Peraso (PRSO) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document And Entity Information [Abstract]
Entity Registrant Name	MoSys, Inc.
Entity Central Index Key	890,394
Trading Symbol	MOSY
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,170,910
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 3,595	$ 3,868
Accounts receivable	1,474	1,681
Inventories	2,294	1,766
Prepaid expenses and other	428	1,347
Total current assets	7,791	8,662
Property and equipment, net	512	827
Goodwill	13,276	13,276
Intangible assets, net	56	111
Other	262	263
Total assets	21,897	23,139
Current liabilities
Accounts payable	228	170
Deferred revenue	1,576	3,938
Accrued expenses and other	1,987	2,507
Total current liabilities	3,791	6,615
Long-term liabilities	18	18
Convertible notes payable	9,647	9,160
Total liabilities	13,456	15,793
Commitments and contingencies (Note 4)
Stockholders’ equity
Preferred stock, $0.01 par value; 20,000 shares authorized; none issued and outstanding
Common stock, $0.001 par value; 120,000 shares authorized; 8,171 shares and 8,068 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	8	8
Additional paid-in capital	232,228	232,026
Accumulated deficit	(223,795)	(224,688)
Total stockholders’ equity	8,441	7,346
Total liabilities and stockholders’ equity	$ 21,897	$ 23,139

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	8,171,000	8,068,000
Common stock, shares outstanding	8,171,000	8,068,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net revenue
Total net revenue	$ 4,598	$ 1,384	$ 8,806	$ 2,596
Cost of net revenue	1,833	732	3,434	1,334
Gross profit	2,765	652	5,372	1,262
Operating expenses
Research and development	990	2,313	2,041	5,798
Selling, general and administrative	1,250	1,101	2,239	2,415
Restructuring charges		1,002		1,002
Total operating expenses	2,240	4,416	4,280	9,215
Income (loss) from operations	525	(3,764)	1,092	(7,953)
Interest expense	(206)	(223)	(427)	(447)
Other income (expense), net	(3)			13
Income (loss) before income taxes	316	(3,987)	665	(8,387)
Income tax provision	1	7	2	12
Net and comprehensive income (loss)	$ 315	$ (3,994)	$ 663	$ (8,399)
Net income (loss) per share
Basic	$ 0.04	$ (0.60)	$ 0.08	$ (1.26)
Diluted	$ 0.04	$ (0.60)	$ 0.08	$ (1.26)
Shares used in computing net income (loss) per share
Basic	8,171	6,677	8,151	6,662
Diluted	8,409	6,677	8,378	6,662
Product [Member]
Net revenue
Total net revenue	$ 4,051	$ 1,111	$ 7,755	$ 2,066
Royalty and Other [Member]
Net revenue
Total net revenue	$ 547	$ 273	$ 1,051	$ 530

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income (loss)	$ 663	$ (8,399)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	340	389
Stock-based compensation	252	356
Amortization of intangible assets	55	56
Amortization of debt issuance costs	24	22
Accrued interest	403	430
Changes in assets and liabilities
Accounts receivable	207	37
Inventories	(528)	403
Prepaid expenses and other assets	920	(653)
Accounts payable	58	(407)
Deferred revenue and other liabilities	(2,592)	763
Net cash used in operating activities	(198)	(7,003)
Cash flows from investing activities:
Purchases of property and equipment	(25)
Proceeds from sales and maturities of marketable securities		2,604
Purchases of marketable securities		(1,602)
Net cash provided by (used in) investing activities	(25)	1,002
Cash flows from financing activities:
Issuance costs for sale of common stock	(12)	(22)
Taxes paid to net share settle equity awards	(38)
Net cash used in financing activities	(50)	(22)
Net decrease in cash and cash equivalents	(273)	(6,023)
Cash and cash equivalents at beginning of period	3,868	8,766
Cash and cash equivalents at end of period	3,595	2,743
Supplemental disclosure:
Issuance of convertible notes in settlement of accrued interest	$ 463	$ 420

