Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | Microvision, Inc. | ||
Entity Central Index Key | 65,770 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 78,613,000 | ||
Entity Public Float | $ 151.8 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 16,966 | $ 15,139 |
Accounts receivable, net of allowances of $26 and $26, respectively | 15 | 245 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 680 | 125 |
Inventory | 4,541 | 1,233 |
Other current assets | 945 | 606 |
Total current assets | 23,147 | 17,348 |
Property and equipment, net | 3,251 | 1,537 |
Restricted cash | 435 | 435 |
Intangible assets | 602 | 718 |
Other assets | 2,262 | 68 |
Total assets | 29,697 | 20,106 |
Current liabilities | ||
Accounts payable | 3,063 | 2,195 |
Accrued liabilities | 5,864 | 3,704 |
Deferred revenue | 999 | 999 |
Billings on uncompleted contracts in excess of related costs | 5 | 168 |
Other current liabilities | 10,142 | 178 |
Total current liabilities | 20,073 | 7,244 |
Deferred revenue, net of current portion | 4,151 | 5,150 |
Deferred rent, net of current portion | 302 | 185 |
Other long-term liabilities | 305 | 53 |
Total liabilities | 24,831 | 12,632 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity (deficit) | ||
Preferred stock, par value $0.001; 25,000 shares authorized; 0 and 0 shares issued and outstanding | 0 | 0 |
Common stock, par value $0.001; 100,000 shares authorized; 78,597 and 68,093 shares issued and outstanding at December 31, 2017 and 2016, respectively | 79 | 68 |
Additional paid-in capital | 528,873 | 507,249 |
Accumulated deficit | (524,086) | (499,843) |
Total shareholders' equity (deficit) | 4,866 | 7,474 |
Total liabilities and shareholders' equity (deficit) | $ 29,697 | $ 20,106 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Allowance for doubtful accounts receivable, current | $ 26 | $ 26 |
Stockholders equity | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000 | 25,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 78,597 | 68,093 |
Common stock, shares outstanding | 78,597 | 68,093 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Product revenue | $ 2,300 | $ 12,849 | $ 6,452 |
Royalty revenue | 1,568 | 1,803 | 1,165 |
Contract revenue | 7,023 | 109 | 1,571 |
Total revenue | 10,891 | 14,761 | 9,188 |
Cost of product revenue | 4,359 | 10,320 | 6,384 |
Cost of contract revenue | 5,517 | 54 | 796 |
Total cost of revenue | 9,876 | 10,374 | 7,180 |
Gross profit | 1,015 | 4,387 | 2,008 |
Research and development expense | 15,096 | 12,134 | 8,680 |
Sales, marketing, general and administrative expense | 10,156 | 8,743 | 7,879 |
Gain on sale of previously reserved inventory | 0 | (32) | (1) |
Total operating expenses | 25,252 | 20,845 | 16,558 |
Loss from operations | (24,237) | (16,458) | (14,550) |
Other income (expense), net | (6) | (14) | 8 |
Net loss | $ (24,243) | $ (16,472) | $ (14,542) |
Net loss per share - basic and diluted | $ (0.33) | $ (0.32) | $ (0.31) |
Weighted-average shares outstanding - basic and diluted | 72,786 | 51,958 | 46,540 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional paid-in capital | Accumulated deficit | Total |
Beginning balances at Dec. 31, 2014 | $ 45 | $ 475,656 | $ (468,829) | $ 6,872 |
Beginning balances, shares at Dec. 31, 2014 | 44,758 | |||
Share-based compensation expense | $ 0 | 1,011 | 0 | 1,011 |
Share-based compensation expense, shares | 86 | |||
Sales of common stock and warrants | $ 1 | 3,205 | 0 | 3,206 |
Sales of common stock and warrants, shares | 1,069 | |||
Exchange of warrants | 0 | |||
Exercise of warrants and options | $ 1 | 3,299 | 0 | 3,300 |
Exercise of warrants and options, shares | 1,510 | |||
Net loss | $ 0 | 0 | (14,542) | (14,542) |
Ending balances at Dec. 31, 2015 | $ 47 | 483,171 | (483,371) | (153) |
Ending balances, shares at Dec. 31, 2015 | 47,423 | |||
Share-based compensation expense | $ 0 | 1,223 | 0 | 1,223 |
Share-based compensation expense, shares | 87 | |||
Exercise of options | $ 0 | 7 | 0 | 7 |
Exercise of options, shares | 4 | |||
Sales of common stock and warrants | $ 21 | 22,848 | 0 | 22,869 |
Sales of common stock and warrants, shares | 20,579 | |||
Net loss | $ 0 | 0 | (16,472) | (16,472) |
Ending balances at Dec. 31, 2016 | $ 68 | 507,249 | (499,843) | 7,474 |
Ending balances, shares at Dec. 31, 2016 | 68,093 | |||
Share-based compensation expense | $ 0 | 1,288 | 0 | 1,288 |
Share-based compensation expense, shares | 92 | |||
Sales of common stock and warrants | $ 11 | 19,345 | 0 | 19,356 |
Sales of common stock and warrants, shares | 9,906 | |||
Exercise of warrants and options | $ 0 | 991 | 0 | 991 |
Exercise of warrants and options, shares | 506 | |||
Net loss | $ 0 | 0 | (24,243) | (24,243) |
Ending balances at Dec. 31, 2017 | $ 79 | $ 528,873 | $ (524,086) | $ 4,866 |
Ending balances, shares at Dec. 31, 2017 | 78,597 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net loss | $ (24,243) | $ (16,472) | $ (14,542) |
Adjustments to reconcile net loss to net cash used in operations: | |||
Depreciation | 1,141 | 1,120 | 429 |
Amortization of intangible assets | 116 | 127 | 128 |
Non-cash share-based compensation expense | 1,288 | 1,223 | 1,007 |
Inventory write-downs | 1,004 | 187 | 287 |
Other non-cash adjustments | (42) | 27 | (62) |
Change in: | |||
Accounts receivable, net | 230 | 1,442 | (1,018) |
Costs and estimated earnings in excess of billings on uncompleted contracts | (555) | (125) | 0 |
Inventory | (4,312) | (558) | (1,033) |
Other current and non-current assets | (2,533) | (18) | (147) |
Accounts payable | 1,147 | (174) | 493 |
Accrued liabilities | 2,226 | 245 | 572 |
Deferred revenue | (999) | (2,122) | 8,271 |
Billings on uncompleted contracts in excess of related costs | (163) | 168 | (230) |
Other current liabilities | 9,964 | 56 | 18 |
Other long-term liabilities | 252 | 53 | 0 |
Net cash used in operating activities | (15,479) | (14,821) | (5,827) |
Cash flows from investing activities | |||
Proceeds on sale of property and equipment | 59 | 4 | 0 |
Purchases of property and equipment | (3,100) | (895) | (1,140) |
Net cash used in investing activities | (3,041) | (891) | (1,140) |
Cash flows from financing activities | |||
Principal payments under capital leases and long-term debt | 0 | (15) | 0 |
Net proceeds from issuance of common stock and warrants | 20,347 | 22,978 | 6,506 |
Net cash provided by financing activities | 20,347 | 22,963 | 6,506 |
Net increase (decrease) in cash and cash equivalents | 1,827 | 7,251 | (461) |
Cash and cash equivalents, at beginning of period | 15,139 | 7,888 | 8,349 |
Cash and cash equivalents, at end of period | 16,966 | 15,139 | 7,888 |
Supplemental schedule of non-cash investing and financing activities | |||
Non-cash additions to property and equipment | 165 | 351 | 165 |
Issuance of common stock for commitment fee | $ 0 | $ 721 | $ 0 |
The Company and Liquidity - Not
The Company and Liquidity - Note 1 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
The Company and liquidty - Note 1 | 1. THE COMPANY AND LIQUIDITY MicroVision, Inc. is a pioneer in LBS technology that we market under our brand name PicoP®. We have developed our proprietary PicoP® scanning technology that can be adopted by our customers to create high-resolution miniature projection and three-dimensional sensing and image capture solutions. PicoP® scanning technology is based on our patented expertise in MEMS, laser diodes, opto-mechanics, and electronics and how those elements are packaged into a small form factor, lower power scanning engine that can display, interact and sense, depending on the needs of the application. For display, the engine can project a high-quality image on any surface (pico projection), or a retina (AR). For sensing, we use IR lasers to capture three-dimensional data in the form of a point cloud. Interactivity uses the 3D sensing function and the display function to simultaneously project an image that the user can then interact with as one would a touch screen. We have incurred significant losses since inception and expect to incur a significant loss during the fiscal year ending December 31, 2018. We have funded operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales and licensing activities. At December 31, 2017, we had $17.0 million in cash and cash equivalents. Based on our current operating plan that includes expected proceeds from a development contract signed in April 2017 with a major technology company, we anticipate that we have sufficient cash and cash equivalents to fund our operations into the third quarter of 2018. We will require additional capital to fund our operating plan past that time. We plan to obtain additional capital through the issuance of equity or debt securities, product sales and/or licensing activities. There can be no assurance that additional capital will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate capital resources are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in our production capabilities or research and development projects, staff, operating costs, and capital expenditures. We are introducing new technology and products into an emerging market which creates significant uncertainty about our ability to accurately project revenue, costs and cash flows. Our capital requirements will depend on many factors, including, but not limited to, the commercial success of our laser beam scanning (LBS) engines, the rate at which original design manufacturers (ODMs) or original equipment manufacturers (OEMs) introduce products incorporating our PicoP® scanning technology and the market acceptance and competitive position of such products. If revenues are less than we anticipate, if we fail to meet milestones for future payments or have to repay amounts already received under our April 2017 development contract (refer to Note 3), if the mix of revenues and the associated margins vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to fund our operations. In addition, our operating plan provides for the development of strategic relationships with suppliers of components and systems and equipment manufacturers that may require additional investments by us. These factors raise substantial doubt regarding our ability to continue as a going concern. These financial statements were prepared assuming we will continue as a going concern and do not include any adjustments that might be necessary should we be unable to continue as a going concern. |
Summary of significant accounti
Summary of significant accounting policies - Note 2 | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation Abstract | |
