Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 09, 2018 | Sep. 29, 2017 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | 1,556,898 | ||
Entity Registrant Name | Techpoint, Inc. | ||
Entity Central Index Key | 1,556,898 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 199,591,762 | ||
Common Stock, Par Value | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 17,114,353 | ||
Japanese Depositary Shares | Japan Exchange Group | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 4,403,814 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 21,536 | $ 10,006 |
Accounts receivable | 93 | 79 |
Inventory | 2,847 | 2,583 |
Prepaid expenses and other current assets | 978 | 273 |
Total current assets | 25,454 | 12,941 |
Property and equipment - net | 325 | 401 |
Deferred tax assets | 652 | 1,022 |
Other assets | 161 | 1,188 |
Total assets | 26,592 | 15,552 |
Current liabilities: | ||
Accounts payable | 760 | 777 |
Accrued liabilities | 573 | 481 |
Liability related to early exercised stock options | 152 | 223 |
Customer deposits | 6 | 745 |
Total current liabilities | 1,491 | 2,226 |
Other liabilities | 133 | 90 |
Total liabilities | 1,624 | 2,316 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity | ||
Preferred stock, value | 8,794 | |
Additional paid-in-capital | 17,580 | 813 |
Retained earnings | 7,386 | 3,629 |
Total stockholders’ equity | 24,968 | 13,236 |
Total liabilities and stockholders’ equity | 26,592 | 15,552 |
Convertible Preferred Stock | ||
Stockholders’ equity | ||
Preferred stock, value | ||
Total stockholders’ equity | 8,794 | |
Series Seed Convertible Preferred Stock | ||
Stockholders’ equity | ||
Preferred stock, value | 1,156 | |
Series A Convertible Preferred Stock | ||
Stockholders’ equity | ||
Preferred stock, value | 4,477 | |
Series B Convertible Preferred Stock | ||
Stockholders’ equity | ||
Preferred stock, value | 3,161 | |
Preferred Stock, Par Value | ||
Stockholders’ equity | ||
Preferred stock, value | ||
Common Stock, Par Value | ||
Stockholders’ equity | ||
Common stock, value | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, shares authorized | 11,660,000 | |
Preferred stock, shares issued | 10,742,500 | |
Preferred stock, shares outstanding | 10,742,500 | |
Preferred stock, aggregate liquidation value | $ 8,830 | |
Common stock, shares authorized | 75,000,000 | |
Common stock, shares issued | 16,752,171 | |
Common stock, shares outstanding | 16,752,171 | |
Common stock, par value | $ 0.0001 | |
Convertible Preferred Stock With No Par Value | ||
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 11,660,000 | 11,660,000 |
Series Seed Convertible Preferred Stock | ||
Preferred stock, shares authorized | 4,660,000 | |
Preferred stock, shares issued | 4,660,000 | |
Preferred stock, shares outstanding | 4,660,000 | |
Preferred stock, aggregate liquidation value | $ 1,165 | |
Preferred stock, par value | $ 0.25 | |
Series A Convertible Preferred Stock | ||
Preferred stock, shares authorized | 4,500,000 | |
Preferred stock, shares issued | 4,500,000 | |
Preferred stock, shares outstanding | 4,500,000 | |
Preferred stock, aggregate liquidation value | $ 4,500 | |
Preferred stock, par value | $ 1 | |
Series B Convertible Preferred Stock | ||
Preferred stock, shares authorized | 2,500,000 | |
Preferred stock, shares issued | 1,582,500 | |
Preferred stock, shares outstanding | 1,582,500 | |
Preferred stock, aggregate liquidation value | $ 3,165 | |
Preferred stock, par value | $ 2 | |
Preferred Stock, Par Value | ||
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, par value | $ 0.0001 | |
Common Stock, No Par Value | ||
Common stock, no par value | ||
Common stock, shares authorized | 20,500,000 | |
Common stock, shares issued | 3,725,238 | |
Common stock, shares outstanding | 3,725,238 | |
Common Stock, Par Value | ||
Common stock, shares authorized | 75,000,000 | |
Common stock, shares issued | 16,752,171 | |
Common stock, shares outstanding | 16,752,171 | |
Common stock, par value | $ 0.0001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||||||||||
Revenue | $ 7,761 | $ 8,112 | $ 8,039 | $ 7,230 | $ 5,888 | $ 7,628 | $ 7,396 | $ 6,244 | $ 31,142 | $ 27,156 | $ 20,245 |
Cost of revenue | 3,473 | 3,427 | 3,369 | 2,952 | 2,899 | 3,388 | 3,683 | 2,765 | 13,221 | 12,735 | 8,803 |
Gross profit | 4,288 | 4,685 | 4,670 | 4,278 | 2,989 | 4,240 | 3,713 | 3,479 | 17,921 | 14,421 | 11,442 |
Operating expenses | |||||||||||
Research and development | 1,565 | 1,156 | 1,197 | 1,465 | 1,004 | 1,180 | 1,101 | 1,095 | 5,383 | 4,380 | 4,964 |
Selling, general and administrative | 2,068 | 1,541 | 1,357 | 1,227 | 1,117 | 1,099 | 1,417 | 1,045 | 6,193 | 4,678 | 2,592 |
Total operating expenses | 3,633 | 2,697 | 2,554 | 2,692 | 2,121 | 2,279 | 2,518 | 2,140 | 11,576 | 9,058 | 7,556 |
Income from operations | 655 | 1,988 | 2,116 | 1,586 | 868 | 1,961 | 1,195 | 1,339 | 6,345 | 5,363 | 3,886 |
Other income (expense) | (4) | (59) | (2) | (8) | (10) | (1) | 3 | 8 | (73) | 3 | |
Income before income taxes | 651 | 1,929 | 2,114 | 1,578 | 858 | 1,960 | 1,198 | 1,347 | 6,272 | 5,363 | 3,889 |
Income taxes | 591 | 646 | 739 | 539 | 419 | 630 | 390 | 443 | 2,515 | 1,882 | (168) |
Net income | $ 60 | $ 1,283 | $ 1,375 | $ 1,039 | $ 439 | $ 1,330 | $ 808 | $ 904 | 3,757 | 3,481 | 4,057 |
Net income allocable to preferred stockholders | 1,936 | 2,627 | 3,170 | ||||||||
Net income allocable to common stockholders | $ 1,821 | $ 854 | $ 887 | ||||||||
Net income per share allocable to common stockholders: | |||||||||||
Basic | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.09 | $ 0.06 | $ 0.06 | $ 0.25 | $ 0.24 | $ 0.30 | |
Diluted | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.09 | $ 0.05 | $ 0.06 | $ 0.24 | $ 0.23 | $ 0.28 | |
Weighted-average shares outstanding in computing net income per share allocable to common stockholders | |||||||||||
Basic | 7,145,641 | 3,493,946 | 3,007,311 | ||||||||
Diluted | 8,056,329 | 4,358,387 | 3,774,146 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings |
Beginning Balances at Dec. 31, 2014 | $ 4,976 | $ 8,794 | $ 91 | $ (3,909) | |
Beginning Balances, Shares at Dec. 31, 2014 | 10,742,500 | 2,893,084 | |||
Issuance of common stock upon exercise of stock options and vesting of early exercised options | 43 | 43 | |||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, Shares | 439,768 | ||||
Stock-based compensation | 164 | 164 | |||
Net income | 4,057 | 4,057 | |||
Ending Balances at Dec. 31, 2015 | 9,240 | $ 8,794 | 298 | 148 | |
Ending Balances, Shares at Dec. 31, 2015 | 10,742,500 | 3,332,852 | |||
Issuance of common stock upon exercise of stock options and vesting of early exercised options | 76 | 76 | |||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, Shares | 392,386 | ||||
Stock-based compensation | 439 | 439 | |||
Net income | 3,481 | 3,481 | |||
Ending Balances at Dec. 31, 2016 | 13,236 | $ 8,794 | 813 | 3,629 | |
Ending Balances, Shares at Dec. 31, 2016 | 10,742,500 | 3,725,238 | |||
Conversion of convertible preferred stock to common stock upon IPO | $ (8,794) | $ 2 | 8,792 | ||
Conversion of convertible preferred stock to common stock upon IPO, Shares | (10,742,500) | 10,742,500 | |||
Issuance of common stock upon IPO, net of issuance costs | 5,157 | 5,157 | |||
Issuance of common stock upon IPO, net of issuance costs, Shares | 1,520,000 | ||||
Issuance of common stock upon exercise of over-allotment option, net of issuance costs | 1,200 | 1,200 | |||
Issuance of common stock upon exercise of over-allotment option, net of issuance costs, Shares | 228,000 | ||||
Issuance of common stock upon exercise of stock options and vesting of early exercised options | 170 | 170 | |||
Issuance of common stock upon exercise of stock options and vesting of early exercised options, Shares | 506,433 | ||||
Issuance of common stock upon vesting of RSUs, Shares | 30,000 | ||||
Stock-based compensation | 1,448 | 1,448 | |||
Net income | 3,757 | 3,757 | |||
Ending Balances at Dec. 31, 2017 | $ 24,968 | $ 2 | $ 17,580 | $ 7,386 | |
Ending Balances, Shares at Dec. 31, 2017 | 16,752,171 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities | |||
Net income | $ 3,757 | $ 3,481 | $ 4,057 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 207 | 160 | 94 |
Stock-based compensation | 1,448 | 439 | 164 |
Write-off of long lived assets | 9 | 7 | |
Deferred income taxes | 370 | (193) | (829) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (14) | (77) | (2) |
Inventory | (264) | (1,202) | (286) |
Prepaid expenses and other current assets | (705) | 193 | (322) |
Other assets | (18) | (23) | (151) |
Accounts payable | 85 | (791) | 1,134 |
Accrued expenses | 180 | 200 | 52 |
Customer deposits | (739) | (614) | 1,323 |
Other liabilities | 43 | 28 | 53 |
Net cash provided by operating activities | 4,359 | 1,608 | 5,287 |
Cash Flows From Investing Activities | |||
Purchase of property and equipment | (170) | (346) | (88) |
Net cash used in investing activities | (170) | (346) | (88) |
Cash Flows From Financing Activities | |||
Proceeds from initial public offering, net of underwriter commissions | 9,339 | ||
Net proceeds from exercise of stock options | 98 | 113 | 184 |
Payments of deferred offering costs | (2,096) | (832) | |
Net cash provided by (used in) financing activities | 7,341 | (719) | 184 |
Net increase in cash and cash equivalents | 11,530 | 543 | 5,383 |
Cash and cash equivalents at beginning of period | 10,006 | 9,463 | 4,080 |
Cash and cash equivalents at end of period | 21,536 | 10,006 | 9,463 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for income taxes | 2,585 | 1,819 | 821 |
Supplemental Disclosure of Noncash Investing and Financing Information | |||
Conversion of preferred stock to common stock upon initial public offering | 8,792 | ||
Vesting of early exercised options | 99 | 76 | 16 |
Property and equipment purchased but not yet paid | $ 21 | 51 | |
Unpaid deferred offering costs | $ 161 | $ 53 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization Techpoint, Inc. and its wholly-owned subsidiaries (the “Company”) was originally incorporated in California in April 2012 and reincorporated into Delaware in July 2017. The Company is a fabless semiconductor company that designs, markets and sells mixed-signal integrated circuits for multiple video applications in the security surveillance and automotive markets. The Company is headquartered in San Jose, California. Initial Public Offering On September 29, 2017, the Company completed its initial public offering (“IPO”) of Japanese depositary shares (“JDS”). In connection with the IPO, the Company sold 1,520,000 JDSs, represented by 1,520,000 shares of our common stock at a price to the public of $5.85 per share and received net proceeds of $8.1 million, after deducting underwriting discounts and commissions of $0.7 million. Additionally, offering costs incurred by the Company totaled $3.0 million. Prior to the closing of the Company’s IPO, all outstanding shares of its preferred stock converted to common stock on a one-to-one basis. On October 25, 2017, the managing underwriter of our IPO elected to purchase an additional 228,000 shares of JDSs, represented by 228,000 shares of common stock, pursuant to the underwriters’ over-allotment option. We subsequently completed the sale at the IPO price of $5.85 per share and received net proceeds of $1.2 million, after deducting underwriting discounts and commissions of $0.1 million. Basis of Consolidation and Significant Accounting Policies The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated. The functional currency of each of the Company’s subsidiaries is the U.S. dollar. Foreign currency gains or losses are recorded as other income (expense) in the Consolidated Statements of Operations. Use of Management’s Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Significant estimates included in the consolidated financial statements include inventory valuation, valuation allowance for recorded deferred tax assets, and stock-based compensation. These estimates are based upon information available as of the date of the consolidated financial statements. Actual results could differ materially from those estimates. Concentration of Customer and Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Risks associated with cash and cash equivalents are mitigated by banking with creditworthy institutions. The Company generally requires advance payments from customers. The Company also performs credit evaluations of its customers and provides credit to certain customers in the normal course of business. The Company has not incurred bad debt write-offs during any of the periods presented. For the year ended December 31, 2017, 2016 and 2015, one customer, a distributor, accounted for 74%, 85% and 82% of revenue, respectively. Additionally, for the year ended December 31, 2017, 2016 and 2015, one of our end-customers accounted for 59%, 62% and 78% of