Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 22, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | Microvision, Inc. | |
Entity Central Index Key | 65,770 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
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 | 93,073,343 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 13,210 | $ 16,966 |
Accounts receivable, net of allowances of $0 and $26, respectively | 5,044 | 15 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,080 | 680 |
Inventory | 3,347 | 4,541 |
Other current assets | 893 | 1,015 |
Total current assets | 23,574 | 23,217 |
Property and equipment, net | 2,954 | 3,251 |
Restricted cash | 435 | 435 |
Intangible assets | 515 | 602 |
Other assets | 2,492 | 2,262 |
Total assets | 29,970 | 29,767 |
Current liabilities | ||
Accounts payable | 1,631 | 3,063 |
Accrued liabilities | 5,719 | 5,864 |
Deferred revenue | 0 | |
Billings on uncompleted contracts in excess of related costs | 1 | 5 |
Other current liabilities | 10,027 | 10,142 |
Current portion of capital lease obligations | 13 | 0 |
Total current liabilities | 17,391 | 19,074 |
Capital lease obligations, net of current portion | 27 | 0 |
Deferred revenue, net of current portion | 0 | |
Deferred rent, net of current portion | 504 | 302 |
Other long-term liabilities | 0 | 305 |
Total liabilities | 17,922 | 19,681 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity | ||
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; 150,000 shares authorized; 93,073 and 78,597 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 93 | 79 |
Additional paid-in capital | 546,123 | 528,873 |
Accumulated deficit | (534,168) | (518,866) |
Total shareholders' equity | 12,048 | 10,086 |
Total liabilities and shareholders' equity | 29,970 | 29,767 |
Reconciliation of cash, cash equivalents, and restricted cash balances | ||
Cash and cash equivalents | 13,210 | 16,966 |
Restricted cash | 435 | 435 |
Cash, cash equivalents, and restricted cash | $ 13,645 | $ 17,401 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
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 | 150,000 | 150,000 |
Common stock, shares issued | 93,073 | 78,597 |
Common stock, shares outstanding | 93,073 | 78,597 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Product revenue | $ 0 | $ 2,253 | $ 0 | $ 2,298 |
License and royalty revenue | 10,000 | 77 | 10,011 | 280 |
Contract revenue | 1,572 | 3,095 | 5,763 | 4,754 |
Total revenue | 11,572 | 5,425 | 15,774 | 7,332 |
Cost of product revenue | 1,434 | 3,178 | 1,998 | 3,572 |
Cost of contract revenue | 1,211 | 2,525 | 4,201 | 3,740 |
Total cost of revenue | 2,645 | 5,703 | 6,199 | 7,312 |
Gross profit | 8,927 | (278) | 9,575 | 20 |
Research and development expense | 6,386 | 3,427 | 17,905 | 10,417 |
Sales, marketing, general and administrative expense | 2,253 | 2,062 | 6,953 | 6,967 |
Total operating expenses | 8,639 | 5,489 | 24,858 | 17,384 |
Income (loss) from operations | 288 | (5,767) | (15,283) | (17,364) |
Other income (expense), net | 1 | 5 | (19) | (3) |
Net income (loss) | $ 289 | $ (5,762) | $ (15,302) | $ (17,367) |
Net income (loss) per share - basic | $ 0 | $ (0.08) | $ (0.18) | $ (0.25) |
Net income (loss) per share - diluted | $ 0 | $ (0.08) | $ (0.18) | $ (0.25) |
Weighted-average shares outstanding - basic | 93,073 | 74,922 | 84,388 | 70,828 |
Weighted-average shares outstanding - diluted | 93,204 | 74,922 | 84,388 | 70,828 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (15,302) | $ (17,367) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 1,294 | 679 |
Amortization of intangible assets | 87 | 87 |
Share-based compensation expense | 721 | 1,027 |
Inventory write-downs | 1,139 | 202 |
Other non-cash adjustments | 99 | (47) |
Change in: | ||
Accounts receivable, net | (5,029) | 5 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (400) | 0 |
Inventory | 55 | (3,222) |
Other current and non-current assets | (98) | (2,221) |
Accounts payable | (1,416) | 1,769 |
Accrued liabilities | (188) | 101 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (4) | 1,310 |
Other currrent liabilities | (115) | 9,856 |
Other long-term liabilities | (305) | (26) |
Net cash used in operating activities | (19,462) | (7,847) |
Cash flows from investing activities | ||
Purchases of property and equipment | (971) | (2,448) |
Net cash used in investing activities | (971) | (2,448) |
Cash flows from financing activities | ||
Principal payments under capital leases and long-term debt | (2) | 0 |
Increase in deferred rent | 139 | 0 |
Net proceeds from issuance of common stock and warrants | 16,540 | 20,459 |
Net cash provided by financing activities | 16,677 | 20,459 |
Change in cash and cash equivalents | (3,756) | 10,164 |
Cash, cash equivalents and restricted cash at beginning of period | 17,401 | 15,574 |
Cash, cash equivalents and restricted cash at end of period | 13,645 | 25,738 |
Supplemental schedule of non-cash investing and financing activities | ||
Property and equipment acquired under capital leases | 42 | 0 |
Non-cash additions to property and equipment | $ 149 | $ 245 |
MANAGEMENT'S STATEMENT - Note 1
MANAGEMENT'S STATEMENT - Note 1 | 9 Months Ended |
Sep. 30, 2018 | |
Management Disclosure | |
MANAGEMENT'S STATEMENT - Note 1 | 1. MANAGEMENTS STATEMENT The Condensed Consolidated Balance Sheets as of September 30, 2018, the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017, and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017, have been prepared by MicroVision, Inc. ("we" or "our") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at September 30, 2018 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (SEC). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed consolidated financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. We have incurred significant losses since inception. We have funded our 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 September 30, 2018, we had $13.2 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 and including the $5.0 million payment received in October 2018 under a licensing agreement that was executed with a customer in May 2018, we anticipate that we have sufficient cash and cash equivalents to fund our operations through March 2019. Our receipt of proceeds under our April 2017 development contract is subject to our completion of certain milestones, and we can provide no assurance that such milestones will be completed. 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 to us or, if available, will be available on terms acceptable to us or 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 investments in our production capacities, 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, 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. Our unaudited consolidated financial statements have been 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. |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - Note 2 | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share - Note 2 | 2. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Net income (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. Diluted net income (loss) per share is calculated on the basis of the weighted-average number of common shares outstanding and taking into account the dilutive effect of all potential common stock equivalents outstanding. Potentially dilutive common stock equivalents primarily consist of options, warrants and nonvested restricted stock units. Diluted net income (loss) per share for the three months and nine months ended September 30, 2017 is equal to basic net income (loss) per share because the effect of potential common stock outstanding during the periods, including options, warrants and nonvested restricted stock units is anti-dilutive. Basic net income (loss) per share for the three months ended September 30, 2018 is diluted by outstanding convertible securities per the table below. The components of basic and diluted net income (loss) per share were as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net income (loss) available for common shareholders - basic $ 289 $ (5,762) $ (15,302) $ (17,367) Denominator: Weighted-average common shares outstanding - basic 93,073 74,922 84,388 70,828 Dilutive incremental share effect from: Options 1 - - - Nonvested restricted stock units 130 - - - Weighted-average common shares outstanding - diluted 93,204 74,922 84,388 70,828 Net income (loss) per share - basic $ 0.00 $ (0.08) $ (0.18) $ (0.25) Net income (loss) per share - diluted $ 0.00 $ (0.08) $ (0.18) $ (0.25) For the three and nine months ended September 30, 2017, we excluded the following securities from net income (loss) per share as the effect of including them would have been anti-dilutive: options outstanding and warrants exercisable into a total of 7,219,000 shares of common stock and 60,000 nonvested restricted stock units. For the three and nine months ended September 30, 2018, we excluded the following securities from net income (loss) per share as the effect of including them would have been anti-dilutive: options outstanding and warrants exercisable into a total of 7,586,000 and 7,587,000 shares of common stock, respectively, and 1,050,000 and 1,180,000 nonvested restricted stock units, respectively. |
LONG-TERM CONTRACTS - Note 3
LONG-TERM CONTRACTS - Note 3 | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Long-term contracts - Note 3 | 3. LONG-TERM CONTRACTS In May 2018, we signed a five-year license agreement with a customer granting them exclusive license to our LBS technology for display-only applications. As part of the agreement, we received a first payment of $5.0 million in June 2018 and the second payment of $5.0 million in October 2018. The contract includes requirements that must be met in order to maintain exclusivity. In addition to the up-front license fees, we expect payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones, and component sales. During the three months ended September 30, 2018 we completed the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue for the three and nine months ended September 30, 2018. In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under this agreement, we are working to 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. Under the agreement, we received an upfront payment of $10.0 million in 2017 and may receive up to $14.4 million in fees for development work that is expected to span into the second quarter of 2019. Our receipt of the development fees is contingent on completion of milestones in 2017, 2018, and into the second quarter of 2019. As of September 30, 2018, we have received $9.2 million in fees for development work and recognized $10.3 million in revenue. Upon successful completion of the development program, if the major technology 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. We are recognizing revenue on the $14.4 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. For the three and nine months ended September 30, 2018, we have recognized $1.5 million and $5.6 million, respectively, of contract revenue from development fees on this agreement. We have an amount equal to the $10.0 million upfront payment classified as an other current liability on the balance sheet. |
REVENUE RECOGNITION - Note 4
REVENUE RECOGNITION - Note 4 | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION - Note 4 | 4. REVENUE RECOGNITION In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606), 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 implemented ASU 2014-09 as of January 1, 2018 using the full retrospective approach, meaning we will restate each prior reporting period presented. We performed a review of our revenue generating contracts with customers subject to ASU 2014-09, and implementation of this standard has the following material impacts on our financial statements: i. Timing of revenue recognition under the PicoP® scanning technology license agreement we signed with Sony in March 2015. Under previous guidance, we had 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 was recognized in the first quarter of 2015. The result of this change in timing resulted 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. License and royalty revenue for each of the years ended December 31, 2016 and 2017 was reduced by approximately $1.0 million. ii. Timing of revenue recognition on product sales. Previously, we recognized revenue after expiration of the contractual acceptance period. Under the new guidance, we 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 was 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. Accounting policy as a result of adopting Topic 606 The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. We evaluate contracts based on the 5-step model as stated in Topic 606 as follows: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue when (or as) performance obligations are satisfied. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct, as defined in the revenue standard. The transaction price is the amount of consideration an entity expects to be entitled to from a customer in exchange for providing the goods or services. A number of factors should be considered to determine the transaction price, including whether there is variable consideration, a significant financing component, noncash consideration, or amounts payable to the customer. The determination of variable consideration will require a significant amount of judgment. In estimating the transaction price we will use either the expected value method or the most likely amount method. The transaction price is allocated to the separate performance obligations in the contract based on relative standalone selling prices. Determining the relative standalone selling price can be challenging when goods or services are not sold on a standalone basis. The revenue standard sets out several methods that can be used to estimate a standalone selling price when one is not directly observable. Allocating discounts and variable consideration must also be considered. Allocating the transaction price can require significant judgement on our part. Revenue is recognized when (or as) the customer obtains control of the good or service/performance obligations are satisfied. Topic 606 provides guidance to help determine if a performance obligation is satisfied at a point in time or over time. Where a performance obligation is satisfied over time, the related revenue is also recognized over time. Product revenue We sell our products to customers under a contract or by purchase order. We consider the sale of each individual item to be one performance obligation. The transaction price is generally either at stated product price per quantity or at a fixed amount at contract inception. Revenue is recognized under Topic 606 when the product is shipped to the customer because control passes to the customer at the point of shipment. Our product sales generally include acceptance provisions, however, because we generally can objectively determine that we have met