Everspin (MRAM) 10-Q2 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Oct. 31, 2023
Document And Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 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		21,023,438
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001438423
Amendment Flag	false

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 34,934	$ 26,795
Accounts receivable, net	10,088	10,665
Inventory	8,637	6,683
Prepaid expenses and other current assets	238	604
Total current assets	53,897	44,747
Property and equipment, net	3,251	3,883
Right-of-use assets	5,786	6,641
Other assets	62	62
Total assets	62,996	55,333
Current liabilities:
Accounts payable	2,570	2,778
Accrued liabilities	3,479	3,533
Deferred revenue	510	821
Current portion of long-term debt		2,594
Lease liabilities, current portion	1,172	1,122
Other liabilities		27
Total current liabilities	7,731	10,875
Lease liabilities, net of current portion	4,693	5,580
Long-term income tax liability	214	214
Total liabilities	12,638	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 September 30, 2023 and December 31, 2022, respectively
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 20,934,919 and 20,374,288 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	2	2
Additional paid-in capital	189,974	185,364
Accumulated deficit	(139,618)	(146,702)
Total stockholders' equity	50,358	38,664
Total liabilities and stockholders' equity	$ 62,996	$ 55,333

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 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	20,934,919	20,374,288
Common stock, shares outstanding	20,934,919	20,374,288

Condensed Statements of Income

Condensed Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total revenue	$ 16,466	$ 15,241	$ 47,059	$ 44,295
Total cost of sales	6,547	6,277	19,517	18,417
Gross profit	9,919	8,964	27,542	25,878
Operating expenses:
Research and development	2,659	2,879	8,566	8,014
General and administrative	3,933	2,971	10,660	8,560
Sales and marketing	1,348	1,203	4,018	3,629
Total operating expenses	7,940	7,053	23,244	20,203
Income from operations	1,979	1,911	4,298	5,675
Interest expense		(73)	(63)	(218)
Other income (expense), net	459	69	2,849	56
Net income before income taxes	2,438	1,907	7,084	5,513
Net income and comprehensive income	$ 2,438	$ 1,907	$ 7,084	$ 5,513
Net income per common share, Basic	$ 0.12	$ 0.09	$ 0.34	$ 0.27
Net income per common share, Diluted	$ 0.11	$ 0.09	$ 0.33	$ 0.27
Weighted average shares of common stock outstanding, basic	20,848,558	20,206,728	20,653,775	20,058,744
Weighted average shares of common stock outstanding, diluted	21,828,789	20,539,064	21,276,904	20,698,814
Product sales
Total revenue	$ 13,543	$ 14,571	$ 40,726	$ 40,465
Total cost of sales	5,920	6,122	18,133	17,667
Licensing, royalty, patent and other revenue
Total revenue	2,923	670	6,333	3,830
Total cost of sales	$ 627	$ 155	$ 1,384	$ 750

Condensed Statements of Incom_2

Condensed Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating expenses include stock-based compensation as follows:
Total stock-based compensation	$ 1,280	$ 1,152	$ 3,700	$ 3,287
Research and Development
Operating expenses include stock-based compensation as follows:
Total stock-based compensation	505	462	1,454	1,257
General and Administrative
Operating expenses include stock-based compensation as follows:
Total stock-based compensation	639	598	1,874	1,616
Sales and Marketing
Operating expenses include stock-based compensation as follows:
Total stock-based compensation	$ 136	$ 92	$ 372	$ 414