revenue, respectively, which primarily occurred through this distributor. No other customers accounted for 10% or greater of our revenue in the year ended December 31, 2017, 2016 or 2015. Additionally, no other end-customer accounted for 10% or greater of our revenue for the year ended December 31, 2017. One other end-customer accounted for 10% or greater of our revenue for the year ended December 31, 2016. No other end-customer accounted for 10% or greater of our revenue for the year ended December 31, 2015. Concentration of Supplier Risk The Company is a fabless producer of semiconductors and is dependent on three subcontractors for substantially all of its production requirements. The failure of either subcontractor to fulfill the production requirements of the Company on a timely basis would adversely impact future results. Although there are other subcontractors that are capable of providing similar services, an unexpected change in either subcontractor would cause delays in the Company’s products and potentially result in a significant loss of revenue. Cash and Cash Equivalents The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market funds, the fair value of which approximates cost. Fair Value of Financial Instruments The Company estimates certain financial assets and liabilities at fair value based on available market information and valuation methodologies considered to be appropriate. However, considerable judgment is required in interpreting market data to develop the estimate of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on estimated fair value amounts. See Note 3: “Fair Value Measurements” of these Notes to Consolidated Financial Statements for a further discussion on fair value of financial instruments. Inventories Inventories are stated at the lower of cost or market. Upon the adoption of ASU 2015-11 in the first quarter of fiscal 2017, inventories are stated at the lower of cost or net realizable value. Cost is computed using the standard cost, which approximates actual cost determined on a first-in, first-out basis. Inventories include work in process and finished good parts that may be specialized in nature and subject to rapid obsolescence. Because of the cyclical nature of the market, inventory levels, obsolescence of technology, and product life cycles, the Company generally writes down inventories to net realizable value based on forecasted product demand. Inventory write downs for excess quantity and technological obsolescence are charged to cost of sales when evidence indicates clearly that a loss has been sustained. The amount written down for the years ended December 31, 2017 and 2016 was $0.4 million and $0.8 million, respectively. Property and Equipment Property and equipment, are stated at cost less accumulated depreciation, and are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives range from two to three years for computer equipment, furniture and leasehold improvements. The Company evaluates the recoverability of property, plant and equipment in accordance with Accounting Standards Codification (“ASC”) No. 360, Accounting for the Property, Plant, and Equipment Product Warranty The Company generally warrants its products for one year from the date of shipment against defects. The Company accrues for anticipated warranty costs upon shipment based on the number of shipped units, historical analysis of the volume of product returned under the warranty program, management’s judgment regarding anticipated rates of warranty claims and associated repair costs. Employee Benefit Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. Revenue Recognition Revenue from the sale of the Company’s products is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the product has been delivered; (3) the price is fixed or determinable; and (4) collection is reasonably assured. The Company principally sells its products to distributors who, in turn, sell to ODMs, contract manufacturers and design houses. The Company generally recognizes revenue when it ships its product to the distributors. The Company’s delivery terms are primarily free on board shipping point, at which time title and all risks of ownership are transferred to the distributor. As of December 31, 2017 and 2016, substantially all of the Company’s customers paid in advance of shipment, and no stock rotation, price protection or return rights were offered. Research and Development Costs Research and development costs are expensed as incurred. Such costs consist primarily of expenditures for labor, benefits and mask sets. Stock-Based Compensation The Company measures the cost of employee services received in exchange for equity incentive awards, including stock options, based on the grant date fair value of the award. The fair value is estimated using the Black-Scholes option pricing model which requires us to estimate certain key assumptions including, stock price, future stock price volatility, expected term of the options, risk free rates, and dividend yields. The Company adjusts compensation expense for forfeiture of equity incentive awards as they occur. Stock-based awards issued to non-employees are recognized as expense over the requisite service period at their then current fair value. The Company determines the fair value of its stock-based awards issued to non-employees utilizing the Black-Scholes option pricing model. Stock-based compensation expense for stock-based awards issued to nonemployees is recognized over the requisite service period or when it is probable that the performance condition will be satisfied. The fair value of stock-based awards to non-employees is measured at each reporting period until a measurement date is reached. Income Taxes The Company accounts for income taxes using an asset and liability approach as prescribed in ASC 740-10, Income Taxes ASC 740-10 prescribes a recognition threshold and measurement framework for the financial statement reporting and disclosure of an income tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax position is recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the recognition threshold is then measured to determine the largest amount of the benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes in the Consolidated Statements of Income. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws across multiple tax jurisdictions. Although ASC 740-10 provides Recently Adopted Accounting Pronouncements Stock Compensation Guidance. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 (ASC Topic 718), Stock Compensation — Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for share based payment transactions, including the income tax consequences, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning the first quarter of fiscal 2017. The Company adopted the guidance in the first quarter of fiscal 2017, which resulted in no material impacts on its financial position, results of operations, or cash flows, and expects the primary impact of this standard to be the income tax effects of awards recognized in the income statement when the awards are vested or settled. The potential tax impacts remain unknown until the award vest or settlement date. Inventory Measurement Guidance. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, amending ASC 330. Upon adoption, this topic supersedes the existing guidance under ASC 330 and aims to simplify the subsequent measurement of inventory. Currently, inventory can be measured at the lower of cost or market, which could result in several potential outcomes, as market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. The major amendments would be as follows: 1. Inventory should be measured at the lower of cost or net realizable value. 2. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. 3. The amendment does not apply to inventory measured under LIFO or the retail inventory method. 4. The amendment does apply to all other inventory, which includes inventory measured via FIFO or average cost. ASU 2015-11 became effective for periods beginning after December 15, 2016 (including interim reporting periods within those fiscal years), or the first quarter of fiscal 2017. The Company adopted this guidance in the first quarter of fiscal 2017, which resulted in no material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted Lease Guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize all leases with terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The new standard also simplifies the accounting for sale and leaseback transactions. The amendments in this update are effective for annual periods beginning after December 15, 2018, and interim periods therein and must be adopted using a modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company does not expect that the adoption of this amendment will have a material impact on its consolidated financial statements. Revenue Recognition Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, creating ASC Topic 606. Upon adoption, this topic supersedes the existing guidance under ASC 605 and aims to simplify the number of requirements to follow for revenue recognition and make revenue recognition more comparable across various entities, industries, jurisdictions and capital markets. There are 5 core principles: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Additional considerations under this update include: accounting for costs to obtain or fulfill a contract with a customer and additional quantitative and qualitative disclosures. ASU 2014-09 will become effective for periods beginning after December 15, 2017 (including interim reporting periods within those periods), or the first quarter 2018, and allows for retrospective or modified retrospective application. The Company has substantially completed its evaluation of the effect of the standard on the Company’s financial statements. The Company’s evaluation focused on the review of significant customer contracts as well as business processes, systems and controls required to support appropriate recognition and disclosure under the new standard. Based on the Company’s evaluation and as the Company does not offer stock rotation, price protection or return rights for its product sales, |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 2. Balance Sheet Inventory Inventory consists of the following (in thousands): December 31, December 31, 2017 2016 Finished goods $ 1,633 $ 1,741 Work in process 1,214 842 Total inventory $ 2,847 $ 2,583 Property and Equipment - Net Property and equipment - net consists of the following (in thousands): December 31, December 31, 2017 2016 Computer equipment $ 687 $ 605 Leasehold improvements 59 22 Furniture 30 37 Total property and equipment 776 664 Less: accumulated depreciation (451 ) (263 ) Total property and equipment - net $ 325 $ 401 The Company recorded $0.2 million and $0.2 million of depreciation expense for the year ended December 31, 2017 and 2016, respectively. Accrued Liabilities Accured liabilities consist of the following (in thousands): December 31, December 31, 2017 2016 Payroll-related expenses $ 291 $ 144 Engineering services 131 110 Accrued warranty 73 83 Taxes payable 37 27 Professional fees 23 95 Other 18 22 Total accrued liabilities $ 573 $ 481 Customer Deposits Customer deposits represent payments received in advance of shipments. Customer deposits were $6,000 and $0.7 million as of December 31, 2017 and 2016, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Fair value is defined as the exchange price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 . Quoted prices in active markets for identical assets or liabilities. Level 2 . Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 . Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. Financial assets measured at fair value on a recurring basis were as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of December 31, 2017 Assets: Money market funds $ 6,951 $ — $ — $ 6,951 As of December 31, 2016 Assets: Money market funds $ 4,932 $ — $ — $ 4,932 As of December 31, 2017 and 2016, money market funds are classified as Level 1 because they are valued using quoted market prices and are included in cash and cash equivalents. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | 4. Segment Information Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance. The Company’s chief operating decision maker, the chief executive officer, reviews financial information presented on a consolidated basis for purposes of regularly making operating decisions and assessing financial performance. Accordingly, the Company considers itself to be in one reportable segment, which is comprised of one operating segment, the designing, marketing and selling of mixed-signal integrated circuits for the security surveillance and automotive markets. Product revenue from customers is designated based on the geographic region to which the product is delivered. Revenue by geographic region was as follows (in thousands): Year Ended December 31, 2017 2016 2015 China $ 26,453 $ 23,815 $ 17,637 South Korea 2,857 1,600 1,470 Taiwan 821 1,214 1,128 Other 1,011 527 10 Total revenue $ 31,142 $ 27,156 $ 20,245 Revenue by principal product lines were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Security surveillance $ 28,143 $ 26,531 $ 20,237 Automotive 2,999 625 8 Total revenue $ 31,142 $ 27,156 $ 20,245 Long-lived assets are attributed to the geographic region where they are located. Net long-lived assets by geographic region were as follows (in thousands): December 31, December 31, 2017 2016 Taiwan $ 205 $ 255 United States 92 83 Japan 16 39 China 9 19 South Korea 3 5 Total property and equipment - net $ 325 $ 401 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 5. Commitments and Contingencies Operating leases The Company leases facilities under non-cancellable lease agreements expiring through fiscal year 2020. As of December 31, 2017, the aggregate future minimum lease payments under operating leases consist of the following (in thousands): Year Ending December 31, Amount 2018 $ 469 2019 520 2020 60 Total $ 1,049 Rent expense under operating leases was $0.5 million and $0.4 million for the year ended December 31, 2017 and 2016, respectively. Purchase Commitments As of December 31, 2017, the Company had purchase commitments with its third-party suppliers through fiscal year 2018. Future minimum payments under purchase commitments are $0.1 million for the year ending December 31, 2018. Litigation Although the Company is not currently subject to any litigation, and no litigation is currently threatened against it, the Company may be subject to legal proceedings, claims and litigation, including intellectual property litigation, arising in the ordinary course of business. Such matters are subject to many uncertainties and outcomes and are not predictable with assurance. The Company accrues amounts that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss that is reasonably estimable. Indemnification During the normal course of business, the Company may make certain indemnities, commitments and guarantees which may include intellectual property indemnities to certain of the Company’s customers in connection with the sales of the Company’s products and indemnities for liabilities associated with the infringement of other parties’ technology based upon the Company’s products. The Company’s exposure under these indemnification provisions is generally limited to the total amount paid by a customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in such capacities. The Company has not recorded any liability for these indemnities, commitments and guarantees in the accompanying consolidated balance sheets. Where necessary, the Company accrues for losses for any known contingent liabilities, including those that may arise from indemnification provisions, when future payment is probable. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 6. Stockholders’ Equity Convertible Preferred Stock The Company had authorized and issued Series Seed Preferred Stock (“Series Seed”), Series A preferred stock (“Series A”), and Series B preferred stock (“Series B”). Preferred stock outstanding as of December 31, 2016 consisted of the following (in thousands, except share and per share data): December 31, 2016 Series Period Issued Price per Share Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Value Carrying Value Seed July 2012 $ 0.25 4,660,000 4,660,000 $ 1,165 $ 1,156 A November 2012 to June 2013 $ 1.00 4,500,000 4,500,000 4,500 4,477 B June 2014 to October 2014 $ 2.00 2,500,000 1,582,500 3,165 3,161 Total 11,660,000 10,742,500 $ 8,830 $ 8,794 Prior to the closing of the Company’s IPO, all shares of the then-outstanding convertible preferred stock, as shown in the table above, converted on a one-for-one basis into common stock. Preferred Stock The Company was authorized to issue 5,000,000 shares of preferred stock with a $0.0001 par value per share as of December 31, 2017. The shares of preferred stock issued and outstanding was nil as of December 31, 2017. Common Stock The Company was authorized to issue 75,000,000 shares of common stock with $0.0001 par value per share as of December 31, 2017. The shares of common stock issued and outstanding was 16,752,171 excluding 289,334 legally issued shares subject to repurchase related to the early exercise of options to purchase common stock as of December 31, 2017. The Company has reserved the following number of shares of common stock for future issuances: December 31, 2017 Outstanding stock awards 1,593,568 Shares available for future issuance under the 2017 Stock Incentive Plan 3,933,649 Total common stock reserved for future issuances 5,527,217 |
Stock Award Plan
Stock Award Plan | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Award Plan | 7. Stock Award Plan Stock Incentive Plan In April 2012, the Company adopted the 2012 Stock Option Plan (“2012 Plan”). The 2012 Plan provides for the granting of stock-based awards to employees, directors, and consultants under terms and provisions established by the Company’s board of directors. Under the terms of the 2012 Plan, options may be granted at an exercise price not less than fair market value. For employees holding more than 10% of the voting rights of all classes of stock, the exercise prices for incentive and nonstatutory stock options must be at least 110% of the fair market value of the common stock on the grant date, as determined by the Company’s board of directors. The terms of options granted under the 2012 Plan may not exceed ten years. In August 2017, the Company adopted the 2017 Stock Option Plan (“2017 Plan”). The Company’s stockholders approved the 2017 Plan in September 2017 and it became effective immediately prior to the closing of the Company’s IPO. In connection with the adoption of the 2017 Plan, no additional awards and no shares of common stock remain available for future issuance under the 2012 Plan and shares reserved but not issued under the 2012 Plan as of the effective date of the 2017 Plan were included in the number of shares reserved for issuance under the 2017 Plan . The Company has reserved 3,933,649 shares of its common stock for issuance under the 2017 Plan, including 1,453,649 shares reserved but not issued under the 2012 Plan as of the effective date of the 2017 Plan. In addition, shares subject to awards under the 2012 Plan that are forfeited or terminated will be added to the 2017 Plan. The number of shares that have been authorized for issuance under the 2017 Plan will be automatically increased on the first day of each fiscal year beginning on January 1, 2018 and ending on (and including) January 1, 2027, in an amount equal to the lesser of (1) 4% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or (2) another amount determined by the Company’s board of directors. The 2017 Plan provides for the granting of incentive stock options, or ISOs, within the meaning of Section 422 of the Code to employees and the granting of nonstatutory stock options, or NSOs, to employees, non-employee directors, advisors and consultants. The 2017 Plan also provides for the grants of restricted stock, stock appreciation rights, or SARs, stock unit and cash-based awards to employees, non-employee directors, advisors and consultants. The Company has various vesting agreements with employees. Options granted generally vest over a five-year period and generally are exercisable up to 10 years. Early Exercise of Stock Options Certain employees and directors have exercised option grants prior to vesting. The unvested shares are subject to a repurchase right held by the Company at the original purchase price. The proceeds initially are recorded as liability related to early exercised stock options and reclassified to additional paid in capital as the repurchase right lapses. The Company issued 46,667 and 302,083 unvested shares of common stock upon early exercise for the year ended December 31, 2017 and 2016, respectively, for total exercise proceeds of $ 46,000 and $113,000, respectively. For the year ended December 31, 2017 and 2016, the Company repurchased 45,666 and 37,167 shares, respectively, of unvested common stock related to early exercised stock options at the original purchase price due to termination of employees. As of December 31, 2017 and 2016, 289,334 and 606,833 shares, respectively, held by employees and nonemployees were subject to repurchase at an aggregate price of $ 0.2 million and $0.2 million, respectively. Stock Options The Company’s stock option activity is summarized as follows: Options Available for Grant Options Issued and Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) As of December 31, 2016 2,017,983 1,545,667 $ 0.81 8.2 $ 3,216 Authorized 2,500,000 — Granted (583,500 ) 583,500 $ 2.99 Exercised (1) — (506,433 ) $ 0.34 Canceled 49,166 (49,166 ) $ 0.41 As of December 31, 2017 3,983,649 1,573,568 $ 1.78 8.4 $ 24,556 Options vested and expected to vest as of December 31, 2017 1,573,568 $ 1.78 8.4 $ 24,556 Options vested and exercisable as of December 31, 2017 357,920 $ 1.42 7.9 $ 5,714 (1) Includes vesting of early-exercised options. The stock options outstanding and exercisable by exercise price at December 31, 2017, are as follows: Options Outstanding Options Vested and Exercisable Exercise Price Number Outstanding Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number Vested and Exercisable Weighted- Average Exercise Price $ 0.10 14,167 5.6 $ 0.10 — $ — $ 0.16 128,750 6.1 $ 0.16 72,333 $ 0.16 $ 0.37 317,584 7.4 $ 0.37 64,500 $ 0.37 $ 0.97 263,833 8.2 $ 0.97 68,828 $ 0.97 $ 2.51 269,401 8.7 $ 2.51 95,626 $ 2.51 $ 2.89 52,000 9.2 $ 2.89 — $ — $ 2.93 372,833 9.4 $ 2.93 49,133 $ 2.93 $ 3.18 155,000 9.6 $ 3.18 7,500 $ 3.18 1,573,568 8.4 $ 1.78 357,920 $ 1.42 The aggregate intrinsic value of options exercised for the year ended December 31, 2017 and 2016 was $ 1.8 million and $0.8 million, respectively. Restricted Stock Units The Company’s restricted stock unit activity is summarized as follows: Number of Shares Weighted-Average Grant Date Fair Value As of December 31, 2016 30,000 $ 2.89 Granted 20,000 $ 19.42 Released (30,000 ) $ 2.89 Canceled — As of December 31, 2017 20,000 $ 19.42 Restricted stock units are converted into shares of the Company’s common stock upon vesting on a one-for-one basis. Restricted stock unit awards generally vest over a five-year period and are subject to the grantee’s continued service with the Company. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. Stock-Based Compensation The following table summarizes the distribution of stock-based compensation expense (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenue $ 31 $ 15 $ 7 Research and development 273 102 73 Selling, general and administrative 1,144 322 84 Total $ 1,448 $ 439 $ 164 The Company records stock-based compensation using the Black-Scholes option-pricing model. The Company recognizes such costs as compensation expense on a straight-line basis over the requisite service period. The Company’s valuation assumptions are as follows: Fair value of common stock — Given the absence of a public trading market prior to our IPO, the Company’s Board of Directors considered numerous objective and subjective factors to determine the fair value of the Company’s common stock which included, but were not limited to (i) contemporaneous independent third-party valuations of the Company’s common stock; (ii) the rights and preferences of the Company’s preferred stock relative to common stock; (iii) the lack of marketability of common stock; (iv) developments in the business; and (v) the likelihood of achieving a liquidity event, such as an initial public offering or sale of the company, given prevailing market conditions. Subsequent to our IPO, the fair value of the Company’s common stock was the per share closing price for our JDS as reported on the Mothers market of the Tokyo Stock Exchange on the date of grant. Risk-free interest rate — The Company bases the risk-free interest rate used in the Black-Scholes option-pricing model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent expected term of the awards for each award group. Expected term — The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. To determine the expected term, we generally apply the simplified approach in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award as we do not have sufficient historical exercise data to provide a reasonable basis for an estimate of expected term. Volatility — As the Company does not have a long trading history to determine the volatility of its common stock, the Company determines volatility based on the historical stock volatilities of a group of publicly listed guideline companies over a period equal to the expected terms of the awards. Dividend yield — The Company