agreed-upon customer specifications prior to shipment, control of the item passes at the time of shipment. License and royalty revenue We recognize revenue on upfront license fees at a point in time if the nature of the license granted is a right-to-use license, representing functional intellectual property with significant standalone functionality. If the nature of the license granted is a right-to-access license, representing symbolic intellectual property, which excludes significant standalone functionality, we recognize revenue over the period of time we have ongoing obligations under the agreement. We will recognize revenue from sales-based royalties on the basis of the quarterly reports provided by our customer as to the number of royalty-bearing products sold or otherwise distributed. In the event that reports are not received, we will estimate the number of royalty-bearing products sold by our customers. Contract revenue 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 either at a point in time, or over time, depending upon the characteristics of the individual contract. If control of the deliverable(s) occur over time, the revenue is recognized in proportion to the transfer of control. If control passes to the customer only upon completion and transfer of the asset, revenue is recognized at the completion of the contract. In contracts that include significant customer acceptance provisions, we recognize revenue only upon acceptance of the deliverable(s). We identify each performance obligation in our development contracts at contract inception. The contracts generally include product development and customization specified by the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract. Performance obligations that are not distinct at contract inception are combined. Our development contracts are primarily fixed-fee contracts. If control of deliverables occurs over time, we recognize revenue on fixed fee contracts on the proportion of total cost expended (under Topic 606, the 'input method') to the total cost expected to complete the contract performance obligation. For contracts that require the input method for revenue recognition, the determination of the total cost expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. Disaggregation of revenue The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Three Months Ended September 30, 2018 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 10,000 $ 26 $ 10,026 Product and services transferred over time - - 1,546 1,546 Total $ - $ 10,000 $ 1,572 $ 11,572 Nine Months Ended September 30, 2018 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 10,011 $ 182 $ 10,193 Product and services transferred over time - - 5,581 5,581 Total $ - $ 10,011 $ 5,763 $ 15,774 Three Months Ended September 30, 2017 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 2,253 $ 77 $ 1,040 $ 3,370 Product and services transferred over time - - 2,055 2,055 Total $ 2,253 $ 77 $ 3,095 $ 5,425 Nine Months Ended September 30, 2017 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 2,298 $ 280 $ 1,497 $ 4,075 Product and services transferred over time - - 3,257 3,257 Total $ 2,298 $ 280 $ 4,754 $ 7,332 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): September 30, December 31, 2018 2017 Accounts receivable, net $ 5,044 $ 15 Costs and estimated earnings in excess of billings on uncompleted contracts 1,080 680 Other current assets - 70 Billings on uncompleted contracts in excess of related costs 1 5 Other current liabilities 10,000 10,000 Under Topic 606, our rights to consideration are presented separately depending on whether those rights are conditional or unconditional. We present our unconditional rights to consideration as "accounts receivable" in our Consolidated Balance Sheet. Contract assets represent rights to consideration that are subject to a condition other than the passage of time, and are 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 are included in the "Costs and estimated earnings in excess of billings on uncompleted contracts" line of our Consolidated Balance Sheet, and sales-based royalties are 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 our customer. Under Topic 606, once quarterly royalty reporting has been received, the related contract assets will be transferred to accounts receivable. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): September 30, December 31, 2018 2017 $ Change % Change Contract assets $ 1,080 $ 680 $ 400 58.8 Contract liabilities (1) (5) 4 80.0 Net contract assets (liabilities) $ 1,079 $ 675 $ 404 59.9 During the nine months ended September 30, 2018, we billed $5.2 million on our development contracts. Of this amount, $680,000 was included in contract assets at December 31, 2017. We also recognized revenue of $5.6 million during the nine months ended September 30, 2018, resulting in a contract asset of $1.1 million. Contract acquisition costs Regarding the adoption of Topic 606, we are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. We currently do not pay any commissions upon the signing of a contract; therefore, no commission cost has been incurred as of September 30, 2018. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The estimated revenue does not include the $10.0 million upfront payment received from a major technology company to develop an LBS display system due to uncertainty around the timing of recognition. Additionally, the estimated revenue does not include amounts of variable consideration attributable to royalties or unexercised contract renewals (in thousands): Remainder of 2018 2019 Product revenue $ 1,792 $ 1,375 License and royalty revenue - - Contract revenue 1,617 2,553 Impacts to Previously Reported Results In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated statements of operations and balance sheets was as follows (in thousands, except per share data): Three Months Ended September 30, 2017 As previously New revenue As reported standard adjustment restated Product revenue $ 2,298 $ (45) $ 2,253 License and royalty revenue 359 (282) 77 Contract revenue 3,429 (334) 3,095 Cost of product revenue 3,224 (46) 3,178 Cost of contract revenue 2,619 (94) 2,525 Net loss (5,241) (521) (5,762) Net loss per share - basic and diluted (0.07) (0.01) (0.08) Nine Months Ended September 30, 2017 As previously New revenue As reported standard adjustment restated Product revenue $ 2,298 $ - $ 2,298 License and royalty revenue 1,240 (960) 280 Contract revenue 4,793 (39) 4,754 Cost of product revenue 3,572 - 3,572 Cost of contract revenue 3,754 (14) 3,740 Net loss (16,382) (985) (17,367) Net loss per share - basic and diluted (0.23) (0.02) (0.25) December 31, 2017 As previously New revenue As reported standard adjustment restated Costs and estimated earnings incurred on uncompleted contracts $ 680 $ - $ 680 Other current assets 945 70 1,015 Billings on uncompleted contracts 5 - 5 Deferred revenue - current 999 (999) - Deferred revenue - noncurrent 4,151 (4,151) - Shareholders' equity: Accumulated deficit (524,086) 5,220 (518,866) Adoption of the standards related to revenue recognition had no impact to cash from or used in operating, investing, or financing activities on our condensed consolidated statements of cash flows. |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS - Note 5 | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS - Note 5 | 5 . 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 September 30, 2018, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers For the three and nine months ended September 30, 2018, one commercial customer accounted for $10.0 million and $10.0 million in revenue, representing 86% and 63% of our total revenue, respectively. A second commercial customer accounted for $1.5 million and $5.6 million in revenue, representing 13% and 35% of our total revenue, respectively. For the three and nine months ended September 30, 2017, one commercial customer accounted for $2.7 million and $3.7 million in revenue, representing 50% and 50% of our total revenue, respectively. Additionally, a second commercial customer accounted for $2.3 million and $2.3 million in revenue, representing 42% and 31% of our total revenue for the three and nine months ended September 30, 2017, respectively. One commercial customer accounted for $5.0 million, or 99% of our accounts receivable balance at September 30, 2018. A significant concentration of our components and the products we sell are currently manufactured and obtained from single or limited-source suppliers. 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 including, 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. |
