Arteris (AIP) 10-Q 1 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2024	Jul. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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		39,257,166
Entity Central Index Key	0001667011
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Current Fiscal Year End Date	--12-31

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 22,128	$ 13,696
Short-term investments (Note 5)	23,629	27,477
Accounts receivable, net of allowance of $93 as of both June 30, 2024 and December 31, 2023	8,947	12,003
Prepaid expenses and other current assets	4,202	5,254
Total current assets	58,906	58,430
Property and equipment, net	4,665	5,745
Long-term investments (Note 5)	8,124	11,802
Equity method investment	7,016	8,500
Operating lease right-of-use assets	3,829	4,289
Intangibles, net	3,466	3,858
Goodwill	4,178	4,178
Other assets	6,187	5,999
TOTAL ASSETS	96,371	102,801
Current liabilities:
Accounts payable	340	183
Accrued expenses and other current liabilities	11,713	11,831
Operating lease liabilities, current	830	781
Deferred revenue, current	36,939	31,537
Vendor financing arrangements, current	1,905	2,070
Total current liabilities	51,727	46,402
Deferred revenue, noncurrent	24,503	25,172
Operating lease liabilities, noncurrent	3,123	3,610
Vendor financing arrangements, noncurrent	889	1,292
Deferred income, noncurrent	8,226	8,810
Other liabilities	2,628	2,412
Total liabilities	91,096	87,698
Commitments and contingencies (Note 10)
Stockholders' equity:
Preferred stock, par value of $0.000 - 10,000 shares authorized as of both June 30, 2024 and December 31, 2023; no shares issued and outstanding as of both June 30, 2024 and December 31, 2023	0	0
Common stock, par value of $0.001 - 300,000,000 shares authorized as of both June 30, 2024 and December 31, 2023; 39,193,088 and 37,518,583 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	39	37
Additional paid-in capital	126,192	118,193
Accumulated other comprehensive income	38	120
Accumulated deficit	(120,994)	(103,247)
Total stockholders' equity	5,275	15,103
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 96,371	$ 102,801

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 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)	39,193,088	37,518,583
Common stock, outstanding (in shares)	39,193,088	37,518,583

Condensed Consolidated Statemen

Condensed Consolidated Statements of Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue
Total revenue	$ 14,575	$ 14,734	$ 27,522	$ 27,888
Cost of revenue	1,458	1,225	2,926	2,349
Gross profit	13,117	13,509	24,596	25,539
Operating expenses:
Research and development	10,717	12,087	21,552	23,468
Sales and marketing	5,013	5,601	10,469	10,606
General and administrative	4,828	4,504	9,150	8,905
Total operating expenses	20,558	22,192	41,171	42,979
Loss from operations	(7,441)	(8,683)	(16,575)	(17,440)
Interest expense	(68)	(27)	(144)	(59)
Other income (expense), net	865	835	1,801	1,743
Loss before income taxes and loss from equity method investment	(6,644)	(7,875)	(14,918)	(15,756)
Loss from equity method investment	725	734	1,484	1,568
Provision for income taxes	975	556	1,345	851
Net loss	$ (8,344)	$ (9,165)	$ (17,747)	$ (18,175)
Net loss per share attributable to common stockholders
Net loss per share attributable to common stockholders, basic (in dollars per share)	$ (0.22)	$ (0.26)	$ (0.47)	$ (0.52)
Net loss per share attributable to common stockholders, diluted (in dollars per share)	$ (0.22)	$ (0.26)	$ (0.47)	$ (0.52)
Weighted average shares used in computing per share amounts
Weighted average shares used in computing per share amounts, basic (in shares)	38,476,934	35,250,157	38,092,996	34,925,800
Weighted average shares used in computing per share amounts, basic (in shares)	38,476,934	35,250,157	38,092,996	34,925,800
Licensing, support and maintenance
Revenue
Total revenue	$ 13,553	$ 12,998	$ 25,292	$ 24,842
Variable royalties and other
Revenue
Total revenue	$ 1,022	$ 1,736	$ 2,230	$ 3,046

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (8,344)	$ (9,165)	$ (17,747)	$ (18,175)
Other comprehensive loss:
Unrealized losses on available-for-sale securities, net of tax	(16)	(78)	(82)	(67)
Comprehensive loss	$ (8,360)	$ (9,243)	$ (17,829)	$ (18,242)