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	Note 1. The Company and Summary of Significant Accounting Policies MoSys, Inc. (the “Company”) was incorporated in California in September 1991 and reincorporated in September 2000 in Delaware. The Company’s strategy and primary business objective is to be an IP-rich fabless semiconductor company focused on the development and sale of integrated circuit (IC) products. Its Bandwidth Engine ICs combine the Company’s proprietary high-density embedded memory with its high-speed 10 gigabits per second and higher interface technology. The Company’s future success and ability to achieve and maintain profitability depends on its success in developing a market for its ICs. The accompanying condensed consolidated financial statements of the Company have been prepared on a basis that assumes that the Company will continue as a going concern and contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business and have been prepared without audit in accordance with the rules and regulations of the Securities and Exchange Commission (SEC). The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted in accordance with these rules and regulations. The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or for any other future period. Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates. Cash Equivalents and Investments The Company invests its excess cash in money market accounts, certificates of deposit, commercial paper, corporate debt, government-sponsored enterprise bonds and municipal bonds and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company’s available-for-sale short-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive loss. Realized gains and losses and declines in the value judged to be other than temporary are included in the other income, net line item in the condensed consolidated statements of operations and comprehensive loss. The cost of securities sold is based on the specific identification method. Fair Value Measurements The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1— Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2— Pricing is provided by third party sources of market information obtained through the Company’s investment advisors, rather than models. The Company does not adjust for, or apply, any additional assumptions or estimates to the pricing information it receives from advisors. The Company’s Level 2 securities may include cash equivalents and available-for-sale securities, which consist primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high-quality credit ratings. The Company’s investment advisors obtain pricing data from independent sources, such as Standard & Poor’s, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. Level 3— Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity. Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100% of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. There was no allowance for doubtful accounts receivable at either June 30, 2018 or December 31, 2017. Inventories The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. The Company records inventory reserves for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. Once a reserve is established, it is maintained until the product to which it relates is sold or otherwise disposed of. If actual market conditions are less favorable than those expected by management, additional adjustment to inventory valuation may be required. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow moving inventory items. The Company recorded no inventory write-downs during the three or six months ended June 30, 2018 or 2017. Critical Accounting Policy – Revenue Recognition The Company generates revenue primarily from sales of IC products and licensing of its IP. Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. IC products Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated, formula, list or fixed price. The Company its and generally under agreements with payment terms typically less than 60 days. The Company may record an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. Royalty and other The Company’s licensing contracts typically provide for royalties based on the licensee’s use of the Company’s memory technology in its currently shipping commercial products. With the adoption of ASC 606 in January 2018, the Company estimates its royalty revenue in the calendar quarter in which the licensee uses the licensed technology. Payments are generally received in the subsequent quarter. Contract liabilities – deferred revenue The Company’s contract liabilities consist of advance customer payments and deferred revenue. The Company classifies advance customer payments and deferred revenue as current or non-current based on the timing of when the Company expects to recognize revenue. For the six months ended June 30, 2018, contract liabilities were in a current position and included in deferred revenue. During the six months ended June 30, 2018, the Company recognized revenue of $2.6 million that had been included in deferred revenue at December 31, 2017. See Note 5 for disaggregation of revenue by geography. Cost of Net Revenue Cost of net revenue consists primarily of direct and indirect costs of IC product sales and engineering personnel costs directly related to maintenance and support services specified in licensing agreements. Maintenance and support typically include engineering support to assist in the commencement of production of a licensee’s products. Goodwill In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-04, Simplifying the Test for Goodwill Impairment The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to determine the step one fair value, the price of its common stock is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit, which can lead to potential impairment in future periods. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than the carrying amount. If the qualitative assessment warrants further analysis, the Company compares the fair value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using the market approach. If the fair value of the reporting unit exceeds the carrying value of net assets of the reporting unit, goodwill is not impaired. If the carrying value of the reporting unit’s goodwill exceeds its fair value, then the Company must record an impairment charge equal to the difference. The Company performed its annual test for goodwill impairment as of September 1, 2017, and performed a subsequent test on June 30, 2018. Per Share Amounts Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options, vesting of stock awards and shares issuable in conjunction with the Company’s outstanding senior secured convertible notes. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net income (loss) $ 315 $ (3,994 ) $ 663 $ (8,399 ) Denominator: Add: weighted-average common shares outstanding 8,171 6,677 8,151 6,662 Total shares: basic 8,171 6,677 8,151 6,662 Add: weighted-average stock options outstanding 81 — 72 — Add: weighted-average unvested restricted stock units 157 — 155 — Total shares: diluted 8,409 6,677 8,378 6,662 Net income (loss) per share: Basic $ 0.04 $ (0.60 ) $ 0.08 $ (1.26 ) Diluted $ 0.04 $ (0.60 ) $ 0.08 $ (1.26 ) The following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Options outstanding to purchase common stock 144 336 144 659 Employee stock purchase plan — — — 35 Unvested restricted common stock units — 52 — 11 Convertible debt 2,271 973 2,271 889 Total 2,415 1,361 2,415 1,594 Debt Issuance Costs Debt issuance costs are capitalized and amortized to interest expense using the effective interest method. Unamortized debt issuance costs are presented in the condensed consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability and accounted for as debt discounts.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Note 2: Fair Value of Financial Instruments The estimated fair values of financial instruments outstanding were (in thousands): June 30, 2018 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 3,595 $ — $ — $ 3,595 December 31, 2017 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 3,868 $ — $ — $ 3,868 The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) (in thousands): June 30, 2018 Fair Value Level 1 Level 2 Level 3 Money market funds $ 625 $ 625 $ — $ — December 31, 2017 Fair Value Level 1 Level 2 Level 3 Money market funds $ 621 $ 621 $ — $ — There were no transfers in or out of Level 1 and Level 2 securities during the three or six months ended June 30, 2018 or 2017.

Balance Sheet Detail

Balance Sheet Detail	6 Months Ended
	Jun. 30, 2018
Consolidated Balance Sheets And Statements Of Operations Components Disclosure [Abstract]
Balance Sheet Detail	Note 3. Balance Sheet Detail June 30, December 31, 2018 2017 (in thousands) Inventories: Work-in-process $ 1,941 $ 1,612 Finished goods 353 154 $ 2,294 $ 1,766 Identifiable intangible assets were (dollar amounts in thousands): June 30, 2018 Gross Net Life Carrying Accumulated Carrying (years) Amount Amortization Amount Patent license 7 $ 780 $ 724 $ 56 December 31, 2017 Gross Net Life Carrying Accumulated Carrying (years) Amount Amortization Amount Patent license 7 $ 780 $ 669 $ 111 Amortization expense has been included in research and development expense in the condensed consolidated statements of operations. The remaining estimated aggregate amortization expense is less than $0.1 million and will be recognized in 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 4. Commitments and Contingencies Indemnification In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No material amounts were reflected in the Company’s condensed consolidated financial statements for the three or six months ended June 30, 2018 or 2017 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any material payments related to these indemnification agreements. Legal Matters In October 2017, Trinity Technologies, Inc. (Trinity), the Company’s former sales representative in the San Francisco Bay Area, filed a lawsuit against the Company in the Superior Court of California alleging non-payment of commissions. In April 2018, the Company and Trinity executed a settlement agreement, and Trinity dismissed the lawsuit. Under the terms of the settlement agreement, the Company agreed to pay Trinity for commissions related to both 2017 and 2018. Commissions for the period prior to April 1, 2018 were accrued as of March 31, 2018. Pursuant to the settlement agreement, the Company recorded commission expenses of approximately $250,000 and paid approximately $450,000 in the quarter ended June 30, 2018.

Business Segments, Concentratio

Business Segments, Concentration of Credit Risk and Significant Customers	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Business Segments, Concentration of Credit Risk and Significant Customers	Note 5. Business Segments, Concentration of Credit Risk and Significant Customers The Company operates in one business segment and uses one measurement of profitability for its business. Net revenue is attributed to the United States and to all foreign countries based on the geographical location of the customer. The Company recognized revenue from shipment of product and licensing of its technologies to customers by geographical location as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 North America $ 3,384 $ 961 $ 6,741 $ 1,783 Japan 1,128 200 1,842 371 Taiwan 73 171 156 340 Rest of world 13 52 67 102 Total net revenue $ 4,598 $ 1,384 $ 8,806 $ 2,596 Customers who accounted for at least 10% of total net revenue were: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Customer A 31% 37% 39% 46% Customer B 24% 14% 12% 14% Customer C 21% *% 22% *% Customer D *% 10% *% *% Customer E *% 10% *% 12% * Represents less than 10% Two customers accounted for 76% of accounts receivable, net at June 30, 2018. One customer accounted for 63% of accounts receivable, net at December 31, 2017.