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 (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, 2021	$ 2	180,067	(152,831)	27,238
Balance (in shares) at Dec. 31, 2021	19,858,460
Increase (Decrease) in Stockholders' Equity
Net income (loss)				5,513
Balance at Sep. 30, 2022	$ 2	184,057	(147,318)	36,741
Balance (in shares) at Sep. 30, 2022	20,276,746
Balance at Mar. 31, 2022	$ 2	180,960	(150,896)	30,066
Balance (in shares) at Mar. 31, 2022	19,970,786
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		50		50
Exercise of stock options (in shares)	18,131
Issuance of common stock under stock incentive plans		167		167
Issuance of common stock under stock incentive plans (in shares)	148,603
Stock-based compensation expense		1,311		1,311
Net income (loss)			1,671	1,671
Balance at Jun. 30, 2022	$ 2	182,488	(149,225)	33,265
Balance (in shares) at Jun. 30, 2022	20,137,520
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		417		417
Exercise of stock options (in shares)	79,010
Issuance of common stock under stock incentive plans (in shares)	60,216
Stock-based compensation expense		1,152		1,152
Net income (loss)			1,907	1,907
Balance at Sep. 30, 2022	$ 2	184,057	(147,318)	36,741
Balance (in shares) at Sep. 30, 2022	20,276,746
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
Issuance of common stock under stock incentive plans (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
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 (in shares)				143,070
Net income (loss)				$ 7,084
Balance at Sep. 30, 2023	$ 2	189,974	(139,618)	50,358
Balance (in shares) at Sep. 30, 2023	20,934,919
Balance at Mar. 31, 2023	$ 2	186,537	(145,941)	40,598
Balance (in shares) at Mar. 31, 2023	20,534,744
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		148		148
Exercise of stock options (in shares)	36,353
Issuance of common stock under stock incentive plans		181		181
Issuance of common stock under stock incentive plans (in shares)	172,325
Stock-based compensation expense		1,260		1,260
Net income (loss)			3,885	3,885
Balance at Jun. 30, 2023	$ 2	188,126	(142,056)	46,072
Balance (in shares) at Jun. 30, 2023	20,743,422
Increase (Decrease) in Stockholders' Equity
Exercise of stock options		566		566
Exercise of stock options (in shares)	103,697
Issuance of common stock under stock incentive plans (in shares)	87,564
Exercise of warrants		2		2
Exercise of warrants (in shares)	236
Stock-based compensation expense		1,280		1,280
Net income (loss)			2,438	2,438
Balance at Sep. 30, 2023	$ 2	$ 189,974	$ (139,618)	$ 50,358
Balance (in shares) at Sep. 30, 2023	20,934,919

Condensed Statement of Cash Flo

Condensed Statement of Cash Flows - USD ($) $ in Thousands	9 Months Ended
Condensed Statement of Cash Flows - USD ($) $ in Thousands	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities
Net income	$ 7,084	$ 5,513
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	905	704
Gain on sale of property and equipment	(15)	(167)
Stock-based compensation	3,700	3,287
Loss on prepayment and termination of credit facility	170
Non-cash warrant revaluation	(25)	(21)
Non-cash interest expense	26	93
Changes in operating assets and liabilities:
Accounts receivable	577	(4,357)
Inventory	(1,954)	(1,466)
Prepaid expenses and other current assets	366	470
Other assets		(28)
Accounts payable	599	1,218
Accrued liabilities	(54)	(1,138)
Deferred revenue	(311)	(25)
Lease liabilities	18	175
Net cash provided by operating activities	11,086	4,258
Cash flows from investing activities
Purchases of property and equipment	(1,080)	(1,320)
Proceeds received from sale of property and equipment	15	202
Net cash used in investing activities	(1,065)	(1,118)
Cash flows from financing activities
Payments on long-term debt	(2,790)	(1,800)
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan	908	703
Payments of debt issuance costs		(10)
Net cash used in financing activities	(1,882)	(1,107)
Net increase in cash and cash equivalents	8,139	2,033
Cash and cash equivalents at beginning of period	26,795	21,409
Cash and cash equivalents at end of period	34,934	23,442
Supplementary cash flow information:
Interest paid	37	125
Operating cash flows paid for operating leases	1,038	978
Financing cash flows paid for finance leases	9	8
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease liabilities		6,837
Right-of-use assets obtained in exchange for finance lease liabilities		36
Purchases of property and equipment in accounts payable and accrued liabilities		$ 773
Cashless exercise of warrants	$ 2