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)		643,477
Issuance of common stock upon exercise of stock options	417	$ 1	416
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		775,563
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 1	(1)
Tax withholding on RSUs settlement (in shares)		(11,554)
Tax withholding on RSUs settlement	(57)		(57)
Stock-based compensation expense	7,267		7,267
Unrealized losses on available-for-sale securities, net of tax	(67)			(67)
Net loss	(18,175)				(18,175)
Balance at end of period (in shares) at Jun. 30, 2023		36,033,361
Balance at end of period at Jun. 30, 2023	26,920	$ 36	111,403	34	(84,553)
Balance at beginning of period (in shares) at Mar. 31, 2023		35,298,223
Balance at beginning of period at Mar. 31, 2023	31,768	$ 35	107,009	112	(75,388)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		245,780
Issuance of common stock upon exercise of stock options	156	$ 0	156
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		498,414
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 1	(1)
Tax withholding on RSUs settlement (in shares)		(9,056)
Tax withholding on RSUs settlement	(43)		(43)
Stock-based compensation expense	4,282		4,282
Unrealized losses on available-for-sale securities, net of tax	(78)			(78)
Net loss	(9,165)				(9,165)
Balance at end of period (in shares) at Jun. 30, 2023		36,033,361
Balance at end of period at Jun. 30, 2023	$ 26,920	$ 36	111,403	34	(84,553)
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)		534,670
Issuance of common stock upon exercise of stock options	584	$ 1	583
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		1,139,835
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 1	(1)
Stock-based compensation expense	7,417		7,417
Unrealized losses on available-for-sale securities, net of tax	(82)			(82)
Net loss	$ (17,747)				(17,747)
Balance at end of period (in shares) at Jun. 30, 2024	39,193,088	39,193,088
Balance at end of period at Jun. 30, 2024	$ 5,275	$ 39	126,192	38	(120,994)
Balance at beginning of period (in shares) at Mar. 31, 2024		38,291,425
Balance at beginning of period at Mar. 31, 2024	9,546	$ 38	122,104	54	(112,650)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		287,978
Issuance of common stock upon exercise of stock options	329	$ 1	328
Issuance of common stock for settlement of Restricted Stock Units (RSUs) (in shares)		613,685
Issuance of common stock for settlement of Restricted Stock Units (RSUs)	0	$ 0	0
Stock-based compensation expense	3,760		3,760
Unrealized losses on available-for-sale securities, net of tax	(16)			(16)
Net loss	$ (8,344)				(8,344)
Balance at end of period (in shares) at Jun. 30, 2024	39,193,088	39,193,088
Balance at end of period at Jun. 30, 2024	$ 5,275	$ 39	$ 126,192	$ 38	$ (120,994)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (17,747)	$ (18,175)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,630	1,275
Stock-based compensation	7,417	7,267
Amortization of deferred income	(588)	(585)
Loss from equity method investment	1,484	1,568
Net accretion of discounts on available-for-sale securities	(344)	(497)
Other, net	24	10
Changes in operating assets and liabilities:
Accounts receivable, net	3,055	(2,438)
Prepaid expenses and other assets	865	(710)
Accounts payable	156	(371)
Accrued expenses and other liabilities	103	16
Deferred revenue	4,733	2,696
Net cash provided by (used in) operating activities	788	(9,944)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(243)	(735)
Purchases of available-for-sale securities	(12,981)	(19,544)
Proceeds from maturities of available-for-sale securities and other	20,769	20,650
Net cash provided by investing activities	7,545	371
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of contingent consideration for business combination	0	(1,000)
Principal payments under vendor financing arrangements	(485)	(488)
Proceeds from exercise of stock options	584	417
Payments to tax authorities for shares withheld from employees	0	(57)
Net cash provided by (used in) financing activities	99	(1,128)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	8,432	(10,701)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	14,084	37,423
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	22,516	26,722
Cash, cash equivalents and restricted cash at end of period:
Cash and cash equivalents	22,128	26,334
Restricted cash, noncurrent	388	388
Noncash activities:
Purchase of property and equipment through vendor financing	0	1,901
Operating lease right-of-use assets, exchanged for lease obligations	$ 0	$ 480

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Jun. 30, 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. In June 2024, the Company registered a subsidiary in Poland and is taking steps to establish an office there.

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 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 June 30, 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 June 30, 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 June 30, December 31, Customer A 27 % 15 % Customer B * 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 Six Months Ended 2024 2023 2024 2023 Customer A 14 % * 14 % * * Customer accounted for less than 10% of total revenue during the period. Stock-based Compensation The Company measures equity classified stock-based awards, including stock options and RSUs granted to employees, directors, and non-employees based on the estimated fair values of the awards on the date of the grant. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period which is generally the vesting period of such awards, as a component of operating expenses within the consolidated statements of income (loss). For awards that include performance conditions stock-based compensation expense is recognized on a graded vesting basis over the requisite service period. Compensation expense is not recognized until the performance condition becomes probable. The Company accounts for forfeitures related to these awards as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. The fair value of RSUs granted is measured as the fair value per share of the Company’s common stock on the date of grant. The Company adopted the 2021 Employee Stock Purchase Plan (the 2021 ESPP) effective on October 26, 2021. The first offering under the 2021 ESPP began on May 22, 2024. E ligible employees are entitled to purchase common stock at the end of six-month offering periods, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates. The fair value of shares of common stock to be issued under the 2021 ESPP is estimated using the Black-Scholes option pricing model. Stock-based compensation expense for ESPP awards is recognized on a straight-line basis over the term of each ESPP offering period. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies during the six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Licensing, support and maintenance $ 13,553 $ 12,998 $ 25,292 $ 24,842 Variable royalties 971 1,700 1,789 2,990 Other 51 36 441 56 Total $ 14,575 $ 14,734 $ 27,522 $ 27,888 Contract Balances The following table provides information about accounts receivable, net, contract assets and deferred revenue (in thousands): As of June 30, December 31, Accounts receivable, net $ 8,947 $ 12,003 Contract assets, current portion $ 232 $ 312 Contract assets, noncurrent portion $ 31 $ 566 Deferred revenue $ 61,442 $ 56,709 The Company recognized revenue of $11.5 million and $8.9 million for the three months ended June 30, 2024 and 2023, respectively, and $20.6 million and $16.5 million for the six months ended June 30, 2024 and 2023, 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 June 30, 2024, non-cancelable contracted but unsatisfied or partially satisfied performance obligations that have not yet been recognized is $75.5 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 $43.1 million of this balance over the next 12 months and the remainder thereafter. FSA commitments amounted to $5.6 million and $6.2 million as of June 30, 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 June 30, December 31, Short-term commission capitalized in prepaid expenses and other current assets $ 2,248 $ 2,408 Long-term commission capitalized in other assets 1,220 1,353 Total $ 3,468 $ 3,761 Amortization of capitalized sales commissions was $0.9 million and $1.0 million for the three months ended June 30, 2024 and 2023, respectively, and $1.8 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively, and are included in sales and marketing expense in the unaudited condensed consolidated statements of loss.

