Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 02, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PI | ||
Entity Registrant Name | IMPINJ, INC. | ||
Entity Central Index Key | 0001114995 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding | 27,197,698 | ||
Entity Public Float | $ 2.1 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-37824 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-2041398 | ||
Entity Address, Address Line One | 400 Fairview Avenue North | ||
Entity Address, Address Line Two | Suite 1200 | ||
Entity Address, City or Town | Seattle | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98109 | ||
City Area Code | 206 | ||
Local Phone Number | 517-5300 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Seattle, Washington | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE The information required by Part III of this report, to the extent not set forth herein, is incorporated in this report by reference to the registrant’s definitive proxy statement relating to its 2024 annual meeting of stockholders. The definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrant’s fiscal year ended December 31, 2023 . |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 94,793 | $ 19,597 |
Short-term investments | 18,440 | 154,148 |
Accounts receivable, net of allowances of $827 and $755 at December 31, 2023 and 2022, respectively | 54,919 | 49,996 |
Inventory | 97,172 | 46,397 |
Prepaid expenses and other current assets | 4,372 | 5,032 |
Total current assets | 269,696 | 275,170 |
Long-term investments | 19,200 | |
Property and equipment, net | 44,891 | 39,027 |
Intangible assets, net | 13,913 | |
Operating lease right-of-use assets | 9,735 | 10,490 |
Other non-current assets | 1,478 | 1,969 |
Goodwill | 19,696 | 3,881 |
Total assets | 359,409 | 349,737 |
Current liabilities: | ||
Accounts payable | 8,661 | 25,024 |
Accrued compensation and employee related benefits | 8,519 | 9,048 |
Accrued and other current liabilities | 8,614 | 2,925 |
Current portion of operating lease liabilities | 3,373 | 3,122 |
Current portion of deferred revenue | 1,713 | 2,250 |
Total current liabilities | 30,880 | 42,369 |
Long-term debt | 281,855 | 280,244 |
Operating lease liabilities, net of current portion | 9,360 | 11,066 |
Deferred tax liabilities, net | 2,911 | 118 |
Deferred revenue, net of current portion | 272 | 349 |
Total liabilities | 325,278 | 334,146 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value - 5,000 shares authorized, no shares issued and outstanding at December 31, 2023 and 2022 | ||
Common stock, $0.001 par value - 495,000 shares authorized, 27,166 and 26,098 shares issued and outstanding at December 31, 2023 and 2022, respectively | 27 | 26 |
Additional paid-in capital | 463,900 | 403,599 |
Accumulated other comprehensive income (loss) | 355 | (1,249) |
Accumulated deficit | (430,151) | (386,785) |
Total stockholders' equity | 34,131 | 15,591 |
Total liabilities and stockholders' equity | $ 359,409 | $ 349,737 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 827 | $ 755 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 495,000,000 | 495,000,000 |
Common stock, shares issued | 27,166,000 | 26,098,000 |
Common stock, shares outstanding | 27,166,000 | 26,098,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 307,539,000 | $ 257,800,000 | $ 190,283,000 |
Cost of revenue | 155,557,000 | 119,916,000 | 91,329,000 |
Gross profit | 151,982,000 | 137,884,000 | 98,954,000 |
Operating expenses: | |||
Research and development | 88,562,000 | 74,106,000 | 64,058,000 |
Sales and marketing | 41,123,000 | 37,894,000 | 34,287,000 |
General and administrative | 60,828,000 | 45,465,000 | 36,137,000 |
Amortization of intangible assets | 4,953,000 | 0 | |
Restructuring costs | (102,000) | 1,721,000 | |
Total operating expenses | 195,466,000 | 157,363,000 | 136,203,000 |
Loss from operations | (43,484,000) | (19,479,000) | (37,249,000) |
Other income, net | 4,644,000 | 2,517,000 | 25,000 |
Induced conversion expense | (2,232,000) | (11,333,000) | |
Interest expense | (4,848,000) | (4,923,000) | (2,550,000) |
Loss before income taxes | (43,688,000) | (24,117,000) | (51,107,000) |
Income tax benefit (expense) | 322,000 | (184,000) | (153,000) |
Net loss | $ (43,366,000) | $ (24,301,000) | $ (51,260,000) |
Net loss per share basic | $ (1.62) | $ (0.95) | $ (2.12) |
Net loss per share diluted | $ (1.62) | $ (0.95) | $ (2.12) |
Weighted-average shares outstanding basic | 26,752 | 25,539 | 24,176 |
Weighted-average shares outstanding diluted | 26,752 | 25,539 | 24,176 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (43,366) | $ (24,301) | $ (51,260) |
Other comprehensive income (loss), net of tax: | |||
Unrealized loss on investments | 1,198 | (1,210) | (42) |
Foreign currency translation adjustment | 406 | ||
Total other comprehensive income (loss) | 1,604 | (1,210) | (42) |
Comprehensive loss | $ (41,762) | $ (25,511) | $ (51,302) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative-effect Adjustment from Adoption of ASU 2020-06 | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Cumulative-effect Adjustment from Adoption of ASU 2020-06 | Accumulated Deficit | Accumulated Deficit Cumulative-effect Adjustment from Adoption of ASU 2020-06 | Accumulated Other Comprehensive Income (loss) |
Beginning balance at Dec. 31, 2020 | $ 109,119 | $ (29,301) | $ 23 | $ 423,759 | $ (32,743) | $ (314,666) | $ 3,442 | $ 3 |
Beginning balance, shares at Dec. 31, 2020 | 23,350 | |||||||
Issuance of common stock | 17,648 | $ 2 | 17,646 | |||||
Issuance of common stock, shares | 1,387 | |||||||
Stock-based compensation | 40,498 | 40,498 | ||||||
Induced conversion on 2019 Notes (Note 8) | (97,738) | (97,738) | ||||||
Net loss | (51,260) | (51,260) | ||||||
Other comprehensive loss | (42) | (42) | ||||||
Ending balance at Dec. 31, 2021 | (11,076) | $ 25 | 351,422 | (362,484) | (39) | |||
Ending balance, shares at Dec. 31, 2021 | 24,737 | |||||||
Issuance of common stock | 15,416 | $ 1 | 15,415 | |||||
Issuance of common stock, shares | 1,361 | |||||||
Stock-based compensation | 42,443 | 42,443 | ||||||
Induced conversion on 2019 Notes (Note 8) | (5,681) | (5,681) | ||||||
Net loss | (24,301) | (24,301) | ||||||
Other comprehensive loss | (1,210) | (1,210) | ||||||
Ending balance at Dec. 31, 2022 | 15,591 | $ 26 | 403,599 | (386,785) | (1,249) | |||
Ending balance, shares at Dec. 31, 2022 | 26,098 | |||||||
Issuance of common stock | 8,737 | $ 1 | 8,736 | |||||
Issuance of common stock, shares | 1,041 | |||||||
Stock-based compensation | 47,986 | 47,986 | ||||||
Net loss | (43,366) | (43,366) | ||||||
Equity issuance for Voyantic acquisition | 3,579 | 3,579 | ||||||
Equity issuance for Voyantic acquisition, shares | 27 | |||||||
Other comprehensive loss | 1,604 | 1,604 | ||||||
Ending balance at Dec. 31, 2023 | $ 34,131 | $ 27 | $ 463,900 | $ (430,151) | $ 355 | |||
Ending balance, shares at Dec. 31, 2023 | 27,166 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | |||
Net loss | $ (43,366) | $ (24,301) | $ (51,260) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 13,623 | 6,044 | 4,602 |
Stock-based compensation | 47,986 | 42,443 | 40,498 |
Accretion of discount or amortization of premium on investments | (1,637) | (233) | 896 |
Amortization of debt issuance costs | 1,611 | 1,601 | 568 |
Loss on fixed asset disposal | 57 | ||
Induced conversion expense related to convertible notes | 2,232 | 11,333 | |
Settlement and related costs | (460) | ||
Deferred tax expense | (931) | 6 | 8 |
Revaluation of acquisition-related contingent consideration liability | 1,570 | ||
Changes in operating assets and liabilities, net of amounts acquired: | |||
Accounts receivable | (3,713) | (14,547) | (10,446) |
Inventory | (49,577) | (24,439) | 14,371 |
Prepaid expenses and other assets | 1,625 | 852 | (770) |
Accounts payable | (12,303) | 7,371 | 2,340 |
Accrued compensation and employee related benefits | (1,119) | 2,683 | 836 |
Accrued and other liabilities | (591) | (215) | 987 |
Operating lease right-of-use assets | 2,607 | 3,414 | 2,792 |
Operating lease liabilities | (3,308) | (4,126) | (3,528) |
Deferred revenue | (1,859) | 1,805 | (6,294) |
Net cash provided by (used in) operating activities | (49,382) | 641 | 6,465 |
Investing activities: | |||
Purchases of investments | (205,749) | (84,412) | |
Proceeds from sales of investments | 13,372 | ||
Proceeds from maturities of investments | 144,401 | 114,750 | 82,000 |
Proceeds from sale of property and equipment | 234 | 279 | |
Purchases of intangible assets | (250) | ||
Purchases of property and equipment | (18,592) | (12,079) | (16,230) |
Business acquisitions, net of cash acquired | (23,357) | ||
Net cash provided by (used in) investing activities | 115,808 | (102,799) | (18,642) |
Financing activities: | |||
Principal payments on finance lease obligations | (2) | ||
Proceeds from exercise of stock options and employee stock purchase plan | 8,736 | 15,416 | 17,648 |
Net cash provided by (used in) financing activities | 8,736 | (2,148) | 112,444 |
Effect of exchange rate changes on cash and cash equivalents | 34 | ||
Net increase (decrease) in cash and cash equivalents | 75,196 | (104,306) | 100,267 |
Cash and cash equivalents | |||
Beginning of period | 19,597 | 123,903 | 23,636 |
End of period | 94,793 | 19,597 | 123,903 |
Supplemental disclosure of cashflow information: | |||
Cash paid for interest | 3,234 | 3,420 | 1,559 |
Purchases of property and equipment not yet paid | 1,417 | 6,245 | 417 |
Operating lease liabilities arising from obtaining ROU assets | 979 | ||
Lease liabilities arising from remeasurement of ROU assets | 159 | ||
26,396 shares of common stock issued for Voyantic Oy acquisition | 3,579 | ||
Acquisition-related contingent consideration liability | 6,172 | ||
Disposal of fully depreciated property and equipment | $ 3,855 | 199 | 4,467 |
2019 Notes | |||
Financing activities: | |||
Payment of 2019 Notes | $ (17,564) | (183,624) | |
2021 Notes | |||
Financing activities: | |||
Proceeds from issuance of 2021 Notes, net of issuance costs | $ 278,422 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2023 shares |
Common stock, shares issued | 27,166,000 |
Voyantic Oy | |
Common stock, shares issued | 26,396 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (43,366) | $ (24,301) | $ (51,260) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During our last fiscal quarter, no director or officer, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” each as defined in Item 408 of Regulation S-K, except as follows: Name and Title Character of Trading Arrangement (1) Date Adopted Date Terminated Duration (2) Aggregate Number of Shares of Common Stock to be Purchased or Sold Pursuant to Trading Arrangement Chris Diorio , Chief Executive Officer and Vice Chair Rule 10b5-1 Trading Arrangement November 6, 2023 - August 14, 2024 Up to 20,000 Jeff Dossett , ' Chief Revenue Officer Rule 10b5-1 Trading Arrangement October 28, 2022 October 27, 2023 February 9, 2024 Up to 45,500 Rule 10b5-1 Trading Arrangement December 13, 2023 - September 16, 2024 Up to 12,000 Hussein Mecklai , ' Chief Operating Officer Rule 10b5-1 Trading Arrangement March 9, 2023 October 27, 2023 June 5, 2024 Up to 30,319 (1) Except as indicated by footnote, each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the “Rule”). (2) Except as indicated by footnote, each trading arrangement permits transactions through and including the earlier of (a) the execution or expiration of all trades specified under the trading arrangement or (b) the date listed in the table. Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule. |
Rule 10b5-1 Trading Plan | Chris Diorio | |
Trading Arrangements, by Individual | |
Name | Chris Diorio |
Title | Chief Executive Officer and Vice Chair |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | November 6, 2023 |
Aggregate Available | 20,000 |
Trd Arr Expiration Date | August 14, 2024 |
Rule 10b5-1 Trading Plan | Jeff Dossett One | |
Trading Arrangements, by Individual | |
Name | Jeff Dossett |
Title | Chief Revenue Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | October 28, 2022 |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | October 27, 2023 |
Aggregate Available | 45,500 |
Trd Arr Expiration Date | February 9, 2024 |
Rule 10b5-1 Trading Plan | Jeff Dossett Two | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | December 13, 2023 |
Aggregate Available | 12,000 |
Trd Arr Expiration Date | September 16, 2024 |
Rule 10b5-1 Trading Plan | Hussein Mecklai | |
Trading Arrangements, by Individual | |
Name | Hussein Mecklai |
Title | Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 9, 2023 |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | October 27, 2023 |
Aggregate Available | 30,319 |
Trd Arr Expiration Date | June 5, 2024 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1. Description of Business Impinj, Inc., a Delaware corporation, is headquartered in Seattle, Washington. The Impinj platform wirelessly connects items and delivers data about the connected items to business and consumer applications. Impinj generates revenue from enterprise solutions that use our platform's constituent elements — endpoint ICs, reader ICs, readers, gateways, and test and measurement solutions — as well as from development, service and license agreements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP. All numbers in the consolidated financial statements are rounded to the nearest thousand, except for per share data, and numbers in the notes to the consolidated financial statements are rounded to the nearest million. Use of Estimates Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. We evaluate our estimates on an ongoing basis, including those related to revenue recognition, sales incentives, the fair value of asset acquired, liabilities assumed, contingent consideration in business combinations, inventory excess and obsolescence, income taxes and fair value of stock awards. To the extent there are material differences between our estimates, judgments or assumptions and actual results, our financial statements will be affected. Concentrations of Credit Risk Financial instruments, which potentially subject us to credit-risk concentration, comprise primarily cash equivalents, investments and accounts receivable. We place our cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, to limit our investment exposure. We extend credit to customers based on our evaluation of the customer’s financial condition and generally do not require collateral. The following tables present total revenue and accounts receivable concentration for the indicated periods as of the dates presented: Year Ended December 31, 2023 2022 2021 Revenue: Avery Dennison 33 % 28 % 32 % Arizon 11 10 11 44 % 38 % 43 % As of December 31, 2023 2022 Accounts Receivable: Avery Dennison 39 % 24 % Arizon 11 13 50 % 37 % Concentration of Supplier Risk We outsource the manufacturing and production of our hardware products to a small number of suppliers. We believe other suppliers could provide similar products on comparable terms if needed. However, a supplier change could delay manufacturing and cause a sales loss, which would adversely affect our operating results. Cash and Cash Equivalents Cash includes demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present minimal risk of changes in value with changes in interest rates. Our cash equivalents are solely investments with an original or remaining maturity of three months or less at the date of purchase. We regularly maintain cash amounts exceeding federally insured limits at financial institutions. Investments Our investments comprise fixed income securities, including U.S. government securities, corporate notes and bonds, commercial paper and asset-backed securities. The contractual maturities of some of our available-for-sale, or AFS, debt securities exceed a year and are classified as long-term investments on our balance sheet. We carry AFS debt securities at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss). Our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in fair value of an investment below the cost basis is determined to be other-than-temporary. Factors we consider in determining whether a loss is temporary include the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, our intent to sell the security and whether or not we will be required to sell the security prior to the expected recovery of the investment's amortized cost basis. No such impairment changes were recorded during the years ended December 31, 2023, 2022 and 2021. See Note 3 t ables for the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of December 31, 2023 and 2022. Fair Value Measurement Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which are internally developed, and considers risk premiums that a market participant would require. We do no t have any financial assets or liabilities in Level 3 as of December 31, 2022 or at December 31, 2023, except for the liability for the earnout consideration related to the Voyantic Oy acquisition. We have classified this liability as such because we determined the fair value using significant unobservable inputs. See Note 3: Fair Value Measurements and Note 6: Goodwill and Intangible Assets. We applied the following methods and assumptions in estimating our fair value measurements: Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets. Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Long-term Debt —See Note 8 for the carrying amount and estimated fair value of the Notes. Accounts Receivable and Allowances Accounts receivable comprises amounts billed and currently due from customers, net of allowances for doubtful accounts, sales returns and price exceptions. The allowance for doubtful accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. We record changes in our estimate of the allowance for doubtful accounts through bad debt expense and write off the receivable and corresponding allowance when accounts are ultimately determined to be uncollectible. We include bad debt expense in general and administrative expenses. For the periods presented in this report, bad debt expense and the allowance for doubtful accounts were not material. We derive most of our accounts receivable from sales to original equipment manufacturers, or OEMs, original design manufacturers, ODMs, solution providers, and distributors who are large, well-established companies. We do not have customers that represent a significant credit risk based on current economic conditions and past collection experience. Also, we have not had material past-due balances on our accounts receivable as of December 31, 2023 or 2022. The allowance for sales returns and price exceptions is our best estimate based on our historical experience and currently available evidence. We record changes in our estimate of the allowance for sales returns and price exceptions through revenue, and relieve the allowance when we receive product returns or process claims for price exceptions. The following table summarizes our allowance for sales returns (in thousands): Balance at Beginning of Year Additional Reserve Applied Sales Return Balance at End of Year Allowance for sales returns and price exceptions: During year ended December 31, 2023 $ 605 $ 2,912 $ ( 2,840 ) $ 677 During year ended December 31, 2022 947 1,899 ( 2,241 ) 605 During year ended December 31, 2021 406 2,780 ( 2,239 ) 947 Inventory We state inventories at the lower of cost or estimated net realizable value using the average costing method, which approximates a first-in, first-out method. Inventories comprise raw materials, work-in-process and finished goods. We continuously assess our inventory value and write down its value for estimated excess and obsolete inventory. This evaluation includes an analysis of inventory on hand, current and forecasted demand, product development plans and market conditions. If future demand or market conditions are less favorable than our projections, or our product development plans change from current expectations, then a write-down of excess or obsolete inventory may be required and is reflected in cost of goods sold in the period the updated information is known. Excess and obsolescence charges had an immaterial impact on our 2023 and 2022 gross margin. Sales of fully reserved inventory had a favorable net impact of 1.5 % on our 2021 gross margin. The 2021 favorable net impact was primarily from sales of fully reserved inventory, primarily endpoint ICs and readers included in the excess and obsolescence charge recorded in 2020. Because of industry-wide wafer shortages and reader supply constraints in 2021 and 2020, we sold a significant portion of the reserved endpoint ICs and gateways in the year ended December 31, 2021. Property and Equipment We record property and equipment at cost and depreciate it using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows: Category Useful Life Machinery and equipment 1 to 10 years Computer equipment and software 3 to 5 years Furniture and fixtures 3 to 7 years Equipment acquired under finance leases 3 to 7 years Leasehold improvements Shorter of remaining lease term or expected useful life We charge maintenance and repair costs to expense when incurred. We capitalize major improvements, which extend the useful life of the related asset. Upon disposal of a fixed asset, we record a gain or loss based on the differences between the proceeds received and the net book value of the disposed asset. Other Assets Other assets comprise primarily capitalized implementation costs from cloud computing arrangements and security deposits. We capitalize eligible costs associated with cloud computing arrangements over the term of the arrangement, plus reasonably certain renewals, and recognize those costs on a straight-line basis in the same line item in the consolidated statement of operations as the expense for fees associated with the cloud computing arrangement. Cloud computing arrangement costs, included in prepaid expenses and other current assets, were $ 0.4 million and $ 0.4 million , and other non-current assets were $ 1.4 million and $ 1.8 million , as of December 31, 2023 and 2022, respectively. Amortization expense associated with the cloud computing arrangements was $ 0.5 million for 2023, $ 0.4 million for 2022, and $ 0.2 million for 2021. We present cash flows related to capitalized implementation costs in cash flows used in operating activities. Business combinations and intangible assets including goodwill We account for business combinations using the acquisition method which involves allocating the purchase price paid to assets acquired and liabilities assumed at their acquisition-date fair values. The excess of the fair value of purchase consideration over the fair value of the identifiable assets and liabilities is recorded as goodwill. While we use our best estimates and assumptions to accurately estimate the fair value of assets acquired, liabilities assumed and the contingent consideration liability, our estimates are inherently uncertain. These estimates include, but are not limited to, estimates of future revenue, revenue growth rates, discount rates, underlying product or technology life cycles and expenses necessary to support the acquired technology, and estimated sales cycle for customer relationships. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. We review assumptions related to the fair value of the contingent consideration each reporting period until the contingency is satisfied. We recognize the change in fair value of the contingent consideration liability in “General and administrative” expense on the consolidated statements of operations for the period in which the fair value changes. We assess the impairment of goodwill on an annual basis, during the fourth quarter, or otherwise when events or changes in circumstances indicate that goodwill may be impaired. We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis. We expense acquisition-related costs, including advisory, legal, accounting, valuation and other similar costs in the periods in which the costs are incurred. Revenue Recognition We generate revenue primarily from sales of hardware products. We also generate revenue from software, extended warranties, enhanced maintenance, support services, and nonrecurring engineering, or NRE, development services, none of which are material. We recognize revenue when we transfer control of the promised goods or services to our customers, which for hardware sales is generally at the time of product shipment as determined by agreed-upon shipping terms. We measure revenue based on the amount of consideration we expect to be entitled-to in exchange for those goods or services. We expect the period between when we transfer control of promised goods or services and when we receive payment to be one year or less, and that expectation is consistent with our historical experience. As such, we do not adjust our revenue for the effects of a significant financing component. We recognize any variable consideration, which comprises primarily sales incentives, as revenue reduction at the time of revenue recognition. We estimate sales incentives based on our historical experience and current expectations at the time of revenue recognition and update them at the end of each reporting period as additional information becomes available. Our reader and gateway products are highly dependent on embedded software and cannot function without this embedded software. We account for the hardware and embedded software as a single performance obligation and recognize revenue when control is transferred. Our customer contracts with multiple performance obligations generally include a combination of hardware products, extended warranty, enhanced maintenance and support services. For these contracts, we account for individual performance obligations separately if they are distinct. We allocate the transaction price to the separate performance obligations on a relative standalone selling-price basis. In instances where the standalone selling price is not directly observable, such as when we do not sell the product or service separately, we determine the standalone selling price using one, or a combination of, the adjusted market assessment or expected cost-plus margin. We defer amounts allocated to extended warranty and enhanced maintenance sold with our reader and gateway products and recognize them on a straight-line basis over the term of the arrangement, which is typically from one to three years . We defer amounts allocated to support services sold with our reader and gateway products and recognize them when we transfer control of the promised services to our customers. For NRE development agreements that involve significant production, modification or customization of our products, we generally recognize revenue over the performance period using the cost-input method because it best depicts the transfer of services to the customer. We receive payments under these agreements based on a billing schedule. Contract assets relate to our conditional right to consideration for our completed performance under these agreements. We record accounts receivable when the right to consideration becomes unconditional. For the periods presented in this report, our contract assets, deferred revenue and the value of unsatisfied performance obligations for NRE development agreements are not material. If a customer pays consideration before we transfer a good or service under the contract, then we classify those amounts as contract liabilities or deferred revenue. We recognize contract liabilities as revenue when we transfer control of the promised goods or services to our customers. Payment terms typically range from 30 to 120 days . We present revenue net of sales tax in our consolidated statements of operations. We include shipping charges billed to customers in revenue and the related shipping costs in cost of revenue. Practical Expedients and Exemptions: We expense sales commissions when incurred because we expect the amortization period to be one year or less. We record these costs within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less and (2) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Product Warranties We provide limited warranty coverage for most products, generally ranging from a period of 90 days to one year from the date of shipment. We record a liability for the estimated cost of these warranties based on historical claims, product failure rates and other factors when we recognize the related revenue. We review these estimates periodically and adjust our warranty reserves when actual experience differs from historical estimates or when other information becomes available. The warranty liability primarily includes the anticipated cost of materials, labor and shipping necessary to repair or replace the product. Accrued warranty costs in 2023, 2022 and 2021 were not material. Leases We determine, at inception, whether an arrangement is or contains a lease. Right-of-use, or ROU, assets represent our right to use an identified asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease ROU assets and liabilities at commencement date based on the present value of future lease payments over the lease term. We use an incremental borrowing rate in determining the present value of future lease payments because our operating leases do not provide an implicit rate. Our incremental borrowing rate is based on a credit-adjusted risk-free rate, which best approximates a secured rate over a similar term of lease. We recognize lease expense for lease payments on a straight-line basis over the lease term. Our lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. We expense variable lease costs on the consolidated statements of operations as incurred. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants. We have various noncancellable operating lease agreements for office, warehouse and research and development space in the U.S., China, Thailand, Brazil, Malaysia and Finland, with expiration dates from 2024 to 2029 . Certain of these arrangements have free or escalating rent payment provisions and optional renewal and termination clauses that we factor into the classification and measurement of the lease when appropriate. These lease agreements typically include lease and non-lease components and are generally accounted for as a single lease component. We consider variable CAM expenses for real estate leases as non-lease components. We do not record leases with an initial term of 12 months or less on our consolidated balance sheet; we instead recognize lease expense for these leases on a straight-line basis over the lease term. Research and Development Costs Research and development expense comprises primarily personnel expenses (salaries, benefits and other employee related costs) and stock-based compensation expense for our product-development personnel; external consulting and service costs; prototype materials; other new-product development costs; and an allocated portion of infrastructure costs which include occupancy, depreciation and software costs. Foreign Currency We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiary into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for this subsidiary are translated using rates that approximate those in effect during the period. We recognize gains and losses from these translations as a component of accumulated other comprehensive income (loss) in stockholders' equity. Our subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and non-monetary assets and liabilities at historical rates. We have included the gains or losses from foreign currency remeasurement in earnings. Income Taxes We use the asset and liability approach for accounting, which requires recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to be in effect when the assets and liabilities are recovered or settled. We recognize the effects of a change in tax rates on deferred tax assets and liabilities in the year of the enactment date. We determine deferred tax assets, including historical net operating losses and deferred tax liabilities, based on temporary differences between the book and tax bases of the assets and liabilities. We believe that it is currently more likely than not that our deferred tax assets will not be realized and, as such, we have recorded a full valuation allowance for these assets. We evaluate the likelihood of our ability to realize deferred tax assets in future periods on a quarterly basis, and if evidence indicates we will be able to realize some or all of our deferred tax assets then we will revise our valuation allowance accordingly. We use a two-step approach for evaluating uncertain tax positions. First, we evaluate recognition, which requires us to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes. If we consider a tax position more likely than not to be unsustained, then no benefits of the position are recognized. Second, we measure the uncertain tax position based on the largest amount of benefit which is more likely than not to be realized on effective settlement. This process involves estimating our actual current tax exposure, including assessing the risks associated with tax audits, together with assessing temporary differences resulting from the different treatment of items for tax and financial reporting purposes. If actual results differ from our estimates, then our net operating loss and credit carryforwards could be materially impacted. Us realizing the benefits of the NOLs and credit carryforwards depends on sufficient taxable income in future years. We have established a valuation allowance against the carrying value of our deferred tax assets, as it is currently more likely than not we will be unable to realize these deferred tax assets. In addition, using NOLs and credits to offset future income subject to taxes may be subject to substantial annual limitations due to the “change in ownership” provisions of the Code and similar state provisions. Events that cause limitations in the amount of NOLs that we may use in any one year include, but are not limited to, a cumulative ownership change of more than 50 %, as defined by Code Sections 382 and 383, over a three-year period. Using our NOLs and tax credit carryforwards could be significantly reduced if a cumulative ownership change of more than 50% has occurred in our past or occurs in our future. Stock-Based Compensation We have various equity award plans, or Plans for granting share-based awards to employees, consultants and non-employee Company directors. The Plans provide for granting several available forms of stock compensation such as stock option awards, restricted stock units, or RSUs, RSUs with performance conditions, or PSUs, and RSUs with market and service conditions, or MSUs and an employee stock purchase plan, or ESPP. We measure stock-based compensation costs for all share-based awards at fair value on the measurement date, which is typically the grant date. We determine the fair value of stock options using the Black-Scholes option-pricing model, which considers, among other things, estimates and assumptions on the expected life of the options, stock price volatility and market value of the Company’s common stock. We determine the fair value of RSUs and PSUs based on the closing price of our common stock at grant date. Additionally, for awards with a market condition, we use a Monte Carlo simulation model to estimate grant date fair value, which takes into consideration the range of possible stock price of total stockholder return outcomes. Net Loss per Share We compute net loss per share by dividing net loss by the weighted-average number of shares of common stock outstanding. We have outstanding stock options, RSUs, PSUs, MSUs and an ESPP, each of which we include in our calculation of diluted net loss per share if their effect would be dilutive. We compute diluted net loss per share by considering all potential dilutive common stock equivalents outstanding for the period. Upon us adopting Accounting Standard Update, or ASU, 2020-06 using the modified retrospective transition method on January 1, 2021, we applied the “if-converted” method for calculating any potential dilutive effect of the conversion of the 2019 and 2021 Notes on diluted net loss per share for the years ended December 31, 2023 and 2022. For more information about the 2019 and 2021 Notes, please refer to Note 8 to our consolidated financial statements. Recently Adopted Accounting Standards In August 2020, the Financial Statement Accounting Board, or FASB, issued guidance on debt with conversion and other options, or ASU 2020-06. This guidance eliminated the beneficial and cash-conversion accounting models for convertible instruments and amends the derivative scope exception for contracts in an entity’s own equity. Additionally, this guidance requires the application of the “if-converted” method to calculate the impact of convertible instruments on diluted earnings per share. We adopted ASU 2020-06 on January 1, 2021 using the modified retrospective transition method and accounted for our 2019 Notes on a whole-instrument basis. We recorded a $ 29.3 million increase to long-term debt, a $ 32.7 million decrease to additional paid-in capital and a $ 3.4 million decrease to accumulated deficit on January 1, 2021. Interest expense decreased for the year ended December 31, 2021 compared with the years ended December 31, 2020 and December 31, 2019, respectively, as we no longer separate an equity component of the 2019 Notes and incur amortization of debt discount. We had no changes to net deferred tax liabilities, due to the decrease in deferred tax liability being offset by a corresponding increase in valuation allowance upon adoption. We present our consolidated financial statements as of and for the year ended December 31, 2021, under ASU 2020-06. We have no t adjusted the comparative prior reporting periods and continue to report them in accordance with our historical accounting policy. Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB released ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which amends reportable segment requirements, primarily through enhanced disclosures about significant segment expenses, including for public entities that have a single reportable segment. The standard is effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 31, 2024. We are currently evaluating any impact of this standard on our financial statement disclosures. In December 2023, the FASB released ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends income tax disclosure requirements to enhance the transparency and decision usefulness for users of the financial statements. The standard is effective for fiscal years beginning after December 31, 2024. We are currently evaluating any impact of this standard on our financial statement disclosures. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 3. Fair Value Measurements The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 78,661 $ — $ — $ 78,661 $ 14,620 $ — $ — $ 14,620 Total cash equivalents 78,661 — — 78,661 14,620 — — 14,620 Short-term investments: U.S. government agency securities — 11,893 — 11,893 — 78,621 — 78,621 Corporate notes and bonds — — — — — 26,953 — 26,953 Commercial paper — — — — — 24,073 — 24,073 Treasury bill — — — — — 11,359 — 11,359 Yankee bonds — 1,951 — 1,951 — 1,939 — 1,939 Agency bonds — 2,994 — 2,994 — 2,882 — 2,882 Asset-backed securities — 1,602 — 1,602 — 8,321 — 8,321 Total short-term investments — 18,440 — 18,440 — 154,148 — 154,148 Long-term investments: U.S. government agency securities — — — — — 13,462 — 13,462 Yankee bonds — — — — — 1,869 — 1,869 Agency bonds — — — — — 2,983 — 2,983 Asset-backed securities — — — — — 886 — 886 Total long-term investments — — — — — 19,200 — 19,200 Total $ 78,661 $ 18,440 $ — $ 97,101 $ 14,620 $ 173,348 $ — $ 187,968 Acquisition related contingent consideration liability — — 6,180 6,180 — — — — Total liabilities at fair value $ — $ — $ 6,180 $ 6,180 $ — $ — $ — $ — The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value as of December 31, 2023: Year Ended December 31, 2023 Balance as of January 1 $ — Addition of contingent consideration liability due to acquisition 4,602 Change in fair value of contingent consideration liability due to remeasurement 1,578 Balance as of December 31 $ 6,180 We recorded the contingent consideration related to the Voyantic Oy acquisition at its fair value using unobservable inputs and used the Monte Carlo simulation option pricing framework, incorporating contractual terms and assumptions regarding financial forecasts, discount rates and volatility of forecasted revenue and gross margins. A decrease in estimated revenues and gross margins or an increase in the discount rate would decrease the fair value of the contingent consideration liability. The estimated revenues and gross margins are not interrelated inputs. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations is management's responsibility with the assistance of a third-party valuation specialist. During the year ended December 31, 2023, we remeasured the fair value of the contingent consideration liability based on updated inputs related to actual performance results and recorded an additional expense of $ 1.6 million in general and administrative expense on the consolidated statement of operations. As of December 31, 2023, the contingent consideration liability of $ 6.2 million is included in "Accrued expenses and other current liabilities" on the consolidated balance sheet. We did not have any Level 3 assets nor did we measure any liabilities at fair value as of December 31, 2022. We expect short-term investments to mature within 1 year of the reporting date. We expect long-term investments to mature between 1 and 2 years from the reporting date. See Note 8 for the carrying amount and estimated fair value of our convertible senior notes due 2027 . The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands): December 31, 2023 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 78,661 $ — $ — $ 78,661 U.S. government agency securities 11,932 — ( 39 ) 11,893 Corporate notes and bonds — — — — Yankee bonds 1,956 — ( 5 ) 1,951 Commercial paper — — — — Treasury bill — — — — Agency bond 2,998 — ( 4 ) 2,994 Asset-backed securities 1,604 — ( 2 ) 1,602 Total $ 97,151 $ — $ ( 50 ) $ 97,101 December 31, 2022 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 14,620 $ — $ — $ 14,620 U.S. government agency securities 93,065 — ( 982 ) 92,083 Corporate notes and bonds 27,133 6 ( 186 ) 26,953 Yankee bonds 3,815 — ( 7 ) 3,808 Commercial paper 24,073 — — 24,073 Treasury bill 11,361 2 ( 4 ) 11,359 Agency bond 5,863 4 ( 2 ) 5,865 Asset-backed securities 9,287 2 ( 82 ) 9,207 Total $ 189,217 $ 14 $ ( 1,263 ) $ 187,968 Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $ 10.2 million and unrealized losses of $ 0.02 million a s of December 31, 2023. Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $ 125.6 million and unrealized losses of $ 1.2 million as of December 31, 2022. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $ 8.2 million and unrealized losses of $ 0.03 million as of December 31, 2023. Marketable securities in a continuous loss position for greater than 12 months had an estimated fair value of $ 13.9 million and unrealized losses of $ 0.1 million as of December 31, 2022. Unrealized losses from our fixed-income securities are primarily attributable to changes in interest rates and not to lower credit ratings of the issuers. In determining whether an unrealized loss is other-than-temporary, for the periods presented, we determined we do not have plans to sell the securities nor is it more likely than not that we would be required to sell the securities before their anticipated recovery. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4. Inventory The following table presents the detail of inventories as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Raw materials $ 21,773 $ 14,678 Work-in-process 42,217 14,525 Finished goods 33,182 17,194 Total inventory $ 97,172 $ 46,397 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 5. Property and Equipment The following table presents property and equipment details as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Machinery and equipment $ 57,511 $ 48,420 Computer equipment and software 3,012 3,308 Furniture and fixtures 1,333 1,303 Equipment acquired under finance leases 1,728 2,895 Leasehold improvements 12,966 10,684 Total property and equipment, gross 76,550 66,610 Less: Accumulated depreciation ( 31,659 ) ( 27,583 ) Total property and equipment, net $ 44,891 $ 39,027 Depreciation expense, which includes amortization of finance lease asse ts, was $ 8.7 million, $ 6.0 million and $ 4.