Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40960 | |
Entity Registrant Name | Arteris, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0117058 | |
Entity Address, Address Line One | 900 E. Hamilton Ave. | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Campbell | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95008 | |
City Area Code | 408 | |
Local Phone Number | 470-7300 | |
Title of 12(b) Security | Common stock, $0.001 par value | |
Trading Symbol | AIP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,479,122 | |
Entity Central Index Key | 0001667011 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 26,119 | $ 13,696 |
Short-term investments (Note 5) | 18,695 | 27,477 |
Accounts receivable, net of allowance of $93 as of both March 31, 2024 and December 31, 2023 | 12,265 | 12,003 |
Prepaid expenses and other current assets | 4,718 | 5,254 |
Total current assets | 61,797 | 58,430 |
Property and equipment, net | 5,244 | 5,745 |
Long-term investments (Note 5) | 8,602 | 11,802 |
Equity method investment | 7,741 | 8,500 |
Operating lease right-of-use assets | 4,060 | 4,289 |
Intangibles, net | 3,662 | 3,858 |
Goodwill | 4,178 | 4,178 |
Other assets | 6,070 | 5,999 |
TOTAL ASSETS | 101,354 | 102,801 |
Current liabilities: | ||
Accounts payable | 754 | 183 |
Accrued expenses and other current liabilities | 12,659 | 11,831 |
Operating lease liabilities, current | 858 | 781 |
Deferred revenue, current | 33,558 | 31,537 |
Vendor financing arrangements, current | 1,987 | 2,070 |
Total current liabilities | 49,816 | 46,402 |
Deferred revenue, noncurrent | 26,559 | 25,172 |
Operating lease liabilities, noncurrent | 3,333 | 3,610 |
Vendor financing arrangements, noncurrent | 1,094 | 1,292 |
Deferred income, noncurrent | 8,520 | 8,810 |
Other liabilities | 2,486 | 2,412 |
Total liabilities | 91,808 | 87,698 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock, par value of $0.001 - 10,000,000 shares authorized as of both March 31, 2024 and December 31, 2023; no shares issued and outstanding as of both March 31, 2024 and December 31, 2023 | 0 | 0 |
Common stock, par value of $0.001 - 300,000,000 shares authorized as of both March 31, 2024 and December 31, 2023; 38,291,425 and 37,518,583 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 38 | 37 |
Additional paid-in capital | 122,104 | 118,193 |
Accumulated other comprehensive income | 54 | 120 |
Accumulated deficit | (112,650) | (103,247) |
Total stockholders' equity | 9,546 | 15,103 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 101,354 | $ 102,801 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Stockholders' equity: | ||
Accounts receivable, allowance | $ 93 | $ 93 |
Preferred stock, par or stated value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, issued (in shares) | 38,291,425 | 37,518,583 |
Common stock, outstanding (in shares) | 38,291,425 | 37,518,583 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Total revenue | $ 12,947 | $ 13,154 |
Cost of revenue | 1,468 | 1,124 |
Gross profit | 11,479 | 12,030 |
Operating expenses: | ||
Research and development | 10,835 | 11,381 |
Sales and marketing | 5,456 | 5,005 |
General and administrative | 4,322 | 4,401 |
Total operating expenses | 20,613 | 20,787 |
Loss from operations | (9,134) | (8,757) |
Interest expense | (76) | (32) |
Other income (expense), net | 936 | 908 |
Loss before income taxes and loss from equity method investment | (8,274) | (7,881) |
Loss from equity method investment | 759 | 834 |
Provision for income taxes | 370 | 295 |
Net loss | $ (9,403) | $ (9,010) |
Net loss per share attributable to common stockholders | ||
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.25) | $ (0.26) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.25) | $ (0.26) |
Weighted average shares used in computing per share amounts | ||
Weighted average shares used in computing per share amounts, basic (in shares) | 37,709,058 | 34,597,839 |
Weighted average shares used in computing per share amounts, basic (in shares) | 37,709,058 | 34,597,839 |
Licensing, support and maintenance | ||
Revenue | ||
Total revenue | $ 11,739 | $ 11,844 |
Variable royalties and other | ||
Revenue | ||
Total revenue | $ 1,208 | $ 1,310 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (9,403) | $ (9,010) |
Other comprehensive loss: | ||
Unrealized (losses) gains on available-for-sale securities, net of tax | (66) | 11 |
Comprehensive loss | $ (9,469) | $ (8,999) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 34,625,875 | ||||
Balance at beginning of period at Dec. 31, 2022 | $ 37,535 | $ 34 | $ 103,778 | $ 101 | $ (66,378) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 397,697 | ||||
Issuance of common stock upon exercise of stock options | 261 | $ 1 | 260 | ||
Issuance of common stock for settlement RSUs (in shares) | 277,149 | ||||
Tax withholding on RSUs settlement (in shares) | (2,498) | ||||
Tax withholding on RSUs settlement | (14) | (14) | |||
Stock-based compensation expense | 2,985 | 2,985 | |||
Unrealized (losses) gains on available-for-sale securities, net of tax | 11 | 11 | |||
Net loss | (9,010) | (9,010) | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 35,298,223 | ||||
Balance at end of period at Mar. 31, 2023 | $ 31,768 | $ 35 | 107,009 | 112 | (75,388) |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 37,518,583 | 37,518,583 | |||
Balance at beginning of period at Dec. 31, 2023 | $ 15,103 | $ 37 | 118,193 | 120 | (103,247) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options (in shares) | 246,692 | ||||
Issuance of common stock upon exercise of stock options | 255 | 255 | |||
Issuance of common stock for settlement RSUs (in shares) | 526,150 | ||||
Issuance of common stock for settlement of Restricted Stock Units (RSUs) | 0 | $ 1 | (1) | ||
Stock-based compensation expense | 3,657 | 3,657 | |||
Unrealized (losses) gains on available-for-sale securities, net of tax | (66) | (66) | |||
Net loss | $ (9,403) | (9,403) | |||
Balance at end of period (in shares) at Mar. 31, 2024 | 38,291,425 | 38,291,425 | |||
Balance at end of period at Mar. 31, 2024 | $ 9,546 | $ 38 | $ 122,104 | $ 54 | $ (112,650) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (9,403) | $ (9,010) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 833 | 601 |
Stock-based compensation | 3,657 | 2,985 |
Amortization of deferred income | (294) | (291) |
Loss from equity method investment | 759 | 834 |
Net accretion of discounts on available-for-sale securities | (181) | (259) |
Other, net | 31 | 27 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (262) | (2,607) |
Prepaid expenses and other assets | 479 | 364 |
Accounts payable | 546 | 555 |
Accrued expenses and other liabilities | 904 | (974) |
Deferred revenue | 3,408 | (614) |
Net cash provided by (used in) operating activities | 477 | (8,389) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (196) | (120) |
Purchases of available-for-sale securities and other | (3,421) | (4,909) |
Proceeds from maturities of available-for-sale securities and other | 15,519 | 5,450 |
Net cash provided by investing activities | 11,902 | 421 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments of contingent consideration for business combination | 0 | (1,000) |
Principal payments under vendor financing arrangements | (197) | (192) |