Income Tax Provision

Income Tax Provision	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Tax Provision	Note 6. Income Tax Provision The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. All tax returns from 2013 to 2017 may be subject to examination by the Internal Revenue Service, California and other states. Returns filed in foreign jurisdictions may be subject to examination for the years 2009 to 2017. As of June 30, 2018, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 7. Stock-Based Compensation The expense relating to stock options is recognized on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The unamortized compensation cost, net of expected forfeitures, as of June 30, 2018 was $0.8 million related to stock options and is expected to be recognized as expense over a weighted-average period of approximately 2.0 years. The expense related to restricted stock units (RSUs) is recognized over a three-to-five year vesting period and is based on the fair value of the underlying stock on the dates of grant. The unamortized compensation cost, net of expected forfeitures, as of June 30, 2018 was $0.3 million related to RSUs and is expected to be recognized as expense over a weighted-average period of approximately 0.6 years. For the three and six months ended June 30, 2018 and 2017, there were no excess tax benefits associated with the exercise of stock options due to the Company’s historical loss positions. Valuation Assumptions No stock options were granted during the three months ended June 30, 2018 or 2017. The fair value of the Company’s stock options granted for the six months ended June 31, 2018 and 2017 was estimated on the grant dates using the Black-Scholes valuation option-pricing model with the following assumptions: Six Months Ended June 30, 2018 2017 Risk-free interest rate 2.2 % 1.6 % Volatility 109.5 % 70.2 % Expected life (years) 4.0 4.0 Dividend yield — % — % The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates, as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. The expected volatility was based on the historical volatility of the Company’s stock price over the expected term of the options. The expected term of options granted was derived from historical data based on employee exercises and post‑vesting employment termination behavior. A dividend yield of zero is applied because the Company has never paid dividends, and has no intention to pay dividends in the near future. The stock‑based compensation expense recorded is adjusted based on estimated forfeiture rates. An annualized forfeiture rate has been used as a best estimate of future forfeitures based on the Company’s historical forfeiture experience. Stock‑based compensation expense will be adjusted in later periods if the actual forfeiture rate is different from the estimate. Common Stock Options and Restricted Stock A summary of option and RSU activity under the Company’s Amended and Restated 2010 Equity Incentive Plan (the Plan) is presented below (in thousands, except exercise price): Awards outstanding Weighted Shares Average Available Number of Exercise for Grant Shares Prices Balance at January 1, 2018 231 307 $ 4.81 Additional shares authorized under the Plan 50 — — RSUs granted (60 ) — — RSUs cancelled and returned to the Plan 1 — — Options granted (40 ) 40 $ 1.28 Options cancelled and returned to the Plan 2 (2 ) $ 23.47 Balance at March 31, 2018 184 345 $ 4.30 Options cancelled and returned to the Plan 1 (1 ) $ 9.40 Balance at June 30, 2018 185 344 $ 4.27 A summary of RSU activity under the Plan is presented below (in thousands, except for fair value): Weighted Average Number of Grant-Date Shares Fair Value Non-vested shares at January 1, 2018 376 $ 1.58 Granted 60 $ 1.16 Vested (133 ) $ 2.11 Cancelled (1 ) $ 0.94 Non-vested shares at June 30, 2018 302 $ 1.27 In the six months ended June 30, 2018, the Company paid approximately $38,000 for employee income taxes related to net-share settlement of vested RSUs. The total intrinsic value of the RSUs outstanding as of June 30, 2018 was $0.5 million. The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2018 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Average Average Aggregate Number Life Exercise Number Exercise Intrinsic Range of Exercise Price Outstanding (in Years) Price Exercisable Price value $0.75 - $1.27 160 5.30 $ 0.75 — $ — $ 160 $1.28 - $7.19 51 6.07 $ 2.10 7 $ 5.17 $ 19 $7.20 - $20.49 112 8.01 $ 7.20 70 $ 7.20 $ — $20.50 - $43.59 19 6.55 $ 20.50 16 $ 20.50 $ — $44.60 - $46.19 1 4.93 $ 44.60 1 $ 44.60 $ — $46.20 - $46.20 1 5.64 $ 46.20 1 $ 46.20 $ — $0.75 - $46.20 344 6.37 $ 4.27 95 $ 9.68 $ 179 Vested and expected to vest 322 6.42 $ 4.45 162 Exercisable 94 7.68 $ 9.68 — There were no stock options exercised during the six months ended June 30, 2018 or 2017. As of June 30, 2018, the intrinsic value of outstanding stock options was approximately $0.2 million.

