Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 29, 2018 | |
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, 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 | ||
Entity Shell Company | false | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 102,105,000 | ||
Entity Public Float | $ 104.2 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 13,766 | $ 16,966 |
Accounts receivable, net of allowances of $0 and $26, respectively | 476 | 15 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 987 | 680 |
Inventory | 1,109 | 4,541 |
Other current assets | 1,311 | 1,015 |
Total current assets | 17,649 | 23,217 |
Property and equipment, net | 2,993 | 3,251 |
Restricted cash | 435 | 435 |
Intangible assets | 486 | 602 |
Other assets | 1,470 | 2,262 |
Total assets | 23,033 | 29,767 |
Current liabilities | ||
Accounts payable | 2,411 | 3,063 |
Accrued liabilities | 5,602 | 5,864 |
Billings on uncompleted contracts in excess of related costs | 0 | 5 |
Other current liabilities | 10,154 | 10,142 |
Current portion of capital lease obligations | 21 | 0 |
Total current liabilities | 18,188 | 19,074 |
Capital lease obligations, net of current portion | 33 | 0 |
Deferred rent, net of current portion | 695 | 302 |
Other long-term liabilities | 0 | 305 |
Total liabilities | 18,916 | 19,681 |
Commitments and contingencies (Note 12) | ||
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; 100,105 and 78,597 shares issued and outstanding at December 31, 2018 and 2017, respectively | 100 | 79 |
Additional paid-in capital | 550,133 | 528,873 |
Accumulated deficit | (546,116) | (518,866) |
Total shareholders' equity | 4,117 | 10,086 |
Total liabilities and shareholders' equity | 23,033 | 29,767 |
Reconciliation of cash, cash equivalents, and restricted cash balances | ||
Cash and cash equivalents | 13,766 | 16,966 |
Restricted cash | 435 | 435 |
Cash, cash equivalents, and restricted cash | $ 14,201 | $ 17,401 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Allowance for doubtful accounts receivable, current | $ 0 | $ 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 | 100,105 | 78,597 |
Common stock, shares outstanding | 100,105 | 78,597 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 17,607 | $ 9,634 |
Operating expenses: | ||
Total cost of revenue | 10,638 | 9,862 |
Gross profit | 6,969 | (228) |
Research and development expense | 24,666 | 15,096 |
Sales, marketing, general and administrative expense | 9,523 | 10,156 |
Total operating expenses | 34,189 | 25,252 |
Loss from operations | (27,220) | (25,480) |
Other expense, net | (30) | (6) |
Net loss | $ (27,250) | $ (25,486) |
Net loss per share - basic and diluted | $ (0.31) | $ (0.35) |
Weighted-average shares outstanding - basic and diluted | 86,983 | 72,786 |
Product revenue | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 0 | $ 2,300 |
Operating expenses: | ||
Cost of Goods and Services Sold | 5,468 | 4,359 |
License and royalty | ||
Revenue from Contract with Customer, Including Assessed Tax | 10,011 | 350 |
Contract | ||
Revenue from Contract with Customer, Including Assessed Tax | 7,596 | 6,984 |
Operating expenses: | ||
Cost of Goods and Services Sold | $ 5,170 | $ 5,503 |
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, 2016 | $ 68 | $ 507,249 | $ (493,380) | $ 13,937 |
Beginning balances, shares at Dec. 31, 2016 | 68,093 | |||
Share-based compensation expense | $ 0 | 1,288 | 0 | $ 1,288 |
Share-based compensation expense, shares | 92 | |||
Exercise of options, shares | 46 | |||
Sales of common stock | $ 11 | 19,345 | 0 | $ 19,356 |
Sales of common stock, shares | 9,906 | |||
Exercise of warrants and options | $ 0 | 991 | 0 | 991 |
Exercise of warrants and options, shares | 506 | |||
Net loss | $ 0 | 0 | (25,486) | (25,486) |
Ending balances at Dec. 31, 2017 | $ 79 | 528,873 | (518,866) | 10,086 |
Ending balances, shares at Dec. 31, 2017 | 78,597 | |||
Share-based compensation expense | $ 0 | 1,061 | 0 | $ 1,061 |
Share-based compensation expense, shares | 108 | |||
Exercise of options, shares | 0 | |||
Sales of common stock | $ 21 | 20,199 | 0 | $ 20,220 |
Sales of common stock, shares | 21,400 | |||
Net loss | $ 0 | 0 | (27,250) | (27,250) |
Ending balances at Dec. 31, 2018 | $ 100 | $ 550,133 | $ (546,116) | $ 4,117 |
Ending balances, shares at Dec. 31, 2018 | 100,105 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (27,250) | $ (25,486) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 1,722 | 1,141 |
Amortization of intangible assets | 116 | 116 |
Share-based compensation expense | 1,061 | 1,288 |
Inventory write-downs | 4,414 | 1,004 |
Other non-cash adjustments | 203 | (42) |
Change in: | ||
Accounts receivable, net | (461) | 230 |
Costs and estimated earnings in excess of billings on uncompleted contracts | (307) | (555) |
Inventory | (982) | (4,312) |
Other current and non-current assets | 663 | (2,314) |
Accounts payable | (1,079) | 1,147 |
Accrued liabilities | (374) | 2,226 |
Billings in excess of costs and estimated earnings on uncompleted contracts | (5) | (138) |
Other currrent liabilities | 12 | 9,964 |
Other long-term liabilities | (305) | 252 |
Net cash used in operating activities | (22,572) | (15,479) |
Cash flows from investing activities | ||
Proceeds on sale of property and equipment | 0 | 59 |
Purchases of property and equipment | (1,118) | (3,100) |
Net cash used in investing activities | (1,118) | (3,041) |
Cash flows from financing activities | ||
Principal payments under capital leases and long-term debt | (12) | 0 |
Increase in deferred rent | 139 | 0 |
Net proceeds from issuance of common stock and warrants | 20,363 | 20,347 |
Net cash provided by financing activities | 20,490 | 20,347 |
Change in cash and cash equivalents, and restricted cash | (3,200) | 1,827 |
Cash, cash equivalents and restricted cash at beginning of period | 17,401 | 15,574 |
Cash, cash equivalents and restricted cash at end of period | 14,201 | 17,401 |
Supplemental schedule of non-cash investing and financing activities | ||
Property and equipment acquired under capital leases | 66 | 0 |
Non-cash additions to property and equipment | $ 445 | $ 165 |
THE COMPANY AND LIQUIDITY - Not
THE COMPANY AND LIQUIDITY - Note 1 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
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. 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 December 31, 2018, we had $13.8 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 through June 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 OEMs and ODMs 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 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Note 2 | 12 Months Ended |
Dec. 31, 2018 | |
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, income taxes, 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, 2018 and 2017, 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 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. 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, 2018, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2018, one customer accounted for $10.0 million in revenue, representing 57% of our total revenue and a second customer accounted for $7.4 million in revenue, representing 42% of our total revenue. In 2017, one customer accounted for $5.8 million in revenue, representing 60% of our total revenue and a second customer accounted for $2.3 million in revenue, representing 24% of our total revenue. 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: 2018 2017 Net loss available for common shareholders $ (27,250) $ (25,486) Denominator: Weighted-average common shares outstanding 86,983 72,786 Net loss per share - basic and diluted $ (0.31) $ (0.35) During each of the years ended December 31, 2018 and 2017, 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, 2018 2017 Options outstanding and warrants exercisable 6,619 7,007 Nonvested restricted stock units 1,149 185 7,768 7,192 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. Research and development costs are expensed as incurred. We believe that a substantial level of continuing research and development expense will be required to further develop our technology. Share-based compensation We issue share-based compensation to employees in the form of stock options and restricted stock units (RSUs), and performance stock units (PSUs). 