Summary of significant accounting policies - Note 2 | 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. We have identified the following areas where estimates and assumptions have been made in preparing the financial statements: revenue recognition, inventory valuation, valuation of share-based payments, intangibles impairment assessment, depreciable lives assessment and related disclosure of contingent assets and liabilities. Cash and cash equivalents and fair value of financial instruments Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. We use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying value of our financial instruments approximates fair value due to their short maturities. Our cash equivalents are comprised of short-term highly rated money market savings accounts. Intangible assets Our intangible assets consist exclusively of purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to seventeen years. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of these assets is measured by comparison of their carrying values to the projected undiscounted net cash flows associated with the related intangible assets or group of assets over their remaining lives. Measurement of an impairment loss for our intangible assets is based on the difference between the fair value of the asset and its carrying value. Inventory Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. Inventory that will not be consumed through the normal course of business during the next twelve months is classified as "other assets" on the balance sheet. Property and equipment Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (two to five years) using the straight-line method. As our production needs change, we periodically assess the remaining estimated useful life of our production equipment. If necessary, we adjust the depreciation on our production equipment to reflect the remaining estimated useful life. Leasehold improvements are depreciated over the shorter of estimated useful lives or the lease term. Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal. Restricted cash As of December 31, 2017 and 2016, restricted cash was in money market savings accounts and serve as collateral for $435,000 in irrevocable letters of credit. The restricted cash balance includes a letter of credit which is outstanding in connection with a lease agreement for our corporate headquarters building in Redmond, Washington. The balance is required over the term of the lease, which expires in March 2023. Revenue recognition We recognize revenue when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and there are no uncertainties regarding customer acceptance, (iii) fees are fixed or determinable, and (iv) collection is reasonably assured. We generate revenue from many sources and activities. We enter into arrangements that can include various combinations of product sales, services, and licensing activities. For multiple-element arrangements, we use a hierarchy to determine the contract consideration to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third party evidence of selling price (TPE), and (iii) best estimate of selling price. To date, our sources can be classified as: product revenue, royalty revenue, contract revenue, or development revenue. Product revenue Product revenue is revenue from our sales of our products, which are LBS engines, MEMS, and ASICs. Our product sales generally include acceptance provisions. We recognize product revenue upon acceptance of the product by the customer or the expiration of the contractual acceptance period, after which there are no rights of return. Our product revenue, from period to period, may vary substantially due to the timing of product orders from customers, product shipments, production constraints and availability of components and raw materials. Fulfillment and delivery of the backlog is dependent upon the successful supply chain development and delivery of required components to us. From time to time, raw materials and manufacturing delays and components received that do not meet quality standards have resulted in delivery delays to our customers. Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. Royalty revenue Royalty revenue is revenue under license agreements to our PicoP® scanning technology. We recognize revenue on upfront license fees over the expected time frame that we provide services or have ongoing obligations under the agreement. Ongoing per unit royalties are recognized when reported by our customer to us on a quarterly basis. Currently, we recognize revenue for ongoing per unit royalties one quarter in arrears when reported by our customer, representing when such amounts are fixed and determinable, and all other revenue recognition criteria are met. Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. Contract revenue Contract revenue includes revenue from support service contracts and the sale of prototype units and evaluation kits based on our PicoP® scanning engine. Our contract revenue in a particular period is dependent upon when we enter into a contract, the value of the contracts we have entered into, and the availability of technical resources to perform work on the contracts. We recognize contract revenue related to the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period, after which there are no rights of return. We recognize contract revenue on long-term, cost plus fixed fee, and fixed price contracts using the percentage-of-completion method. Under the percentage-of-completion method, revenue is recognized as work progresses on the contract. The percentage-of-completion method relies on estimates of total expected contract revenue and costs. At the end of each period, we estimate the labor, material and other costs required to complete the contract using data provided by our technical team, project managers, vendors, outside consultants, and others and compare these to costs incurred to date. Recognized revenues are subject to amendments for actual costs incurred. Amendments to revenue and costs to complete estimates are recognized in the period in which the facts become known. In the future, amendments to estimates could significantly impact recognized revenue in any one reporting period. If we are unable to estimate costs on a contract, revenue is recognized using the completed-contract method. Under the completed-contract method, revenue and contract costs are deferred and both are recognized when all deliverables are completed. Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. Cost of product revenue Cost of product revenue includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing capabilities and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. The cost of product revenue can fluctuate significantly from period to period, depending on the product mix and volume, the level of manufacturing overhead expense and the volume of direct material purchased. Cost of contract revenue Cost of contract revenue includes both the direct and allocated indirect costs of performing on contracts and producing prototype units and evaluation kits based on our PicoP® scanning engine . Direct costs include labor, materials and other costs incurred directly in producing prototype units and evaluation kits or performing on a contract. Indirect costs include labor and other costs associated with operating our research and development department and building our technical capabilities and capacity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. Our overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activity. Concentration of credit risk and major customers and suppliers Concentration of credit risk Financial instruments that potentially subject us to a concentration of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of December 31, 2017, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2017, one commercial customer accounted for $5.8 million in revenue, representing 53% of our total revenue, a second commercial customer accounted for $2.3 million in revenue, representing 21% of our total revenue, and a third commercial customer accounted for $1.6 million in revenue, representing 14% of our total revenue. In 2016, one commercial customer accounted for $13.5 million in revenue, representing 91% of our total revenue. In 2015, the same commercial customer accounted for $9.0 million in revenue, representing 98% of our total revenue. In 2016, one commercial customer accounted for $182,000, or 74% of our net accounts receivable balance, and a second commercial customer accounted for $54,000, or 22% of our net accounts receivable balance. A significant concentration of our components and the products we sell are currently manufactured and obtained from single or limited-source suppliers, which are primarily located in foreign countries. The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in the supply chain of components from these suppliers could subject us to risks and uncertainties regarding, but not limited to, increased cost of sales, possible loss of revenues, or significant delays in product deliveries, any of which could adversely affect our financial condition and operating results. Income taxes Deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. Net loss per share Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the periods. Net loss per share, assuming dilution, is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share, assuming dilution, is equal to basic net loss per share because the effect of dilutive securities outstanding during the periods, including options and warrants computed using the treasury stock method, is anti-dilutive. The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Year Ended December 31, Numerator: 2017 2016 2015 Net loss available for common shareholders $ (24,243) $ (16,472) $ (14,542) Denominator: Weighted-average common shares outstanding 72,786 51,958 46,540 Net loss per share - basic and diluted $ (0.33) $ (0.32) $ (0.31) During each of the years ended December 31, 2017, 2016 and 2015, we excluded the following securities from net loss per share as the effect of including them would have been anti-dilutive. The shares shown represent the number of shares of common stock which would be issued upon conversion in the respective years shown below (in thousands): Year Ended December 31, 2017 2016 2015 Options outstanding and warrants exercisable 7,007 7,764 8,185 Nonvested restricted stock units 185 60 60 7,192 7,824 8,245 Research and development Research and development expense consists of compensation related costs of employees and contractors engaged in internal research and product development activities, direct material to support development programs, laboratory operations, outsourced development and processing work, and other operating expenses. We assign our research and development resources based on the business opportunity of the available projects, the skill mix of the resources available and the contractual commitments we have made to our customers. Share-based compensation We issue share-based compensation to employees in the form of stock options and restricted stock units (RSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is determined by the closing price of our common stock on the grant date. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense. The following table summarizes the amount of share-based compensation expense by line item on the Statement of Operations (in thousands): Year Ended December 31, 2017 2016 2015 Cost of product revenue $ 39 $ 37 $ 19 Research and development expense 546 350 282 Sales, marketing, general and administrative expense 703 836 706 $ 1,288 $ 1,223 $ 1,007 Reclassifications Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders' equity or cash flows, as previously reported. Recent accounting pronouncements In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-18 (ASU 2016-18), Restricted Cash. The standard requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The new guidance shall be applied using a retrospective approach. As of December 31, 2017 and 2016, we have $435,000 of restricted cash, and as such we do not expect the implementation of this standard to have a material effect on our financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15 (ASU 2016-15), Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments. The objective of ASU 2016-15 is to eliminate the diversity in practice related to the classification of certain receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. For public business entities, ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. We do not expect the implementation of this standard to have a material effect on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. The new guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The amendments must be applied on a modified retrospective basis. We anticipate the adoption of this standard will have a material impact on our financial statements. While we are continuing to assess all the potential impacts of the standard, we currently believe the most significant impact relates to our accounting for our office lease. Under the new guidance, the net present value of the obligation for our office lease will appear on the balance sheet. Currently, it is classified as an operating lease and payments are expensed in the period incurred. In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers, an updated standard on revenue recognition. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. We have chosen to implement ASU 2014-09 as of January 1, 2018 using the full retrospective approach, meaning we will restate each prior reporting period presented. We have performed a review of our revenue generated from significant product and service contracts with customers subject to ASU 2014-09, and we expect the implementation of this standard to have a material impact on our financial statements. While we are continuing to assess all potential impacts of this standard, in adopting ASU 2014-09, we expect the following significant changes to our financial statements: i. Timing of revenue recognition under the PicoP® scanning technology license agreement we signed with Sony in March 2015. Under current guidance, we have been recognizing the upfront license fee payment of $8.0 million on a straight-line basis over a period of eight years. Under the new guidance, the entire $8.0 million upfront license fee payment would have been recognized in the first quarter of 2015. The result of this change in timing will result in a decrease of $7.2 million in our beginning 2016 accumulated deficit balance and a reduction in our short-term deferred revenue balance of $1.0 million and long-term deferred revenue balance of $6.1 million. Royalty revenue for each of the years ended December 31, 2016 and 2017 will be reduced by approximately $1.0 million. ii. Timing of revenue recognition on product sales. Currently, we recognize revenue after expiration of the contractual acceptance period. Under the new guidance, we will recognize revenue when control of the product transfers to the buyer, which may occur before the expiration of the contractual acceptance period. The result of this change is a net decrease in our beginning 2016 accumulated deficit of $527,000, as well as a shift in revenue and cost recognition to earlier quarters in 2016 and 2017. iii. Timing of revenue recognition on contract sales. Under ASU 2014-09, we will allocate the transaction price of a contract with a customer to the various performance obligations in a contract based on their relative standalone selling price. Our methodologies for estimating the standalone selling price of various performance obligations will be generally consistent with our previous methodologies used to establish VSOE of fair value on multiple element arrangements. In our analysis of development contracts, only one contract resulted in a change in the timing of revenue recognition based on the allocation of standalone selling prices. There is not a material change to the timing of revenue recognition on the $24.0 million April 2017 contract. iv. Presentation of accounts receivable, contract assets, and contract liabilities (deferred revenue). Under ASU 2014-09, our rights to consideration are presented separately depending on whether those rights are conditional or unconditional. We will present our unconditional rights to consideration as "accounts receivable" in our Consolidated Balance Sheet. In contrast, separate "contract assets" will represent rights to consideration that are subject to a condition other than the passage of time, and will be comprised primarily of costs and estimated profits in excess of billings on uncompleted contracts and estimated accrued sales-based royalty revenue. Contract costs in excess of billing will be included in the "Costs and estimated earnings in excess of billings on uncompleted contracts" line of our Consolidated Balance Sheet, and sales-based royalties will be included in "Other current assets". This does not represent a change in presentation for contract fulfillment costs; however, for sales-based royalty revenue, this revenue was previously not recognized until quarterly royalty reporting had been received from Sony. Under ASU 2014-09, once quarterly royalty reporting has been received, the related contract assets will be transferred to accounts receivable. |
Long-term contracts - Note 3
Long-term contracts - Note 3 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Long-term contracts - Note 3 | 3. LONG-TERM CONTRACTS In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under this agreement, we would develop a new generation of MEMS, ASICs and related firmware for a high resolution, LBS-based product that the technology company is planning to produce. We would receive up to $24.0 million, including $14.0 million in fees for development work that is expected to span through the first quarter of 2019 and an upfront payment of $10.0 million, which payment has been received. As of December 31, 2017, we have received $4.0 million in fees for development work. The remaining development fees would be paid contingent on completion of milestones in 2018 and the first quarter of 2019. Upon successful completion of the development program, if the company decides to manufacture the product with the MicroVision display components, the $10.0 million upfront payment would be applied as a discount to future component purchases from us. If the contract is terminated by the technology company for our failure to meet milestones, the $10.0 million upfront payment is subject to repayment. In March 2015, we signed a license agreement with Sony for our PicoP® scanning technology. The license agreement granted Sony a non-exclusive license to our technology to incorporate into display modules it manufactures and sells for up to eight years. As part of the agreement, we received an $8.0 million upfront license fee in March 2015, and we will receive ongoing per unit royalties for each display module it sells. The following table summarizes the costs incurred on our revenue contracts (in thousands): December 31, 2017 2016 Costs and estimated earnings incurred on uncompleted contracts $ 4,680 $ 193 Billings on uncompleted contracts (4,005) (236) $ 675 $ (43) Included in consolidated balance sheets under the following captions: Costs and estimated earnings incurred on uncompleted contracts $ 680 $ 125 Billings on uncompleted contracts in excess of related costs (5) (168) $ 675 $ (43) |
Inventory - Note 4
Inventory - Note 4 | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure | |
Inventory - Note 4 | 4. INVENTORY Inventory consists of the following (in thousands): December 31, 2017 2016 Raw materials $ 53 $ 999 Finished goods 4,488 234 $ 4,541 $ 1,233 As of December 31, 2017, $2.2 million of materials that are not expected to be consumed during the next twelve months are classified as "other assets" on the balance sheet. We recorded inventory write-downs of $1.0 million in 2017, $187,000 in 2016, and $287,000 in 2015. |
Accrued liabilities - Note 5
Accrued liabilities - Note 5 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Accrued liabilities - Note 5 | 5. ACCRUED LIABILITIES Accrued liabilities consists of the following (in thousands): December 31, 2017 2016 Bonuses $ 1,143 $ 1,350 Adverse purchase commitments 500 500 Payroll and payroll taxes 631 398 Compensated absences 436 393 Warranty 153 316 Relocation 90 204 Deferred rent credit 37 158 Separation agreement 359 - Prepayments from customers 1,738 - Other 777 385 $ 5,864 $ 3,704 |
Property and equipment, net - N
Property and equipment, net - Note 6 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property and equipment, net - Note 6 | 6. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): December 31, 2017 2016 Production equipment $ 6,573 $ 4,580 Leasehold improvements 601 494 Computer hardware and software/lab equipment 5,515 4,968 Office furniture and equipment 1,304 1,096 13,993 11,138 Less: Accumulated depreciation (10,742) (9,601) $ 3,251 $ 1,537 Depreciation expense was $1.1 million in 2017, $1.1 million in 2016, and $429,000 in 2015. In the fourth quarter of 2016, we recorded additional depreciation expense of $297,000, as a result of a change in the estimated useful life of production equipment to be replaced in connection with our current business strategy to sell LBS engines directly to ODMs and OEMs. Capital leases are collateralized by the related assets financed and by security deposits held by the lessors under the lease agreements. The cost and accumulated depreciation of equipment under capital leases was $704,000 in each of the years ended December 31, 2017 and 2016. |
Intangible assets - Note 7
Intangible assets - Note 7 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Intangible assets - Note 7 | 7. INTANGIBLE ASSETS Our intangible assets consist exclusively of technology-based purchased patents. The gross value of our intangible assets was $1.6 million in each of the years ended December 31, 2017 and 2016. Amortization expense was $116,000 in 2017, $127,000 in 2016, and $128,000 in 2015. In 2017, 2016, and 2015 there were no impairments recorded and none of our patents were abandoned in prosecution. The following table outlines our estimated future amortization expense related to intangible assets held at December 31, 2017 (in thousands): Years Ended December 31, Amount 2018 $ 115 2019 115 2020 98 2021 80 2022 71 Thereafter 123 $ 602 |
Common stock - Note 8
Common stock - Note 8 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Common stock - Note 8 | 8. COMMON STOCK In August 2017, we raised approximately $11.5 million before issuance costs of approximately $1.1 million through an underwritten public offering of 5.5 million shares of our common stock. In August 2017, we raised approximately $3.2 million before issuance costs of approximately $26,000 through a private placement of 1.5 million shares of our common stock. During the second quarter of 2017, we received $906,000 from the exercise of warrants to purchase 460,000 shares of common stock, which warrants were issued in connection with earlier financing transactions. In May 2017, we entered into an ATM agreement with IFS Securities (DBA Brinson Patrick). During the second quarter of 2017, we received gross proceeds of $3.7 million before issuance costs of approximately $125,000 from the sale of approximately 1.7 million shares of our common stock. The agreement was terminated in June 2017 at our election without penalty. During the second quarter of 2017, we received proceeds of $2.2 million from the sale of 1.2 million shares of our common stock as part of the Common Stock Purchase agreement we entered into with Lincoln Park in September 2016. Under the terms of the agreement, in September 2016, Lincoln Park made an initial purchase of $2.0 million in shares of common stock at a purchase price of $1.50 per share. The agreement was terminated in August 2017 at our election without penalty. In December 2016, we raised approximately $2.1 million before issuance costs of approximately $18,000 through a registered direct offering of 2.0 million shares of our common stock. In December 2016, we raised approximately $13.0 million before issuance costs of approximately $1.2 million through an underwritten public offering of approximately 12.1 million shares of our common stock. In March 2016, we raised approximately $6.9 million before issuance costs of approximately $650,000 through an underwritten public offering of approximately 4.1 million shares of our common stock. In May 2015, we entered into an ATM agreement with Meyers Associates, L.P. Under the terms of the agreement, we may, from time to time, at our discretion, offer and sell shares of our common stock having an aggregate value of up to $6.0 million. As of December 31, 2016, we have received gross proceeds of approximately $3.1 million before issuance costs of approximately $109,000 from the sale of 1.2 million shares of our common stock. There were no sales under this agreement in 2017. The agreement was terminated in May 2017 in accordance with its terms without penalty. During the year ended December 31, 2015, we received approximately $3.3 million from the exercise of warrants to purchase 1.5 million shares of our common stock, which warrants were issued in connection with earlier financing transactions. During the three months ended March 31, 2015, we received gross proceeds of approximately $1.0 million as part of an ATM agreement we entered into with Meyers Associates, L.P. in June 2014. We have completed sales under this agreement, having received total proceeds of approximately $4.5 million before issuance costs of approximately $206,000 from the sale of 2.0 million shares of our common stock. |