Convertible Notes

Convertible Notes	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Convertible Notes	Note 8. Convertible Notes On March 14, 2016, the Company entered into a 10% Senior Secured Convertible Note Purchase Agreement (the “Purchase Agreement”) with the purchasers of $8,000,000 principal amount of 10% Senior Secured Convertible Notes due August 15, 2018 (the “Notes”), at par, in a private placement transaction effected pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended. Pursuant to an amendment to the Notes and related documents effective February 18, 2018, the interest rate was reduced to 8%, the maturity date of the Notes was extended to August 15, 2019, and the optional conversion price was reduced from $8.50 of Note principal per share of common stock to $4.25 of Note principal per share of common stock. The conversion price is subject to adjustment upon certain events, such as stock splits, reverse stock splits, stock dividends and similar kinds of transactions, as set forth in the Purchase Agreement. Pursuant to a security agreement entered into by the Company, the Notes are secured by a security interest in all of the assets of the Company. The Notes originally had an interest rate of 10%, but from February 15, 2018, the annual rate of interest is 8%. Accrued interest is payable semi-annually in cash or in kind through the issuance of identical new Notes, or with a combination of the two, at the Company’s option. The Notes are noncallable and nonredeemable by the Company. The Notes are redeemable at the election of the holders if the Company experiences a fundamental change (as defined in the Notes), which generally would occur in the event (i) any person acquires beneficial ownership of shares of common stock of the Company entitling such person to exercise at least 40% of the total voting power of all of the shares of capital stock of the Company entitled to vote generally in elections of directors, (ii) an acquisition of the Company by another person through a merger or consolidation, or the sale, transfer or lease of all or substantially all of the Company’s assets, or (iii) the Company’s current directors cease to constitute a majority of the board of directors of the Company within a 12-month period, disregarding for this purpose any director who voluntarily resigns as a director or dies while serving as a director. Pursuant to the amendment to the Notes, the redemption price was reduced from 120% to 100% of the principal amount of the Note to be repurchased plus accrued and unpaid interest as of the redemption date. No holder of a Note is entitled to convert such Note if effective upon the applicable conversion date (i) the holder would have beneficial ownership of more than 9.9% of the voting capital stock of the Company as determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended, (with exceptions specified in the Purchase Agreement), or (ii) if the shares are being acquired or held with a purpose or effect of changing or influencing control of the Company, or in connection with or as a participant in any transaction having that purpose or effect, as determined in the sole discretion of the board of directors of the Company. There is no required sinking fund for the Notes. The Notes have not been registered for resale, and the holder(s) do not have registration rights. The Notes restrict the ability of the Company to incur any indebtedness for borrowed money, unless such indebtedness by its terms is expressly subordinated to the Notes in right of payment and to the security interest of the Note holder(s) in respect to the priority and enforcement of any security interest in property of the Company securing such new debt; provided that the Note holder(s) security interest and cash payment rights under the Notes shall be subordinate to a maximum of $5,000,000 of indebtedness for a secured accounts receivable line of credit facility provided to the Company by a bank or institutional lender; and, provided further, that in no event may the amount of indebtedness to which the security interest of the Note holder(s) is subordinated exceed the outstanding balance of accounts receivable less than 90 days old for which the Company has not recorded an allowance for doubtful accounts pledged under such credit facility. The Notes define an event of default generally as any failure by the Company to pay an amount owed under the Notes when due (subject to cure periods), a default with respect to other indebtedness of the Company resulting in acceleration of such indebtedness, the commencement of bankruptcy or insolvency proceedings, or the cessation of business. If an event of default occurs under the Notes, the holder(s) of a majority-in-interest of the outstanding principal amount of the Notes may declare the outstanding principal amount thereof to be immediately due and payable and pursue all available remedies, including taking possession of the assets of the Company and selling them to pay the amount of debt then due, plus expenses, in accordance with applicable laws and procedures. The Company incurred debt issuance costs of approximately $0.1 million, which were recorded as a debt discount and are being amortized to interest expense over the repayment period for the original loan using the effective interest rate method. The interest expense related to the debt discount during the three and six months ended June 30, 2018 was approximately $12,000 and $24,000, respectively, and during the three and six months ended June 30, 2017 was approximately $11,000 and $22,000, respectively. Semi-annual interest payments have been made in each of August 2016, February 2017, August 2017 and February 2018, for approximately $336,000, $420,000, $434,000 and $463,000, respectively, in-kind with the issue of additional notes (Interest Notes) to the Purchasers. The Interest Notes have terms identical to the Notes. As of June 30, 2018, the Notes and Interest Notes could be converted into a maximum of 2,271,338 shares of common stock at $4.25 per share, excluding the effects of future payments of interest in-kind and a beneficial ownership ceiling of 9.9%. The outstanding convertible notes payable of $9.7 million (excluding unamortized discount of approximately $6,000 as of June 30, 2018) are due in August 2019.

Restructuring Charge

Restructuring Charge	6 Months Ended
	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
Restructuring Charge	Note 9. Restructuring Charges In the second quarter of 2017, the Company effected a reduction in its workforce and associated operating expenses, net loss and cash burn. The Company reduced headcount by approximately 60% with the majority of the reductions occurring at its U.S. headquarters facility. As a result of the restructuring, the Company recorded approximately $1.0 million of charges for severance benefits and future obligations under computer-aided design software licenses. In the third quarter of 2017, the Company closed its Japanese branch and Iowa locations and further reduced headcount resulting in additional expenses of approximately $50,000. In the fourth quarter of 2017, the Company terminated its existing headquarters facility lease and incurred lease termination expenses of approximately $270,000. Expenses related to the restructure are included in the restructuring charges line in the condensed consolidated statements of operations and the remaining liability is included in accrued expenses and other on the condensed consolidated balance sheets consisting of (in thousands): Facility related Contractual obligations and other termination costs Total Balance as of January 1, 2018 $ 89 $ 389 $ 478 Cash payments (89 ) (131 ) (220 ) Balance as of March 31, 2018 $ — $ 258 $ 258 Cash payments — (86 ) (86 ) Balance as of June 30, 2018 $ — $ 172 $ 172