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 PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. 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, 2018 2017 Cost of product revenue $ - $ 39 Research and development expense 439 546 Sales, marketing, general and administrative expense 622 703 $ 1,061 $ 1,288 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 June 2018, the Financial Accounting Standards Board (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). 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 a modified retrospective basis. We have chosen to adopt this guidance on January 1, 2019 using a cumulative-effect adjustment to retained earnings. The most significant impact will be recognition of right-of-use assets and lease liabilities for our office lease. Accounting for our capital leases remains substantially unchanged. Adoption of the standard will result in the recognition of a right-of-use asset of approximately $1.6 million, a lease liability of approximately $2.5 million, and a reduction in other short-term and long-term liabilities of $873,000. Adoption of the standard will not have a material impact on our statement of operations. |
REVENUE RECOGNITION - Note 3
REVENUE RECOGNITION - Note 3 | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION - Note 3 | 3. REVENUE RECOGNITION In May 2014, the 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 restated 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 $6.1 million in our beginning 2017 accumulated deficit balance and a reduction in our short-term deferred revenue balance of $999,000 and long-term deferred revenue balance of $5.1 million. License and royalty revenue for the year ended December 31, 2017 was reduced by approximately $999,000. 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 2017 accumulated deficit of $527,000, as well as a shift in revenue and cost recognition to earlier quarters in 2017. Disaggregation of revenue The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Year Ended December 31, 2018 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 10,011 $ 189 $ 10,200 Product and services transferred over time - - 7,407 7,407 Total $ - $ 10,011 $ 7,596 $ 17,607 Year Ended December 31, 2017 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 2,300 $ 350 $ 1,616 $ 4,266 Product and services transferred over time - - 5,368 5,368 Total $ 2,300 $ 350 $ 6,984 $ 9,634 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): December 31, December 31, 2018 2017 Accounts receivable, net $ 476 $ 15 Costs and estimated earnings in excess of billings on uncompleted contracts 987 680 Other current assets - 70 Billings on uncompleted contracts in excess of related costs - 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. This does not represent a change in presentation for contract fulfillment costs; however, for sales-based royalty revenue, revenue was previously not recognized until quarterly royalty reporting had been received from our customer. Under Topic 606, in the event that reports are not received, we estimate the number of royalty-bearing products sold by our customers and are included in "Other current assets". 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): December 31, December 31, 2018 2017 $ Change % Change Contract assets $ 987 $ 680 $ 307 45.1 Contract liabilities - (5) 5 100.0 Net contract assets (liabilities) $ 987 $ 675 $ 312 46.2 During the year ended December 31, 2018, we billed $7.1 million on our development contracts. Of this amount, $680,000 was included in contract assets at December 31, 2017. We also recognized revenue of $7.4 million during the year ended December 31, 2018, resulting in a contract asset of $987,000. 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 December 31, 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): 2019 2020 Product revenue $ - $ - License and royalty revenue - - Contract revenue 2,513 - 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): Year Ended December 31, 2017 As previously New revenue As reported standard adjustment restated Product revenue $ 2,300 $ - $ 2,300 License and royalty revenue 1,568 (1,218) 350 Contract revenue 7,023 (39) 6,984 Cost of product revenue 4,359 - 4,359 Cost of contract revenue 5,517 (14) 5,503 Net loss (24,243) (1,243) (25,486) Net loss per share - basic and diluted (0.33) (0.02) (0.35) 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. |
LONG-TERM CONTRACTS - Note 4
LONG-TERM CONTRACTS - Note 4 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Long-term contracts - Note 4 | 4. 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. If this customer acquires a customer, we expect orders for component sales. We may also receive payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones. During the year ended December 31, 2018 we completed the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue during the year ended December 31, 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 $14.6 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 December 31, 2018, we have received $10.7 million in fees for development work and recognized $12.1 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 $14.6 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 year ended December 31, 2018, we have recognized $7.4 million 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. The following table summarizes the costs incurred on our revenue contracts (in thousands): December 31, 2018 2017 Costs and estimated earnings incurred on uncompleted contracts $ 12,087 $ 4,680 Billings on uncompleted contracts (11,100) (4,005) $ 987 $ 675 Included in consolidated balance sheets under the following captions: Costs and estimated earnings incurred on uncompleted contracts $ 987 $ 680 Billings on uncompleted contracts in excess of related costs - (5) $ 987 $ 675 |
INVENTORY - Note 5
INVENTORY - Note 5 | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure | |
Inventory - Note 5 | 5. INVENTORY Inventory consists of the following (in thousands): December 31, 2018 2017 Raw materials $ 32 $ 53 Finished goods 1,077 4,488 $ 1,109 $ 4,541 As of December 31, 2018 and 2017, $1.4 million and $2.2 million, respectively, 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 $4.4 million in 2018 and $1.0 million in 2017. |
ACCRUED LIABILITIES - Note 6
ACCRUED LIABILITIES - Note 6 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Accrued liabilities - Note 6 | 6 . ACCRUED LIABILITIES Accrued liabilities consists of the following (in thousands): December 31, 2018 2017 Bonuses $ 1,475 $ 1,143 Adverse purchase commitments - 500 Payroll and payroll taxes 608 631 Compensated absences 493 436 Warranty 25 153 Relocation 22 90 Deferred rent credit 178 37 Separation agreement 241 359 Prepayments from customers 1,585 1,738 Other 975 777 $ 5,602 $ 5,864 |
PROPERTY AND EQUIPMENT - Note 7
PROPERTY AND EQUIPMENT - Note 7 | 12 Months Ended |
Dec. 31, 2017 | |
Contract with Customer, Liability, Current, Change | |
Property and equipment - Note 7 | 7. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): December 31, 2018 2017 Production equipment $ 7,124 $ 6,573 Leasehold improvements 909 601 Computer hardware and software/lab equipment 6,082 5,515 Office furniture and equipment 1,342 1,304 15,457 13,993 Less: Accumulated depreciation (12,464) (10,742) $ 2,993 $ 3,251 Depreciation expense was $1.7 million in 2018 and $1.1 million in 2017. 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 $770,000 and $713,000 in the year ended December 31, 2018 and $704,000 and $704,000 in the year ended December 31, 2017. |
INTANGIBLE ASSETS - Note 8
