Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 09, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-34170 | ||
Entity Registrant Name | MicroVision, Inc. | ||
Entity Central Index Key | 0000065770 | ||
Entity Tax Identification Number | 91-1600822 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 6244 185th Avenue NE | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Redmond | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98052 | ||
City Area Code | 425 | ||
Local Phone Number | 936-6847 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | MVIS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3 | ||
Entity Common Stock, Shares Outstanding | 164,630,093 | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant's definitive Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant's 2022 Annual Meeting of Shareholders (the "2022 Proxy Statement") are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | Seattle, Washington | ||
Auditor Firm ID | 659 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 82,647 | $ 16,862 |
Investment securities, available-for-sale | 32,720 | |
Inventory | 1,780 | |
Other current assets | 2,283 | 698 |
Total current assets | 119,430 | 17,560 |
Property and equipment, net | 3,026 | 1,883 |
Operating lease right-of-use asset | 5,577 | 946 |
Restricted cash | 1,092 | 435 |
Intangible assets, net | 115 | 164 |
Other assets | 985 | 18 |
Total assets | 130,225 | 21,006 |
Current liabilities | ||
Accounts payable | 3,584 | 630 |
Accrued liabilities | 1,170 | 495 |
Contract liabilities | 5,265 | 7,765 |
Other current liabilities | 1,181 | |
Current portion of long-term debt | 392 | 431 |
Current portion of operating lease liability | 849 | 676 |
Current portion of finance lease obligations | 21 | 31 |
Total current liabilities | 12,462 | 10,028 |
Long-term debt, net of current portion | 1,151 | |
Operating lease liability, net of current portion | 4,983 | 774 |
Finance lease obligations, net of current portion | 26 | 44 |
Total liabilities | 17,471 | 11,997 |
Shareholders' equity | ||
Preferred stock, par value $0.001; 25,000 shares authorized; no and no shares issued and outstanding | ||
Common stock, par value $0.001; 210,000 shares authorized; 164,363 and 152,926 shares issued and outstanding at December 31, 2021 and 2020, respectively | 164 | 153 |
Additional paid-in capital | 742,042 | 601,224 |
Subscriptions receivable | (6,135) | |
Accumulated other comprehensive loss | (19) | |
Accumulated deficit | (629,433) | (586,233) |
Total shareholders' equity | 112,754 | 9,009 |
Total liabilities and shareholders' equity | $ 130,225 | $ 21,006 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000 | 25,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 210,000 | 210,000 |
Common stock, shares issued | 164,363 | 152,926 |
Common stock, shares outstanding | 164,363 | 152,926 |
Statements of Operations (Paren
Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product [Member] | |||
Revenue from contract with customer | $ 1,347 | $ 5,345 | |
Cost of goods and services | 2 | 1,394 | 6,692 |
License [Member] | |||
Revenue from contract with customer | 2,500 | 1,718 | 99 |
Technology Service [Member] | |||
Revenue from contract with customer | 25 | 3,442 | |
Cost of goods and services | $ 4 | $ 1,872 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Total revenue | $ 2,500 | $ 3,090 | $ 8,886 |
Total cost of revenue | 2 | 1,398 | 8,564 |
Gross profit | 2,498 | 1,692 | 322 |
Research and development expense | 24,111 | 9,840 | 18,661 |
Sales, marketing, general and administrative expense | 22,256 | 5,917 | 8,133 |
Gain on disposal of fixed assets | (450) | ||
Total operating expenses | 46,367 | 15,307 | 26,794 |
Loss from operations | (43,869) | (13,615) | (26,472) |
Gain on debt extinguishment | 692 | ||
Other expenses, net | (23) | (19) | (11) |
Net loss | $ (43,200) | $ (13,634) | $ (26,483) |
Net loss per share - basic and diluted | $ (0.27) | $ (0.10) | $ (0.24) |
Weighted-average shares outstanding - basic and diluted | 160,662 | 139,829 | 111,297 |
Statement of Comprehensive Loss
Statement of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net loss | $ (43,200) | $ (13,634) | $ (26,483) |
Other comprehensive loss | |||
Unrealized loss on investment securities, available-for-sale | (19) | ||
Comprehensive loss | $ (43,219) | $ (13,634) | $ (26,483) |
Statements of Shareholders' Equ
Statements of Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Receivables from Stockholder [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2018 | $ 100 | $ 550,133 | $ (546,116) | $ 4,117 | ||
Common Stock, Shares, Outstanding, Beginning Balance at Dec. 31, 2018 | 100,105 | |||||
Share-based compensation expense | $ 1 | 1,613 | 1,614 | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 822 | |||||
Sales of common stock, net of issuance costs | $ 25 | 16,750 | 16,775 | |||
Net loss | (26,483) | (26,483) | ||||
Ending balance, value at Dec. 31, 2019 | 126 | 568,496 | (572,599) | (3,977) | ||
Share-based compensation expense | 1,252 | 1,252 | ||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 201 | |||||
Sales of common stock, net of issuance costs | $ 26 | 30,477 | (6,135) | 24,368 | ||
Stock Issued During Period, Shares, New Issues | 26,229 | |||||
Net loss | (13,634) | (13,634) | ||||
Exercise of options | $ 1 | 999 | $ 1,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 693 | |||||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2020 | 152,926 | 152,926 | ||||
Ending balance, value at Dec. 31, 2020 | $ 153 | 601,224 | (6,135) | (586,233) | $ 9,009 | |
Share-based compensation expense | $ 2 | 15,282 | 15,284 | |||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 2,365 | |||||
Sales of common stock, net of issuance costs | $ 7 | 122,884 | 6,135 | 129,026 | ||
Stock Issued During Period, Shares, New Issues | 7,554 | |||||
Net loss | (43,200) | (43,200) | ||||
Exercise of options | $ 2 | 2,652 | 2,654 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,518 | |||||
Other comprehensive loss | (19) | $ (19) | ||||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2021 | 164,363 | 164,363 | ||||
Ending balance, value at Dec. 31, 2021 | $ 164 | 742,042 | (19) | (629,433) | $ 112,754 | |
Common Stock, Shares, Outstanding, Beginning Balance at Sep. 30, 2021 | 125,803 | |||||
Net loss | $ (12,625) | |||||
Common Stock, Shares, Outstanding, Ending Balance at Dec. 31, 2021 | 164,363 | 164,363 | ||||
Ending balance, value at Dec. 31, 2021 | $ 164 | $ 742,042 | $ (19) | $ (629,433) | $ 112,754 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Net loss | $ (43,200,000) | $ (13,634,000) | $ (26,483,000) |
Adjustments to reconcile net loss to net cash used in operations: | |||
Depreciation and amortization | 1,464,000 | 963,000 | 1,649,000 |
Impairment of intangible assets | 160,000 | ||
Impairment of property and equipment | 882,000 | 434,000 | |
Gain on disposal of property and equipment | (450,000) | ||
Share-based compensation expense | 15,284,000 | 1,297,000 | 1,614,000 |
Non-cash interest income (expense) | (10,000) | 11,000 | |
Inventory write-downs | 48,000 | 168,000 | 2,203,000 |
Net accretion of premium on short-term investments | 86,000 | ||
Gain on debt extinguishment | (692,000) | ||
Change in: | |||
Accounts receivable | 1,079,000 | (603,000) | |
Costs and estimated earnings in excess of billings on uncompleted contracts | 987,000 | ||
Inventory | (1,828,000) | 24,000 | (1,286,000) |
Other current and non-current assets | (2,552,000) | 154,000 | 1,866,000 |
Accounts payable | 2,520,000 | (1,387,000) | (268,000) |
Accrued liabilities | 675,000 | (1,550,000) | (3,379,000) |
Deferred revenue | (21,000) | 21,000 | |
Contract liabilities and other current liabilities | (1,319,000) | (2,073,000) | (316,000) |
Operating lease liabilities | (762,000) | (656,000) | (642,000) |
Net cash used in operating activities | (29,404,000) | (16,075,000) | (24,043,000) |
Cash flows from investing activities | |||
Purchases of investment securities | (32,825,000) | ||
Proceeds on sale of property and equipment | 525,000 | ||
Purchases of property and equipment | (2,493,000) | (402,000) | (745,000) |
Net cash provided by (used in) investing activities | (35,318,000) | 123,000 | (745,000) |
Cash flows from financing activities | |||
Principal payments under finance leases | (28,000) | (29,000) | (20,000) |
Proceeds from long-term debt | 1,571,000 | ||
Principal payments under long-term debt | (488,000) | ||
Payments received on subscriptions receivable | 6,135,000 | ||
Proceeds from stock option exercises | 2,654,000 | 1,000,000 | |
Net proceeds from issuance of common stock | 122,891,000 | 24,435,000 | 16,879,000 |
Net cash provided by financing activities | 131,164,000 | 26,977,000 | 16,859,000 |
Change in cash, cash equivalents, and restricted cash | 66,442,000 | 11,025,000 | (7,929,000) |
Cash, cash equivalents, and restricted cash at beginning of period | 17,297,000 | 6,272,000 | 14,201,000 |
Cash, cash equivalents, and restricted cash at end of period | 83,739,000 | 17,297,000 | 6,272,000 |
Supplemental schedule of non-cash investing and financing activities | |||
Issuance of common stock for subscriptions receivable | 6,135,000 | ||
Property and equipment acquired under finance leases | 70,000 | ||
Lease liabilities from obtaining right-of-use operating asset | 5,097,000 | ||
Non-cash additions to property and equipment | 550,000 | 116,000 | 37,000 |
Issuance of common stock for commitment fee | $ 535,000 |
Reconciliation of Cash Suppleme
Reconciliation of Cash Supplement - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||||
Cash and cash equivalents | $ 82,647 | $ 16,862 | $ 5,837 | |
Restricted cash | 1,092 | 435 | 435 | |
Cash, cash equivalents and restricted cash | $ 83,739 | $ 17,297 | $ 6,272 | $ 14,201 |
1. THE COMPANY AND LIQUIDITY