Warrants - Note 9
Warrants - Note 9 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Warrants - Note 9 | 9. WARRANTS During the second quarter of 2017, we received $906,000 from the exercise of warrants to purchase 460,000 shares of common stock, which warrants were issued in connection with earlier financing transactions. The outstanding warrants to purchase 2.0 million shares of our common stock that we sold in our March 2014 offering have an exercise price of $2.47 per share and expire on the fifth anniversary of the date of issuance. The following table summarizes activity with respect to our common stock warrants for the periods shown below (in thousands): Warrants to Weighted- purchase average common exercise shares price Outstanding at January 1, 2015 6,526 $ 3.08 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised (1,487) 2.19 Canceled/expired - - Outstanding at December 31, 2015 5,039 3.34 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised - - Canceled/expired (1,278) 6.24 Outstanding at December 31, 2016 3,761 2.23 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised (460) 1.97 Canceled/expired (1,328) 1.97 Outstanding at December 31, 2017 1,973 $ 2.47 Exercisable at December 31, 2017 1,973 $ 2.47 There were no common stock warrants issued in 2017, 2016 or 2015. The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2017 (in thousands): Warrants outstanding Warrants exercisable Weighted- average Weighted- Weighted- Outstanding at remaining average Exercisable at average December 31, contractual term exercise December 31, exercise Range of exercise prices 2017 (in years) price 2017 price $1.92 - $3.07 1,973 1.21 $ 2.47 1,973 $ 2.47 1,973 1,973 |
Shared-Based Compensation - Not
Shared-Based Compensation - Note 10 | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs | |
Share-based compensation - Note 10 | 10. SHARE-BASED COMPENSATION We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The valuation of and accounting for share-based awards includes a number of complex and subjective estimates. These estimates include, but are not limited to, the future volatility of our stock price, future stock option exercise behaviors, estimated employee turnover, and award forfeiture rates. Description of Incentive Plans We currently have two share-based incentive plans: the 2013 Incentive Plan; and the legacy Independent Director Stock Option Plan under which we no longer issue awards. The 2013 Incentive Plan has 9.3 million shares authorized, of which 2.2 million shares were available for awards as of December 31, 2017. In June 2008, we determined not to issue additional options from the Independent Director Stock Option Plan. There were 9,000 shares relating thereto issued and outstanding as of December 31, 2017. Options Valuation Methodology and Assumptions We use the Black-Scholes option valuation model to determine the fair value of options granted and use the closing price of our common stock as the fair market value of our stock on that date. We consider historical stock price volatilities, volatilities of similar companies and other factors in determining estimates of future volatilities. We use historical lives, including post-termination exercise behavior, as the basis for estimating expected lives. Risk-free rates are based on the U.S. Treasury Yield Curve, as published by the U.S. Treasury. The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: Year Ended December 31, Assumptions (weighted-average) 2017 2016 2015 Volatility 79% 84% 98% Expected term (in years) 4.0 4.0 4.0 Risk-free rate 1.6% 1.2% 1.3% Expected dividends 0.0% 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% 8.5% Grant date fair value of options granted $ 1.03 $ 1.12 $ 2.20 Options Activity and Positions The following table summarizes activity and positions with respect to options for the periods shown below (in thousands): Weighted-average remaining Aggregate Weighted-average contractual intrinsic Options Shares exercise price term (in years) value Outstanding as of January 1, 2015 2,427 $ 6.72 7.4 $ 18,700 Granted 849 3.23 - - Exercised (23) 1.88 - - Forfeited or expired (107) 13.98 - - Outstanding as of December 31, 2015 3,146 5.56 7.3 1,613 Granted 1,167 1.83 - - Exercised (3) 1.77 - - Forfeited or expired (307) 12.58 - - Outstanding as of December 31, 2016 4,003 3.94 7.3 4 Granted 1,724 1.76 - - Exercised (46) 1.87 - - Forfeited or expired (647) 6.09 - - Outstanding as of December 31, 2017 5,034 $ 2.94 6.6 $ 53 Vested and expected to vest as of December 31, 2017 4,729 $ 3.00 6.4 $ 49 Exercisable as of December 31, 2017 2,555 $ 3.90 4.5 $ 25 The intrinsic value of options exercised during the year ended December 31, 2017 was $40,000 compared to $3,000 in 2016 and $29,000 in 2015. The total grant date fair value of options vested during the years ended December 31, 2017, 2016 and 2015 was $1.0 million, $998,000, and $591,000, respectively. As of December 31, 2017, our unrecognized share-based compensation was $2.3 million related to options, which we plan to amortize over the next 2.7 years. As of December 31, 2017, our unrecognized share-based compensation related to the RSUs was $244,000, which we plan to amortize over the next 3.1 years. |
Commitments and contingencies -
Commitments and contingencies - Note 11 | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure Footnote | |
Commitments and contingencies - Note 11 | 11. COMMITMENTS AND CONTINGENCIES Litigation On March 31, 2014, Asia Optical Co., Inc., a supplier pursuant to an agreement entered into in 2008, filed a complaint for arbitration with the American Arbitration Association, claiming that we ordered products from them and failed to take delivery of and pay for such products. The relief sought in the complaint is $3.6 million plus attorneys' fees, interest and arbitration costs. We contest the claim and are defending against it. An adverse outcome of these proceedings could materially and adversely affect our financial condition. At this stage, we cannot predict the likelihood of an unfavorable outcome or the range of potential loss. We are also subject to various claims and pending or threatened lawsuits in the normal course of business. We are not currently party to any legal proceedings that management believes are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows. Purchase commitments At December 31, 2017, we have $4.8 million in open purchase obligations that represent commitments to purchase inventory, materials, capital equipment, and other goods used in the normal operation of our business. Lease commitments We lease our office space and certain equipment under operating leases with initial or remaining terms in excess of one year. Future minimum rental commitments under operating leases for years ending December 31, are as follows (in thousands): Operating Years Ended December 31, leases 2018 $ 625 2019 652 2020 666 2021 676 2022 696 Thereafter 175 Total minimum lease payments $ 3,490 Net rent expense was $531,000 in 2017, $483,000 in 2016, and $465,000 in 2015. Adverse purchase commitments We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products. We continuously assess our outstanding commitments and recognize a loss on purchase commitments, when required, if such commitments are in excess of our product needs or the costs are not expected to be recoverable. As of December 31, 2017, we have $500,000 accrued for commitments to purchase materials for the discontinued SHOWWX TM |
Income taxes - Note 12
Income taxes - Note 12 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income taxes - Note 12 | 12. INCOME TAXES A provision for income taxes has not been recorded for 2017, 2016 and 2015, due to the valuation allowances placed against the net operating losses and deferred tax assets arising during such periods. A valuation allowance has been recorded for all deferred tax assets. Based on our history of losses since inception, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets. At December 31, 2017, we have net operating loss carryforwards of approximately $391.5 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $7.4 million. The net operating loss carryforwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2018 to 2037, if not previously used. On December 22, 2017, legislation commonly known as the Tax Cuts and Jobs Act, or the Tax Act, was signed in to law. The Tax Act, among other changes, reduces the U.S. federal corporate tax rate from 35% to 21%, requires taxpayers to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. On December 31, 2017, we did not have any foreign subsidiaries and the international aspects of the Tax Act are not applicable. In connection with the initial analysis of the impact of the Tax Act, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. As a result, we recorded a decrease in net deferred tax assets of $64.3 million with a corresponding net adjustment to deferred income tax expense of $64.3 million. These adjustments were fully offset by a decrease in the valuation allowance for the year ended December 31, 2017. We have completed and recorded the adjustments necessary under Staff Accounting Bulletin No. 118 related to the Tax Act. In certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our shareholders during any three year period would result in limitations on our ability to use a portion of our net operating loss carryforwards. Deferred tax assets are summarized as follows (in thousands): December 31, 2017 2016 Deferred tax assets Reserves $ 1,561 $ 2,351 Net operating loss carryforwards 82,210 126,335 R&D credit carryforwards 7,435 6,998 Depreciation/amortization deferred 13,005 20,024 Deferred revenue 1,081 2,091 Other 5,944 9,045 Net deferred taxes before valuation allowance 111,236 166,844 Less: Valuation allowance (111,236) (166,844) Deferred tax assets $ - $ - Certain net operating losses arise from the deductibility for tax purposes of compensation under nonqualified stock options equal to the difference between the fair value of the stock on the date of exercise and the exercise price of the options. For financial reporting purposes, the tax effect of this deduction, when recognized, is accounted for as a credit to shareholders' equity. We did not have any unrecognized tax benefits at December 31, 2017 or 2016. We recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2017, 2016, and 2015, we did not recognize any interest or penalties. We file income tax returns in the U.S. federal jurisdiction and various states. Due to our operating loss and credit carryforwards, the U.S. federal statute of limitations remains open for 1998 and onward. |
Retirement savings plan - Note
Retirement savings plan - Note 13 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Retirement savings plan - Note 13 | 13. RETIREMENT SAVINGS PLAN We have a retirement savings plan that qualifies under Internal Revenue Code Section 401(k). The plan covers all qualified employees. Contributions to the plan are made at the discretion of our Board of Directors. During the years ended December 31, 2017, 2016, and 2015 we contributed $278,000, $214,000, and $108,000 to the plan, respectively. |
Quarterly financial information
