Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 09, 2021 | Jun. 30, 2020 | |
Contract with Customer, Liability, Current, Change | |||
Entity Registrant Name | Microvision, Inc. | ||
Entity Central Index Key | 0000065770 | ||
Entity File Number | 001-34170 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Incorporation, State or Country Code | DE | ||
Interactive Data Current | Yes | ||
Is Entity a Well-known Seasoned Issuer? | Yes | ||
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 | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 157,327,415 | ||
Entity Public Float | $ 208 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 16,862 | $ 5,837 |
Accounts receivable | 0 | 1,079 |
Inventory | 0 | 192 |
Other current assets | 698 | 729 |
Total current assets | 17,560 | 7,837 |
Property and equipment, net | 1,883 | 1,849 |
Operating lease right-of-use asset | 946 | 1,308 |
Restricted cash | 435 | 435 |
Intangible assets | 164 | 221 |
Other assets | 18 | 186 |
Total assets | 21,006 | 11,836 |
Current liabilities | ||
Accounts payable | 630 | 1,871 |
Accrued liabilities | 495 | 2,045 |
Deferred revenue | 0 | 21 |
Contract liabilities | 7,765 | 9,755 |
Other current liabilities | 0 | 83 |
Current portion of long-term debt | 431 | 0 |
Current portion of operating lease liability | 676 | 656 |
Current portion of finance lease obligations | 31 | 25 |
Total current liabilities | 10,028 | 14,456 |
Long-term debt, net of current portion | 1,151 | 0 |
Operating lease liability, net of current portion | 774 | 1,348 |
Finance lease obligations, net of current portion | 44 | 9 |
Total liabilities | 11,997 | 15,813 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity (deficit) | ||
Preferred stock, par value $0.001; 25,000 shares authorized; zero and zero shares issued and outstanding | 0 | 0 |
Common stock, par value $0.001; 210,000 shares authorized; 152,926 and 125,803 shares issued and outstanding at December 31, 2020 and 2019, respectively | 153 | 126 |
Additional paid-in capital | 601,224 | 568,496 |
Subscriptions receivable | (6,135) | 0 |
Accumulated deficit | (586,233) | (572,599) |
Total shareholders' equity (deficit) | 9,009 | (3,977) |
Total liabilities and shareholders' equity (deficit) | 21,006 | 11,836 |
Reconciliation of cash, cash equivalents, and restricted cash balances | ||
Cash and cash equivalents | 16,862 | 5,837 |
Restricted cash | 435 | 435 |
Cash, cash equivalents, and restricted cash | $ 17,297 | $ 6,272 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Allowance for doubtful accounts receivable, current | $ 0 | $ 0 |
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 | 210,000 | 150,000 |
Common stock, shares issued | 152,926 | 125,803 |
Common stock, shares outstanding | 152,926 | 125,803 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 3,090 | $ 8,886 |
Operating expenses: | ||
Total cost of revenue | 1,398 | 8,564 |
Gross profit | 1,692 | 322 |
Research and development expense | 9,840 | 18,661 |
Sales, marketing, general and administrative expense | 5,917 | 8,133 |
Gain on disposal of fixed assets | (450) | |
Total operating expenses | 15,307 | 26,794 |
Loss from operations | (13,615) | (26,472) |
Other expense, net | (19) | (11) |
Net loss | $ (13,634) | $ (26,483) |
Net loss per share - basic and diluted | $ (0.10) | $ (0.24) |
Weighted-average shares outstanding - basic and diluted | 139,829,000 | 111,297,000 |
Product revenue | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,347 | $ 5,345 |
Operating expenses: | ||
Cost of Goods and Services Sold | 1,394 | 6,692 |
License and royalty | ||
Revenue from Contract with Customer, Including Assessed Tax | 1,718 | 99 |
Contract | ||
Revenue from Contract with Customer, Including Assessed Tax | 25 | 3,442 |
Operating expenses: | ||
Cost of Goods and Services Sold | $ 4 | $ 1,872 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional paid-in capital | Subscriptions receivable | Accumulated deficit | Total |
Beginning balances at Dec. 31, 2018 | $ 100 | $ 550,133 | $ 0 | $ (546,116) | $ 4,117 |
Beginning balances, shares at Dec. 31, 2018 | 100,105 | ||||
Share-based compensation expense | $ 1 | 1,613 | 0 | 0 | $ 1,614 |
Share-based compensation expense, shares | 822 | ||||
Exercise of options, shares | 0 | ||||
Sales of common stock | $ 25 | 16,750 | 0 | 0 | $ 16,775 |
Sales of common stock, shares | 24,876 | ||||
Net loss | $ 0 | 0 | 0 | (26,483) | (26,483) |
Ending balances at Dec. 31, 2019 | $ 126 | 568,496 | 0 | (572,599) | (3,977) |
Ending balances, shares at Dec. 31, 2019 | 125,803 | ||||
Share-based compensation expense | $ 0 | 1,252 | 0 | 0 | 1,252 |
Share-based compensation expense, shares | 201 | ||||
Exercise of options | $ 1 | 999 | 0 | 0 | $ 1,000 |
Exercise of options, shares | 693 | 693 | |||
Sales of common stock | $ 26 | 30,477 | (6,135) | 0 | $ 24,368 |
Sales of common stock, shares | 26,229 | ||||
Net loss | $ 0 | 0 | 0 | (13,634) | (13,634) |
Ending balances at Dec. 31, 2020 | $ 153 | $ 601,224 | $ (6,135) | $ (586,233) | $ 9,009 |
Ending balances, shares at Dec. 31, 2020 | 152,926 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (13,634) | $ (26,483) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and amortization | 963 | 1,649 |
Impairment of intangible assets | 0 | 160 |
Impairment of property and equipment | 0 | 434 |
Gain on disposal of property and equipment | (450) | 0 |
Share-based compensation expense | 1,297 | 1,569 |
Non-cash interest expense | 11 | 0 |
Inventory write-downs | 168 | 2,203 |
Change in: | ||
Accounts receivable | 1,079 | (603) |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 987 |
Inventory | 24 | (1,286) |
Other current and non-current assets | 154 | 1,911 |
Accounts payable | (1,387) | (268) |
Accrued liabilities | (1,550) | (3,379) |
Deferred revenue | (21) | 21 |
Contract liabilities and other currrent liabilities | (2,073) | (316) |
Operating lease liabilities | (656) | (642) |
Net cash used in operating activities | (16,075) | (24,043) |
Cash flows from investing activities | ||
Proceeds on sale of property and equipment | 525 | 0 |
Purchases of property and equipment | (402) | (745) |
Net cash provided by used in investing activities | 123 | (745) |
Cash flows from financing activities | ||
Principal payments under finance leases | (29) | (20) |
Proceeds from long-term debt | 1,571 | 0 |
Net proceeds from issuance of common stock | 25,435 | 16,879 |
Net cash provided by financing activities | 26,977 | 16,859 |
Change in cash and cash equivalents, and restricted cash | 11,025 | (7,929) |
Cash, cash equivalents and restricted cash at beginning of period | 6,272 | 14,201 |
Cash, cash equivalents and restricted cash at end of period | 17,297 | 6,272 |
Supplemental schedule of non-cash investing and financing activities | ||
Issuance of common stock for subscriptions receivable | 6,135 | 0 |
Property and equipment acquired under finance leases | 70 | 0 |
Non-cash additions to property and equipment | 116 | 37 |
Issuance of common stock for commitment fee | $ 0 | $ 535 |
THE COMPANY AND LIQUIDITY - Not
THE COMPANY AND LIQUIDITY - Note 1 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
The Company and Liquidty - Note 1 | 1. THE COMPANY AND LIQUIDITY MicroVision, Inc. is developing a lidar sensor to be used in automotive safety and autonomous driving applications. Our lidar sensor uses our pioneering laser beam scanning (LBS) technology. Our LBS technology is based on our patented expertise in systems that include micro-electrical mechanical systems (MEMS), laser diodes, opto-mechanics, electronics, algorithms and software, and how those elements are packaged into a small form factor. Our lidar sensor also utilizes edge computing and machine intelligence as part of the solutions. Though automotive lidar is our priority now, we have developed solutions for Augmented Reality, Interactive Displays, and Consumer Lidars. For the past few years, our strategy been to sell AR displays or components, Interactive Displays, or Consumer Lidars to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) for incorporation into their products. However, while we do have a well-known customer for one of these products which generates royalty income, the volume of sales and resulting royalties from that product are not significant, and we have been unable to secure additional customers to launch one of our products. As a result, since February 2020, we have focused our attention on strategic alternatives, including a potential sale or merger of the Company, sale of part of the Company, strategic minority investment, as well as licensing and other transactions. While we continue to pursue strategic alternatives, we plan to focus on increasing the value of the Company by completing development of our 1st Generation LRL module to a level that would be ready to scale in the market. We believe our technology and designs for automotive lidar can be successful in the market, and our solutions will have features and performance that exceed those of competitors and will provide a sustainable strategic advantage in the market. 