The Company and Summary of Si15

The Company and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates.
Cash Equivalents and Investments	Cash Equivalents and Investments The Company invests its excess cash in money market accounts, certificates of deposit, commercial paper, corporate debt, government-sponsored enterprise bonds and municipal bonds and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company’s available-for-sale short-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive loss. Realized gains and losses and declines in the value judged to be other than temporary are included in the other income, net line item in the condensed consolidated statements of operations and comprehensive loss. The cost of securities sold is based on the specific identification method.
Fair Value Measurements	Fair Value Measurements The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1— Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2— Pricing is provided by third party sources of market information obtained through the Company’s investment advisors, rather than models. The Company does not adjust for, or apply, any additional assumptions or estimates to the pricing information it receives from advisors. The Company’s Level 2 securities may include cash equivalents and available-for-sale securities, which consist primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high-quality credit ratings. The Company’s investment advisors obtain pricing data from independent sources, such as Standard & Poor’s, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. Level 3— Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity.
Allowance for Doubtful Accounts	Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100% of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. There was no allowance for doubtful accounts receivable at either June 30, 2018 or December 31, 2017.
Inventories	Inventories The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. The Company records inventory reserves for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. Once a reserve is established, it is maintained until the product to which it relates is sold or otherwise disposed of. If actual market conditions are less favorable than those expected by management, additional adjustment to inventory valuation may be required. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow moving inventory items. The Company recorded no inventory write-downs during the three or six months ended June 30, 2018 or 2017.
Revenue Recognition	Critical Accounting Policy – Revenue Recognition The Company generates revenue primarily from sales of IC products and licensing of its IP. Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. IC products Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated, formula, list or fixed price. The Company its and generally under agreements with payment terms typically less than 60 days. The Company may record an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. Royalty and other The Company’s licensing contracts typically provide for royalties based on the licensee’s use of the Company’s memory technology in its currently shipping commercial products. With the adoption of ASC 606 in January 2018, the Company estimates its royalty revenue in the calendar quarter in which the licensee uses the licensed technology. Payments are generally received in the subsequent quarter. Contract liabilities – deferred revenue The Company’s contract liabilities consist of advance customer payments and deferred revenue. The Company classifies advance customer payments and deferred revenue as current or non-current based on the timing of when the Company expects to recognize revenue. For the six months ended June 30, 2018, contract liabilities were in a current position and included in deferred revenue. During the six months ended June 30, 2018, the Company recognized revenue of $2.6 million that had been included in deferred revenue at December 31, 2017. See Note 5 for disaggregation of revenue by geography.
Cost of Net Revenue	Cost of Net Revenue Cost of net revenue consists primarily of direct and indirect costs of IC product sales and engineering personnel costs directly related to maintenance and support services specified in licensing agreements. Maintenance and support typically include engineering support to assist in the commencement of production of a licensee’s products.
Goodwill	Goodwill In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-04, Simplifying the Test for Goodwill Impairment The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to determine the step one fair value, the price of its common stock is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit, which can lead to potential impairment in future periods. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than the carrying amount. If the qualitative assessment warrants further analysis, the Company compares the fair value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using the market approach. If the fair value of the reporting unit exceeds the carrying value of net assets of the reporting unit, goodwill is not impaired. If the carrying value of the reporting unit’s goodwill exceeds its fair value, then the Company must record an impairment charge equal to the difference. The Company performed its annual test for goodwill impairment as of September 1, 2017, and performed a subsequent test on June 30, 2018.
Per Share Amounts	Per Share Amounts Basic net income (loss) per share is computed by dividing net income (loss) for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options, vesting of stock awards and shares issuable in conjunction with the Company’s outstanding senior secured convertible notes. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net income (loss) $ 315 $ (3,994 ) $ 663 $ (8,399 ) Denominator: Add: weighted-average common shares outstanding 8,171 6,677 8,151 6,662 Total shares: basic 8,171 6,677 8,151 6,662 Add: weighted-average stock options outstanding 81 — 72 — Add: weighted-average unvested restricted stock units 157 — 155 — Total shares: diluted 8,409 6,677 8,378 6,662 Net income (loss) per share: Basic $ 0.04 $ (0.60 ) $ 0.08 $ (1.26 ) Diluted $ 0.04 $ (0.60 ) $ 0.08 $ (1.26 ) The following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Options outstanding to purchase common stock 144 336 144 659 Employee stock purchase plan — — — 35 Unvested restricted common stock units — 52 — 11 Convertible debt 2,271 973 2,271 889 Total 2,415 1,361 2,415 1,594
Debt Issuance Costs	Debt Issuance Costs Debt issuance costs are capitalized and amortized to interest expense using the effective interest method. Unamortized debt issuance costs are presented in the condensed consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability and accounted for as debt discounts.

The Company and Summary of Si16

The Company and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net income (loss) $ 315 $ (3,994 ) $ 663 $ (8,399 ) Denominator: Add: weighted-average common shares outstanding 8,171 6,677 8,151 6,662 Total shares: basic 8,171 6,677 8,151 6,662 Add: weighted-average stock options outstanding 81 — 72 — Add: weighted-average unvested restricted stock units 157 — 155 — Total shares: diluted 8,409 6,677 8,378 6,662 Net income (loss) per share: Basic $ 0.04 $ (0.60 ) $ 0.08 $ (1.26 ) Diluted $ 0.04 $ (0.60 ) $ 0.08 $ (1.26 )
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share	The following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): Three months ended Six months ended June 30, June 30, 2018 2017 2018 2017 Options outstanding to purchase common stock 144 336 144 659 Employee stock purchase plan — — — 35 Unvested restricted common stock units — 52 — 11 Convertible debt 2,271 973 2,271 889 Total 2,415 1,361 2,415 1,594

Fair Value of Financial Instr17

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of estimated fair values of financial instruments outstanding	The estimated fair values of financial instruments outstanding were (in thousands): June 30, 2018 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 3,595 $ — $ — $ 3,595 December 31, 2017 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 3,868 $ — $ — $ 3,868
Schedule of fair value hierarchy for financial assets (cash equivalents and investments)	The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) (in thousands): June 30, 2018 Fair Value Level 1 Level 2 Level 3 Money market funds $ 625 $ 625 $ — $ — December 31, 2017 Fair Value Level 1 Level 2 Level 3 Money market funds $ 621 $ 621 $ — $ —

Balance Sheet Detail (Tables)

Balance Sheet Detail (Tables)	6 Months Ended
	Jun. 30, 2018
Consolidated Balance Sheets And Statements Of Operations Components Disclosure [Abstract]
Schedule of inventory	June 30, December 31, 2018 2017 (in thousands) Inventories: Work-in-process $ 1,941 $ 1,612 Finished goods 353 154 $ 2,294 $ 1,766
Schedule of identifiable intangible assets	Identifiable intangible assets were (dollar amounts in thousands): June 30, 2018 Gross Net Life Carrying Accumulated Carrying (years) Amount Amortization Amount Patent license 7 $ 780 $ 724 $ 56 December 31, 2017 Gross Net Life Carrying Accumulated Carrying (years) Amount Amortization Amount Patent license 7 $ 780 $ 669 $ 111

Business Segments, Concentrat19

Business Segments, Concentration of Credit Risk and Significant Customers (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of revenue from shipment of product and licensing of its technologies to customers by geographical location	The Company recognized revenue from shipment of product and licensing of its technologies to customers by geographical location as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 North America $ 3,384 $ 961 $ 6,741 $ 1,783 Japan 1,128 200 1,842 371 Taiwan 73 171 156 340 Rest of world 13 52 67 102 Total net revenue $ 4,598 $ 1,384 $ 8,806 $ 2,596
Schedule of customers who accounted for at least 10% of total net revenue	Customers who accounted for at least 10% of total net revenue were: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Customer A 31% 37% 39% 46% Customer B 24% 14% 12% 14% Customer C 21% *% 22% *% Customer D *% 10% *% *% Customer E *% 10% *% 12% * Represents less than 10%

