |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 7. Stock-Based Compensation Summary of Stock Option and Award Activity The following table summarizes the stock option and award activity for the three months ended March 31, 2023: 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, 2022 689,472 1,994,726 $ 5.88 7.8 $ 1,275 Authorized 611,228 RSUs granted (607,886) RSUs cancelled/forfeited — Options granted (3,750) 3,750 $ 6.33 Options exercised — (3,020) $ 4.40 $ 8 Options cancelled/forfeited 2,898 (2,898) $ 7.08 Balance—March 31, 2023 691,962 1,992,558 $ 5.89 7.6 $ 2,749 Options exercisable—March 31, 2023 1,130,079 $ 5.64 7.0 $ 1,763 The total grant date fair value of options vested was $1.9 million and $1.0 million during the three months ended March 31, 2023 and 2022, respectively. The weighted-average grant date fair value of options granted was $3.20 and $5.41 per share during the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, there was $3.4 million of total unrecognized stock-based compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 2.2 years. Compensation cost capitalized within inventory at March 31, 2023 and 2022 was not material. 2016 Employee Stock Purchase Plan In January 2023, there was an increase of 203,742 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP) pursuant to the terms of the ESPP. The Company had 977,879 shares available for future issuance under the Company’s ESPP as of March 31, 2023. Employees purchased no shares during the three months ended March 31, 2023 and 2022, respectively. Restricted Stock Units The following table summarizes restricted stock units (RSUs) activity for the three months ended March 31, 2023: RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2022 656,646 $ 6.45 Granted 607,886 $ 6.33 Vested (157,436) $ 6.37 Cancelled/forfeited — $ — Balance—March 31, 2023 1,107,096 $ 6.39 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, 2023, there was $6.4 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.3 years. Compensation cost capitalized within inventory at March 31, 2023 and 2022 was not material. |
Significant Agreements
Significant Agreements | 3 Months Ended |
Mar. 31, 2023 | |
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. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2023 | |
Net Income Per Common Share | |
Net Income Per Common Share | 9. Net Income Per Common Share Basic net income per common share is calculated by dividing the net income 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, potentially dilutive securities are excluded from the Company’s calculation of earnings per share as their inclusion would have an antidilutive effect. The following tables set forth the computation of basic and diluted net income per share attributable to common stockholders (in thousands, except share and per share amounts): Basic EPS Three Months Ended March 31, 2023 2022 Numerator: Net income $ 761 $ 1,935 Denominator: Weighted-average shares of common stock outstanding, basic 20,450,994 19,896,654 Net income per common share, basic $ 0.04 $ 0.10 Diluted EPS Three Months Ended March 31, 2023 2022 Numerator: Net income $ 761 $ 1,935 Less: warrant liability fair value loss (gain) recognized 23 (11) Net income attributable to common stockholders, diluted $ 784 $ 1,924 Denominator: Weighted-average shares of common stock outstanding, basic 20,450,994 19,896,654 Dilutive effect of stock options and RSUs 381,080 829,539 Weighted-average shares of common stock outstanding, diluted 20,832,074 20,726,193 Net income per common share, diluted $ 0.04 $ 0.09 Potentially dilutive securities representing 1.6 million and 0.3 million stock options and RSUs that were outstanding during the three-months ended of March 31, 2023, and 2022, respectively, were excluded from the computation of diluted earnings per common share during these periods as their inclusion would have an antidilutive effect. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022, 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, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023 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, 2022, included in the Company’s Annual Report on Form 10-K filed with the SEC. |