Organization and Nature of Busi

Organization and Nature of Business	9 Months Ended
Organization and Nature of Business	Sep. 30, 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	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 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 and nine months ended September 30, 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, net realizable value of inventory, 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): September 30, December 31, 2023 2022 Trade accounts receivable $ 10,170 $ 10,498 Unbilled accounts receivable 229 551 Allowance for product returns and price adjustments (311) (384) Accounts receivable, net $ 10,088 $ 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. 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 Nine Months Ended As of September 30, September 30, September 30, December 31, Customers 2023 2022 2023 2022 2023 2022 Customer A * 24 % * 22 % * 30 % Customer B 16 % 16 % 16 % 14 % 14 % 18 % Customer C 12 % * 13 % * * * Customer D * 10 % 11 % * * * Customer E 16 % * 16 % * 31 % * Customer F 11 % * * * 16 % * * 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 September 30, 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 included Level 1 assets and a Level 3 liability. Level 1 assets included highly liquid money market funds that are included in cash equivalents. The Company’s Level 3 liability consisted of warrants issued in connection with the Company’s 2019 Credit Facility. These warrants were extinguished as of September 30, 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): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 34,939 $ — $ — $ 34,939 Total assets measured at fair value $ 34,939 $ — $ — $ 34,939 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 Government Tax Credits, Incentives and Grants From time to time, the Company may receive government funding in the form of tax credits, operating-related grants, capital-related grants, or other incentives to support various business activities, including capital development, research and development, and other activities as defined by the relevant government agency awarding the tax credit, incentive, or grant. The amount received is typically based on the amount of qualifying costs incurred. The Company typically has to meet certain requirements to retain the government funding. The Company records operating-related grants and non-income related tax credits as other income in the condensed statements of income and comprehensive income when there is reasonable assurance that the grant will be received, and the Company will comply with the conditions specified in the grant agreement. The Company received Employee Retention Tax Credit (“ERTC”) refunds from the United States Treasury totaling $2.0 million, relating to the payroll periods from October 1, 2020 through September 30, 2021. The amounts were received pursuant to provisions within the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Taxpayer Certainty and Disaster Tax Relief Act of 2020 enacted as part of the Consolidated Appropriations Act, 2021 (“Relief Act”), the American Rescue Plan Act of 2021 (“ARPA”) which provide tax relief and other stimulus measures, including the ERTC. The ERTC program allows for employers to claim a refundable tax credit against a portion of the employer share of Social Security tax for qualified wages paid to employees from March 13, 2020 through September 30, 2021. The Company recognized the $2.0 million tax credit within other income (expense), net in the condensed statements of income and comprehensive income in the second quarter of 2023, which is when the amount was received and it was determined that those amounts were reasonably assured to be retained by the Company. The Company’s compliance with the program’s qualifications may be subject to audit through the year ended December 31, 2025, which is when the statute of limitation expires. The Company has received all expected ERTC refunds based on applications that have been submitted. 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	9 Months Ended
Revenue	Sep. 30, 2023
Revenue.
Revenue	3. Revenue The Company sells products to its distributors, original design manufacturers (ODMs), and original equipment manufacturers (OEMs). The Company also recognizes revenue under licensing, royalty, patent, and other agreements with some customers. The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Distributor $ 12,964 $ 13,986 $ 38,171 $ 37,586 Non-distributor 3,502 1,255 8,888 6,709 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Point in time $ 13,825 $ 14,932 $ 41,485 $ 41,582 Over time 2,641 309 5,574 2,713 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product sales $ 13,543 $ 14,571 $ 40,726 $ 40,465 Licensing 1,893 52 4,710 1,398 Royalties 232 264 561 888 Other revenue 798 354 1,062 1,544 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 APAC $ 8,663 $ 10,030 $ 24,218 $ 27,634 North America 4,607 2,980 10,798 9,865 EMEA 3,196 2,231 12,043 6,796 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295

Balance Sheet Components

Balance Sheet Components	9 Months Ended
Balance Sheet Components	Sep. 30, 2023
Balance Sheet Components
Balance Sheet Components	4. Balance Sheet Components Inventory Inventory consisted of the following (in thousands): September 30, December 31, 2023 2022 Raw materials $ 819 $ 666 Work-in-process 6,104 4,746 Finished goods 1,714 1,271 Total inventory $ 8,637 $ 6,683 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2023 2022 Payroll-related expenses $ 2,674 $ 2,886 Inventory 293 185 Other 512 462 Total accrued liabilities $ 3,479 $ 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 total arrangements are for $6.5 million in consideration. The Company concluded that 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 September 30, 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 $0.1 and $0.5 million in revenue for the three and nine months ended September 30, 2023, respectively, and $5.5 million in revenue since inception of the contractual agreements. As a result, the Company has recorded $0.5 million in deferred revenue as of September 30, 2023. The Company expects to recognize the remaining $1.0 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 first amendment to the contractual agreement was entered into in September 2023. Under the original contractual arrangement, the arrangement was for

Leases

Leases	9 Months Ended
Leases	Sep. 30, 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 September 30, 2023 Amount 2023 $ 349 2024 1,411 2025 1,416 2026 1,431 2027 1,314 Thereafter 567 Total lease payments 6,488 Less: imputed interest (623) Total lease liabilities 5,865 Less: current portion of lease liabilities (1,172) Total lease liabilities, net of current portion $ 4,693 Other information related to the Company’s operating lease liabilities was as follows: September 30, December 31, 2023 2022 Weighted-average remaining lease term (years) 4.62 5.35 Weighted-average discount rate 4.50 % 4.50 % Other information related to the Company’s finance lease liabilities was as follows: September 30, December 31, 2023 2022 Weighted-average remaining lease term (years) 1.34 2.09 Weighted-average discount rate 4.50 % 4.50 %