INVENTORY - Note 6
INVENTORY - Note 6 | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure | |
Inventory - Note 6 | 6. INVENTORY Inventory consists of the following: September 30, December 31, ( in thousands 2018 2017 Raw materials $ 53 $ 53 Finished goods 3,294 4,488 $ 3,347 $ 4,541 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. During the three months ended September 30, 2018 we recorded a write down of inventory of $1.1 million to adjust the value of our finished goods units to their net realizable value. 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. |
SHARE-BASED COMPENSATION - Note
SHARE-BASED COMPENSATION - Note 7 | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs | |
Share-Based Compensation - Note 7 | 7. SHARE-BASED COMPENSATION We issue share-based compensation to employees in the form of stock options, restricted stock units (RSUs), and performance stock units (PSUs) that contain market conditions. 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. The fair value of PSUs is estimated to reflect the effect of the underlying market condition using developed techniques to value the dependent market conditions. 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 in the statements of operations: Share-based compensation expense Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Cost of product revenue $ - $ 14 $ - $ 33 Research and development expense 109 131 377 394 Sales, marketing, general and administrative expense 73 179 344 600 $ 182 $ 324 $ 721 $ 1,027 Options activity and positions The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of September 30, 2018: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (years) Value Outstanding as of September 30, 2018 5,614,000 $ 2.45 6.2 $ 43,000 Exercisable as of September 30, 2018 3,100,000 $ 3.16 3.9 $ - As of September 30, 2018, our unrecognized share-based employee compensation related to stock options was $2.0 million which we plan to amortize over the next 2.5 years, and our unrecognized share-based compensation related to RSUs was $728,000 which we plan to amortize over the next 2.5 years. During the three months ended September 30, 2018 we issued 875,000 RSUs to our executive officers. Two-thirds of these shares are PSUs that have performance vesting criteria that would require the Company's stock price to appreciate by more than 100% of the stock price on the grant date before they become earned. Earned PSUs are eligible to vest as to one-third of the PSUs subject to the Award on each of the first three anniversaries of June 5, 2018, subject to the recipient's employment on the above vesting dates. PSUs that become earned that would have vested on any earlier vesting date would become immediately vested. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 8 | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure Footnote | |
Commitments and Contingencies - Note 8 | 8. COMMITMENTS AND CONTINGENCIES Lease commitments We lease our office space and certain equipment under operating leases with initial or remaining terms in excess of one year. In July 2017, we entered into a 65 month facility lease amendment on 31,142 square feet of combined use office, laboratory and manufacturing space at our headquarters facility in Redmond, Washington. The lease commenced in October 2017 and includes 7,225 square feet expansion space on our existing premise of 23,917 square feet. The lease agreement includes extension and rent escalation provisions over the term of the lease. Litigation On March 31, 2014, Asia Optical Co., Inc. (Asia Optical), 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. We settled all related claims with Asia Optical during the quarter ended June 30, 2018 for less than related reserves. We are 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 September 30, 2018, we had $6.8 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. |
COMMON STOCK AND WARRANTS - Not
COMMON STOCK AND WARRANTS - Note 9 | 9 Months Ended |
Sep. 30, 2018 | |
Common Stock And Warrants - Note 9 | |
COMMON STOCK AND WARRANTS - Note 9 | 9. COMMON STOCK AND WARRANTS In June 2018, we raised $18.0 million before issuance costs of approximately $1.4 million through an underwritten public offering of 14.4 million shares of our 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 At-The-Market (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 Capital Fund, LLC (Lincoln Park) in September 2016. The agreement was terminated in August 2017 at our election without penalty. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS - Note 10 | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS - Note 10 | 10. RECENT ACCOUNTING PRONOUNCEMENTS In June 2018, the FASB issued Accounting Standards Update 2018-07 (ASU 2018-07) Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. Currently, Topic 718 only includes share-based payments to employees. ASU 2018-07 expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The new guidance will be effective for fiscal years beginning after December 31, 2018, including interim periods within that fiscal year. We do not expect the adoption of ASU 2018-07 to have a material impact on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842) amended by ASU 2018-11 Leases (Topic 842): Targeted Improvements. 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 may be applied on either a modified retrospective approach, with prior periods restated, or a prospective approach, with a cumulative-effect adjustment to the opening balance of retained earnings on the adoption date. We have chosen to use the prospective adoption approach. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Notes to Financial Statements | |