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. Since 2010, there has been substantial doubt about our ability to continue as a going concern. On October 8, 2020, we filed a Certificate of Amendment (the "Certificate of Amendment") to our Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the authorized number of shares of our capital stock to 235,000,000 shares, consisting of (i) 210,000,000 shares of common stock, $.001 par value and (ii) 25,000,000 shares of preferred stock, $.001 par value. The Certificate of Amendment was effective upon the filing thereof with the Secretary of State of the State of Delaware. In late 2020 and early 2021, the share price of our common stock on The Nasdaq Global Market has increased dramatically. With the availability of authorized shares of common stock, we have been able to raise net proceeds of $12.7 million through the issuance 2.1 million shares of our common stock and $48.7 million through the issuance of 2.5 million shares of our common stock, in January 2021 and February 2021, respectively, under the terms of At-the-Market (ATM) offering agreements with Craig-Hallum Capital Group (Craig-Hallum). As a result of our recent financing activities, there is no longer substantial doubt about our ability to continue as a going concern. At December 31, 2020, we had $16.9 million in cash and cash equivalents. Based on our current operating plan and including $61.4 million received in 2021 under ATM equity offering agreements with Craig-Hallum, we anticipate that we have sufficient cash and cash equivalents to fund our operations for at least the next 12 months. While we continue to pursue strategic alternatives, we may require additional capital to fund our operating plan past that time. We may seek additional capital through the issuance of equity or debt securities, 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 further reductions in our research and development projects, staff, operating costs, and capital expenditures. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Note 2 | 12 Months Ended |
Dec. 31, 2020 | |
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. 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. Our property and equipment may include assets related to future product lines. 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, 2020 and 2019, 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. Leases We determine if an arrangement is a lease at inception. On our balance sheet, our office lease is included in Operating lease right-of-use (ROU) asset, Current portion of operating lease liability and Operating lease liability, net of current portion. On our balance sheet, finance leases are included in Property and equipment, Current portion of finance lease obligations and Finance lease obligations, net of current portion. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Significant judgment may be required when determining whether a contract contains a lease, the length of the lease term, the allocation of the consideration in a contract between lease and non-lease components, and the determination of the discount rate included in our office lease. We review the underlying objective of each contract, the terms of the contract, and consider our current and future business conditions when making these judgments. 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 module. 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, 2020, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2020, one customer accounted for $3.0 million in revenue, representing 97% of our total revenue. In 2019, one customer accounted for $7.7 million in revenue, representing 86% of our total revenue and a second customer accounted for $1.2 million in revenue, representing 13% 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, 2020 2019 Numerator: Net loss available for common shareholders $ (13,634) $ (26,483) Denominator: Weighted-average common shares outstanding 139,829 111,297 Net loss per share - basic and diluted $ (0.10) $ (0.24) During each of the years ended December 31, 2020 and 2019, 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, 2020 2019 Options outstanding 3,281 5,104 Nonvested restricted stock units 1,982 1,215 5,263 6,319 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, 2020 2019 Cost of product revenue $ - $ 26 Research and development expense 699 379 Sales, marketing, general and administrative expense 598 1,209 $ 1,297 $ 1,614 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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2019-12 (ASU 2019-12) Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendments also improve consistent application of and simplify generally accepted accounting principles for other areas of Topic 740 by clarifying and amending existing guidance. The new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. We do not expect that the adoption of this standard will have a material impact on our financial statements. |
REVENUE RECOGNITION - Note 3
REVENUE RECOGNITION - Note 3 | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION - Note 3 | 3. 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. Disaggregation of revenue The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Year Ended December 31, 2020 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 1,347 $ 1,718 $ 4 $ 3,069 Product and services transferred over time - - 21 21 Total $ 1,347 $ 1,718 $ 25 $ 3,090 Year Ended December 31, 2019 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 5,345 $ 99 $ 178 $ 5,622 Product and services transferred over time - - 3,264 3,264 Total $ 5,345 $ 99 $ 3,442 $ 8,886 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): December 31, 2020 2019 Accounts receivable, net $ - $ 1,079 Accrued liabilities - 432 Deferred revenue - 21 Contract liabilities 7,765 9,755 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 Balance Sheet. Contract assets represent rights to consideration that are subject to a condition other than the passage of time and will be comprised primarily of costs and estimated profits in excess of billings on uncompleted contracts and estimated accrued sales-based royalty revenue. Contract liabilities in the table below are presented as contract liabilities, deferred revenue, and a portion of accrued liabilities on the balance sheet. 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, 2020 2019 $ Change % Change Contract assets $ - $ - $ - - Contract liabilities (7,765) (10,208) 2,443 23.9 Net contract assets (liabilities) $ (7,765) $ (10,208) $ 2,443 23.9 During the year ended December 31, 2020, we applied $2.0 million against the contract liability with our April 2017 customer. During 2019, we reached an agreement with the distributor in our Ragentek contract on the final transaction price of the units shipped to them. As part of the agreement reached in 2019, we agreed to return $432,000 of the original transaction price to our distributor and the amount was included in accrued liabilities at December 31, 2019. During the year ended December 31, 2020, payments totaling $332,000 were made to the distributor. In 2020, we settled all claims with Ragentek and our distributor. Per the terms of the agreement, the final $100,000 payment to our distributor was no longer required. As a result, we recognized $100,000 of product revenue during the year ended December 31, 2020 as an adjustment to the transaction price of products previously transferred to our customer. Contract acquisition costs 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, 2020. 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 $10.0 million upfront payment received from a major technology company is being recognized as revenue as component sales are transferred to the customer. During the years ended December 31, 2020 and 2019, we recognized $2.0 million and $245,000, respectively, of the $10.0 million contract liability. We expect to apply an additional $3.2 million in 2021, and this amount is included in revenue below. Because there is uncertainty about the timing of the application of the remainder of the contract liability, it has been excluded from future estimated revenue in the table below. The $7.8 million contract liability is classified as a current liability on our balance sheet. Due to the uncertainty of the timing, it is possible that recognition of revenue may extend beyond the next twelve months. The following table provides information about the estimated timing of revenue recognition (in thousands): 2021 2022 License and royalty revenue $ 3,222 $ - Adoption of the standards related to revenue recognition had no impact to cash from or used in operating, investing, or financing activities on our statements of cash flows. |
LONG-TERM CONTRACTS - Note 4