Use of Estimates | Use of Estimates The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory reserves, product return 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, 2023 2022 Trade accounts receivable $ 10,951 $ 10,498 Unbilled accounts receivable 498 551 Allowance for product returns and price adjustments (240) (384) Accounts receivable, net $ 11,209 $ 10,665 |
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 Three Months Ended March 31, March 31, December 31, Customers 2023 2022 2023 2022 Customer A * 18 % 15 % 30 % Customer B 15 % 13 % 12 % 18 % Customer C 14 % * * * Customer D 12 % * * * Customer E 18 % * 22 % * * 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, 2023, 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 2019 Credit Facility. The warrants expire on July 6, 2023. 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, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 24,225 $ — $ — $ 24,225 Total assets measured at fair value $ 24,225 $ — $ — $ 24,225 Liabilities: Warrant liability $ — $ — $ 50 $ 50 Total liabilities measured at fair value $ — $ — $ 50 $ 50 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 26,812 $ — $ — $ 26,812 Total assets measured at fair value $ 26,812 $ — $ — $ 26,812 Liabilities: Warrant liability $ — $ — $ 27 $ 27 Total liabilities measured at fair value $ — $ — $ 27 $ 27 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting 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) The Company 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 financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of accounts receivable net | Accounts receivable, net consisted of the following (in thousands): March 31, December 31, 2023 2022 Trade accounts receivable $ 10,951 $ 10,498 Unbilled accounts receivable 498 551 Allowance for product returns and price adjustments (240) (384) Accounts receivable, net $ 11,209 $ 10,665 |
Schedule of revenue and accounts receivable for each significant customer | Revenue Accounts Receivable Three Months Ended March 31, March 31, December 31, Customers 2023 2022 2023 2022 Customer A * 18 % 15 % 30 % Customer B 15 % 13 % 12 % 18 % Customer C 14 % * * * Customer D 12 % * * * Customer E 18 % * 22 % * * 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, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 24,225 $ — $ — $ 24,225 Total assets measured at fair value $ 24,225 $ — $ — $ 24,225 Liabilities: Warrant liability $ — $ — $ 50 $ 50 Total liabilities measured at fair value $ — $ — $ 50 $ 50 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 26,812 $ — $ — $ 26,812 Total assets measured at fair value $ 26,812 $ — $ — $ 26,812 Liabilities: Warrant liability $ — $ — $ 27 $ 27 Total liabilities measured at fair value $ — $ — $ 27 $ 27 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 2022 Distributor $ 12,842 10,794 Non-distributor 2,004 3,553 Total revenue $ 14,846 $ 14,347 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended March 31, 2023 2022 Point in time $ 13,870 13,646 Over time 976 701 Total revenue $ 14,846 $ 14,347 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended March 31, 2023 2022 Product sales $ 13,777 $ 12,671 Licensing 918 575 Royalties 93 400 Other revenue 58 701 Total revenue $ 14,846 $ 14,347 Three Months Ended March 31, 2023 2022 APAC $ 7,591 $ 9,234 North America 2,925 3,105 EMEA 4,330 2,008 Total revenue $ 14,846 $ 14,347 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Components | |
Schedule of Inventory | Inventory consisted of the following (in thousands): March 31, December 31, 2023 2022 Raw materials $ 530 $ 666 Work-in-process 4,631 4,746 Finished goods 1,118 1,271 Total inventory $ 6,279 $ 6,683 |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): March 31, December 31, 2023 2022 Payroll-related expenses $ 1,165 $ 2,886 Inventory 406 185 Other 505 462 Total accrued liabilities $ 2,076 $ 3,533 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 Amount 2023 $ 1,048 2024 1,411 2025 1,416 2026 1,431 2027 1,314 Thereafter 566 Total lease payments 7,186 Less: imputed interest (759) Total lease liabilities 6,427 Less: current portion of lease liabilities (1,139) Total lease liabilities, net of current portion $ 5,288 |