Proceeds from exercise of stock options | 241 | 256 |
Payments to tax authorities for shares withheld from employees | 0 | (14) |
Net cash provided by (used in) financing activities | 44 | (950) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12,423 | (8,918) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 14,084 | 37,423 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 26,507 | 28,505 |
Cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 26,119 | 28,505 |
Restricted cash, noncurrent | 388 | 0 |
Noncash activities: | ||
Operating lease right-of-use assets, exchanged for lease obligations | $ 0 | $ 297 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Arteris, Inc. was incorporated in Delaware on April 12, 2004. Arteris, Inc. and its subsidiaries (collectively, the Company or Arteris) develop, license, and support the on-chip interconnect fabric technology used in System-on-Chip (SoC) designs for a variety of devices and in the development and distribution of Network-on-Chip (NoC) interconnect intellectual property (IP). The Company also provides software and services to enable efficient deployment of NoC IP, IP support & maintenance services, professional services and training and on-site support services. The Company is headquartered in Campbell, California and has offices in the United States, France, Japan, South Korea and China. |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and the related notes included in the Company’s Form 10-K filed on February 20, 2024 (2023 Form 10-K) with the U.S. Securities and Exchange Commission (SEC). The December 31, 2023 condensed consolidated balance sheet was derived from the audited consolidated financial statements as of that date. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the unaudited condensed consolidated financial statements. The operating results for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year or any other future interim or annual period. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Arteris, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of the unaudited condensed 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 liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to, among others, revenue recognition, the useful lives of assets, assessment of recoverability of property, plant and equipment, fair value of investments, impairment of the equity method investment, fair values of goodwill and other intangible assets, including impairments, leases, allowances for doubtful accounts, deferred tax assets and related valuation allowance, stock-based compensation, potential reserves relating to litigation and tax matters, collectability of certain receivables, fair value and amortization of deferred income, as well as other accruals or reserves. Actual results could differ from those estimates and such differences may be material to the unaudited condensed consolidated financial statements. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company’s cash equivalents include deposits in money market accounts which were unrestricted as to withdrawal or use and are stated at fair value. As of March 31, 2024, cash and cash equivalents consisted primarily of checking, savings, money market accounts and highly liquid investments with original maturities of three months or less. Interest earned on cash and cash equivalents is included in other income (expense), net in the unaudited consolidated statements of loss. As of both March 31, 2024 and December 31, 2023, the Company’s long-term restricted cash balance was $0.4 million, primarily related to a letter of credit for its facility lease agreement. Restricted cash, noncurrent is included in other assets on the unaudited condensed consolidated balance sheets. Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash and cash equivalents, investments and accounts receivable. Cash is currently held in three financial institutions that the Company believes are creditworthy. Cash held at these financial institutions generally exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institution holding its cash, cash equivalents, and investments to the extent recorded in the balance sheet. The Company has not experienced any losses to date related to these concentrations. The Company’s accounts receivable are derived principally from revenue earned from customers located in Americas, Europe, Middle East and Asia Pacific regions. Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable was as follows: As of March 31, December 31, Customer A 30 % — % Customer B 16 % 15 % Customer C * 26 % * Customer accounted for less than 10% of total accounts receivable at period end. Revenue from the Company’s major customers representing 10% or more of total revenue was as follows: Three Months Ended 2024 2023 Customer B 14 % 10 % Customer D * 11 % * Customer accounted for less than 10% of total revenue during the period. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies during the three months ended March 31, 2024 from those disclosed in the annual consolidated financial statements for the year ended December 31, 2023. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which amends the guidance in ASC 740, Income Taxes. This ASU is intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024. Adoption is either prospectively or retrospectively, the Company will adopt this ASU on a prospective basis. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregated Revenue The following table shows revenue by product and services groups (in thousands): Three Months Ended 2024 2023 Licensing, support and maintenance $ 11,739 $ 11,844 Variable royalties 818 1,290 Other 390 20 Total $ 12,947 $ 13,154 Contract Balances The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands): As of March 31, December 31, Accounts receivable, net $ 12,265 $ 12,003 Contract assets, current portion $ 243 $ 312 Contract assets, noncurrent portion $ 297 $ 566 Deferred revenue $ 60,117 $ 56,709 During the three months ended March 31, 2024 and 2023, the Company recognized revenue of $10.7 million and $8.6 million, respectively, that was included in the deferred revenue balance at the beginning of the respective periods. Contract assets, current, and contract assets, noncurrent are included in prepaid expenses and other current assets and other assets, respectively, on the unaudited condensed consolidated balance sheets. As of March 31, 2024, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized is $73.6 million which includes deferred revenue, amounts that will be invoiced and recognized as revenues in future periods and Flexible Spending Accounts (FSA) commitments, from customers where actual product selection and quantities of specific products are to be determined by customers at a future period. The Company expects to recognize $36.9 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $5.5 million and $6.2 million as of March 31, 2024 and December 31, 2023, respectively. The Company has elected to exclude the potential future royalty receipts from these amounts. Costs of Obtaining a Contract with a Customer Incremental costs of obtaining a contract with a customer consist primarily of direct sales commissions incurred upon execution of the contract. These costs are required to be capitalized under ASC 340-40, Other Assets and Deferred Costs—Contracts With Customers , and amortized over the license term. As direct sales commissions paid for term extensions are commensurate with the amounts paid for initial contracts, the deferred incremental costs for initial contracts and for term extensions are recognized over the respective contract terms. Total capitalized direct commission costs were as follows (in thousands): As of March 31, December 31, Short-term commission capitalized in prepaid expenses and other current assets $ 2,300 $ 2,408 Long-term commission capitalized in other assets 1,314 1,353 Total $ 3,614 $ 3,761 Amortization of capitalized sales commissions was $0.9 million for both the three months ended March 31, 2024 and 2023, and are included in sales and marketing expense in the unaudited condensed consolidated statements of loss. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended 2024 2023 Numerator: Net loss $ (9,403) $ (9,010) Denominator: Weighted-average shares outstanding, basic and diluted 37,709,058 34,597,839 Net loss per share, basic and diluted $ (0.25) $ (0.26) Since the Company was in a loss position for all periods presented, the diluted earnings per share is equal to the basic earnings per share as the effect of potentially dilutive securities would have been antidilutive. The following table summarizes the potentially dilutive securities that were excluded from the calculation of diluted earnings per share because they would be anti-dilutive: As of March 31, 2024 March 31, 2023 Stock options 2,600,072 3,075,452 Restricted stock units 5,877,561 6,143,289 Restricted common shares issued for business combination 234,859 331,574 Total 8,712,492 9,550,315 |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The following tables summarize the fair value and amortized cost of the Company’s cash equivalents and available-for-sale securities by major security type (in thousands): As of March 31, 2024 Amortized Cost Unrealized Losses Aggregate Fair Value Assets: U.S. government agency securities $ 16,519 $ (12) $ 16,507 U.S. treasury securities 13,659 (3) 13,656 Money market funds 12,226 — 12,226 Corporate bonds 5,647 (6) 5,641 Commercial paper 1,449 (4) 1,445 Total financial assets $ 49,500 $ (25) $ 49,475 As of December 31, 2023 Amortized Cost Unrealized Gains (Losses) Aggregate Fair Value Assets: U.S. government agency securities $ 19,461 $ 29 $ 19,490 U.S. treasury securities 10,630 3 10,633 Money market funds 8,026 — 8,026 Corporate bonds 5,649 9 5,658 Certificate of deposit 5,000 — 5,000 Commercial paper 990 (1) 989 Total financial assets $ 49,756 $ 40 $ 49,796 The maturity dates of the Company’s investments are as follows (in thousands): March 31, 2024 Less than one year $ 40,873 1-2 years 8,602 Total $ 49,475 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Equity method investments, and certain non-financial assets, such as intangible assets are remeasured at fair value only if an impairment or observable price adjustment is recognized in the current period. Financial Instruments Not Recorded at Fair Value on a Recurring Basis Financial instruments not recorded at fair value on a recurring basis include vendor financing arrangements. The carrying value of the vendor financing agreements was $3.1 million and $3.4 million as of March 31, 2024 and December 31, 2023, respectively. The Company’s vendor financing arrangements are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon the Company’s incremental borrowing rate. The estimated fair values of these financial instruments approximate their carrying values. Financial Instruments Recorded at Fair Value on a Recurring Basis The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): As of March 31, 2024 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 12,226 $ — $ — $ 12,226 U.S. treasury securities — 9,952 — 9,952 Total cash equivalents 12,226 9,952 — 22,178 Short-term investments: Commercial paper — 1,445 — 1,445 Corporate bonds — 3,408 — 3,408 U.S. government agency securities — 10,138 — 10,138 U.S. treasury securities — 3,704 — 3,704 Total short-term investments — 18,695 — 18,695 Long-term investments: Corporate bonds — 2,233 — 2,233 U.S. government agency securities — 6,369 — 6,369 Total long-term investments — 8,602 — 8,602 Total financial assets $ 12,226 $ 37,249 $ — $ 49,475 As of December 31, 2023 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 8,026 $ — $ — $ 8,026 U.S. treasury securities — 2,491 — 2,491 Total cash equivalents 8,026 2,491 — 10,517 Short-term investments: Certificate of deposit — 5,000 — 5,000 Commercial paper — 989 — 989 Corporate bonds — 3,696 — 3,696 U.S. government agency securities — 9,650 — 9,650 U.S. treasury securities — 8,142 — 8,142 Total short-term investments — 27,477 — 27,477 Long-term investments: Corporate bonds — 1,962 — 1,962 U.S. government agency securities — 9,840 — 9,840 Total long-term investments — 11,802 — 11,802 Total financial assets $ 8,026 $ 41,770 $ — $ 49,796 Money market funds are highly liquid investments and are actively traded. The fair value is based on quoted prices for identical assets in active markets and therefore classified as Level 1 of the fair value hierarchy. The Company’s other investments are considered Level 2 financial instruments as their fair values are determined using inputs that are directly or indirectly observable in active or less active markets. There were no transfers between levels during the three months ended March 31, 2024. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible assets, net Intangible assets, net consisted of the following as of March 31, 2024 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,382) $ 1,708 Customer relationships 1,830 (572) 1,258 IPR&D 500 — 500 Trade name and other 200 (4) 196 Total intangibles $ 5,620 $ (1,958) $ 3,662 Intangible assets, net consisted of the following as of December 31, 2023 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,247) $ 1,843 Customer relationships 1,830 (515) 1,315 IPR&D 500 — 500 Trade name and other 200 — 200 Total intangibles $ 5,620 $ (1,762) $ 3,858 Amortization expense of intangible assets was $0.2 million for both the three months ended March 31, 2024 and 2023. The expected future amortization expense of these intangible assets as of March 31, 2024 is as follows (in thousands) : Fiscal year ending December 31, Amount Remainder of 2024 $ 588 2025 756 2026 444 2027 427 2028 416 Thereafter 381 Total future amortization expense $ 3,012 Goodwill As of both March 31, 2024 and December 31, 2023, goodwill was $4.2 million. No goodwill impairments were recorded during the three months ended March 31, 2024 and 2023. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases its offices at various locations under noncancelable operating lease agreements expiring at various dates through 2032. Under the terms of these agreements, the Company also bears the costs for certain insurance, property tax, and maintenance. The terms of certain lease agreements provide for increasing rental payments at fixed intervals. Total operating lease related costs were as follows (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 324 $ 274 Short-term lease cost 4 79 Total lease cost $ 328 $ 353 The weighted-average remaining term of the Company’s operating leases was 4.6 years and 4.8 years as of March 31, 2024 and December 31, 2023, respectively, and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 10.0% as of both March 31, 2024 and December 31, 2023. Cash payments made related to operating lease liabilities were $0.2 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. Maturities of operating lease liabilities as of March 31, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 919 2025 1,104 2026 1,058 2027 1,074 2028 829 Thereafter 254 Total undiscounted cash flows 5,238 Less: imputed interest (1,047) Present value of lease liabilities $ 4,191 Operating lease liabilities, current $ 858 Operating lease liabilities, non-current 3,333 Total lease liabilities $ 4,191 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Vendor financing arrangements —The Company has various vendor financing arrangements with extended pa yment terms on the purchase of software licenses and equipment. In order to determine the present value of the commitments, the Company used an imputed interest rate of 10.0% , which is an estimate based on the Company’s collateralized borrowing rate. Expected cash flows related to vendor financing arrangements as of March 31, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 1,715 2025 1,089 2026 545 Total undiscounted cash flows 3,349 Less: Imputed interest (267) Present value of vendor financing arrangements $ 3,082 Vendor financing arrangements, current $ 1,987 Vendor financing arrangements, noncurrent 1,095 $ 3,082 Interest expense from vendor financing arrangements was $0.1 million for both the three months ended March 31, 2024 and 2023. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Letter of Credit —In conjunction with the execution of the operating lease for the Company’s new headquarter facility, a letter of credit in the amount of $0.4 million was issued and outstanding as of both March 31, 2024 and December 31, 2023 . No draws have been made under such letter of credit. Indemnifications —The Company often enters into limited indemnification provisions in license agreements in the ordinary course of the Company’s licensing business. Pursuant to these provisions, which are often inserted into license agreements in the semiconductor IP and software licensing industries, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties up to a capped amount for losses suffered or incurred by such indemnified parties due to third-party claims if such claims are determined to be caused by the Company. The term of these indemnification provisions is generally either for a term of years or perpetual, in each case beginning on the execution date of the agreement. The Company has also agreed to indemnify under indemnity agreements with its directors and officers, to the extent legally permissible, against liabilities incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer, other than certain liabilities arising from willful misconduct of the individual. The Company has incurred no actual payment obligations from these above-noted indemnification provisions and director and officer indemnity agreements for three months ended March 31, 2024 and 2023 and the unaudited condensed consolidated financial statements do not include liabilities for any potential indemnity-related obligations as of March 31, 2024 and December 31, 2023 . Legal —The Company has been and will continue to be subject to legal proceedings and claims. In the normal course of business, the Company may receive inquiries or become involved in legal disputes regarding such litigation matters. Pursuant to ASC 450, Contingencies, the Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred, and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. In December 2022, the Company received notice of a complaint filed against the Company and another defendant in the semiconductor industry, by Network System Technologies, LLC in the United States District Court for the Western District of Texas, and additional complaints were filed in the Eastern District of Texas against certain companies, including some customers of the Company, asserting among other things patent infringement relating to the Company’s technology seeking damages and injunctive relief. The Company filed a Motion to Dismiss the indirect and willful infringement claims in the Amended Complaint on September 5, 2023 and claim construction hearings, the results of which are pending, in the Western District of Texas. These complaints and claims are complex in subject matter, multiple in number, in varying stages among the courts in which complaints were filed and indeterminate as to the amount of damages sought. The Company continues to vigorously defend itself in respect to these complaints and anticipates an increase in legal expenses to do so. Due to the inherent uncertainties and complex technical issues arising from such intellectual property litigation, the Company cannot predict or guarantee any result of such intellectual property litigation. As with any such litigation of this complexity, the Company cannot comment on the possible final litigation results of ongoing litigation or the risk whether the Company may not prevail in such intellectual property litigation. In addition, such litigation may make it necessary to support or defend the Company or the Company’s customers relating to the claims in the litigation. Further, the ultimate outcome of the litigation, like any litigation, is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors, which in turn may have a material adverse impact on the Company’s business, consolidated financial position, results of operations, or cash flows. As intellectual property claims are inherently unpredictable, the Company is currently evaluating whether such matters may have a material adverse effect on the Company’s financial position, results of operations, or cash flows. In addition, significant judgement is required in both the determination of probability and determination as to whether a loss is reasonably estimable. Future revisions to such estimates could materially impact the Company’s results. Accordingly, there can be no assurance that existing or any future legal proceedings for liability estimates arising in the ordinary course of business or otherwise will not have a material adverse effect on the Company’s business, consolidated financial position, results of operations or cash flows. The Company has no material contractual noncancelable commitments as of both March 31, 2024 and December 31, 2023. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation expense is recorded on a departmental basis, based on the classification of the award holder. The following table presents the amount of stock-based compensation related to stock-based awards to employees on the Company’s unaudited condensed consolidated statements of loss (in thousands): Three Months Ended 2024 2023 Cost of revenue $ 189 $ 83 Research and development 1,608 1,429 Sales and marketing 723 685 General and administrative 1,137 788 Total stock-based compensation $ 3,657 $ 2,985 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate was (4.1)% and (3.4)% for the three months ended March 31, 2024 and 2023, respectively. The Company’s income tax provision was $0.4 million and $0.3 million for the three months ended March 31, 2024 and 2023, respectively. The change in forecasted foreign withholding tax, changes in the geographic mix of worldwide earnings which are taxed at different rates, and the impact of losses in jurisdictions with full valuation allowances, has resulted in an increase in the income tax provision for the period ended March 31, 2024 compared to the period ended March 31, 2023. The Company’s management continuously evaluates the need for a valuation allowance and, as of March 31, 2024, concluded that a full valuation allowance on its federal, state, and certain foreign jurisdictions deferred tax assets was still appropriate. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The Company defines related parties as directors, executive officers, nominees for director, stockholders that have significant influence over the Company, or are a greater than 10% beneficial owner of the Company’s capital and their affiliates or immediate family members. In November 2020, the Company entered into a lease agreement with Isabelle Geday, a member of the Board of Directors. The lease payments were less than $0.1 million for both the three months ended March 31, 2024 and 2023. In addition, the Company signed a consulting agreement with Ms. Geday on December 1 , 2021, which was subsequently assigned to Magillem Design Services S.A., effective January 10, 2022. Prior to signing the consulting agreement, Ms. Geday was paid as an executive employee of the Company from December 1, 2020 through November 30, 2021. As a consultant, Ms. Geday will provide services for an initial three-year term and is eligible to receive $26,445 per month for the first 12 months of the consulting term and $19,445 per month for the remaining 24 months of the consulting term. For both the three months ended March 31, 2024 and 2023 , the Company paid Ms. Geday $0.1 million for consulting services. Lastly, the 455,000 stock options and 62,200 RSUs granted in connection with Ms. Geday’s prior employment continue to vest. In December 2022, the Company entered into a no-fee non-exclusive evaluation license agreement of Magillem products with Transchip Technology (Nanjing) Co., Ltd. (Transchip), an equity method investee. The evaluation was extended and is ongoing as of March 31, 2024 . Commencing August 2023, Transchip is carrying out a no-fee evaluation of additional Company products. Refer to Note 15 in the 2023 Form 10-K for additional discussion of the Company’s transactions with Transchip. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (9,403) | $ (9,010) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Charles Janac [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 27, 2024, Charles Janac, Chief Executive Officer (CEO), adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 189,951 shares of the Company’s common stock until June 30, 2025. |
Name | Charles Janac |
Title | CEO |
Rule 10b5-1 Arrangement Adopted | true |
Termination Date | February 27, 2024 |
Arrangement Duration | 489 days |
Aggregate Available | 189,951 |
Raman Chitkara [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 6, 2024, Raman Chitkara, Director, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 15,000 shares of the Company’s common stock until June 30, 2025. |
Name | Raman Chitkara |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Termination Date | March 6, 2024 |
Arrangement Duration | 481 days |
Aggregate Available | 15,000 |
Laurent Moll [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On March 15, 2024, Laurent Moll, Chief Technology Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 213,834 shares of the Company’s common stock until June 30, 2025. |
Name | Laurent Moll |
Title | Chief Technology Officer |
Rule 10b5-1 Arrangement Adopted | true |
Termination Date | March 15, 2024 |
Arrangement Duration | 473 days |
Aggregate Available | 213,834 |
Bayview Legacy LLC [Member] | Charles Janac [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 27, 2024, Charles Janac, CEO, as the manager of Bayview Legacy, LLC, adopted a Rule 10b5-1 trading arrangement of Bayview Legacy LLC that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 840,000 shares of the Company’s common stock until June 30, 2025. |
Name | Charles Janac |
Title | CEO |
Rule 10b5-1 Arrangement Adopted | true |
Termination Date | February 27, 2024 |
Arrangement Duration | 489 days |
Aggregate Available | 840,000 |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2023 and the related notes included in the Company’s Form 10-K filed on February 20, 2024 (2023 Form 10-K) with the U.S. Securities and Exchange Commission (SEC). The December 31, 2023 condensed consolidated balance sheet was derived from the audited consolidated financial statements as of that date. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the unaudited condensed consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Arteris, Inc. and its wholly-owned subsidiaries. All intercompany transactions and accounts have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the unaudited condensed 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 liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to, among others, revenue recognition, the useful lives of assets, assessment of recoverability of property, plant and equipment, fair value of investments, impairment of the equity method investment, fair values of goodwill and other intangible assets, including impairments, leases, allowances for doubtful accounts, deferred tax assets and related valuation allowance, stock-based compensation, potential reserves relating to litigation and tax matters, collectability of certain receivables, fair value and amortization of deferred income, as well as other accruals or reserves. Actual results could differ from those estimates and such differences may be material to the unaudited condensed consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with original maturities of three months or less from the purchase date to be cash equivalents. The Company’s cash equivalents include deposits in money market accounts which were unrestricted as to withdrawal or use and are stated at fair value. As of March 31, 2024, cash and cash equivalents consisted primarily of checking, savings, money market accounts and highly liquid investments with original maturities of three months or less. Interest earned on cash and cash equivalents is included in other income (expense), net in the unaudited consolidated statements of loss. As of both March 31, 2024 and December 31, 2023, the Company’s long-term restricted cash balance was $0.4 million, primarily related to a letter of credit for its facility lease agreement. Restricted cash, noncurrent is included in other assets on the unaudited condensed consolidated balance sheets. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist of cash and cash equivalents, investments and accounts receivable. Cash is currently held in three financial institutions that the Company believes are creditworthy. Cash held at these financial institutions generally exceed federally insured limits. The Company is exposed to credit risk in the event of default by the financial institution holding its cash, cash equivalents, and investments to the extent recorded in the balance sheet. The Company has not experienced any losses to date related to these concentrations. The Company’s accounts receivable are derived principally from revenue earned from customers located in Americas, Europe, Middle East and Asia Pacific regions. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which amends the guidance in ASC 740, Income Taxes. This ASU is intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. This ASU is effective for fiscal years beginning after December 15, 2024. Adoption is either prospectively or retrospectively, the Company will adopt this ASU on a prospective basis. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires disclosure of incremental segment information on an annual and interim basis. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact of adopting this ASU on its consolidated financial statements and disclosures. |