1. THE COMPANY AND LIQUIDITY | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. THE COMPANY AND LIQUIDITY | 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 has been to sell AR displays or components, Interactive Displays, or Consumer Lidars to OEMs and ODMs for incorporation into their products. Currently, our sole customer is Microsoft Corporation. Our arrangement with this customer generates royalty income; however, the volume of sales and resulting royalties from that arrangement are not significant. In the recent past, we shifted our focus to increase 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. At December 31, 2021, we had $ 82.6 32.7 |
2. SUMMARY OF SIGNIFICANT ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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, investment securities, accounts receivable, accounts payable and accrued liabilities. The carrying value of our financial instruments approximates fair value due to their short maturities. Our short-term investment securities are primarily debt securities. The Company has classified its entire investment portfolio as available-for-sale. Available-for-sale securities are stated at fair value with unrealized gains and losses included in other comprehensive income (loss). Dividend and interest income are recognized when earned. Realized gains and losses are presented separately on the income statement. 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, 2021 and 2020, restricted cash was in money market savings accounts and serves as collateral for irrevocable letters of credit related to our facility lease agreements. The restricted cash balance includes $ 657,000 435,000 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, 2021, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2021 one customer, Microsoft Corporation, accounted for $ 2.5 100% 3.0 97 7.7 86 1.2 13 Typically, a significant concentration of our components and the products we have sold are manufactured and obtained from single or limited-source suppliers. The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in the supply chain of components from these suppliers could subject us to risks and uncertainties including, but not limited to, increased cost of sales, possible loss of revenues, or significant delays in product development or 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): Schedule of Earnings Per Share, Basic and Diluted Year Ended December 31, 2021 2020 2019 Numerator: Net loss available for common shareholders $ (43,200) $ (13,634) $ (26,483) Denominator: Weighted-average common shares outstanding 160,662 139,829 111,297 Net loss per share - basic and diluted $ (0.27) $ (0.10) $ (0.24) During each of the years ended December 31, 2021, 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): Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Year Ended December 31, 2021 2020 2019 Options outstanding 1,533 3,281 5,104 Nonvested restricted stock units 2,625 1,982 1,215 4,158 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 and non-executive PSUs is determined by the closing price of our common stock on the grant date. For performance-based awards, expense is recognized when it is probable the performance criteria will be achieved. If the likelihood becomes improbable that the performance criteria will be achieved, the expense is reversed. Executive PSUs that have market-based performance criteria 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): Expensed Share-based Payments Year Ended December 31, 2021 2020 2019 Cost of product revenue $ - $ - $ 26 Research and development expense 6,125 699 379 Sales, marketing, general and administrative expense 9,159 598 1,209 $ 15,284 $ 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. The adoption of this standard did not have a material impact on our financial statements. |
3. REVENUE RECOGNITION
3. REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
3. REVENUE RECOGNITION | 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): Disaggregation of Revenue Year Ended December 31, 2021 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition Products transferred at a point in time $ - $ 2,500 $ - $ 2,500 Product and services transferred over time - - - - Total $ - $ 2,500 $ - $ 2,500 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): Accounts Receivable, Accrued Liabilities, Deferred Revenue and Contract Liabilities with Customers December 31, 2021 2020 Accounts receivable, net $ - $ - Accrued liabilities - - Deferred revenue - - Contract liabilities 5,265 7,765 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. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): Significant Changes in Contract Assets and Contract Liabilities December 31, December 31, 2021 2020 $ Change % Change Contract assets $ $ $ - Contract liabilities (5,265) (7,765) 2,500 32.2 Net contract assets (liabilities) $ (5,265) $ (7,765) $ 2,500 32.2 In April 2017, we signed a contract with Microsoft Corporation to develop an LBS display system. Under the agreement, we received an upfront payment of $ 10.0 4.7 2.5 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 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 2.5 2.0 10.0 2.5 5.3 The following table provides information about the estimated timing of revenue recognition (in thousands): Estimated Timing of Revenue Recognition 2022 2023 License and royalty revenue $ 2,500 $ - 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. |
4. LONG-TERM CONTRACTS
4. LONG-TERM CONTRACTS | 12 Months Ended |
Dec. 31, 2021 | |
Contractors [Abstract] | |
4. LONG-TERM CONTRACTS | 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 15.0 15.0 2.9 Beginning in the fourth quarter of 2019, the $ 10.0 5.3 In May 2018, we signed a five-year license agreement with Sharp Corporation granting them exclusive license to our laser beam scanning (LBS) technology for display-only applications. The agreement includes an initial exclusivity period with requirements that must be met in order to maintain exclusivity. Because of the impact of COVID-19 on global commerce and new product introductions of consumer electronic devices, in February 2021 the agreement was amended to increase the term to six years and add twelve months to the initial exclusivity period. If this licensee acquires a customer, the agreement requires the licensee to buy specific components from us. The exclusivity period ended in the fourth quarter of 2021. |
5. INVESTMENT SECURITIES, AVAIL
5. INVESTMENT SECURITIES, AVAILABLE-FOR-SALE AND FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
5. INVESTMENT SECURITIES, AVAILABLE-FOR-SALE AND FAIR VALUE MEASUREMENTS | 5. INVESTMENT SECURITIES, AVAILABLE-FOR-SALE AND FAIR VALUE MEASUREMENTS Our investment securities, available-for-sale are comprised of corporate debt securities. The principal markets for the debt securities are dealer markets which have a high level of price transparency. The market participants for debt securities are typically large money center banks and regional banks, brokers, dealers, pension funds, and other entities with debt investment portfolios. 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. The hierarchy is summarized below. Level 1 - Quoted prices in active markets for identical assets and liabilities at the measurement date that the reporting entity has the ability to access. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs for which there is little or no market data, which requires us to develop our own assumptions, which are significant to the measurement of the fair values. The valuation inputs hierarchy classification for assets measured at fair value on a recurring basis are summarized below as of December 31, 2021 (in thousands). These tables do not include cash held in our money market savings accounts. Schedule of Fair Value Hierarchy Assets and Liabilities As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Corporate debt securities $ $ 32,720 $ $ 32,720 $ $ 32,720 $ $ 32,720 Our short-term investments are summarized below as of December 31, 2021 (in thousands). Schedule of Unrealized Gain or Loss on Short-term Investments Investment Cost/ Gross Gross Securities, Amortized Unrealized Unrealized Available- Cost Gains Losses For-Sale As of December 31, 2021 Assets Corporate debt securities $ 32,739 $ 3 $ (22) $ 32,720 $ 32,739 $ 3 $ (22) $ 32,720 The maturities of the investment securities available-for-sale as of December 31, 2021 are shown below (in thousands): +Maturity Date of Available-for-sale Securities Gross Gross Amortized Unrealized Unrealized Estimated Maturity date Cost Gains Losses Fair Value Less than one year $ 32,739 $ 3 $ (22) $ 32,720 $ 32,739 $ 32,720 The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2021 (in thousands): Schedule of Unrealized Loss on Investment Securities Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate debt securities $ 27,195 $ (22) $ $ $ 27,195 $ (22) $ 27,195 $ (22) $ $ $ 27,195 $ (22) |
6. LONG-TERM DEBT
6. LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
6. LONG-TERM DEBT | 6. LONG-TERM DEBT In April 2020, we received funds in the amount of approximately $ 1.6 0.98 690,000 488,000 |
7. INVENTORY
7. INVENTORY | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
7. INVENTORY | 7. INVENTORY Inventory consists of the following (in thousands): Components of Inventory December 31, 2021 2020 Raw materials $ 1,780 $ - $ 1,780 $ - We recorded inventory write-downs of $ 48,000 168,000 2.2 |
8. ACCRUED LIABILITIES
8. ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
8. ACCRUED LIABILITIES | 8. ACCRUED LIABILITIES Accrued liabilities consists of the following (in thousands): Table of Accrued Liabilities December 31, 2021 2020 Bonuses $ 43 $ - Payroll and payroll taxes 601 361 Accrued professional fees 89 6 Liabilities to suppliers 263 12 Warranty - 49 Other 174 67 Total $ 1,170 $ 495 |
9. PROPERTY AND EQUIPMENT
9. PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