Debt

Debt	9 Months Ended
Debt	Sep. 30, 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 September 30, 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 nine months ended September 30, 2023. There were 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.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 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 nine months ended September 30, 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 (705,379) RSUs cancelled/forfeited 4,461 Warrants exercised (236) Options granted (8,000) 8,000 $ 6.47 Options exercised — (143,070) $ 5.08 $ 602 Options cancelled/forfeited 7,857 (7,857) $ 6.80 Balance—September 30, 2023 599,403 1,851,799 $ 5.94 7.2 $ 7,231 Options exercisable—September 30, 2023 1,208,065 $ 5.67 6.7 $ 5,061 The total grant date fair value of options vested was $0.4 million and $0.8 million during the three months ended September 30, 2023 and 2022, respectively, and $1.7 million and $2.6 million during the nine months ended September 30, 2023 and 2022, respectively. No options were granted during the three months ended September 30, 2023 or 2022, respectively. The weighted-average grant date fair value of options granted was $3.85 and $5.40 per share during the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, there was $2.8 million of total unrecognized stock-based compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 1.8 years. Stock-based compensation cost for options capitalized within inventory at September 30, 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 936,985 shares available for future issuance under the Company’s ESPP as of September 30, 2023. Employees did not purchase any shares during the three months ended September 30, 2023 and 2022, respectively. Employees purchased during the nine months ended September 30, 2023. Employees purchased Restricted Stock Units The following table summarizes restricted stock units (RSUs) activity for the nine months ended September 30, 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 705,379 $ 6.49 Vested (376,431) $ 6.25 Cancelled/forfeited (4,461) $ 6.37 Balance—September 30, 2023 981,133 $ 6.55 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 September 30, 2023, there was $5.4 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 1.9 years. Stock-based compensation cost related to RSU’s capitalized within inventory at September 30, 2023 and 2022 was not material.