INTANGIBLE ASSETS - Note 8 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Intangible assets - Note 8 | 8. 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, 2018 and 2017. Amortization expense was $116,000 in 2018 and $116,000 in 2017. In 2018 and 2017 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, 2018 (in thousands): Years Ended December 31, Amount 2019 $ 115 2020 98 2021 80 2022 71 2023 54 Thereafter 68 $ 486 |
COMMON STOCK - Note 9
COMMON STOCK - Note 9 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Common stock - Note 9 | 9. COMMON STOCK In December 2018, we raised $4.2 million before issuance costs of approximately $524,000 through an underwritten public offering of 7.0 million shares of our common stock. 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 $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 $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. 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 1.7 million shares of our common stock under an ATM agreement that 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 a common stock purchase agreement entered into in September 2016 that was terminated in August 2017 at our election without penalty. |
WARRANTS - Note 10
WARRANTS - Note 10 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Warrants - Note 10 | 10. 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 in March 2019. 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 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 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised - - Canceled/expired - - Outstanding at December 31, 2018 1,973 $ 2.47 Exercisable at December 31, 2018 1,973 $ 2.47 There were no common stock warrants issued in 2018 and 2017. The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2018 (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 Exercise price 2018 (in years) price 2018 price $2.47 1,973 0.21 $ 2.47 1,973 $ 2.47 1,973 1,973 |
SHARE-BASED COMPENSATION - Note
SHARE-BASED COMPENSATION - Note 11 | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs | |
Share-Based Compensation - Note 11 | 11. 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 Plan Our 2013 Incentive Plan has 10.8 million shares authorized, of which 3.0 million shares were available for awards as of December 31, 2018. 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) 2018 2017 Volatility 73% 79% Expected term (in years) 3.2 4.0 Risk-free rate 2.8% 1.6% Expected dividends 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% Grant date fair value of options granted $ 0.58 $ 1.03 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 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 Granted 1,229 1.16 - - Exercised - - - - Forfeited or expired (1,617) 3.51 - - Outstanding as of December 31, 2018 4,646 $ 2.27 7.0 $ - Vested and expected to vest as of December 31, 2018 4,364 $ 3.04 6.8 $ - Exercisable as of December 31, 2018 2,252 $ 2.30 5.0 $ - The intrinsic value of options exercised during the year ended December 31, 2017 was $40,000. No options were exercised during the year ended December 31, 2018. The total grant date fair value of options vested during the years ended December 31, 2018 and 2017 was $958,000 and $1.0 million, respectively. As of December 31, 2018, our unrecognized share-based compensation was $1.6 million related to options, which we plan to amortize over the next 2.3 years. On September 30, 2018, we issued 583,333 performance stock units to our executives. The performance criteria is the achievement of the Company's share price of $2.50 sustained for 60 of trailing 90 days before the PSUs are earned ("Earned PSUs"). To the extent the PSUs become Earned PSUs they shall be eligible to vest as to one-third (1/3) of the PSUs subject to the Award on the each of the first three (3) anniversaries of June 5, 2018, subject to the executive's continuous employment on the applicable vesting date. If there are outstanding but unearned PSUs as of a vesting date and the PSUs become Earned PSUs prior to the next vesting date the Earned PSUs that would have vested on any earlier vesting date shall become immediately vested and deliverable. The PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk- free interest rates. We issued 291,667 RSUs to our executives that vest one-third on each of the first three anniversaries of June 5, 2018. We also issued 180,000 RSUs to members of the board. The members of the board vest ownership in the RSUs on the earlier of the day prior to the date of the Company's annual meeting of shareholders following the date of grant, or one year from the grant date, provided the member of the board continues to serve as a director on the vesting date. As of December 31, 2018, our unrecognized share-based compensation related to the RSUs was $607,000, which we plan to amortize over the next 2.1 years. As of December 31, 2018, our unrecognized share-based compensation related to the PSUs was $16,000, which we plan to amortize over the next 2.4 years. |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 12 | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure Footnote | |
Commitments and Contingencies - Note 12 | 12. COMMITMENTS AND CONTINGENCIES Litigation During 2018, we settled all related claims with Asia Optical relating to its previously filed complaint for arbitration 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 December 31, 2018, we have $6.2 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 capital and operating leases with initial or remaining terms in excess of one year. Future minimum rental commitments under capital and operating leases for years ending December 31, are as follows (in thousands): Capital Operating Years Ended December 31, leases leases 2019 $ 27 $ 654 2020 27 656 2021 9 676 2022 - 696 2023 - 175 Thereafter - - Total minimum lease payments 63 $ 2,857 Less: amount representing interest (9) Present value of capital lease obligations 54 Less: current portion (21) Long-term portion at December 31, 2018 $ 33 Net rent expense was $834,000 in 2018 and $531,000 in 2017. |
INCOME TAXES - Note 13
INCOME TAXES - Note 13 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Income taxes - Note 13 | 13. INCOME TAXES A provision for income taxes has not been recorded for 2018 and 2017 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, 2018, we have net operating loss carryforwards of approximately $398.1 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $8.6 million. During 2018, $7.1 million federal net operating losses expired unused. A majority of the net operating loss carryforwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2019 to 2038, if not previously used. 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. 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. We applied the guidance in Staff Accounting Bulletin No. 118 ("SAB 118") when accounting for the enactment date effects of the Tax Act in 2017 and throughout 2018. At December 31, 2017, we completed our accounting for all the enactment date income tax effects of the Tax Act under Accounting Standards Codification 740, Income Taxes We implemented ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as of January 1, 2018 using the full retrospective approach. The application of the full retrospective approach had no impact to 2018 and prior income tax expense due to a full valuation allowance. The effect of adoption reduced our 2017 deferred tax assets by $1.1 million, which was offset by a change in valuation allowance. Deferred tax assets are summarized as follows (in thousands): December 31, 2018 2017 Deferred tax assets Reserves $ 1,152 $ 1,561 Net operating loss carryforwards 83,608 82,210 R&D credit carryforwards 8,593 7,435 Depreciation/amortization deferred 15,884 13,005 Other 6,076 5,944 Net deferred taxes before valuation allowance 115,313 110,155 Less: Valuation allowance (115,313) (110,155) 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 an income tax benefit. We did not have any unrecognized tax benefits at December 31, 2018 or 2017. We recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2018 and 2017 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 14 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Retirement savings plan - Note 14 | 14. 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, 2018 and 2017 we contributed $376,000 and $278,000 to the plan, respectively. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (unaudited) - Note 15 | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