NET LOSS PER SHARE

NET LOSS PER SHARE	6 Months Ended
	Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Numerator: Net loss $ (8,344) $ (9,165) $ (17,747) $ (18,175) Denominator: Weighted-average shares outstanding, basic and diluted 38,476,934 35,250,157 38,092,996 34,925,800 Net loss per share, basic and diluted $ (0.22) $ (0.26) $ (0.47) $ (0.52) 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 June 30, 2024 June 30, 2023 Stock options 2,285,281 3,225,714 Restricted stock units 6,254,930 7,163,008 Restricted common shares issued for business combination 234,859 331,574 Shares committed under the 2021 ESPP 83,445 — Total 8,858,515 10,720,296

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 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 June 30, 2024 Amortized Cost Unrealized Losses Aggregate Fair Value Assets: Money market funds $ 16,117 $ — $ 16,117 U.S. government agency securities 15,131 (21) 15,110 U.S. treasury securities 8,678 (2) 8,676 Corporate bonds 8,225 (13) 8,212 Commercial paper 3,248 (6) 3,242 Total financial assets $ 51,399 $ (42) $ 51,357 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): June 30, 2024 Less than one year $ 43,233 1-2 years 8,124 Total $ 51,357

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 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 $2.8 million and $3.4 million as of June 30, 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 June 30, 2024 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 16,117 $ — $ — $ 16,117 U.S. treasury securities — 3,487 — 3,487 Total cash equivalents 16,117 3,487 — 19,604 Short-term investments: Commercial paper — 3,242 — 3,242 Corporate bonds — 7,710 — 7,710 U.S. government agency securities — 7,488 — 7,488 U.S. treasury securities — 5,189 — 5,189 Total short-term investments — 23,629 — 23,629 Long-term investments: Corporate bonds — 502 — 502 U.S. government agency securities — 7,622 — 7,622 Total long-term investments — 8,124 — 8,124 Total financial assets $ 16,117 $ 35,240 $ — $ 51,357 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 periods presented.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	6 Months Ended
	Jun. 30, 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 June 30, 2024 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,516) $ 1,574 Customer relationships 1,830 (630) 1,200 IPR&D 500 — 500 Trade name and other 200 (8) 192 Total intangibles $ 5,620 $ (2,154) $ 3,466 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 June 30, 2024 and 2023 and $0.4 million for both the six months ended June 30, 2024 and 2023. The expected future amortization expense of these intangible assets as of June 30, 2024 is as follows (in thousands) : Fiscal year ending December 31, Amount Remainder of 2024 $ 392 2025 756 2026 444 2027 427 2028 416 Thereafter 381 Total future amortization expense $ 2,816 Goodwill As of both June 30, 2024 and December 31, 2023, goodwill was $4.2 million. No goodwill impairments were recorded during the three and six months ended June 30, 2024 and 2023.

LEASES

LEASES	6 Months Ended
	Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Operating lease cost $ 322 $ 279 $ 646 $ 553 Short-term lease cost 9 36 13 115 Total lease cost $ 331 $ 315 $ 659 $ 668 The weighted-average remaining term of the Company’s operating leases was 4.4 years and 4.8 years as of June 30, 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 June 30, 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 June 30, 2024 and 2023, respectively, and $0.5 million and $0.6 million for the six months ended June 30, 2024 and 2023, respectively . Maturities of operating lease liabilities as of June 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 594 2025 1,100 2026 1,055 2027 1,070 2028 827 Thereafter 253 Total undiscounted cash flows 4,899 Less: imputed interest (946) Present value of lease liabilities $ 3,953 Operating lease liabilities, current $ 830 Operating lease liabilities, non-current 3,123 Total lease liabilities $ 3,953