9. PROPERTY AND EQUIPMENT | 9. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): Components of Property, Plant and Equipment December 31, 2021 2020 Production equipment $ 8,224 $ 7,210 Leasehold improvements 913 913 Computer hardware and software/lab equipment 7,230 6,226 Office furniture and equipment 1,372 1,345 Property, gross 17,739 15,694 Less: Accumulated depreciation (14,713) (13,811) Property, net $ 3,026 $ 1,883 Depreciation expense was $ 902,000 442,000 1.1 |
10. INTANGIBLE ASSETS
10. INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
10. INTANGIBLE ASSETS | 10. INTANGIBLE ASSETS Our intangible assets consist exclusively of technology-based purchased patents. The gross book value of our intangible assets was $ 951,000 49,000 57,000 105,000 160,000 The following table outlines our estimated future amortization expense related to intangible assets held at December 31, 2021 (in thousands): Estimated Future Amortization Expense Related to Intangible Assets Years Ended December 31, Amount 2022 $ 40 2023 32 2024 22 2025 14 2026 7 Thereafter - Total $ 115 |
11. COMMON STOCK
11. COMMON STOCK | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
11. COMMON STOCK | 11. COMMON STOCK In June 2021, we entered into a $140.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we are able, at our discretion, to offer and sell shares of our common stock having an aggregate value of up to $140.0 million through Craig-Hallum. As of December 31, 2021, we had issued 4.0 67.8 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 issued 2.5 48.8 In December 2020, we entered into a $13.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we were able, from time to time, at our discretion to 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 2.1 12.7 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 9.6 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 15.6 |
12. SHARE-BASED COMPENSATION
12. SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
12. SHARE-BASED COMPENSATION | 12. 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 5.3 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: Schedule of Valuation Assumptions for Stock Options Year Ended December 31, 2021 2020 2019 Assumptions (weighted-average) Volatility 120% 111% 78% Expected term (in years) 4.0 4.0 4.0 Risk-free rate 0.9% 0.3% 1.9% Expected dividends 0.0% 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% 8.5% Grant date fair value of options granted $ 11.72 $ 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): Schedule of Valuation Assumptions for Stock Options Weighted- Weighted-average average remaining Aggregate exercise contractual intrinsic Options Shares 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 Granted 8 14.04 - - Exercised (1,519) 1.75 - - Forfeited or expired (237) 1.23 - - Outstanding as of December 31, 2021 1,533 $ 1.37 5.6 $ 5,645 Vested and expected to vest as of December 31, 2021 1,518 $ 1.55 5.6 $ 5,584 Exercisable as of December 31, 2021 1,226 $ 1.55 5.1 $ 4,306 The total grant date fair value of options vested during the years ended December 31, 2021, 2020 and 2019 was $ 508,000 604,000 801,000 61,000 0.5 We issued 475,000 Restricted stock activity and positions The following table summarizes activity and positions with respect to RSUs and PSUs for the three years ended December 31, 2021: Restricted Stock Unit Activity Weighted-average Shares price Unvested as of December 31, 2018 1,149 $ 0.64 Granted 1,044 0.60 Vested (978) 0.89 Forfeited - - Unvested as of December 31, 2019 1,215 0.40 Granted 1,462 1.08 Vested (219) 0.88 Forfeited (475) 0.77 Unvested as of December 31, 2020 1,983 0.76 Granted 4,179 12.92 Vested (2,380) 3.11 Forfeited (1,157) 11.97 Unvested as of December 31, 2021 2,625 $ 13.05 In 2021, an equity award was granted to the Chief Executive Officer in the form of 1.2 In 2021, we issued 1.5 1.1 In 2021, we issued 1.1 In 2020, we issued 111,000 In June 2020, we issued 1.2 In the fourth quarter of 2019, we issued 384,751 On May 22, 2019, we issued 195,000 On May 19, 2020 and May 22, 2019, we issued 120,000 180,000 163,734 As of December 31, 2021, our unrecognized share-based compensation related to RSUs was $ 25.3 million 2.4 716,000 0.8 . |
13. LEASES
13. LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
13. LEASES | 13. 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 2.5 873,000 We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to ten years. 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. In September 2021, we entered into an office lease with Redmond East Office Park LLC, a Washington limited liability company, pursuant to which we will lease approximately 16,681 square feet of space located in Redmond, Washington that we will use primarily for general office space and product testing. The lease provides for an initial term of 128 months that commenced November 1, 2021. Pursuant to the lease, annual base rent will be approximately $500,000 for the first year and is subject to annual increases of 3.0%. In addition to base rent, we will pay additional rent comprised of our proportionate share of any operating expenses, real estate taxes, and management fees. We have the option to extend the term for one ten-year renewal period, provided that the rent would be subject to market adjustment at the beginning of the renewal term. In September 2021, we entered into a second office lease with Redmond East Office Park LLC, pursuant to which we will lease approximately 36,062 square feet of space located in Redmond, Washington that we will use primarily for general office and lab space. The lease provides for an initial term of 120 months with a target commencement date of July 1, 2022. Pursuant to the lease, annual base rent will be approximately $1.1 million for the first year and is subject to annual increases of 3.0%. In addition to base rent, we will pay additional rent comprised of our proportionate share of any operating expenses, real estate taxes, and management fees. We have the option to extend the term for one ten-year renewal period, provided that the rent would be subject to market adjustment at the beginning of the renewal term. The total minimum lease payments related to this forward-starting lease is $13.0 million. In connection with the effectiveness of the second lease with Redmond East Office Park, we amended our current office lease to provide for early termination intended to coincide with our move into the new 36,062 square feet of space but, in any event, no later than October 31, 2022. The components of lease expense were as follows: Components of Lease Expense Year Ended December 31, (in thousands) 2021 2020 2019 Operating lease expense $ 513 $ 464 $ 464 Finance lease expense: Amortization of leased assets 30 26 15 Interest on lease liabilities 3 3 6 Total finance lease expense 33 29 21 Total lease expense $ 546 $ 493 $ 485 Supplemental cash flow information related to leases was as follows: Cash Flow Information Related to Leases Year Ended December 31, (in thousands) 2021 2020 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 762 $ 656 $ 642 Operating cash flows from finance leases 3 3 6 Financing cash flows from finance leases 28 29 20 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 5,322 $ - $ 1,638 Supplemental balance sheet information related to leases was as follows: Cash Flow Information Related to Leases December 31, (in thousands) 2021 2020 Operating leases Operating lease right-of-use assets $ 5,577 $ 946 Current portion of operating lease liability 849 676 Operating lease liability, net of current portion 4,983 774 Total operating lease liabilities $ 5,832 $ 1,450 Finance leases Property and equipment, at cost $ 112 $ 112 Accumulated depreciation (56) (28) Property and equipment, net $ 56 $ 84 Current portion of finance lease obligations $ 21 $ 31 Finance lease obligations, net of current portion 26 44 Total finance lease liabilities $ 47 $ 75 Weighted Average Remaining Lease Term Operating leases 9.5 years 2.3 years Finance leases 1.2 years 2.0 years Weighted Average Discount Rate Operating leases 2.5% 6.0% Finance leases 6.3% 6.3% As of December 31, 2021, maturities of lease liabilities were as follows: Maturities of Lease Liabilities Operating Finance (in thousands) leases leases Years Ended December 31, 2022 $ 899 $ 28 2023 535 21 2024 551 - 2025 567 - Thereafter 4,069 - Total minimum lease payments 6,621 49 Less: amount representing interest (789) (2) Present value of lease liabilities $ 5,832 $ 47 |
14. COMMITMENTS AND CONTINGENCI
14. COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
14. COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Litigation 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. |
15. INCOME TAXES
15. INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
15. INCOME TAXES | 15. INCOME TAXES No The effective tax rate of our provision (benefit) for income taxes differs from the Federal statutory rate as follows: Schedule of Effective Income Tax Rate Reconciliation Year Ended December 31, 2021 2020 2019 Statutory rate 21.0% 21.0% 21.0% Non-deductible executive compensation (8.2)% 0.0% 0.0)% Share-based compensation 25.1% 0.0% 0.0)% Net operating loss expiration (16.2)% (47.5)% (14.7)% Tax credits 1.4% 2.2% 2.8% Change in valuation allowance (23.1)% 24.3% (9.1)% Total 0.0% 0.0% 0.0% Deferred tax assets are summarized as follows (in thousands): Schedule of Deferred Tax Assets December 31, 2021 2020 Deferred tax assets Reserves $ 634 $ 647 Net operating loss carryforwards 90,593 83,289 R&D credit carryforwards 8,984 8,836 Depreciation/amortization deferred 17,417 15,862 Operating lease liabilities 1,222 296 Other 6,701 5,676 Total deferred tax assets 125,551 114,606 Deferred tax liabilities Operating lease right-of-use assets (1,171) (199) Total deferred tax liabilites (1,171) (199) Net valuation allowance (124,380) (114,407) Deferred tax assets $ - $ - At December 31, 2021, we have net operating loss carryforwards of approximately $ 431.4 9.0 During 2021, $31.2 million federal net operating losses and $456,000 general business credits expired unused 2022 2041 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 had no We recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2021, 2020 and 2019 we recognized no 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 |