LONG-TERM CONTRACTS - Note 4 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Long-term contracts - Note 4 | 4. LONG-TERM CONTRACTS In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million in 2017 and, as of December 31, 2019, had also received $15.0 million, net of early payment discounts, representing all payment due for development work. The original contract was for $14.0 million in fees for development work, but we and our customer agreed to add $1.1 million in additional work to total $15.1 million. After applying early payment discounts, we recognized revenue of $15.0 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, 2019, we recognized $2.9 million of contract revenue from development fees on this agreement. Beginning in the fourth quarter of 2019, the $10.0 million upfront payment was being recognized as revenue at the point in time that component sales were sold to the major technology customer. In March 2020, we entered into an agreement for our customer to take over production of the components we had been producing for them. The agreement provides that, beginning in March 2020, we will earn a royalty on each component shipped that is approximately equal to the gross profit we would have earned if we continued to produce and ship the components. Under the new arrangement, the royalties earned will be applied against the remaining $7.8 million prepayment that we had previously received from the customer until the prepayment is exhausted. |
LONG-TERM DEBT - Note 5
LONG-TERM DEBT - Note 5 | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT - Note 5 | 5. LONG-TERM DEBT In April 2020, we received funds in the amount of $1.6 million pursuant to a loan under the Paycheck Protection Program of the 2020 CARES Act ("PPP") administered by the Small Business Administration. The loan has an interest rate of 0.98% and a term of 24 months. No payments are due for the first 10 months following the 24-week covered period, although interest accrues during that period. Thereafter, the loan is repayable in monthly installments over the next 18 months to retire the loan plus accrued interest. Funds from the loan may only be used for certain purposes, including payroll, benefits, rent and utilities, and a portion of the loan used to pay certain costs may be forgivable, all as provided by the terms of the PPP. The loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. We may prepay the loan at any time prior to maturity with no prepayment penalties. As of December 31, 2020, all of the funds received under the PPP had been used for qualified purposes. We intend to apply for partial forgiveness of the loan under PPP guidelines. Based on the terms of the PPP, we plan to apply for forgiveness of approximately $690,000, subject to approval by our lender in accordance with PPP guidelines. |
INVENTORY - Note 6
INVENTORY - Note 6 | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure | |
Inventory - Note 6 | 6. INVENTORY Inventory consists of the following (in thousands): December 31, 2020 2019 Raw materials $ - $ - Finished goods - 192 $ - $ 192 We recorded inventory write-downs of $168,000 in 2020 and $2.2 million in 2019. |
ACCRUED LIABILITIES - Note 7
ACCRUED LIABILITIES - Note 7 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Accrued liabilities - Note 7 | 7. ACCRUED LIABILITIES Accrued liabilities consists of the following (in thousands): December 31, 2020 2019 Bonuses $ - $ 201 Payroll and payroll taxes 361 425 Compensated absences - 448 Warranty 49 38 Prepayments from customers - 432 Other 85 501 $ 495 $ 2,045 |
PROPERTY AND EQUIPMENT - Note 8
PROPERTY AND EQUIPMENT - Note 8 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Property and equipment - Note 8 | 8. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): December 31, 2020 2019 Production equipment $ 7,210 $ 6,969 Leasehold improvements 913 913 Computer hardware and software/lab equipment 6,226 6,165 Office furniture and equipment 1,345 1,345 15,694 15,392 Less: Accumulated depreciation (13,811) (13,543) $ 1,883 $ 1,849 Depreciation expense was $442,000 in 2020 and $1.1 million in 2019. |
INTANGIBLE ASSETS - Note 9
INTANGIBLE ASSETS - Note 9 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Intangible assets - Note 9 | 9. INTANGIBLE ASSETS Our intangible assets consist exclusively of technology-based purchased patents. The gross book value of our intangible assets was $951,000 in the years ended December 31, 2020 and 2019, respectively. Amortization expense was $57,000 in 2020 and $105,000 in 2019. In 2019, we recorded an impairment amounting to $160,000 on 52 patents that we elected not to renew, and one patent abandoned in prosecution. The following table outlines our estimated future amortization expense related to intangible assets held at December 31, 2020 (in thousands): Years Ended December 31, Amount 2021 $ 49 2022 40 2023 32 2024 22 2025 14 Thereafter 7 $ 164 |
COMMON STOCK - Note 10
COMMON STOCK - Note 10 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Common stock - Note 10 | 10. COMMON STOCK In December 2020, we entered into a $13.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we may, from time to time, at our discretion offer and sell shares of our common stock having an aggregate value of up to $13.0 million through Craig-Hallum. As of December 31, 2020, we had issued 1.0 million shares for net proceeds of $6.1 million that was received in January 2021. The $6.1 million is classified as subscriptions receivable on our December 31, 2020 balance sheet and is not included in the cash balance as of December 31, 2020. In November 2020, we entered into a $10.0 million ATM equity offering agreement with Craig-Hallum Capital Group. Under the agreement we were able to, from time to time, at our discretion offer and sell shares of our common stock having an aggregate value of up to $10.0 million through Craig-Hallum. As of December 31, 2020, we had completed sales under such sales agreement, having sold 4.9 million shares for net proceeds of $9.6 million. In December 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $16.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of 1.5 million shares of common stock for $1.0 million at a purchase price of $0.6531 per share. Subject to various limitations and conditions set forth in the agreement, we were able to sell up to an additional $15.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning December 2019. In consideration for entering into the agreement, we issued 375,000 shares of our common stock, having a value of $277,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $90,000 in issuance costs. As of December 31, 2020, we had completed sales under such sales agreement, having sold 22.2 million shares for net proceeds of $15.6 million. In July 2019, we raised $2.0 million before issuance costs of approximately $24,000 through a registered direct offering of 3.0 million shares of our common stock to a private investor. In April 2019, we raised $2.0 million before issuance costs of approximately $34,000 through a registered direct offering of 2.3 million shares of our common stock to a private investor. In April 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $11.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of $1.0 million in shares of common stock at a purchase price of $0.98 per share. Subject to various limitations and conditions set forth in the agreement, we were able to sell up to an additional $10.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning April 2019. In consideration for entering into the agreement, we issued 250,000 shares of our common stock, having a value of $258,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $92,000 in issuance costs. As of December 31, 2019, we had issued 15.7 million shares and raised a total of $11.0 million under this agreement. No further shares are available for sales under this agreement. In January 2019, we raised $1.2 million before issuance costs of approximately $26,000 through a registered direct offering of 2.0 million shares of our common stock to a private investor. |
SHARE-BASED COMPENSATION - Note
SHARE-BASED COMPENSATION - Note 11 | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 Incentive Plan has 17.3 million shares authorized, of which 8.1 million shares were available for awards as of December 31, 2020. 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, 2020 2019 Assumptions (weighted-average) Volatility 111% 78% Expected term (in years) 4.0 4.0 Risk-free rate 0.3% 1.9% Expected dividends 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% Grant date fair value of options granted $ 1.20 $ 0.37 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, 2018 4,646 $ 2.27 7.0 $ - Granted 1,636 0.65 - - Exercised - - - - Forfeited or expired (1,178) 2.66 - - Outstanding as of December 31, 2019 5,104 1.66 7.4 122 Granted 68 1.60 - - Exercised (693) 1.44 - - Forfeited or expired (1,198) 2.20 - - Outstanding as of December 31, 2020 3,281 $ 1.51 6.6 $ 12,784 Vested and expected to vest as of December 31, 2020 3,193 $ 1.53 6.5 $ 12,379 Exercisable as of December 31, 2020 2,086 $ 1.86 5.6 $ 7,413 No options were exercised during the year ended December 31, 2019. The total grant date fair value of options vested during the years ended December 31, 2020 and 2019 was $604,000 and $801,000, respectively. As of December 31, 2020, our unrecognized share-based compensation was $376,000 related to options, which we plan to amortize over the next 1.2 years. In 2020, we issued 111,000 RSUs as new hire grants to non-executive employees. These shares were valued based on the closing price of our common stock on the dates of grant. These shares vest on the earlier of a change of control of the Company or the one-year anniversary of the grant date. In June 2020, we issued 1.2 million RSUs to non-executive employees for retention purposes. These shares were valued based on the closing price of our common stock on the date of grant. These shares vest on the earlier of a change of control of the Company or the one-year anniversary of the grant date. In the fourth quarter of 2019, we issued 384,751 vested RSUs to our executives in lieu of cash for payment of short-term incentive bonuses earned in 2018. On May 22, 2019, we issued 195,000 PSUs to our executive officers. The performance criteria for PSUs issued in May 2019 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, the PSUs 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 May 22, 2019. 