BORROWINGS

BORROWINGS	6 Months Ended
	Jun. 30, 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 June 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 1,360 2025 1,089 2026 545 Total undiscounted cash flows 2,994 Less: Imputed interest (200) Present value of vendor financing arrangements $ 2,794 Vendor financing arrangements, current $ 1,905 Vendor financing arrangements, noncurrent 889 $ 2,794 Interest expense from vendor financing arrangements was $0.1 million and less than $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $0.1 million for both the six months ended June 30, 2024 and 2023 .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 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 June 30, 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 the three and six months ended June 30, 2024 and 2023 and the unaudited condensed consolidated financial statements do not include liabilities for any potential indemnity-related obligations as of June 30, 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. The resolution of these matters often develops over time and expectations can change as a result of new findings, rulings, appeals or settlement arrangements. These matters are subject to inherent uncertainties and management’s view of these matters may change in the future. 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 (NST) in the United States District Court for the Western District of Texas. 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 seeking damages and injunctive relief. On June 10, 2024, the Company and NST jointly moved for an order to stay all deadlines against the Company in the Western District of Texas, except for deadlines relating to a discovery motion brought by NST. The court in the Western District of Texas signed the order on June 11, 2024. After NST’s discovery motion has been resolved, NST and Arteris will file a stipulation of dismissal. The Company will continue to monitor this matter. Significant judgement is required in both the determination of probability and determination as to whether a loss is reasonably estimable. Intellectual property claims are inherently unpredictable and may have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Due to the inherent uncertainties and complex technical issues arising from this or any intellectual property litigation, the Company cannot predict or guarantee any result of, and cannot reasonably estimate liability if any, or range of loss that could result from such intellectual property litigation. Future revisions to such estimates could materially impact the Company’s results. The Company has no material contractual noncancelable commitments as of both June 30, 2024 and December 31, 2023.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Restricted Stock Units and Awards The following table summarizes the restricted stock unit activities under the Company’s 2016 Incentive Plan, the 2021 Incentive Plan and the 2022 Employment Inducement Incentive Plan: Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Unvested—December 31, 2023 5,732,950 $ 6.56 Granted 2,197,402 $ 7.30 Vested (1,139,835) $ 6.61 Canceled (535,587) $ 6.14 Unvested—June 30, 2024 6,254,930 $ 6.85 The total grant-date fair value of restricted stock units vested was $8.0 million and $6.9 million during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, there was $36.2 million of unamortized stock-based compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.8 years. 2021 Employee Stock Purchase Plan The Company adopted the 2021 ESPP effective on October 26, 2021. The 2021 ESPP enables elig ible employees of the Company to purchase shares of common stock at a discount to fair market value. The 2021 ESPP provides for six-month offering periods beginning May 22 and November 22 of each year, and each offering period will consist of a six-month purchase period. The first offering period began May 22, 2024 and will end on November 21, 2024. As of June 30, 2024, 1,643,749 shares of common stock were available for future issuance under the 2021 ESPP. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of our stock on the offering date or (2) the fair market value of our stock on the purchase date. As of June 30, 2024, there was $0.2 million of unamortized stock-based compensation cost related to ESPP, which is expected to be recognized over a weighted average period of 0.4 years. The fair value of shares of common stock to be issued under the 2021 ESPP is estimated using the Black-Scholes option pricing model on the first day of the offering period. The Company determines valuation assumptions for Black-Scholes as follows: 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 US Treasury zero coupon issues with an equivalent expected term of the options for each option group. Expected Term —The expected term represents the period that the Company’s stock-based awards are expected to be outstanding. The expected term assumption is based on the simplified method. The Company expects to continue using the simplified method until sufficient information about the Company’s historical behavior is available. Volatility —The Company determines the price volatility factor based on the historical volatility of the Company’s common stock. Dividend Yield —The Company has never declared or paid any cash dividend and does not currently plan to pay a cash dividend in the foreseeable future. Consequently, the Company used an expected dividend yield of zero. The following table summarizes the ESPP valuation assumptions: Three Months Ended 2024 Expected volatility 74.4% Expected term (in years) 0.5 Risk-free interest rate 5.4% Expected dividend yield 0% 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 Six Months Ended 2024 2023 2024 2023 Cost of revenue $ 186 $ 122 $ 375 $ 205 Research and development 1,788 2,485 3,396 3,914 Sales and marketing 657 737 1,380 1,422 General and administrative 1,129 938 2,266 1,726 Total stock-based compensation $ 3,760 $ 4,282 $ 7,417 $ 7,267