Management's Statement | The Condensed Consolidated Balance Sheets as of September 30, 2018, the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017, and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and 2017, have been prepared by MicroVision, Inc. ("we" or "our") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at September 30, 2018 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (SEC). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed consolidated financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The results of operations for the nine months ended September 30, 2018 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. We have incurred significant losses since inception. We have funded our 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 September 30, 2018, we had $13.2 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 and including the $5.0 million payment received in October 2018 under a licensing agreement that was executed with a customer in May 2018, we anticipate that we have sufficient cash and cash equivalents to fund our operations through March 2019. Our receipt of proceeds under our April 2017 development contract is subject to our completion of certain milestones, and we can provide no assurance that such milestones will be completed. 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 to us or, if available, will be available on terms acceptable to us or 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 investments in our production capacities, 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, 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. Our unaudited consolidated financial statements have been 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. |
Net Income (Loss) Per Share | Basic net income (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Net income (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. Diluted net income (loss) per share is calculated on the basis of the weighted-average number of common shares outstanding and taking into account the dilutive effect of all potential common stock equivalents outstanding. Potentially dilutive common stock equivalents primarily consist of options, warrants and nonvested restricted stock units. Diluted net income (loss) per share for the three months and nine months ended September 30, 2017 is equal to basic net income (loss) per share because the effect of potential common stock outstanding during the periods, including options, warrants and nonvested restricted stock units is anti-dilutive. |
Revenue recognition | In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2014-09 (ASU 2014-09), Revenue from Contracts with Customers (Topic 606), 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 implemented ASU 2014-09 as of January 1, 2018 using the full retrospective approach, meaning we will restate each prior reporting period presented. We performed a review of our revenue generating contracts with customers subject to ASU 2014-09, and implementation of this standard has the following material impacts on our financial statements: i. Timing of revenue recognition under the PicoP® scanning technology license agreement we signed with Sony in March 2015. Under previous guidance, we had 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 was recognized in the first quarter of 2015. The result of this change in timing resulted 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. License and royalty revenue for each of the years ended December 31, 2016 and 2017 was reduced by approximately $1.0 million. ii. Timing of revenue recognition on product sales. Previously, we recognized revenue after expiration of the contractual acceptance period. Under the new guidance, we 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 was 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. Accounting policy as a result of adopting Topic 606 The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. We evaluate contracts based on the 5-step model as stated in Topic 606 as follows: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue when (or as) performance obligations are satisfied. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct, as defined in the revenue standard. The transaction price is the amount of consideration an entity expects to be entitled to from a customer in exchange for providing the goods or services. A number of factors should be considered to determine the transaction price, including whether there is variable consideration, a significant financing component, noncash consideration, or amounts payable to the customer. The determination of variable consideration will require a significant amount of judgment. In estimating the transaction price we will use either the expected value method or the most likely amount method. The transaction price is allocated to the separate performance obligations in the contract based on relative standalone selling prices. Determining the relative standalone selling price can be challenging when goods or services are not sold on a standalone basis. The revenue standard sets out several methods that can be used to estimate a standalone selling price when one is not directly observable. Allocating discounts and variable consideration must also be considered. Allocating the transaction price can require significant judgement on our part. Revenue is recognized when (or as) the customer obtains control of the good or service/performance obligations are satisfied. Topic 606 provides guidance to help determine if a performance obligation is satisfied at a point in time or over time. Where a performance obligation is satisfied over time, the related revenue is also recognized over time. Product revenue We sell our products to customers under a contract or by purchase order. We consider the sale of each individual item to be one performance obligation. The transaction price is generally either at stated product price per quantity or at a fixed amount at contract inception. Revenue is recognized under Topic 606 when the product is shipped to the customer because control passes to the customer at the point of shipment. Our product sales generally include acceptance provisions, however, because we generally can objectively determine that we have met agreed-upon customer specifications prior to shipment, control of the item passes at the time of shipment. License and royalty revenue We recognize revenue on upfront license fees at a point in time if the nature of the license granted is a right-to-use license, representing functional intellectual property with significant standalone functionality. If the nature of the license granted is a right-to-access license, representing symbolic intellectual property, which excludes significant standalone functionality, we recognize revenue over the period of time we have ongoing obligations under the agreement. We will recognize revenue from sales-based royalties on the basis of the quarterly reports provided by our customer as to the number of royalty-bearing products sold or otherwise distributed. In the event that reports are not received, we will estimate the number of royalty-bearing products sold by our customers. Contract revenue 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 either at a point in time, or over time, depending upon the characteristics of the individual contract. If control of the deliverable(s) occur over time, the revenue is recognized in proportion to the transfer of control. If control passes to the customer only upon completion and transfer of the asset, revenue is recognized at the completion of the contract. In contracts that include significant customer acceptance provisions, we recognize revenue only upon acceptance of the deliverable(s). We identify each performance obligation in our development contracts at contract inception. The contracts generally include product development and customization specified by the customer. In contracts with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the contract. Performance obligations that are not distinct at contract inception are combined. Our development contracts are primarily fixed-fee contracts. If control of deliverables occurs over time, we recognize revenue on fixed fee contracts on the proportion of total cost expended (under Topic 606, the 'input method') to the total cost expected to complete the contract performance obligation. For contracts that require the input method for revenue recognition, the determination of the total cost expected to complete the performance obligations on fixed fee contracts involves significant judgment. We incorporate revisions to hour and cost estimates when the causal facts become known. |