Fair Value Measurements | Assets Measured and Recorded at Fair Value on a Non-Recurring Basis Equity method investments, and certain non-financial assets, such as intangible assets are remeasured at fair value only if an impairment or observable price adjustment is recognized in the current period. Financial Instruments Not Recorded at Fair Value on a Recurring Basis Financial instruments not recorded at fair value on a recurring basis include vendor financing arrangements. The carrying value of the vendor financing agreements was $3.1 million and $3.4 million as of March 31, 2024 and December 31, 2023, respectively. The Company’s vendor financing arrangements are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon the Company’s incremental borrowing rate. The estimated fair values of these financial instruments approximate their carrying values. Money market funds are highly liquid investments and are actively traded. The fair value is based on quoted prices for identical assets in active markets and therefore classified as Level 1 of the fair value hierarchy. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk | Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable was as follows: As of March 31, December 31, Customer A 30 % — % Customer B 16 % 15 % Customer C * 26 % * Customer accounted for less than 10% of total accounts receivable at period end. Revenue from the Company’s major customers representing 10% or more of total revenue was as follows: Three Months Ended 2024 2023 Customer B 14 % 10 % Customer D * 11 % * Customer accounted for less than 10% of total revenue during the period. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows revenue by product and services groups (in thousands): Three Months Ended 2024 2023 Licensing, support and maintenance $ 11,739 $ 11,844 Variable royalties 818 1,290 Other 390 20 Total $ 12,947 $ 13,154 |
Contract Balances on Condensed Consolidated Balance Sheet | The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands): As of March 31, December 31, Accounts receivable, net $ 12,265 $ 12,003 Contract assets, current portion $ 243 $ 312 Contract assets, noncurrent portion $ 297 $ 566 Deferred revenue $ 60,117 $ 56,709 |
Capitalized Direct Commission Costs | Total capitalized direct commission costs were as follows (in thousands): As of March 31, December 31, Short-term commission capitalized in prepaid expenses and other current assets $ 2,300 $ 2,408 Long-term commission capitalized in other assets 1,314 1,353 Total $ 3,614 $ 3,761 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except share and per share data): Three Months Ended 2024 2023 Numerator: Net loss $ (9,403) $ (9,010) Denominator: Weighted-average shares outstanding, basic and diluted 37,709,058 34,597,839 Net loss per share, basic and diluted $ (0.25) $ (0.26) |
Schedule of Potentially Dilutive Securities Excluded from the Calculation of Diluted Earnings Per Share | The following table summarizes the potentially dilutive securities that were excluded from the calculation of diluted earnings per share because they would be anti-dilutive: As of March 31, 2024 March 31, 2023 Stock options 2,600,072 3,075,452 Restricted stock units 5,877,561 6,143,289 Restricted common shares issued for business combination 234,859 331,574 Total 8,712,492 9,550,315 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | The following tables summarize the fair value and amortized cost of the Company’s cash equivalents and available-for-sale securities by major security type (in thousands): As of March 31, 2024 Amortized Cost Unrealized Losses Aggregate Fair Value Assets: U.S. government agency securities $ 16,519 $ (12) $ 16,507 U.S. treasury securities 13,659 (3) 13,656 Money market funds 12,226 — 12,226 Corporate bonds 5,647 (6) 5,641 Commercial paper 1,449 (4) 1,445 Total financial assets $ 49,500 $ (25) $ 49,475 As of December 31, 2023 Amortized Cost Unrealized Gains (Losses) Aggregate Fair Value Assets: U.S. government agency securities $ 19,461 $ 29 $ 19,490 U.S. treasury securities 10,630 3 10,633 Money market funds 8,026 — 8,026 Corporate bonds 5,649 9 5,658 Certificate of deposit 5,000 — 5,000 Commercial paper 990 (1) 989 Total financial assets $ 49,756 $ 40 $ 49,796 |
Debt Securities, Held-to-maturity, Nonaccrual | The maturity dates of the Company’s investments are as follows (in thousands): March 31, 2024 Less than one year $ 40,873 1-2 years 8,602 Total $ 49,475 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables summarize the Company’s financial assets measured at fair value on a recurring basis by level within the fair value hierarchy (in thousands): As of March 31, 2024 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 12,226 $ — $ — $ 12,226 U.S. treasury securities — 9,952 — 9,952 Total cash equivalents 12,226 9,952 — 22,178 Short-term investments: Commercial paper — 1,445 — 1,445 Corporate bonds — 3,408 — 3,408 U.S. government agency securities — 10,138 — 10,138 U.S. treasury securities — 3,704 — 3,704 Total short-term investments — 18,695 — 18,695 Long-term investments: Corporate bonds — 2,233 — 2,233 U.S. government agency securities — 6,369 — 6,369 Total long-term investments — 8,602 — 8,602 Total financial assets $ 12,226 $ 37,249 $ — $ 49,475 As of December 31, 2023 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 8,026 $ — $ — $ 8,026 U.S. treasury securities — 2,491 — 2,491 Total cash equivalents 8,026 2,491 — 10,517 Short-term investments: Certificate of deposit — 5,000 — 5,000 Commercial paper — 989 — 989 Corporate bonds — 3,696 — 3,696 U.S. government agency securities — 9,650 — 9,650 U.S. treasury securities — 8,142 — 8,142 Total short-term investments — 27,477 — 27,477 Long-term investments: Corporate bonds — 1,962 — 1,962 U.S. government agency securities — 9,840 — 9,840 Total long-term investments — 11,802 — 11,802 Total financial assets $ 8,026 $ 41,770 $ — $ 49,796 |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets, net consisted of the following as of March 31, 2024 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,382) $ 1,708 Customer relationships 1,830 (572) 1,258 IPR&D 500 — 500 Trade name and other 200 (4) 196 Total intangibles $ 5,620 $ (1,958) $ 3,662 Intangible assets, net consisted of the following as of December 31, 2023 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,247) $ 1,843 Customer relationships 1,830 (515) 1,315 IPR&D 500 — 500 Trade name and other 200 — 200 Total intangibles $ 5,620 $ (1,762) $ 3,858 |