has never declared or paid any cash dividends and does not currently plan to pay a cash dividend in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. Employee Stock Awards The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to determine fair value of stock awards: Year Ended December 31, 2017 2016 2015 Expected term (in years) 6.28 6.19 6.30 Risk-free interest rate 2.01 % 1.38 % 1.67 % Expected volatility 53 % 51 % 46 % Dividend rate 0 % 0 % 0 % Fair value of common stock $ 5.14 $ 2.35 $ 0.86 The weighted-average grant date fair value for employee stock awards for the year ended December 31, 2017, 2016 and 2015 was $3.71, $1.36 and $0.53, respectively. The remaining unrecognized stock-based compensation expense related to non-vested awards was $ 2.3 million and $0.8 million as of December 31, 2017 and 2016, respectively, and will be recognized over a weighted-average remaining period of approximately 3.7 and 3.7 years, respectively. Non-Employee Stock Awards The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to determine fair value of stock awards: Year Ended December 31, 2017 2016 2015 Expected term (in years) 10.00 10.00 10.00 Risk-free interest rate 2.30 % 2.02 % 2.09 % Expected volatility 53 % 53 % 50 % Dividend rate 0 % 0 % 0 % Fair value of common stock $ 14.40 $ 2.68 $ 0.84 The weighted-average grant date fair value for non-employee stock awards for the year ended December 31, 2017, 2016 and 2015 was $ 7.34 , $2.16 and $0.53, respectively. Non-employee stock awards are revalued at each reporting date and the relating stock-based compensation expense is recognized as awards vest. Non-employee stock-based compensation expense for unvested awards fluctuate as the fair value of our JDS, represented by common stock, fluctuates. The remaining unrecognized stock-based compensation expense related to non-vested awards was $ 0.3 million and $0.2 million as of December 31, 2017 and 2016, respectively, and will be recognized over a weighted-average remaining period of approximately 1.9 and 4.0 years, respectively. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 9. Net Income Per Share For the periods presented prior to the Company’s IPO, basic and diluted net income per common share are presented in conformity with the two-class method required for participating securities. Series Seed, Series A, and Series B convertible preferred shares, The following table presents the calculation of basic and diluted net income per share (amounts in thousands, except per share data): Year Ended December 31, 2017 2016 2015 Numerator: Basic: Net income $ 3,757 $ 3,481 $ 4,057 Net income allocable to preferred stockholders 1,936 2,627 3,170 Net income allocable to common stockholders 1,821 854 887 Diluted: Net income 3,757 3,481 4,057 Net income allocable to preferred stockholders 1,823 2,477 3,002 Net income allocable to common stockholders 1,934 1,004 1,055 Denominator: Basic shares: Weighted-average shares outstanding in computing basic net income per share allocable to common stockholders 7,145,641 3,493,946 3,007,311 Diluted shares: Effect of potentially dilutive securities: Stock options (1) 910,688 864,441 766,835 Weighted-average shares used in computing diluted net income per common share allocable to common stockholders 8,056,329 4,358,387 3,774,146 Net income per common share: Basic $ 0.25 $ 0.24 $ 0.30 Diluted $ 0.24 $ 0.23 $ 0.28 (1) Including early-exercised options. The potentially dilutive securities outstanding related to stock options as of December 31, 2017, 2016 and 2015 that were excluded from the computation of diluted net income per common share for the periods presented as their effect would have been antidilutive was 7,000 , 56,000 and 39,000 shares, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of income before income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Domestic $ 6,141 $ 5,311 $ 3,888 Foreign 131 52 1 Income before income taxes $ 6,272 $ 5,363 $ 3,889 The components of the provision for income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ 2,089 $ 2,034 $ 659 Foreign 55 40 1 State 1 1 1 Total Current 2,145 2,075 661 Deferred - net 370 (193 ) (829 ) Provision for income taxes $ 2,515 $ 1,882 $ (168 ) The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows: Year Ended December 31, 2017 2016 2015 U.S. statutory federal taxes at statutory rate 34.00 % 34.00 % 34.00 % State taxes - net of federal benefit 0.01 0.01 0.01 Research and development benefit (1.72 ) (2.59 ) (4.08 ) Permanent items and other 0.94 2.55 0.55 Change in valuation allowance 1.78 1.12 (34.80 ) Tax rate change 5.06 — — Effective tax rate 40.07 % 35.09 % (4.32)% The components of net deferred tax assets and liabilities are as follows: Year Ended December 31, 2017 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 85 $ 71 $ 71 Research and other credits 309 211 151 Accruals 243 464 192 Intangibles 323 574 623 Other 140 97 50 Total deferred tax assets 1,100 1,417 1,087 Deferred tax liabilities: Property and equipment - net (54 ) (113 ) (36 ) Total deferred tax liabilities (54 ) (113 ) (36 ) Valuation allowance (394 ) (282 ) (222 ) Deferred tax assets - net $ 652 $ 1,022 $ 829 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of its deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which temporary differences become deductible or includable in taxable income. Management considers projected future taxable income and tax planning strategies in making this assessment. Based on the level of current period taxable income and its expected recurring profitability, Management believes it is more likely than not the Company will realize benefits of deductible differences and thus has not recorded a full valuation allowance. Tax reform H.R.1, originally known as the Tax Cuts and Jobs Act (“Act”), was enacted on December 22, 2017. The Act contains several key provisions that may have significant financial statement effects including the remeasurement of deferred taxes and the recognition of liabilities for taxes on mandatory repatriation and certain other foreign income. The Act reduces the corporate tax rate to 21%, effective January 1, 2018. ASC 740 requires companies to recognize the effect of tax law changes in the period of enactment, the effects must be recognized by companies’ December 2017 financial statements, even though the effective date for most provisions is January 1, 2018. Subsequent to the enactment of the Act, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 ("SAB 118"). SAB 118 addresses the application of ASC 740 in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Act and permits the recording of provisional amounts relating to the impact of the Act during a measurement period which is not to extend beyond one year from the Act enactment date. The Company has reflected the impact of the Act in its financial statements as the law was enacted before the end of the 2017 year. The Company estimated that the reduction in the Corporate tax rate to 21% reduced net deferred tax assets by $0.3 million from $1.0 million to $0.7 million. The Company has estimated the liabilities for taxes on mandatory repatriation and certain other foreign income. The liabilities for taxes on mandatory repatriation of foreign income and taxes on other foreign income from its foreign subsidiaries is approximately $35,000 of which $34,000 can be offset with a foreign tax credit. As of December 31, 2017 and 2016, the Company had net operating loss carryforwards of $1.2 million and $1.2 million, respectively, for state income tax purposes. These net operating loss carryforwards will begin to expire in 2032 if unused. As of December 31, 2017 and 2016, the Company also had credit carryforwards of $0.5 million and $0.4 million, respectively, for state income tax purposes. These credits carryforwards have no expiration if unused. As of December 31, 2017 and 2016, the Company did not have net operating loss carryforwards or other credits for federal income tax purposes. Current tax laws impose substantial restrictions on the utilization of net operating losses and credit carryforwards in the event of an "ownership change", as defined by the Internal Revenue Code (IRC). If there should be an ownership change, the Company's ability to utilize its carryforwards could be limited. As of December 31, 2017 and 2016, the Company had unrecognized tax benefits of $ 0.2 million and $0.2 million, respectively, due to research and development credits. The reversal of the uncertain tax benefits would impact the Company’s effective tax rate. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 11. Selected Quarterly Financial Data (Unaudited) The following table summarizes the Company’s unaudited consolidated statements of operations by quarter for the year ended December 31, 2017 and 2016. In the opinion of management, the accompanying unaudited consolidated statements of operations reflect all adjustments, which only include normal recurring adjustments, necessary to present fairly the Company’s results of operations in accordance with GAAP and are not necessarily indicative of the results to be expected for the full fiscal year or for any other future annual or interim periods. Three Months Ended Dec 31, 2017 Sept 30, 2017 June 30, 2017 March 31, 2017 Dec 31, 2016 Sept 30, 2016 June 30, 2016 March 31, 2016 Revenue $ 7,761 $ 8,112 $ 8,039 $ 7,230 $ 5,888 $ 7,628 $ 7,396 $ 6,244 Cost of revenue 3,473 3,427 3,369 2,952 2,899 3,388 3,683 2,765 Gross profit 4,288 4,685 4,670 4,278 2,989 4,240 3,713 3,479 Operating expenses Research and development 1,565 1,156 1,197 1,465 1,004 1,180 1,101 1,095 Selling, general and administrative 2,068 1,541 1,357 1,227 1,117 1,099 1,417 1,045 Total operating expenses 3,633 2,697 2,554 2,692 2,121 2,279 2,518 2,140 Income from operations 655 1,988 2,116 1,586 868 1,961 1,195 1,339 Other income (expense) (4 ) (59 ) (2 ) (8 ) (10 ) (1 ) 3 8 Income before income taxes 651 1,929 2,114 1,578 858 1,960 1,198 1,347 Income taxes 591 646 739 539 419 630 390 443 Net income $ 60 $ 1,283 $ 1,375 $ 1,039 $ 439 $ 1,330 $ 808 $ 904 Net income per share allocable to common stockholders: Basic $ — $ 0.09 $ 0.09 $ 0.07 $ 0.03 $ 0.09 $ 0.06 $ 0.06 Diluted $ — $ 0.08 $ 0.09 $ 0.07 $ 0.03 $ 0.09 $ 0.05 $ 0.06 |
Organization and Summary of S18
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization Techpoint, Inc. and its wholly-owned subsidiaries (the “Company”) was originally incorporated in California in April 2012 and reincorporated into Delaware in July 2017. The Company is a fabless semiconductor company that designs, markets and sells mixed-signal integrated circuits for multiple video applications in the security surveillance and automotive markets. The Company is headquartered in San Jose, California. |
Initial Public Offering | Initial Public Offering On September 29, 2017, the Company completed its initial public offering (“IPO”) of Japanese depositary shares (“JDS”). In connection with the IPO, the Company sold 1,520,000 JDSs, represented by 1,520,000 shares of our common stock at a price to the public of $5.85 per share and received net proceeds of $8.1 million, after deducting underwriting discounts and commissions of $0.7 million. Additionally, offering costs incurred by the Company totaled $3.0 million. Prior to the closing of the Company’s IPO, all outstanding shares of its preferred stock converted to common stock on a one-to-one basis. On October 25, 2017, the managing underwriter of our IPO elected to purchase an additional 228,000 shares of JDSs, represented by 228,000 shares of common stock, pursuant to the underwriters’ over-allotment option. We subsequently completed the sale at the IPO price of $5.85 per share and received net proceeds of $1.2 million, after deducting underwriting discounts and commissions of $0.1 million. |
Basis of Consolidation and Significant Accounting Policies | Basis of Consolidation and Significant Accounting Policies The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, and have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated. The functional currency of each of the Company’s subsidiaries is the U.S. dollar. Foreign currency gains or losses are recorded as other income (expense) in the Consolidated Statements of Operations. |
Use of Management's Estimates | Use of Management’s Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Significant estimates included in the consolidated financial statements include inventory valuation, valuation allowance for recorded deferred tax assets, and stock-based compensation. These estimates are based upon information available as of the date of the consolidated financial statements. Actual results could differ materially from those estimates. |