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. During the three months ended September 30, 2018 we recorded a write down of inventory of $1.1 million to adjust the value of our finished goods units to their net realizable value. 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. |
Share-based Compensation | We issue share-based compensation to employees in the form of stock options, 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. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Net Income Loss Per Share | |
Net Income (Loss) Per Share (Tables) | The components of basic and diluted net income (loss) per share were as follows (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator: Net income (loss) available for common shareholders - basic $ 289 $ (5,762) $ (15,302) $ (17,367) Denominator: Weighted-average common shares outstanding - basic 93,073 74,922 84,388 70,828 Dilutive incremental share effect from: Options 1 - - - Nonvested restricted stock units 130 - - - Weighted-average common shares outstanding - diluted 93,204 74,922 84,388 70,828 Net income (loss) per share - basic $ 0.00 $ (0.08) $ (0.18) $ (0.25) Net income (loss) per share - diluted $ 0.00 $ (0.08) $ (0.18) $ (0.25) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue Recognition | |
Schedule of disaggregation of revenues | The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Three Months Ended September 30, 2018 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 10,000 $ 26 $ 10,026 Product and services transferred over time - - 1,546 1,546 Total $ - $ 10,000 $ 1,572 $ 11,572 Nine Months Ended September 30, 2018 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 10,011 $ 182 $ 10,193 Product and services transferred over time - - 5,581 5,581 Total $ - $ 10,011 $ 5,763 $ 15,774 Three Months Ended September 30, 2017 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 2,253 $ 77 $ 1,040 $ 3,370 Product and services transferred over time - - 2,055 2,055 Total $ 2,253 $ 77 $ 3,095 $ 5,425 Nine Months Ended September 30, 2017 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 2,298 $ 280 $ 1,497 $ 4,075 Product and services transferred over time - - 3,257 3,257 Total $ 2,298 $ 280 $ 4,754 $ 7,332 |
Costs in excess of billings and billings in excess of costs | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): September 30, December 31, 2018 2017 Accounts receivable, net $ 5,044 $ 15 Costs and estimated earnings in excess of billings on uncompleted contracts 1,080 680 Other current assets - 70 Billings on uncompleted contracts in excess of related costs 1 5 Other current liabilities 10,000 10,000 |
Schedule of contract assets and liabilities | Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): September 30, December 31, 2018 2017 $ Change % Change Contract assets $ 1,080 $ 680 $ 400 58.8 Contract liabilities (1) (5) 4 80.0 Net contract assets (liabilities) $ 1,079 $ 675 $ 404 59.9 |
Transaction price allocated to the remaining performance obligations, expected timing | Additionally, the estimated revenue does not include amounts of variable consideration attributable to royalties or unexercised contract renewals (in thousands): Remainder of 2018 2019 Product revenue $ 1,792 $ 1,375 License and royalty revenue - - Contract revenue 1,617 2,553 |
Schedule of impacts of adopting ASC 606 | In accordance with Topic 606, the disclosure of the impact of adoption to our condensed consolidated statements of operations and balance sheets was as follows (in thousands, except per share data): Three Months Ended September 30, 2017 As previously New revenue As reported standard adjustment restated Product revenue $ 2,298 $ (45) $ 2,253 License and royalty revenue 359 (282) 77 Contract revenue 3,429 (334) 3,095 Cost of product revenue 3,224 (46) 3,178 Cost of contract revenue 2,619 (94) 2,525 Net loss (5,241) (521) (5,762) Net loss per share - basic and diluted (0.07) (0.01) (0.08) Nine Months Ended September 30, 2017 As previously New revenue As reported standard adjustment restated Product revenue $ 2,298 $ - $ 2,298 License and royalty revenue 1,240 (960) 280 Contract revenue 4,793 (39) 4,754 Cost of product revenue 3,572 - 3,572 Cost of contract revenue 3,754 (14) 3,740 Net loss (16,382) (985) (17,367) Net loss per share - basic and diluted (0.23) (0.02) (0.25) December 31, 2017 As previously New revenue As reported standard adjustment restated Costs and estimated earnings incurred on uncompleted contracts $ 680 $ - $ 680 Other current assets 945 70 1,015 Billings on uncompleted contracts 5 - 5 Deferred revenue - current 999 (999) - Deferred revenue - noncurrent 4,151 (4,151) - Shareholders' equity: Accumulated deficit (524,086) 5,220 (518,866) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Tables Abstract | |
Inventory (Tables) | Inventory consists of the following: September 30, December 31, ( in thousands 2018 2017 Raw materials $ 53 $ 53 Finished goods 3,294 4,488 $ 3,347 $ 4,541 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Sharebased Compensation Tables Abstract | |
Stock-based employee compensation expense | The following table summarizes the amount of share-based compensation expense by line item in the statements of operations: Share-based compensation expense Three Months Ended Nine Months Ended September 30, September 30, (in thousands) 2018 2017 2018 2017 Cost of product revenue $ - $ 14 $ - $ 33 Research and development expense 109 131 377 394 Sales, marketing, general and administrative expense 73 179 344 600 $ 182 $ 324 $ 721 $ 1,027 |
Options activity and positions | The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of September 30, 2018: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (years) Value Outstanding as of September 30, 2018 5,614,000 $ 2.45 6.2 $ 43,000 Exercisable as of September 30, 2018 3,100,000 $ 3.16 3.9 $ - |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income (loss) available for common shareholders - basic | $ 289 | $ (5,762) | $ (15,302) | $ (17,367) |
Denominator: | ||||
Weighted-average common shares outstanding - basic | 93,073 | 74,922 | 84,388 | 70,828 |
Dilutive incremental share effect from: | ||||
Options | 1 | 0 | 0 | 0 |
Nonvested restricted stock units | 130 | 0 | 0 | 0 |
Weighted-average shares outstanding - diluted | 93,204 | 74,922 | 84,388 | 70,828 |
Net income (loss) per share - basic | $ 0 | $ (0.08) | $ (0.18) | $ (0.25) |
Net income (loss) per share - diluted | $ 0 | $ (0.08) | $ (0.18) | $ (0.25) |
Net Loss Per Share (Convertible
Net Loss Per Share (Convertible Securities and Options Excluded Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Options and Warrants Exercisable | |||
Anti-dilutive shares | 7,219,000 | 7,587,000 | 7,219,000 |
Nonvested Restricted Stock Units | |||
Anti-dilutive shares | 60,000 | 1,180,000 | 60,000 |
Long-Term Contracts (Narrative)
Long-Term Contracts (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Display-Only | ||||
Upfront payment received | $ 5,000,000 | $ 5,000,000 | ||