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective tax rate was (8.2)% and (4.9)% for the six months ended June 30, 2024 and 2023, respectively. The Company’s income tax provision was $1.3 million and $0.9 million for the six months ended June 30, 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 June 30, 2024 compared to the period ended June 30, 2023. The Company’s management continuously evaluates the need for a valuation allowance and, as of June 30, 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	6 Months Ended
	Jun. 30, 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 June 30, 2024 and 2023, and $0.1 million for both the six months ended June 30, 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 each of the three and six months ended June 30, 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, which concluded. A separate no-fee evaluation of additional Company products was also concluded. 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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (8,344)	$ (9,165)	$ (17,747)	$ (18,175)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	6 Months Ended
	Jun. 30, 2024 shares	Jun. 30, 2024 shares
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false
Paul Alpern [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 8, 2024, Paul Alpern, Vice President and General Counsel, 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 85,916 shares of the Company’s common stock until August 31, 2025.
Name	Paul Alpern
Title	Vice President and General Counsel,
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 8, 2024
Expiration Date	August 31, 2025
Arrangement Duration	480 days
Aggregate Available	85,916	85,916
Nick Hawkins [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On May 20, 2024, Nick Hawkins, Chief Financial 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 171,796 shares of the Company’s common stock until August 31, 2025.
Name	Nick Hawkins
Title	Chief Financial Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	May 20, 2024
Expiration Date	August 31, 2025
Arrangement Duration	468 days
Aggregate Available	171,796	171,796
Atig Raza [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 6, 2024, Atiq Raza, Director, as the trustee of Saiyed Atiq Raza and Nandini Saraiya 2012 Revocable Trust Dated November 26, 2012, 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 972,472 shares of the Company’s common stock until October 31, 2025.
Name	Atiq Raza
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 6, 2024
Expiration Date	October 31, 2025
Arrangement Duration	512 days
Aggregate Available	972,472	972,472
Isabelle Geday [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 6, 2024, Isabelle Geday, 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 15,550 shares of the Company’s common stock until September 8, 2025.
Name	Isabelle Geday
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 6, 2024
Expiration Date	September 8, 2025
Arrangement Duration	459 days
Aggregate Available	15,550	15,550
Wayne Cantwell [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 7, 2024, Wayne Cantwell, 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 180,000 shares of the Company’s common stock until August 31, 2025.
Name	Wayne Cantwell
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 7, 2024
Expiration Date	August 31, 2025
Arrangement Duration	450 days
Aggregate Available	180,000	180,000
Antonio Viana [Member]
Trading Arrangements, by Individual
Material Terms of Trading Arrangement		On June 12, 2024, Antonio Viana, Director, as the trustee of Viana Family Trust, terminated a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) and originally adopted on November 13, 2023 for the sale of up to 227,777 shares of the Company’s common stock until April 30, 2025. On June 13, 2024, Antonio Viana, Director, as the trustee of Viana Family Trust, adopted a Rule 10b5-1 trading arrangement of Viana Family Trust that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 223,309 shares of the Company’s common stock until September 30, 2025.
Name	Antonio Viana
Title	Director
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	June 13, 2024
Rule 10b5-1 Arrangement Terminated	true
Termination Date	June 12, 2024
Expiration Date	April 30, 2025
Arrangement Duration	534 days
Aggregate Available	227,777	227,777
Viana Family Trust [Member] | Antonio Viana [Member]
Trading Arrangements, by Individual
Expiration Date	September 30, 2025
Arrangement Duration	474 days
Aggregate Available	223,309	223,309

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 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.
Stock-based Compensation	Stock-based Compensation The Company measures equity classified stock-based awards, including stock options and RSUs granted to employees, directors, and non-employees based on the estimated fair values of the awards on the date of the grant. Stock-based compensation expense for awards with service-based vesting only is recognized on a straight-line basis over the requisite service period which is generally the vesting period of such awards, as a component of operating expenses within the consolidated statements of income (loss). For awards that include performance conditions stock-based compensation expense is recognized on a graded vesting basis over the requisite service period. Compensation expense is not recognized until the performance condition becomes probable. The Company accounts for forfeitures related to these awards as they occur. The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. This valuation model for stock-based compensation expense requires the Company to make assumptions and judgments about the variables used in the calculation including the expected term, the volatility of the Company’s common stock, and an assumed risk-free interest rate. The fair value of RSUs granted is measured as the fair value per share of the Company’s common stock on the date of grant. The Company adopted the 2021 Employee Stock Purchase Plan (the 2021 ESPP) effective on October 26, 2021. The first offering under the 2021 ESPP began on May 22, 2024. E ligible employees are entitled to purchase common stock at the end of six-month offering periods, by means of limited payroll deductions, at a 15% discount from the fair market value of the common stock as of specific dates. The fair value of shares of common stock to be issued under the 2021 ESPP is estimated using the Black-Scholes option pricing model. Stock-based compensation expense for ESPP awards is recognized on a straight-line basis over the term of each ESPP offering period.
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 $2.8 million and $3.4 million as of June 30, 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. 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 periods presented.

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 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 June 30, December 31, Customer A 27 % 15 % Customer B * 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 Six Months Ended 2024 2023 2024 2023 Customer A 14 % * 14 % * * Customer accounted for less than 10% of total revenue during the period.