Schedule of supplemental information | Other information related to the Company’s operating lease liabilities was as follows: March 31, December 31, 2023 2022 Weighted-average remaining lease term (years) 5.11 5.35 Weighted-average discount rate 4.50 % 4.50 % Other information related to the Company’s finance lease liabilities was as follows: March 31, December 31, 2023 2022 Weighted-average remaining lease term (years) 1.84 2.09 Weighted-average discount rate 4.50 % 4.50 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 689,472 1,994,726 $ 5.88 7.8 $ 1,275 Authorized 611,228 RSUs granted (607,886) RSUs cancelled/forfeited — Options granted (3,750) 3,750 $ 6.33 Options exercised — (3,020) $ 4.40 $ 8 Options cancelled/forfeited 2,898 (2,898) $ 7.08 Balance—March 31, 2023 691,962 1,992,558 $ 5.89 7.6 $ 2,749 Options exercisable—March 31, 2023 1,130,079 $ 5.64 7.0 $ 1,763 |
Schedule of restricted stock unit activity | RSUs Outstanding Weighted- Average Number of Grant Date Restricted Stock Fair Value Per Units Share Balance—December 31, 2022 656,646 $ 6.45 Granted 607,886 $ 6.33 Vested (157,436) $ 6.37 Cancelled/forfeited — $ — Balance—March 31, 2023 1,107,096 $ 6.39 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Net Income Per Common Share | |
Computation of basic net income (loss) per share | The following tables set forth the computation of basic and diluted net income per share attributable to common stockholders (in thousands, except share and per share amounts): Basic EPS Three Months Ended March 31, 2023 2022 Numerator: Net income $ 761 $ 1,935 Denominator: Weighted-average shares of common stock outstanding, basic 20,450,994 19,896,654 Net income per common share, basic $ 0.04 $ 0.10 |
Computation of diluted net income (loss) per share | The following tables set forth the computation of basic and diluted net income per share attributable to common stockholders (in thousands, except share and per share amounts): Diluted EPS Three Months Ended March 31, 2023 2022 Numerator: Net income $ 761 $ 1,935 Less: warrant liability fair value loss (gain) recognized 23 (11) Net income attributable to common stockholders, diluted $ 784 $ 1,924 Denominator: Weighted-average shares of common stock outstanding, basic 20,450,994 19,896,654 Dilutive effect of stock options and RSUs 381,080 829,539 Weighted-average shares of common stock outstanding, diluted 20,832,074 20,726,193 Net income per common share, diluted $ 0.04 $ 0.09 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts receivable | ||
Trade accounts receivable | $ 10,951 | $ 10,498 |
Unbilled accounts receivable | 498 | 551 |
Allowance for product returns and price adjustments | (240) | (384) |
Accounts receivable, net | $ 11,209 | $ 10,665 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable for Each Significant Customer (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue | Customer A | |||
Concentration risk | |||
Concentration risk percentage | 18% | ||
Revenue | Customer A | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% | ||
Revenue | Customer B | |||
Concentration risk | |||
Concentration risk percentage | 15% | 13% | |
Revenue | Customer C | |||
Concentration risk | |||
Concentration risk percentage | 14% | ||
Revenue | Customer C | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% | ||
Revenue | Customer D | |||
Concentration risk | |||
Concentration risk percentage | 12% | ||
Revenue | Customer D | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% | ||
Revenue | Customer E | |||
Concentration risk | |||
Concentration risk percentage | 18% | ||
Revenue | Customer E | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% | ||
Accounts Receivable, net | Customer A | |||
Concentration risk | |||
Concentration risk percentage | 15% | 30% | |
Accounts Receivable, net | Customer B | |||
Concentration risk | |||
Concentration risk percentage | 12% | 18% | |
Accounts Receivable, net | Customer C | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% | 10% | |
Accounts Receivable, net | Customer D | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% | 10% | |
Accounts Receivable, net | Customer E | |||
Concentration risk | |||
Concentration risk percentage | 22% | ||
Accounts Receivable, net | Customer E | Maximum [Member] | |||
Concentration risk | |||
Concentration risk percentage | 10% |
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, 2023 | Dec. 31, 2022 |
Fair Value | ||
Total assets measured at fair value | $ 24,225 | $ 26,812 |
Warrant liability | 50 | 27 |
Total liabilities measured at fair value | 50 | 27 |
Level 1 | ||
Fair Value | ||