Deferred Revenue, Description | In May 2018, we signed a five-year license agreement with a customer granting them exclusive license to our LBS technology for display-only applications. As part of the agreement, we received a first payment of $5.0 million in June 2018 and the second payment of $5.0 million in October 2018. The contract includes requirements that must be met in order to maintain exclusivity. In addition to the up-front license fees, we expect payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones, and component sales. During the three months ended September 30, 2018 we completed the transfer of the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue for the three and nine months ended September 30, 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>" id="sjs-D5"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In May 2018, we signed a five-year license agreement with a customer granting them exclusive license to our LBS technology for display-only applications. As part of the agreement, we received a first payment of $5.0 million in June 2018 and the second payment of $5.0 million in October 2018. The contract includes requirements that must be met in order to maintain exclusivity. In addition to the up-front license fees, we expect payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones, and component sales. During the three months ended September 30, 2018 we completed the transfer of the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue for the three and nine months ended September 30, 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> | |||
LBS Display System | ||||
Upfront payment received | $ 10,000,000 | |||
Contract revenue from development fees | $ 1,500,000 | $ 5,600,000 | ||
Deferred Revenue, Description | In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under this agreement, we are working to 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. Under the agreement, we received an upfront payment of $10.0 million in 2017 and may receive up to $14.4 million in fees for development work that is expected to span into the second quarter of 2019. Our receipt of the development fees is contingent on completion of milestones in 2017 and 2018, and into the second quarter of 2019. As of September 30, 2018, we have received $9.2 million in fees for development work and recognized $10.3 million in revenue. Upon successful completion of the development program, if the major technology 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. We are recognizing revenue on the $14.4 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. For the three and nine months ended September 30, 2018, we have recognized $1.5 million and $5.6 million, respectively, of contract revenue from development fees on this agreement. We have an amount equal to the $10.0 million upfront payment classified as an other current liability on the balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>" id="sjs-D9"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In April 2017, we signed a contract with a major technology company to develop an LBS display system.  Under this agreement, we are working to 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.  Under the agreement, we received an upfront payment of $10.0 million in 2017 and may receive up to $14.4 million in fees for development work that is expected to span into the second quarter of 2019. Our receipt of the development fees is contingent on completion of milestones in 2017 and 2018, and into the second quarter of 2019. As of September 30, 2018, we have received $9.2 million in fees for development work and recognized $10.3 million in revenue. Upon successful completion of the development program, if the major technology 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. We are recognizing revenue on the $14.4 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. For the three and nine months ended September 30, 2018, we have recognized $1.5 million and $5.6 million, respectively, of contract revenue from development fees on this agreement. We have an amount equal to the $10.0 million upfront payment classified as an other current liability on the balance sheet.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> | |||
Deferred revenue, classified within other currrent liabilities | $ 10,000,000 | $ 10,000,000 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregated revenue | $ 11,572 | $ 5,425 | $ 15,774 | $ 7,332 |
Product revenue | ||||
Disaggregated revenue | 0 | 2,253 | 0 | 2,298 |
License and royalty revenue | ||||
Disaggregated revenue | 10,000 | 77 | 10,011 | 280 |
Contract revenue | ||||
Disaggregated revenue | 1,572 | 3,095 | 5,763 | 4,754 |
Transferred at Point in Time | ||||
Disaggregated revenue | 10,026 | 3,370 | 10,193 | 4,075 |
Transferred at Point in Time | Product revenue | ||||
Disaggregated revenue | 0 | 2,253 | 0 | 2,298 |
Transferred at Point in Time | License and royalty revenue | ||||
Disaggregated revenue | 10,000 | 77 | 10,011 | 280 |
Transferred at Point in Time | Contract revenue | ||||
Disaggregated revenue | 26 | 1,040 | 182 | 1,497 |
Transferred over Time | ||||
Disaggregated revenue | 1,546 | 2,055 | 5,581 | 3,257 |
Transferred over Time | Product revenue | ||||
Disaggregated revenue | 0 | 0 | 0 | 0 |
Transferred over Time | License and royalty revenue | ||||
Disaggregated revenue | 0 | 0 | 0 | 0 |
Transferred over Time | Contract revenue | ||||
Disaggregated revenue | $ 1,546 | $ 2,055 | $ 5,581 | $ 3,257 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances with Contract Customers (details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts receivable | $ 5,044 | $ 15 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,080 | 680 |
Other current assets | 893 | 1,015 |
Billings on uncompleted contracts in excess of related costs | 1 | 5 |
Other current liabilities | 10,027 | 10,142 |
Deferred revenue | 0 | |
Contracts with Customers | ||
Accounts receivable | 5,044 | 15 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,080 | 680 |
Other current assets | 0 | 70 |
Billings on uncompleted contracts in excess of related costs | 1 | 5 |
Other current liabilities | $ 10,000 | $ 10,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Contractors [Abstract] | ||
Contract assets | $ 1,080 | $ 680 |
Change in Contract Asset | $ 400 | |
Percent Change in Contract Asset | 58.80% | |
Contract liabilities | $ (1) | (5) |
Change in Contract Liability | $ 4 | |
Percent Change in Contract Liability | 80.00% | |
Net contract assets (liabilities) | $ 1,079 | $ 675 |
Change in Net Contract Assets (Liabilities) | $ 404 | |
Percent Change in Net Contract Assets (Liabilities) | 59.90% |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Product revenue | Remainder 2018 | |
Revenue, Remaining Performance Obligation | $ 1,792 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Product revenue | 2019 | |
Revenue, Remaining Performance Obligation | $ 1,375 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
License and royalty revenue | Remainder 2018 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
License and royalty revenue | 2019 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Contract Revenue | Remainder 2018 | |
Revenue, Remaining Performance Obligation | $ 1,617 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Contract Revenue | 2019 | |
Revenue, Remaining Performance Obligation | $ 2,553 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Product revenue | $ 0 | $ 2,253 | $ 0 | $ 2,298 | |
Royalty revenue | 10,000 | 77 | 10,011 | 280 | |