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Licensing, support and maintenance $ 13,553 $ 12,998 $ 25,292 $ 24,842 Variable royalties 971 1,700 1,789 2,990 Other 51 36 441 56 Total $ 14,575 $ 14,734 $ 27,522 $ 27,888
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 June 30, December 31, Accounts receivable, net $ 8,947 $ 12,003 Contract assets, current portion $ 232 $ 312 Contract assets, noncurrent portion $ 31 $ 566 Deferred revenue $ 61,442 $ 56,709
Capitalized Direct Commission Costs	Total capitalized direct commission costs were as follows (in thousands): As of June 30, December 31, Short-term commission capitalized in prepaid expenses and other current assets $ 2,248 $ 2,408 Long-term commission capitalized in other assets 1,220 1,353 Total $ 3,468 $ 3,761

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended 2024 2023 2024 2023 Numerator: Net loss $ (8,344) $ (9,165) $ (17,747) $ (18,175) Denominator: Weighted-average shares outstanding, basic and diluted 38,476,934 35,250,157 38,092,996 34,925,800 Net loss per share, basic and diluted $ (0.22) $ (0.26) $ (0.47) $ (0.52)
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 June 30, 2024 June 30, 2023 Stock options 2,285,281 3,225,714 Restricted stock units 6,254,930 7,163,008 Restricted common shares issued for business combination 234,859 331,574 Shares committed under the 2021 ESPP 83,445 — Total 8,858,515 10,720,296

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2024 Amortized Cost Unrealized Losses Aggregate Fair Value Assets: Money market funds $ 16,117 $ — $ 16,117 U.S. government agency securities 15,131 (21) 15,110 U.S. treasury securities 8,678 (2) 8,676 Corporate bonds 8,225 (13) 8,212 Commercial paper 3,248 (6) 3,242 Total financial assets $ 51,399 $ (42) $ 51,357 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): June 30, 2024 Less than one year $ 43,233 1-2 years 8,124 Total $ 51,357

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2024 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market funds $ 16,117 $ — $ — $ 16,117 U.S. treasury securities — 3,487 — 3,487 Total cash equivalents 16,117 3,487 — 19,604 Short-term investments: Commercial paper — 3,242 — 3,242 Corporate bonds — 7,710 — 7,710 U.S. government agency securities — 7,488 — 7,488 U.S. treasury securities — 5,189 — 5,189 Total short-term investments — 23,629 — 23,629 Long-term investments: Corporate bonds — 502 — 502 U.S. government agency securities — 7,622 — 7,622 Total long-term investments — 8,124 — 8,124 Total financial assets $ 16,117 $ 35,240 $ — $ 51,357 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)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets, net consisted of the following as of June 30, 2024 (in thousands): Gross Fair Value Accumulated Amortization Net Book Value Developed technology $ 3,090 $ (1,516) $ 1,574 Customer relationships 1,830 (630) 1,200 IPR&D 500 — 500 Trade name and other 200 (8) 192 Total intangibles $ 5,620 $ (2,154) $ 3,466 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 June 30, 2024 is as follows (in thousands) : Fiscal year ending December 31, Amount Remainder of 2024 $ 392 2025 756 2026 444 2027 427 2028 416 Thereafter 381 Total future amortization expense $ 2,816

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Operating Lease Costs	Total operating lease related costs were as follows (in thousands): Three Months Ended Six Months Ended 2024 2023 2024 2023 Operating lease cost $ 322 $ 279 $ 646 $ 553 Short-term lease cost 9 36 13 115 Total lease cost $ 331 $ 315 $ 659 $ 668
Maturities of Operating Lease Liabilities	Maturities of operating lease liabilities as of June 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 594 2025 1,100 2026 1,055 2027 1,070 2028 827 Thereafter 253 Total undiscounted cash flows 4,899 Less: imputed interest (946) Present value of lease liabilities $ 3,953 Operating lease liabilities, current $ 830 Operating lease liabilities, non-current 3,123 Total lease liabilities $ 3,953

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Vendor Financing Arrangements	Expected cash flows related to vendor financing arrangements as of June 30, 2024 were as follows (in thousands): Fiscal year ending December 31, Amount Remainder of 2024 $ 1,360 2025 1,089 2026 545 Total undiscounted cash flows 2,994 Less: Imputed interest (200) Present value of vendor financing arrangements $ 2,794 Vendor financing arrangements, current $ 1,905 Vendor financing arrangements, noncurrent 889 $ 2,794

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Restricted Stock Units Activity	The following table summarizes the restricted stock unit activities under the Company’s 2016 Incentive Plan, the 2021 Incentive Plan and the 2022 Employment Inducement Incentive Plan: Restricted Stock Units Number of Shares Weighted-Average Grant Date Fair Value Unvested—December 31, 2023 5,732,950 $ 6.56 Granted 2,197,402 $ 7.30 Vested (1,139,835) $ 6.61 Canceled (535,587) $ 6.14 Unvested—June 30, 2024 6,254,930 $ 6.85
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	The following table summarizes the ESPP valuation assumptions: Three Months Ended 2024 Expected volatility 74.4% Expected term (in years) 0.5 Risk-free interest rate 5.4% Expected dividend yield 0%
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 Six Months Ended 2024 2023 2024 2023 Cost of revenue $ 186 $ 122 $ 375 $ 205 Research and development 1,788 2,485 3,396 3,914 Sales and marketing 657 737 1,380 1,422 General and administrative 1,129 938 2,266 1,726 Total stock-based compensation $ 3,760 $ 4,282 $ 7,417 $ 7,267

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	May 22, 2024	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Restricted cash		$ 388	$ 400	$ 388
Share-based compensation arrangement by share-based payment award, discount from market price, purchase date	15%