Significant Agreements

Significant Agreements	9 Months Ended
Significant Agreements	Sep. 30, 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	9 Months Ended
Net Income Per Common Share	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 2,438 $ 1,907 $ 7,084 $ 5,513 Denominator: Weighted-average shares of common stock outstanding, basic 20,848,558 20,206,728 20,653,775 20,058,744 Net income per common share, basic $ 0.12 $ 0.09 $ 0.34 $ 0.27 Diluted EPS Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 2,438 $ 1,907 $ 7,084 $ 5,513 Less: warrant liability fair value loss (gain) recognized (48) — (25) (21) Net income attributable to common stockholders, diluted $ 2,390 $ 1,907 $ 7,059 $ 5,492 Denominator: Weighted-average shares of common stock outstanding, basic 20,848,558 20,206,728 20,653,775 20,058,744 Dilutive effect of stock options and RSUs 980,231 332,336 623,129 640,070 Weighted-average shares of common stock outstanding, diluted 21,828,789 20,539,064 21,276,904 20,698,814 Net income per common share, diluted $ 0.11 $ 0.09 $ 0.33 $ 0.27 Potentially dilutive securities representing 0.5 million and 2.0 million stock options and RSUs that were outstanding during the three months ended of September 30, 2023, and 2022, respectively, and 0.8 million and 0.7 million stock options and RSUs outstanding during the nine months ended September 30, 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)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 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 and nine months ended September 30, 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, net realizable value of inventory, 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): September 30, December 31, 2023 2022 Trade accounts receivable $ 10,170 $ 10,498 Unbilled accounts receivable 229 551 Allowance for product returns and price adjustments (311) (384) Accounts receivable, net $ 10,088 $ 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. 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 Nine Months Ended As of September 30, September 30, September 30, December 31, Customers 2023 2022 2023 2022 2023 2022 Customer A * 24 % * 22 % * 30 % Customer B 16 % 16 % 16 % 14 % 14 % 18 % Customer C 12 % * 13 % * * * Customer D * 10 % 11 % * * * Customer E 16 % * 16 % * 31 % * Customer F 11 % * * * 16 % * * 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 September 30, 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 included Level 1 assets and a Level 3 liability. Level 1 assets included highly liquid money market funds that are included in cash equivalents. The Company’s Level 3 liability consisted of warrants issued in connection with the Company’s 2019 Credit Facility. These warrants were extinguished as of September 30, 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): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 34,939 $ — $ — $ 34,939 Total assets measured at fair value $ 34,939 $ — $ — $ 34,939 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
Government Tax Credits, Incentives and Grants	Government Tax Credits, Incentives and Grants From time to time, the Company may receive government funding in the form of tax credits, operating-related grants, capital-related grants, or other incentives to support various business activities, including capital development, research and development, and other activities as defined by the relevant government agency awarding the tax credit, incentive, or grant. The amount received is typically based on the amount of qualifying costs incurred. The Company typically has to meet certain requirements to retain the government funding. The Company records operating-related grants and non-income related tax credits as other income in the condensed statements of income and comprehensive income when there is reasonable assurance that the grant will be received, and the Company will comply with the conditions specified in the grant agreement. The Company received Employee Retention Tax Credit (“ERTC”) refunds from the United States Treasury totaling $2.0 million, relating to the payroll periods from October 1, 2020 through September 30, 2021. The amounts were received pursuant to provisions within the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Taxpayer Certainty and Disaster Tax Relief Act of 2020 enacted as part of the Consolidated Appropriations Act, 2021 (“Relief Act”), the American Rescue Plan Act of 2021 (“ARPA”) which provide tax relief and other stimulus measures, including the ERTC. The ERTC program allows for employers to claim a refundable tax credit against a portion of the employer share of Social Security tax for qualified wages paid to employees from March 13, 2020 through September 30, 2021. The Company recognized the $2.0 million tax credit within other income (expense), net in the condensed statements of income and comprehensive income in the second quarter of 2023, which is when the amount was received and it was determined that those amounts were reasonably assured to be retained by the Company. The Company’s compliance with the program’s qualifications may be subject to audit through the year ended December 31, 2025, which is when the statute of limitation expires. The Company has received all expected ERTC refunds based on applications that have been submitted.
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)	9 Months Ended
Summary of Significant Accounting Policies (Tables)	Sep. 30, 2023
Summary of Significant Accounting Policies
Schedule of accounts receivable net	Accounts receivable, net consisted of the following (in thousands): September 30, December 31, 2023 2022 Trade accounts receivable $ 10,170 $ 10,498 Unbilled accounts receivable 229 551 Allowance for product returns and price adjustments (311) (384) Accounts receivable, net $ 10,088 $ 10,665
Schedule of revenue and accounts receivable for each significant customer	Revenue Accounts Receivable, net Three Months Ended Nine Months Ended As of September 30, September 30, September 30, December 31, Customers 2023 2022 2023 2022 2023 2022 Customer A * 24 % * 22 % * 30 % Customer B 16 % 16 % 16 % 14 % 14 % 18 % Customer C 12 % * 13 % * * * Customer D * 10 % 11 % * * * Customer E 16 % * 16 % * 31 % * Customer F 11 % * * * 16 % * * 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): September 30, 2023 Level 1 Level 2 Level 3 Total Assets: Money market funds $ 34,939 $ — $ — $ 34,939 Total assets measured at fair value $ 34,939 $ — $ — $ 34,939 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)	9 Months Ended
Revenue (Tables)	Sep. 30, 2023
Revenue.
Schedule of disaggregation of revenue	The following table presents the Company’s revenues disaggregated by sales channel (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Distributor $ 12,964 $ 13,986 $ 38,171 $ 37,586 Non-distributor 3,502 1,255 8,888 6,709 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295 The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Point in time $ 13,825 $ 14,932 $ 41,485 $ 41,582 Over time 2,641 309 5,574 2,713 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295 The following table presents the Company’s revenues disaggregated by type (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Product sales $ 13,543 $ 14,571 $ 40,726 $ 40,465 Licensing 1,893 52 4,710 1,398 Royalties 232 264 561 888 Other revenue 798 354 1,062 1,544 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295
Schedule of revenue by region	Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 APAC $ 8,663 $ 10,030 $ 24,218 $ 27,634 North America 4,607 2,980 10,798 9,865 EMEA 3,196 2,231 12,043 6,796 Total revenue $ 16,466 $ 15,241 $ 47,059 $ 44,295

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
Balance Sheet Components (Tables)	Sep. 30, 2023
Balance Sheet Components
Schedule of Inventory	Inventory consisted of the following (in thousands): September 30, December 31, 2023 2022 Raw materials $ 819 $ 666 Work-in-process 6,104 4,746 Finished goods 1,714 1,271 Total inventory $ 8,637 $ 6,683
Schedule of accrued liabilities	Accrued liabilities consisted of the following (in thousands): September 30, December 31, 2023 2022 Payroll-related expenses $ 2,674 $ 2,886 Inventory 293 185 Other 512 462 Total accrued liabilities $ 3,479 $ 3,533