Contract revenue | 1,572 | 3,095 | 5,763 | 4,754 | |
Cost of product revenue | 1,434 | 3,178 | 1,998 | 3,572 | |
Cost of contract revenue | 1,211 | 2,525 | 4,201 | 3,740 | |
Net loss | 289 | (5,762) | (15,302) | (17,367) | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,080 | 1,080 | $ 680 | ||
Other current assets | 893 | 893 | 1,015 | ||
Billings on uncompleted contracts | 1 | 1 | 5 | ||
Deferred revenue - current | 0 | ||||
Deferred revenue - noncurrent | 0 | ||||
Accumulated deficit | $ (534,168) | $ (534,168) | (518,866) | ||
Topic 606 | Previously reported | |||||
Product revenue | 2,298 | 2,298 | |||
Royalty revenue | 359 | 1,240 | |||
Contract revenue | 3,429 | 4,793 | |||
Cost of product revenue | 3,224 | 3,572 | |||
Cost of contract revenue | 2,619 | 3,754 | |||
Net loss | $ (5,241) | $ (16,382) | |||
Net loss per share - basic and diluted | $ (0.07) | $ (0.23) | |||
Costs and estimated earnings in excess of billings on uncompleted contracts | 680 | ||||
Other current assets | 945 | ||||
Billings on uncompleted contracts | 5 | ||||
Deferred revenue - current | 999 | ||||
Deferred revenue - noncurrent | 4,151 | ||||
Accumulated deficit | (524,086) | ||||
Topic 606 | Adjustment | |||||
Product revenue | $ (45) | $ 0 | |||
Royalty revenue | (282) | (960) | |||
Contract revenue | (334) | (39) | |||
Cost of product revenue | (46) | 0 | |||
Cost of contract revenue | (94) | (14) | |||
Net loss | $ (521) | $ (985) | |||
Net loss per share - basic and diluted | $ (0.01) | $ (0.02) | |||
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | ||||
Other current assets | 70 | ||||
Billings on uncompleted contracts | 0 | ||||
Deferred revenue - current | (999) | ||||
Deferred revenue - noncurrent | (4,151) | ||||
Accumulated deficit | $ 5,220 |
Concentration of Sales to Major
Concentration of Sales to Major Customers (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Customer Revenue Concentration | ||||
Total revenue | $ 10 | $ 2.7 | $ 10 | $ 3.7 |
Concentration Risk, Percentage | 86.00% | 50.00% | 63.00% | 50.00% |
Second Commercial Customer | ||||
Total revenue | $ 1.5 | $ 2.3 | $ 5.6 | $ 2.3 |
Concentration Risk, Percentage | 13.00% | 42.00% | 35.00% | 31.00% |
Accounts Receivable Concentration | ||||
Accounts receivable | $ 2.7 | $ 2.7 | ||
Concentration Risk, Percentage | 99.00% |
Inventory Components (Details)
Inventory Components (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Components | ||
Raw materials | $ 53,000 | $ 53,000 |
Finished goods | 3,294,000 | 4,488,000 |
Inventory, net | $ 3,347,000 | $ 4,541,000 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based employee compensation expense | $ 182,000 | $ 324,000 | $ 721,000 | $ 1,027,000 |
Cost of product revenue | ||||
Share-based employee compensation expense | 0 | 14,000 | 0 | 33,000 |
Research and development expense | ||||
Share-based employee compensation expense | 109,000 | 131,000 | 377,000 | 394,000 |
Sales, marketing, general and administrative expense | ||||
Share-based employee compensation expense | $ 73,000 | $ 179,000 | $ 344,000 | $ 600,000 |
Shared-Based Compensation (Opti
Shared-Based Compensation (Options Activity and Position) (Details) | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Shared-based Compensation Options Activity And Position | |
Outstanding shares | shares | 5,614,000 |
Weighted-average exercise price of options outstanding | $ / shares | $ 2.45 |
Weighted-average remaining contractual term (in years) of options outstanding | 6 years 72 days |
Aggregate intrinsic value of options outstanding | $ | $ 43,000 |
Exercisable shares | shares | 3,100,000 |
Weighted-average exercise price of options exercisable | $ / shares | $ 3.16 |
Weighted-average remaining contractual term (in years) of options exercisable | 3 years 324 days |
Aggregate intrinsic value of options exercisable | $ | $ 0 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Employee Stock Options | |
Unrecognized compensation cost related to share-based compensation | $ 2,000,000 |
Weighted-average service period, years | 2 years 180 days |
Restricted Stock Rights | |
Unrecognized compensation cost related to share-based compensation | $ 728,000 |
Weighted-average service period, years | 2 years 180 days |
Commitments and Contingencies (
Commitments and Contingencies (Adverse Purchase Commitments Narrative) (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments And Contingencies Adverse Purchase Commitments Narrative | |
Open purchase obligations | $ 6.8 |
Common Stock and Warrants (Narr
Common Stock and Warrants (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018USD ($)shares | |
Public June 2018 | |
Number of shares of common stock issued | shares | 14,400,000 |
Cash received from stock sale, before issuance costs | $ 18,000,000 |
Stock issuance costs | $ 1,400,000 |
Warrant terms and provisions | In June 2018, we raised $18.0 million before issuance costs of approximately $1.4 million through an underwritten public offering of 14.4 million shares of our common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>" id="sjs-B7"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In June 2018, we raised $18.0 million before issuance costs of approximately $1.4 million through an underwritten public offering of 14.4 million shares of our common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> |
Public Aug 2017 | |
Number of shares of common stock issued | shares | 5,500,000 |
Cash received from stock sale, before issuance costs | $ 11,500,000 |
Stock issuance costs | $ 1,100,000 |
Warrant 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>" id="sjs-B12"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> |
Private Aug 2017 | |
Number of shares of common stock issued | shares | 1,500,000 |
Cash received from stock sale, before issuance costs | $ 3,200,000 |
Stock issuance costs | $ 26,000 |
Warrant terms and provisions | 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>" id="sjs-B17"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> |
Earlier Transaction | |
Exchange of warrants | $ 906,000 |
Exchange of warrants, shares | shares | 460,000 |
Warrant terms and provisions | 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>" id="sjs-B21"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> |
May 2,017 | |
Number of shares of common stock issued | shares | 1,700,000 |
Cash received from stock sale, before issuance costs | $ 3,700,000 |
Stock issuance costs | $ 125,000 |
Warrant terms and provisions | In May 2017, we entered into an At-The-Market (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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>" id="sjs-B26"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In May 2017, we entered into an At-The-Market (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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> |
June 2,017 | |
Number of shares of common stock issued | shares | 1,200,000 |
Cash received from stock sale, before issuance costs | $ 2,200,000 |
Warrant terms and provisions | 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 Capital Fund, LLC (Lincoln Park) in September 2016. The agreement was terminated in August 2017 at our election without penalty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>" id="sjs-B30"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 Capital Fund, LLC (Lincoln Park) in September 2016. The agreement was terminated in August 2017 at our election without penalty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> |