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. We did no t acquire any property and equipment under finance leases for the years ended December 31, 2023 or 2022. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets On April 3, 2023, we acquired all of the outstanding equity of Voyantic Oy for an aggregate purchase price of $ 32.7 million. Our acquisition of Voyantic Oy adds label design, manufacturing and testing to our systems offerings, to advance the quality, reliability and readability of partner inlays. The consideration comprised (i) $ 3.6 million in shares of our common stock valued using the market price on the date of the acquisition, (ii) $ 4.6 million in deferred payments contingent upon revenue and gross margin performance over a one-year period from the acquisition date, and (iii) the remainder in cash paid at closing. We recorded the assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. We recorded the excess of the purchase price over the assets acquired and liabilities assumed as goodwill. The fair value of net assets acquired, goodwill, intangible assets and deferred tax liability were $ 2.4 million, $ 15.6 million $ 18.4 million and $ 3.7 million, respectively. The goodwill amount represents synergies we expect to realize from the business combination and assembled workforce. We allocated the goodwill to our one reporting unit and reportable segment. The acquired goodwill and intangible assets were not deductible for tax purposes. The transaction-related costs for the acquisition were $ 1.7 million for the year ended December 31, 2023. In addition we revalued the contingent consideration subsequent to the acquisition date and recorded an additional $ 1.6 million. See Note 3. Fair Value Measures for additional information on the contingent consideration. Transaction expenses and contingent consideration expense are included in general and administrative expense in the consolidated statements of operations. This acquisition did not have a material impact on our reported revenue or net loss amounts for any period presented; therefore, we have not presented historical and pro forma disclosures. The following table presents goodwill as of December 31, 2023 (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of period $ 3,881 $ 3,881 Additions from acquisition 15,590 — Foreign currency translation adjustment 225 — Total $ 19,696 $ 3,881 As of December 31, 2023, intangible assets comprised of the following (in thousands): Estimated Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Backlog 0.25 $ 773 $ ( 773 ) $ — Customer Relationships 1 3,698 ( 2,773 ) 925 Developed Technology 7.25 13,024 ( 1,348 ) 11,676 Patent 3 250 ( 38 ) 212 Tradename 8 1,214 ( 114 ) 1,100 Total definite-lived intangible assets (1) 18,959 ( 5,046 ) 13,913 (1) Foreign intangible asset carrying amounts are affected by foreign currency translation We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis. The weighted-average life of our intangible assets is approximately six years . Amortization expense of intangible assets was $ 5.0 million f or the year ended December 31, 2023. We did no t have an intangible asset balance for the year ending December 31, 2022. As of December 31, 2023, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) 2024 2,956 2025 2,032 2026 1,993 2027 1,948 2028 1,948 Thereafter 3,036 Total $ 13,913 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7. Income Taxes We are subject to federal and state income taxes in the United States and foreign jurisdictions. The following table presents U.S. and foreign components of income (loss) before income taxes (in thousands): Year Ended December 31, 2023 2022 2021 U.S. $ ( 40,349 ) $ ( 24,508 ) $ ( 51,488 ) Foreign ( 3,339 ) 391 381 Loss before income taxes $ ( 43,688 ) $ ( 24,117 ) $ ( 51,107 ) The following table presents the detail of income tax benefit (expense) for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Current: U.S. - Federal $ — $ — $ — U.S. - State ( 163 ) ( 68 ) ( 8 ) Foreign ( 446 ) ( 110 ) ( 137 ) ( 609 ) ( 178 ) ( 145 ) Deferred: U.S. - Federal ( 53 ) 5 ( 7 ) U.S. - State — ( 11 ) ( 1 ) Foreign 984 — — 931 ( 6 ) ( 8 ) Total income tax expense $ 322 $ ( 184 ) $ ( 153 ) We have not recorded a liability for U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2023 because we intend to permanently reinvest the earnings outside the United States. We expect the amount of the unrecognized deferred tax liability, if incurred, to be immaterial. The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented: Year Ended December 31, 2023 2022 2021 U.S. Statutory Rate 21.0 % 21.0 % 21.0 % Change in valuation allowance ( 42.0 ) ( 54.7 ) ( 33.3 ) State taxes (net of federal benefit) 0.1 0.4 0.2 Federal research and development credit 18.6 16.5 8.5 Stock-based compensation 10.4 16.1 10.2 Inducement premium — 5.0 ( 4.7 ) Unrecognized tax benefits ( 4.7 ) ( 4.1 ) ( 2.1 ) Other, net ( 2.8 ) ( 1.0 ) ( 0.1 ) Effective income tax rate 0.7 % ( 0.8 %) ( 0.3 %) We continue to maintain a full valuation allowance against our net deferred tax assets in the U.S. but recognize deferred income tax expense (benefit) due to the change in the indefinite deferred tax liability related to goodwill, which is partially offset by indefinite tax attributes. Deferred federal, state and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for tax purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Net operating loss carryforwards $ 49,228 $ 53,157 Credit carryforwards 22,971 16,868 Capitalized research and development 32,988 17,072 Operating lease liabilities 2,569 3,011 Allowances 1,624 1,398 Deferred revenue 48 74 Stock-based compensation 6,351 6,041 Disallowed interest expense — 676 Inventory cost capitalization 1,433 791 Deferred tax assets 117,211 99,088 Less: Valuation allowance ( 114,040 ) ( 95,710 ) Net deferred tax assets 3,171 3,378 Deferred tax liability: Goodwill ( 823 ) ( 796 ) Depreciation and amortization ( 3,326 ) ( 475 ) Operating lease ROU assets ( 1,933 ) ( 2,226 ) Deferred tax liabilities ( 6,082 ) ( 3,497 ) Net deferred tax liability $ ( 2,911 ) $ ( 119 ) Realizing deferred tax assets depends on us generating future taxable income, the timing and amount of which are uncertain. We have provided a full valuation allowance against the net deferred tax assets as of December 31, 2023 and 2022 because, based on the weight of available evidence, it is more likely than not we will be unable to realize the deferred tax assets. We acquired Voyantic Oy, a Finnish company on April 3, 2023. As a result of the transaction, we recorded a $ 3.7 million deferred tax liability associated with intangibles, with an offset to goodwill. We have accumulated federal tax losses of approximately $ 230.5 million and $ 249.3 million, respectively, as of December 31, 2023 and 2022 , which are available to reduce future taxable income. The Tax Cuts and Jobs Act, or TCJA, enacted on December 22, 2017 altered the carryforward period for federal net operating losses and as a result, all net operating losses generated in 2018 and forward have an indefinite life. Of the net operating losses reported, we have accumulated $ 141.9 million with an indefinite life as of December 31, 2023 . We have accumulated state tax losses of approximately $ 21.3 million and $ 21.7 million as of December 31, 2023 and 2022 , respectively. We also have net research and development credit carryforwards of $ 30.5 million and $ 22.3 million as of December 31, 2023 and 2022, respectively, which are available to reduce future tax liabilities. The Tax Cuts and Jobs Act contained a provision which requires the capitalization of Section 174 costs incurred in the years beginning on or after Jan. 1, 2022. Section 174 costs are expenditures which represent research and development costs that are incident to the development or improvement of a product, process, formula, invention, computer software or technique. This provision changes the treatment of Section 174 costs such that the expenditures are no longer allowed as an immediate deduction but rather must be capitalized and amortized. We have included the impact of this provision, which results in a deferred tax asset of approximately $ 32.9 million as of December 31, 2023. The pre-2018 federal and state tax losses and federal research and development credit carryforwards began expiring in 2020 . Under Sections 382 and 383 of the Internal Revenue Code, if a corporation undergoes an ownership change, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes, such as research tax credits, to offset its post-change income or income tax liability may be limited. We have completed a formal IRC Section 382 study through December 31, 2023 and the attributes disclosed in this footnote reflect the conclusion of that study. However, subsequent ownership changes may affect the limitation in future years. We are currently not under audit in any tax jurisdiction. Tax years from 2004 through 2023 are currently open for audit by federal and state taxing authorities. We establish reserves for tax positions based on estimates of whether, and the extent to which, additional taxes will be due. We establish the reserves when we believe that our tax-return positions might be challenged by taxing authorities, despite our belief that our tax return positions are fully supportable. The following table presents the total balance of unrecognized tax benefits as of the dates presented (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 5,606 $ 4,609 $ 3,519 Gross increase to tax positions in current periods 2,034 997 1,090 Balance at end of period $ 7,640 $ 5,606 $ 4,609 As of December 31, 2023, we recorded a total amount of unrecognized tax benefit of $ 7.6 million as a reduction to the deferred tax asset. If recognized, this tax benefit would have no impact to our effective tax rate because we have a full valuation allowance. We do not anticipate that the amount of existing unrecognized tax benefit will significantly increase or decrease within the next 12 months. We record accrued interest and penalties related to unrecognized tax benefits as income tax expense and their value is zero . |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 8. Long-term debt In December 2019, we issued $ 86.3 million aggregate principal amount of the 2019 Notes and in November 2021, we issued $ 287.5 million aggregate principal amount of convertible promissory notes due May 15, 2027 , referred to as the 2021 Notes (collectively, the Notes). The 2019 Notes were repurchased in 2021 and 2022. See further information on the 2019 Note Repurchase under "Repurchase of the Convertible Senior Notes - 2019" section below. The following table presents the outstanding principal amount and carrying value of the 2021 Notes as of the dates indicated (in thousands): December 31, 2023 December 31, 2022 Principal Amount Unamortized debt issuance costs Net Carrying Amount Principal Amount Unamortized debt issuance costs Net Carrying Amount 2021 Notes 287,500 ( 5,645 ) 281,855 287,500 ( 7,256 ) 280,244 Further details of the 2021 Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) (1) 2021 Notes May 15, 2027 1.125 % May 15, 2022 1.72 % May 15; November 15 9.0061 $ 111.04 2.6 The 2021 Notes are senior unsecured obligations, do not contain any financial covenants and are governed by indentures (the Indentures). The total net proceeds from the 2021 Notes, after deducting initial debt issuance costs, fees and expenses, was $ 278.4 million. We used approximately $ 183.6 million of the 2021 Notes net proceeds, excluding accrued interest, to repurchase approximately $ 76.4 million aggregate principal amount of the 2019 Notes through individual privately negotiated transactions concurrent with us offering the 2021 Notes. We used approximately $ 17.6 million, excluding accrued interest, to repurchase the remaining $ 9.9 million aggregate principal amount of the 2019 Notes in June 2022. We will use the remainder of the net proceeds from the 2021 Notes for general corporate purposes. Terms of the 2021 Notes The holders of the 2021 Notes may convert their respective 2021 Notes at their option at any time prior to the close of business on the business day immediately preceding the respective conversion dates under the following circumstances: • during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2022 (and only during such fiscal quarter), if the last reported sale price of our common stock, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2021 Notes for each trading day was less than 98 % of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; • prior to the close of business on the second scheduled trading day immediately preceding the redemption date if we call the 2021 Notes for redemption; or • upon the occurrence of specified corporate events, as described in the indenture. None of the circumstances described in the above paragraphs were met during fiscal year 2023. Regardless of the foregoing circumstances, holders may convert all or any portion of the 2021 Notes, in increments of $1,000 principal amount, on or after February 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date. We may redeem all or a portion of the 2021 Notes for cash, at our option, on or after November 20, 2024, if the last reported sale price of our common stock has been at least 130 % of the conversion price at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period at a redemption price equal to 100% of the principal amount of the 2021 Notes being redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. Holders who convert their 2021 Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally in the event of a corporate event constituting a fundamental change (as defined in the indenture), holders of the 2021 Notes may require us to repurchase all or a portion of their 2021 Notes at a repurchase price equal to 100 % of the principal amount of the 2021 Notes being repurchased, plus any accrued and unpaid interest to, but excluding, the repurchase date. Accounting for the Notes Prior to January 1, 2021, we separated the 2019 Notes into liability and equity components. We determined the fair value of the liability component to be $ 52.5 million calculated as the present value of future cash flows discounted at the borrowing rate for a similar nonconvertible debt instrument based on the expected term. We determined the borrowing rate to be 9.90 % based on the market rates for nonconvertible debt instruments issued by other companies with publicly available credit ratings considered to be comparable to us. We recognized the excess of the principal amount of the 2019 Notes over the initial carrying amount of the liability component as a debt discount of $ 33.8 million and amortized it to interest expense over the expected term of the 2019 Notes using the effective interest rate method. We recorded the equity component of $ 33.8 million as additional paid-in capital, calculated as the difference between the total proceeds of $ 86.3 million and the initial carrying amount of the liability component. We allocated the 2019 Notes total issuance costs of $ 2.8 million between liability and equity in the same proportion as the allocation of our total proceeds to liability and equity components. We amortized the issuance costs attributable to the liability component of $ 1.7 million to interest expense over the respective term of the 2019 Notes using the effective interest rate method. We netted the issuance costs attributable to the equity component of $ 1.1 million against the respective equity component in additional paid-in capital. Effective January 1, 2021, we early adopted ASU 2020-06 using the modified retrospective approach. As a result, we accounted for the 2019 Notes as a single liability measured at amortized cost, as no other embedded features require bifurcation and recognition as derivatives. Upon adoption, we recorded a $ 29.3 million increase to long-term debt, a $ 32.7 million decrease to additional paid-in capital and a $ 3.4 million decrease to accumulated deficit. We had no changes to net deferred tax liabilities with a decrease in deferred tax liability offset by a corresponding increase in valuation allowance upon adoption. We accounted for the 2021 Notes issuance as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. We presented the 2021 Notes total issuance costs of $ 9.1 million as a direct deduction from the face amount of the 2021 Notes. We amortized the issuance costs to interest expense over the respective term of the 2021 Notes using the effective interest rate method. Interest expense related to the Notes was as follows (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 2021 Notes 2019 Notes 2021 Notes Total 2019 Notes 2021 Notes Total Amortization of debt issuance costs 1,612 19 1,583 1,602 329 239 568 Cash interest expense 3,236 87 3,234 3,321 1,488 494 1,982 Total interest expense $ 4,848 $ 106 $ 4,817 $ 4,923 $ 1,817 $ 733 $ 2,550 Accrued interest related to the 2021 Notes as of December 31, 2023 and 2022 was $ 0.4 million and $ 0.4 million, respectively. We record accrued interest in accrued liabilities in our consolidated balance sheet. Our estimated fair value of the 2021 Notes was $ 314.0 million and $ 347.4 million as of December 31, 2023 and 2022, respectively, which we determined through consideration of quoted market prices. The fair value for the 2021 Notes is classified as Level 2, as defined in Note 2. Capped Calls In connection with the issuance of the 2019 Notes, we entered into privately negotiated capped-call transactions with certain financial counterparties. The capped call transactions are generally designed to reduce the potential dilution to our common stock upon any conversion or settlement of the 2019 Notes, or to offset any cash payments we are required to make in excess of the principal amount upon conversion of the 2019 Notes, as the case may be, with the reduction or offset subject to a cap based on the cap price. If, however, the market price per share of our common stock exceeds the cap price of the capped-call transactions, then our stock would experience some dilution and/or the capped call would not fully offset the potential cash payments, in each case, to the extent then-market price per share of our common stock exceeds the cap price. The capped call remains outstanding even though we have repurchased the 2019 Notes, to reduce the potential dilution of the 2021 Notes. The initial cap price of the capped call transactions is $ 54.20 per share, subject to certain adjustments under the terms of the capped call transactions. The capped call transactions expire over 40 consecutive scheduled trading days ending on December 11, 2026 . The capped call transactions meet the criteria for classification in equity, are not accounted for as derivatives and are not remeasured each reporting period. Repurchase of the Convertible Senior Notes – 2019 In November 2021 and June 2022, we completed a privately negotiated induced conversion of $ 76.4 million and $ 9.9 million principal amount, respectively of the 2019 Notes. We accounted for the 2019 Notes Repurchase transactions as induced conversions in accordance with Accounting Standards Codification 470-20, Debt with Conversion and Other Options (ASC 470-20). In connection with the induced conversions, we paid approximately $ 183.6 million in cash in November 2021 an d $ 17.6 million in cash in June 2022, and also paid accrued and unpaid interest thereon. As a result of the induced conversion, we recorded $ 11.3 million in November 2021 and $ 2.2 million in June 2022 in induced conversion expense which is included in the Consolidated Statements of Operations. The induced conversion expense represents the fair value of the consideration issued upon conversion in excess of the fair value of the securities issuable under the original terms of the 2019 Notes. We accounted for the remaining cash consideration under the original terms of the 2019 Notes under the general conversion accounting guidance, where the difference between the carrying amount of the 2019 Notes retired, including unamortized debt issuance costs of $ 1.8 million in November 2021 and $ 0.2 million in June 2022, and the cash consideration paid, was recorded in additional paid-in capital. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 9. Stockholders’ Equity Preferred Stock Our board of directors has the authority to fix the designations, powers, preferences and rights and the qualifications, limitations or restrictions thereof, of any wholly unissued series of preferred stock, and to increase or decrease the number of shares in any series of preferred stock, subject to limitations prescribed by law and by our certificate of incorporation. We had no preferred stock issued and outstanding as of December 31, 2023 or 2022. Common Stock As of December 31, 2023 , we had authorized 495,000,000 shares of voting $ 0.001 par value common stock. Each holder of the common stock is entitled to one vote per common share . At its discretion, the board of directors may declare dividends on shares of common stock, subject to the prior rights of our preferred stockholders, if any. Upon liquidation or dissolution, holders of common stock will receive distributions only after preferred stock preferences have been satisfied. |
Stock-Based Awards