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of assumptions used in estimation of fair value of the share-based payment awards on the grant date	Six Months Ended June 30, 2018 2017 Risk-free interest rate 2.2 % 1.6 % Volatility 109.5 % 70.2 % Expected life (years) 4.0 4.0 Dividend yield — % — %
Summary of option and RSU activity under Amended and Restated 2000 Stock Option and Equity Incentive Plan and Amended and Restated 2010 Equity Incentive Plan	A summary of option and RSU activity under the Company’s Amended and Restated 2010 Equity Incentive Plan (the Plan) is presented below (in thousands, except exercise price): Awards outstanding Weighted Shares Average Available Number of Exercise for Grant Shares Prices Balance at January 1, 2018 231 307 $ 4.81 Additional shares authorized under the Plan 50 — — RSUs granted (60 ) — — RSUs cancelled and returned to the Plan 1 — — Options granted (40 ) 40 $ 1.28 Options cancelled and returned to the Plan 2 (2 ) $ 23.47 Balance at March 31, 2018 184 345 $ 4.30 Options cancelled and returned to the Plan 1 (1 ) $ 9.40 Balance at June 30, 2018 185 344 $ 4.27
Summary of RSU activity under the Plans	A summary of RSU activity under the Plan is presented below (in thousands, except for fair value): Weighted Average Number of Grant-Date Shares Fair Value Non-vested shares at January 1, 2018 376 $ 1.58 Granted 60 $ 1.16 Vested (133 ) $ 2.11 Cancelled (1 ) $ 0.94 Non-vested shares at June 30, 2018 302 $ 1.27
Summary of significant ranges of outstanding and exercisable options	The following table summarizes significant ranges of outstanding and exercisable options as of June 30, 2018 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Average Average Aggregate Number Life Exercise Number Exercise Intrinsic Range of Exercise Price Outstanding (in Years) Price Exercisable Price value $0.75 - $1.27 160 5.30 $ 0.75 — $ — $ 160 $1.28 - $7.19 51 6.07 $ 2.10 7 $ 5.17 $ 19 $7.20 - $20.49 112 8.01 $ 7.20 70 $ 7.20 $ — $20.50 - $43.59 19 6.55 $ 20.50 16 $ 20.50 $ — $44.60 - $46.19 1 4.93 $ 44.60 1 $ 44.60 $ — $46.20 - $46.20 1 5.64 $ 46.20 1 $ 46.20 $ — $0.75 - $46.20 344 6.37 $ 4.27 95 $ 9.68 $ 179 Vested and expected to vest 322 6.42 $ 4.45 162 Exercisable 94 7.68 $ 9.68 —

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
Summary of restructuring charges	Expenses related to the restructure are included in the restructuring charges line in the condensed consolidated statements of operations and the remaining liability is included in accrued expenses and other on the condensed consolidated balance sheets consisting of (in thousands): Facility related Contractual obligations and other termination costs Total Balance as of January 1, 2018 $ 89 $ 389 $ 478 Cash payments (89 ) (131 ) (220 ) Balance as of March 31, 2018 $ — $ 258 $ 258 Cash payments — (86 ) (86 ) Balance as of June 30, 2018 $ — $ 172 $ 172

The Company and Summary of Si22

The Company and Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Gigabit / s	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Accounting Policies [Abstract]
Speed per second of high-speed interface technology of Bandwidth Engine ICs (in giga per second) | Gigabit / s			10
Maximum specific allowance as percentage of invoice value for problematic customer balances	100.00%		100.00%
Allowance for doubtful accounts receivable	$ 0		$ 0		$ 0
Inventory reserves	$ 0	$ 0	$ 0	$ 0
Payment terms			The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically less than 60 days
Deferred revenue, revenue recognized			$ 2,600
Impairment of goodwill			$ 0

The Company and Summary of Si23

The Company and Summary of Significant Accounting Policies - Summary of Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income (loss)	$ 315	$ (3,994)	$ 663	$ (8,399)
Shares used in computing net income (loss) per share
Basic	8,171	6,677	8,151	6,662
Total shares: basic	8,171	6,677	8,151	6,662
Total shares: diluted	8,409	6,677	8,378	6,662
Net income (loss) per share:
Basic	$ 0.04	$ (0.60)	$ 0.08	$ (1.26)
Diluted	$ 0.04	$ (0.60)	$ 0.08	$ (1.26)
Stock Option [Member]
Shares used in computing net income (loss) per share
Add: weighted-average stock options outstanding	81		72
Unvested Restricted Stock Units [Member]
Shares used in computing net income (loss) per share
Add: weighted-average stock options outstanding	157		155

The Company and Summary of Si24

The Company and Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income (loss) per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,415	1,361	2,415	1,594
Options
Net income (loss) per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	144	336	144	659
Employee stock purchase plan
Net income (loss) per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				35
RSU's
Net income (loss) per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		52		11
Convertible debt
Net income (loss) per share
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,271	973	2,271	889

Fair Value of Financial Instr25

Fair Value of Financial Instruments - Schedule of Estimated Fair Values of Financial Instruments Outstanding (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Cash and cash equivalents, cost	$ 3,595	$ 3,868	$ 2,743	$ 8,766
Cash and cash equivalents, fair value	$ 3,595	$ 3,868

Fair Value of Financial Instr26

Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy for Financial Assets (Cash Equivalents and Investments) (Details) - Fair Value, Measurements, Recurring - Money market funds - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair value hierarchy for its financial assets
Available-for-sale Securities	$ 625	$ 621
Level 1
Fair value hierarchy for its financial assets
Available-for-sale Securities	$ 625	$ 621

Fair Value of Financial Instr27

Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Transfer of assets between Level 1 to Level 2	$ 0	$ 0
Transfer of assets between Level 2 to Level 1	0	0
Transfer of liabilities between Level 1 to Level 2	0	0
Transfer of liabilities between Level 2 to Level 1	$ 0	$ 0

Balance Sheet Detail - Schedule

Balance Sheet Detail - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventories:
Work-in-process	$ 1,941	$ 1,612
Finished goods	353	154
Total	$ 2,294	$ 1,766

Balance Sheet Detail - Schedu29

Balance Sheet Detail - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Intangible assets
Net Carrying Value	$ 56	$ 111
Patent license
Intangible assets
Life	7 years	7 years
Gross Carrying Amount	$ 780	$ 780
Accumulated Amortization	724	669
Net Carrying Value	$ 56	$ 111