Concentration of Customer and Credit Risk | Concentration of Customer and Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents and trade receivables. Risks associated with cash and cash equivalents are mitigated by banking with creditworthy institutions. The Company generally requires advance payments from customers. The Company also performs credit evaluations of its customers and provides credit to certain customers in the normal course of business. The Company has not incurred bad debt write-offs during any of the periods presented. For the year ended December 31, 2017, 2016 and 2015, one customer, a distributor, accounted for 74%, 85% and 82% of revenue, respectively. Additionally, for the year ended December 31, 2017, 2016 and 2015, one of our end-customers accounted for 59%, 62% and 78% of revenue, respectively, which primarily occurred through this distributor. No other customers accounted for 10% or greater of our revenue in the year ended December 31, 2017, 2016 or 2015. Additionally, no other end-customer accounted for 10% or greater of our revenue for the year ended December 31, 2017. One other end-customer accounted for 10% or greater of our revenue for the year ended December 31, 2016. No other end-customer accounted for 10% or greater of our revenue for the year ended December 31, 2015. |
Concentration of Supplier Risk | Concentration of Supplier Risk The Company is a fabless producer of semiconductors and is dependent on three subcontractors for substantially all of its production requirements. The failure of either subcontractor to fulfill the production requirements of the Company on a timely basis would adversely impact future results. Although there are other subcontractors that are capable of providing similar services, an unexpected change in either subcontractor would cause delays in the Company’s products and potentially result in a significant loss of revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market funds, the fair value of which approximates cost. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company estimates certain financial assets and liabilities at fair value based on available market information and valuation methodologies considered to be appropriate. However, considerable judgment is required in interpreting market data to develop the estimate of fair value. The use of different market assumptions and/or estimation methodologies could have a material effect on estimated fair value amounts. See Note 3: “Fair Value Measurements” of these Notes to Consolidated Financial Statements for a further discussion on fair value of financial instruments. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Upon the adoption of ASU 2015-11 in the first quarter of fiscal 2017, inventories are stated at the lower of cost or net realizable value. Cost is computed using the standard cost, which approximates actual cost determined on a first-in, first-out basis. Inventories include work in process and finished good parts that may be specialized in nature and subject to rapid obsolescence. Because of the cyclical nature of the market, inventory levels, obsolescence of technology, and product life cycles, the Company generally writes down inventories to net realizable value based on forecasted product demand. Inventory write downs for excess quantity and technological obsolescence are charged to cost of sales when evidence indicates clearly that a loss has been sustained. The amount written down for the years ended December 31, 2017 and 2016 was $0.4 million and $0.8 million, respectively. |
Property and Equipment | Property and Equipment Property and equipment, are stated at cost less accumulated depreciation, and are depreciated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives range from two to three years for computer equipment, furniture and leasehold improvements. The Company evaluates the recoverability of property, plant and equipment in accordance with Accounting Standards Codification (“ASC”) No. 360, Accounting for the Property, Plant, and Equipment |
Product Warranty | Product Warranty The Company generally warrants its products for one year from the date of shipment against defects. The Company accrues for anticipated warranty costs upon shipment based on the number of shipped units, historical analysis of the volume of product returned under the warranty program, management’s judgment regarding anticipated rates of warranty claims and associated repair costs. |
Employee Benefit Plan | Employee Benefit Plan The Company sponsors a 401(k) tax-deferred savings plan for all employees in the United States who meet certain eligibility requirements. Participants may contribute up to the amount allowable as a deduction for federal income tax purposes. |
Revenue Recognition | Revenue Recognition Revenue from the sale of the Company’s products is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) the product has been delivered; (3) the price is fixed or determinable; and (4) collection is reasonably assured. The Company principally sells its products to distributors who, in turn, sell to ODMs, contract manufacturers and design houses. The Company generally recognizes revenue when it ships its product to the distributors. The Company’s delivery terms are primarily free on board shipping point, at which time title and all risks of ownership are transferred to the distributor. As of December 31, 2017 and 2016, substantially all of the Company’s customers paid in advance of shipment, and no stock rotation, price protection or return rights were offered. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Such costs consist primarily of expenditures for labor, benefits and mask sets. |
Share-Based Compensation | Stock-Based Compensation The Company measures the cost of employee services received in exchange for equity incentive awards, including stock options, based on the grant date fair value of the award. The fair value is estimated using the Black-Scholes option pricing model which requires us to estimate certain key assumptions including, stock price, future stock price volatility, expected term of the options, risk free rates, and dividend yields. The Company adjusts compensation expense for forfeiture of equity incentive awards as they occur. Stock-based awards issued to non-employees are recognized as expense over the requisite service period at their then current fair value. The Company determines the fair value of its stock-based awards issued to non-employees utilizing the Black-Scholes option pricing model. Stock-based compensation expense for stock-based awards issued to nonemployees is recognized over the requisite service period or when it is probable that the performance condition will be satisfied. The fair value of stock-based awards to non-employees is measured at each reporting period until a measurement date is reached. |
Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach as prescribed in ASC 740-10, Income Taxes ASC 740-10 prescribes a recognition threshold and measurement framework for the financial statement reporting and disclosure of an income tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax position is recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the recognition threshold is then measured to determine the largest amount of the benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes in the Consolidated Statements of Income. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws across multiple tax jurisdictions. Although ASC 740-10 provides |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Stock Compensation Guidance. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 (ASC Topic 718), Stock Compensation — Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for share based payment transactions, including the income tax consequences, forfeitures, and statutory tax withholding requirements, as well as classification on the statement of cash flows. ASU 2016-09 is effective for the Company beginning the first quarter of fiscal 2017. The Company adopted the guidance in the first quarter of fiscal 2017, which resulted in no material impacts on its financial position, results of operations, or cash flows, and expects the primary impact of this standard to be the income tax effects of awards recognized in the income statement when the awards are vested or settled. The potential tax impacts remain unknown until the award vest or settlement date. Inventory Measurement Guidance. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, amending ASC 330. Upon adoption, this topic supersedes the existing guidance under ASC 330 and aims to simplify the subsequent measurement of inventory. Currently, inventory can be measured at the lower of cost or market, which could result in several potential outcomes, as market could be replacement cost, net realizable value or net realizable value less an approximately normal profit margin. The major amendments would be as follows: 1. Inventory should be measured at the lower of cost or net realizable value. 2. Net realizable value is the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. 3. The amendment does not apply to inventory measured under LIFO or the retail inventory method. 4. The amendment does apply to all other inventory, which includes inventory measured via FIFO or average cost. ASU 2015-11 became effective for periods beginning after December 15, 2016 (including interim reporting periods within those fiscal years), or the first quarter of fiscal 2017. The Company adopted this guidance in the first quarter of fiscal 2017, which resulted in no material impact on its consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted Lease Guidance. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 requires lessees to recognize all leases with terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The new standard also simplifies the accounting for sale and leaseback transactions. The amendments in this update are effective for annual periods beginning after December 15, 2018, and interim periods therein and must be adopted using a modified retrospective method for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. The Company does not expect that the adoption of this amendment will have a material impact on its consolidated financial statements. Revenue Recognition Guidance. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, creating ASC Topic 606. Upon adoption, this topic supersedes the existing guidance under ASC 605 and aims to simplify the number of requirements to follow for revenue recognition and make revenue recognition more comparable across various entities, industries, jurisdictions and capital markets. There are 5 core principles: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. Additional considerations under this update include: accounting for costs to obtain or fulfill a contract with a customer and additional quantitative and qualitative disclosures. ASU 2014-09 will become effective for periods beginning after December 15, 2017 (including interim reporting periods within those periods), or the first quarter 2018, and allows for retrospective or modified retrospective application. The Company has substantially completed its evaluation of the effect of the standard on the Company’s financial statements. The Company’s evaluation focused on the review of significant customer contracts as well as business processes, systems and controls required to support appropriate recognition and disclosure under the new standard. Based on the Company’s evaluation and as the Company does not offer stock rotation, price protection or return rights for its product sales, |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Components of Inventory | Inventory consists of the following (in thousands): December 31, December 31, 2017 2016 Finished goods $ 1,633 $ 1,741 Work in process 1,214 842 Total inventory $ 2,847 $ 2,583 |
Components of Property and Equipment - Net | Property and equipment - net consists of the following (in thousands): December 31, December 31, 2017 2016 Computer equipment $ 687 $ 605 Leasehold improvements 59 22 Furniture 30 37 Total property and equipment 776 664 Less: accumulated depreciation (451 ) (263 ) Total property and equipment - net $ 325 $ 401 |
Components of Accrued Liabilities | Accured liabilities consist of the following (in thousands): December 31, December 31, 2017 2016 Payroll-related expenses $ 291 $ 144 Engineering services 131 110 Accrued warranty 73 83 Taxes payable 37 27 Professional fees 23 95 Other 18 22 Total accrued liabilities $ 573 $ 481 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | Financial assets measured at fair value on a recurring basis were as follows: Fair Value Measurement at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total As of December 31, 2017 Assets: Money market funds $ 6,951 $ — $ — $ 6,951 As of December 31, 2016 Assets: Money market funds $ 4,932 $ — $ — $ 4,932 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Product Revenue from Customer by Geographic Region | Product revenue from customers is designated based on the geographic region to which the product is delivered. Revenue by geographic region was as follows (in thousands): Year Ended December 31, 2017 2016 2015 China $ 26,453 $ 23,815 $ 17,637 South Korea 2,857 1,600 1,470 Taiwan 821 1,214 1,128 Other 1,011 527 10 Total revenue $ 31,142 $ 27,156 $ 20,245 |