Quarterly financial information (unaudited) - Note 14 | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Quarterly financial information (unaudited) - Note 14 | 14. QUARTERLY FINANCIAL INFORMATION (Unaudited) The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2017 December 31, September 30, June 30, March 31, Revenue $ 2,560 $ 6,086 $ 1,453 $ 792 Gross profit 10 243 508 254 Net loss (7,861) (5,241) (5,494) (5,647) Net loss per share, basic and diluted (0.10) (0.07) (0.08) (0.08) Fiscal Year 2016 December 31, September 30, June 30, March 31, Revenue $ 2,905 $ 4,000 $ 4,155 $ 3,701 Gross profit 505 1,207 1,563 1,112 Net loss (5,370) (4,070) (3,476) (3,553) Net loss per share, basic and diluted (0.09) (0.08) (0.07) (0.07) |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | MicroVision, Inc. Valuation and Qualifying Accounts and Reserves Schedule Additions Balance at Charges Charges Balance beginning of to costs and to other at end of Year Ended December 31, fiscal period expenses accounts Deductions fiscal period 2015 Allowance for receivables from related parties $ 400 $ - $ - $ (30) $ 370 Tax valuation allowance 156,671 - 4,489 - 161,160 2016 Allowance for receivables from related parties $ 370 $ - $ $ (370) $ - Tax valuation allowance 161,160 - 5,684 - 166,844 2017 Allowance for receivables from related parties $ - $ - $ - $ - $ - Tax valuation allowance 166,844 (55,608) - - 111,236 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Management's Statement and Policies (Policies) | MicroVision, Inc. is a pioneer in LBS technology that we market under our brand name PicoP®. We have developed our proprietary PicoP® scanning technology that can be adopted by our customers to create high-resolution miniature projection and three-dimensional sensing and image capture solutions. PicoP® scanning technology is based on our patented expertise in MEMS, laser diodes, opto-mechanics, and electronics and how those elements are packaged into a small form factor, lower power scanning engine that can display, interact and sense, depending on the needs of the application. For display, the engine can project a high-quality image on any surface (pico projection), or a retina (AR). For sensing, we use IR lasers to capture three-dimensional data in the form of a point cloud. Interactivity uses the 3D sensing function and the display function to simultaneously project an image that the user can then interact with as one would a touch screen. |
Going Concern and Management's Plan | We have incurred significant losses since inception and expect to incur a significant loss during the fiscal year ending December 31, 2018. We have funded operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales and licensing activities. At December 31, 2017, we had $17.0 million in cash and cash equivalents. Based on our current operating plan that includes expected proceeds from a development contract signed in April 2017 with a major technology company, we anticipate that we have sufficient cash and cash equivalents to fund our operations into the third quarter of 2018. We will require additional capital to fund our operating plan past that time. We plan to obtain additional capital through the issuance of equity or debt securities, product sales and/or licensing activities. There can be no assurance that additional capital will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate capital resources are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in our production capabilities or research and development projects, staff, operating costs, and capital expenditures. We are introducing new technology and products into an emerging market which creates significant uncertainty about our ability to accurately project revenue, costs and cash flows. Our capital requirements will depend on many factors, including, but not limited to, the commercial success of our laser beam scanning (LBS) engines, the rate at which original design manufacturers (ODMs) or original equipment manufacturers (OEMs) introduce products incorporating our PicoP® scanning technology and the market acceptance and competitive position of such products. If revenues are less than we anticipate, if we fail to meet milestones for future payments or have to repay amounts already received under our April 2017 development contract (refer to Note 3), if the mix of revenues and the associated margins vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to fund our operations. In addition, our operating plan provides for the development of strategic relationships with suppliers of components and systems and equipment manufacturers that may require additional investments by us. These factors raise substantial doubt regarding our ability to continue as a going concern. These financial statements were prepared assuming we will continue as a going concern and do not include any adjustments that might be necessary should we be unable to continue as a going concern. |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. We have identified the following areas where estimates and assumptions have been made in preparing the financial statements: revenue recognition, inventory valuation, valuation of share-based payments, intangibles impairment assessment, depreciable lives assessment and related disclosure of contingent assets and liabilities. |
Fair value of financial instruments | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. We use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The carrying value of our financial instruments approximates fair value due to their short maturities. |
Cash and cash equivalents | Our cash equivalents are comprised of short-term highly rated money market savings accounts. |
Intangible assets | Our intangible assets consist exclusively of purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to seventeen years. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of these assets is measured by comparison of their carrying values to the projected undiscounted net cash flows associated with the related intangible assets or group of assets over their remaining lives. Measurement of an impairment loss for our intangible assets is based on the difference between the fair value of the asset and its carrying value. |
Inventory | Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. Inventory that will not be consumed through the normal course of business during the next twelve months is classified as "other assets" on the balance sheet. |
Property and equipment | Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (two to five years) using the straight-line method. As our production needs change, we periodically assess the remaining estimated useful life of our production equipment. If necessary, we adjust the depreciation on our production equipment to reflect the remaining estimated useful life. Leasehold improvements are depreciated over the shorter of estimated useful lives or the lease term. Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal. |
Maintenance cost, policy | Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. |
Restricted cash | As of December 31, 2017 and 2016, restricted cash was in money market savings accounts and serve as collateral for $435,000 in irrevocable letters of credit. The restricted cash balance includes a letter of credit which is outstanding in connection with a lease agreement for our corporate headquarters building in Redmond, Washington. The balance is required over the term of the lease, which expires in March 2023. |
Revenue recognition | We recognize revenue when: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and there are no uncertainties regarding customer acceptance, (iii) fees are fixed or determinable, and (iv) collection is reasonably assured. We generate revenue from many sources and activities. We enter into arrangements that can include various combinations of product sales, services, and licensing activities. For multiple-element arrangements, we use a hierarchy to determine the contract consideration to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third party evidence of selling price (TPE), and (iii) best estimate of selling price. To date, our sources can be classified as: product revenue, royalty revenue, contract revenue, or development revenue. Product revenue Product revenue is revenue from our sales of our products, which are LBS engines, MEMS, and ASICs. Our product sales generally include acceptance provisions. We recognize product revenue upon acceptance of the product by the customer or the expiration of the contractual acceptance period, after which there are no rights of return. Our product revenue, from period to period, may vary substantially due to the timing of product orders from customers, product shipments, production constraints and availability of components and raw materials. Fulfillment and delivery of the backlog is dependent upon the successful supply chain development and delivery of required components to us. From time to time, raw materials and manufacturing delays and components received that do not meet quality standards have resulted in delivery delays to our customers. Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. Royalty revenue Royalty revenue is revenue under license agreements to our PicoP® scanning technology. We recognize revenue on upfront license fees over the expected time frame that we provide services or have ongoing obligations under the agreement. Ongoing per unit royalties are recognized when reported by our customer to us on a quarterly basis. Currently, we recognize revenue for ongoing per unit royalties one quarter in arrears when reported by our customer, representing when such amounts are fixed and determinable, and all other revenue recognition criteria are met. Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. Contract revenue Contract revenue includes revenue from support service contracts and the sale of prototype units and evaluation kits based on our PicoP® scanning engine. Our contract revenue in a particular period is dependent upon when we enter into a contract, the value of the contracts we have entered into, and the availability of technical resources to perform work on the contracts. We recognize contract revenue related to the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period, after which there are no rights of return. We recognize contract revenue on long-term, cost plus fixed fee, and fixed price contracts using the percentage-of-completion method. Under the percentage-of-completion method, revenue is recognized as work progresses on the contract. The percentage-of-completion method relies on estimates of total expected contract revenue and costs. At the end of each period, we estimate the labor, material and other costs required to complete the contract using data provided by our technical team, project managers, vendors, outside consultants, and others and compare these to costs incurred to date. Recognized revenues are subject to amendments for actual costs incurred. Amendments to revenue and costs to complete estimates are recognized in the period in which the facts become known. In the future, amendments to estimates could significantly impact recognized revenue in any one reporting period. If we are unable to estimate costs on a contract, revenue is recognized using the completed-contract method. Under the completed-contract method, revenue and contract costs are deferred and both are recognized when all deliverables are completed. Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. |
Cost of revenue | Cost of product revenue Cost of product revenue includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing capabilities and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. The cost of product revenue can fluctuate significantly from period to period, depending on the product mix and volume, the level of manufacturing overhead expense and the volume of direct material purchased. Cost of contract revenue Cost of contract revenue includes both the direct and allocated indirect costs of performing on contracts and producing prototype units and evaluation kits based on our PicoP® scanning engine . Direct costs include labor, materials and other costs incurred directly in producing prototype units and evaluation kits or performing on a contract. Indirect costs include labor and other costs associated with operating our research and development department and building our technical capabilities and capacity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. Our overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activity. |