Stock-Based Awards | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Awards | Note 10. Stock-Based Awards Stock-Based Compensation Expense The following table presents the detail of stock-based compensation expense amounts included in our consolidated statements of operations for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenue $ 1,869 $ 1,522 $ 1,869 Research and development expense 21,307 17,961 17,170 Sales and marketing expense 10,240 9,447 9,496 General and administrative expense 14,570 13,513 11,963 Total stock-based compensation expense $ 47,986 $ 42,443 $ 40,498 2016 Equity Incentive Plan In June 2016, our board of directors adopted and our stockholders approved our 2016 Equity Incentive Plan, or the 2016 Plan, which became effective in July 2016 at which time the 2010 Equity Incentive Plan, or the 2010 Plan, was terminated. The number of shares of common stock reserved for issuance under the 2016 Plan may increase on January 1 of each year, beginning on January 1, 2017 and ending on and including January 1, 2026, by the lesser of (1) 1,825,000 shares; (2) 5 % of the total number of shares of common stock outstanding on December 31 of the preceding calendar year; and (3) a lesser number of shares determined by our board of directors. The 2016 Plan provides for granting incentive or non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights and performance shares or performance units to employees, non-employee directors and consultants. All options granted under the 2010 Plan and the 2016 Plan have a maximum 10 -year term and generally vest and become exercisable over four years of continued employment or service as defined in each option agreement. We generally grant stock options with exercise prices that equal the fair value of the common stock on the date of grant. As allowed under the 2016 Plan, there are a few exceptions to this vesting schedule, which permit vesting at different rates or based on achieving performance targets. We use newly issued shares to satisfy option exercises. As of December 31, 2023, we had approximately 2.8 million shares of common stock available for future grants. Stock Options We did not issue stock options in fiscal year 2023 or fiscal year 2022. The following table summarizes option award activity for the year ended December 31, 2023 (in thousands, except per share data and years): Number of Weighted-Average Weighted-Average Total Intrinsic Outstanding at December 31, 2022 1,712 $ 25.09 5.92 $ 143,996 Granted — — Exercised ( 243 ) 22.72 Forfeited or expired ( 3 ) 27.72 Outstanding at December 31, 2023 1,466 25.48 4.97 94,650 Vested and exercisable at December 31, 2023 1,408 $ 25.35 4.91 $ 91,089 We estimate the fair value of options granted at the date of grant using the Black-Scholes option-pricing model with the following assumptions for the periods presented: Year Ended December 31, 2023 2022 2021 Risk-free interest rate N/A N/A 0.8 % - 1.2 % Expected dividends yield N/A N/A None Expected volatility N/A N/A 71.2 % - 72.4 % Weighted-average expected term N/A N/A 6.08 Weighted-average fair value of options granted N/A N/A $ 36.94 In 2021, we determined that it was not practicable to calculate the volatility of our share price because we do not have an extensive public trading history for shares of our common stock. Therefore, we estimated our volatility based on a combination of our historical volatility since becoming a publicly traded company and reported market value data for a group of publicly traded entities that we believe are relatively comparable after considering their size, stage of lifecycle, profitability, growth, risk and return on investment. In 2021, to determine the expected term, we applied the simplified approach in which the expected term of an award is presumed to be the midpoint between the vesting date and the expiration date of the options as we did not have sufficient historical exercise data to provide a reasonable basis for an estimate of expected term. The total intrinsic value of options exercised during 2023, 2022 and 2021 was $ 19.1 million, $ 31.9 million and $ 33.7 million, respectively. The total grant date fair value of options vested was $ 3.3 million, $ 7.0 million and $ 12.8 million during 2023, 2022 and 2021, respectively. As of December 31, 2023, our total unrecognized stock-based compensation cost related to unvested stock options was $ 0.9 million, which we will recognize over the weighted-average remaining requisite service period of 0.5 years. Restricted Stock Units The following table summarizes activity for restricted stock units, or RSUs, PSUs, and MSUs for the year ended December 31, 2023 (in thousands, except per share data): Number of Underlying Shares Weighted-Average Grant Date Fair Value RSUs MSUs PSUs RSUs MSUs PSUs Outstanding at December 31, 2022 1,310 110 74 $ 56.92 $ 80.40 $ 64.03 Granted 441 126 — 119.12 145.51 — Vested ( 633 ) ( 58 ) ( 57 ) 52.92 39.15 64.03 Forfeited ( 40 ) ( 4 ) ( 17 ) 71.49 185.49 64.03 Outstanding at December 31, 2023 1,078 174 — $ 84.18 $ 138.77 $ — We record stock-based compensation expense for RSUs and MSUs on a straight-line basis over the requisite service period, which is generally the vesting period. We record stock-based compensation for PSUs based on the probability of achieving the performance criteria defined in the PSU agreements. Forfeitures are recognized as they occur. We granted PSUs under our annual bonus program to our senior executives and other bonus-eligible employees. The number of annual PSUs that ultimately vest depends on us attaining certain financial metrics for the fiscal year as well as on the employee’s continued employment through the vesting date. In fiscal year 2022, we transitioned to a bonus plan that was half cash and half PSUs. In fiscal year 2023, we transitioned to an all cash bonus plan. The following table summarizes information related to granted and vested RSUs, PSUs, and MSUs (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 RSU weighted-average grant date fair value $ 119.12 $ 65.81 $ 56.40 MSU weighted-average grant date fair value 145.51 81.22 77.01 PSU weighted-average grant date fair value $ — $ 64.07 $ 54.67 Fair market value of RSUs vested $ 64,417 $ 32,871 $ 18,228 Fair market value of MSUs vested 7,219 — — Fair market value of PSUs vested $ 7,261 $ 18,873 $ 15,384 As of December 31, 2023 , our total unrecognized stock-based compensation cost related to unvested MSUs was $ 13.7 million, which we will recognize over the weighted-average period of 1.3 years. As of December 31, 2023, there was $ 78.4 million of total unrecognized compensation cost related to unvested RSUs, which we expect to recognize over a weighted-average period of 2.4 years. Employee Stock Purchase Plan Effective July 2016, we adopted the 2016 Employee Stock Purchase Plan, or the ESPP, allowing eligible employees to authorize payroll deductions of up to 15 % of their eligible compensation. An ESPP participant may purchase a maximum of 4,000 shares, or a lesser number as determined by the IRS rules, each six-month period. The offering periods generally start on the first trading day on or after February 20 and August 20 of each year. Participants in an offering period are granted the right to purchase common shares at a price per share that is 85 % of the lesser of the fair market value of the shares on (1) the first day of the offering period or (2) the end of the purchase period. The number of shares reserved for the ESPP may increase each year, beginning on January 1, 2017 and continuing through and including January 1, 2036, by the lesser of: (1) 1 % of the total number of shares of common stock outstanding on the first day of each year; (2) 365,411 shares of common stock; and (3) an amount determined by our board of directors. As of December 31, 2023, the total unrecognized stock-based compensation from the ESPP was $ 0.3 million, which we will recognize on a straight-line basis over the weighted-average remaining service period of less than one year . We estimate the fair value of the ESPP grant at the start of the offering period using the Black-Scholes option-pricing model with the following assumptions for the periods presented: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 5.1 % - 5.6 % 0.7 % - 3.2 % 0.0 % - 0.1 % Expected term 0.5 Years 0.5 Years 0.5 Years Expected volatility 64.7 % - 85.9 % 71.9 % - 76.3 % 61.0 % - 65.8 % |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 11. Leases The following table presents the components of lease expense in our consolidated statements of operations for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease costs (1) Single lease costs $ 3,486 $ 4,299 $ 4,154 Variable lease costs 1,280 2,159 1,910 Sublease income (2) ( 165 ) ( 1,976 ) ( 1,900 ) Total operating lease costs $ 4,601 $ 4,482 $ 4,164 (1) Includes short-term lease costs, which are immaterial. (2) Sublease income is related to unused office space that we sublet as part of the fiscal 2018 restructuring where we continue to have the primary obligations. The following table presents supplemental cash flow information related to operating leases for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used $ 4,233 $ 5,097 $ 4,895 Lease liabilities arising from remeasurement of right-of-use assets Operating leases $ 159 $ — $ 698 Lease liabilities arising from obtaining ROU assets Operating leases $ 1,690 $ 2,237 $ — The following table presents weighted-average remaining lease term and weighted-average discount rate related to operating leases as of: 2023 2022 Weighted-average remaining lease term (years) 3.7 4.3 Weighted-average discount rate 6.9 % 6.9 % The following table presents future lease payments under operating leases as of December 31, 2023 (in thousands): Operating Leases Lease Payments 2024 $ 4,120 2025 4,129 2026 4,201 2027 775 2028 642 Thereafter 549 Total lease payments $ 14,416 Less: Imputed interest ( 1,683 ) Present value of lease liabilities 12,733 Less: Current portion of lease liabilities 3,373 Lease liabilities, net of current portion $ 9,360 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Indemnification In the normal course of business, we may enter into agreements that require us to indemnify either customers or suppliers for certain risks. Although we cannot estimate our maximum exposure under these agreements, to date indemnification claims have not had a material impact on our consolidated results of operations or financial condition. Litigation From time to time, we are subject to various legal proceedings or claims that arise in the ordinary course of business. We accrue a liability when management believes that it is both probable that we have incurred a liability and we can reasonably estimate the amount of loss. As of December 31, 2023 and 2022 , we did no t have accrued contingency liabilities. The following is a description of our significant legal proceedings. Although we believe that resolving these claims, individually or in aggregate, will not have a material adverse impact on our financial statements, these matters are subject to inherent uncertainties. Patent Infringement Claims and Counterclaims Impinj Patent Infringement Claims Against NXP in California On June 6, 2019, we filed a patent infringement lawsuit against NXP USA, Inc., a Delaware corporation and subsidiary of NXP Semiconductors N.V., or NXP, in the U.S. District Court for the Northern District of California, or the Court. Our original complaint alleged that certain NXP endpoint ICs infringe 26 of our U.S. patents. At the order of the Court, we filed an amended complaint limited to eight of the original 26 patents. We subsequently elected to go forward with asserting infringement of six of those eight patents. We sought, among other things, past damages, including lost profits; no less than a reasonable royalty; enhanced damages for willful infringement; and reasonable attorneys’ fees and costs. We also sought an injunction against NXP making, selling, using, offering for sale or importing UCODE 8 and UCODE 9 ICs. NXP responded to our complaint on September 30, 2019, citing numerous defenses including denying infringement and claiming our asserted patents are invalid. After various pre-trial motions, the Court narrowed the case to two patents—U.S. patent nos. 9,633,302, or the ’302 patent and 8,115,597, or the ’597 patent. Before trial, the Court granted summary judgment of infringement on the ‘302 patent. The Court oversaw a jury trial on those two patents beginning on July 5, 2023, and concluding on July 13, 2023. The issues on the ‘302 patent were validity, damages and willful infringement. The issues on the ‘597 patent were infringement, validity, damages and willful infringement. On July 14, 2023, the jury returned a verdict in our favor finding that: (1) the asserted independent claims of the '302 patent had not been proven invalid, but two of the asserted dependent claims had been proven invalid; (2) NXP’s infringement of the asserted claims of the ‘302 patent was willful; (3) none of the asserted claims of the ‘597 patent were proven to be invalid; and (4) NXP infringed the asserted claims of the ‘597 patent. The jury awarded lost profits on a portion of NXP’s infringing sales, and for NXP’s remaining infringing sales, awarded royalties for each patent. This resulted in an award of approximately $ 18.2 million and $ 18.4 million in damages for infringement of the ‘302 patent and the ’597 patent respectively. Impinj cannot receive lost profits more than once for the same sales so the awards are largely overlapping. On September 28, 2023, the Court granted NXP's post-trial motion for a new trial on the validity of the '302 patent based on the jury's inconsistent verdicts on the validity of independent and dependent claims for that patent. The Court also ruled that the damages awarded by the jury for both patents should be reduced by certain sales made to a distributor outside the United States. The Court directed the parties to meet and confer on the appropriate reduction of damages, and on October 20, 2023, the parties stipulated that the damages award for the infringement of the '597 patent alone should be $ 13.1 million. We recognize contingent gains in our financial statements upon resolution of all contingencies related to the award. On October 3, 2023, the Court denied our motion for a permanent injunction. Having granted a new trial on the validity of the '302 patent, the denial was based only on the '597 patent. We have appealed the denial of the injunction to the Federal Circuit. We also moved for imposition of an ongoing royalty for infringement of the ‘597 patent. The Court indicated it would grant such an ongoing royalty but the amount would be decided after the re-trial on the ‘302 patent. NXP Patent Infringement Claims Against Impinj in Washington On October 4, 2019, NXP USA, Inc. and NXP filed a patent infringement lawsuit against us in the U.S. District Court for the District of Delaware. The complaint alleged that certain of our products infringe eight U.S. patents owned by NXP or NXP USA, Inc. The plaintiffs sought, among other things, past damages adequate to compensate them for our alleged infringement of each of the patents-in-suit and reasonable attorneys’ fees and costs. They also sought an injunction against us. We denied we are infringing any of the patents and asserted both that our wafer supplier is licensed under four of them and that all eight are invalid. On September 23, 2020, the District of Delaware granted Impinj’s motion to transfer the case to the U.S. District Court for the Western District of Washington in Seattle. On December 11, 2020, we moved to stay the case with respect to six of the eight patents in suit pending final resolution of IPR petitions we filed with the PTAB. On February 12, 2021, the Court granted our motion to stay the case as to these six patents. The PTAB instituted IPRs on two of the six challenged patents but denied them on the other four . The Court subsequently removed the stay on the four against which IPRs were not instituted. The Court ultimately narrowed the case to seven patents. Following the close of fact discovery, the parties each moved for summary judgment on various issues. The Court ultimately granted summary judgment of noninfringement to us on six of the seven patents, and the final patent went to a jury trial beginning on June 5, 2023. The jury found that we did not infringe the patent and a final judgment was entered in our favor. NXP has appealed the judgment. We moved for attorneys’ fees on July 12, 2023 but that motion was denied on August 31, 2023. Impinj Patent Infringement Claims Against NXP in Texas On May 25, 2021, we filed a new patent infringement lawsuit against NXP USA in the United States District Court for the Western District of Texas (Waco), asserting that NXP has infringed nine of our patents, including seven that we originally asserted in the Northern California case. We also later added NXP Semiconductor Netherlands B.V. as a defendant. We are seeking, among other things, past damages, including lost profits; no less than a reasonable royalty; enhanced damages for willful infringement; and reasonable attorney’s fees and costs. We are also seeking an injunction against NXP making, selling, using, offering for sale or importing its UCODE 7, 8 and 9 endpoint ICs. On July 26, 2021, NXP filed an answer to our complaint and counterclaimed that we infringe nine patents, one of which NXP owns and eight of which NXP recently licensed from a third party. NXP denied infringement, asserted our patents are invalid and asserted that some are unenforceable and/or subject to a license under our commitments to license “necessary” patents to certain standards. The Patent Office has instituted reexamination proceedings on five of the nine patents asserted by NXP and has issued a final office action rejecting all asserted claims on three of those patents but allowing the claims on another. A claim construction hearing was held on February 10, 2022. The Court held that the case would proceed with three trials, with each side selecting three patents for each trial. The parties originally selected three patents each for the first trial scheduled to begin on October 30,2023. A Magistrate Judge decided various summary judgment and other pre-trial motions on October 12, 2023. The Magistrate Judge denied most motions but did grant NXP’s motion to prevent Impinj from seeking damages based on induced infringement for sales made outside the United States. NXP subsequently dropped one of their patents for the first trial, leaving two NXP patents for the trial. On November 9, 2023, the jury returned a verdict finding that Impinj did not infringe either of the two NXP patents and that NXP infringed all three Impinj patents. The jury rejected NXP’s other defenses and awarded Impinj approximately $ 2 million based on a total royalty of 3.26 % on the infringing products. Impinj has moved for entry of final judgment and imposition of an ongoing royalty but the briefing on that motion is not complete. The second and third trials in this case have not been scheduled. Second Impinj Patent Infringement Claims Against NXP in Texas On August 11, 2023, we filed a patent infringement case against NXP Semiconductor Netherlands B.V. in the United States District Court for the Western District of Texas, asserting the ‘302 and ‘597 patents that were found to be infringed by NXP USA, Inc. in the California case above. NXP has moved to dismiss the case and that motion is pending. NXP Patent Infringement Claims Against Impinj in China On December 7, 2020, Impinj Radio Frequency Technology (Shanghai) Co., Ltd., or Impinj Shanghai, was served with patent infringement lawsuits filed in the Intellectual Property Court in Shanghai, China, or Shanghai Intellectual Property Court, in which NXP B.V. asserted that certain of our products infringe three Chinese patents owned by NXP B.V. These patents corresponded to three of the eight U.S. patents NXP asserted in the U.S. District Court in Washington. On September 13, 2023, NXP filed petitions with the Shanghai court to withdraw all three cases without prejudice. The Shanghai court granted NXP’s petitions on September 27, 2023. With the withdrawal of all three lawsuits by NXP, all civil actions initiated by NXP against Impinj in China were concluded. However, proceedings continue at the Beijing Intellectual Property Court as to the validity of the patents that NXP previously asserted. Obligations with Third-Party Manufacturers We manufacture products with third-party manufacturers. We are committed to purchase $ 21.8 million of inventory as of December 31, 2023 . |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue | Note 13. Deferred Revenue Deferred revenue, comprising individually immaterial amounts for extended warranties, enhanced product maintenance and advance payments on NRE services contracts, represents contracted revenue that we have not yet recognized. The following table presents the changes in deferred revenue for the indicated periods (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of period $ 2,599 $ 794 Balance from acquisition 1,233 — Deferral of revenue 2,920 3,143 Recognition of deferred revenue ( 4,767 ) ( 1,338 ) Balance at end of period $ 1,985 $ 2,599 During 2023, we recognized $ 2.2 million revenue which we included in deferred revenue as of December 31, 2022. During 2022 , we recognized $ 0.4 million revenue which we included in deferred revenue as of December 31, 2021 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 14. Segment Reporting We have one reportable and operating segment: the development and sale of our products and services. We identified our reportable segment based on how our chief operating decision-maker manages our business, makes operating decisions and evaluates our operating performance. Our chief executive officer acts as the chief operating decision-maker and reviews financial and operational information on an entity-wide basis. We have one business activity and there are no segment managers who are held accountable for operations, operating results or plans for levels or components. Accordingly, we have determined that we have a single reporting segment and operating unit structure. Information by Revenue Categories Our chief executive officer reviews information about our revenue categories, endpoint ICs and systems, the latter defined as reader ICs, readers, gateways, test and measurement systems and software. The following table presents our revenue categories for the indicated periods (in thousands): Year Ended December 31, 2023 2022 2021 Endpoint ICs $ 234,426 $ 191,532 $ 139,250 Systems 73,113 66,268 51,033 Total revenue $ 307,539 $ 257,800 $ 190,283 Information by Geography The following table summarizes our long-lived assets, comprising property and equipment, less accumulated depreciation (in thousands): December 31, 2023 December 31, 2022 United States $ 14,110 $ 10,551 Malaysia 11,749 12,817 Taiwan 13,396 12,620 Others 5,636 3,039 Total $ 44,891 $ 39,027 Our geographic revenue in the following table is based on the location of the VARs, inlay manufacturers, reader OEMs, distributors or end users who purchased products and services directly from us. For sales to our resellers and distributors, their location may be different from the locations of the ultimate end users. The following table presents our sales by geography for the indicated periods (in thousands): Year Ended December 31, 2023 2022 2021 Americas $ 96,418 $ 57,129 $ 38,021 Asia Pacific 176,409 168,249 133,152 Europe, Middle East and Africa 34,712 32,422 19,110 Total revenue $ 307,539 $ 257,800 $ 190,283 Total revenue in the United States, which is included in the Americas, was $ 86.2 million, $ 43.0 million and $ 32.