Total assets measured at fair value | 24,225 | 26,812 |
Level 3 | ||
Fair Value | ||
Warrant liability | 50 | 27 |
Total liabilities measured at fair value | 50 | 27 |
Money Market Funds | ||
Fair Value | ||
Money market funds | 24,225 | 26,812 |
Money Market Funds | Level 1 | ||
Fair Value | ||
Money market funds | $ 24,225 | $ 26,812 |
Revenue - Disaggregated by Sale
Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue | ||
Revenue | $ 14,846 | $ 14,347 |
Distributor | ||
Disaggregation of Revenue | ||
Revenue | 12,842 | 10,794 |
Non-distributor | ||
Disaggregation of Revenue | ||
Revenue | $ 2,004 | $ 3,553 |
Revenue - Disaggregated by Timi
Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue | ||
Revenue | $ 14,846 | $ 14,347 |
Point in time | ||
Disaggregation of Revenue | ||
Revenue | 13,870 | 13,646 |
Over time | ||
Disaggregation of Revenue | ||
Revenue | $ 976 | $ 701 |
Revenue - Disaggregated by Type
Revenue - Disaggregated by Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue | ||
Revenue | $ 14,846 | $ 14,347 |
Product sales | ||
Disaggregation of Revenue | ||
Revenue | 13,777 | 12,671 |
Licensing | ||
Disaggregation of Revenue | ||
Revenue | 918 | 575 |
Royalties | ||
Disaggregation of Revenue | ||
Revenue | 93 | 400 |
Other revenue | ||
Disaggregation of Revenue | ||
Revenue | $ 58 | $ 701 |
Revenue - Disaggregated by Geog
Revenue - Disaggregated by Geographic Region (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) region | Mar. 31, 2022 USD ($) | |
Disaggregation of Revenue | ||
Number of primary geographic regions | region | 3 | |
Revenue | $ 14,846 | $ 14,347 |
APAC | ||
Disaggregation of Revenue | ||
Revenue | 7,591 | 9,234 |
North America | ||
Disaggregation of Revenue | ||
Revenue | 2,925 | 3,105 |
EMEA | ||
Disaggregation of Revenue | ||
Revenue | $ 4,330 | $ 2,008 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory | ||
Raw materials | $ 530 | $ 666 |
Work-in-process | 4,631 | 4,746 |
Finished goods | 1,118 | 1,271 |
Total inventory | $ 6,279 | $ 6,683 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued liabilities | ||
Payroll-related expenses | $ 1,165 | $ 2,886 |
Inventory | 406 | 185 |
Other | 505 | 462 |
Total accrued liabilities | $ 2,076 | $ 3,533 |
Balance Sheet Components - Defe
Balance Sheet Components - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2023 | |
Deferred Revenue | |||||
Revenue | $ 14,846 | $ 14,347 | |||
Deferred licensing revenue | 898 | $ 821 | $ 898 | ||
RAD Hard product 1 agreement | |||||
Deferred Revenue | |||||
Total amount of consideration to be received | $ 6,500 | ||||
Amount billed for the performance under contractual agreements | 6,000 | ||||
Revenue | 200 | 5,200 | |||
Deferred licensing revenue | 800 | 800 | |||
Revenue expected to be recognized | 1,300 | 1,300 | |||
RAD Hard product 2 agreement | |||||
Deferred Revenue | |||||
Total amount of consideration to be received | $ 6,500 | ||||
Amount billed for the performance under contractual agreements | 1,100 | ||||
Revenue | 700 | 1,000 | |||
Deferred licensing revenue | $ 100 | $ 100 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Future lease payments | ||
2023 | $ 1,048 | |
2024 | 1,411 | |
2025 | 1,416 | |
2026 | 1,431 | |
2027 | 1,314 | |
Thereafter | 566 | |
Total lease payments | 7,186 | |
Less: imputed interest | (759) | |
Total lease liabilities | 6,427 | |
Less: current portion of lease liabilities | (1,139) | $ (1,122) |
Total lease liabilities, net of current portion | $ 5,288 | $ 5,580 |
Other lease information | ||
Operating lease weighted-average remaining lease term (years) | 5 years 1 month 9 days | 5 years 4 months 6 days |
Operating lease weighted-average discount rate | 4.50% | 4.50% |
Finance lease weighted-average remaining lease term (years) | 1 year 10 months 2 days | |
Finance lease weighted-average discount rate | 4.50% |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt | ||
Gain on extinguishment of debt | $ (170,000) | |
Other income (expense) | 128,000 | $ (14,000) |
2019 Credit Facility | ||
Debt | ||
Prepayment fee | 170,000 | |
Outstanding balance | $ 0 |
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, 2023 | Dec. 31, 2022 | |
Stock-based compensation | ||
Options and Awards Available for Grant, Outstanding, Beginning balance | 689,472 | |
Options and Awards Available for Grant, Options authorized | 611,228 | |