Concentration of credit risk and sales to major customers | Concentration of credit risk and major customers and suppliers Concentration of credit risk Financial instruments that potentially subject us to a concentration of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of December 31, 2017, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2017, one commercial customer accounted for $5.8 million in revenue, representing 53% of our total revenue, a second commercial customer accounted for $2.3 million in revenue, representing 21% of our total revenue, and a third commercial customer accounted for $1.6 million in revenue, representing 14% of our total revenue. In 2016, one commercial customer accounted for $13.5 million in revenue, representing 91% of our total revenue. In 2015, the same commercial customer accounted for $9.0 million in revenue, representing 98% of our total revenue. In 2016, one commercial customer accounted for $182,000, or 74% of our net accounts receivable balance, and a second commercial customer accounted for $54,000, or 22% of our net accounts receivable balance. A significant concentration of our components and the products we sell are currently manufactured and obtained from single or limited-source suppliers, which are primarily located in foreign countries. The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in the supply chain of components from these suppliers could subject us to risks and uncertainties regarding, but not limited to, increased cost of sales, possible loss of revenues, or significant delays in product deliveries, any of which could adversely affect our financial condition and operating results. |
Income taxes | Deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. |
Net loss per share | Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the periods. Net loss per share, assuming dilution, is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share, assuming dilution, is equal to basic net loss per share because the effect of dilutive securities outstanding during the periods, including options and warrants computed using the treasury stock method, is anti-dilutive. |
Research and development | Research and development expense consists of compensation related costs of employees and contractors engaged in internal research and product development activities, direct material to support development programs, laboratory operations, outsourced development and processing work, and other operating expenses. We assign our research and development resources based on the business opportunity of the available projects, the skill mix of the resources available and the contractual commitments we have made to our customers. |
Share-based compensation | We issue share-based compensation to employees in the form of stock options and restricted stock units (RSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is determined by the closing price of our common stock on the grant date. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense. |
Reclassifications | Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders' equity or cash flows, as previously reported. |
Recent accounting pronouncements | In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-18 (ASU 2016-18), Restricted Cash. The standard requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The new guidance shall be applied using a retrospective approach. As of December 31, 2017 and 2016, we have $435,000 of restricted cash, and as such we do not expect the implementation of this standard to have a material effect on our financial statements. In August 2016, the FASB issued Accounting Standards Update 2016-15 (ASU 2016-15), Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments. The objective of ASU 2016-15 is to eliminate the diversity in practice related to the classification of certain receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. For public business entities, ASU 2016-15 is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update should be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. We do not expect the implementation of this standard to have a material effect on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. The new guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The amendments must be applied on a modified retrospective basis. We anticipate the adoption of this standard will have a material impact on our financial statements. While we are continuing to assess all the potential impacts of the standard, we currently believe the most significant impact relates to our accounting for our office lease. Under the new guidance, the net present value of the obligation for our office lease will appear on the balance sheet. Currently, it is classified as an operating lease and payments are expensed in the period incurred. In May 2014, the FASB issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers, an updated standard on revenue recognition. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. We have chosen to implement ASU 2014-09 as of January 1, 2018 using the full retrospective approach, meaning we will restate each prior reporting period presented. We have performed a review of our revenue generated from significant product and service contracts with customers subject to ASU 2014-09, and we expect the implementation of this standard to have a material impact on our financial statements. While we are continuing to assess all potential impacts of this standard, in adopting ASU 2014-09, we expect the following significant changes to our financial statements: i. Timing of revenue recognition under the PicoP® scanning technology license agreement we signed with Sony in March 2015. Under current guidance, we have been recognizing the upfront license fee payment of $8.0 million on a straight-line basis over a period of eight years. Under the new guidance, the entire $8.0 million upfront license fee payment would have been recognized in the first quarter of 2015. The result of this change in timing will result in a decrease of $7.2 million in our beginning 2016 accumulated deficit balance and a reduction in our short-term deferred revenue balance of $1.0 million and long-term deferred revenue balance of $6.1 million. Royalty revenue for each of the years ended December 31, 2016 and 2017 will be reduced by approximately $1.0 million. ii. Timing of revenue recognition on product sales. Currently, we recognize revenue after expiration of the contractual acceptance period. Under the new guidance, we will recognize revenue when control of the product transfers to the buyer, which may occur before the expiration of the contractual acceptance period. The result of this change is a net decrease in our beginning 2016 accumulated deficit of $527,000, as well as a shift in revenue and cost recognition to earlier quarters in 2016 and 2017. iii. Timing of revenue recognition on contract sales. Under ASU 2014-09, we will allocate the transaction price of a contract with a customer to the various performance obligations in a contract based on their relative standalone selling price. Our methodologies for estimating the standalone selling price of various performance obligations will be generally consistent with our previous methodologies used to establish VSOE of fair value on multiple element arrangements. In our analysis of development contracts, only one contract resulted in a change in the timing of revenue recognition based on the allocation of standalone selling prices. There is not a material change to the timing of revenue recognition on the $24.0 million April 2017 contract. iv. Presentation of accounts receivable, contract assets, and contract liabilities (deferred revenue). Under ASU 2014-09, our rights to consideration are presented separately depending on whether those rights are conditional or unconditional. We will present our unconditional rights to consideration as "accounts receivable" in our Consolidated Balance Sheet. In contrast, separate "contract assets" will represent rights to consideration that are subject to a condition other than the passage of time, and will be comprised primarily of costs and estimated profits in excess of billings on uncompleted contracts and estimated accrued sales-based royalty revenue. Contract costs in excess of billing will be included in the "Costs and estimated earnings in excess of billings on uncompleted contracts" line of our Consolidated Balance Sheet, and sales-based royalties will be included in "Other current assets". This does not represent a change in presentation for contract fulfillment costs; however, for sales-based royalty revenue, this revenue was previously not recognized until quarterly royalty reporting had been received from Sony. Under ASU 2014-09, once quarterly royalty reporting has been received, the related contract assets will be transferred to accounts receivable. |
Adverse purchase commitments | We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products. We continuously assess our outstanding commitments and recognize a loss on purchase commitments, when required, if such commitments are in excess of our product needs or the costs are not expected to be recoverable. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Net Loss Per Share) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies Net Loss Per Share Tables | |
Net Loss Per Share (Tables) | The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Year Ended December 31, Numerator: 2017 2016 2015 Net loss available for common shareholders $ (24,243) $ (16,472) $ (14,542) Denominator: Weighted-average common shares outstanding 72,786 51,958 46,540 Net loss per share - basic and diluted $ (0.33) $ (0.32) $ (0.31) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The shares shown represent the number of shares of common stock which would be issued upon conversion in the respective years shown below (in thousands): Year Ended December 31, 2017 2016 2015 Options outstanding and warrants exercisable 7,007 7,764 8,185 Nonvested restricted stock units 185 60 60 7,192 7,824 8,245 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Share-Based Compensation) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies Share-based Compensation Tables | |
Stock-based employee compensation expense | The following table summarizes the amount of share-based compensation expense by line item on the Statement of Operations (in thousands): Year Ended December 31, 2017 2016 2015 Cost of product revenue $ 39 $ 37 $ 19 Research and development expense 546 350 282 Sales, marketing, general and administrative expense 703 836 706 $ 1,288 $ 1,223 $ 1,007 |
Long-term Contracts (Tables)
Long-term Contracts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Contracts Tables | |
Long-term Contracts (Tables) | The following table summarizes the costs incurred on our revenue contracts (in thousands): December 31, 2017 2016 Costs and estimated earnings incurred on uncompleted contracts $ 4,680 $ 193 Billings on uncompleted contracts (4,005) (236) $ 675 $ (43) Included in consolidated balance sheets under the following captions: Costs and estimated earnings incurred on uncompleted contracts $ 680 $ 125 Billings on uncompleted contracts in excess of related costs (5) (168) $ 675 $ (43) |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Tables | |
Inventory (Tables) | Inventory consists of the following (in thousands): December 31, 2017 2016 Raw materials $ 53 $ 999 Finished goods 4,488 234 $ 4,541 $ 1,233 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities Tables | |
Accrued liabilities (Tables) | Accrued liabilities consists of the following (in thousands): December 31, 2017 2016 Bonuses $ 1,143 $ 1,350 Adverse purchase commitments 500 500 Payroll and payroll taxes 631 398 Compensated absences 436 393 Warranty 153 316 Relocation 90 204 Deferred rent credit 37 158 Separation agreement 359 - Prepayments from customers 1,738 - Other 777 385 $ 5,864 $ 3,704 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property And Equipment Net Tables | |
Components of Property, Plant and Equipment | Property and equipment consists of the following (in thousands): December 31, 2017 2016 Production equipment $ 6,573 $ 4,580 Leasehold improvements 601 494 Computer hardware and software/lab equipment 5,515 4,968 Office furniture and equipment 1,304 1,096 13,993 11,138 Less: Accumulated depreciation (10,742) (9,601) $ 3,251 $ 1,537 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets Tables | |