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 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 September 30, 2023 Amount 2023 $ 349 2024 1,411 2025 1,416 2026 1,431 2027 1,314 Thereafter 567 Total lease payments 6,488 Less: imputed interest (623) Total lease liabilities 5,865 Less: current portion of lease liabilities (1,172) Total lease liabilities, net of current portion $ 4,693
Schedule of supplemental information	Other information related to the Company’s operating lease liabilities was as follows: September 30, December 31, 2023 2022 Weighted-average remaining lease term (years) 4.62 5.35 Weighted-average discount rate 4.50 % 4.50 % Other information related to the Company’s finance lease liabilities was as follows: September 30, December 31, 2023 2022 Weighted-average remaining lease term (years) 1.34 2.09 Weighted-average discount rate 4.50 % 4.50 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Sep. 30, 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 (705,379) RSUs cancelled/forfeited 4,461 Warrants exercised (236) Options granted (8,000) 8,000 $ 6.47 Options exercised — (143,070) $ 5.08 $ 602 Options cancelled/forfeited 7,857 (7,857) $ 6.80 Balance—September 30, 2023 599,403 1,851,799 $ 5.94 7.2 $ 7,231 Options exercisable—September 30, 2023 1,208,065 $ 5.67 6.7 $ 5,061
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 705,379 $ 6.49 Vested (376,431) $ 6.25 Cancelled/forfeited (4,461) $ 6.37 Balance—September 30, 2023 981,133 $ 6.55

Net Income Per Common Share (Ta

Net Income Per Common Share (Tables)	9 Months Ended
Net Income Per Common Share (Tables)	Sep. 30, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 2,438 $ 1,907 $ 7,084 $ 5,513 Denominator: Weighted-average shares of common stock outstanding, basic 20,848,558 20,206,728 20,653,775 20,058,744 Net income per common share, basic $ 0.12 $ 0.09 $ 0.34 $ 0.27
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 2,438 $ 1,907 $ 7,084 $ 5,513 Less: warrant liability fair value loss (gain) recognized (48) — (25) (21) Net income attributable to common stockholders, diluted $ 2,390 $ 1,907 $ 7,059 $ 5,492 Denominator: Weighted-average shares of common stock outstanding, basic 20,848,558 20,206,728 20,653,775 20,058,744 Dilutive effect of stock options and RSUs 980,231 332,336 623,129 640,070 Weighted-average shares of common stock outstanding, diluted 21,828,789 20,539,064 21,276,904 20,698,814 Net income per common share, diluted $ 0.11 $ 0.09 $ 0.33 $ 0.27

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accounts receivable
Trade accounts receivable	$ 10,170	$ 10,498
Unbilled accounts receivable	229	551
Allowance for product returns and price adjustments	(311)	(384)
Accounts receivable, net	$ 10,088	$ 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		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue \| Customer A
Concentration risk
Concentration risk percentage		24%		22%
Revenue \| Customer A \| Maximum [Member]
Concentration risk
Concentration risk percentage	10%		10%
Revenue \| Customer B
Concentration risk
Concentration risk percentage	16%	16%	16%	14%
Revenue \| Customer C
Concentration risk
Concentration risk percentage	12%		13%
Revenue \| Customer C \| Maximum [Member]
Concentration risk
Concentration risk percentage		10%		10%
Revenue \| Customer D
Concentration risk
Concentration risk percentage		10%	11%
Revenue \| Customer D \| Maximum [Member]
Concentration risk
Concentration risk percentage	10%			10%
Revenue \| Customer E
Concentration risk
Concentration risk percentage	16%		16%
Revenue \| Customer E \| Maximum [Member]
Concentration risk
Concentration risk percentage		10%		10%
Revenue \| Customer F
Concentration risk
Concentration risk percentage	11%
Revenue \| Customer F \| Maximum [Member]
Concentration risk
Concentration risk percentage		10%	10%	10%
Accounts Receivable, net \| Customer A
Concentration risk
Concentration risk percentage					30%
Accounts Receivable, net \| Customer A \| Maximum [Member]
Concentration risk
Concentration risk percentage			10%
Accounts Receivable, net \| Customer B
Concentration risk
Concentration risk percentage			14%		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			31%
Accounts Receivable, net \| Customer E \| Maximum [Member]
Concentration risk
Concentration risk percentage					10%
Accounts Receivable, net \| Customer F
Concentration risk
Concentration risk percentage			16%
Accounts Receivable, net \| Customer F \| 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	Sep. 30, 2023	Dec. 31, 2022
Fair Value
Total assets measured at fair value	$ 34,939	$ 26,812
Warrant liability		27
Total liabilities measured at fair value		27
Level 1
Fair Value
Total assets measured at fair value	34,939	26,812
Level 3
Fair Value
Warrant liability		27
Total liabilities measured at fair value		27
Money Market Funds
Fair Value
Money market funds	34,939	26,812
Money Market Funds \| Level 1
Fair Value
Money market funds	$ 34,939	$ 26,812