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 also issued 475,000 stock options to our executives on May 22, 2019, that vest one-third on each of the first three anniversaries of May 22, 2019. On May 19, 2020 and May 22, 2019, we issued 120,000 and 180,000 RSUs, respectively, to members of the board, vesting 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. On November 11, 2019 we issued 163,734 RSUs to the members of the board in lieu of the annual cash fee. The members of the board vest ownership in the RSUs immediately. As of December 31, 2020, our unrecognized share-based compensation related to the RSUs was $751,000 which we plan to amortize over the next 0.5 years. As of December 31, 2020, our unrecognized share-based compensation related to the PSUs was $5,000, which we plan to amortize over the next 1.0 years. |
LEASES - Note 12
LEASES - Note 12 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
LEASES - Note 12 | 12. LEASES 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 ROU 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. We adopted this guidance using the cumulative-effect adjustment method on January 1, 2019, meaning we did not restate prior periods. Current year financial information is presented under the guidance in Topic 842, while prior year information will continue to be presented under Topic 840. Adoption of the standard resulted in the recognition of an operating ROU 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 did not have a material impact on our Statement of Operations or Statement of Cash flows. Accounting for our finance leases remains substantially unchanged. We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to three years. Our office space lease contains an option to extend the lease for one period of five years. This extension period is not included in our ROU asset or lease liability amounts. Our office lease agreement includes both lease and non-lease components, which are accounted for separately. Our finance leases contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless we are reasonably certain to exercise the purchase option. The components of lease expense were as follows: Year Ended December 31, (in thousands) 2020 2019 Operating lease expense $ 464 $ 464 Finance lease expense: Amortization of leased assets 26 15 Interest on lease liabilities 3 6 Total finance lease expense 29 21 Total lease expense $ 493 $ 485 Supplemental cash flow information related to leases was as follows: Year Ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 656 $ 642 Operating cash flows from finance leases 3 6 Financing cash flows from finance leases 29 20 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ - $ 1,638 Supplemental balance sheet information related to leases was as follows: December 31, (in thousands) 2020 2019 Operating leases Operating lease right-of-use assets $ 946 $ 1,308 Current portion of operating lease liability 676 656 Operating lease liability, net of current portion 774 1,348 Total operating lease liabilities $ 1,450 $ 2,004 Finance leases Property and equipment, at cost $ 112 $ 66 Accumulated depreciation (28) (25) Property and equipment, net $ 84 $ 41 Current portion of finance lease obligations $ 31 $ 25 Finance lease obligations, net of current portion 44 9 Total finance lease liabilities $ 75 $ 34 Weighted Average Remaining Lease Term Operating leases 2.3 years 3.3 years Finance leases 2.0 years 1.4 years Weighted Average Discount Rate Operating leases 6.0% 6.0% Finance leases 6.3% 13.8% As of December 31, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2021 $ 676 $ 35 2022 696 25 2023 175 21 2024 - - Thereafter - - Total minimum lease payments 1,547 81 Less: amount representing interest (97) (6) Present value of lease liabilities $ 1,450 $ 75 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 13 | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure Footnote | |
Commitments and Contingencies - Note 13 | 13. COMMITMENTS AND CONTINGENCIES Litigation In March 2019, we filed a Notice of Arbitration in Hong Kong against Ragentek as a result of its failure to perform its obligations under a purchase order with us. During 2019, we reached an agreement with the distributor in our Ragentek contract on the final transaction price of the units shipped to them. As part of the agreement reached in 2019, we agreed to return $432,000 of the original transaction price to our distributor. During 2020, payments totaling $332,000 were made to the distributor and we settled all claims with Ragentek and our distributor. Per the terms of the agreement in 2020, the final $100,000 payment to our distributor was no longer required. Upon settlement we dismissed the arbitration. 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. |
INCOME TAXES - Note 14
INCOME TAXES - Note 14 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Income taxes - Note 14 | 14. INCOME TAXES A provision for income taxes has not been recorded for 2020 and 2019 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. The effective tax rate of our provision (benefit) for income taxes differs from the Federal statutory rate as follows: Year Ended December 31, 2020 2019 Statutory rate 21.0% 21.0% Net operating loss expiration (47.5)% (14.7)% Tax credits 2.2% 2.8% Change in valuation allowance 24.3% (9.1)% Total 0.0% 0.0% Deferred tax assets are summarized as follows (in thousands): December 31, 2020 2019 Deferred tax assets Reserves $ 647 $ 610 Net operating loss carryforwards 83,289 85,282 R&D credit carryforwards 8,836 9,047 Depreciation/amortization deferred 15,862 16,978 Other 5,773 5,808 Net deferred taxes before valuation allowance 114,407 117,725 Less: Valuation allowance (114,407) (117,725) Deferred tax assets $ - $ - At December 31, 2020, we have net operating loss carryforwards of approximately $396.6 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $8.8 million. During 2020, $28.4 million federal net operating losses and $512,000 general business credits 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 2021 to 2040, if not previously used. 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. 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. We did not have any unrecognized tax benefits at December 31, 2020 or 2019. We recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2020 and 2019 we did not recognize any interest or penalties. We file income tax returns in the U.S. federal jurisdiction and Oregon. 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 15 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Retirement savings plan - Note 15 | 15. 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, 2020 and 2019 we contributed $213,000 and $393,000 to the plan, respectively. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (unaudited) - Note 16 | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Quarterly financial information (unaudited) - Note 16 | 16. 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 2020 December 31, September 30, June 30, March 31, Revenue $ 395 $ 639 $ 587 $ 1,469 Gross profit 395 639 588 70 Net loss (3,570) (2,826) (2,304) (4,934) Net loss per share, basic and diluted (0.02) (0.02) (0.02) (0.04) Fiscal Year 2019 December 31, September 30, June 30, March 31, Revenue $ 4,605 $ 1,190 $ 1,240 $ 1,851 Gross profit 1,179 (882) (583) 608 Net loss (3,284) (6,141) (8,990) (8,068) Net loss per share, basic and diluted (0.03) (0.05) (0.08) (0.08) For the quarter ended December 31, 2019, net loss included a reversal of previously accrued bonuses in the amount of $770,000. |
SUBSEQUENT EVENT - Note 17
SUBSEQUENT EVENT - Note 17 | 12 Months Ended |
Dec. 31, 2020 | |
Included in accompanying consolidated balance sheets under the following captions: | |