Estimated future amortization expense of intangible assets | The following table outlines our estimated future amortization expense related to intangible assets held at December 31, 2017 (in thousands): Years Ended December 31, Amount 2018 $ 115 2019 115 2020 98 2021 80 2022 71 Thereafter 123 $ 602 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Warrants Tables | |
Warrant activity and summary | The following table summarizes activity with respect to our common stock warrants for the periods shown below (in thousands): Warrants to Weighted- purchase average common exercise shares price Outstanding at January 1, 2015 6,526 $ 3.08 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised (1,487) 2.19 Canceled/expired - - Outstanding at December 31, 2015 5,039 3.34 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised - - Canceled/expired (1,278) 6.24 Outstanding at December 31, 2016 3,761 2.23 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised (460) 1.97 Canceled/expired (1,328) 1.97 Outstanding at December 31, 2017 1,973 $ 2.47 Exercisable at December 31, 2017 1,973 $ 2.47 The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2017 (in thousands): Warrants outstanding Warrants exercisable Weighted- average Weighted- Weighted- Outstanding at remaining average Exercisable at average December 31, contractual term exercise December 31, exercise Range of exercise prices 2017 (in years) price 2017 price $1.92 - $3.07 1,973 1.21 $ 2.47 1,973 $ 2.47 1,973 1,973 |
Share-based compensation (Table
Share-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies Share-based Compensation Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: Year Ended December 31, Assumptions (weighted-average) 2017 2016 2015 Volatility 79% 84% 98% Expected term (in years) 4.0 4.0 4.0 Risk-free rate 1.6% 1.2% 1.3% Expected dividends 0.0% 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% 8.5% Grant date fair value of options granted $ 1.03 $ 1.12 $ 2.20 |
Options activity and positions | The following table summarizes activity and positions with respect to options for the periods shown below (in thousands): Weighted-average remaining Aggregate Weighted-average contractual intrinsic Options Shares exercise price term (in years) value Outstanding as of January 1, 2015 2,427 $ 6.72 7.4 $ 18,700 Granted 849 3.23 - - Exercised (23) 1.88 - - Forfeited or expired (107) 13.98 - - Outstanding as of December 31, 2015 3,146 5.56 7.3 1,613 Granted 1,167 1.83 - - Exercised (3) 1.77 - - Forfeited or expired (307) 12.58 - - Outstanding as of December 31, 2016 4,003 3.94 7.3 4 Granted 1,724 1.76 - - Exercised (46) 1.87 - - Forfeited or expired (647) 6.09 - - Outstanding as of December 31, 2017 5,034 $ 2.94 6.6 $ 53 Vested and expected to vest as of December 31, 2017 4,729 $ 3.00 6.4 $ 49 Exercisable as of December 31, 2017 2,555 $ 3.90 4.5 $ 25 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Tables | |
Future minimum annual capital and operating lease payments | Future minimum rental commitments under operating leases for years ending December 31, are as follows (in thousands): Operating Years Ended December 31, leases 2018 $ 625 2019 652 2020 666 2021 676 2022 696 Thereafter 175 Total minimum lease payments $ 3,490 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes Tables | |
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | Deferred tax assets are summarized as follows (in thousands): December 31, 2017 2016 Deferred tax assets Reserves $ 1,561 $ 2,351 Net operating loss carryforwards 82,210 126,335 R&D credit carryforwards 7,435 6,998 Depreciation/amortization deferred 13,005 20,024 Deferred revenue 1,081 2,091 Other 5,944 9,045 Net deferred taxes before valuation allowance 111,236 166,844 Less: Valuation allowance (111,236) (166,844) Deferred tax assets $ - $ - |
Quarterly financial informati34
Quarterly financial information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Tables | |
Selected Quarterly Financial Data (Unaudited) (Tables) | The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2017 December 31, September 30, June 30, March 31, Revenue $ 2,560 $ 6,086 $ 1,453 $ 792 Gross profit 10 243 508 254 Net loss (7,861) (5,241) (5,494) (5,647) Net loss per share, basic and diluted (0.10) (0.07) (0.08) (0.08) Fiscal Year 2016 December 31, September 30, June 30, March 31, Revenue $ 2,905 $ 4,000 $ 4,155 $ 3,701 Gross profit 505 1,207 1,563 1,112 Net loss (5,370) (4,070) (3,476) (3,553) Net loss per share, basic and diluted (0.09) (0.08) (0.07) (0.07) |
Valuation Reserves Schedule (Ta
Valuation Reserves Schedule (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation Reserves Schedule Tables | |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets | MicroVision, Inc. Valuation and Qualifying Accounts and Reserves Schedule Additions Balance at Charges Charges Balance beginning of to costs and to other at end of Year Ended December 31, fiscal period expenses accounts Deductions fiscal period 2015 Allowance for receivables from related parties $ 400 $ - $ - $ (30) $ 370 Tax valuation allowance 156,671 - 4,489 - 161,160 2016 Allowance for receivables from related parties $ 370 $ - $ $ (370) $ - Tax valuation allowance 161,160 - 5,684 - 166,844 2017 Allowance for receivables from related parties $ - $ - $ - $ - $ - Tax valuation allowance 166,844 (55,608) - - 111,236 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Intangible Assets Useful Life Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Useful life of patents | 1 year |
Maximum | |
Useful life of patents | 17 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Property and Equipment Useful Life Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property and Equipment, Useful Life | P2Y |
Maximum | |
Property and Equipment, Useful Life | P5Y |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Restricted Cash Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary Of Significant Accounting Policies Restricted Cash Narrative Details | ||
Restricted cash | $ 435 | $ 435 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Concentration of Sales to Major Customers Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Customer Revenue Concentration | |||
Revenue | $ 5,800,000 | $ 13,500,000 | $ 9,000,000 |
Concentration Risk, Percentage | 53.00% | 91.00% | 98.00% |
Secondary Customer Revenue Concentration | |||
Revenue | $ 2,300,000 | ||
Concentration Risk, Percentage | 21.00% | ||
Third Customer Revenue Concentration | |||
Revenue | $ 1,600,000 | ||
Concentration Risk, Percentage | 14.00% | ||
Accounts Receivable Concentration | |||
Accounts receivable | $ 182,000 | ||
Concentration Risk, Percentage | 74.00% | ||
Second Accounts Receivable Concentration | |||
Accounts receivable | $ 54,000 | ||
Concentration Risk, Percentage | 22.00% |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Net Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||||||||||
Net loss available for common shareholders - basic and diluted | $ (7,861) | $ (5,241) | $ (5,494) | $ (5,647) | $ (5,370) | $ (4,070) | $ (3,476) | $ (3,556) | $ (24,243) | $ (16,472) | $ (14,542) |
Denominator: | |||||||||||
Weighted-average shares outstanding - basic and diluted | 72,786 | 51,958 | 46,540 | ||||||||
Net loss per share - basic and diluted | $ (0.10) | $ (0.07) | $ (0.08) | $ (0.08) | $ (0.09) | $ (0.08) | $ (0.07) | $ (0.07) | $ (0.33) | $ (0.32) | $ (0.31) |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Net Loss Per Share Convertible Securities and Options Excluded) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Anti-dilutive shares | 7,192 | 7,824 | 8,245 |
Options Outstanding and Private Warrants Exercisable | |||
Anti-dilutive shares | 7,007 | 7,764 | 8,185 |
Nonvested Equity Shares | |||
Anti-dilutive shares | 185 | 60 | 60 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based employee compensation expense | $ 1,288 | $ 1,223 | $ 1,007 |
Cost of product revenue | |||
Share-based employee compensation expense | 39 | 37 | 19 |
Research and development expense | |||
Share-based employee compensation expense | 546 | 350 | 282 |
Sales, marketing, general and administrative expense | |||
Share-based employee compensation expense | $ 703 | $ 836 | $ 706 |
Long-term contracts (Costs Incu
Long-term contracts (Costs Incurred on Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Contracts Costs Incurred On Contracts Details | ||
Costs and estimated earnings incurred on uncompleted contracts | $ 4,680 | $ 193 |
Billings on uncompleted contracts | (4,005) | (236) |
Net of costs and billings on uncompleted contracts | 675 | (43) |
Included in accompanying consolidated balance sheets under the following captions: | ||
Other current assets | 680 | 125 |
Billings on uncompleted contracts in excess of related costs | (5) | (168) |
Net of costs and billings on uncompleted contracts | $ 675 | $ (43) |
Inventory Components (Details)
Inventory Components (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Components Details | ||
Raw materials | $ 53 | $ 999 |
Finished goods | 4,488 | 234 |
Inventory, net | $ 4,541 | $ 1,233 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Narrative Details | |||
Inventory write-downs | $ 1,004 | $ 187 | $ 287 |
Noncurrent inventory | $ 2,200 |
Accrued liabilities components
Accrued liabilities components (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities Components Details | ||
Bonuses | $ 1,143 | $ 1,350 |
Adverse purchase commitments | 500 | 500 |
Payroll and payroll taxes | 631 | 398 |
Compensated absences | 436 | 393 |
Warranty | 153 | 316 |
Relocation | 90 | 204 |
Deferred rent credit | 37 | 158 |
Separation agreement | 359 | 0 |
Prepayments from customers | 1,738 | 0 |
Other | 777 | 385 |
Accrued liabilities | $ 5,864 | $ 3,704 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property And Equipment Details | ||
Production equipment | $ 6,573 | $ 4,580 |
Leasehold improvements | 601 | 494 |
Computer hardware and software/lab equipment | 5,515 | 4,968 |
Office furniture and equipment | 1,304 | 1,096 |
Property and equipment, gross | 13,993 | 11,138 |
Less: Accumulated depreciation | (10,742) | (9,601) |
Property and equipment, net | $ 3,251 | $ 1,537 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property And Equipment Narrative Details | |||
Depreciation expense | $ 1,141 | $ 1,120 | $ 429 |
Property and equipment under capital lease | 704 | 704 | |
Accumulated depreciation related to assets under capital lease | $ 704 | $ 704 |
Intangible assets (Future Amort
Intangible assets (Future Amortization) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,018 | $ 115 |
2,019 | 115 |
2,020 | 98 |
2,021 | 80 |
2,022 | 71 |
Thereafter | 123 |
Total | $ 602 |
Intangible assets (Narrative) (
Intangible assets (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets Narrative Details | |||
Gross value of intangible assets | $ 1,600,000 | $ 1,600,000 | |
Amortization expense | $ 116,000 | $ 127,000 | $ 128,000 |
Number of patents abandoned in prosecution | 0 | 0 | 5 |
Common Stock Issuance (Narrativ
Common Stock Issuance (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash received from stock sale, before issuance costs | $ 19,356,000 | $ 22,869,000 | $ 3,206,000 |
March 2,015 | |||
Cash received from stock sale, before issuance costs | $ 1,000,000 | ||
Terms and provisions | During the three months ended March 31, 2015, we received gross proceeds of approximately $1.0 million as part of an ATM agreement we entered into with Meyers Associates, L.P. in June 2014. We have completed sales under this agreement, having received total proceeds of approximately $4.5 million before issuance costs of approximately $206,000 from the sale of 2.0 million shares of our common stock. | ||
December 2,015 | |||
Number of shares of common stock issued | 1,500,000 | ||
Cash received from stock sale, before issuance costs | $ 3,300,000 | ||
Terms and provisions | During the year ended December 31, 2015, we received approximately $3.3 million from the exercise of warrants to purchase 1.5 million shares of our common stock, which warrants were issued in connection with earlier financing transactions. | ||