16. RETIREMENT SAVINGS PLAN
16. RETIREMENT SAVINGS PLAN | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
16. RETIREMENT SAVINGS PLAN | 16. 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, 2021, 2020 and 2019 we contributed $ 259,000 213,000 393,000 |
17. QUARTERLY FINANCIAL INFORMA
17. QUARTERLY FINANCIAL INFORMATION (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
17. QUARTERLY FINANCIAL INFORMATION (Unaudited) | 17. QUARTERLY FINANCIAL INFORMATION (Unaudited) The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Quarterly Financial Information Fiscal Year 2021 December 31, September 30, June 30, March 31, Revenue $ 557 $ 718 $ 746 $ 479 Gross profit 509 728 777 484 Net loss (12,625) (9,382) (14,962) (6,231) Net loss per share, basic and diluted (0.08) (0.06) (0.09) (0.04) 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 |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II | Schedule II MicroVision, Inc. Schedule of Valuation Allowance for Impairment 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 2021 Tax valuation allowance $ 114,407 $ 9,973 $ - $ - $ 124,380 |
2. SUMMARY OF SIGNIFICANT ACC_2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of estimates | 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 | 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, investment securities, accounts receivable, accounts payable and accrued liabilities. The carrying value of our financial instruments approximates fair value due to their short maturities. Our short-term investment securities are primarily debt securities. The Company has classified its entire investment portfolio as available-for-sale. Available-for-sale securities are stated at fair value with unrealized gains and losses included in other comprehensive income (loss). Dividend and interest income are recognized when earned. Realized gains and losses are presented separately on the income statement. |
Intangible assets | 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 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 | Restricted cash As of December 31, 2021 and 2020, restricted cash was in money market savings accounts and serves as collateral for irrevocable letters of credit related to our facility lease agreements. The restricted cash balance includes $ 657,000 435,000 |
Leases | 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 | 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 | 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 | 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 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 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, 2021, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers In 2021 one customer, Microsoft Corporation, accounted for $ 2.5 100% 3.0 97 7.7 86 1.2 13 Typically, a significant concentration of our components and the products we have sold are manufactured and obtained from single or limited-source suppliers. The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in the supply chain of components from these suppliers could subject us to risks and uncertainties including, but not limited to, increased cost of sales, possible loss of revenues, or significant delays in product development or product deliveries, any of which could adversely affect our financial condition and operating results. |
Income taxes | 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 | 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): Schedule of Earnings Per Share, Basic and Diluted Year Ended December 31, 2021 2020 2019 Numerator: Net loss available for common shareholders $ (43,200) $ (13,634) $ (26,483) Denominator: Weighted-average common shares outstanding 160,662 139,829 111,297 Net loss per share - basic and diluted $ (0.27) $ (0.10) $ (0.24) During each of the years ended December 31, 2021, 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): Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Year Ended December 31, 2021 2020 2019 Options outstanding 1,533 3,281 5,104 Nonvested restricted stock units 2,625 1,982 1,215 4,158 5,263 6,319 |
Research and development | 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 | 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 and non-executive PSUs is determined by the closing price of our common stock on the grant date. For performance-based awards, expense is recognized when it is probable the performance criteria will be achieved. If the likelihood becomes improbable that the performance criteria will be achieved, the expense is reversed. Executive PSUs that have market-based performance criteria 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): Expensed Share-based Payments Year Ended December 31, 2021 2020 2019 Cost of product revenue $ - $ - $ 26 Research and development expense 6,125 699 379 Sales, marketing, general and administrative expense 9,159 598 1,209 $ 15,284 $ 1,297 $ 1,614 |
Reclassifications | 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 | 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. The adoption of this standard did not have a material impact on our financial statements. |
2. SUMMARY OF SIGNIFICANT ACC_3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Schedule of Earnings Per Share, Basic and Diluted Year Ended December 31, 2021 2020 2019 Numerator: Net loss available for common shareholders $ (43,200) $ (13,634) $ (26,483) Denominator: Weighted-average common shares outstanding 160,662 139,829 111,297 Net loss per share - basic and diluted $ (0.27) $ (0.10) $ (0.24) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | During each of the years ended December 31, 2021, 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): Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Year Ended December 31, 2021 2020 2019 Options outstanding 1,533 3,281 5,104 Nonvested restricted stock units 2,625 1,982 1,215 4,158 5,263 6,319 |
Expensed Share-based Payments | The following table summarizes the amount of share-based compensation expense by line item on the Statement of Operations (in thousands): Expensed Share-based Payments Year Ended December 31, 2021 2020 2019 Cost of product revenue $ - $ - $ 26 Research and development expense 6,125 699 379 Sales, marketing, general and administrative expense 9,159 598 1,209 $ 15,284 $ 1,297 $ 1,614 |
3. REVENUE RECOGNITION (Tables)
3. REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Disaggregation of Revenue Year Ended December 31, 2021 License and Product royalty Contract revenue revenue revenue Total Timing of revenue recognition Products transferred at a point in time $ - $ 2,500 $ - $ 2,500 Product and services transferred over time - - - - Total $ - $ 2,500 $ - $ 2,500 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 |
Significant Changes in Contract Assets and Contract Liabilities | The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): Accounts Receivable, Accrued Liabilities, Deferred Revenue and Contract Liabilities with Customers December 31, 2021 2020 Accounts receivable, net $ - $ - Accrued liabilities - - Deferred revenue - - Contract liabilities 5,265 7,765 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. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): Significant Changes in Contract Assets and Contract Liabilities December 31, December 31, 2021 2020 $ Change % Change Contract assets $ $ $ - Contract liabilities (5,265) (7,765) 2,500 32.2 Net contract assets (liabilities) $ (5,265) $ (7,765) $ 2,500 32.2 |
Estimated Timing of Revenue Recognition | The following table provides information about the estimated timing of revenue recognition (in thousands): Estimated Timing of Revenue Recognition 2022 2023 License and royalty revenue $ 2,500 $ - |
5. INVESTMENT SECURITIES, AVA_2
5. INVESTMENT SECURITIES, AVAILABLE-FOR-SALE AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Schedule of Fair Value Hierarchy Assets and Liabilities | The valuation inputs hierarchy classification for assets measured at fair value on a recurring basis are summarized below as of December 31, 2021 (in thousands). These tables do not include cash held in our money market savings accounts. Schedule of Fair Value Hierarchy Assets and Liabilities As of December 31, 2021 Level 1 Level 2 Level 3 Total Assets Corporate debt securities $ $ 32,720 $ $ 32,720 $ $ 32,720 $ $ 32,720 |
Schedule of Unrealized Gain or Loss on Short-term Investments | Our short-term investments are summarized below as of December 31, 2021 (in thousands). Schedule of Unrealized Gain or Loss on Short-term Investments Investment Cost/ Gross Gross Securities, Amortized Unrealized Unrealized Available- Cost Gains Losses For-Sale As of December 31, 2021 Assets Corporate debt securities $ 32,739 $ 3 $ (22) $ 32,720 $ 32,739 $ 3 $ (22) $ 32,720 |
+Maturity Date of Available-for-sale Securities | The maturities of the investment securities available-for-sale as of December 31, 2021 are shown below (in thousands): +Maturity Date of Available-for-sale Securities Gross Gross Amortized Unrealized Unrealized Estimated Maturity date Cost Gains Losses Fair Value Less than one year $ 32,739 $ 3 $ (22) $ 32,720 $ 32,739 $ 32,720 |
Schedule of Unrealized Loss on Investment Securities | The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of December 31, 2021 (in thousands): Schedule of Unrealized Loss on Investment Securities Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Corporate debt securities $ 27,195 $ (22) $ $ $ 27,195 $ (22) $ 27,195 $ (22) $ $ $ 27,195 $ (22) |
7. INVENTORY (Tables)
7. INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventory consists of the following (in thousands): Components of Inventory December 31, 2021 2020 Raw materials $ 1,780 $ - $ 1,780 $ - |
8. ACCRUED LIABILITIES (Tables)
8. ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Table of Accrued Liabilities | Accrued liabilities consists of the following (in thousands): Table of Accrued Liabilities December 31, 2021 2020 Bonuses $ 43 $ - Payroll and payroll taxes 601 361 Accrued professional fees 89 6 Liabilities to suppliers 263 12 Warranty - 49 Other 174 67 Total $ 1,170 $ 495 |
9. PROPERTY AND EQUIPMENT (Tabl
9. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | Property and equipment consists of the following (in thousands): Components of Property, Plant and Equipment December 31, 2021 2020 Production equipment $ 8,224 $ 7,210 Leasehold improvements 913 913 Computer hardware and software/lab equipment 7,230 6,226 Office furniture and equipment 1,372 1,345 Property, gross 17,739 15,694 Less: Accumulated depreciation (14,713) (13,811) Property, net $ 3,026 $ 1,883 |
10. INTANGIBLE ASSETS (Tables)
10. INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Estimated Future Amortization Expense Related to Intangible Assets | The following table outlines our estimated future amortization expense related to intangible assets held at December 31, 2021 (in thousands): Estimated Future Amortization Expense Related to Intangible Assets Years Ended December 31, Amount 2022 $ 40 2023 32 2024 22 2025 14 2026 7 Thereafter - Total $ 115 |
12. SHARE-BASED COMPENSATION (T
12. SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions for Stock Options | The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: Schedule of Valuation Assumptions for Stock Options Year Ended December 31, 2021 2020 2019 Assumptions (weighted-average) Volatility 120% 111% 78% Expected term (in years) 4.0 4.0 4.0 Risk-free rate 0.9% 0.3% 1.9% Expected dividends 0.0% 0.0% 0.0% Pre-vest forfeiture rate 8.5% 8.5% 8.5% Grant date fair value of options granted $ 11.72 $ 1.20 $ 0.37 |
Schedule of Valuation Assumptions for Stock Options | The following table summarizes activity and positions with respect to options for the periods shown below (in thousands): Schedule of Valuation Assumptions for Stock Options Weighted- Weighted-average average remaining Aggregate exercise contractual intrinsic Options Shares 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 Granted 8 14.04 - - Exercised (1,519) 1.75 - - Forfeited or expired (237) 1.23 - - Outstanding as of December 31, 2021 1,533 $ 1.37 5.6 $ 5,645 Vested and expected to vest as of December 31, 2021 1,518 $ 1.55 5.6 $ 5,584 Exercisable as of December 31, 2021 1,226 $ 1.55 5.1 $ 4,306 |
Restricted Stock Unit Activity | The following table summarizes activity and positions with respect to RSUs and PSUs for the three years ended December 31, 2021: Restricted Stock Unit Activity Weighted-average Shares price Unvested as of December 31, 2018 1,149 $ 0.64 Granted 1,044 0.60 Vested (978) 0.89 Forfeited - - Unvested as of December 31, 2019 1,215 0.40 Granted 1,462 1.08 Vested (219) 0.88 Forfeited (475) 0.77 Unvested as of December 31, 2020 1,983 0.76 Granted 4,179 12.92 Vested (2,380) 3.11 Forfeited (1,157) 11.97 Unvested as of December 31, 2021 2,625 $ 13.05 |
13. LEASES (Tables)
13. LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Components of Lease Expense Year Ended December 31, (in thousands) 2021 2020 2019 Operating lease expense $ 513 $ 464 $ 464 Finance lease expense: Amortization of leased assets 30 26 15 Interest on lease liabilities 3 3 6 Total finance lease expense 33 29 21 Total lease expense $ 546 $ 493 $ 485 |
Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Cash Flow Information Related to Leases Year Ended December 31, (in thousands) 2021 2020 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 762 $ 656 $ 642 Operating cash flows from finance leases 3 3 6 Financing cash flows from finance leases 28 29 20 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ 5,322 $ - $ 1,638 |
Cash Flow Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Cash Flow Information Related to Leases December 31, (in thousands) 2021 2020 Operating leases Operating lease right-of-use assets $ 5,577 $ 946 Current portion of operating lease liability 849 676 Operating lease liability, net of current portion 4,983 774 Total operating lease liabilities $ 5,832 $ 1,450 Finance leases Property and equipment, at cost $ 112 $ 112 Accumulated depreciation (56) (28) Property and equipment, net $ 56 $ 84 Current portion of finance lease obligations $ 21 $ 31 Finance lease obligations, net of current portion 26 44 Total finance lease liabilities $ 47 $ 75 Weighted Average Remaining Lease Term Operating leases 9.5 years 2.3 years Finance leases 1.2 years 2.0 years Weighted Average Discount Rate Operating leases 2.5% 6.0% Finance leases 6.3% 6.3% |
Maturities of Lease Liabilities | As of December 31, 2021, maturities of lease liabilities were as follows: Maturities of Lease Liabilities Operating Finance (in thousands) leases leases Years Ended December 31, 2022 $ 899 $ 28 2023 535 21 2024 551 - 2025 567 - Thereafter 4,069 - Total minimum lease payments 6,621 49 Less: amount representing interest (789) (2) Present value of lease liabilities $ 5,832 $ 47 |
15. INCOME TAXES (Tables)
15. INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The effective tax rate of our provision (benefit) for income taxes differs from the Federal statutory rate as follows: Schedule of Effective Income Tax Rate Reconciliation Year Ended December 31, 2021 2020 2019 Statutory rate 21.0% 21.0% 21.0% Non-deductible executive compensation (8.2)% 0.0% 0.0)% Share-based compensation 25.1% 0.0% 0.0)% Net operating loss expiration (16.2)% (47.5)% (14.7)% Tax credits 1.4% 2.2% 2.8% Change in valuation allowance (23.1)% 24.3% (9.1)% Total 0.0% 0.0% 0.0% |
Schedule of Deferred Tax Assets | Deferred tax assets are summarized as follows (in thousands): Schedule of Deferred Tax Assets December 31, 2021 2020 Deferred tax assets Reserves $ 634 $ 647 Net operating loss carryforwards 90,593 83,289 R&D credit carryforwards 8,984 8,836 Depreciation/amortization deferred 17,417 15,862 Operating lease liabilities 1,222 296 Other 6,701 5,676 Total deferred tax assets 125,551 114,606 Deferred tax liabilities Operating lease right-of-use assets (1,171) (199) Total deferred tax liabilites (1,171) (199) Net valuation allowance (124,380) (114,407) Deferred tax assets $ - $ - |
17. QUARTERLY FINANCIAL INFOR_2
17. QUARTERLY FINANCIAL INFORMATION (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Quarterly Financial Information Fiscal Year 2021 December 31, September 30, June 30, March 31, Revenue $ 557 $ 718 $ 746 $ 479 Gross profit 509 728 777 484 Net loss (12,625) (9,382) (14,962) (6,231) Net loss per share, basic and diluted (0.08) (0.06) (0.09) (0.04) 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) |
Schedule II (Tables)
Schedule II (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation Allowance for Impairment | MicroVision, Inc. Schedule of Valuation Allowance for Impairment 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 2021 Tax valuation allowance $ 114,407 $ 9,973 $ - $ - $ 124,380 |
1. THE COMPANY AND LIQUIDITY (D
1. THE COMPANY AND LIQUIDITY (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash and Cash Equivalents, at Carrying Value | $ 82,647 | $ 16,862 | $ 5,837 |
Available-for-sale Securities | $ 32,720 |
Schedule of Earnings Per Share,
Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||||||||||||||
Net loss available for common shareholders | $ (12,625) | $ (9,382) | $ (14,962) | $ (6,231) | $ (3,570) | $ (2,826) | $ (2,304) | $ (4,934) | $ (3,284) | $ (6,141) | $ (8,990) | $ (8,068) | $ (43,200) | $ (13,634) | $ (26,483) |
Weighted-average common shares outstanding | 160,662 | 139,829 | 111,297 | ||||||||||||
Net loss per share - basic and diluted | $ (0.08) | $ (0.06) | $ (0.09) | $ (0.04) | $ (0.02) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ (0.05) | $ (0.08) | $ (0.08) | $ (0.27) | $ (0.10) | $ (0.24) |
Schedule of Antidilutive Securi
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,158,000 | 5,263,000 | 6,319,000 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,533,000 | 3,281,000 | 5,104,000 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,625,000 | 1,982,000 | 1,215,000 |
Expensed Share-based Payments (
Expensed Share-based Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense | $ 15,284 | $ 1,297 | $ 1,614 |
Cost of Sales [Member] | |||
Share-based Payment Arrangement, Noncash Expense | 26 | ||
Research and Development Expense [Member] | |||
Share-based Payment Arrangement, Noncash Expense | 6,125 | 699 | 379 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Payment Arrangement, Noncash Expense | $ 9,159 | $ 598 | $ 1,209 |
2. SUMMARY OF SIGNIFICANT ACC_4
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Information [Line Items] | |||||||||||||||
[custom:LetterOfCreditForFutureLease-0] | $ 657,000 | $ 657,000 | |||||||||||||
[custom:LetterOfCreditForCurrentLease-0] | $ 435,000 | $ 435,000 | |||||||||||||
Revenues | $ 557,000 | $ 718,000 | $ 746,000 | $ 479,000 | $ 395,000 | $ 639,000 | $ 587,000 | $ 1,469,000 | $ 4,605,000 | $ 1,190,000 | $ 1,240,000 | $ 1,851,000 | 2,500,000 | 3,090,000 | $ 8,886,000 |
Microsoft Concentration Risk [Member] | |||||||||||||||
Product Information [Line Items] | |||||||||||||||
Revenues | $ 2,500,000 | $ 3,000,000 | $ 7,700,000 | ||||||||||||
Concentration Risk, Percentage | 100.00% | 97.00% | 86.00% | ||||||||||||
Second Customer Concentration Risk [Member] | |||||||||||||||
Product Information [Line Items] | |||||||||||||||
Revenues | $ 1,200,000 | ||||||||||||||
Concentration Risk, Percentage | 13.00% |
Disaggregation of Revenue (Deta
Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
[custom:TimingOfRevenueRecognition] | Timing of revenue recognition | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,500 | $ 3,090 | $ 8,886 | |
Product Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,347 | 5,345 | ||
License And Royalty Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,500 | 1,718 | 99 | |