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Schedule of Employee Retention Tax Credit (Details) $ in Millions	3 Months Ended
	Jun. 30, 2023 USD ($)
Summary of Significant Accounting Policies
Proceeds from employee retention tax credit refunds	$ 2

Revenue - Disaggregated by Sale

Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue
Revenue	$ 16,466	$ 15,241	$ 47,059	$ 44,295
Distributor
Disaggregation of Revenue
Revenue	12,964	13,986	38,171	37,586
Non-distributor
Disaggregation of Revenue
Revenue	$ 3,502	$ 1,255	$ 8,888	$ 6,709

Revenue - Disaggregated by Timi

Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue
Revenue	$ 16,466	$ 15,241	$ 47,059	$ 44,295
Point in time
Disaggregation of Revenue
Revenue	13,825	14,932	41,485	41,582
Over time
Disaggregation of Revenue
Revenue	$ 2,641	$ 309	$ 5,574	$ 2,713

Revenue - Disaggregated by Type

Revenue - Disaggregated by Type (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue
Revenue	$ 16,466	$ 15,241	$ 47,059	$ 44,295
Product sales
Disaggregation of Revenue
Revenue	13,543	14,571	40,726	40,465
Licensing
Disaggregation of Revenue
Revenue	1,893	52	4,710	1,398
Royalties
Disaggregation of Revenue
Revenue	232	264	561	888
Other revenue
Disaggregation of Revenue
Revenue	$ 798	$ 354	$ 1,062	$ 1,544

Revenue - Disaggregated by Geog

Revenue - Disaggregated by Geographic Region (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($) region	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) region	Sep. 30, 2022 USD ($)
Disaggregation of Revenue
Number of primary geographic regions \| region	3		3
Revenue	$ 16,466	$ 15,241	$ 47,059	$ 44,295
APAC
Disaggregation of Revenue
Revenue	8,663	10,030	24,218	27,634
North America
Disaggregation of Revenue
Revenue	4,607	2,980	10,798	9,865
EMEA
Disaggregation of Revenue
Revenue	$ 3,196	$ 2,231	$ 12,043	$ 6,796

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Inventory
Raw materials	$ 819	$ 666
Work-in-process	6,104	4,746
Finished goods	1,714	1,271
Total inventory	$ 8,637	$ 6,683

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Accrued liabilities
Payroll-related expenses	$ 2,674	$ 2,886
Inventory	293	185
Other	512	462
Total accrued liabilities	$ 3,479	$ 3,533

Balance Sheet Components - Defe

Balance Sheet Components - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended	21 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2023	Dec. 31, 2022
Deferred Revenue
Revenue	$ 16,466	$ 15,241	$ 47,059	$ 44,295
Deferred licensing revenue	510		510			$ 510	$ 821
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	100		500			5,500
Deferred licensing revenue	500		500			500
Revenue expected to be recognized	1,000		1,000			1,000
RAD Hard product 2 agreement
Deferred Revenue
Total amount of consideration to be received	6,200
Amount billed for the performance under contractual agreements			4,500
Revenue	$ 1,800		$ 4,100			$ 4,500

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Future lease payments
2023	$ 349
2024	1,411
2025	1,416
2026	1,431
2027	1,314
Thereafter	567
Total lease payments	6,488
Less: imputed interest	(623)
Total lease liabilities	5,865
Less: current portion of lease liabilities	(1,172)	$ (1,122)
Total lease liabilities, net of current portion	$ 4,693	$ 5,580
Other lease information
Operating lease weighted-average remaining lease term (years)	4 years 7 months 13 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 4 months 2 days	2 years 1 month 2 days
Finance lease weighted-average discount rate	4.50%	4.50%