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	6 Months Ended
	Mar. 31, 2024	Jun. 30, 2024
Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	15%	27%
Customer B
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)	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Customer A | Revenue from Contract with Customer Benchmark | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	14%	14%

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenue	$ 14,575	$ 14,734	$ 27,522	$ 27,888
Licensing, support and maintenance
Disaggregation of Revenue [Line Items]
Total revenue	13,553	12,998	25,292	24,842
Variable royalties
Disaggregation of Revenue [Line Items]
Total revenue	971	1,700	1,789	2,990
Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 51	$ 36	$ 441	$ 56

REVENUE - Contract Balances on

REVENUE - Contract Balances on Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 8,947	$ 12,003
Contract assets, current portion	232	312
Contract assets, noncurrent portion	31	566
Deferred revenue	$ 61,442	$ 56,709

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Deferred revenue, revenue recognized	$ 11.5	$ 8.9	$ 20.6	$ 16.5
Unsatisfied performance obligations	75.5		75.5
Revenue, remaining performance obligation, flexible spending account commitment	5.6		5.6		$ 6.2
Amortization of capitalized sales commissions	0.9	$ 1	1.8	$ 1.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Unsatisfied performance obligations, excluding flexible spending account commitment	$ 43.1		$ 43.1
Remaining performance obligation, expected timing of satisfaction	12 months		12 months

REVENUE - Capitalized Direct Co

REVENUE - Capitalized Direct Commission Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Short-term commission capitalized in prepaid expenses and other current assets	$ 2,248	$ 2,408
Long-term commission capitalized in other assets	1,220	1,353
Total	$ 3,468	$ 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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net loss	$ (8,344)	$ (9,165)	$ (17,747)	$ (18,175)
Denominator:
Weighted-average shares outstanding - basic (in shares)	38,476,934	35,250,157	38,092,996	34,925,800
Weighted-average shares outstanding - diluted (in shares)	38,476,934	35,250,157	38,092,996	34,925,800
Net loss per share, basic (in dollars per share)	$ (0.22)	$ (0.26)	$ (0.47)	$ (0.52)
Net loss per share, diluted (in dollars per share)	$ (0.22)	$ (0.26)	$ (0.47)	$ (0.52)

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	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	8,858,515	10,720,296
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,285,281	3,225,714
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)	6,254,930	7,163,008
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
Shares committed under the 2021 ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	83,445	0

INVESTMENTS - Debt Securities,

INVESTMENTS - Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 51,399	$ 49,756
Unrealized Losses	(42)	40
Aggregate Fair Value	51,357	49,796
U.S. government agency securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	15,131	19,461
Unrealized Losses	(21)	29
Aggregate Fair Value	15,110	19,490
U.S. treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	8,678	10,630
Unrealized Losses	(2)	3
Aggregate Fair Value	8,676	10,633
Money market funds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	16,117	8,026
Unrealized Losses	0	0
Aggregate Fair Value	16,117	8,026
Corporate bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	8,225	5,649
Unrealized Losses	(13)	9
Aggregate Fair Value	8,212	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	3,248	990
Unrealized Losses	(6)	(1)
Aggregate Fair Value	$ 3,242	$ 989

INVESTMENTS - Debt Securities_2

INVESTMENTS - Debt Securities, Held-to-maturity, Nonaccrual (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Investments, Debt and Equity Securities [Abstract]
Less than one year	$ 43,233
1-2 years	8,124
Total	$ 51,357

INVESTMENTS - Narrative (Detail

INVESTMENTS - Narrative (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Continue net unrealized loss position	$ 2,200,000	$ 3,700,000
Allowance for credit loss	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 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	$ 2.8	$ 3.4

FAIR VALUE MEASUREMENTS - Fair

FAIR VALUE MEASUREMENTS - Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	$ 19,604	$ 10,517
Total short-term investments	23,629	27,477
Total long-term investments	8,124	11,802
Total financial assets	51,357	49,796
Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	16,117	8,026
Total short-term investments	0	0
Total long-term investments	0	0
Total financial assets	16,117	8,026
Level 2
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	3,487	2,491
Total short-term investments	23,629	27,477
Total long-term investments	8,124	11,802
Total financial assets	35,240	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	16,117	8,026
Money market funds | Level 1
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]
Total cash equivalents	16,117	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	3,487	2,491
Total short-term investments	5,189	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	3,487	2,491
Total short-term investments	5,189	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	3,242	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	3,242	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	7,710	3,696
Total long-term investments	502	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	7,710	3,696
Total long-term investments	502	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	7,488	9,650
Total long-term investments	7,622	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	7,488	9,650
Total long-term investments	7,622	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	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 5,620	$ 5,620
Finite-lived intangible assets, accumulated amortization	(2,154)	(1,762)
Total future amortization expense	2,816
Intangible assets, net	3,466	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	(8)
Total future amortization expense	192
Developed technology
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	3,090	3,090
Finite-lived intangible assets, accumulated amortization	(1,516)	(1,247)
Total future amortization expense	1,574	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	(630)	(515)
Total future amortization expense	$ 1,200	$ 1,315