Contract Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 25 | 3,442 | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,500 | 3,069 | 5,622 | |
Transferred at Point in Time [Member] | Product Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,347 | 5,345 | ||
Transferred at Point in Time [Member] | License And Royalty Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,500 | 1,718 | 99 | |
Transferred at Point in Time [Member] | Contract Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 4 | 178 | ||
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 21 | 3,264 | ||
Transferred over Time [Member] | Product Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | ||||
Transferred over Time [Member] | License And Royalty Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | ||||
Transferred over Time [Member] | Contract Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 21 | $ 3,264 |
Significant Changes in Contract
Significant Changes in Contract Assets and Contract Liabilities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Accrued liabilities | $ 1,170 | $ 495 |
Contract liabilities | 5,265 | 7,765 |
Contract with Customer, Asset, after Allowance for Credit Loss, Current | ||
[custom:ContractWithCustomerAssetNetCurrentChange] | ||
[custom:ContractWithCustomerAssetNetCurrentPercentChange] | ||
Contract with Customer, Liability, Current | $ (5,265) | (7,765) |
[custom:ContractWithCustomerLiabilityCurrentChange] | $ 2,500 | |
[custom:ContractWithCustomerLiabilityCurrentPercentChange] | 3,220 | |
[custom:ContractWithCustomerAssetandLiabilitiesNet-0] | $ (5,265) | (7,765) |
[custom:ContractWithCustomerAssetandLiabilitiesNetChange] | $ 2,500 | |
[custom:ContractWithCustomerAssetandLiabilitiesNetPercentChange] | 3,220 | |
Continuing Operations [Member] | ||
Accounts receivable, net | ||
Accrued liabilities | ||
Deferred revenue |
Estimated Timing of Revenue Rec
Estimated Timing of Revenue Recognition (Details) - License And Royalty Revenue [Member] $ in Thousands | Dec. 31, 2021USD ($) |
Year 2022 [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation | $ 2,500 |
Year 2023 [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation |
3. REVENUE RECOGNITION (Details
3. REVENUE RECOGNITION (Details Narrative) - USD ($) | 12 Months Ended | 44 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Apr. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Accrued Liabilities for Commissions, Expense and Taxes | $ 0 | ||||
Contract with Customer, Liability | 5,265,000 | $ 7,765,000 | $ 7,765,000 | ||
License [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Deferred Revenue | $ 10,000,000 | ||||
Contract with Customer, Liability, Revenue Recognized | 2,500,000 | $ 4,700,000 | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,500,000 | 1,718,000 | $ 99,000 | ||
Total Contract Revenue with Customer, Including Assessed Tax | $ 2,000,000 | ||||
Contract with Customer, Liability | 5,300,000 | ||||
License And Royalty Revenue [Member] | Year 2022 [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue, Remaining Performance Obligation, Amount | $ 2,500,000 |
4. LONG-TERM CONTRACTS (Details
4. LONG-TERM CONTRACTS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | 60 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Revenue, Description | In May 2018, we signed a five-year license agreement with Sharp Corporation granting them exclusive license to our laser beam scanning (LBS) technology for display-only applications. The agreement includes an initial exclusivity period with requirements that must be met in order to maintain exclusivity. Because of the impact of COVID-19 on global commerce and new product introductions of consumer electronic devices, in February 2021 the agreement was amended to increase the term to six years and add twelve months to the initial exclusivity period. If this licensee acquires a customer, the agreement requires the licensee to buy specific components from us. The exclusivity period ended in the fourth quarter of 2021. | |||||
Contract with Customer, Liability | $ 5,265 | $ 7,765 | ||||
Software License Arrangement [Member] | ||||||
Deferred Revenue, Description | 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 arrangement, the royalties earned will be applied against the remaining $5.3 million prepayment that we had previously received from the customer until the prepayment is exhausted. | 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. | ||||
Deferred Revenue, Additions | $ 10,000 | $ 15,000 | ||||
Recognition of Deferred Revenue | $ 2,900 | 15,000 | ||||
Contract with Customer, Liability | $ 5,300 |
Schedule of Fair Value Hierarch
Schedule of Fair Value Hierarchy Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Current | $ 32,720 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Current | 32,720 |
Debt Securities, Current | 32,720 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Current | |
Debt Securities, Current | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Current | 32,720 |
Debt Securities, Current | 32,720 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Current | |
Debt Securities, Current |
Schedule of Unrealized Gain or
Schedule of Unrealized Gain or Loss on Short-term Investments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Amortized Cost, Current | $ 32,739 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (22) |
Debt Securities, Available-for-sale, Current | 32,720 |
Corporate Debt Securities [Member] | |
Assets [Abstract] | |
Debt Securities, Available-for-sale, Amortized Cost, Current | 32,739 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (22) |
Debt Securities, Available-for-sale, Current | $ 32,720 |
+Maturity Date of Available-for
+Maturity Date of Available-for-sale Securities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | $ 3 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (22) |
Debt Securities, Available-for-sale, Amortized Cost, Current | 32,739 |
Debt Securities, Available-for-sale, Current | 32,720 |
Corporate Debt Securities [Member] | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Amortized Cost | 32,739 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 3 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (22) |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value | 32,720 |
Debt Securities, Available-for-sale, Amortized Cost, Current | 32,739 |
Debt Securities, Available-for-sale, Current | $ 32,720 |
Schedule of Unrealized Loss on
Schedule of Unrealized Loss on Investment Securities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Net Investment Income [Line Items] | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 27,195 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (22) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 27,195 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (22) |
Corporate Debt Securities [Member] | |
Net Investment Income [Line Items] | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 27,195 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (22) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 27,195 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ (22) |
6. LONG-TERM DEBT (Details Narr
6. LONG-TERM DEBT (Details Narrative) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2021 | Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |||||
Debt Instrument, Description | In April 2020, we received funds in the amount of approximately $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. Due to an extension of the program, no payments were due until August 2021, although interest accrued during that period. Thereafter, the loan became repayable in monthly installments through April 2022 to retire the loan plus accrued interest. Funds from the loan could only be used for certain purposes, including payroll, benefits, rent and utilities, and a portion of the loan used to pay certain costs was forgivable, all as provided by the terms of the PPP. The CARES Act provided that the forgivable portion of the PPP loan could be reduced if the borrower reduced full-time equivalent employees during the covered period as compared to a base period. As of December 31, 2020, all of the funds received under the PPP had been used for qualified purposes. We applied for and, in July 2021, received partial forgiveness of the loan of approximately $690,000 in accordance with PPP guidelines. The forgiveness was recorded in our financial statements in the third quarter of 2021 as a gain on debt extinguishment. As of December 31, 2021, we have made principal payments totaling $488,000 on the loan. 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. | ||||
Debt Instrument, Face Amount | $ 1,600,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.98% | ||||
[custom:AmountOfPppLoanForgiven-0] | $ 690,000 | ||||
Repayments of Long-term Debt | $ 488,000 |
Components of Inventory (Detail
Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,780 | |
$ 1,780 |
7. INVENTORY (Details Narrative
7. INVENTORY (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Inventory write-down | $ 48,000 | $ 168,000 | $ 2,200,000 |
Table of Accrued Liabilities (D
Table of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Bonuses | $ 43 | |
Payroll and payroll taxes | 601 | 361 |
Accrued professional fees | 89 | 6 |
Liabilities to suppliers | 263 | 12 |
Warranty | 49 | |
Other | 174 | 67 |
Total | $ 1,170 | $ 495 |
Components of Property, Plant a
Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Production equipment | $ 8,224 | $ 7,210 |
Leasehold improvements | 913 | 913 |
Computer hardware and software/lab equipment | 7,230 | 6,226 |
Office furniture and equipment | 1,372 | 1,345 |
Property, gross | 17,739 | 15,694 |
Less: Accumulated depreciation | (14,713) | (13,811) |
Property, net | $ 3,026 | $ 1,883 |
9. PROPERTY AND EQUIPMENT (Deta
9. PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 902,000 | $ 442,000 | $ 1,100,000 |
Estimated Future Amortization E