Quarterly financial information (unaudited) - Note 15 | 15. 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 2018 December 31, September 30, June 30, March 31, Revenue $ 1,833 $ 11,572 $ 2,014 $ 2,188 Gross profit (2,606) 8,927 333 315 Net income (loss) (11,948) 289 (8,459) (7,132) Net loss per share, basic and diluted (0.13) - (0.10) (0.09) Fiscal Year 2017 December 31, September 30, June 30, March 31, Revenue $ 2,302 $ 5,425 $ 1,339 $ 568 Gross profit (248) (278) 346 (48) Net income (loss) (8,119) (5,762) (5,656) (5,949) Net loss per share, basic and diluted (0.10) (0.08) (0.08) (0.09) |
SUBSEQUENT EVENTS - Note 16
SUBSEQUENT EVENTS - Note 16 | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events - Note 16 | |
SUBSEQUENT EVENTS - Note 16 | 16. SUBSEQUENT EVENTS In January 2019, we sold 2.0 million shares of our common stock at a price of $0.60 per share to Shehnee Lawrence-Farhi in a registered direct offering for gross proceeds of $1.2 million. In March 2019, we filed a Notice of Arbitration in Hong Kong against Ragentek alleging breach of contract. The relief sought is $4.0 million dollars plus interest and arbitration costs. At this time we cannot predict the likelihood of a favorable outcome. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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 2017 Tax valuation allowance $ 166,844 $ (55,608) $ - $ - $ 111,236 2018 Tax valuation allowance $ 111,236 $ 4,077 $ - $ - $ 115,313 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Liability, Current, Change | |
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. 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 December 31, 2018, we had $13.8 million in cash and cash equivalents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 through June 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 OEMs and ODMs 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">These factors raise substantial doubt regarding our ability to continue as a going concern. Our 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </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> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>" id="sjs-B5"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 December 31, 2018, we had $13.8 million in cash and cash equivalents.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 through June 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 OEMs and ODMs 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">These factors raise substantial doubt regarding our ability to continue as a going concern. Our 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.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </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> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> |
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, income taxes, 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, 2018 and 2017, 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 | 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. |
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, 2018, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2018, one customer accounted for $10.0 million in revenue, representing 57% of our total revenue and a second customer accounted for $7.4 million in revenue, representing 42% of our total revenue. In 2017, one customer accounted for $5.8 million in revenue, representing 60% of our total revenue and a second customer accounted for $2.3 million in revenue, representing 24% of our total revenue. 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. Research and development costs are expensed as incurred. We believe that a substantial level of continuing research and development expense will be required to further develop our technology. |
Share-based compensation | We issue share-based compensation to employees in the form of stock options and restricted stock units (RSUs), and performance stock units (PSUs). 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 PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. 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 June 2018, the Financial Accounting Standards Board (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). 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 a modified retrospective basis. We have chosen to adopt this guidance on January 1, 2019 using a cumulative-effect adjustment to retained earnings. The most significant impact will be recognition of right-of-use assets and lease liabilities for our office lease. Accounting for our capital leases remains substantially unchanged. Adoption of the standard will result in the recognition of a right-of-use asset of approximately $1.6 million, a lease liability of approximately $2.5 million, and a reduction in other short-term and long-term liabilities of $873,000. Adoption of the standard will not have a material impact on our statement of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Net Loss Per Share) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Contract with Customer, Asset, Net, Current, Percent Change | |
Net Income (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: 2018 2017 Net loss available for common shareholders $ (27,250) $ (25,486) Denominator: Weighted-average common shares outstanding 86,983 72,786 Net loss per share - basic and diluted $ (0.31) $ (0.35) |
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, 2018 2017 Options outstanding and warrants exercisable 6,619 7,007 Nonvested restricted stock units 1,149 185 7,768 7,192 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Share-Based Compensation) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies Share-based Compensation | |
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, 2018 2017 Cost of product revenue $ - $ 39 Research and development expense 439 546 Sales, marketing, general and administrative expense 622 703 $ 1,061 $ 1,288 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition | |
Schedule of disaggregation of revenues | The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Year Ended December 31, 2018 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 10,011 $ 189 $ 10,200 Product and services transferred over time - - 7,407 7,407 Total $ - $ 10,011 $ 7,596 $ 17,607 Year Ended December 31, 2017 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 2,300 $ 350 $ 1,616 $ 4,266 Product and services transferred over time - - 5,368 5,368 Total $ 2,300 $ 350 $ 6,984 $ 9,634 |
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): December 31, December 31, 2018 2017 Accounts receivable, net $ 476 $ 15 Costs and estimated earnings in excess of billings on uncompleted contracts 987 680 Other current assets - 70 Billings on uncompleted contracts in excess of related costs - 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): December 31, December 31, 2018 2017 $ Change % Change Contract assets $ 987 $ 680 $ 307 45.1 Contract liabilities - (5) 5 100.0 Net contract assets (liabilities) $ 987 $ 675 $ 312 46.2 |
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): 2019 2020 Product revenue $ - $ - License and royalty revenue - - Contract revenue 2,513 - |
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): Year Ended December 31, 2017 As previously New revenue As reported standard adjustment restated Product revenue $ 2,300 $ - $ 2,300 License and royalty revenue 1,568 (1,218) 350 Contract revenue 7,023 (39) 6,984 Cost of product revenue 4,359 - 4,359 Cost of contract revenue 5,517 (14) 5,503 Net loss (24,243) (1,243) (25,486) Net loss per share - basic and diluted (0.33) (0.02) (0.35) 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) |
Long-term Contracts (Tables)