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Total revenue in China (and Hong Kong), which is included in Asia Pacific, was $ 128.3 million, $ 109.6 million and $ 98.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. While total revenue in Malaysia, which is included in Asia Pacific, was less than 10% of revenue for the year ended December 31, 2023, it was $ 41.0 and $ 23.6 million for the years ended December 31, 2022 and 2021, respectively. No sales to countries other than the United States, China and Malaysia accounted for more than 10% of revenue for the years ended December 31, 2023, 2022 and 2021 . |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 15. Net Loss per Share For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (in thousands, except for per-share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ ( 43,366 ) $ ( 24,301 ) $ ( 51,260 ) Denominator: Weighted-average shares outstanding — basic and diluted 26,752 25,539 24,176 Net loss per share — basic and diluted $ ( 1.62 ) $ ( 0.95 ) $ ( 2.12 ) The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net loss per share as of the dates presented because their effect would have been antidilutive (in thousands): Year Ended December 31, 2023 2022 2021 Stock options 1,466 1,712 2,288 RSUs, MSUs and PSUs 1,252 1,494 1,517 Employee stock purchase plan shares 51 26 42 2019 Notes — — 285 2021 Notes 2,589 2,589 2,589 |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Note 16. Related-Party Transactions We have been party to a consulting agreement with a limited liability company owned by Cathal Phelan, a member of our board of directors, pursuant to which Mr. Phelan provided advisory and consulting services to us. We recognized and paid $ 0.5 million in consulting fees to the limited liability company owned by Mr. Phelan for the years ended December 31, 2022 and 2021. No consulting fees were recognized and paid in the year ended December 31, 2023 y . Additionally, we granted 60,000 shares of stock options to Mr. Phelan on September 21, 2020 in connection with these consulting services, with 1/24 th of the shares subject to the option vesting on October 21, 2020 and 1/24 th of the shares subject to the option vesting on each month thereafter, subject to Mr. Phelan remaining a service provider. Further, in connection with these consulting services, we granted 8,000 RSUs to Mr. Phelan on October 1, 2022 with ¼ th of the RSUs vesting on January 1, April 1, July 1 and October 1, 2023, subject to Mr. Phelan remaining a service provider. On January 1, 2023, Mr. Phelan joined our company as Chief Innovation Officer and ceased to provide us with consulting services. Mr. Phelan remains on our board of directors as a non-independent director. On June 23, 2023, we acquired a patent from a related party in which a member of our board of directors holds an executive leadership position. The patent pertains to our endpoint IC products and the acquisition price was $ 0.3 million. The patent expires on July 17, 2026 and does not have renewal rights. This patent is included in our intangible assets on our consolidated balance sheet as of December 31, 2023. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Note 17. Retirement Plans In 2001, we adopted a salary deferral 401(k) plan for our employees. The plan allows employees to contribute a percentage of their pretax earnings annually, subject to limitations imposed by the Internal Revenue Service, and allows a matching contribution, subject to certain limitations. We contributed $ 1.8 million a nd $ 1.4 million as matching contributions for the years ended December 31, 2023 and 2022, respectively. |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 18. Restructuring On February 2, 2021, we restructured our go-to-market organization to strategically align our global sales, product, partner development and marketing teams. As part of the restructuring, we eliminated approximately seven full-time positions within our go-to-market organization, representing roughly 2 % of our workforce. We incurred restructuring charges of $ 1.7 million for employee termination benefits and other associated costs for legal expenses for the year ended December 31, 2021. Restructuring charges were immaterial for the year ended December 31, 2022 and there were no restructuring charges for the year ended December 31, 2023. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 19. Subsequent Events On February 7, 2024, we initiated a strategic restructuring to align financial, business and research and development objectives for long- term growth, including a reduction-in-force affecting approximately 10 % of our employees. We expect the reduction-in-force charges, comprising primarily severance benefits, to be in the range of $ 1.7 million to $ 2.0 million to be recognized in the first and second fiscal quarters of 2024, when the activities comprising the plan are expected to be substantially completed. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements include Impinj, Inc. and its wholly owned subsidiaries. We have eliminated intercompany balances and transactions in consolidation. We have prepared these consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP. All numbers in the consolidated financial statements are rounded to the nearest thousand, except for per share data, and numbers in the notes to the consolidated financial statements are rounded to the nearest million. |
Use of Estimates | Use of Estimates Preparing financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the financial statements, as well as the reported revenue and expenses during the periods presented. We evaluate our estimates on an ongoing basis, including those related to revenue recognition, sales incentives, the fair value of asset acquired, liabilities assumed, contingent consideration in business combinations, inventory excess and obsolescence, income taxes and fair value of stock awards. To the extent there are material differences between our estimates, judgments or assumptions and actual results, our financial statements will be affected. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments, which potentially subject us to credit-risk concentration, comprise primarily cash equivalents, investments and accounts receivable. We place our cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, to limit our investment exposure. We extend credit to customers based on our evaluation of the customer’s financial condition and generally do not require collateral. The following tables present total revenue and accounts receivable concentration for the indicated periods as of the dates presented: Year Ended December 31, 2023 2022 2021 Revenue: Avery Dennison 33 % 28 % 32 % Arizon 11 10 11 44 % 38 % 43 % As of December 31, 2023 2022 Accounts Receivable: Avery Dennison 39 % 24 % Arizon 11 13 50 % 37 % |
Concentration of Supplier Risk | Concentration of Supplier Risk We outsource the manufacturing and production of our hardware products to a small number of suppliers. We believe other suppliers could provide similar products on comparable terms if needed. However, a supplier change could delay manufacturing and cause a sales loss, which would adversely affect our operating results. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present minimal risk of changes in value with changes in interest rates. Our cash equivalents are solely investments with an original or remaining maturity of three months or less at the date of purchase. We regularly maintain cash amounts exceeding federally insured limits at financial institutions. |
Investments | Investments Our investments comprise fixed income securities, including U.S. government securities, corporate notes and bonds, commercial paper and asset-backed securities. The contractual maturities of some of our available-for-sale, or AFS, debt securities exceed a year and are classified as long-term investments on our balance sheet. We carry AFS debt securities at fair value with unrealized gains and losses reported as a component of other comprehensive income (loss). Our investments are subject to a periodic impairment review. We recognize an impairment charge when a decline in fair value of an investment below the cost basis is determined to be other-than-temporary. Factors we consider in determining whether a loss is temporary include the extent and length of time the investment's fair value has been lower than its cost basis, the financial condition and near-term prospects of the investee, our intent to sell the security and whether or not we will be required to sell the security prior to the expected recovery of the investment's amortized cost basis. No such impairment changes were recorded during the years ended December 31, 2023, 2022 and 2021. See Note 3 t ables for the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of December 31, 2023 and 2022. |
Fair Value Measurement | Fair Value Measurement Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which are internally developed, and considers risk premiums that a market participant would require. We do no t have any financial assets or liabilities in Level 3 as of December 31, 2022 or at December 31, 2023, except for the liability for the earnout consideration related to the Voyantic Oy acquisition. We have classified this liability as such because we determined the fair value using significant unobservable inputs. See Note 3: Fair Value Measurements and Note 6: Goodwill and Intangible Assets. We applied the following methods and assumptions in estimating our fair value measurements: Cash Equivalents — Cash equivalents comprise highly liquid investments, including money market funds with original maturities of less than three months at the acquisition date. We record the fair value measurement of these assets based on quoted market prices in active markets. Investments — Our investments comprise fixed income securities, which include U.S. government agency securities, corporate notes and bonds, commercial paper, treasury bills and asset-backed securities. The fair value measurement of these assets is based on observable market-based inputs or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Long-term Debt —See Note 8 for the carrying amount and estimated fair value of the Notes. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Accounts receivable comprises amounts billed and currently due from customers, net of allowances for doubtful accounts, sales returns and price exceptions. The allowance for doubtful accounts is our best estimate of the amount of probable lifetime-expected credit losses in existing accounts receivable and is determined based on our historical collections experience, age of the receivable, knowledge of the customer and the condition of the general economy and industry as a whole. We record changes in our estimate of the allowance for doubtful accounts through bad debt expense and write off the receivable and corresponding allowance when accounts are ultimately determined to be uncollectible. We include bad debt expense in general and administrative expenses. For the periods presented in this report, bad debt expense and the allowance for doubtful accounts were not material. We derive most of our accounts receivable from sales to original equipment manufacturers, or OEMs, original design manufacturers, ODMs, solution providers, and distributors who are large, well-established companies. We do not have customers that represent a significant credit risk based on current economic conditions and past collection experience. Also, we have not had material past-due balances on our accounts receivable as of December 31, 2023 or 2022. The allowance for sales returns and price exceptions is our best estimate based on our historical experience and currently available evidence. We record changes in our estimate of the allowance for sales returns and price exceptions through revenue, and relieve the allowance when we receive product returns or process claims for price exceptions. The following table summarizes our allowance for sales returns (in thousands): Balance at Beginning of Year Additional Reserve Applied Sales Return Balance at End of Year Allowance for sales returns and price exceptions: During year ended December 31, 2023 $ 605 $ 2,912 $ ( 2,840 ) $ 677 During year ended December 31, 2022 947 1,899 ( 2,241 ) 605 During year ended December 31, 2021 406 2,780 ( 2,239 ) 947 |
Inventory | Inventory We state inventories at the lower of cost or estimated net realizable value using the average costing method, which approximates a first-in, first-out method. Inventories comprise raw materials, work-in-process and finished goods. We continuously assess our inventory value and write down its value for estimated excess and obsolete inventory. This evaluation includes an analysis of inventory on hand, current and forecasted demand, product development plans and market conditions. If future demand or market conditions are less favorable than our projections, or our product development plans change from current expectations, then a write-down of excess or obsolete inventory may be required and is reflected in cost of goods sold in the period the updated information is known. Excess and obsolescence charges had an immaterial impact on our 2023 and 2022 gross margin. Sales of fully reserved inventory had a favorable net impact of 1.5 % on our 2021 gross margin. The 2021 favorable net impact was primarily from sales of fully reserved inventory, primarily endpoint ICs and readers included in the excess and obsolescence charge recorded in 2020. Because of industry-wide wafer shortages and reader supply constraints in 2021 and 2020, we sold a significant portion of the reserved endpoint ICs and gateways in the year ended December 31, 2021. |
Property and Equipment | Property and Equipment We record property and equipment at cost and depreciate it using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows: Category Useful Life Machinery and equipment 1 to 10 years Computer equipment and software 3 to 5 years Furniture and fixtures 3 to 7 years Equipment acquired under finance leases 3 to 7 years Leasehold improvements Shorter of remaining lease term or expected useful life We charge maintenance and repair costs to expense when incurred. We capitalize major improvements, which extend the useful life of the related asset. Upon disposal of a fixed asset, we record a gain or loss based on the differences between the proceeds received and the net book value of the disposed asset. |
Other Assets | Other Assets Other assets comprise primarily capitalized implementation costs from cloud computing arrangements and security deposits. We capitalize eligible costs associated with cloud computing arrangements over the term of the arrangement, plus reasonably certain renewals, and recognize those costs on a straight-line basis in the same line item in the consolidated statement of operations as the expense for fees associated with the cloud computing arrangement. Cloud computing arrangement costs, included in prepaid expenses and other current assets, were $ 0.4 million and $ 0.4 million , and other non-current assets were $ 1.4 million and $ 1.8 million , as of December 31, 2023 and 2022, respectively. Amortization expense associated with the cloud computing arrangements was $ 0.5 million for 2023, $ 0.4 million for 2022, and $ 0.2 million for 2021. We present cash flows related to capitalized implementation costs in cash flows used in operating activities. |
Business Combinations and Intangible Assets Including Goodwill | Business combinations and intangible assets including goodwill We account for business combinations using the acquisition method which involves allocating the purchase price paid to assets acquired and liabilities assumed at their acquisition-date fair values. The excess of the fair value of purchase consideration over the fair value of the identifiable assets and liabilities is recorded as goodwill. While we use our best estimates and assumptions to accurately estimate the fair value of assets acquired, liabilities assumed and the contingent consideration liability, our estimates are inherently uncertain. These estimates include, but are not limited to, estimates of future revenue, revenue growth rates, discount rates, underlying product or technology life cycles and expenses necessary to support the acquired technology, and estimated sales cycle for customer relationships. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. We review assumptions related to the fair value of the contingent consideration each reporting period until the contingency is satisfied. We recognize the change in fair value of the contingent consideration liability in “General and administrative” expense on the consolidated statements of operations for the period in which the fair value changes. We assess the impairment of goodwill on an annual basis, during the fourth quarter, or otherwise when events or changes in circumstances indicate that goodwill may be impaired. We amortize identifiable intangible assets with finite lives over their useful lives on a straight-line basis. We expense acquisition-related costs, including advisory, legal, accounting, valuation and other similar costs in the periods in which the costs are incurred. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from sales of hardware products. We also generate revenue from software, extended warranties, enhanced maintenance, support services, and nonrecurring engineering, or NRE, development services, none of which are material. We recognize revenue when we transfer control of the promised goods or services to our customers, which for hardware sales is generally at the time of product shipment as determined by agreed-upon shipping terms. We measure revenue based on the amount of consideration we expect to be entitled-to in exchange for those goods or services. We expect the period between when we transfer control of promised goods or services and when we receive payment to be one year or less, and that expectation is consistent with our historical experience. As such, we do not adjust our revenue for the effects of a significant financing component. We recognize any variable consideration, which comprises primarily sales incentives, as revenue reduction at the time of revenue recognition. We estimate sales incentives based on our historical experience and current expectations at the time of revenue recognition and update them at the end of each reporting period as additional information becomes available. Our reader and gateway products are highly dependent on embedded software and cannot function without this embedded software. We account for the hardware and embedded software as a single performance obligation and recognize revenue when control is transferred. Our customer contracts with multiple performance obligations generally include a combination of hardware products, extended warranty, enhanced maintenance and support services. For these contracts, we account for individual performance obligations separately if they are distinct. We allocate the transaction price to the separate performance obligations on a relative standalone selling-price basis. In instances where the standalone selling price is not directly observable, such as when we do not sell the product or service separately, we determine the standalone selling price using one, or a combination of, the adjusted market assessment or expected cost-plus margin. We defer amounts allocated to extended warranty and enhanced maintenance sold with our reader and gateway products and recognize them on a straight-line basis over the term of the arrangement, which is typically from one to three years . We defer amounts allocated to support services sold with our reader and gateway products and recognize them when we transfer control of the promised services to our customers. For NRE development agreements that involve significant production, modification or customization of our products, we generally recognize revenue over the performance period using the cost-input method because it best depicts the transfer of services to the customer. We receive payments under these agreements based on a billing schedule. Contract assets relate to our conditional right to consideration for our completed performance under these agreements. We record accounts receivable when the right to consideration becomes unconditional. For the periods presented in this report, our contract assets, deferred revenue and the value of unsatisfied performance obligations for NRE development agreements are not material. If a customer pays consideration before we transfer a good or service under the contract, then we classify those amounts as contract liabilities or deferred revenue. We recognize contract liabilities as revenue when we transfer control of the promised goods or services to our customers. Payment terms typically range from 30 to 120 days . We present revenue net of sales tax in our consolidated statements of operations. We include shipping charges billed to customers in revenue and the related shipping costs in cost of revenue. Practical Expedients and Exemptions: We expense sales commissions when incurred because we expect the amortization period to be one year or less. We record these costs within sales and marketing expenses. We do not disclose the value of unsatisfied performance obligations for (1) contracts with an original expected length of one year or less and (2) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