Estimated Future Amortization Expense Related to Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 40 | |
2023 | 32 | |
2024 | 22 | |
2025 | 14 | |
2026 | 7 | |
Thereafter | ||
Total | $ 115 | $ 164 |
10. INTANGIBLE ASSETS (Details
10. INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Finite-Lived Intangible Assets, Gross | $ 951,000 | $ 951,000 | |
Amortization of Intangible Assets | 49,000 | 57,000 | $ 105,000 |
Impairment of Intangible Assets, Finite-lived | $ 160,000 |
11. COMMON STOCK (Details Narra
11. COMMON STOCK (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Cash received from stock sale | $ 129,026 | $ 24,368 | $ 16,775 |
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | 6,135 | ||
June 2021 [Member] | |||
Class of Stock [Line Items] | |||
[custom:StockAgreementDescription] | In June 2021, we entered into a $140.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we are able, at our discretion, to offer and sell shares of our common stock having an aggregate value of up to $140.0 million through Craig-Hallum. As of December 31, 2021, we had issued | ||
Number of shares of common stock issued | 4 | ||
Cash received from stock sale | $ 67,800 | ||
February 2021 [Member] | |||
Class of Stock [Line Items] | |||
[custom:StockAgreementDescription] | 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 issued | ||
Number of shares of common stock issued | 2.5 | ||
Cash received from stock sale | $ 48,800 | ||
December 2020 [Member] | |||
Class of Stock [Line Items] | |||
[custom:StockAgreementDescription] | In December 2020, we entered into a $13.0 million ATM equity offering agreement with Craig-Hallum. Under the agreement we were able, from time to time, at our discretion to 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 was 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 January 2021, we issued 1.1 million shares of our common stock for net proceeds of $6.6 million under the agreement. In total, we issued | ||
Number of shares of common stock issued | 2.1 | ||
Cash received from stock sale | $ 12,700 | ||
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable | $ 6,100 | ||
November 2020 [Member] | |||
Class of Stock [Line Items] | |||
[custom:StockAgreementDescription] | 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. | ||
Number of shares of common stock issued | 4.9 | ||
Cash received from stock sale | $ 9,600 | ||
December 2019 [Member] | |||
Class of Stock [Line Items] | |||
[custom:StockAgreementDescription] | 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. | ||
Number of shares of common stock issued | 22.2 | ||
Cash received from stock sale | $ 15,600 |
Schedule of Valuation Assumptio
Schedule of Valuation Assumptions for Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 120.00% | 111.00% | 78.00% | |
Expected term (in years) | 4 years | 4 years | 4 years | |
Risk-free rate | 0.90% | 0.30% | 1.90% | |
Expected dividends | 0.00% | 0.00% | 0.00% | |
Pre-vest forfeiture rate | 8.50% | 8.50% | 8.50% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ 11.72 | $ 1.20 | $ 0.37 | |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 3,281,000 | 5,104,000 | 4,646,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 1.51 | $ 1.66 | $ 2.27 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 7 months 6 days | 6 years 7 months 6 days | 7 years 4 months 24 days | 7 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,000 | 68,000 | 1,636,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 14.04 | $ 1.60 | $ 0.65 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (1,519,000) | (693,000) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 1.75 | $ 1.44 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | (237,000) | (1,198,000) | (1,178,000) | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 1.23 | $ 2.20 | $ 2.66 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 5,645 | $ 122 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 1,533,000 | 3,281,000 | 5,104,000 | 4,646,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 1.37 | $ 1.51 | $ 1.66 | $ 2.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,518,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 1.55 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years 7 months 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 5,584 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,226,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 1.55 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 4,306 |
Restricted Stock Unit Activity
Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 1,983,000 | 1,215,000 | 1,149,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance | $ 0.76 | $ 0.40 | $ 0.64 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,179,000 | 1,462,000 | 1,044,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.92 | $ 1.08 | $ 0.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (2,380,000) | (219,000) | (978,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 3.11 | $ 0.88 | $ 0.89 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (1,157,000) | (475,000) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 11.97 | $ 0.77 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 2,625,000 | 1,983,000 | 1,215,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance | $ 13.05 | $ 0.76 | $ 0.40 |
12. SHARE-BASED COMPENSATION (D
12. SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 5,300,000 | |||||
Total grant date fair value of options vested | $ 508,000 | $ 604,000 | $ 801,000 | |||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 61,000 | |||||
Amortization period | 6 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 4,179,000 | 1,462,000 | 1,044,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,157,000 | 475,000 | ||||
Executive Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | We 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. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 475,000 | |||||
Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 17,300,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,000 | 68,000 | 1,636,000 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amortization period | 2 years 4 months 24 days | |||||
Unrecognized share-based employee compensation | $ 25,300,000 | |||||
Restricted Stock Units (RSUs) [Member] | C E O Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In 2021, an equity award was granted to the Chief Executive Officer in the form of 1.2 million restricted stock units. These shares were valued based on the closing price of our common stock on the dates of grant. On the date of grant, 300,000 shares vested immediately, and subsequent grants of 300,000 RSUs will be made on an annual basis in each of April 2022, April 2023 and April 2024. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,200,000 | |||||
Restricted Stock Units (RSUs) [Member] | R S Uto Non Executive [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In 2021, we issued 1.1 million RSUs to non-executive employees for promotion, retention and new hire grants. These shares were valued based on the closing price of our common stock on the dates of grant. These shares vest annually over one to four years from the date of grant. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,100,000 | |||||
Restricted Stock Units (RSUs) [Member] | R S Uto New Hire Non Executive [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 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. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 111,000 | |||||
Restricted Stock Units (RSUs) [Member] | R S Uto Retentionand New Hire Non Executive [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 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. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,200,000 | |||||
Restricted Stock Units (RSUs) [Member] | R S Uto Executives [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 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. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 384,751 | |||||
Restricted Stock Units (RSUs) [Member] | R S Uto Board Members [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 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. | 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. | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 163,734 | 120,000 | 180,000 | |||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amortization period | 9 months 18 days | |||||
Unrecognized share-based employee compensation | $ 716,000 | |||||
Performance Shares [Member] | P S Uto Non Executive [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | In 2021, we issued 1.5 million shares of performance stock units to non-executive employees. These shares were valued based on the closing price of our common stock on the dates of grant. The shares vest one-eighth upon achievement of performance milestones with the remainder vesting quarterly over the following seven quarters. In 2021, 1.1 million of the performance stock units were canceled because of modifications to or failure to achieve performance milestones. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,100,000 | |||||
Performance Shares [Member] | P S Uto Executives [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | 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 $2.50 sustained for 60 of trailing 90 days before the PSUs are earned (“Earned PSUs”). To the extent the PSUs become Earned PSUs, the PSUs shall be eligible to vest as to one-third (1/3) of the PSUs subject to the Award on the each of the first three (3) anniversaries of May 22, 2019. If there are outstanding but unearned PSUs as of a vesting date and the PSUs become Earned PSUs prior to the next vesting date the Earned PSUs that would have vested on any earlier vesting date shall become immediately vested and deliverable. The PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 195,000 |
Components of Lease Expense (De
Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating lease expense | $ 513 | $ 464 | $ 464 |
Finance lease expense: | |||
Amortization of leased assets | 30 | 26 | 15 |
Interest on lease liabilities | 3 | 3 | 6 |
Total finance lease expense | 33 | 29 | 21 |
Total lease expense | $ 546 | $ 493 | $ 485 |
Cash Flow Information Related t
Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Cash paid for amounts included in measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 762 | $ 656 | $ 642 | |
Operating cash flows from finance leases | 3 | 3 | 6 | |
Financing cash flows from finance leases | 28 | 29 | 20 | |
Right-of-use assets obtained in exchange for new lease obligations: | ||||
Operating leases | 5,322 | $ 1,638 | ||
Operating leases | ||||
Operating lease right-of-use assets | 5,577 | 946 | $ 1,600 | |
Operating Lease, Liability | 5,832 | |||
Finance leases | ||||
Property, Plant and Equipment, Gross | 17,739 | 15,694 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (14,713) | (13,811) | ||
Property, Plant and Equipment, Net | 3,026 | $ 1,883 | ||
Finance Lease, Liability | $ 47 | |||
Weighted Average Remaining Lease Term | ||||
Operating Lease, Weighted Average Remaining Lease Term | 9 years 256 days | 2 years 110 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 1 year | 2 years | ||
Weighted Average Discount Rate | ||||
Operating leases | 2.50% | 6.00% | ||
Finance leases | 6.30% | 6.30% | ||
Financial Lease [Member] | ||||
Finance leases | ||||
Property, Plant and Equipment, Gross | $ 112 | $ 112 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (56) | (28) | ||
Property, Plant and Equipment, Net | 56 | 84 | ||
Other Current Liabilities [Member] | ||||
Operating leases | ||||
Operating Lease, Liability | 849 | 676 | ||
Finance leases | ||||
Finance Lease, Liability | 21 | 31 | ||
Other Noncurrent Liabilities [Member] | ||||
Operating leases | ||||
Operating Lease, Liability | 4,983 | 774 | ||
Finance leases | ||||
Finance Lease, Liability | 26 | 44 | ||
Other Liabilities [Member] | ||||
Operating leases | ||||
Operating Lease, Liability | $ 5,832 | $ 1,450 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 899 |
Finance Lease, Liability, to be Paid, Year One | 28 |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two | 535 |
Finance Lease, Liability, to be Paid, Year Two | 21 |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three | 551 |
Finance Lease, Liability, to be Paid, Year Three | |
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four | 567 |
Finance Lease, Liability, to be Paid, Year Four | |
Lessee, Operating Lease, Liability, Payments, Due after Rolling Year Five | 4,069 |
Finance Lease, Liability, to be Paid, after Year Five | |
Lessee, Operating Lease, Liability, to be Paid | 6,621 |
Finance Lease, Liability, Payment, Due | 49 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (789) |
Finance Lease, Liability, Undiscounted Excess Amount | (2) |
Operating Lease, Liability | 5,832 |
Finance Lease, Liability | $ 47 |
13. LEASES (Details Narrative)
13. LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 5,577,000 | $ 946,000 | $ 1,600,000 |
Operating Lease, Liability, Noncurrent | $ 4,983,000 | $ 774,000 | 2,500,000 |
Reduction in other short-term and long-term liabilities | $ 873,000 | ||
Office Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease Description | In September 2021, we entered into an office lease with Redmond East Office Park LLC, a Washington limited liability company, pursuant to which we will lease approximately 16,681 square feet of space located in Redmond, Washington that we will use primarily for general office space and product testing. The lease provides for an initial term of 128 months that commenced November 1, 2021. Pursuant to the lease, annual base rent will be approximately $500,000 for the first year and is subject to annual increases of 3.0%. In addition to base rent, we will pay additional rent comprised of our proportionate share of any operating expenses, real estate taxes, and management fees. We have the option to extend the term for one ten-year renewal period, provided that the rent would be subject to market adjustment at the beginning of the renewal term. The total minimum lease payments related to this lease is $6.4 million. | ||
Lessee, Operating Sublease, Option to Extend | We have the option to extend the term for one ten-year renewal period, provided that the rent would be subject to market adjustment at the beginning of the renewal term. | ||
Second Office Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease Description | In September 2021, we entered into a second office lease with Redmond East Office Park LLC, pursuant to which we will lease approximately 36,062 square feet of space located in Redmond, Washington that we will use primarily for general office and lab space. The lease provides for an initial term of 120 months with a target commencement date of July 1, 2022. Pursuant to the lease, annual base rent will be approximately $1.1 million for the first year and is subject to annual increases of 3.0%. In addition to base rent, we will pay additional rent comprised of our proportionate share of any operating expenses, real estate taxes, and management fees. We have the option to extend the term for one ten-year renewal period, provided that the rent would be subject to market adjustment at the beginning of the renewal term. The total minimum lease payments related to this forward-starting lease is $13.0 million. The lease liability associated with this forward-starting lease are excluded from the tables below. | ||
Lessee, Operating Sublease, Option to Extend | We have the option to extend the term for one ten-year renewal period, provided that the rent would be subject to market adjustment at the beginning of the renewal term. The total minimum lease payments related to this forward-starting lease is $13.0 million. | ||
Current Office Lease [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating Lease Description | In connection with the effectiveness of the second lease with Redmond East Office Park, we amended our current office lease to provide for early termination intended to coincide with our move into the new 36,062 square feet of space but, in any event, no later than October 31, 2022. |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 21.00% |
Non-deductible executive compensation | (8.20%) | 0.00% | 0.00% |
Share-based compensation | 25.10% | 0.00% | 0.00% |
Net operating loss expiration | (16.20%) | (47.50%) | (14.70%) |
Tax credits | 1.40% | 2.20% | 2.80% |
Change in valuation allowance | (23.10%) | 24.30% | (9.10%) |
Total | 0.00% | 0.00% | 0.00% |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||
Reserves | $ 634 | $ 647 |
Net operating loss carryforwards | 90,593 | 83,289 |
R&D credit carryforwards | 8,984 | 8,836 |
Depreciation/amortization deferred | 17,417 | 15,862 |
Other | 6,701 | 5,676 |
Total deferred tax assets | 125,551 | 114,606 |
Deferred tax liabilities | ||
Operating lease right-of-use assets | (1,171) | (199) |
Total deferred tax liabilites | (1,171) | (199) |
Net valuation allowances | (124,380) | (114,407) |
Deferred tax assets |
15. INCOME TAXES (Details Narra
15. INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Other Information Pertaining to Income Taxes | During 2021, $31.2 million federal net operating losses and $456,000 general business credits expired unused | ||
Operating Loss Carryforwards, Limitations on Use | 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. | ||
Unrecognized Tax Benefits | $ 0 | 0 | |
Income Tax Examination, Penalties and Interest Expense | $ 0 | $ 0 | $ 0 |
Open Tax Year | 1998 | ||
Minimum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2022 | ||
Maximum [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2041 | ||
Research Tax Credit Carryforward [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | $ 9,000,000 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | $ 431,400,000 |
16. RETIREMENT SAVINGS PLAN (De
16. RETIREMENT SAVINGS PLAN (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |||
Defined Contribution Plan, Cost | $ 259,000 | $ 213,000 | $ 393,000 |
Quarterly Financial Information
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | 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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 557 | $ 718 | $ 746 | $ 479 | $ 395 | $ 639 | $ 587 | $ 1,469 | $ 4,605 | $ 1,190 | $ 1,240 | $ 1,851 | $ 2,500 | $ 3,090 | $ 8,886 |
Gross profit | 509 | 728 | 777 | 484 | 395 | 639 | 588 | 70 | 1,179 | (882) | (583) | 608 | 2,498 | 1,692 | 322 |
Net loss | $ (12,625) | $ (9,382) | $ (14,962) | $ (6,231) | $ (3,570) | $ (2,826) | $ (2,304) | $ (4,934) | $ (3,284) | $ (6,141) | $ (8,990) | $ (8,068) | $ (43,200) | $ (13,634) | $ (26,483) |
Net loss per share, basic and diluted | $ (0.08) | $ (0.06) | $ (0.09) | $ (0.04) | $ (0.02) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.03) | $ (0.05) | $ (0.08) | $ (0.08) | $ (0.27) | $ (0.10) | $ (0.24) |
17. QUARTERLY FINANCIAL INFOR_3
17. QUARTERLY FINANCIAL INFORMATION (Unaudited) (Details Narrative) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |
[custom:ReversalOfPreviouslyAccruedBonuses] | $ 770,000 |
Schedule of Valuation Allowance
Schedule of Valuation Allowance for Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Tax valuation allowance | $ 114,407 | $ 117,725 | $ 115,313 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 9,973 | 2,412 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Other Account | |||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | 3,318 | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount, Ending Balance | 124,380 | 114,407 | 117,725 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | $ (3,318) |
Uncategorized Items - form10-k.
Label | Element | Value |
Common Stock [Member] | ||
Stock Issued During Period, Shares, New Issues | us-gaap_StockIssuedDuringPeriodSharesNewIssues | 24,876 |