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 200,000	$ 200,000	$ 400,000	$ 400,000
Goodwill	4,178,000		4,178,000		$ 4,178,000
Goodwill impairments	$ 0	$ 0	$ 0	$ 0

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2024	$ 392
2025	756
2026	444
2027	427
2028	416
Thereafter	381
Total future amortization expense	$ 2,816

LEASES - Operating Lease Costs

LEASES - Operating Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease cost	$ 322	$ 279	$ 646	$ 553
Short-term lease cost	9	36	13	115
Total lease cost	$ 331	$ 315	$ 659	$ 668

LEASES - Narrative (Details)

LEASES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Leases [Abstract]
Weighted average remaining lease term, operating lease	4 years 4 months 24 days		4 years 4 months 24 days		4 years 9 months 18 days
Weighted average discount rate, operating lease	10%		10%		10%
Cash payments	$ 0.2	$ 0.3	$ 0.5	$ 0.6

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Remainder of 2024	$ 594
2025	1,100
2026	1,055
2027	1,070
2028	827
Thereafter	253
Total undiscounted cash flows	4,899
Less: imputed interest	(946)
Present value of lease liabilities	3,953
Operating lease liabilities, current	830	$ 781
Operating lease liabilities, non-current	$ 3,123	$ 3,610

BORROWINGS - Narrative (Details

BORROWINGS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Interest expense	$ 0.1	$ 0.1	$ 0.1	$ 0.1
Vendor Financing Arrangements
Debt Instrument [Line Items]
Interest rate, effective percentage	10%		10%

BORROWINGS - Schedule of Vendor

BORROWINGS - Schedule of Vendor Financing Arrangements (Details) - Vendor Financing Arrangements $ in Thousands	Jun. 30, 2024 USD ($)
Debt Instrument [Line Items]
Remainder of 2024	$ 1,360
2025	1,089
2026	545
Total undiscounted cash flows	2,994
Less: Imputed interest	(200)
Present value of vendor financing arrangements	2,794
Vendor financing arrangements, current	1,905
Vendor financing arrangements, noncurrent	$ 889

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 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 - Summ

STOCK-BASED COMPENSATION - Summary of Restricted Stock Units Activity (Details) - Restricted stock units	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, Balance at beginning of period (in shares) | shares	5,732,950
Granted (in shares) | shares	2,197,402
Vested (in shares) | shares	(1,139,835)
Forfeited (in shares) | shares	(535,587)
Unvested, Balance at end of period (in shares) | shares	6,254,930
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unvested, Balance at beginning of period (in dollars per share) | $ / shares	$ 6.56
Granted (in dollars per share) | $ / shares	7.30
Vested (in dollars per share) | $ / shares	6.61
Forfeited (in dollars per share) | $ / shares	6.14
Unvested, Balance at end of period (in dollars per share) | $ / shares	$ 6.85

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 3,760	$ 4,282	$ 7,417	$ 7,267
Restricted stock units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Grants in period, vested, grant date fair value			8,000	$ 6,900
Nonvested award, excluding options, unrecognized	$ 36,200		$ 36,200
Nonvested award, unrecognized, period for recognition			2 years 9 months 18 days
Shares committed under the 2021 ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Nonvested award, unrecognized, period for recognition			4 months 24 days
Share-Based Compensation Arrangement By Share-based Payment Award, Purchase Period			6 months
Capital shares reserved for future issuance (in shares)	1,643,749		1,643,749
Purchase price of common stock, percent			85%
Total stock-based compensation			$ 200

STOCK-BASED COMPENSATION - Sche

STOCK-BASED COMPENSATION - Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) - Shares committed under the 2021 ESPP	3 Months Ended
	Jun. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	74.40%
Expected term (in years)	6 months
Risk-free interest rate	5.40%
Expected dividend yield	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		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 3,760	$ 4,282	$ 7,417	$ 7,267
Shares committed under the 2021 ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation			200
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	186	122	375	205
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,788	2,485	3,396	3,914
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	657	737	1,380	1,422
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,129	$ 938	$ 2,266	$ 1,726

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate			(8.20%)	(4.90%)
Income tax expense (benefit)	$ 975,000	$ 556,000	$ 1,345,000	$ 851,000
Unrecognized tax benefits	3,500,000	2,600,000	3,500,000	2,600,000
Income tax penalties and interest accrued related to unrecognized tax benefits	$ 0	$ 0	$ 0	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Lease payment due to related party	$ 200,000	$ 300,000	$ 500,000	$ 600,000
Restricted stock units
Related Party Transaction [Line Items]
Granted unvested options (in shares)	6,254,930		6,254,930		5,732,950
Director
Related Party Transaction [Line Items]
Lease payment due to related party	$ 100,000	100,000	$ 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	$ 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		$ 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		$ 19,445
Director | Isabelle Geday | Consulting Agreement | Restricted stock units
Related Party Transaction [Line Items]
Granted unvested options (in shares)	62,200		62,200
Director | Isabelle Geday | Consulting Agreement | Convertible Preferred Stock
Related Party Transaction [Line Items]
Options outstanding (in shares)	455,000		455,000