Schedule of Future Amortization Expense | The expected future amortization expense of these intangible assets as of March 31, 2024 is as follows (in thousands) : Fiscal year ending December 31, Amount Remainder of 2024 $ 588 2025 756 2026 444 2027 427 2028 416 Thereafter 381 Total future amortization expense $ 3,012 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Operating Lease Costs | Total operating lease related costs were as follows (in thousands): Three Months Ended 2024 2023 Operating lease cost $ 324 $ 274 Short-term lease cost 4 79 Total lease cost $ 328 $ 353 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities as of March 31, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 919 2025 1,104 2026 1,058 2027 1,074 2028 829 Thereafter 254 Total undiscounted cash flows 5,238 Less: imputed interest (1,047) Present value of lease liabilities $ 4,191 Operating lease liabilities, current $ 858 Operating lease liabilities, non-current 3,333 Total lease liabilities $ 4,191 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Vendor Financing Arrangements | Expected cash flows related to vendor financing arrangements as of March 31, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 1,715 2025 1,089 2026 545 Total undiscounted cash flows 3,349 Less: Imputed interest (267) Present value of vendor financing arrangements $ 3,082 Vendor financing arrangements, current $ 1,987 Vendor financing arrangements, noncurrent 1,095 $ 3,082 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Related to Stock-Based Awards to Employees | The following table presents the amount of stock-based compensation related to stock-based awards to employees on the Company’s unaudited condensed consolidated statements of loss (in thousands): Three Months Ended 2024 2023 Cost of revenue $ 189 $ 83 Research and development 1,608 1,429 Sales and marketing 723 685 General and administrative 1,137 788 Total stock-based compensation $ 3,657 $ 2,985 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Accounting Policies [Abstract] | |||
Restricted cash | $ 388 | $ 400 | $ 0 |
BASIS OF PRESENTATION AND SUM_5
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable Concentration Risk (Details) - Accounts Receivable - Customer Concentration Risk | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 30% | 0% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16% | 15% |
Customer C | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26% |
BASIS OF PRESENTATION AND SUM_6
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Concentration Risk (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 14% | 10% |
Customer D | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 11% |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 12,947 | $ 13,154 |
Licensing, support and maintenance | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 11,739 | 11,844 |
Variable royalties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 818 | 1,290 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 390 | $ 20 |
REVENUE - Contract Balances on
REVENUE - Contract Balances on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 12,265 | $ 12,003 |
Contract assets, current portion | 243 | 312 |
Contract assets, noncurrent portion | 297 | 566 |
Deferred revenue | $ 60,117 | $ 56,709 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue, revenue recognized | $ 10.7 | $ 8.6 | |
Unsatisfied performance obligations | 73.6 | ||
Revenue, remaining performance obligation, flexible spending account commitment | 5.5 | $ 6.2 | |
Amortization of capitalized sales commissions | 0.9 | $ 0.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Disaggregation of Revenue [Line Items] | |||
Unsatisfied performance obligations, excluding flexible spending account commitment | $ 36.9 | ||
Remaining performance obligation, expected timing of satisfaction | 12 months |
REVENUE - Capitalized Direct Co
REVENUE - Capitalized Direct Commission Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Short-term commission capitalized in prepaid expenses and other current assets | $ 2,300 | $ 2,408 |
Long-term commission capitalized in other assets | 1,314 | 1,353 |
Total | $ 3,614 | $ 3,761 |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net loss | $ (9,403) | $ (9,010) |
Denominator: | ||
Weighted-average shares outstanding - basic (in shares) | 37,709,058 | 34,597,839 |
Weighted-average shares outstanding - diluted (in shares) | 37,709,058 | 34,597,839 |
Net loss per share, basic (in dollars per share) | $ (0.25) | $ (0.26) |
Net loss per share, diluted (in dollars per share) | $ (0.25) | $ (0.26) |
NET LOSS PER SHARE - Schedule_2
NET LOSS PER SHARE - Schedule of Potentially Dilutive Securities Excluded from the Calculation of Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,712,492 | 9,550,315 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,600,072 | 3,075,452 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,877,561 | 6,143,289 |
Restricted common shares issued for business combination | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 234,859 | 331,574 |
INVESTMENTS - Debt Securities,
INVESTMENTS - Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 49,500 | $ 49,756 |
Unrealized Losses | (25) | 40 |
Aggregate Fair Value | 49,475 | 49,796 |
U.S. government agency securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 16,519 | 19,461 |
Unrealized Losses | (12) | 29 |
Aggregate Fair Value | 16,507 | 19,490 |
U.S. treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 13,659 | 10,630 |
Unrealized Losses | (3) | 3 |
Aggregate Fair Value | 13,656 | 10,633 |
Money market funds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 12,226 | 8,026 |
Unrealized Losses | 0 | 0 |
Aggregate Fair Value | 12,226 | 8,026 |
Corporate bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,647 | 5,649 |
Unrealized Losses | (6) | 9 |
Aggregate Fair Value | 5,641 | 5,658 |
Certificate of deposit | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 5,000 | |
Unrealized Losses | 0 | |
Aggregate Fair Value | 5,000 | |
Commercial paper | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,449 | 990 |
Unrealized Losses | (4) | (1) |
Aggregate Fair Value | $ 1,445 | $ 989 |
INVESTMENTS - Debt Securities_2
INVESTMENTS - Debt Securities, Held-to-maturity, Nonaccrual (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Less than one year | $ 40,873 |
1-2 years | 8,602 |
Total | $ 49,475 |
INVESTMENTS - Narrative (Detail
INVESTMENTS - Narrative (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Continue net unrealized loss position | $ 1,700,000 | $ 3,700,000 |
Allowance for credit loss | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Reported Value Measurement | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Carrying value of term loan and vendor financing agreements | $ 3.1 | $ 3.4 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | $ 22,178 | $ 10,517 |
Total short-term investments | 18,695 | 27,477 |
Total long-term investments | 8,602 | 11,802 |
Total financial assets | 49,475 | 49,796 |
Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 12,226 | 8,026 |
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Total financial assets | 12,226 | 8,026 |
Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 9,952 | 2,491 |
Total short-term investments | 18,695 | 27,477 |
Total long-term investments | 8,602 | 11,802 |
Total financial assets | 37,249 | 41,770 |
Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Total financial assets | 0 | 0 |