SUBSEQUENT EVENT - Note 17 | 17. SUBSEQUENT EVENT In January 2021, we issued 1.1 million shares of our common stock for net proceeds of $6.6 million under the December 2020 ATM equity offering agreement with Craig-Hallum. In January 2021, we also received $6.1 million for the 1.0 million shares of common stock that were issued in December 2020. In total, we have issued 2.1 million shares of our common stock for net proceeds of $12.7 million under this ATM agreement. No further shares are available for sales under this agreement. In February 2021, we entered into a $50.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we were able, at our discretion, to offer and sell shares of our common stock having an aggregate value of up to $50.0 million through Craig-Hallum. We have issued 2.5 million shares of our common stock for net proceeds of $48.7 million under this ATM agreement. No further shares are available for sales under this agreement. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | MicroVision, Inc. 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 2019 Tax valuation allowance $ 115,313 $ 2,412 $ - $ - $ 117,725 2020 Tax valuation allowance $ 117,725 $ - $ - $ (3,318) $ 114,407 All other schedules are omitted because they are not applicable, or because the information required is included in the financial statements and notes thereto. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Notes To Financial Statements Abstract | |
Management's Statement and Policies (Policies) | MicroVision, Inc. is developing a lidar sensor to be used in automotive safety and autonomous driving applications. Our lidar sensor uses our pioneering laser beam scanning (LBS) technology. Our LBS technology is based on our patented expertise in systems that include micro-electrical mechanical systems (MEMS), laser diodes, opto-mechanics, electronics, algorithms and software, and how those elements are packaged into a small form factor. Our lidar sensor also utilizes edge computing and machine intelligence as part of the solutions. Though automotive lidar is our priority now, we have developed solutions for Augmented Reality, Interactive Displays, and Consumer Lidars. For the past few years, our strategy been to sell AR displays or components, Interactive Displays, or Consumer Lidars to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) for incorporation into their products. However, while we do have a well-known customer for one of these products which generates royalty income, the volume of sales and resulting royalties from that product are not significant, and we have been unable to secure additional customers to launch one of our products. As a result, since February 2020, we have focused our attention on strategic alternatives, including a potential sale or merger of the Company, sale of part of the Company, strategic minority investment, as well as licensing and other transactions. While we continue to pursue strategic alternatives, we plan to focus on increasing the value of the Company by completing development of our 1st Generation LRL module to a level that would be ready to scale in the market. We believe our technology and designs for automotive lidar can be successful in the market, and our solutions will have features and performance that exceed those of competitors and will provide a sustainable strategic advantage in the market. |
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. Since 2010, there has been substantial doubt about our ability to continue as a going concern. On October 8, 2020, we filed a Certificate of Amendment (the "Certificate of Amendment") to our Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the authorized number of shares of our capital stock to 235,000,000 shares, consisting of (i) 210,000,000 shares of common stock, $.001 par value and (ii) 25,000,000 shares of preferred stock, $.001 par value. The Certificate of Amendment was effective upon the filing thereof with the Secretary of State of the State of Delaware. In late 2020 and early 2021, the share price of our common stock on The Nasdaq Global Market has increased dramatically. With the availability of authorized shares of common stock, we have been able to raise net proceeds of $12.7 million through the issuance 2.1 million shares of our common stock and $48.7 million through the issuance of 2.5 million shares of our common stock, in January 2021 and February 2021, respectively, under the terms of At-the-Market (ATM) offering agreements with Craig-Hallum Capital Group (Craig-Hallum). As a result of our recent financing activities, there is no longer substantial doubt about our ability to continue as a going concern. At December 31, 2020, we had $16.9 million in cash and cash equivalents. Based on our current operating plan and including $61.4 million received in 2021 under ATM equity offering agreements with Craig-Hallum, we anticipate that we have sufficient cash and cash equivalents to fund our operations for at least the next 12 months. While we continue to pursue strategic alternatives, we may require additional capital to fund our operating plan past that time. We may seek additional capital through the issuance of equity or debt securities, 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 further reductions in our research and development projects, staff, operating costs, and capital expenditures. |
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. Our cash equivalents are comprised of short-term highly rated money market savings accounts. |
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. |
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. Our property and equipment may include assets related to future product lines. 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, 2020 and 2019, 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. |
Leases | We determine if an arrangement is a lease at inception. On our balance sheet, our office lease is included in Operating lease right-of-use (ROU) asset, Current portion of operating lease liability and Operating lease liability, net of current portion. On our balance sheet, finance leases are included in Property and equipment, Current portion of finance lease obligations and Finance lease obligations, net of current portion. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For leases that do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Significant judgment may be required when determining whether a contract contains a lease, the length of the lease term, the allocation of the consideration in a contract between lease and non-lease components, and the determination of the discount rate included in our office lease. We review the underlying objective of each contract, the terms of the contract, and consider our current and future business conditions when making these judgments. |
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 module. 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, 2020, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2020, one customer accounted for $3.0 million in revenue, representing 97% of our total revenue. In 2019, one customer accounted for $7.7 million in revenue, representing 86% of our total revenue and a second customer accounted for $1.2 million in revenue, representing 13% 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 December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2019-12 (ASU 2019-12) Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendments also improve consistent application of and simplify generally accepted accounting principles for other areas of Topic 740 by clarifying and amending existing guidance. The new guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. We do not expect that the adoption of this standard will have a material impact on our financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Net Loss Per Share) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Contract with Customer, Asset, Net, Current, Percent Change | |
Net Loss Per Share (Tables) | The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Year Ended December 31, 2020 2019 Numerator: Net loss available for common shareholders $ (13,634) $ (26,483) Denominator: Weighted-average common shares outstanding 139,829 111,297 Net loss per share - basic and diluted $ (0.10) $ (0.24) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 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, 2020 2019 Options outstanding 3,281 5,104 Nonvested restricted stock units 1,982 1,215 5,263 6,319 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Share-Based Compensation) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Canceled/expired | |
Stock-based employee compensation expense (Tables) | 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, 2020 2019 Cost of product revenue $ - $ 26 Research and development expense 699 379 Sales, marketing, general and administrative expense 598 1,209 $ 1,297 $ 1,614 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 1,347 $ 1,718 $ 4 $ 3,069 Product and services transferred over time - - 21 21 Total $ 1,347 $ 1,718 $ 25 $ 3,090 Year Ended December 31, 2019 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 5,345 $ 99 $ 178 $ 5,622 Product and services transferred over time - - 3,264 3,264 Total $ 5,345 $ 99 $ 3,442 $ 8,886 |
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, 2020 2019 Accounts receivable, net $ - $ 1,079 Accrued liabilities - 432 Deferred revenue - 21 Contract liabilities 7,765 9,755 |
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, 2020 2019 $ Change % Change Contract assets $ - $ - $ - - Contract liabilities (7,765) (10,208) 2,443 23.9 Net contract assets (liabilities) $ (7,765) $ (10,208) $ 2,443 23.9 |