May 2,015 | |||
Number of shares of common stock issued | 1,200,000 | ||
Cash received from stock sale, before issuance costs | $ 3,100,000 | ||
Stock issuance costs | $ 109,000 | ||
Terms and provisions | In May 2015, we entered into an ATM agreement with Meyers Associates, L.P. Under the terms of the agreement, we may, from time to time, at our discretion, offer and sell shares of our common stock having an aggregate value of up to $6.0 million. As of December 31, 2016, we have received gross proceeds of approximately $3.1 million before issuance costs of approximately $109,000 from the sale of 1.2 million shares of our common stock. There were no sales under this agreement in 2017. The agreement was terminated in May 2017 in accordance with its terms without penalty. | ||
March 2,016 | |||
Number of shares of common stock issued | 4,100,000 | ||
Cash received from stock sale, before issuance costs | $ 6,900,000 | ||
Stock issuance costs | $ 650,000 | ||
Terms and provisions | In March 2016, we raised approximately $6.9 million before issuance costs of approximately $650,000 through an underwritten public offering of approximately 4.1 million shares of our common stock. The offering included the exercise in full of the underwriter's option to purchase up to an additional 529,411 shares of our common stock. | ||
Public August 2017 | |||
Number of shares of common stock issued | 5,500,000 | ||
Cash received from stock sale, before issuance costs | $ 11,500,000 | ||
Stock issuance costs | $ 1,100,000 | ||
Terms and provisions | In August 2017, we raised approximately $11.5 million before issuance costs of approximately $1.1 million through an underwritten public offering of 5.5 million shares of our common stock. | ||
Private August 2017 | |||
Number of shares of common stock issued | 1,500,000 | ||
Cash received from stock sale, before issuance costs | $ 3,200,000 | ||
Stock issuance costs | $ 26,000 | ||
December Registered 2016 | |||
Number of shares of common stock issued | 2,000,000 | ||
Cash received from stock sale, before issuance costs | $ 2,100,000 | ||
Stock issuance costs | $ 18,000 | ||
Terms and provisions | In December 2016, we raised approximately $2.1 million before issuance costs of approximately $18,000 through a registered direct offering of 2.0 million shares of our common stock. | ||
December Public 2016 | |||
Number of shares of common stock issued | 12,100,000 | ||
Cash received from stock sale, before issuance costs | $ 13,000,000 | ||
Stock issuance costs | $ 1,200,000 | ||
Terms and provisions | In December 2016, we raised approximately $13.0 million before issuance costs of approximately $1.2 million through an underwritten public offering of approximately 12.1 million shares of our common stock. |
Warrants (Summary of Warrant Ac
Warrants (Summary of Warrant Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Warrants Summary Of Warrant Activity Details | |||
Warrants, Outstanding as of beginning of period | 3,761 | 5,039 | 6,526 |
Granted with exercise price less than intrinsic value | 0 | 0 | 0 |
Granted with exercise price greater than intrinsic value | 0 | 0 | 0 |
Exercised | (460) | 0 | (1,487) |
Canceled/expired | (1,328) | (1,278) | 0 |
Warrants, Outstanding as of end of period | 1,973 | 3,761 | 5,039 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $ 2.23 | $ 3.34 | $ 3.08 |
Warrants, Weighted-Average Exercise Prices, Granted less than intrinsic value | 0 | 0 | 0 |
Warrants, Weighted-Average Exercise Prices, Granted greater than intrinsic value | 0 | 0 | 0 |
Warrants, Weighted-Average Exercise Prices, Exercised | 1.97 | 0 | 2.19 |
Warrants, Weighted-Average Exercise Prices, cancelled or expired | 1.97 | 6.24 | 0 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of end of period | $ 2.47 | $ 2.23 | $ 3.34 |
Warrants, Exercisable at end of period | 1,973 | ||
Warrants, Weighted-Average Exercise Price, Exercisable | $ 2.47 |
Warrants Outstanding and Exerci
Warrants Outstanding and Exercisable (Details) shares in Thousands | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Dec. 31, 2014$ / shares |
Warrant, exercise price | $ 2.47 | $ 2.23 | $ 3.34 | $ 3.08 |
Warrants, Outstanding as of end of period | shares | 1,973 | |||
Warrants outstanding, weighted average exercise price | 2.47 | |||
Warrants, Exercisable at end of period | shares | 1,973 | |||
Warrants exercisable, weighted average exercise price | $ 2.47 | |||
$1.76 - $3.08 | ||||
Warrant exercise, mimimum | 1.92 | |||
Warrant exercise price, maximum | 3.07 | |||
Warrants, Outstanding as of end of period | shares | 1,973 | |||
Warrants outstanding, weighted average remaining contractual life, years | 1.21 | |||
Warrants outstanding, weighted average exercise price | 2.47 | |||
Warrants, Exercisable at end of period | shares | 1,973 | |||
Warrants exercisable, weighted average exercise price | $ 2.47 |
Warrants (Narrative) (Details)
Warrants (Narrative) (Details) - $ / shares shares in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Warrants Narrative Details | |||||
Common shares underlying warrants | 1,973 | 3,761 | 5,039 | 6,526 | |
Warrant exercise price, per share | $ 2.47 | $ 2.23 | $ 3.34 | $ 3.08 | |
Warrant Transactions Connected with Contingently Convertible Securities | The outstanding warrants to purchase 2.0 million shares of our common stock that we sold in our March 2014 offering have an exercise price of $2.47 per share and expire on the fifth anniversary of the date of issuance. | There were no common stock warrants issued in 2017, 2016 or 2015. |
Share-based compensation (Weigh
Share-based compensation (Weighted Average Assumptions) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions (weighted average) | |||
Volatility | 79.00% | 84.00% | 98.00% |
Expected term (in years) | 4 years | 4 years | 4 years |
Risk-free rate | 1.60% | 1.20% | 1.30% |
Expected dividends | $ 0 | $ 0 | $ 0 |
Pre-vest forfeiture rate | 8.50% | 8.50% | 8.50% |
Grant date fair value of options granted | $ 1.03 | $ 1.12 | $ 2.20 |
Share-based compensation (Sched
Share-based compensation (Schedule Of Stock Option Activity) (Details) - MVIS - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Options, Outstanding as of beginning of period | 4,003 | 3,146 | 2,427 | |
Options, Granted | 1,167 | 849 | 717 | |
Options, Exercised | (3) | (23) | 0 | |
Options, Forfeited, or expired | (307) | (107) | (195) | |
Options, Outstanding as of end of period | 5,034 | 4,003 | 3,146 | |
Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $ 3.94 | $ 5.56 | $ 6.72 | |
Weighted-Average Exercise Prices, Granted | 1.76 | 1.83 | 3.23 | |
Weighted-Average Exercise Prices, Exercised | 1.87 | 1.77 | 1.88 | |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired | 6.09 | 12.58 | 13.98 | |
Weighted-Average Exercise Prices, Outstanding as of end of period | $ 2.94 | $ 3.94 | $ 5.56 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 6 years 216 days | 7 years 108 days | 7 years 108 days | |
Options, Outstanding, Aggregate Intrinsic Value | $ 53 | $ 4 | $ 1,613 | $ 18,700 |
Options, Vested and expected to vest at end of period | 4,729 | |||
Weighted-Average Exercise Price, Vested and expected to vest | $ 3 | |||
Weighted-Average Remaining Contractual Term (in years), Vested and expected to vest | 6 years 144 days | |||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 49 | |||
Options, Exercisable at end of period | 2,555 | |||
Weighted-Average Exercise Price, Exercisable | $ 3.90 | |||
Weighted-Average Remaining Contractual Term (in years), Exercisable | 4 years 180 days | |||
Options, Exercisable, Aggregate Intrinsic Value | $ 25 | |||
Options, Exercises in Period, Intrinsic Value | 40 | 3 | 29 | |
Grant date fair value of options vested | $ 1,000 | $ 998 | $ 591 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restricted Stock Rights | |
Unrecognized compensation cost related to share-based compensation | $ 244,000 |
Weighted-average service period, years | 3 years 36 days |
Employee Stock Options | |
Unrecognized compensation cost related to share-based compensation | $ 2,300,000 |
Weighted-average service period, years | 2 years 240 days |
Commitments and Contingencies58
Commitments and Contingencies (Operating Leases) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Year ending December 31: | |
2,018 | $ 625 |
2,019 | 652 |
2,020 | 666 |
2,021 | 676 |
2,022 | 696 |
Thereafter | 175 |
Total minimum lease payments | $ 3,490 |
Commitments and Contingencies59
Commitments and Contingencies (Purchase Commitments Narrative) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments And Contingencies Adverse Purchase Commitments Narrative Details | |
Open purchase obligations | $ 4,800 |
Accrued liability for loss on commitments to purchase materials to support production of PicoP based products | $ 500 |
Commitments and Contingencies60
Commitments and Contingencies (Lease Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments And Contingencies Lease Narrative Details | |||
Net rent expense | $ 531,000 | $ 483,000 | $ 465,000 |
Income taxes (Deferred Tax Asse
Income taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Reserves | $ 1,561 | $ 2,351 |
Net operating loss carryforwards | 82,210 | 126,335 |
R&D credit carryforwards | 7,435 | 6,998 |
Depreciation/amortization deferred | 13,005 | 20,024 |
Deferred revenue | 1,081 | 2,091 |
Other | 5,944 | 9,045 |
Net deferred taxes before valuation allowance | 111,236 | 166,844 |
Less: Valuation allowance | (111,236) | (166,844) |
Deferred tax assets | $ 0 | $ 0 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Narrative Details | |||
Provision for income taxes | $ 0 | $ 0 | $ 0 |
Operating Loss Carryforwards | $ 391.5 | ||
Operating loss carryforwards, expiration date | Dec. 31, 2018 | ||
Annual limit on operating loss carryforwards | In certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our shareholders during any three year period would result in limitations on our ability to use a portion of our net operating loss carryforwards. | ||
Accrued penalties and interest | $ 0 | 0 | |
Unrecognized tax benefits | $ 0 | $ 0 | |
Tax years open for examination | 1,998 |
Income taxes (Credit Carryforwa
Income taxes (Credit Carryforwards Narrative) (Details) - R&D Tax Credit $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Tax Credit Carryforward, Description | At December 31, 2017, we have net operating loss carryforwards of approximately $391.5 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $7.4 million. |
Tax Credit Carryforward, Amount | $ 7,400 |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2018 |
Retirement savings plan (Narrat
Retirement savings plan (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Savings Plan Narrative Details | |||
Contribution to 401 (k) plan | $ 278,000 | $ 214,000 | $ 108,000 |
Quarterly financial informati65
Quarterly financial information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Details | |||||||||||
Revenue | $ 2,560 | $ 6,086 | $ 1,453 | $ 792 | $ 2,905 | $ 4,000 | $ 4,155 | $ 3,701 | $ 10,891 | $ 14,761 | $ 9,188 |
Gross profit | 10 | 243 | 508 | 254 | 505 | 1,207 | 1,563 | 1,112 | 1,015 | 4,387 | 2,008 |
Net loss | $ (7,861) | $ (5,241) | $ (5,494) | $ (5,647) | $ (5,370) | $ (4,070) | $ (3,476) | $ (3,556) | $ (24,243) | $ (16,472) | $ (14,542) |
Net loss per share - basic and diluted | $ (0.10) | $ (0.07) | $ (0.08) | $ (0.08) | $ (0.09) | $ (0.08) | $ (0.07) | $ (0.07) | $ (0.33) | $ (0.32) | $ (0.31) |
Valuation and Qualifying Acco66
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for receivables from related parties | |||
Balance at beginning of fiscal period | $ 0 | $ 370 | $ 400 |
Charges to costs and expenses | 0 | 0 | 0 |
Charges to other accounts | 0 | 0 | 0 |
Deductions | 0 | (370) | (30) |
Balance at end of fiscal period | 0 | 0 | 370 |
Tax valuation allowance | |||
Balance at beginning of fiscal period | 166,844 | 161,160 | 156,671 |
Charges to costs and expenses | (55,608) | 0 | 0 |
Charges to other accounts | 0 | 5,684 | 4,489 |
Deductions | 0 | 0 | 0 |
Balance at end of fiscal period | $ 11,236 | $ 166,844 | $ 161,160 |