Schedule of Revenue by Principal Products Lines | Revenue by principal product lines were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Security surveillance $ 28,143 $ 26,531 $ 20,237 Automotive 2,999 625 8 Total revenue $ 31,142 $ 27,156 $ 20,245 |
Schedule of Net Long-lived Assets by Geographic Region | Long-lived assets are attributed to the geographic region where they are located. Net long-lived assets by geographic region were as follows (in thousands): December 31, December 31, 2017 2016 Taiwan $ 205 $ 255 United States 92 83 Japan 16 39 China 9 19 South Korea 3 5 Total property and equipment - net $ 325 $ 401 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Aggregate Future Minimum Lease Payments Under Operating Leases | As of December 31, 2017, the aggregate future minimum lease payments under operating leases consist of the following (in thousands): Year Ending December 31, Amount 2018 $ 469 2019 520 2020 60 Total $ 1,049 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Preferred Stock Outstanding | Preferred stock outstanding as of December 31, 2016 consisted of the following (in thousands, except share and per share data): December 31, 2016 Series Period Issued Price per Share Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Value Carrying Value Seed July 2012 $ 0.25 4,660,000 4,660,000 $ 1,165 $ 1,156 A November 2012 to June 2013 $ 1.00 4,500,000 4,500,000 4,500 4,477 B June 2014 to October 2014 $ 2.00 2,500,000 1,582,500 3,165 3,161 Total 11,660,000 10,742,500 $ 8,830 $ 8,794 |
Schedule of Number of Shares of Common Stock Reserved For Future Issuances | The Company has reserved the following number of shares of common stock for future issuances: December 31, 2017 Outstanding stock awards 1,593,568 Shares available for future issuance under the 2017 Stock Incentive Plan 3,933,649 Total common stock reserved for future issuances 5,527,217 |
Stock Award Plan (Tables)
Stock Award Plan (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Activity | The Company’s stock option activity is summarized as follows: Options Available for Grant Options Issued and Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) As of December 31, 2016 2,017,983 1,545,667 $ 0.81 8.2 $ 3,216 Authorized 2,500,000 — Granted (583,500 ) 583,500 $ 2.99 Exercised (1) — (506,433 ) $ 0.34 Canceled 49,166 (49,166 ) $ 0.41 As of December 31, 2017 3,983,649 1,573,568 $ 1.78 8.4 $ 24,556 Options vested and expected to vest as of December 31, 2017 1,573,568 $ 1.78 8.4 $ 24,556 Options vested and exercisable as of December 31, 2017 357,920 $ 1.42 7.9 $ 5,714 (1) Includes vesting of early-exercised options. |
Summary of Stock Options Outstanding and Exercisable by Exercise Price | The stock options outstanding and exercisable by exercise price at December 31, 2017, are as follows: Options Outstanding Options Vested and Exercisable Exercise Price Number Outstanding Weighted- Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number Vested and Exercisable Weighted- Average Exercise Price $ 0.10 14,167 5.6 $ 0.10 — $ — $ 0.16 128,750 6.1 $ 0.16 72,333 $ 0.16 $ 0.37 317,584 7.4 $ 0.37 64,500 $ 0.37 $ 0.97 263,833 8.2 $ 0.97 68,828 $ 0.97 $ 2.51 269,401 8.7 $ 2.51 95,626 $ 2.51 $ 2.89 52,000 9.2 $ 2.89 — $ — $ 2.93 372,833 9.4 $ 2.93 49,133 $ 2.93 $ 3.18 155,000 9.6 $ 3.18 7,500 $ 3.18 1,573,568 8.4 $ 1.78 357,920 $ 1.42 |
Summary of Restricted Stock Unit Activity | The Company’s restricted stock unit activity is summarized as follows: Number of Shares Weighted-Average Grant Date Fair Value As of December 31, 2016 30,000 $ 2.89 Granted 20,000 $ 19.42 Released (30,000 ) $ 2.89 Canceled — As of December 31, 2017 20,000 $ 19.42 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Distribution of Stock-Based Compensation Expense | The following table summarizes the distribution of stock-based compensation expense (in thousands): Year Ended December 31, 2017 2016 2015 Cost of revenue $ 31 $ 15 $ 7 Research and development 273 102 73 Selling, general and administrative 1,144 322 84 Total $ 1,448 $ 439 $ 164 |
Employee Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options | The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to determine fair value of stock awards: Year Ended December 31, 2017 2016 2015 Expected term (in years) 6.28 6.19 6.30 Risk-free interest rate 2.01 % 1.38 % 1.67 % Expected volatility 53 % 51 % 46 % Dividend rate 0 % 0 % 0 % Fair value of common stock $ 5.14 $ 2.35 $ 0.86 |
Non-Employee Stock Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options | The following table summarizes the weighted-average assumptions used in the Black-Scholes option-pricing model to determine fair value of stock awards: Year Ended December 31, 2017 2016 2015 Expected term (in years) 10.00 10.00 10.00 Risk-free interest rate 2.30 % 2.02 % 2.09 % Expected volatility 53 % 53 % 50 % Dividend rate 0 % 0 % 0 % Fair value of common stock $ 14.40 $ 2.68 $ 0.84 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income per share (amounts in thousands, except per share data): Year Ended December 31, 2017 2016 2015 Numerator: Basic: Net income $ 3,757 $ 3,481 $ 4,057 Net income allocable to preferred stockholders 1,936 2,627 3,170 Net income allocable to common stockholders 1,821 854 887 Diluted: Net income 3,757 3,481 4,057 Net income allocable to preferred stockholders 1,823 2,477 3,002 Net income allocable to common stockholders 1,934 1,004 1,055 Denominator: Basic shares: Weighted-average shares outstanding in computing basic net income per share allocable to common stockholders 7,145,641 3,493,946 3,007,311 Diluted shares: Effect of potentially dilutive securities: Stock options (1) 910,688 864,441 766,835 Weighted-average shares used in computing diluted net income per common share allocable to common stockholders 8,056,329 4,358,387 3,774,146 Net income per common share: Basic $ 0.25 $ 0.24 $ 0.30 Diluted $ 0.24 $ 0.23 $ 0.28 (1) Including early-exercised options. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The components of income before income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Domestic $ 6,141 $ 5,311 $ 3,888 Foreign 131 52 1 Income before income taxes $ 6,272 $ 5,363 $ 3,889 |
Schedule of Components of Provision For Income Taxes | The components of the provision for income taxes are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ 2,089 $ 2,034 $ 659 Foreign 55 40 1 State 1 1 1 Total Current 2,145 2,075 661 Deferred - net 370 (193 ) (829 ) Provision for income taxes $ 2,515 $ 1,882 $ (168 ) |
Schedule of Effective Tax Rate Differs from Applicable U.S Statutory Federal Income Tax Rates | The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows: Year Ended December 31, 2017 2016 2015 U.S. statutory federal taxes at statutory rate 34.00 % 34.00 % 34.00 % State taxes - net of federal benefit 0.01 0.01 0.01 Research and development benefit (1.72 ) (2.59 ) (4.08 ) Permanent items and other 0.94 2.55 0.55 Change in valuation allowance 1.78 1.12 (34.80 ) Tax rate change 5.06 — — Effective tax rate 40.07 % 35.09 % (4.32)% |
Schedule of Components of Net Deferred Tax Assets and Liabilities | The components of net deferred tax assets and liabilities are as follows: Year Ended December 31, 2017 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 85 $ 71 $ 71 Research and other credits 309 211 151 Accruals 243 464 192 Intangibles 323 574 623 Other 140 97 50 Total deferred tax assets 1,100 1,417 1,087 Deferred tax liabilities: Property and equipment - net (54 ) (113 ) (36 ) Total deferred tax liabilities (54 ) (113 ) (36 ) Valuation allowance (394 ) (282 ) (222 ) Deferred tax assets - net $ 652 $ 1,022 $ 829 |
Selected Quarterly Financial 28
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Consolidated Statements of Operations | The following table summarizes the Company’s unaudited consolidated statements of operations by quarter for the year ended December 31, 2017 and 2016. In the opinion of management, the accompanying unaudited consolidated statements of operations reflect all adjustments, which only include normal recurring adjustments, necessary to present fairly the Company’s results of operations in accordance with GAAP and are not necessarily indicative of the results to be expected for the full fiscal year or for any other future annual or interim periods. Three Months Ended Dec 31, 2017 Sept 30, 2017 June 30, 2017 March 31, 2017 Dec 31, 2016 Sept 30, 2016 June 30, 2016 March 31, 2016 Revenue $ 7,761 $ 8,112 $ 8,039 $ 7,230 $ 5,888 $ 7,628 $ 7,396 $ 6,244 Cost of revenue 3,473 3,427 3,369 2,952 2,899 3,388 3,683 2,765 Gross profit 4,288 4,685 4,670 4,278 2,989 4,240 3,713 3,479 Operating expenses Research and development 1,565 1,156 1,197 1,465 1,004 1,180 1,101 1,095 Selling, general and administrative 2,068 1,541 1,357 1,227 1,117 1,099 1,417 1,045 Total operating expenses 3,633 2,697 2,554 2,692 2,121 2,279 2,518 2,140 Income from operations 655 1,988 2,116 1,586 868 1,961 1,195 1,339 Other income (expense) (4 ) (59 ) (2 ) (8 ) (10 ) (1 ) 3 8 Income before income taxes 651 1,929 2,114 1,578 858 1,960 1,198 1,347 Income taxes 591 646 739 539 419 630 390 443 Net income $ 60 $ 1,283 $ 1,375 $ 1,039 $ 439 $ 1,330 $ 808 $ 904 Net income per share allocable to common stockholders: Basic $ — $ 0.09 $ 0.09 $ 0.07 $ 0.03 $ 0.09 $ 0.06 $ 0.06 Diluted $ — $ 0.08 $ 0.09 $ 0.07 $ 0.03 $ 0.09 $ 0.05 $ 0.06 |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | Oct. 25, 2017USD ($)$ / sharesshares | Sep. 29, 2017USD ($)$ / sharesshares | Dec. 31, 2017USD ($)CustomerSubcontractor | Dec. 31, 2016USD ($)Customer | Dec. 31, 2015Customer |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Net proceeds from initial public offering | $ 9,339 | ||||
Number of dependent subcontractors for production requirements | Subcontractor | 3 | ||||
Inventories written down | $ 400 | $ 800 | |||
Standard product warranty period | 1 year | ||||
Minimum | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Tax position recognition of benefit percentage, realized upon settlement | 50.00% | ||||
Minimum | Computer Equipment | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Estimated useful lives of property and equipment | 2 years | ||||
Minimum | Furniture | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Estimated useful lives of property and equipment | 2 years | ||||
Minimum | Leasehold Improvements | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Estimated useful lives of property and equipment | 2 years | ||||
Maximum | Computer Equipment | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Estimated useful lives of property and equipment | 3 years | ||||
Maximum | Furniture | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Estimated useful lives of property and equipment | 3 years | ||||
Maximum | Leasehold Improvements | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Estimated useful lives of property and equipment | 3 years | ||||
Customer and Distributor | Sales Revenue, Net | Customer Concentration Risk | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk, percentage | 74.00% | 85.00% | 82.00% | ||
Number of major customers comprising more than ten percent of revenues | Customer | 1 | 1 | 1 | ||
End Customers | Sales Revenue, Net | Customer Concentration Risk | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Concentration risk, percentage | 59.00% | 62.00% | 78.00% | ||
Number of major customers comprising more than ten percent of revenues | Customer | 1 | 1 | 1 | ||
Initial Public Offering | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Initial public offering, price per share | $ / shares | $ 5.85 | ||||
Net proceeds from initial public offering | $ 8,100 | ||||
Underwriting discounts and commissions | 700 | ||||
Offering costs | $ 3,000 | ||||
Preferred stock, conversion basis | one-to-one basis | ||||
Japanese Depositary Shares | Initial Public Offering | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Initial public offering, shares of common stock sold | shares | 1,520,000 | ||||
Initial public offering, price per share | $ / shares | $ 5.85 | ||||
Net proceeds from initial public offering | $ 1,200 | ||||
Underwriting discounts and commissions | $ 100 | ||||
Additional Shares of Common Stock Issued | shares | 228,000 | ||||
California | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Company original incorporation date of incorporation | 2012-04 | ||||
Company Incorporation place | California | ||||
Delaware | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Company Incorporation place | Delaware | ||||
Company reincorporation incorporation date of incorporation | 2017-07 |