Long-term Contracts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Contracts Tables | |
Long-term Contracts (Tables) | The following table summarizes the costs incurred on our revenue contracts (in thousands): December 31, 2018 2017 Costs and estimated earnings incurred on uncompleted contracts $ 12,087 $ 4,680 Billings on uncompleted contracts (11,100) (4,005) $ 987 $ 675 Included in consolidated balance sheets under the following captions: Costs and estimated earnings incurred on uncompleted contracts $ 987 $ 680 Billings on uncompleted contracts in excess of related costs - (5) $ 987 $ 675 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Tables Abstract | |
Inventory (Tables) | Inventory consists of the following (in thousands): December 31, 2018 2017 Raw materials $ 32 $ 53 Finished goods 1,077 4,488 $ 1,109 $ 4,541 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities Tables | |
Accrued liabilities (Tables) | Accrued liabilities consists of the following (in thousands): December 31, 2018 2017 Bonuses $ 1,475 $ 1,143 Adverse purchase commitments - 500 Payroll and payroll taxes 608 631 Compensated absences 493 436 Warranty 25 153 Relocation 22 90 Deferred rent credit 178 37 Separation agreement 241 359 Prepayments from customers 1,585 1,738 Other 975 777 $ 5,602 $ 5,864 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property And Equipment Net Tables | |
Components of Property, Plant and Equipment | Property and equipment consists of the following (in thousands): December 31, 2018 2017 Production equipment $ 7,124 $ 6,573 Leasehold improvements 909 601 Computer hardware and software/lab equipment 6,082 5,515 Office furniture and equipment 1,342 1,304 15,457 13,993 Less: Accumulated depreciation (12,464) (10,742) $ 2,993 $ 3,251 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 (in thousands): Years Ended December 31, Amount 2019 $ 115 2020 98 2021 80 2022 71 2023 54 Thereafter 68 $ 486 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 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 Granted: Exercise price less than intrinsic value - - Exercise price greater than intrinsic value - - Exercised - - Canceled/expired - - Outstanding at December 31, 2018 1,973 $ 2.47 Exercisable at December 31, 2018 1,973 $ 2.47 The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2018 (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 Exercise price 2018 (in years) price 2018 price $2.47 1,973 0.21 $ 2.47 1,973 $ 2.47 1,973 1,973 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies Share-based Compensation | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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) 2018 2017 Volatility 73% 79% Expected term (in years) 3.2 4.0 Risk-free rate 2.8% 1.6% Expected dividends 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% Grant date fair value of options granted $ 0.58 $ 1.03 |
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 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 Granted 1,229 1.16 - - Exercised - - - - Forfeited or expired (1,617) 3.51 - - Outstanding as of December 31, 2018 4,646 $ 2.27 7.0 $ - Vested and expected to vest as of December 31, 2018 4,364 $ 3.04 6.8 $ - Exercisable as of December 31, 2018 2,252 $ 2.30 5.0 $ - |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Tables | |
Future minimum annual operating lease payments | Future minimum rental commitments under capital and operating leases for years ending December 31, are as follows (in thousands): Capital Operating Years Ended December 31, leases leases 2019 $ 27 $ 654 2020 27 656 2021 9 676 2022 - 696 2023 - 175 Thereafter - - Total minimum lease payments 63 $ 2,857 Less: amount representing interest (9) Present value of capital lease obligations 54 Less: current portion (21) Long-term portion at December 31, 2018 $ 33 |
Future minimum annual capital lease payments | Future minimum rental commitments under capital and operating leases for years ending December 31, are as follows (in thousands): Capital Operating Years Ended December 31, leases leases 2019 $ 27 $ 654 2020 27 656 2021 9 676 2022 - 696 2023 - 175 Thereafter - - Total minimum lease payments 63 $ 2,857 Less: amount representing interest (9) Present value of capital lease obligations 54 Less: current portion (21) Long-term portion at December 31, 2018 $ 33 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Deferred tax assets Reserves $ 1,152 $ 1,561 Net operating loss carryforwards 83,608 82,210 R&D credit carryforwards 8,593 7,435 Depreciation/amortization deferred 15,884 13,005 Other 6,076 5,944 Net deferred taxes before valuation allowance 115,313 110,155 Less: Valuation allowance (115,313) (110,155) Deferred tax assets $ - $ - |
Quarterly financial informati_2
Quarterly financial information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 December 31, September 30, June 30, March 31, Revenue $ 1,833 $ 11,572 $ 2,014 $ 2,188 Gross profit (2,606) 8,927 333 315 Net income (loss) (11,948) 289 (8,459) (7,132) Net loss per share, basic and diluted (0.13) - (0.10) (0.09) Fiscal Year 2017 December 31, September 30, June 30, March 31, Revenue $ 2,302 $ 5,425 $ 1,339 $ 568 Gross profit (248) (278) 346 (48) Net income (loss) (8,119) (5,762) (5,656) (5,949) Net loss per share, basic and diluted (0.10) (0.08) (0.08) (0.09) |
Valuation Reserves Schedule (Ta
Valuation Reserves Schedule (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2017 Tax valuation allowance $ 166,844 $ (55,608) $ - $ - $ 111,236 2018 Tax valuation allowance $ 111,236 $ 4,077 $ - $ - $ 115,313 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Concentration of Sales to Major Customers) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Total revenue | $ 1,833 | $ 11,572 | $ 2,014 | $ 2,188 | $ 2,302 | $ 5,425 | $ 1,339 | $ 568 | $ 17,607 | $ 9,634 |
Customer Revenue Concentration | ||||||||||
Total revenue | $ 10,000 | $ 5,800 | ||||||||
Concentration Risk, Percentage | 57.00% | 60.00% | ||||||||
Second Commercial Customer | ||||||||||
Total revenue | $ 7,400 | $ 2,300 | ||||||||
Concentration Risk, Percentage | 42.00% | 24.00% |
Summary of Significant Accoun_6
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||||||||||
Net loss available for common shareholders | $ (11,948) | $ 289 | $ (8,459) | $ (7,132) | $ (8,119) | $ (5,762) | $ (5,656) | $ (5,949) | $ (27,250) | $ (25,486) |
Dilutive incremental share effect from: | ||||||||||
Weighted-average common shares outstanding | 86,983 | 72,786 | ||||||||
Net loss per share - basic and diluted | $ (0.13) | $ 0 | $ (0.10) | $ (0.09) | $ (0.10) | $ (0.08) | $ (0.08) | $ (0.09) | $ (0.31) | $ (0.35) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Net Loss Per Share Convertible Securities and Options Excluded) (Details) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Anti-dilutive shares | 7,768,000 | 7,192,000 |
Options and Warrants Exercisable | ||
Anti-dilutive shares | 6,619,000 | 7,007,000 |
Nonvested Restricted Stock Units | ||
Anti-dilutive shares | 1,490,000 | 185,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based employee compensation expense | $ 1,061 | $ 1,288 |
Cost of product revenue | ||
Share-based employee compensation expense | 0 | 39 |
Research and development expense | ||
Share-based employee compensation expense | 439 | 546 |
Sales, marketing, general and administrative expense | ||
Share-based employee compensation expense | $ 622 | $ 703 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Recent Accounting Pronouncements - Leases) (Details) - Restatement Adjustment [Member] - Accounting Standards Update201602 [Member] $ in Thousands | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Right-of-use asset | $ 1,600 |
Lease liability | 2,500 |
Short and long-term liabilities | $ (873) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregated revenue | $ 17,607 | $ 9,634 |
Product revenue | ||
Disaggregated revenue | 0 | 2,300 |
License and royalty revenue | ||
Disaggregated revenue | 10,011 | 350 |
Contract Revenue | ||
Disaggregated revenue | 7,596 | 6,984 |
Transferred at Point in Time | ||