Transaction price allocated to the remaining performance obligations, expected timing | The following table provides information about the estimated timing of revenue recognition (in thousands): 2021 2022 License and royalty revenue $ 3,222 $ - |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term Contracts Costs Incurred On Contracts Details | |
Inventory (Tables) | Inventory consists of the following (in thousands): December 31, 2020 2019 Raw materials $ - $ - Finished goods - 192 $ - $ 192 |
Accrued liabilities (Tables)
Accrued liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities Tables | |
Accrued liabilities (Tables) | Accrued liabilities consists of the following (in thousands): December 31, 2020 2019 Bonuses $ - $ 201 Payroll and payroll taxes 361 425 Compensated absences - 448 Warranty 49 38 Prepayments from customers - 432 Other 85 501 $ 495 $ 2,045 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property And Equipment Net Tables | |
Components of Property, Plant and Equipment | Property and equipment consists of the following (in thousands): December 31, 2020 2019 Production equipment $ 7,210 $ 6,969 Leasehold improvements 913 913 Computer hardware and software/lab equipment 6,226 6,165 Office furniture and equipment 1,345 1,345 15,694 15,392 Less: Accumulated depreciation (13,811) (13,543) $ 1,883 $ 1,849 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (in thousands): Years Ended December 31, Amount 2021 $ 49 2022 40 2023 32 2024 22 2025 14 Thereafter 7 $ 164 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Canceled/expired | |
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, 2020 2019 Assumptions (weighted-average) Volatility 111% 78% Expected term (in years) 4.0 4.0 Risk-free rate 0.3% 1.9% Expected dividends 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% Grant date fair value of options granted $ 1.20 $ 0.37 |
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, 2018 4,646 $ 2.27 7.0 $ - Granted 1,636 0.65 - - Exercised - - - - Forfeited or expired (1,178) 2.66 - - Outstanding as of December 31, 2019 5,104 1.66 7.4 122 Granted 68 1.60 - - Exercised (693) 1.44 - - Forfeited or expired (1,198) 2.20 - - Outstanding as of December 31, 2020 3,281 $ 1.51 6.6 $ 12,784 Vested and expected to vest as of December 31, 2020 3,193 $ 1.53 6.5 $ 12,379 Exercisable as of December 31, 2020 2,086 $ 1.86 5.6 $ 7,413 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: Year Ended December 31, (in thousands) 2020 2019 Operating lease expense $ 464 $ 464 Finance lease expense: Amortization of leased assets 26 15 Interest on lease liabilities 3 6 Total finance lease expense 29 21 Total lease expense $ 493 $ 485 |
Cash flow supplemental disclosures for leases | Supplemental cash flow information related to leases was as follows: Year Ended December 31, (in thousands) 2020 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 656 $ 642 Operating cash flows from finance leases 3 6 Financing cash flows from finance leases 29 20 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ - $ 1,638 |
Supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases was as follows: December 31, (in thousands) 2020 2019 Operating leases Operating lease right-of-use assets $ 946 $ 1,308 Current portion of operating lease liability 676 656 Operating lease liability, net of current portion 774 1,348 Total operating lease liabilities $ 1,450 $ 2,004 Finance leases Property and equipment, at cost $ 112 $ 66 Accumulated depreciation (28) (25) Property and equipment, net $ 84 $ 41 Current portion of finance lease obligations $ 31 $ 25 Finance lease obligations, net of current portion 44 9 Total finance lease liabilities $ 75 $ 34 Weighted Average Remaining Lease Term Operating leases 2.3 years 3.3 years Finance leases 2.0 years 1.4 years Weighted Average Discount Rate Operating leases 6.0% 6.0% Finance leases 6.3% 13.8% |
Schedule of future minimum operating lease payments | As of December 31, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2021 $ 676 $ 35 2022 696 25 2023 175 21 2024 - - Thereafter - - Total minimum lease payments 1,547 81 Less: amount representing interest (97) (6) Present value of lease liabilities $ 1,450 $ 75 |
Lease guarantee future commitments finance leases | As of December 31, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2021 $ 676 $ 35 2022 696 25 2023 175 21 2024 - - Thereafter - - Total minimum lease payments 1,547 81 Less: amount representing interest (97) (6) Present value of lease liabilities $ 1,450 $ 75 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The effective tax rate of our provision (benefit) for income taxes differs from the Federal statutory rate as follows: Year Ended December 31, 2020 2019 Statutory rate 21.0% 21.0% Net operating loss expiration (47.5)% (14.7)% Tax credits 2.2% 2.8% Change in valuation allowance 24.3% (9.1)% Total 0.0% 0.0% |
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, 2020 2019 Deferred tax assets Reserves $ 647 $ 610 Net operating loss carryforwards 83,289 85,282 R&D credit carryforwards 8,836 9,047 Depreciation/amortization deferred 15,862 16,978 Other 5,773 5,808 Net deferred taxes before valuation allowance 114,407 117,725 Less: Valuation allowance (114,407) (117,725) Deferred tax assets $ - $ - |
Quarterly financial informati_2
Quarterly financial information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 2020 December 31, September 30, June 30, March 31, Revenue $ 395 $ 639 $ 587 $ 1,469 Gross profit 395 639 588 70 Net loss (3,570) (2,826) (2,304) (4,934) Net loss per share, basic and diluted (0.02) (0.02) (0.02) (0.04) Fiscal Year 2019 December 31, September 30, June 30, March 31, Revenue $ 4,605 $ 1,190 $ 1,240 $ 1,851 Gross profit 1,179 (882) (583) 608 Net loss (3,284) (6,141) (8,990) (8,068) Net loss per share, basic and diluted (0.03) (0.05) (0.08) (0.08) |
Valuation Reserves Schedule (Ta
Valuation Reserves Schedule (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Valuation Reserves Schedule Tables | |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets | MicroVision, Inc. 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 2019 Tax valuation allowance $ 115,313 $ 2,412 $ - $ - $ 117,725 2020 Tax valuation allowance $ 117,725 $ - $ - $ (3,318) $ 114,407 |
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, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total revenue | $ 395 | $ 639 | $ 587 | $ 1,469 | $ 4,605 | $ 1,190 | $ 1,240 | $ 1,851 | $ 3,090 | $ 8,886 |
Customer Revenue Concentration | ||||||||||
Total revenue | $ 3,000 | $ 7,700 | ||||||||
Concentration Risk, Percentage | 97.00% | 86.00% | ||||||||
Second Commercial Customer | ||||||||||
Total revenue | $ 1,200 | |||||||||
Concentration Risk, Percentage | 13.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Net Loss Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||||||||||
Net loss available for common shareholders | $ (3,570) | $ (2,826) | $ (2,304) | $ (4,934) | $ (3,284) | $ (6,141) | $ (8,990) | $ (8,068) | $ (13,634) | $ (26,483) |
Dilutive incremental share effect from: | ||||||||||
Weighted-average common shares outstanding | 139,829,000 | 111,297,000 | ||||||||
Net loss per share - basic and diluted | $ (0.02) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ (0.05) | $ (0.08) | $ (0.08) | $ (0.10) | $ (0.24) |
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, 2020 | Dec. 31, 2019 | |
Anti-dilutive shares | 5,263,000 | 6,319,000 |
Options Exercisable | ||
Anti-dilutive shares | 3,281,000 | 5,104,000 |
Nonvested Restricted Stock Units | ||
Anti-dilutive shares | 1,982,000 | 1,215,000 |
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, 2020 | Dec. 31, 2019 | |
Share-based employee compensation expense | $ 1,297 | $ 1,614 |
Cost of product revenue | ||
Share-based employee compensation expense | 0 | 26 |
Research and development expense | ||
Share-based employee compensation expense | 699 | 379 |
Sales, marketing, general and administrative expense | ||
Share-based employee compensation expense | $ 598 | $ 1,209 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Recent Accounting Pronouncements - Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset | $ 946 | $ 1,308 |
Lease liability | $ 1,450 | $ 2,004 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregated revenue | $ 3,090 | $ 8,886 |
Product revenue | ||
Disaggregated revenue | 1,347 | 5,345 |
License and royalty revenue | ||
Disaggregated revenue | 1,718 | 99 |
Contract Revenue | ||
Disaggregated revenue | 25 | 3,442 |
Transferred at Point in Time | ||
Disaggregated revenue | 3,069 | 5,622 |
Transferred at Point in Time | Product revenue | ||
Disaggregated revenue | 1,347 | 5,345 |
Transferred at Point in Time | License and royalty revenue | ||
Disaggregated revenue | 1,718 | 99 |
Transferred at Point in Time | Contract Revenue | ||
Disaggregated revenue | 4 | 178 |
Transferred over Time | ||
Disaggregated revenue | 21 | 3,264 |
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 | $ 21 | $ 3,264 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances with Contract Customers (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, net | $ 0 | $ 1,079 |