Product Warranties | Product Warranties We provide limited warranty coverage for most products, generally ranging from a period of 90 days to one year from the date of shipment. We record a liability for the estimated cost of these warranties based on historical claims, product failure rates and other factors when we recognize the related revenue. We review these estimates periodically and adjust our warranty reserves when actual experience differs from historical estimates or when other information becomes available. The warranty liability primarily includes the anticipated cost of materials, labor and shipping necessary to repair or replace the product. Accrued warranty costs in 2023, 2022 and 2021 were not material. |
Leases | Leases We determine, at inception, whether an arrangement is or contains a lease. Right-of-use, or ROU, assets represent our right to use an identified asset for the lease term. Lease liabilities represent our obligation to make lease payments arising from the lease. We recognize operating lease ROU assets and liabilities at commencement date based on the present value of future lease payments over the lease term. We use an incremental borrowing rate in determining the present value of future lease payments because our operating leases do not provide an implicit rate. Our incremental borrowing rate is based on a credit-adjusted risk-free rate, which best approximates a secured rate over a similar term of lease. We recognize lease expense for lease payments on a straight-line basis over the lease term. Our lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. We expense variable lease costs on the consolidated statements of operations as incurred. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants. We have various noncancellable operating lease agreements for office, warehouse and research and development space in the U.S., China, Thailand, Brazil, Malaysia and Finland, with expiration dates from 2024 to 2029 . Certain of these arrangements have free or escalating rent payment provisions and optional renewal and termination clauses that we factor into the classification and measurement of the lease when appropriate. These lease agreements typically include lease and non-lease components and are generally accounted for as a single lease component. We consider variable CAM expenses for real estate leases as non-lease components. We do not record leases with an initial term of 12 months or less on our consolidated balance sheet; we instead recognize lease expense for these leases on a straight-line basis over the lease term. |
Research and Development Costs | Research and Development Costs Research and development expense comprises primarily personnel expenses (salaries, benefits and other employee related costs) and stock-based compensation expense for our product-development personnel; external consulting and service costs; prototype materials; other new-product development costs; and an allocated portion of infrastructure costs which include occupancy, depreciation and software costs. |
Foreign Currency | Foreign Currency We translate the assets and liabilities of our non-U.S. dollar functional currency subsidiary into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for this subsidiary are translated using rates that approximate those in effect during the period. We recognize gains and losses from these translations as a component of accumulated other comprehensive income (loss) in stockholders' equity. Our subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and non-monetary assets and liabilities at historical rates. We have included the gains or losses from foreign currency remeasurement in earnings. |
Income Taxes | Income Taxes We use the asset and liability approach for accounting, which requires recognizing deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to be in effect when the assets and liabilities are recovered or settled. We recognize the effects of a change in tax rates on deferred tax assets and liabilities in the year of the enactment date. We determine deferred tax assets, including historical net operating losses and deferred tax liabilities, based on temporary differences between the book and tax bases of the assets and liabilities. We believe that it is currently more likely than not that our deferred tax assets will not be realized and, as such, we have recorded a full valuation allowance for these assets. We evaluate the likelihood of our ability to realize deferred tax assets in future periods on a quarterly basis, and if evidence indicates we will be able to realize some or all of our deferred tax assets then we will revise our valuation allowance accordingly. We use a two-step approach for evaluating uncertain tax positions. First, we evaluate recognition, which requires us to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes. If we consider a tax position more likely than not to be unsustained, then no benefits of the position are recognized. Second, we measure the uncertain tax position based on the largest amount of benefit which is more likely than not to be realized on effective settlement. This process involves estimating our actual current tax exposure, including assessing the risks associated with tax audits, together with assessing temporary differences resulting from the different treatment of items for tax and financial reporting purposes. If actual results differ from our estimates, then our net operating loss and credit carryforwards could be materially impacted. Us realizing the benefits of the NOLs and credit carryforwards depends on sufficient taxable income in future years. We have established a valuation allowance against the carrying value of our deferred tax assets, as it is currently more likely than not we will be unable to realize these deferred tax assets. In addition, using NOLs and credits to offset future income subject to taxes may be subject to substantial annual limitations due to the “change in ownership” provisions of the Code and similar state provisions. Events that cause limitations in the amount of NOLs that we may use in any one year include, but are not limited to, a cumulative ownership change of more than 50 %, as defined by Code Sections 382 and 383, over a three-year period. Using our NOLs and tax credit carryforwards could be significantly reduced if a cumulative ownership change of more than 50% has occurred in our past or occurs in our future. |
Stock-Based Compensation | Stock-Based Compensation We have various equity award plans, or Plans for granting share-based awards to employees, consultants and non-employee Company directors. The Plans provide for granting several available forms of stock compensation such as stock option awards, restricted stock units, or RSUs, RSUs with performance conditions, or PSUs, and RSUs with market and service conditions, or MSUs and an employee stock purchase plan, or ESPP. We measure stock-based compensation costs for all share-based awards at fair value on the measurement date, which is typically the grant date. We determine the fair value of stock options using the Black-Scholes option-pricing model, which considers, among other things, estimates and assumptions on the expected life of the options, stock price volatility and market value of the Company’s common stock. We determine the fair value of RSUs and PSUs based on the closing price of our common stock at grant date. Additionally, for awards with a market condition, we use a Monte Carlo simulation model to estimate grant date fair value, which takes into consideration the range of possible stock price of total stockholder return outcomes. |
Net Loss per Share | Net Loss per Share We compute net loss per share by dividing net loss by the weighted-average number of shares of common stock outstanding. We have outstanding stock options, RSUs, PSUs, MSUs and an ESPP, each of which we include in our calculation of diluted net loss per share if their effect would be dilutive. We compute diluted net loss per share by considering all potential dilutive common stock equivalents outstanding for the period. Upon us adopting Accounting Standard Update, or ASU, 2020-06 using the modified retrospective transition method on January 1, 2021, we applied the “if-converted” method for calculating any potential dilutive effect of the conversion of the 2019 and 2021 Notes on diluted net loss per share for the years ended December 31, 2023 and 2022. For more information about the 2019 and 2021 Notes, please refer to Note 8 to our consolidated financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In August 2020, the Financial Statement Accounting Board, or FASB, issued guidance on debt with conversion and other options, or ASU 2020-06. This guidance eliminated the beneficial and cash-conversion accounting models for convertible instruments and amends the derivative scope exception for contracts in an entity’s own equity. Additionally, this guidance requires the application of the “if-converted” method to calculate the impact of convertible instruments on diluted earnings per share. We adopted ASU 2020-06 on January 1, 2021 using the modified retrospective transition method and accounted for our 2019 Notes on a whole-instrument basis. We recorded a $ 29.3 million increase to long-term debt, a $ 32.7 million decrease to additional paid-in capital and a $ 3.4 million decrease to accumulated deficit on January 1, 2021. Interest expense decreased for the year ended December 31, 2021 compared with the years ended December 31, 2020 and December 31, 2019, respectively, as we no longer separate an equity component of the 2019 Notes and incur amortization of debt discount. We had no changes to net deferred tax liabilities, due to the decrease in deferred tax liability being offset by a corresponding increase in valuation allowance upon adoption. We present our consolidated financial statements as of and for the year ended December 31, 2021, under ASU 2020-06. We have no t adjusted the comparative prior reporting periods and continue to report them in accordance with our historical accounting policy. |
Recently Issued Accounting Standards Not Yet Adopted | Recently Issued Accounting Standards Not Yet Adopted In November 2023, the FASB released ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which amends reportable segment requirements, primarily through enhanced disclosures about significant segment expenses, including for public entities that have a single reportable segment. The standard is effective for fiscal years beginning after December 31, 2023 and interim periods within fiscal years beginning after December 31, 2024. We are currently evaluating any impact of this standard on our financial statement disclosures. In December 2023, the FASB released ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which amends income tax disclosure requirements to enhance the transparency and decision usefulness for users of the financial statements. The standard is effective for fiscal years beginning after December 31, 2024. We are currently evaluating any impact of this standard on our financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Revenue and Accounts Receivable Concentration | The following tables present total revenue and accounts receivable concentration for the indicated periods as of the dates presented: Year Ended December 31, 2023 2022 2021 Revenue: Avery Dennison 33 % 28 % 32 % Arizon 11 10 11 44 % 38 % 43 % As of December 31, 2023 2022 Accounts Receivable: Avery Dennison 39 % 24 % Arizon 11 13 50 % 37 % |
Summary of Allowance for Sales Returns | The following table summarizes our allowance for sales returns (in thousands): Balance at Beginning of Year Additional Reserve Applied Sales Return Balance at End of Year Allowance for sales returns and price exceptions: During year ended December 31, 2023 $ 605 $ 2,912 $ ( 2,840 ) $ 677 During year ended December 31, 2022 947 1,899 ( 2,241 ) 605 During year ended December 31, 2021 406 2,780 ( 2,239 ) 947 |
Schedule of Property and Equipment Estimated Useful Lives | We record property and equipment at cost and depreciate it using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows: Category Useful Life Machinery and equipment 1 to 10 years Computer equipment and software 3 to 5 years Furniture and fixtures 3 to 7 years Equipment acquired under finance leases 3 to 7 years Leasehold improvements Shorter of remaining lease term or expected useful life |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table presents the balances of assets measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 78,661 $ — $ — $ 78,661 $ 14,620 $ — $ — $ 14,620 Total cash equivalents 78,661 — — 78,661 14,620 — — 14,620 Short-term investments: U.S. government agency securities — 11,893 — 11,893 — 78,621 — 78,621 Corporate notes and bonds — — — — — 26,953 — 26,953 Commercial paper — — — — — 24,073 — 24,073 Treasury bill — — — — — 11,359 — 11,359 Yankee bonds — 1,951 — 1,951 — 1,939 — 1,939 Agency bonds — 2,994 — 2,994 — 2,882 — 2,882 Asset-backed securities — 1,602 — 1,602 — 8,321 — 8,321 Total short-term investments — 18,440 — 18,440 — 154,148 — 154,148 Long-term investments: U.S. government agency securities — — — — — 13,462 — 13,462 Yankee bonds — — — — — 1,869 — 1,869 Agency bonds — — — — — 2,983 — 2,983 Asset-backed securities — — — — — 886 — 886 Total long-term investments — — — — — 19,200 — 19,200 Total $ 78,661 $ 18,440 $ — $ 97,101 $ 14,620 $ 173,348 $ — $ 187,968 Acquisition related contingent consideration liability — — 6,180 6,180 — — — — Total liabilities at fair value $ — $ — $ 6,180 $ 6,180 $ — $ — $ — $ — |
Schedule of Additional Information of Liabilities Measured at Fair Value for Company Utilized Level 3 Inputs to Determine Fair Value | The following table presents additional information about liabilities measured at fair value for which the Company utilizes Level 3 inputs to determine fair value as of December 31, 2023: Year Ended December 31, 2023 Balance as of January 1 $ — Addition of contingent consideration liability due to acquisition 4,602 Change in fair value of contingent consideration liability due to remeasurement 1,578 Balance as of December 31 $ 6,180 |
Schedule of Cost Or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, And Total Estimated Fair Value Of Financial Assets | The following tables present the cost or amortized cost, gross unrealized gains, gross unrealized losses and total estimated fair value of our financial assets as of the dates presented (in thousands): December 31, 2023 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 78,661 $ — $ — $ 78,661 U.S. government agency securities 11,932 — ( 39 ) 11,893 Corporate notes and bonds — — — — Yankee bonds 1,956 — ( 5 ) 1,951 Commercial paper — — — — Treasury bill — — — — Agency bond 2,998 — ( 4 ) 2,994 Asset-backed securities 1,604 — ( 2 ) 1,602 Total $ 97,151 $ — $ ( 50 ) $ 97,101 December 31, 2022 Cost or Gross Gross Total Estimated Amortized Cost Unrealized Gains Unrealized Losses Fair Value Description: Money market funds $ 14,620 $ — $ — $ 14,620 U.S. government agency securities 93,065 — ( 982 ) 92,083 Corporate notes and bonds 27,133 6 ( 186 ) 26,953 Yankee bonds 3,815 — ( 7 ) 3,808 Commercial paper 24,073 — — 24,073 Treasury bill 11,361 2 ( 4 ) 11,359 Agency bond 5,863 4 ( 2 ) 5,865 Asset-backed securities 9,287 2 ( 82 ) 9,207 Total $ 189,217 $ 14 $ ( 1,263 ) $ 187,968 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table presents the detail of inventories as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Raw materials $ 21,773 $ 14,678 Work-in-process 42,217 14,525 Finished goods 33,182 17,194 Total inventory $ 97,172 $ 46,397 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The following table presents property and equipment details as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Machinery and equipment $ 57,511 $ 48,420 Computer equipment and software 3,012 3,308 Furniture and fixtures 1,333 1,303 Equipment acquired under finance leases 1,728 2,895 Leasehold improvements 12,966 10,684 Total property and equipment, gross 76,550 66,610 Less: Accumulated depreciation ( 31,659 ) ( 27,583 ) Total property and equipment, net $ 44,891 $ 39,027 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents goodwill as of December 31, 2023 (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of period $ 3,881 $ 3,881 Additions from acquisition 15,590 — Foreign currency translation adjustment 225 — Total $ 19,696 $ 3,881 |
Schedule of Intangible Assets | As of December 31, 2023, intangible assets comprised of the following (in thousands): Estimated Useful Life in Years Gross Carrying Amount Accumulated Amortization Net Definite-lived intangible assets: Backlog 0.25 $ 773 $ ( 773 ) $ — Customer Relationships 1 3,698 ( 2,773 ) 925 Developed Technology 7.25 13,024 ( 1,348 ) 11,676 Patent 3 250 ( 38 ) 212 Tradename 8 1,214 ( 114 ) 1,100 Total definite-lived intangible assets (1) 18,959 ( 5,046 ) 13,913 (1) Foreign intangible asset carrying amounts are affected by foreign currency translation |
Schedule of Estimated Intangible Asset Amortization Expense | As of December 31, 2023, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) 2024 2,956 2025 2,032 2026 1,993 2027 1,948 2028 1,948 Thereafter 3,036 Total $ 13,913 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income (Loss) before Income Taxes | The following table presents U.S. and foreign components of income (loss) before income taxes (in thousands): Year Ended December 31, 2023 2022 2021 U.S. $ ( 40,349 ) $ ( 24,508 ) $ ( 51,488 ) Foreign ( 3,339 ) 391 381 Loss before income taxes $ ( 43,688 ) $ ( 24,117 ) $ ( 51,107 ) |
Summary of Income Tax Expense | The following table presents the detail of income tax benefit (expense) for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Current: U.S. - Federal $ — $ — $ — U.S. - State ( 163 ) ( 68 ) ( 8 ) Foreign ( 446 ) ( 110 ) ( 137 ) ( 609 ) ( 178 ) ( 145 ) Deferred: U.S. - Federal ( 53 ) 5 ( 7 ) U.S. - State — ( 11 ) ( 1 ) Foreign 984 — — 931 ( 6 ) ( 8 ) Total income tax expense $ 322 $ ( 184 ) $ ( 153 ) |
Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate | The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented: Year Ended December 31, 2023 2022 2021 U.S. Statutory Rate 21.0 % 21.0 % 21.0 % Change in valuation allowance ( 42.0 ) ( 54.7 ) ( 33.3 ) State taxes (net of federal benefit) 0.1 0.4 0.2 Federal research and development credit 18.6 16.5 8.5 Stock-based compensation 10.4 16.1 10.2 Inducement premium — 5.0 ( 4.7 ) Unrecognized tax benefits ( 4.7 ) ( 4.1 ) ( 2.1 ) Other, net ( 2.8 ) ( 1.0 ) ( 0.1 ) Effective income tax rate 0.7 % ( 0.8 %) ( 0.3 %) |
Summary of Significant Components Deferred Tax Assets and Liabilities | Deferred federal, state and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for tax purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in thousands): December 31, 2023 December 31, 2022 Net operating loss carryforwards $ 49,228 $ 53,157 Credit carryforwards 22,971 16,868 Capitalized research and development 32,988 17,072 Operating lease liabilities 2,569 3,011 Allowances 1,624 1,398 Deferred revenue 48 74 Stock-based compensation 6,351 6,041 Disallowed interest expense — 676 Inventory cost capitalization 1,433 791 Deferred tax assets 117,211 99,088 Less: Valuation allowance ( 114,040 ) ( 95,710 ) Net deferred tax assets 3,171 3,378 Deferred tax liability: Goodwill ( 823 ) ( 796 ) Depreciation and amortization ( 3,326 ) ( 475 ) Operating lease ROU assets ( 1,933 ) ( 2,226 ) Deferred tax liabilities ( 6,082 ) ( 3,497 ) Net deferred tax liability $ ( 2,911 ) $ ( 119 ) |
Total Balance of Unrecognized Tax Benefits | The following table presents the total balance of unrecognized tax benefits as of the dates presented (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 5,606 $ 4,609 $ 3,519 Gross increase to tax positions in current periods 2,034 997 1,090 Balance at end of period $ 7,640 $ 5,606 $ 4,609 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Principal Amount and Carrying Value | The following table presents the outstanding principal amount and carrying value of the 2021 Notes as of the dates indicated (in thousands): December 31, 2023 December 31, 2022 Principal Amount Unamortized debt issuance costs Net Carrying Amount Principal Amount Unamortized debt issuance costs Net Carrying Amount 2021 Notes 287,500 ( 5,645 ) 281,855 287,500 ( 7,256 ) 280,244 |
Schedule of Notes | Further details of the 2021 Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) (1) 2021 Notes May 15, 2027 1.125 % May 15, 2022 1.72 % May 15; November 15 9.0061 $ 111.04 2.6 |
Schedule of Interest Expense | Interest expense related to the Notes was as follows (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 Year Ended December 31, 2021 2021 Notes 2019 Notes 2021 Notes Total 2019 Notes 2021 Notes Total Amortization of debt issuance costs 1,612 19 1,583 1,602 329 239 568 Cash interest expense 3,236 87 3,234 3,321 1,488 494 1,982 Total interest expense $ 4,848 $ 106 $ 4,817 $ 4,923 $ 1,817 $ 733 $ 2,550 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table presents the detail of stock-based compensation expense amounts included in our consolidated statements of operations for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenue $ 1,869 $ 1,522 $ 1,869 Research and development expense 21,307 17,961 17,170 Sales and marketing expense 10,240 9,447 9,496 General and administrative expense 14,570 13,513 11,963 Total stock-based compensation expense $ 47,986 $ 42,443 $ 40,498 |
Summary of Stock Options Activity | The following table summarizes option award activity for the year ended December 31, 2023 (in thousands, except per share data and years): Number of Weighted-Average Weighted-Average Total Intrinsic Outstanding at December 31, 2022 1,712 $ 25.09 5.92 $ 143,996 Granted — — Exercised ( 243 ) 22.72 Forfeited or expired ( 3 ) 27.72 Outstanding at December 31, 2023 1,466 25.48 4.97 94,650 Vested and exercisable at December 31, 2023 1,408 $ 25.35 4.91 $ 91,089 |
Schedule of Stock Options Valuation Assumptions | We estimate the fair value of options granted at the date of grant using the Black-Scholes option-pricing model with the following assumptions for the periods presented: Year Ended December 31, 2023 2022 2021 Risk-free interest rate N/A N/A 0.8 % - 1.2 % Expected dividends yield N/A N/A None Expected volatility N/A N/A 71.2 % - 72.4 % Weighted-average expected term N/A N/A 6.08 Weighted-average fair value of options granted N/A N/A $ 36.94 |