Options and Awards Available for Grant, RSUs granted | (607,886) | |
Options and Awards Available for Grant, Options granted | (3,750) | |
Options and Awards Available for Grant, Options cancelled/forfeited | 2,898 | |
Options and Awards Available for Grant, Outstanding, Ending balance | 691,962 | 689,472 |
Number of Options, Outstanding, Beginning balance | 1,994,726 | |
Number of Options, Options granted | 3,750 | |
Number of Options, Options exercised | (3,020) | |
Number of Options, Options cancelled/forfeited | (2,898) | |
Number of Options, Outstanding, Ending balance | 1,992,558 | 1,994,726 |
Number of Options, exercisable | 1,130,079 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance | $ 5.88 | |
Weighted - Average Exercise Price Per Share, Options granted | 6.33 | |
Weighted - Average Exercise Price Per Share, Options exercised | 4.40 | |
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited | 7.08 | |
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance | 5.89 | $ 5.88 |
Weighted - Average Exercise Price Per Share, Options exercisable | $ 5.64 | |
Weighted - Average Remaining Contractual Life, Options outstanding | 7 years 7 months 6 days | 7 years 9 months 18 days |
Weighted - Average Remaining Contractual Life, Options exercisable | 7 years | |
Aggregate Intrinsic Value, Options outstanding | $ 2,749 | $ 1,275 |
Aggregate Intrinsic Value, Options exercised | 8 | |
Aggregate Intrinsic Value, Options exercisable | $ 1,763 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation | ||||
Total grant date fair value of options vested | $ 1.9 | $ 1 | ||
Weighted-average grant date fair value of options granted | $ 3.20 | $ 5.41 | ||
Shares available for future issuance (in shares) | 691,962 | 689,472 | ||
Number of stock options granted (in shares) | 3,750 | |||
Options remained outstanding | 1,992,558 | 1,994,726 | ||
Incentive Stock Options | ||||
Share-based Compensation | ||||
Unrecognized compensation expense related to unvested options | $ 3.4 | |||
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 2 months 12 days | |||
ESPP | ||||
Share-based Compensation | ||||
Increase in number of shares reserved for issuance (in shares) | 203,742 | |||
Shares available for future issuance (in shares) | 977,879 | |||
Number of shares issued (in shares) | 0 | 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units (Details) - RSUs $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Number of Restricted Stock Units | |
Balance, beginning of period | shares | 656,646 |
Granted | shares | 607,886 |
Vested | shares | (157,436) |
Balance, end of period | shares | 1,107,096 |
Weighted Average Exercise Price Per Share | |
Balance, beginning of period (price per share) | $ / shares | $ 6.45 |
Granted (price per share) | $ / shares | 6.33 |
Vested (price per share) | $ / shares | 6.37 |
Balance, end of period (price per share) | $ / shares | $ 6.39 |
2016 Employee Incentive Plan | |
Weighted Average Exercise Price Per Share | |
Unrecognized stock-based compensation expense | $ | $ 6.4 |
Unrecognized compensation expense, weighted-average period expected to be recognized | 2 years 3 months 18 days |
Significant Agreements (Details
Significant Agreements (Details) - Joint Development Agreement - GlobalFoundries, Inc. | Oct. 17, 2014 |
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 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income (loss) | $ 761 | $ 1,935 |
Basic EPS | ||
Weighted average shares of common stock outstanding, basic | 20,450,994 | 19,896,654 |
Net income per common share, Basic | $ 0.04 | $ 0.10 |
Diluted EPS | ||
Net income (loss) | $ 761 | $ 1,935 |
Less: warrant liability fair value loss (gain) recognized | 23 | (11) |
Net income attributable to common stockholders, diluted | $ 784 | $ 1,924 |
Weighted average shares of common stock outstanding, basic | 20,450,994 | 19,896,654 |
Dilutive effect of stock options and RSUs | 381,080 | 829,539 |
Weighted-average shares of common stock outstanding, diluted | 20,832,074 | 20,726,193 |
Net income per common share, Diluted | $ 0.04 | $ 0.09 |
Net Income Per Common Share - P
Net Income Per Common Share - Potentially Dilutive Securities (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Income Per Common Share | ||
Potentially dilutive securities excluded from diluted net loss per common share | 1.6 | 0.3 |