Money market funds | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 12,226 | 8,026 |
Money market funds | Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 12,226 | 8,026 |
Money market funds | Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 0 | 0 |
Money market funds | Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 0 | 0 |
U.S. treasury securities | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 9,952 | 2,491 |
Total short-term investments | 3,704 | 8,142 |
U.S. treasury securities | Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
U.S. treasury securities | Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 9,952 | 2,491 |
Total short-term investments | 3,704 | 8,142 |
U.S. treasury securities | Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Certificate of deposit | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 5,000 | |
Certificate of deposit | Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | |
Certificate of deposit | Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 5,000 | |
Certificate of deposit | Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | |
Commercial paper | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 1,445 | 989 |
Commercial paper | Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 1,445 | 989 |
Commercial paper | Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | 0 |
Corporate bonds | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 3,408 | 3,696 |
Total long-term investments | 2,233 | 1,962 |
Corporate bonds | Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
Corporate bonds | Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 3,408 | 3,696 |
Total long-term investments | 2,233 | 1,962 |
Corporate bonds | Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
U.S. government agency securities | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 10,138 | 9,650 |
Total long-term investments | 6,369 | 9,840 |
U.S. government agency securities | Level 1 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | 0 | 0 |
U.S. government agency securities | Level 2 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 10,138 | 9,650 |
Total long-term investments | 6,369 | 9,840 |
U.S. government agency securities | Level 3 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Total short-term investments | 0 | 0 |
Total long-term investments | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5,620 | $ 5,620 |
Finite-lived intangible assets, accumulated amortization | (1,958) | (1,762) |
Total future amortization expense | 3,012 | |
Intangible assets, net | 3,662 | 3,858 |
IPR&D | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | 500 | 500 |
Trade name and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 200 | |
Indefinite-lived intangible assets, gross | 200 | |
Finite-lived intangible assets, accumulated amortization | (4) | |
Total future amortization expense | 196 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 3,090 | 3,090 |
Finite-lived intangible assets, accumulated amortization | (1,382) | (1,247) |
Total future amortization expense | 1,708 | 1,843 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,830 | 1,830 |
Finite-lived intangible assets, accumulated amortization | (572) | (515) |
Total future amortization expense | $ 1,258 | $ 1,315 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 200,000 | $ 200,000 | |
Goodwill | 4,178,000 | $ 4,178,000 | |
Goodwill impairments | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Remainder of 2024 | $ 588 |
2025 | 756 |
2026 | 444 |
2027 | 427 |
2028 | 416 |
Thereafter | 381 |
Total future amortization expense | $ 3,012 |
LEASES - Operating Lease Costs
LEASES - Operating Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 324 | $ 274 |
Short-term lease cost | 4 | 79 |
Total lease cost | $ 328 | $ 353 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||
Weighted average remaining lease term, operating lease | 4 years 7 months 6 days | 4 years 9 months 18 days | |
Weighted average discount rate, operating lease | 10% | 10% | |
Cash payments | $ 0.2 | $ 0.3 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Remainder of 2024 | $ 919 | |
2025 | 1,104 | |
2026 | 1,058 | |
2027 | 1,074 | |
2028 | 829 | |
Thereafter | 254 | |
Total undiscounted cash flows | 5,238 | |
Less: imputed interest | (1,047) | |
Present value of lease liabilities | 4,191 | |
Operating lease liabilities, current | 858 | $ 781 |
Operating lease liabilities, non-current | $ 3,333 | $ 3,610 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Interest expense | $ 0.1 | $ 0.1 |
Vendor Financing Arrangements | ||
Debt Instrument [Line Items] | ||
Interest rate, effective percentage | 10% |
BORROWINGS - Schedule of Vendor
BORROWINGS - Schedule of Vendor Financing Arrangements (Details) - Vendor Financing Arrangements $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
Remainder of 2024 | $ 1,715 |
2025 | 1,089 |
2026 | 545 |
Total undiscounted cash flows | 3,349 |
Less: Imputed interest | (267) |
Present value of vendor financing arrangements | 3,082 |
Vendor financing arrangements, current | 1,987 |
Vendor financing arrangements, noncurrent | $ 1,095 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding, amount | $ 0.4 | $ 0.4 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Proceeds from Lines of Credit | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation Related to Stock-Based Awards to Employees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 3,657 | $ 2,985 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 189 | 83 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 1,608 | 1,429 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | 723 | 685 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock-based compensation | $ 1,137 | $ 788 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (4.10%) | (3.40%) |
Income tax expense (benefit) | $ 370,000 | $ 295,000 |
Unrecognized tax benefits | 3,500,000 | 2,600,000 |
Income tax penalties and interest accrued related to unrecognized tax benefits | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transaction [Line Items] | ||
Lease payment due to related party | $ 200,000 | $ 300,000 |
Director | ||
Related Party Transaction [Line Items] | ||
Lease payment due to related party | $ 100,000 | 100,000 |
Director | Isabelle Geday | Consulting Agreement | ||
Related Party Transaction [Line Items] | ||
Related party transaction, agreement term | 3 years | |
Professional fees | $ 100,000 | $ 100,000 |
Director | Isabelle Geday | Consulting Agreement | Related Party Transaction, Tranche One | ||
Related Party Transaction [Line Items] | ||
Related party transaction, agreement term | 12 months | |
Due to related party, monthly amount | $ 26,445 | |
Director | Isabelle Geday | Consulting Agreement | Related Party Transaction, Tranche Two | ||
Related Party Transaction [Line Items] | ||
Related party transaction, agreement term | 24 months | |
Due to related party, monthly amount | $ 19,445 | |
Director | Isabelle Geday | Consulting Agreement | Restricted stock units | ||
Related Party Transaction [Line Items] | ||
Granted unvested options (in shares) | 62,200 | |
Director | Isabelle Geday | Consulting Agreement | Convertible Preferred Stock | ||
Related Party Transaction [Line Items] | ||
Options outstanding (in shares) | 455,000 |