Accrued liabilities | 0 | 432 |
Deferred revenue | 0 | 21 |
Contract liabilities | 7,765 | 9,755 |
Other current liabilities | 0 | 83 |
Other current assets | 698 | 729 |
Contracts with Customers | ||
Accounts receivable, net | 0 | 1,079 |
Accrued liabilities | 0 | 432 |
Deferred revenue | 0 | 21 |
Contract liabilities | $ 7,765 | $ 9,755 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contractors [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Change in Contract Asset | $ 0 | |
Percent Change in Contract Asset | 0.00% | |
Contract liabilities | $ (7,765) | (10,208) |
Change in Contract Liability | $ 2,443 | |
Percent Change in Contract Liability | 2390.00% | |
Net contract assets (liabilities) | $ (7,765) | $ (10,208) |
Change in Net Contract Assets (Liabilities) | $ 2,443 | |
Percent Change in Net Contract Assets (Liabilities) | 2390.00% |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) - License and royalty revenue $ in Thousands | Dec. 31, 2020USD ($) |
2021 | |
Revenue, Remaining Performance Obligation | $ 3,222 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
2022 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Long-Term Contracts (Narrative)
Long-Term Contracts (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
LBS Display System | |
Deferred Revenue, Description | In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million in 2017 and, as of December 31, 2019, had also received $15.0 million, net of early payment discounts, representing all payment due for development work. The original contract was for $14.0 million in fees for development work, but we and our customer agreed to add $1.1 million in additional work to total $15.1 million. After applying early payment discounts, we recognized revenue of $15.0 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, 2019, we recognized $2.9 million of contract revenue from development fees on this agreement. Beginning in the fourth quarter of 2019, the $10.0 million upfront payment was being recognized as revenue at the point in time that component sales were sold to the major technology customer. In March 2020, we entered into an agreement for our customer to take over production of the components we had been producing for them. The agreement provides that, beginning in March 2020, we will earn a royalty on each component shipped that is approximately equal to the gross profit we would have earned if we continued to produce and ship the components. Under the new arrangement, the royalties earned will be applied against the remaining $7.8 million prepayment that we had previously received from the customer until the prepayment is exhausted. |
Inventory Components (Details)
Inventory Components (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Components Details Abstract | ||
Raw materials | $ 0 | $ 0 |
Finished goods | 0 | 192 |
Inventory, net | $ 0 | $ 192 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Narrative | ||
Inventory write-downs | $ 168 | $ 2,200 |
Accrued liabilities components
Accrued liabilities components (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities Components Details | ||
Bonuses | $ 0 | $ 201 |
Payroll and payroll taxes | 361 | 425 |
Compensated absences | 0 | 448 |
Warranty | 49 | 38 |
Prepayments from customers | 0 | 432 |
Other | 85 | 501 |
Accrued liabilities | $ 495 | $ 2,045 |
Property and equipment (Details
Property and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property And Equipment Details | ||
Production equipment | $ 7,210 | $ 6,969 |
Leasehold improvements | 913 | 913 |
Computer hardware and software/lab equipment | 6,226 | 6,165 |
Office furniture and equipment | 1,345 | 1,345 |
Property and equipment, gross | 15,694 | 15,392 |
Less: Accumulated depreciation | (13,811) | (13,543) |
Property and equipment, net | $ 1,883 | $ 1,849 |
Property and equipment (Narrati
Property and equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property And Equipment Narrative Details | ||
Depreciation expense | $ 442 | $ 1.1 |
Intangible assets (Future Amort
Intangible assets (Future Amortization) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2021 | $ 49 |
2022 | 40 |
2023 | 32 |
2024 | 22 |
2025 | 14 |
Thereafter | 7 |
Total | $ 164 |
Intangible assets (Narrative) (
Intangible assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets Narrative Details | ||
Gross value of intangible assets | $ 951,000 | $ 951,000 |
Amortization expense | 57,000 | 105,000 |
Impairment of intangible assets | $ 0 | $ 160,000 |
Number of patents abandoned in prosecution | 0 | 1 |
Common Stock Issuance (Narrativ
Common Stock Issuance (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash received from stock sale, before issuance costs | $ 24,368,000 | $ 16,775,000 |
ATM December 2020 | ||
Number of shares of common stock issued | 1,000,000 | |
Terms and provisions | In December 2020, we entered into a $13.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we may, from time to time, at our discretion offer and sell shares of our common stock having an aggregate value of up to $13.0 million through Craig-Hallum. As of December 31, 2020, we had issued 1.0 million shares for net proceeds of $6.1 million that was received in January 2021. The $6.1 million is classified as subscriptions receivable on our December 31, 2020 balance sheet and is not included in the cash balance as of December 31, 2020. | |
ATM November 2020 | ||
Number of shares of common stock issued | 4,900,000 | |
Cash received from stock sale, before issuance costs | $ 9,600,000 | |
Terms and provisions | In November 2020, we entered into a $10.0 million ATM equity offering agreement with Craig-Hallum Capital Group. Under the agreement we were able to, from time to time, at our discretion offer and sell shares of our common stock having an aggregate value of up to $10.0 million through Craig-Hallum. As of December 31, 2020, we had completed sales under such sales agreement, having sold 4.9 million shares for net proceeds of $9.6 million. | |
Purchase Agreement December 2019 | ||
Number of shares of common stock issued | 375,000 | |
Cash received from stock sale, before issuance costs | $ 277,000 | |
Stock issuance costs | $ 90,000 | |
Terms and provisions | In December 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $16.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of 1.5 million shares of common stock for $1.0 million at a purchase price of $0.6531 per share. Subject to various limitations and conditions set forth in the agreement, we were able to sell up to an additional $15.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning December 2019. In consideration for entering into the agreement, we issued 375,000 shares of our common stock, having a value of $277,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $90,000 in issuance costs. As of December 31, 2020, we had completed sales under such sales agreement, having sold 22.2 million shares for net proceeds of $15.6 million. | |
Direct July 2019 | ||
Number of shares of common stock issued | 3,000,000 | |
Cash received from stock sale, before issuance costs | $ 2,000,000 | |
Stock issuance costs | $ 24,000 | |
Terms and provisions | In July 2019, we raised $2.0 million before issuance costs of approximately $24,000 through a registered direct offering of 3.0 million shares of our common stock to a private investor. | |
Direct April 2019 | ||
Number of shares of common stock issued | 2,300,000 | |
Cash received from stock sale, before issuance costs | $ 2,000,000 | |
Stock issuance costs | $ 34,000 | |
Terms and provisions | In April 2019, we raised $2.0 million before issuance costs of approximately $34,000 through a registered direct offering of 2.3 million shares of our common stock to a private investor. | |
Purchase Agreement April 2019 | ||
Number of shares of common stock issued | 15,700,000 | |
Cash received from stock sale, before issuance costs | $ 11,000,000 | |
Terms and provisions | In April 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $11.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of $1.0 million in shares of common stock at a purchase price of $0.98 per share. Subject to various limitations and conditions set forth in the agreement, we may sell up to an additional $10.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning April 2019. In consideration for entering into the agreement, we issued 250,000 shares of our common stock, having a value of $258,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $92,000 in issuance costs. As of December 31, 2019, we have issued 15.7 million shares and raised a total of $11.0 million under this agreement. No further shares are available for sales under this agreement. | |
Direct January 2019 | ||
Number of shares of common stock issued | 2,000,000 | |
Cash received from stock sale, before issuance costs | $ 1,200,000 | |
Stock issuance costs | $ 26,000 | |
Terms and provisions | In January 2019, we raised $1.2 million before issuance costs of approximately $26,000 through a registered direct offering of 2.0 million shares of our common stock to a private investor. |