Disaggregated revenue | 10,200 | 4,266 |
Transferred at Point in Time | Product revenue | ||
Disaggregated revenue | 0 | 2,300 |
Transferred at Point in Time | License and royalty revenue | ||
Disaggregated revenue | 10,011 | 350 |
Transferred at Point in Time | Contract Revenue | ||
Disaggregated revenue | 189 | 1,616 |
Transferred over Time | ||
Disaggregated revenue | 7,407 | 5,368 |
Transferred over Time | Product revenue | ||
Disaggregated revenue | 0 | 0 |
Transferred over Time | License and royalty revenue | ||
Disaggregated revenue | 0 | 0 |
Transferred over Time | Contract Revenue | ||
Disaggregated revenue | $ 7,407 | $ 5,368 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances with Contract Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable | $ 476 | $ 15 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 987 | 680 |
Other current assets | 1,311 | 1,015 |
Billings on uncompleted contracts in excess of related costs | 0 | 5 |
Other current liabilities | 10,154 | 10,142 |
Contracts with Customers | ||
Accounts receivable | 476 | 15 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 987 | 680 |
Other current assets | 0 | 70 |
Billings on uncompleted contracts in excess of related costs | 0 | 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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contractors [Abstract] | ||
Contract assets | $ 987 | $ 680 |
Change in Contract Asset | $ 307 | |
Percent Change in Contract Asset | 45.10% | |
Contract liabilities | $ 0 | (5) |
Change in Contract Liability | $ 5 | |
Percent Change in Contract Liability | 100.00% | |
Net contract assets (liabilities) | $ 987 | $ 675 |
Change in Net Contract Assets (Liabilities) | $ 312 | |
Percent Change in Net Contract Assets (Liabilities) | 46.20% |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Product revenue | 2019 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Product revenue | 2020 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
License and royalty revenue | 2019 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
License and royalty revenue | 2020 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Contract Revenue | 2019 | |
Revenue, Remaining Performance Obligation | $ 2,513 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Contract Revenue | 2020 | |
Revenue, Remaining Performance Obligation | $ 0 |
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 | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net loss | $ (11,948) | $ 289 | $ (8,459) | $ (7,132) | $ (8,119) | $ (5,762) | $ (5,656) | $ (5,949) | $ (27,250) | $ (25,486) |
Net loss per share - basic and diluted | $ (0.13) | $ 0 | $ (0.10) | $ (0.09) | $ (0.10) | $ (0.08) | $ (0.08) | $ (0.09) | $ (0.31) | $ (0.35) |
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 987 | $ 680 | $ 987 | $ 680 | ||||||
Other current assets | 1,311 | 1,015 | 1,311 | 1,015 | ||||||
Billings on uncompleted contracts | 0 | 5 | 0 | 5 | ||||||
Accumulated deficit | $ (546,116) | (518,866) | (546,116) | (518,866) | ||||||
Product revenue | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 2,300 | ||||||||
Cost of Goods and Services Sold | 5,468 | 4,359 | ||||||||
License and royalty | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 10,011 | 350 | ||||||||
Contract | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 7,596 | 6,984 | ||||||||
Cost of Goods and Services Sold | $ 5,170 | 5,503 | ||||||||
Topic 606 | Previously reported | ||||||||||
Net loss | $ (16,382) | |||||||||
Net loss per share - basic and diluted | $ (0.23) | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 680 | $ 680 | ||||||||
Other current assets | 945 | 945 | ||||||||
Billings on uncompleted contracts | 5 | 5 | ||||||||
Deferred revenue - current | 999 | 999 | ||||||||
Deferred revenue - noncurrent | 4,151 | 4,151 | ||||||||
Accumulated deficit | (524,086) | (524,086) | ||||||||
Topic 606 | Previously reported | Product revenue | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 2,300 | |||||||||
Cost of Goods and Services Sold | 4,359 | |||||||||
Topic 606 | Previously reported | License and royalty | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 1,568 | |||||||||
Topic 606 | Previously reported | Contract | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 7,023 | |||||||||
Cost of Goods and Services Sold | 5,517 | |||||||||
Topic 606 | Adjustment | ||||||||||
Net loss | $ (985) | |||||||||
Net loss per share - basic and diluted | $ (0.02) | |||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | $ 0 | ||||||||
Other current assets | 70 | 70 | ||||||||
Billings on uncompleted contracts | 0 | 0 | ||||||||
Deferred revenue - current | (999) | (999) | ||||||||
Deferred revenue - noncurrent | (4,151) | (4,151) | ||||||||
Accumulated deficit | $ 5,220 | 5,220 | ||||||||
Topic 606 | Adjustment | Product revenue | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | |||||||||
Cost of Goods and Services Sold | 0 | |||||||||
Topic 606 | Adjustment | License and royalty | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | (1,218) | |||||||||
Topic 606 | Adjustment | Contract | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax | (39) | |||||||||
Cost of Goods and Services Sold | $ (14) |
Long-Term Contracts (Narrative)
Long-Term Contracts (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 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. If this customer acquires a customer, we expect orders for component sales. We may also receive payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones. During the year ended December 31, 2018 we completed the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue during the year ended December 31, 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> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>" id="sjs-C5"><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. If this customer acquires a customer, we expect orders for component sales. We may also receive payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones. During the year ended December 31, 2018 we completed the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue during the year ended December 31, 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> <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 | $ 7,400,000 | ||
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 $14.6 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 December 31, 2018, we have received $10.7 million in fees for development work and recognized $12.1 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 $14.6 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 year ended December 31, 2018, we have recognized $7.4 million 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-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> <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-C9"><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 $14.6 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 December 31, 2018, we have received $10.7 million in fees for development work and recognized $12.1 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 $14.6 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 year ended December 31, 2018, we have recognized $7.4 million 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-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> <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 |
Long-Term Contracts (Costs Incu
Long-Term Contracts (Costs Incurred on Contracts) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term Contracts Costs Incurred On Contracts Details | ||
Costs and estimated earnings incurred on uncompleted contracts | $ 12,087 | $ 4,680 |
Billings on uncompleted contracts | (11,100) | (4,005) |
Net of costs and billings on uncompleted contracts | 987 | 675 |
Included in accompanying consolidated balance sheets under the following captions: | ||
Other current assets | 987 | 680 |
Billings on uncompleted contracts in excess of related costs | 0 | (5) |
Net of costs and billings on uncompleted contracts | $ 987 | $ 675 |