Balance Sheet Detail - Addition

Balance Sheet Detail - Additional Information (Details) $ in Millions	Jun. 30, 2018USD ($)
Maximum
Estimated aggregate amortization expense to be recognized in future
2,018	$ 0.1

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)	3 Months Ended
	Jun. 30, 2018USD ($)
Commitments And Contingencies Disclosure [Abstract]
Commission expense	$ 250,000
Commission paid	$ 450,000

Business Segments, Concentrat32

Business Segments, Concentration of Credit Risk and Significant Customers - Additional Information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018SegmentCustomer	Dec. 31, 2017Customer
Business Segments
Number of business segments | Segment	1
Number of measurements of profitability	1
Net accounts receivable | One Customer | Credit concentration
Business Segments
Percentage of concentration risk	76.00%	63.00%
Number of customers | Customer	2	1

Business Segments, Concentrat33

Business Segments, Concentration of Credit Risk and Significant Customers - Schedule of Revenue from Shipment of Product and Licensing of its Technologies to Customers by Geographical Location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Segments
Total net revenue	$ 4,598	$ 1,384	$ 8,806	$ 2,596
North America
Business Segments
Total net revenue	3,384	961	6,741	1,783
Japan
Business Segments
Total net revenue	1,128	200	1,842	371
Taiwan
Business Segments
Total net revenue	73	171	156	340
Rest of world
Business Segments
Total net revenue	$ 13	$ 52	$ 67	$ 102

Business Segments, Concentrat34

Business Segments, Concentration of Credit Risk and Significant Customers - Schedule of Customers Who Accounted for at Least 10% of Total Net Revenue (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Customer A
Significant Customers
Percentage of concentration risk	31.00%	37.00%	39.00%	46.00%
Customer B
Significant Customers
Percentage of concentration risk	24.00%	14.00%	12.00%	14.00%
Customer C
Significant Customers
Percentage of concentration risk	21.00%		22.00%
Customer D
Significant Customers
Percentage of concentration risk		10.00%
Customer E
Significant Customers
Percentage of concentration risk		10.00%		12.00%

Income Tax Provision - Addition

Income Tax Provision - Additional Information (Details)	Jun. 30, 2018USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits recorded as liability	$ 0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options granted (in shares)	0	0
Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unamortized compensation cost, net of expected forfeitures	$ 800,000		$ 800,000
Weighted average expected period over which the expense is to be recognized			2 years
Tax benefits associated with exercise of stock options	0	$ 0
Dividend yield (as a percent)			0.00%
Stock options exercised			0	0
Intrinsic value of outstanding stock options	0.2		$ 0.2
RSU's
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unamortized compensation cost, net of expected forfeitures	300,000		$ 300,000
Weighted average expected period over which the expense is to be recognized			7 months 6 days
Cash paid for employee income tax related to settlement of RSUs			$ 38,000
RSU's | Equity Incentive Plan2010 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total intrinsic value of the restricted stock units outstanding	$ 500,000		$ 500,000
RSU's | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense, recognition period			3 years
RSU's | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense, recognition period			5 years

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Assumptions Used in Estimation of Fair Value of the Share-based Payment Awards on the Grant Date (Details) - Options	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate	2.20%	1.60%
Volatility	109.50%	70.20%
Expected life (years)	4 years	4 years
Dividend yield	0.00%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Option and RSU Activity (Details) - Equity Incentive Plan2010 [Member] - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Jun. 30, 2018
Shares Available for Grant
Balance at the beginning of the year (in shares)	231,000	231,000
Options granted (in shares)	(40,000)
Options cancelled and returned to Plan (in shares)	2,000	1,000
Balance at the end of the period (in shares)	184,000	185,000
Options cancelled and returned to Plan (in shares)		1,000
Number of Shares
Balance at the beginning of the year (in shares)	307,000	307,000
Options granted (in shares)	40,000
Options cancelled and returned to Plan (in shares)	(2,000)	(1,000)
Balance at the end of the period (in shares)	345,000	344,000
Weighted Average Exercise Prices
Weighted-average exercise price (in dollars per share)	$ 4.81	$ 4.81
Options granted (in dollars per share)	1.28
Options cancelled and returned to Plan (in dollars per share)	23.47	9.40
Weighted-average exercise price (in dollars per share)	$ 4.30	$ 4.27
Options
Shares Available for Grant
Additional shares authorized	50,000
RSU's
Shares Available for Grant
RSUs granted (in shares)	(60,000)	(60,000)
RSUs cancelled and returned to Plan (in shares)	1,000	1,000
Number of Shares
RSUs cancelled and returned to Plan (in shares)	(1,000)	(1,000)
Weighted Average Exercise Prices
RSUs granted (in dollars per share)		$ 1.16
RSUs cancelled and returned to Plan (in dollars per shares)		$ 0.94

Stock-Based Compensation - Su39

Stock-Based Compensation - Summary of RSU Activity Under Plans (Details) - Equity Incentive Plan2010 [Member] - RSU's - $ / shares	3 Months Ended	6 Months Ended
	Mar. 31, 2018	Jun. 30, 2018
Number of Shares
Non-vested shares at the beginning of the year	376,000	376,000
Granted (in shares)	60,000	60,000
Vested (in shares)		(133,000)
Cancelled (in shares)	(1,000)	(1,000)
Non-vested shares at the end of the period		302,000
Weighted Average Grant-Date Fair Value
Weighted average grant date fair value	$ 1.58	$ 1.58
Granted (in dollars per share)		1.16
Vested (in dollars per share)		2.11
RSUs cancelled and returned to Plan (in dollars per shares)		0.94
Weighted average grant date fair value		$ 1.27