Share-based compensation (Weigh
Share-based compensation (Weighted Average Assumptions) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assumptions (weighted average) | ||
Volatility | 111.00% | 78.00% |
Expected term (in years) | 4 years | 4 years |
Risk-free rate | 0.30% | 1.90% |
Expected dividends | $ 0 | $ 0 |
Pre-vest forfeiture rate | 8.50% | 8.50% |
Grant date fair value of options granted | $ 1.20 | $ 0.37 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Sharebased Compensation Schedule Of Stock Option Activity Legal Entity Details Abstract | |||
Options, Outstanding as of beginning of period | 5,104 | 4,646 | |
Options, Granted | 68 | 1,636 | |
Options, Exercised | (693) | 0 | |
Options, Forfeited, or expired | (1,198) | (1,178) | |
Options, Outstanding as of end of period | 3,281 | 5,104 | |
Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $ 1.66 | ||
Weighted-Average Exercise Prices, Granted | 1.60 | $ 0.65 | |
Weighted-Average Exercise Prices, Exercised | 1.44 | 0 | |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired | 2.20 | 2.66 | |
Weighted-Average Exercise Prices, Outstanding as of end of period | $ 1.51 | $ 1.66 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 6 years 216 days | 7 years 144 days | |
Options, Outstanding, Aggregate Intrinsic Value | $ 12,784 | $ 122 | $ 0 |
Options, Vested and expected to vest at end of period | 3,193 | ||
Weighted-Average Exercise Price, Vested and expected to vest | $ 1.53 | ||
Weighted-Average Remaining Contractual Term (in years), Vested and expected to vest | 6 years 180 days | ||
Options, Vested and expected to vest, Aggregate Intrinsic Value | $ 12,379 | ||
Options, Exercisable at end of period | 2,086 | ||
Weighted-Average Exercise Price, Exercisable | $ 1.86 | ||
Weighted-Average Remaining Contractual Term (in years), Exercisable | 5 years 216 days | ||
Options, Exercisable, Aggregate Intrinsic Value | $ 7,413 | ||
Grant date fair value of options vested | $ 604 | $ 801 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Options | |
Unrecognized compensation cost related to share-based compensation | $ 376,000 |
Weighted-average service period, years | 1 year 72 days |
RSU | |
Unrecognized compensation cost related to share-based compensation | $ 751,000 |
Weighted-average service period, years | 180 days |
PSU | |
Unrecognized compensation cost related to share-based compensation | $ 5,000 |
Weighted-average service period, years | 1 year |
Components of Lease Expense (De
Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 464 | $ 464 |
Finance lease expense: | ||
Amortization of leased assets | 26 | 15 |
Interest on lease liabilities | 3 | 6 |
Total finance lease cost | 29 | 21 |
Total lease expense | $ 493 | $ 485 |
Lease Supplemental Cash Flow In
Lease Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 656 | $ 642 |
Operating cash flows from finance leases | 3 | 6 |
Financing cash flows from finance leases | 29 | 20 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 0 | $ 1,638 |
Lease Supplemental Balance Shee
Lease Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 946 | $ 1,308 |
Current portion of operating lease liability | 676 | 656 |
Operating lease liability, net of current portion | 774 | 1,348 |
Total operating lease liabilities | $ 1,450 | $ 2,004 |
Weighted average remaining lease term - operating leases (in years) | 2 years 108 days | 3 years 108 days |
Average discount rate - operating leases | 6.00% | 6.00% |
Finance Leases | ||
Property and equipment, at cost | $ 112 | $ 66 |
Accumulated depreciation | (28) | (25) |
Property and equipment, net | 84 | 41 |
Current portion of finance lease obligations | 31 | 25 |
Finance lease obligations, net of current portion | 44 | 9 |
Total finance lease liabilities | $ 75 | $ 34 |
Finance lease, weighted-average remaining lease term (in years) | 2 years | 1 year 144 days |
Finance lease, weighted-average discount rate | 6.30% | 13.80% |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Years Ended December 31, | ||
Operating leases, 2021 | $ 676 | |
Operating leases, 2022 | 696 | |
Operating leases 2023 | 175 | |
Operating leases, 2024 | 0 | |
Operating leases, thereafter | 0 | |
Operating leases, total mimimum lease payments | 1,547 | |
Operating leases, less amount representing interest | (97) | |
Operating leases present value | 1,450 | $ 2,004 |
Finance leases, 2021 | 35 | |
Finance leases, 2022 | 25 | |
Finance leases, 2023 | 21 | |
Finance leases, 2024 | 0 | |
Finance leases, thereafter | 0 | |
Finance leases, total minimum lease payments | 81 | |
Finance leases, less amount representing interest | (6) | |
Finance leases present value | $ 75 | $ 34 |
Income Taxes (Schedule Of Diffe
Income Taxes (Schedule Of Differences Between Statutory Tax And Effective Tax) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes Schedule Of Differences Between Statutory Tax And Effective Tax | ||
Statutory rate | 21.00% | 21.00% |
Net operating loss expiration | (45.70%) | (14.70%) |
Tax credits | 2.20% | 2.80% |
Change in valuation allowance | (24.30%) | (9.10%) |
Total | 0.00% | 0.00% |
Income taxes (Deferred Tax Asse
Income taxes (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Reserves | $ 647 | $ 610 |
Net operating loss carryforwards | 83,289 | 85,282 |
R&D credit carryforwards | 8,836 | 9,047 |
Depreciation/amortization deferred | 15,862 | 16,978 |
Other | 5,773 | 5,808 |
Net deferred taxes before valuation allowance | 114,407 | 117,725 |
Less: Valuation allowance | (114,407) | (117,725) |
Deferred tax assets | $ 0 | $ 0 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for income taxes | $ 0 | $ 0 |
Operating Loss Carryforwards | $ 396.6 | |
Operating loss carryforwards, expiration date | Dec. 31, 2021 | |
Annual limit on operating loss carryforwards | In certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our shareholders during any three year period would result in limitations on our ability to use a portion of our net operating loss carryforwards. | |
Accrued penalties and interest | $ 0 | |
Unrecognized tax benefits | $ 0 | $ 0 |
Tax years open for examination | 1998 | |
Tax Credit Carryforward, Description | At December 31, 2020, we have net operating loss carryforwards of approximately $396.6 million for federal income tax reporting purposes. In addition, we have research and development tax credits of $8.8 million. During 2020, $28.4 million federal net operating losses and $512,000 general business credits 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 2021 to 2040, if not previously used. | |
Capital Loss Carryforward | ||
Tax Credit Carryforwards Expired during year | $ 28.4 | |
R&D Tax Credit | ||
Tax Credit Carryforward, Amount | $ 8.8 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2021 | |
Tax Credit Carryforwards Expired during year | $ 0.5 |
Retirement savings plan (Narrat
Retirement savings plan (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Savings Plan Narrative Details | ||
Contribution to 401 (k) plan | $ 213,000 | $ 393,000 |
Quarterly financial informati_3
Quarterly financial information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Details | ||||||||||
Revenue | $ 395 | $ 639 | $ 587 | $ 1,469 | $ 4,605 | $ 1,190 | $ 1,240 | $ 1,851 | $ 3,090 | $ 8,886 |
Gross profit | 395 | 639 | 588 | 70 | 1,179 | (882) | (583) | 608 | 1,692 | 322 |
Net loss | $ (3,570) | $ (2,826) | $ (2,304) | $ (4,934) | $ (3,284) | $ (6,141) | $ (8,990) | $ (8,068) | $ (13,634) | $ (26,483) |
Net loss per share, basic and diluted | $ (0.02) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ (0.05) | $ (0.08) | $ (0.08) | $ (0.10) | $ (0.24) |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - Tax valuation allowance - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at beginning of fiscal period | $ 117,725 | $ 115,313 |
Charges to costs and expenses | 0 | |
Charges to other accounts | 0 | 0 |
Deductions | (3,318) | 0 |
Balance at end of fiscal period | $ 114,407 | $ 117,725 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) | 1 Months Ended | |
Feb. 28, 2021 | Jan. 31, 2021 | |
Subsequent Event Narrative Details | ||
Subsequent Event, Date | Feb. 1, 2021 | Jan. 1, 2021 |
Subsequent Event, Description | In February 2021, we entered into a $50.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we were able, at our discretion, to offer and sell shares of our common stock having an aggregate value of up to $50.0 million through Craig-Hallum. We have issued 2.5 million shares of our common stock for net proceeds of $48.7 million under this ATM agreement. No further shares are available for sales under this agreement. | In January 2021, we issued 1.1 million shares of our common stock for net proceeds of $6.6 million under the December 2020 ATM equity offering agreement with Craig-Hallum. In January 2021, we also received $6.1 million for the 1.0 million shares of common stock that were issued in December 2020. In total, we have issued 2.1 million shares of our common stock for net proceeds of $12.7 million under this ATM agreement. No further shares are available for sales under this agreement. |