Inventory Components (Details)
Inventory Components (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Components | ||
Raw materials | $ 32,000 | $ 53,000 |
Finished goods | 1,077,000 | 4,488,000 |
Inventory, net | $ 1,109,000 | $ 4,541,000 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory Narrative | ||
Material classified as other assets | $ 1.4 | $ 2.2 |
Inventory write-downs | $ 4.4 | $ 1 |
Accrued liabilities components
Accrued liabilities components (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued Liabilities Components Details | ||
Bonuses | $ 1,475 | $ 1,143 |
Adverse purchase commitments | 0 | 500 |
Payroll and payroll taxes | 608 | 631 |
Compensated absences | 493 | 436 |
Warranty | 25 | 153 |
Relocation | 22 | 90 |
Deferred rent credit | 178 | 37 |
Separation agreement | 241 | 359 |
Prepayments from customers | 1,585 | 1,738 |
Other | 975 | 777 |
Accrued liabilities | $ 5,602 | $ 5,864 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property And Equipment Details | ||
Production equipment | $ 7,124 | $ 6,573 |
Leasehold improvements | 909 | 601 |
Computer hardware and software/lab equipment | 6,082 | 5,515 |
Office furniture and equipment | 1,342 | 1,304 |
Property and equipment, gross | 15,457 | 13,993 |
Less: Accumulated depreciation | (12,464) | (10,742) |
Property and equipment, net | $ 2,993 | $ 3,251 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property And Equipment Narrative Details | ||
Depreciation expense | $ 1,722 | $ 1,141 |
Property and equipment under capital lease | 770 | 704 |
Accumulated depreciation related to assets under capital lease | $ 713 | $ 704 |
Intangible assets (Future Amort
Intangible assets (Future Amortization) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2,019 | $ 115 |
2,020 | 98 |
2,021 | 80 |
2,022 | 71 |
2,023 | 54 |
Thereafter | 68 |
Total | $ 486 |
Intangible assets (Narrative) (
Intangible assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Narrative Details | ||
Gross value of intangible assets | $ 1,600,000 | $ 1,600,000 |
Amortization expense | $ 116,000 | $ 116,000 |
Number of patents abandoned in prosecution | 0 | 0 |
Common Stock Issuance (Narrativ
Common Stock Issuance (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash received from stock sale, before issuance costs | $ 20,220,000 | $ 19,356,000 |
Public December 2018 | ||
Number of shares of common stock issued | 7,000,000 | |
Cash received from stock sale, before issuance costs | $ 4,200,000 | |
Stock issuance costs | $ 524,000 | |
Terms and provisions | In December 2018, we raised $4.2 million before issuance costs of approximately $524,000 through an underwritten public offering of 7.0 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> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>" id="sjs-B8"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In December 2018, we raised $4.2 million before issuance costs of approximately $524,000 through an underwritten public offering of 7.0 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> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p> | |
Public June 2018 | ||
Number of shares of common stock issued | 14,400,000 | |
Cash received from stock sale, before issuance costs | $ 18,000,000 | |
Stock issuance costs | $ 1,400,000 | |
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> <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-B13"><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> <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 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.</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-B18"><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 | 1,500,000 | |
Cash received from stock sale, before issuance costs | $ 3,200,000 | |
Stock issuance costs | $ 26,000 | |
Terms and provisions | In August 2017, we raised $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>" id="sjs-B23"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In August 2017, we raised $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> | |
Warrant Exercise 2nd Quarter 2017 | ||
Number of shares of common stock issued | 460,000 | |
Cash received from stock sale, before issuance costs | $ 906,000 | |
Terms and provisions | <font style="font-size: 10pt"></font></p> <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> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> <p style="margin: 0"></p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p>" id="sjs-B27"><p style="margin: 0"><font style="font-size: 10pt"></font></p> <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> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> <p style="margin: 0"></p> <p style="margin: 0"><font style="font-size: 10pt"> </font></p> | |
ATM Agreement Terminated June 2017 2nd Quarter 2017 | ||
Number of shares of common stock issued | 1,700,000 | |
Cash received from stock sale, before issuance costs | $ 3,700,000 | |
Stock issuance costs | $ 125,000 | |
Terms and provisions | 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 1.7 million shares of our common stock under an ATM agreement that 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: 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-B32"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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 1.7 million shares of our common stock under an ATM agreement that 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: 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> | |
Agreement Terminated August 2017 2nd Quarter 2017 | ||
Number of shares of common stock issued | 1,200,000 | |
Cash received from stock sale, before issuance costs | $ 2,200,000 | |
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 a common stock purchase agreement entered into in September 2016 that was terminated in August 2017 at our election without penalty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>" id="sjs-B36"><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 a common stock purchase agreement entered into in September 2016 that was terminated in August 2017 at our election without penalty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> |
Warrants (Summary of Warrant Ac
Warrants (Summary of Warrant Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Warrants Summary Of Warrant Activity Details | ||
Warrants, Outstanding as of beginning of period | 1,973 | 3,761 |
Granted with exercise price less than intrinsic value | 0 | 0 |
Granted with exercise price greater than intrinsic value | 0 | 0 |
Exercised | 0 | (460) |
Canceled/expired | 0 | (1,328) |
Warrants, Outstanding as of end of period | 1,973 | 1,973 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $ 2.23 | |
Warrants, Weighted-Average Exercise Prices, Granted less than intrinsic value | $ 0 | 0 |
Warrants, Weighted-Average Exercise Prices, Granted greater than intrinsic value | 0 | 0 |
Warrants, Weighted-Average Exercise Prices, Exercised | 0 | 1.97 |
Warrants, Weighted-Average Exercise Prices, cancelled or expired | 0 | $ 1.97 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of end of period | $ 2.47 | |
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, 2018$ / sharesshares | Dec. 31, 2016$ / shares |
Warrant, exercise price | $ 2.47 | $ 2.23 |
Warrants, Outstanding as of end of period | shares | 1,973 | |
Warrants outstanding, weighted average remaining contractual life, years | 0.21 | |
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 |
Share-based compensation (Weigh
Share-based compensation (Weighted Average Assumptions) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Assumptions (weighted average) | ||
Volatility | 73.00% | 79.00% |
Expected term (in years) | 3 years 72 days | 4 years |
Risk-free rate | 2.80% | 1.60% |
Expected dividends | $ 0 | $ 0 |
Pre-vest forfeiture rate | 8.50% | 8.50% |
Grant date fair value of options granted | $ 0.58 | $ 1.03 |
Share-based compensation (Sched
Share-based compensation (Schedule Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sharebased Compensation Schedule Of Stock Option Activity Legal Entity Details Abstract | |||