Summary of Restricted Stock Units | The following table summarizes activity for restricted stock units, or RSUs, PSUs, and MSUs for the year ended December 31, 2023 (in thousands, except per share data): Number of Underlying Shares Weighted-Average Grant Date Fair Value RSUs MSUs PSUs RSUs MSUs PSUs Outstanding at December 31, 2022 1,310 110 74 $ 56.92 $ 80.40 $ 64.03 Granted 441 126 — 119.12 145.51 — Vested ( 633 ) ( 58 ) ( 57 ) 52.92 39.15 64.03 Forfeited ( 40 ) ( 4 ) ( 17 ) 71.49 185.49 64.03 Outstanding at December 31, 2023 1,078 174 — $ 84.18 $ 138.77 $ — We record stock-based compensation expense for RSUs and MSUs on a straight-line basis over the requisite service period, which is generally the vesting period. We record stock-based compensation for PSUs based on the probability of achieving the performance criteria defined in the PSU agreements. Forfeitures are recognized as they occur. |
Summary of Information Related to Granted and Vested RSUs, PSUs and MSUs | The following table summarizes information related to granted and vested RSUs, PSUs, and MSUs (in thousands, except per share data): Year Ended December 31, 2023 2022 2021 RSU weighted-average grant date fair value $ 119.12 $ 65.81 $ 56.40 MSU weighted-average grant date fair value 145.51 81.22 77.01 PSU weighted-average grant date fair value $ — $ 64.07 $ 54.67 Fair market value of RSUs vested $ 64,417 $ 32,871 $ 18,228 Fair market value of MSUs vested 7,219 — — Fair market value of PSUs vested $ 7,261 $ 18,873 $ 15,384 |
Schedule of Employee Stock Purchase Plan Valuation Assumptions | We estimate the fair value of the ESPP grant at the start of the offering period using the Black-Scholes option-pricing model with the following assumptions for the periods presented: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 5.1 % - 5.6 % 0.7 % - 3.2 % 0.0 % - 0.1 % Expected term 0.5 Years 0.5 Years 0.5 Years Expected volatility 64.7 % - 85.9 % 71.9 % - 76.3 % 61.0 % - 65.8 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents the components of lease expense in our consolidated statements of operations for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Operating lease costs (1) Single lease costs $ 3,486 $ 4,299 $ 4,154 Variable lease costs 1,280 2,159 1,910 Sublease income (2) ( 165 ) ( 1,976 ) ( 1,900 ) Total operating lease costs $ 4,601 $ 4,482 $ 4,164 (1) Includes short-term lease costs, which are immaterial. (2) Sublease income is related to unused office space that we sublet as part of the fiscal 2018 restructuring where we continue to have the primary obligations. |
Supplemental Cash Flow Information Related to Operating Leases | The following table presents supplemental cash flow information related to operating leases for the periods presented (in thousands): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows used $ 4,233 $ 5,097 $ 4,895 Lease liabilities arising from remeasurement of right-of-use assets Operating leases $ 159 $ — $ 698 Lease liabilities arising from obtaining ROU assets Operating leases $ 1,690 $ 2,237 $ — |
Schedule of Weighted-Average Remaining Lease Terms and Weighted-Average Discount Rate Related to Operating Leases | The following table presents weighted-average remaining lease term and weighted-average discount rate related to operating leases as of: 2023 2022 Weighted-average remaining lease term (years) 3.7 4.3 Weighted-average discount rate 6.9 % 6.9 % |
Schedule of Future Lease Payments under Operating Leases | The following table presents future lease payments under operating leases as of December 31, 2023 (in thousands): Operating Leases Lease Payments 2024 $ 4,120 2025 4,129 2026 4,201 2027 775 2028 642 Thereafter 549 Total lease payments $ 14,416 Less: Imputed interest ( 1,683 ) Present value of lease liabilities 12,733 Less: Current portion of lease liabilities 3,373 Lease liabilities, net of current portion $ 9,360 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Revenue Disclosure [Abstract] | |
Summary of Changes in Deferred Revenue | The following table presents the changes in deferred revenue for the indicated periods (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of period $ 2,599 $ 794 Balance from acquisition 1,233 — Deferral of revenue 2,920 3,143 Recognition of deferred revenue ( 4,767 ) ( 1,338 ) Balance at end of period $ 1,985 $ 2,599 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue Categories | The following table presents our revenue categories for the indicated periods (in thousands): Year Ended December 31, 2023 2022 2021 Endpoint ICs $ 234,426 $ 191,532 $ 139,250 Systems 73,113 66,268 51,033 Total revenue $ 307,539 $ 257,800 $ 190,283 |
Summary of Long-lived Assets by Geography | The following table summarizes our long-lived assets, comprising property and equipment, less accumulated depreciation (in thousands): December 31, 2023 December 31, 2022 United States $ 14,110 $ 10,551 Malaysia 11,749 12,817 Taiwan 13,396 12,620 Others 5,636 3,039 Total $ 44,891 $ 39,027 |
Summary of Sales by Geography | The following table presents our sales by geography for the indicated periods (in thousands): Year Ended December 31, 2023 2022 2021 Americas $ 96,418 $ 57,129 $ 38,021 Asia Pacific 176,409 168,249 133,152 Europe, Middle East and Africa 34,712 32,422 19,110 Total revenue $ 307,539 $ 257,800 $ 190,283 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share | For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net loss per share (in thousands, except for per-share amounts): Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ ( 43,366 ) $ ( 24,301 ) $ ( 51,260 ) Denominator: Weighted-average shares outstanding — basic and diluted 26,752 25,539 24,176 Net loss per share — basic and diluted $ ( 1.62 ) $ ( 0.95 ) $ ( 2.12 ) |
Computation of Diluted Net Loss Per Share Effect in Antidilutive | The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net loss per share as of the dates presented because their effect would have been antidilutive (in thousands): Year Ended December 31, 2023 2022 2021 Stock options 1,466 1,712 2,288 RSUs, MSUs and PSUs 1,252 1,494 1,517 Employee stock purchase plan shares 51 26 42 2019 Notes — — 285 2021 Notes 2,589 2,589 2,589 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable Concentration (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Customer Concentration Risk | Revenue | Avery Dennison | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 33% | 28% | 32% |
Customer Concentration Risk | Revenue | Arizon | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11% | 10% | 11% |
Customer Concentration Risk | Revenue | Top Two Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 44% | 38% | 43% |
Credit Concentration Risk | Accounts Receivable | Avery Dennison | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 39% | 24% | |
Credit Concentration Risk | Accounts Receivable | Arizon | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11% | 13% | |
Credit Concentration Risk | Accounts Receivable | Top Four Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 50% | 37% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Significant Accounting Policies [Line Items] | ||||
Inventory excess and obsolescence charges, unfavorable impact on gross margin percentage | 1.50% | |||
Amortization expense associated with cloud computing arrangements | $ 500,000 | $ 400,000 | $ 200,000 | |
Sales commissions maximum amortization period | 1 year | |||
Sales contracts with original expected length | one year or less | |||
Cumulative ownership change percentage | 50% | |||
Cumulative change in ownership period | 3 years | |||
Investment impairment charges | $ 0 | 0 | $ 0 | |
Long-term debt | 281,855,000 | 280,244,000 | ||
Additional paid in capital | (463,900,000) | (403,599,000) | ||
Accumulated deficit | $ 430,151,000 | 386,785,000 | ||
ASU 2020-06 | ||||
Significant Accounting Policies [Line Items] | ||||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2021 | |||
Change in accounting principle, accounting standards update, immaterial effect | false | |||
ASU 2020-06 | Change in Accounting Method Accounted for as Change in Estimate | Revision of Prior Period, Accounting Standards Update, Adjustment | ||||
Significant Accounting Policies [Line Items] | ||||
Long-term debt | $ 29,300,000 | |||
Additional paid in capital | 32,700,000 | |||
Accumulated deficit | $ 3,400,000 | |||
Level 3 | ||||
Significant Accounting Policies [Line Items] | ||||
Assets measured at fair value | $ 0 | 0 | ||
Financial liabilities, fair value | $ 0 | 0 | ||
Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Expected revenue recognition term | 1 year | |||
Extended warranty and enhanced maintenance term | 3 years | |||
Payment Terms | 120 days | |||
Product warranty coverage period | 1 year | |||
Lease expiration year | 2029 | |||
Minimum | ||||
Significant Accounting Policies [Line Items] | ||||
Extended warranty and enhanced maintenance term | 1 year | |||
Payment Terms | 30 days | |||
Product warranty coverage period | 90 days | |||
Lease expiration year | 2024 | |||
Prepaid Expenses and Other Current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Cloud computing arrangement costs | $ 400,000 | 400,000 | ||
Other Non-current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Cloud computing arrangement costs | $ 1,400,000 | $ 1,800,000 | ||
2021 Convertible Senior Notes due 2027 | ||||
Significant Accounting Policies [Line Items] | ||||
Debt instrument, maturity year | 2027 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Allowance for Sales Returns (Details) - Allowance for Sales Returns and Price Exceptions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 605 | $ 947 | $ 406 |
Additional Reserve | 2,912 | 1,899 | 2,780 |
Applied Sales Return | 2,840 | (2,241) | (2,239) |
Balance at End of Year | $ 677 | $ 605 | $ 947 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Lives (Details) | Dec. 31, 2023 |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Minimum | Machinery and Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 1 year |
Minimum | Computer Equipment and Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 3 years |
Minimum | Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 3 years |
Minimum | Equipment Acquired Under Finance Leases | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 3 years |
Maximum | Machinery and Equipment | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 10 years |
Maximum | Computer Equipment and Software | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 5 years |
Maximum | Furniture and Fixtures | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 7 years |
Maximum | Equipment Acquired Under Finance Leases | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives (Years) | 7 years |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 97,101,000 | $ 187,968,000 |
Acquisition-related contingent consideration liability | 6,180,000 | |
Total liabilities at fair value | 6,180,000 | |
Cash Equivalents | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 78,661,000 | 14,620,000 |
Cash Equivalents | Money Market Funds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 78,661,000 | 14,620,000 |
Short-term Investments | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 18,440,000 | 154,148,000 |
Short-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 11,893,000 | 78,621,000 |
Short-term Investments | Corporate Notes and Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 26,953,000 | |
Short-term Investments | Commercial Paper | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 24,073,000 | |
Short-term Investments | Treasury Bill | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 11,359,000 | |
Short-term Investments | Yankee Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 1,951,000 | 1,939,000 |
Short-term Investments | Agency Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 2,994,000 | 2,882,000 |
Short-term Investments | Asset-Backed Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 1,602,000 | 8,321,000 |
Long-term Investments | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 19,200,000 | |
Long-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 13,462,000 | |
Long-term Investments | Yankee Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 1,869,000 | |
Long-term Investments | Agency Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 2,983,000 | |
Long-term Investments | Asset-Backed Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 886,000 | |
Level 1 | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 78,661,000 | 14,620,000 |
Level 1 | Cash Equivalents | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 78,661,000 | 14,620,000 |
Level 1 | Cash Equivalents | Money Market Funds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 78,661,000 | 14,620,000 |
Level 2 | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 18,440,000 | 173,348,000 |
Level 2 | Short-term Investments | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 18,440,000 | 154,148,000 |
Level 2 | Short-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 11,893,000 | 78,621,000 |
Level 2 | Short-term Investments | Corporate Notes and Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 26,953,000 | |
Level 2 | Short-term Investments | Commercial Paper | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 24,073,000 | |
Level 2 | Short-term Investments | Treasury Bill | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 11,359,000 | |
Level 2 | Short-term Investments | Yankee Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 1,951,000 | 1,939,000 |
Level 2 | Short-term Investments | Agency Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 2,994,000 | 2,882,000 |
Level 2 | Short-term Investments | Asset-Backed Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 1,602,000 | 8,321,000 |
Level 2 | Long-term Investments | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 19,200,000 | |
Level 2 | Long-term Investments | U.S. Government Agency Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 13,462,000 | |
Level 2 | Long-term Investments | Yankee Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 1,869,000 | |
Level 2 | Long-term Investments | Agency Bonds | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 2,983,000 | |
Level 2 | Long-term Investments | Asset-Backed Securities | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 886,000 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | $ 0 |
Level 3 | Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Acquisition-related contingent consideration liability | 6,180,000 | |
Total liabilities at fair value | $ 6,180,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Additional Information of Liabilities Measured at Fair Value for Company Utilized Level 3 Inputs to Determine Fair Value (Details) - Contingent Consideration Liability $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Addition of contingent consideration liability due to acquisition | $ 4,602 |
Change in fair value of contingent consideration liability due to remeasurement | 1,578 |
Ending balance | $ 6,180 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities continuous loss position for less than 12 months, estimated fair value | $ 10,200,000 | $ 125,600,000 |
Marketable securities continuous loss position for less than 12 months, unrealized losses | 20,000 | 1,200,000 |
Marketable securities continuous loss position for greater than 12 months, estimated fair value | 8,200,000 | 13,900,000 |
Marketable securities continuous loss position for greater than 12 months, unrealized losses | $ 30,000 | 100,000 |
2021 Convertible Senior Notes due 2027 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Debt instrument, maturity year | 2027 | |
Accrued Expenses And Other Current Liabilities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration liability | $ 6,200,000 | |
General and Administrative Expense | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value of the contingent consideration liability measurement additional expense | 1,600,000 | |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 97,101,000 | $ 187,968,000 |
Liabilities measured at fair value | 6,180,000 | |
Contingent consideration liability | 6,180,000 | |
Fair Value Measurements Recurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | 6,180,000 | |
Contingent consideration liability | $ 6,180,000 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Cost Or Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, And Total Estimated Fair Value Of Financial Assets (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | $ 97,151 | $ 189,217 |
Gross Unrealized Gains | 14 | |
Gross Unrealized Losses | (50) | (1,263) |
Total Estimated Fair Value | 97,101 | 187,968 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 78,661 | 14,620 |
Total Estimated Fair Value | 78,661 | 14,620 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 11,932 | 93,065 |
Gross Unrealized Losses | (39) | (982) |
Total Estimated Fair Value | 11,893 | 92,083 |
Corporate Notes and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 27,133 | |
Gross Unrealized Gains | 6 | |
Gross Unrealized Losses | (186) | |
Total Estimated Fair Value | 26,953 | |
Yankee Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 1,956 | 3,815 |
Gross Unrealized Losses | (5) | (7) |
Total Estimated Fair Value | 1,951 | 3,808 |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 24,073 | |
Total Estimated Fair Value | 24,073 | |
Treasury Bill | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 11,361 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (4) | |
Total Estimated Fair Value | 11,359 | |
Agency Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 2,998 | 5,863 |
Gross Unrealized Gains | 4 | |
Gross Unrealized Losses | (4) | (2) |
Total Estimated Fair Value | 2,994 | 5,865 |
Asset-Backed Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cost or Amortized Cost | 1,604 | 9,287 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (2) | (82) |
Total Estimated Fair Value | $ 1,602 | $ 9,207 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 21,773 | $ 14,678 |
Work-in-process | 42,217 | 14,525 |
Finished goods | 33,182 | 17,194 |
Total inventory | $ 97,172 | $ 46,397 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 76,550,000 | $ 66,610,000 |
Less: Accumulated depreciation | (31,659,000) | (27,583,000) |
Total property and equipment, net | 44,891,000 | 39,027,000 |
Machinery and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 57,511,000 | 48,420,000 |
Computer Equipment and Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 3,012,000 | 3,308,000 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 1,333,000 | 1,303,000 |
Equipment Acquired Under Finance Leases | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 1,728,000 | 2,895,000 |
Total property and equipment, net | 0 | 0 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 12,966,000 | $ 10,684,000 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property Plant And Equipment [Line Items] | |||
Depreciation | $ 8,700,000 | $ 6,000,000 | $ 4,600,000 |
Property and equipment, net | 44,891,000 | 39,027,000 | |
Equipment Acquired Under Finance Leases | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment, net | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Apr. 03, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||||
Weighted average life of intangible assets | 6 years | |||
Amortization expense of intangible assets | $ 4,953,000 | $ 0 | ||
Goodwill | 19,696,000 | $ 3,881,000 | $ 3,881,000 | |
Deferred tax liability | $ 3,700,000 | |||
Accrued Expenses And Other Current Liabilities | ||||
Goodwill [Line Items] | ||||
Contingent consideration liability | $ 6,200,000 | |||
Voyantic Oy | ||||
Goodwill [Line Items] | ||||
Purchase price | 32,700,000 | |||
Consideration value of common stock | 3,600,000 | |||
Fair value of net assets acquired | 2,400,000 | |||
Goodwill | 15,600,000 | |||
Intangible assets | 18,400,000 | |||
Deferred tax liability | 3,700,000 | |||
Deferred payments | 4,600,000 | |||
Voyantic Oy | General and Administrative Expense | ||||
Goodwill [Line Items] | ||||
Transaction-related costs for acquisition | 1,700,000 | |||
Contingent consideration additional amount | $ 1,600,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balance at beginning of period | $ 3,881 |
Additions from acquisition | 15,590 |
Foreign currency translation adjustment | 225 |
Total | $ 19,696 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life in Years | 6 years |
Gross Carrying Amount | $ 18,959 |
Accumulated Amortization | (5,046) |
Net Total | $ 13,913 |
Backlog | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life in Years | 3 months |
Gross Carrying Amount | $ 773 |
Accumulated Amortization | $ (773) |
Customer Relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life in Years | 1 year |
Gross Carrying Amount | $ 3,698 |
Accumulated Amortization | (2,773) |
Net Total | $ 925 |
Developed Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life in Years | 7 years 3 months |
Gross Carrying Amount | $ 13,024 |
Accumulated Amortization | (1,348) |
Net Total | $ 11,676 |
Patent | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life in Years | 3 years |
Gross Carrying Amount | $ 250 |
Accumulated Amortization | (38) |
Net Total | $ 212 |
Trade Names | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life in Years | 8 years |
Gross Carrying Amount | $ 1,214 |
Accumulated Amortization | (114) |
Net Total | $ 1,100 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Intangible Asset Amortization Expense (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2024 | $ 2,956 |
2025 | 2,032 |
2026 | 1,993 |
2027 | 1,948 |
2028 | 1,948 |
Thereafter | 3,036 |
Net Total | $ 13,913 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (40,349) | $ (24,508) | $ (51,488) |
Foreign | (3,339) | 391 | 381 |
Loss before income taxes | $ (43,688) | $ (24,117) | $ (51,107) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
U.S. - State | $ (163) | $ (68) | $ (8) |
Foreign | (446) | (110) | (137) |
Total current | (609) | (178) | (145) |
Deferred: | |||
U.S. - Federal | (53) | 5 | (7) |
U.S. - State | (11) | (1) | |
Foreign | 984 | ||
Total deferred | 931 | (6) | (8) |
Total income tax expense | $ 322 | $ (184) | $ (153) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. Statutory Rate | 21% | 21% | 21% |