Stock-Based Compensation - Su40

Stock-Based Compensation - Summary of Significant Ranges of Outstanding and Exercisable Options (Details) - Options $ / shares in Units, shares in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Options Outstanding
Vested and expected to vest, Number Outstanding | shares	322
Exercisable, Number Outstanding | shares	94
Vested and expected to vest, Weighted Average Remaining Contractual Life (in Years)	6 years 5 months 1 day
Exercisable, Weighted Average Remaining Contractual Life	7 years 8 months 4 days
Vested and expected to vest, Weighted Average Exercise Price	$ 4.45
Exercisable, Weighted Average Exercise Price	$ 9.68
Aggregate Intrinsic Value [Abstract]
Options Outstanding, Aggregate Intrinsic Value | $	$ 0.2
Vested and expected to vest, Aggregate Intrinsic Value | $	$ 162,000
$0.75 - $1.27
Exercise price range
Lower range limit (in dollars per share)	$ 0.75
Upper range limit (in dollars per share)	$ 1.27
Options Outstanding
Number Outstanding (in shares) | shares	160
Weighted Average Remaining Contractual Life	5 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 0.75
Aggregate Intrinsic Value [Abstract]
Options Outstanding, Aggregate Intrinsic Value | $	$ 160,000
$1.28 - $7.19
Exercise price range
Lower range limit (in dollars per share)	$ 1.28
Upper range limit (in dollars per share)	$ 7.19
Options Outstanding
Number Outstanding (in shares) | shares	51
Weighted Average Remaining Contractual Life	6 years 25 days
Weighted Average Exercise Price (in dollars per share)	$ 2.10
Options Exercisable
Number Exercisable (in shares) | shares | shares	7
Weighted Average Exercise Price (in dollars per share)	$ 5.17
Aggregate Intrinsic Value [Abstract]
Options Outstanding, Aggregate Intrinsic Value | $	$ 19,000
$7.20 - $20.49
Exercise price range
Lower range limit (in dollars per share)	$ 7.20
Upper range limit (in dollars per share)	$ 20.49
Options Outstanding
Number Outstanding (in shares) | shares	112
Weighted Average Remaining Contractual Life	8 years 3 days
Weighted Average Exercise Price (in dollars per share)	$ 7.20
Options Exercisable
Number Exercisable (in shares) | shares | shares	70
Weighted Average Exercise Price (in dollars per share)	$ 7.20
$20.50 - $43.59
Exercise price range
Lower range limit (in dollars per share)	20.50
Upper range limit (in dollars per share)	$ 43.59
Options Outstanding
Number Outstanding (in shares) | shares	19
Weighted Average Remaining Contractual Life	6 years 6 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 20.50
Options Exercisable
Number Exercisable (in shares) | shares | shares	16
Weighted Average Exercise Price (in dollars per share)	$ 20.50
$44.60 - $46.19
Exercise price range
Lower range limit (in dollars per share)	44.60
Upper range limit (in dollars per share)	$ 46.19
Options Outstanding
Number Outstanding (in shares) | shares	1
Weighted Average Remaining Contractual Life	4 years 11 months 4 days
Weighted Average Exercise Price (in dollars per share)	$ 44.60
Options Exercisable
Number Exercisable (in shares) | shares | shares	1
Weighted Average Exercise Price (in dollars per share)	$ 44.60
$46.20 - $46.20
Exercise price range
Lower range limit (in dollars per share)	46.20
Upper range limit (in dollars per share)	$ 46.20
Options Outstanding
Number Outstanding (in shares) | shares	1
Weighted Average Remaining Contractual Life	5 years 7 months 20 days
Weighted Average Exercise Price (in dollars per share)	$ 46.20
Options Exercisable
Number Exercisable (in shares) | shares | shares	1
Weighted Average Exercise Price (in dollars per share)	$ 46.20
$0.75 - $46.20
Exercise price range
Lower range limit (in dollars per share)	0.75
Upper range limit (in dollars per share)	$ 46.20
Options Outstanding
Number Outstanding (in shares) | shares	344
Weighted Average Remaining Contractual Life	6 years 4 months 13 days
Weighted Average Exercise Price (in dollars per share)	$ 4.27
Options Exercisable
Number Exercisable (in shares) | shares | shares	95
Weighted Average Exercise Price (in dollars per share)	$ 9.68
Aggregate Intrinsic Value [Abstract]
Options Outstanding, Aggregate Intrinsic Value | $	$ 179,000

Convertible Notes - Additional

Convertible Notes - Additional Information (Details) - USD ($)	Feb. 18, 2018	Feb. 17, 2018	Mar. 14, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Feb. 28, 2018	Aug. 31, 2017	Jun. 30, 2017	Feb. 28, 2017	Aug. 31, 2016
Convertible Notes
Interest Expense				$ 206,000	$ 223,000	$ 427,000			$ 447,000
Senior Secured Convertible Notes due August 15 2018
Convertible Notes
Stated interest rate (as a percent)	8.00%		10.00%
Principal amount			$ 8,000,000	9,700,000		9,700,000
Conversion price (in dollars per share)	$ 4.25		$ 8.50
Redemption purchase price (as a percent)	100.00%	120.00%
Minimum ownership percentage triggering event for redemption of notes			40.00%
Maximum amount of indebtedness subordinated by security interest and cash payment rights under debt instruments			$ 5,000,000
Remaining unamortized debt discount				6,000		6,000
Senior Secured Convertible Notes due August 15 2018 | Contractual obligations and other termination costs
Convertible Notes
Debt issuance costs			$ 100,000
Interest Expense				$ 12,000	$ 11,000	$ 24,000			$ 22,000
Senior Secured Convertible Notes due August 15 2018 | Maximum
Convertible Notes
Period for outstanding balance of accounts receivable has not recorded an allowance for doubtful accounts (in days)			90 days
Senior Secured Convertible Notes due August 15 2018 | Minimum
Convertible Notes
Percentage of beneficial ownership if effective upon conversion date of debt instrument			9.90%
Interest Note
Convertible Notes
Conversion price (in dollars per share)				$ 4.25		$ 4.25
Number of shares issuable if notes converted to shares of common stock						2,271,338
Semi-annual interest payments							$ 463,000	$ 434,000		$ 420,000	$ 336,000

Restructuring - Additional Info

Restructuring - Additional Information (Details) - USD ($)	3 Months Ended			6 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Jun. 30, 2018
Restructuring And Related Activities [Abstract]
Reduction in workforce, as a percent			60.00%
Restructuring expense		$ 50,000		$ 1,000,000
Termination fee	$ 270,000

Restructuring - Summary of Rest

Restructuring - Summary of Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2018	Mar. 31, 2018
Restructuring charges
Balance at the beginning of the period	$ 258	$ 478
Cash payments	(86)	(220)
Balance at the end of the period	172	258
Facility related
Restructuring charges
Balance at the beginning of the period		89
Cash payments		(89)
Contractual obligations and other termination costs
Restructuring charges
Balance at the beginning of the period	258	389
Cash payments	(86)	(131)
Balance at the end of the period	$ 172	$ 258