Options, Outstanding as of beginning of period | 5,034 | 4,003 | |
Options, Granted | 1,229 | 1,724 | |
Options, Exercised | 0 | (46) | |
Options, Forfeited, or expired | (1,617) | (647) | |
Options, Outstanding as of end of period | 4,646 | 5,034 | |
Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $ 2.94 | $ 3.94 | |
Weighted-Average Exercise Prices, Granted | 1.16 | 1.76 | |
Weighted-Average Exercise Prices, Exercised | 0 | 1.87 | |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired | 3.51 | 6.09 | |
Weighted-Average Exercise Prices, Outstanding as of end of period | $ 2.27 | $ 2.94 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 years | 6 years 216 days | |
Options, Outstanding, Aggregate Intrinsic Value | $ 0 | $ 53 | $ 4 |
Options, Vested and expected to vest at end of period | 4,364 | ||
Weighted-Average Exercise Price, Vested and expected to vest | $ 3.04 | ||
Weighted-Average Remaining Contractual Term (in years), Vested and expected to vest | 6 years 288 days | ||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 0 | ||
Options, Exercisable at end of period | 2,252 | ||
Weighted-Average Exercise Price, Exercisable | $ 2.30 | ||
Weighted-Average Remaining Contractual Term (in years), Exercisable | 5 years | ||
Options, Exercisable, Aggregate Intrinsic Value | $ 0 | ||
Options, Exercises in Period, Intrinsic Value | 40 | ||
Grant date fair value of options vested | $ 958 | $ 1,000 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Employee Stock Options | |
Unrecognized compensation cost related to share-based compensation | $ 1,600,000 |
Weighted-average service period, years | 2 years 108 days |
Restricted Stock Rights | |
Unrecognized compensation cost related to share-based compensation | $ 607,000 |
Weighted-average service period, years | 2 years 36 days |
Commitments and Contingencies_2
Commitments and Contingencies (Operating Leases) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Year ending December 31: | |
2,019 | $ 654 |
2,020 | 656 |
2,021 | 676 |
2,022 | 696 |
2,023 | 175 |
Thereafter | 0 |
Total minimum lease payments | $ 2,857 |
Commitments and Contingencies_3
Commitments and Contingencies (Capital Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Year ending December 31: | ||
2,019 | $ 27 | |
2,020 | 27 | |
2,021 | 9 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 63 | |
Less: amount representing interest | (9) | |
Present value of capital lease obligations | 54 | |
Less: current portion | (21) | $ 0 |
Long-term portion at December 31, 2018 | $ 33 | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies (Lease Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Lease Narrative Details | ||
Net rent expense | $ 834,000 | $ 531,000 |
Commitments and Contingencies_5
Commitments and Contingencies (Adverse Purchase Commitments Narrative) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments And Contingencies Adverse Purchase Commitments Narrative | |
Open purchase obligations | $ 6.2 |
Income taxes (Deferred Tax Asse
Income taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets | ||
Reserves | $ 1,152 | $ 1,561 |
Net operating loss carryforwards | 83,608 | 82,210 |
R&D credit carryforwards | 8,593 | 7,435 |
Depreciation/amortization deferred | 15,884 | 13,005 |
Other | 6,076 | 5,944 |
Net deferred taxes before valuation allowance | 115,313 | 110,155 |
Less: Valuation allowance | (115,313) | (110,155) |
Deferred tax assets | $ 0 | $ 0 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes Narrative Details | ||
Provision for income taxes | $ 0 | $ 0 |
Operating Loss Carryforwards | $ 398.1 | |
Operating loss carryforwards, expiration date | Dec. 31, 2019 | |
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.</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-B7"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">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.</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> | |
Accrued penalties and interest | $ 0 | |
Unrecognized tax benefits | $ 0 | |
Tax years open for examination | 1,998 |
Income taxes (Credit Carryforwa
Income taxes (Credit Carryforwards Narrative) (Details) - R&D Tax Credit $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Tax Credit Carryforward, Description | At December 31, 2018, we have net operating loss carryforwards of approximately $398.1 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $8.6 million. During 2018, $7.1 million federal net operating losses and $310,000 capital losses expired unused. A majority of the net operating loss carryforwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2019 to 2038, if not previously used.</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> <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-B3"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">At December 31, 2018, we have net operating loss carryforwards of approximately $398.1 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $8.6 million. During 2018, $7.1 million federal net operating losses and $310,000 capital losses expired unused. A majority of the net operating loss carryforwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2019 to 2038, if not previously used.</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> <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> |
Tax Credit Carryforward, Amount | $ 8.6 |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2019 |
Retirement savings plan (Narrat
Retirement savings plan (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Savings Plan Narrative Details | ||
Contribution to 401 (k) plan | $ 376,000 | $ 278,000 |
Quarterly financial informati_3
Quarterly financial information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Details | ||||||||||
Revenue | $ 1,833 | $ 11,572 | $ 2,014 | $ 2,188 | $ 2,302 | $ 5,425 | $ 1,339 | $ 568 | $ 17,607 | $ 9,634 |
Gross profit | (2,606) | 8,927 | 333 | 315 | (248) | (278) | 346 | (48) | 6,969 | (228) |
Net income (loss) | $ (11,948) | $ 289 | $ (8,459) | $ (7,132) | $ (8,119) | $ (5,762) | $ (5,656) | $ (5,949) | $ (27,250) | $ (25,486) |
Net loss per share - basic and diluted | $ (0.13) | $ 0 | $ (0.10) | $ (0.09) | $ (0.10) | $ (0.08) | $ (0.08) | $ (0.09) | $ (0.31) | $ (0.35) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - Tax valuation allowance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Balance at beginning of fiscal period | $ 111,236 | $ 166,844 |
Charges to costs and expenses | 4,077 | (55,608) |
Charges to other accounts | 0 | 0 |
Deductions | 0 | 0 |
Balance at end of fiscal period | $ 115,313 | $ 111,236 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | 1 Months Ended | |
Mar. 31, 2019 | Jan. 31, 2019 | |
Subsequent Events Narrative | ||
Subsequent Event, Description | In March 2019, we filed a Notice of Arbitration in Hong Kong against Ragentek alleging breach of contract. The relief sought is $4.0 million dollars plus interest and arbitration costs. At this time we cannot predict the likelihood of a favorable outcome. </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-B4"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In March 2019, we filed a Notice of Arbitration in Hong Kong against Ragentek alleging breach of contract.  The relief sought is $4.0 million dollars plus interest and arbitration costs.  At this time we cannot predict the likelihood of a favorable outcome. </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> | In January 2019, we sold 2.0 million shares of our common stock at a price of $0.60 per share to Shehnee Lawrence-Farhi in a registered direct offering for gross proceeds of $1.2 million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p>" id="sjs-C4"><p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">In January 2019, we sold 2.0 million shares of our common stock at a price of $0.60 per share to Shehnee Lawrence-Farhi in a registered direct offering for gross proceeds of $1.2 million.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> </p> |