Balance Sheet Components - Comp
Balance Sheet Components - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Finished goods | $ 1,633 | $ 1,741 |
Work in process | 1,214 | 842 |
Total inventory | $ 2,847 | $ 2,583 |
Balance Sheet Components - Co31
Balance Sheet Components - Components of Property and Equipment - Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 776 | $ 664 |
Less: accumulated depreciation | (451) | (263) |
Total property and equipment - net | 325 | 401 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 687 | 605 |
Furniture | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 30 | 37 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 59 | $ 22 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation expense | $ 200 | $ 200 |
Payments received in advance of shipments | $ 6 | $ 745 |
Balance Sheet Components - Co33
Balance Sheet Components - Components of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Balance Sheet Related Disclosures [Abstract] | ||
Payroll-related expenses | $ 291 | $ 144 |
Engineering services | 131 | 110 |
Accrued warranty | 73 | 83 |
Taxes payable | 37 | 27 |
Professional fees | 23 | 95 |
Other | 18 | 22 |
Total accrued liabilities | $ 573 | $ 481 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value Measurements Recurring - Money Market Funds - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Money market funds | $ 6,951 | $ 4,932 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Money market funds | $ 6,951 | $ 4,932 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Number of operating segments | 1 |
Segment Information - Schedule
Segment Information - Schedule of Product Revenue from Customers by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | $ 7,761 | $ 8,112 | $ 8,039 | $ 7,230 | $ 5,888 | $ 7,628 | $ 7,396 | $ 6,244 | $ 31,142 | $ 27,156 | $ 20,245 |
China | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 26,453 | 23,815 | 17,637 | ||||||||
South Korea | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 2,857 | 1,600 | 1,470 | ||||||||
Taiwan | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | 821 | 1,214 | 1,128 | ||||||||
Other | |||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||||||||
Revenue | $ 1,011 | $ 527 | $ 10 |
Segment Information - Schedul37
Segment Information - Schedule of Revenue by Principal Product Lines (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenue | $ 7,761 | $ 8,112 | $ 8,039 | $ 7,230 | $ 5,888 | $ 7,628 | $ 7,396 | $ 6,244 | $ 31,142 | $ 27,156 | $ 20,245 |
Security Surveillance | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenue | 28,143 | 26,531 | 20,237 | ||||||||
Automotive | |||||||||||
Entity Wide Information Revenue From External Customer [Line Items] | |||||||||||
Revenue | $ 2,999 | $ 625 | $ 8 |
Segment Information - Schedul38
Segment Information - Schedule of Net Long-Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment - net | $ 325 | $ 401 |
Taiwan | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment - net | 205 | 255 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment - net | 92 | 83 |
Japan | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment - net | 16 | 39 |
China | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment - net | 9 | 19 |
South Korea | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment - net | $ 3 | $ 5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Litigation | Dec. 31, 2016USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | ||
Non-cancellable operating lease agreements, expiration description | non-cancellable lease agreements expiring through fiscal year 2020. | |
Rent expense under operating leases | $ 0.5 | $ 0.4 |
Future minimum payments under purchase commitments for year ending December 31, 2018 | $ 0.1 | |
Number of litigation | Litigation | 0 |
Commitments and Contingencies40
Commitments and Contingencies - Schedule of Aggregate Future Minimum Lease Payments Under Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 469 |
2,019 | 520 |
2,020 | 60 |
Total | $ 1,049 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Preferred Stock Outstanding (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Class Of Stock [Line Items] | |
Preferred Stock, Shares Authorized | 11,660,000 |
Preferred Stock, Shares Issued | 10,742,500 |
Preferred Stock, Shares Outstanding | 10,742,500 |
Preferred Stock, Aggregate Liquidation Value | $ | $ 8,830 |
Preferred Stock, Carrying Value | $ | $ 8,794 |
Series Seed Convertible Preferred Stock | |
Class Of Stock [Line Items] | |
Preferred Stock, Period Issued | 2012-07 |
Preferred Stock, Price Per Share | $ / shares | $ 0.25 |
Preferred Stock, Shares Authorized | 4,660,000 |
Preferred Stock, Shares Issued | 4,660,000 |
Preferred Stock, Shares Outstanding | 4,660,000 |
Preferred Stock, Aggregate Liquidation Value | $ | $ 1,165 |
Preferred Stock, Carrying Value | $ | $ 1,156 |
Series A Convertible Preferred Stock | |
Class Of Stock [Line Items] | |
Preferred Stock, Period Issued Start | 2012-11 |
Preferred Stock, Period Issued End | 2013-06 |
Preferred Stock, Price Per Share | $ / shares | $ 1 |
Preferred Stock, Shares Authorized | 4,500,000 |
Preferred Stock, Shares Issued | 4,500,000 |
Preferred Stock, Shares Outstanding | 4,500,000 |
Preferred Stock, Aggregate Liquidation Value | $ | $ 4,500 |
Preferred Stock, Carrying Value | $ | $ 4,477 |
Series B Convertible Preferred Stock | |
Class Of Stock [Line Items] | |
Preferred Stock, Period Issued Start | 2014-06 |
Preferred Stock, Period Issued End | 2014-10 |
Preferred Stock, Price Per Share | $ / shares | $ 2 |
Preferred Stock, Shares Authorized | 2,500,000 |
Preferred Stock, Shares Issued | 1,582,500 |
Preferred Stock, Shares Outstanding | 1,582,500 |
Preferred Stock, Aggregate Liquidation Value | $ | $ 3,165 |
Preferred Stock, Carrying Value | $ | $ 3,161 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||
Preferred stock, shares authorized | 11,660,000 | |
Preferred stock, shares issued | 10,742,500 | |
Preferred stock, shares outstanding | 10,742,500 | |
Common stock shares authorized | 75,000,000 | |
Common stock par value | $ 0.0001 | |
Common stock shares issued | 16,752,171 | |
Common stock shares outstanding | 16,752,171 | |
Common stock issued subject to repurchase related to early exercise of options | 289,334 | |
Convertible Preferred Stock | ||
Class Of Stock [Line Items] | ||
Preferred stock, conversion basis | one-for-one | |
Preferred Stock, Par Value | ||
Class Of Stock [Line Items] | ||
Preferred stock, shares authorized | 5,000,000 | |
Preferred stock, par value | $ 0.0001 |
Stockholders' Equity - Schedu43
Stockholders' Equity - Schedule of Number of Shares of Common Stock Reserved for Future Issuances (Details) | Dec. 31, 2017shares |
Class Of Stock [Line Items] | |
Common stock reserved for future issuances | 5,527,217 |
Outstanding Stock Awards | |
Class Of Stock [Line Items] | |
Common stock reserved for future issuances | 1,593,568 |
Shares Available for Future Issuance under 2017 Stock Incentive Plan | |
Class Of Stock [Line Items] | |
Common stock reserved for future issuances | 3,933,649 |
Stock Award Plan - Additional I
Stock Award Plan - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017shares | Apr. 30, 2012 | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved for future issuances | 5,527,217 | |||
Number of unvested shares of common stock issued | 46,667 | 302,083 | ||
Proceeds from unvested shares of common stock issued | $ | $ 46,000 | $ 113,000 | ||
Number of shares of unvested common stock repurchased | 45,666 | 37,167 | ||
Number of shares subject to repurchase | 289,334 | 606,833 | ||
Aggregate price of shares held subject to repurchase | $ | $ 200,000 | $ 200,000 | ||
Share-based compensation arrangement by share-based payment award, aggregate intrinsic value of options exercised | $ | $ 1,800,000 | $ 800,000 | ||
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, options vesting period | 5 years | |||
Share-based compensation arrangement by share-based payment award, stock awards conversion ratio | 1 | |||
2012 Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, options vesting term of award | The 2012 Plan provides for the granting of stock-based awards to employees, directors, and consultants under terms and provisions established by the Company’s board of directors. Under the terms of the 2012 Plan, options may be granted at an exercise price not less than fair market value. For employees holding more than 10% of the voting rights of all classes of stock, the exercise prices for incentive and nonstatutory stock options must be at least 110% of the fair market value of the common stock on the grant date, as determined by the Company’s board of directors. The terms of options granted under the 2012 Plan may not exceed ten years. | |||
Share-based compensation arrangement by share-based payment award, additional awards | 0 | |||
Common stock reserved for future issuances | 0 | |||
Share-based compensation arrangement by share-based payment award, shares reserved but not issued | 1,453,649 | |||
2012 Stock Option Plan | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, percentage of voting rights of all classes of stock to be owned by employees to determine stock options exercise price on grant date | 10.00% | |||
Share-based compensation arrangement by share-based payment award, exercise prices percentage of fair market of common stock on grant date | 110.00% | |||
2012 Stock Option Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, Options exercisable period | 10 years | |||
2017 Stock Option Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, options vesting term of award | Options granted generally vest over a five-year period and generally are exercisable up to 10 years. | |||
Common stock reserved for future issuances | 3,933,649 | |||
Share based compensation arrangement by share based payment award number of shares authorized increment description | The number of shares that have been authorized for issuance under the 2017 Plan will be automatically increased on the first day of each fiscal year beginning on January 1, 2018 and ending on (and including) January 1, 2027, in an amount equal to the lesser of (1) 4% of the outstanding shares of our common stock on the last day of the immediately preceding fiscal year, or (2) another amount determined by the Company’s board of directors. | |||
Automatic increase in number of shares authorized under stock option plan, start date | Jan. 1, 2018 | |||
Automatic increase in number of shares authorized under stock option plan, end date | Jan. 1, 2027 | |||
Share-based compensation arrangement by share-based payment award, options vesting period | 5 years | |||
2017 Stock Option Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, Options exercisable period | 10 years | |||
Share-based compensation arrangement by share-based payment award, percentage of annual increase in number of shares authorized of outstanding shares of common stock | 4.00% |
Stock Award Plan - Summary of S
Stock Award Plan - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options Available for Grant, Beginning balance | 2,017,983 | |
Options Available for Grant, Authorized | 2,500,000 | |
Options Available for Grant, Granted | (583,500) | |
Options Available for Grant, Canceled | 49,166 | |
Options Available for Grant, Ending balance | 3,983,649 | 2,017,983 |
Options Issued and Outstanding, Beginning balance | 1,545,667 | |
Options Issued and Outstanding, Granted | 583,500 | |
Options Issued and Outstanding, Exercised | (506,433) | |
Options Issued and Outstanding, Canceled | (49,166) | |
Options Issued and Outstanding, Ending balance | 1,573,568 | 1,545,667 |
Options Issued and Outstanding, Options vested and expected to vest | 1,573,568 | |
Options Issued and Outstanding, Options vested and exercisable | 357,920 | |
Weighted Average Exercise Price, Beginning balance | $ 0.81 | |
Weighted Average Exercise Price, Granted | 2.99 | |
Weighted Average Exercise Price, Exercised | 0.34 | |
Weighted Average Exercise Price, Canceled | 0.41 | |
Weighted Average Exercise Price, Ending balance | 1.78 | $ 0.81 |
Weighted Average Exercise Price, Options vested and expected to vest | 1.78 | |
Weighted Average Exercise Price, Options vested and exercisable | $ 1.42 | |
Weighted-Average Remaining Contractual Term | 8 years 4 months 24 days | 8 years 2 months 12 days |
Weighted-Average Remaining Contractual Term, Options vested and expected to vest | 8 years 4 months 24 days | |
Weighted-Average Remaining Contractual Term, Options vested and exercisable | 7 years 10 months 24 days | |
Aggregate Intrinsic Value | $ 24,556 | $ 3,216 |
Aggregate Intrinsic Value, Options vested and expected to vest | 24,556 | |
Aggregate Intrinsic Value, Options vested and exercisable | $ 5,714 |
Stock Award Plan - Summary of46