Debt - Credit Facility (Details

Debt - Credit Facility (Details) - USD ($)	3 Months Ended		9 Months Ended
Debt - Credit Facility (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Debt
Gain on extinguishment of debt			$ (170,000)
Other income (expense)	$ 459,000	$ 69,000	2,849,000	$ 56,000
2019 Credit Facility
Debt
Prepayment fee	0		170,000
Outstanding balance	$ 0		$ 0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Options and Awards Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended	15 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares
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	(705,379)
Options Available for Grant, RSUs cancelled/forfeited	4,461
Warrants exercised	(236)
Options and Awards Available for Grant, Options granted	(8,000)
Options and Awards Available for Grant, Options cancelled/forfeited	7,857
Options and Awards Available for Grant, Outstanding, Ending balance	599,403	689,472	599,403
Number of Options, Outstanding, Beginning balance	1,994,726
Number of Options, Options granted	8,000		0
Number of Options, Options exercised	(143,070)
Number of Options, Options cancelled/forfeited	(7,857)
Number of Options, Outstanding, Ending balance	1,851,799	1,994,726	1,851,799
Number of Options, exercisable	1,208,065		1,208,065
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance \| $ / shares	$ 5.88
Weighted - Average Exercise Price Per Share, Options granted \| $ / shares	6.47
Weighted - Average Exercise Price Per Share, Options exercised \| $ / shares	5.08
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited \| $ / shares	6.80
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance \| $ / shares	5.94	$ 5.88	$ 5.94
Weighted - Average Exercise Price Per Share, Options exercisable \| $ / shares	$ 5.67		$ 5.67
Weighted - Average Remaining Contractual Life, Options outstanding	7 years 2 months 12 days	7 years 9 months 18 days
Weighted - Average Remaining Contractual Life, Options exercisable	6 years 8 months 12 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 7,231	$ 1,275	$ 7,231
Aggregate Intrinsic Value, Options exercised \| $	602
Aggregate Intrinsic Value, Options exercisable \| $	$ 5,061		$ 5,061

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Share-based Compensation
Total grant date fair value of options vested		$ 400	$ 800	$ 1,700	$ 2,600
Weighted-average grant date fair value of options granted				$ 3.85	$ 5.40
Shares available for future issuance (in shares)		599,403		599,403		689,472
Issuance of common stock under Employee Stock Purchase Plan				$ 181	$ 167
Issuance of common stock under Employee Stock Purchase Plan (in shares)				40,894	37,017
Stock options
Share-based Compensation
Unrecognized compensation expense related to unvested options		$ 2,800		$ 2,800
Unrecognized compensation expense, weighted-average period expected to be recognized				1 year 9 months 18 days
ESPP
Share-based Compensation
Increase in number of shares reserved for issuance (in shares)	203,742
Shares available for future issuance (in shares)		936,985		936,985

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - RSUs $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Number of Restricted Stock Units
Balance, beginning of period \| shares	656,646
Granted \| shares	705,379
Vested \| shares	(376,431)
Cancelled/forfeited \| shares	(4,461)
Balance, end of period \| shares	981,133
Weighted Average Exercise Price Per Share
Balance, beginning of period (price per share) \| $ / shares	$ 6.45
Granted (price per share) \| $ / shares	6.49
Vested (price per share) \| $ / shares	6.25
Cancelled/forfeited (price per share) \| $ / shares	6.37
Balance, end of period (price per share) \| $ / shares	$ 6.55
Unrecognized stock-based compensation expense \| $	$ 5.4
Unrecognized compensation expense, weighted-average period expected to be recognized	1 year 10 months 24 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						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 2,438	$ 3,885	$ 761	$ 1,907	$ 1,671	$ 1,935	$ 7,084	$ 5,513
Basic EPS
Weighted average shares of common stock outstanding, basic	20,848,558			20,206,728			20,653,775	20,058,744
Net income per common share, Basic	$ 0.12			$ 0.09			$ 0.34	$ 0.27
Diluted EPS
Net income	$ 2,438	$ 3,885	$ 761	$ 1,907	$ 1,671	$ 1,935	$ 7,084	$ 5,513
Less: warrant liability fair value loss (gain) recognized	(48)						(25)	(21)
Net income attributable to common stockholders, diluted	$ 2,390			$ 1,907			$ 7,059	$ 5,492
Weighted average shares of common stock outstanding, basic	20,848,558			20,206,728			20,653,775	20,058,744
Dilutive effect of stock options and RSUs	980,231			332,336			623,129	640,070
Weighted-average shares of common stock outstanding, diluted	21,828,789			20,539,064			21,276,904	20,698,814
Net income per common share, Diluted	$ 0.11			$ 0.09			$ 0.33	$ 0.27

Net Income Per Common Share - P

Net Income Per Common Share - Potentially Dilutive Securities (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net Income Per Common Share
Potentially dilutive securities excluded from diluted net loss per common share	0.5	2	0.8	0.7