Stock Award Plan - Summary of Stock Options Outstanding and Exercisable by Exercise Price (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Options Outstanding, Number Outstanding | 1,573,568 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 8 years 4 months 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 1.78 | $ 0.81 |
Options Vested and Exercisable, Number Vested and Exercisable | 357,920 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 1.42 | |
Exercise Price 0.10 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 0.10 | |
Options Outstanding, Number Outstanding | 14,167 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 5 years 7 months 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 0.10 | |
Exercise Price 0.16 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 0.16 | |
Options Outstanding, Number Outstanding | 128,750 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 6 years 1 month 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 0.16 | |
Options Vested and Exercisable, Number Vested and Exercisable | 72,333 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 0.16 | |
Exercise Price 0.37 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 0.37 | |
Options Outstanding, Number Outstanding | 317,584 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 7 years 4 months 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 0.37 | |
Options Vested and Exercisable, Number Vested and Exercisable | 64,500 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 0.37 | |
Exercise Price 0.97 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 0.97 | |
Options Outstanding, Number Outstanding | 263,833 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 8 years 2 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 0.97 | |
Options Vested and Exercisable, Number Vested and Exercisable | 68,828 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 0.97 | |
Exercise Price 2.51 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 2.51 | |
Options Outstanding, Number Outstanding | 269,401 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 8 years 8 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 2.51 | |
Options Vested and Exercisable, Number Vested and Exercisable | 95,626 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 2.51 | |
Exercise Price 2.89 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 2.89 | |
Options Outstanding, Number Outstanding | 52,000 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 9 years 2 months 12 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 2.89 | |
Exercise Price 2.93 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 2.93 | |
Options Outstanding, Number Outstanding | 372,833 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 9 years 4 months 24 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 2.93 | |
Options Vested and Exercisable, Number Vested and Exercisable | 49,133 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 2.93 | |
Exercise Price 3.18 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Exercise Price | $ 3.18 | |
Options Outstanding, Number Outstanding | 155,000 | |
Options Outstanding, Weighted-Average Remaining Contractual Life (Years) | 9 years 7 months 6 days | |
Options Outstanding, Weighted-Average Exercise Price | $ 3.18 | |
Options Vested and Exercisable, Number Vested and Exercisable | 7,500 | |
Options Vested and Exercisable, Weighted-Average Exercise Price | $ 3.18 |
Stock Award Plan - Summary of R
Stock Award Plan - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Beginning balance | shares | 30,000 |
Number of Shares, Granted | shares | 20,000 |
Number of Shares, Released | shares | (30,000) |
Number of Shares, Ending balance | shares | 20,000 |
Weighted-Average Grant Date Fair Value, Beginning balance | $ / shares | $ 2.89 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | 19.42 |
Weighted-Average Grant Date Fair Value, Released | $ / shares | 2.89 |
Weighted-Average Grant Date Fair Value, Ending balance | $ / shares | $ 19.42 |
Stock-Based Compensation - Dist
Stock-Based Compensation - Distribution of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Expense [Line Items] | |||
Stock-based compensation | $ 1,448 | $ 439 | $ 164 |
Cost of Revenue | |||
Share Based Compensation Expense [Line Items] | |||
Stock-based compensation | 31 | 15 | 7 |
Research and Development | |||
Share Based Compensation Expense [Line Items] | |||
Stock-based compensation | 273 | 102 | 73 |
Selling, General and Administrative | |||
Share Based Compensation Expense [Line Items] | |||
Stock-based compensation | $ 1,144 | $ 322 | $ 84 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Employee Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Share-based compensation arrangement by share-based payment award, weighted-average grant date fair value | $ 3.71 | $ 1.36 | $ 0.53 |
Remaining unrecognized stock-based compensation expense | $ 2.3 | $ 0.8 | |
Unrecognized stock-based compensation expense will be recognized over a weighted-average remaining period | 3 years 8 months 12 days | 3 years 8 months 12 days | |
Non-Employee Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Share-based compensation arrangement by share-based payment award, weighted-average grant date fair value | $ 7.34 | $ 2.16 | $ 0.53 |
Remaining unrecognized stock-based compensation expense | $ 0.3 | $ 0.2 | |
Unrecognized stock-based compensation expense will be recognized over a weighted-average remaining period | 1 year 10 months 24 days | 4 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Weighted-Average Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Dividend rate | 0.00% | ||
Employee Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 3 months 10 days | 6 years 2 months 8 days | 6 years 3 months 18 days |
Risk-free interest rate | 2.01% | 1.38% | 1.67% |
Expected volatility | 53.00% | 51.00% | 46.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Fair value of common stock | $ 5.14 | $ 2.35 | $ 0.86 |
Non-Employee Stock Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 10 years | 10 years | 10 years |
Risk-free interest rate | 2.30% | 2.02% | 2.09% |
Expected volatility | 53.00% | 53.00% | 50.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Fair value of common stock | $ 14.40 | $ 2.68 | $ 0.84 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2017shares | Dec. 31, 2016shares | Dec. 31, 2015shares | |
Earnings Per Share [Abstract] | |||
Convertible preferred stock, terms of conversion | Prior to the closing of the Company’s IPO, all outstanding shares of its Series Seed, Series A, and Series B convertible preferred shares, which were participating securities, were converted to common stock on a one-to-one basis. | ||
Preferred stock convertible conversion ratio | 1 | ||
Common stock issued for conversion of preferred shares | 10,742,500 | ||
Antidilutive securities excluded from computation of earnings per share amount | 7,000 | 56,000 | 39,000 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic: | |||||||||||
Net income | $ 60 | $ 1,283 | $ 1,375 | $ 1,039 | $ 439 | $ 1,330 | $ 808 | $ 904 | $ 3,757 | $ 3,481 | $ 4,057 |
Net income allocable to preferred stockholders | 1,936 | 2,627 | 3,170 | ||||||||
Net income allocable to common stockholders | 1,821 | 854 | 887 | ||||||||
Diluted: | |||||||||||
Net income | $ 60 | $ 1,283 | $ 1,375 | $ 1,039 | $ 439 | $ 1,330 | $ 808 | $ 904 | 3,757 | 3,481 | 4,057 |
Net income allocable to preferred stockholders | 1,823 | 2,477 | 3,002 | ||||||||
Net income allocable to common stockholders | $ 1,934 | $ 1,004 | $ 1,055 | ||||||||
Denominator: | |||||||||||
Weighted-average shares outstanding in computing basic net income per share allocable to common stockholders | 7,145,641 | 3,493,946 | 3,007,311 | ||||||||
Effect of potentially dilutive securities: | |||||||||||
Stock options | 910,688 | 864,441 | 766,835 | ||||||||
Weighted-average shares used in computing diluted net income per common share allocable to common stockholders | 8,056,329 | 4,358,387 | 3,774,146 | ||||||||
Net income per common share: | |||||||||||
Basic | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.09 | $ 0.06 | $ 0.06 | $ 0.25 | $ 0.24 | $ 0.30 | |
Diluted | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.09 | $ 0.05 | $ 0.06 | $ 0.24 | $ 0.23 | $ 0.28 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 6,141 | $ 5,311 | $ 3,888 | ||||||||
Foreign | 131 | 52 | 1 | ||||||||
Income before income taxes | $ 651 | $ 1,929 | $ 2,114 | $ 1,578 | $ 858 | $ 1,960 | $ 1,198 | $ 1,347 | $ 6,272 | $ 5,363 | $ 3,889 |
Income Taxes - Schedule of Co54
Income Taxes - Schedule of Components of Provision For Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||||||||||
Federal | $ 2,089 | $ 2,034 | $ 659 | ||||||||
Foreign | 55 | 40 | 1 | ||||||||
State | 1 | 1 | 1 | ||||||||
Total Current | 2,145 | 2,075 | 661 | ||||||||
Deferred income taxes | 370 | (193) | (829) | ||||||||
Provision for income taxes | $ 591 | $ 646 | $ 739 | $ 539 | $ 419 | $ 630 | $ 390 | $ 443 | $ 2,515 | $ 1,882 | $ (168) |
Inocme Taxes - Schedule of Effe
Inocme Taxes - Schedule of Effective Tax Rate Differs from Applicable U.S Statutory Federal Income Tax Rates (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
U.S. statutory federal taxes at statutory rate | 34.00% | 34.00% | 34.00% |
State taxes - net of federal benefit | 0.01% | 0.01% | 0.01% |
Research and development benefit | (1.72%) | (2.59%) | (4.08%) |
Permanent items and other | 0.94% | 2.55% | 0.55% |
Change in valuation allowance | 1.78% | 1.12% | (34.80%) |
Tax rate change | 5.06% | ||
Effective tax rate | 40.07% | 35.09% | (4.32%) |
Income Taxes - Schedule of Co56
Income Taxes - Schedule of Components of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | |||
Net operating loss carryforwards | $ 85 | $ 71 | $ 71 |
Research and other credits | 309 | 211 | 151 |
Accruals | 243 | 464 | 192 |
Intangibles | 323 | 574 | 623 |
Other | 140 | 97 | 50 |
Total deferred tax assets | 1,100 | 1,417 | 1,087 |
Deferred tax liabilities: | |||
Property and equipment - net | (54) | (113) | (36) |
Total deferred tax liabilities | (54) | (113) | (36) |
Valuation allowance | (394) | (282) | (222) |
Deferred tax assets - net | $ 652 | $ 1,022 | $ 829 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||
Corporate tax rate, percentage | 34.00% | 34.00% | 34.00% | |
Decrease in net deferred tax assets | $ 300,000 | |||
Deferred tax assets | 1,000,000 | |||
Deferred tax assets, net | 700,000 | |||
Liabilities for repatriation of foreign income and taxes | 35,000 | |||
Foreign income from foreign subsidiaries offset with foreign tax credit. | 34,000 | |||
Unrecognized tax benefits | 200,000 | $ 200,000 | ||
State Income Tax Purposes | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 1,200,000 | 1,200,000 | ||
Operating loss, carryforwards expiration year | 2,032 | |||
Credit carryforwards, amount | $ 500,000 | 400,000 | ||
Federal Income Tax Purposes | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 0 | 0 | ||
Credit carryforwards, amount | $ 0 | $ 0 | ||
Scenario Forecast | ||||
Income Tax [Line Items] | ||||
Corporate tax rate, percentage | 21.00% | |||
Maximum | ||||
Income Tax [Line Items] | ||||
Measurement period for completion of certain income tax effects from act of enactment date | 1 year |
Selected Quarterly Financial 58
Selected Quarterly Financial Data (Unaudited) - Summary of Unaudited Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 7,761 | $ 8,112 | $ 8,039 | $ 7,230 | $ 5,888 | $ 7,628 | $ 7,396 | $ 6,244 | $ 31,142 | $ 27,156 | $ 20,245 |
Cost of revenue | 3,473 | 3,427 | 3,369 | 2,952 | 2,899 | 3,388 | 3,683 | 2,765 | 13,221 | 12,735 | 8,803 |
Gross profit | 4,288 | 4,685 | 4,670 | 4,278 | 2,989 | 4,240 | 3,713 | 3,479 | 17,921 | 14,421 | 11,442 |
Operating expenses | |||||||||||
Research and development | 1,565 | 1,156 | 1,197 | 1,465 | 1,004 | 1,180 | 1,101 | 1,095 | 5,383 | 4,380 | 4,964 |
Selling, general and administrative | 2,068 | 1,541 | 1,357 | 1,227 | 1,117 | 1,099 | 1,417 | 1,045 | 6,193 | 4,678 | 2,592 |
Total operating expenses | 3,633 | 2,697 | 2,554 | 2,692 | 2,121 | 2,279 | 2,518 | 2,140 | 11,576 | 9,058 | 7,556 |
Income from operations | 655 | 1,988 | 2,116 | 1,586 | 868 | 1,961 | 1,195 | 1,339 | 6,345 | 5,363 | 3,886 |
Other income (expense) | (4) | (59) | (2) | (8) | (10) | (1) | 3 | 8 | (73) | 3 | |
Income before income taxes | 651 | 1,929 | 2,114 | 1,578 | 858 | 1,960 | 1,198 | 1,347 | 6,272 | 5,363 | 3,889 |
Income taxes | 591 | 646 | 739 | 539 | 419 | 630 | 390 | 443 | 2,515 | 1,882 | (168) |
Net income | $ 60 | $ 1,283 | $ 1,375 | $ 1,039 | $ 439 | $ 1,330 | $ 808 | $ 904 | $ 3,757 | $ 3,481 | $ 4,057 |
Net income per share allocable to common stockholders: | |||||||||||
Basic | $ 0.09 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.09 | $ 0.06 | $ 0.06 | $ 0.25 | $ 0.24 | $ 0.30 | |
Diluted | $ 0.08 | $ 0.09 | $ 0.07 | $ 0.03 | $ 0.09 | $ 0.05 | $ 0.06 | $ 0.24 | $ 0.23 | $ 0.28 |