Change in valuation allowance | (42.00%) | (54.70%) | (33.30%) |
State taxes (net of federal benefit) | 0.10% | 0.40% | 0.20% |
Federal research and development credit | 18.60% | 16.50% | 8.50% |
Stock-based compensation | 10.40% | 16.10% | 10.20% |
Inducement premium | 5% | (4.70%) | |
Unrecognized tax benefits | (4.70%) | (4.10%) | (2.10%) |
Other, net | (2.80%) | (1.00%) | (0.10%) |
Effective income tax rate | 0.70% | (0.80%) | (0.30%) |
Income Taxes - Summary of Signi
Income Taxes - Summary of Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 49,228 | $ 53,157 |
Credit carryforwards | 22,971 | 16,868 |
Capitalized research and development | 32,988 | 17,072 |
Operating lease liabilities | 2,569 | 3,011 |
Allowances | 1,624 | 1,398 |
Deferred revenue | 48 | 74 |
Stock-based compensation | 6,351 | 6,041 |
Disallowed interest expense | 676 | |
Inventory cost capitalization | 1,433 | 791 |
Deferred tax assets | 117,211 | 99,088 |
Less: Valuation allowance | (114,040) | (95,710) |
Net deferred tax assets | 3,171 | 3,378 |
Deferred tax liability: | ||
Goodwill | (823) | (796) |
Depreciation and amortization | (3,326) | (475) |
Operating lease ROU assets | (1,933) | (2,226) |
Deferred tax liabilities | (6,082) | (3,497) |
Net deferred tax liability | $ (2,911) | $ (119) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Apr. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | |||||
Deferred tax liability | $ 3,700,000 | ||||
Accumulated federal tax losses | $ 230,500,000 | $ 249,300,000 | |||
Accumulated federal tax losses with indefinite life | 141,900,000 | ||||
Accumulated state tax losses | 21,300,000 | 21,700,000 | |||
Research and development credit carry-forwards | $ 30,500,000 | 22,300,000 | |||
Federal tax losses and research and development credit carryforward expiration year | 2020 | ||||
Unrecognized tax benefits | $ 7,640,000 | $ 5,606,000 | $ 4,609,000 | $ 3,519,000 | |
Accrued interest and penalties related to unrecognized tax benefits | 0 | ||||
Unrecognized tax benefits, if recognized would impact the effective tax rate | 0 | ||||
Tax cut job act, impact of provision in deferred tax assets | $ 32,900,000 | ||||
Voyantic Oy | |||||
Income Tax Disclosure [Line Items] | |||||
Deferred tax liability | $ 3,700,000 |
Income Taxes - Total Balance of
Income Taxes - Total Balance of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of period | $ 5,606 | $ 4,609 | $ 3,519 |
Gross increase to tax positions in current periods | 2,034 | 997 | 1,090 |
Balance at end of period | $ 7,640 | $ 5,606 | $ 4,609 |
Long-term Debt - Summary of Out
Long-term Debt - Summary of Outstanding Principal Amount and Carrying Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Nov. 30, 2021 |
2019 Convertible Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ (200) | $ (1,800) | ||
2021 Convertible Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 287,500 | $ 287,500 | ||
Unamortized debt issuance costs | (5,645) | (7,256) | ||
Net Carrying Amount | $ 281,855 | $ 280,244 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Dec. 11, 2019 | Jun. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Dec. 31, 2019 USD ($) Days $ / shares | Dec. 31, 2023 USD ($) Days | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt instrument, threshold trading days | Days | 5 | |||||||
Number of business day | Days | 5 | |||||||
Long-term debt | $ 281,855 | $ 280,244 | ||||||
Additional paid in capital | (463,900) | (403,599) | ||||||
Accumulated deficit | 430,151 | 386,785 | ||||||
Induced conversion expense related to convertible notes | 2,232 | $ 11,333 | ||||||
ASU 2020-06 | Change in Accounting Method Accounted for as Change in Estimate | Revision of Prior Period, Accounting Standards Update, Adjustment | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 29,300 | |||||||
Additional paid in capital | 32,700 | |||||||
Accumulated deficit | $ 3,400 | |||||||
2021 Convertible Promissory Notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 287,500 | |||||||
Debt instrument, maturity date | May 15, 2027 | |||||||
2021 Convertible Promissory Notes due 2027 | Level 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Estimated fair value | 314,000 | 347,400 | ||||||
2019 Convertible Senior Notes due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 86,300 | |||||||
Repurchase of debt principal amount | $ 9,900 | $ 76,400 | ||||||
Debt instrument, borrowing interest rate percentage | 9.90% | |||||||
Fair value of liability component upon issuance | $ 52,500 | |||||||
Initial carrying amount of liability component recognized as debt discount | 33,800 | |||||||
Proceeds from convertible debt | 86,300 | |||||||
Adjustments recorded in additional paid-in capital | 33,800 | |||||||
Total issuance costs | 2,800 | |||||||
Liability issuance costs | 1,700 | |||||||
Equity issuance costs | $ 1,100 | |||||||
Cap price of the capped call transactions | $ / shares | $ 54.2 | |||||||
Capped call transactions expiration consecutive days | Days | 40 | |||||||
Capped call transaction expiring date | Dec. 11, 2026 | |||||||
Payment of 2019 Notes | 17,600 | 183,600 | ||||||
Induced conversion expense related to convertible notes | 2,200 | 11,300 | ||||||
Unamortized debt issuance costs | 200 | 1,800 | ||||||
2019 Convertible Senior Notes due 2026 | 2019 Note Repurchase | ||||||||
Debt Instrument [Line Items] | ||||||||
Payment of 2019 Notes | 17,600 | 183,600 | ||||||
Repurchase of debt principal amount | $ 9,900 | $ 76,400 | ||||||
2021 Convertible Senior Notes due 2027 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, maturity date | May 15, 2027 | |||||||
Net proceeds from issuing notes | $ 278,400 | |||||||
Total issuance costs | $ 9,100 | |||||||
Accrued interest | 400 | 400 | ||||||
Unamortized debt issuance costs | $ 5,645 | $ 7,256 | ||||||
Convertible Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, threshold consecutive trading days | Days | 30 | |||||||
Debt instrument, threshold percentage of stock price trigger | 130% | |||||||
Debt instrument, terms of conversion feature | Regardless of the foregoing circumstances, holders may convert all or any portion of the 2021 Notes, in increments of $1,000 principal amount, on or after February 15, 2027, until the close of business on the second scheduled trading day immediately preceding the maturity date. | |||||||
Percentage of repurchase price of principal amount | 100% | |||||||
Convertible Senior Notes | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, threshold trading days | Days | 20 | |||||||
Convertible Senior Notes | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, threshold percentage of stock price trigger | 98% |
Long-term Debt - Schedule of No
Long-term Debt - Schedule of Notes (Details) - 2021 Notes Unit in Millions | 1 Months Ended |
Nov. 30, 2021 Unit $ / shares shares | |
Debt Instrument [Line Items] | |
Maturity Date | May 15, 2027 |
Interest Rate | 1.125% |
First Interest Payment Date | May 15, 2022 |
Effective Interest Rate | 1.72% |
Semi-Annual Interest Payment Dates | May 15; November 15 |
Initial Conversion Rate per $1,000 Principal | shares | 9.0061 |
Initial Conversion Price | $ / shares | $ 111.04 |
Number of Shares (in millions) | Unit | 2.6 |
Long-term Debt - Schedule of In
Long-term Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2019 Convertible Senior Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 19 | $ 329 | |
Cash interest expense | 87 | 1,488 | |
Total interest expense | 106 | 1,817 | |
2021 Convertible Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 1,612 | 1,583 | 239 |
Cash interest expense | 3,236 | 3,234 | 494 |
Total interest expense | $ 4,848 | 4,817 | 733 |
Convertible Senior Notes | |||
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | 1,602 | 568 | |
Cash interest expense | 3,321 | 1,982 | |
Total interest expense | $ 4,923 | $ 2,550 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, shares authorized | 495,000,000 | 495,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, voting rights | Each holder of the common stock is entitled to one vote per common share |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 47,986 | $ 42,443 | $ 40,498 |
Cost of Revenue | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 1,869 | 1,522 | 1,869 |
Research and Development Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 21,307 | 17,961 | 17,170 |
Selling and Marketing Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 10,240 | 9,447 | 9,496 |
General and Administrative Expense | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 14,570 | $ 13,513 | $ 11,963 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Stock based compensation expense | $ 47,986 | $ 42,443 | $ 40,498 | |||
Stock Option | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total intrinsic value of options exercised | 19,100 | 31,900 | 33,700 | |||
Total grant date fair value of options vested | 3,300 | 7,000 | 12,800 | |||
Unrecognized stock-based compensation cost | $ 900 | |||||
Unrecognized stock-based compensation cost, period for recognition | 6 months | |||||
Performance Share Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Total fair market value of RSUs/PSUs/MSUs vested | $ 7,261 | 18,873 | 15,384 | |||
Restricted Stock Units | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation cost | $ 78,400 | |||||
Unrecognized stock-based compensation cost, period for recognition | 2 years 4 months 24 days | |||||
Total fair market value of RSUs/PSUs/MSUs vested | $ 64,417 | $ 32,871 | $ 18,228 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 441,000 | |||||
MSU | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation cost, period for recognition | 1 year 3 months 18 days | |||||
Total fair market value of RSUs/PSUs/MSUs vested | $ 7,219 | |||||
Unrecognized stock-based compensation cost | $ 13,700 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 126,000 | |||||
2016 Equity Incentive Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Incentive plan effective date | Jul. 31, 2016 | |||||
Shares of common stock reserved for future issuance, description | The number of shares of common stock reserved for issuance under the 2016 Plan may increase on January 1 of each year, beginning on January 1, 2017 and ending on and including January 1, 2026, by the lesser of (1) 1,825,000 shares; (2) 5% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year; and (3) a lesser number of shares determined by our board of directors. | |||||
Options granted, maximum term | 10 years | |||||
Options granted, exercisable term | 4 years | |||||
Common stock available for future grants | 2,800,000 | |||||
2016 Equity Incentive Plan | Lower of Potential Outcome One | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock capital incremental shares reserved for future issuance each year | 1,825,000 | |||||
2016 Equity Incentive Plan | Lower of Potential Outcome Two | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Percentage of total number of shares of common stock outstanding | 5% | |||||
2016 Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Common stock capital incremental shares reserved for future issuance each year | 365,411 | |||||
Percentage of total number of shares of common stock outstanding | 1% | |||||
Unrecognized stock-based compensation cost | $ 300 | |||||
Percentage of salary contribution by employees | 15% | |||||
Maximum number of shares purchase per employee | 4,000 | |||||
Percentage of price lesser than fair market value per share | 85% | |||||
2016 Employee Stock Purchase Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation cost, period for recognition | 1 year |
Stock-Based Awards - Summary _2
Stock-Based Awards - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of Underlying Shares, Outstanding, Beginning balance | 1,712 | |
Number of Underlying Shares, Exercised | (243) | |
Number of Underlying Shares, Forfeited or expired | (3) | |
Number of Underlying Shares, Outstanding, Ending balance | 1,466 | 1,712 |
Number of Underlying Shares, Vested and exercisable | 1,408 | |
Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance | $ 25.09 | |
Weighted-Average Exercise Price Per Share, Exercised | 22.72 | |
Weighted-Average Exercise Price Per Share, Forfeited or Expired | 27.72 | |
Weighted-Average Exercise Price Per Share, Outstanding, Ending balance | 25.48 | $ 25.09 |
Weighted-Average Exercise Price Per Share, Vested and exercisable | $ 25.35 | |
Weighted-Average Remaining Contractual Life (Years), Outstanding | 4 years 11 months 19 days | 5 years 11 months 1 day |
Weighted-Average Remaining Contractual Life (Years), Vested and exercisable | 4 years 10 months 28 days | |
Total Intrinsic Value, Outstanding | $ 94,650 | $ 143,996 |
Total Intrinsic Value, Vested and exercisable | $ 91,089 |
Stock-Based Awards - Schedule o
Stock-Based Awards - Schedule of Stock Options Valuation Assumptions (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2021 $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk-free interest rates, minimum | 0.80% |
Risk-free interest rates, maximum | 1.20% |
Expected dividends yield | 0% |
Volatility, minimum | 71.20% |
Volatility, maximum | 72.40% |
Weighted-average expected term | 6 years 29 days |
Weighted-average fair value of options granted | $ 36.94 |
Stock-Based Awards - Summary _3
Stock-Based Awards - Summary of Restricted Stock Units (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Underlying Shares Outstanding, Balance | 1,310 | ||
Number of Underlying Shares, Granted | 441 | ||
Number of Underlying Shares, Vested | (633) | ||
Number of Underlying Shares, Forfeited | (40) | ||
Number of Underlying Shares Outstanding, Balance | 1,078 | 1,310 | |
Weighted-Average Grant-Date Fair Value , Beginning balance | $ 56.92 | ||
Weighted-Average Grant-Date Fair Value , Granted | 119.12 | $ 65.81 | $ 56.4 |
Weighted-Average Exercise Price Per Share, Vested | 52.92 | ||
Weighted-Average Exercise Price Per Share, Forfeited | 71.49 | ||
Weighted-Average Grant-Date Fair Value , Ending balance | $ 84.18 | ||
Market and Service Conditions Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Underlying Shares Outstanding, Balance | 110 | ||
Number of Underlying Shares, Granted | 126 | ||
Number of Underlying Shares, Vested | (58) | ||
Number of Underlying Shares, Forfeited | (4) | ||
Number of Underlying Shares Outstanding, Balance | 174 | 110 | |
Weighted-Average Grant-Date Fair Value , Beginning balance | $ 80.40 | ||
Weighted-Average Grant-Date Fair Value , Granted | 145.51 | $ 81.22 | 77.01 |
Weighted-Average Exercise Price Per Share, Vested | 39.15 | ||
Weighted-Average Exercise Price Per Share, Forfeited | 185.49 | ||
Weighted-Average Grant-Date Fair Value , Ending balance | $ 138.77 | ||
Performance Share Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Underlying Shares Outstanding, Balance | 74 | ||
Number of Underlying Shares, Vested | (57) | ||
Number of Underlying Shares, Forfeited | (17) | ||
Number of Underlying Shares Outstanding, Balance | 74 | ||
Weighted-Average Grant-Date Fair Value , Beginning balance | $ 64.03 | ||
Weighted-Average Grant-Date Fair Value , Granted | $ 64.07 | $ 54.67 | |
Weighted-Average Exercise Price Per Share, Vested | 64.03 | ||
Weighted-Average Exercise Price Per Share, Forfeited | $ 64.03 |
Stock Based Awards - Summary of
Stock Based Awards - Summary of Information Related to Granted and Vested RSUs, PSUs and MSUs (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 119.12 | $ 65.81 | $ 56.4 |
Fair market value of vested | $ 64,417 | $ 32,871 | $ 18,228 |
Market and Service Conditions Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 145.51 | $ 81.22 | $ 77.01 |
Fair market value of vested | $ 7,219 | ||
Performance Share Units | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted-average grant date fair value | $ 64.07 | $ 54.67 | |
Fair market value of vested | $ 7,261 | $ 18,873 | $ 15,384 |
Stock-Based Awards - Schedule_2
Stock-Based Awards - Schedule of Employee Stock Purchase Plan Valuation Assumptions (Details) - Employee Stock Purchase Plan | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rates, minimum | 5.10% | 0.70% | 0% |
Risk-free interest rates, maximum | 5.60% | 3.20% | 0.10% |
Expected term | 6 months | 6 months | 6 months |
Volatility, minimum | 64.70% | 71.90% | 61% |
Volatility, maximum | 85.90% | 76.30% | 65.80% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating lease costs | |||
Single lease costs | $ 3,486 | $ 4,299 | $ 4,154 |
Variable lease costs | 1,280 | 2,159 | 1,910 |
Sublease income: | |||
Sublease income | (165) | (1,976) | (1,900) |
Total operating lease costs | $ 4,601 | $ 4,482 | $ 4,164 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows used | $ 4,233 | $ 5,097 | $ 4,895 |
Lease liabilities arising from remeasurement of right-of-use assets | |||
Operating leases | 159 | $ 698 | |
Lease liabilities arising from obtaining ROU assets | |||
Operating leases | $ 1,690 | $ 2,237 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Terms and Weighted-Average Discount Rate Related to Operating Leases (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 3 years 8 months 12 days | 4 years 3 months 18 days |
Weighted-average discount rate | 6.90% | 6.90% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments under Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating Leases, Lease Payments, 2024 | $ 4,120 | |
Operating Leases, Lease Payments, 2025 | 4,129 | |
Operating Leases, Lease Payments, 2026 | 4,201 | |
Operating Leases, Lease Payments, 2027 | 775 | |
Operating Leases, Lease Payments, 2028 | 642 | |
Operating Leases, Lease Payments, Thereafter | 549 | |
Operating Leases, Lease Payments, Total lease payments | 14,416 | |
Less: Imputed interest | (1,683) | |
Present value of lease liabilities | 12,733 | |
Less: Current portion of lease liabilities | 3,373 | $ 3,122 |
Lease liabilities, net of current portion | $ 9,360 | $ 11,066 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Nov. 09, 2023 USD ($) Patent | Oct. 30, 2023 Patent | Oct. 20, 2023 USD ($) | Jul. 14, 2023 USD ($) | Feb. 10, 2022 Patent | Jul. 26, 2021 Patent | May 25, 2021 Patent | Feb. 12, 2021 Patent | Dec. 11, 2020 Patent | Dec. 07, 2020 Patent | Oct. 04, 2019 Patent | Jun. 06, 2019 Patent | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Commitments And Contingencies [Line Items] | ||||||||||||||
Number of infringement patents | 1 | |||||||||||||
Inventory purchase commitment, amount | $ | $ 21,800,000 | |||||||||||||
Patent Infringement Claims | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Number of patents allegedly infringed | 3 | 8 | 26 | |||||||||||
Number of patents found | 6 | |||||||||||||
Number of patents filed inter parties review with patent trail and appeal board | 6 | |||||||||||||
Number of asserted patents | 7 | 4 | ||||||||||||
Number of asserted patents Invalid | 8 | |||||||||||||
Number of patents in suit pending final resolution of petitions | 8 | |||||||||||||
Number of patents on for IPRs | 2 | |||||||||||||
Number of patents denied for IPRs | 4 | |||||||||||||
Stay removed on number of patents | 4 | |||||||||||||
Number of non-Infringement patents | 6 | |||||||||||||
Number of limited patents | 7 | |||||||||||||
Number of infringement patents | 3 | 9 | 9 | 7 | ||||||||||
Number of infringement patents exclusively licensed | 8 | |||||||||||||
Number of patents proceedings instituted for reexamination | 5 | |||||||||||||
Other defenses and awarded amount | $ | $ 2,000,000 | |||||||||||||
Percentage of royalty on infringing products | 3.26% | |||||||||||||
Number of patents selected for each trial | 3 | |||||||||||||
Number originally selected patents for first trial | 3 | |||||||||||||
Patent Infringement Claims | U.S. District Court in Washington | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Number of asserted patents | 3 | |||||||||||||
Patent Infringement Claims | U.S. Patents NXP | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Number of asserted patents | 8 | |||||||||||||
Patent Infringement Claims of 302 | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Damages awarded value | $ | $ 18,200,000 | |||||||||||||
Patent Infringement Claims of 597 | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Damages awarded value | $ | $ 13,100,000 | $ 18,400,000 | ||||||||||||
Accrued Liabilities | ||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||
Contingent liabilities | $ | $ 0 | $ 0 |
Deferred Revenue - Summary of C
Deferred Revenue - Summary of Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Revenue Disclosure [Abstract] | ||
Balance at beginning of period | $ 2,599 | $ 794 |
Balance from acquisition | 1,233 | |
Deferral of revenue | 2,920 | 3,143 |
Recognition of deferred revenue | (4,767) | (1,338) |
Balance at end of period | $ 1,985 | $ 2,599 |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Deferred Revenue Disclosure [Abstract] | ||
Recognition of deferred revenue | $ 2.2 | $ 0.4 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 1 | ||
Number of operating segments | Segment | 1 | ||
Total revenue | $ 307,539 | $ 257,800 | $ 190,283 |
United States | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 86,200 | 43,000 | 32,600 |
China (and Hong Kong) | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 128,300 | 109,600 | 98,800 |
Malaysia | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 41,000 | $ 23,600 | $ 23,600 |
Segment Reporting - Summary of
Segment Reporting - Summary of Revenue Categories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 307,539 | $ 257,800 | $ 190,283 |
Endpoint ICs | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 234,426 | 191,532 | 139,250 |
Systems | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 73,113 | $ 66,268 | $ 51,033 |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Long-lived Assets Geography (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 44,891 | $ 39,027 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 14,110 | 10,551 |
Malaysia | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 11,749 | 12,817 |
Taiwan | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | 13,396 | 12,620 |
Others | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, net | $ 5,636 | $ 3,039 |
Segment Reporting - Summary o_3
Segment Reporting - Summary of Sales by Geography (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 307,539 | $ 257,800 | $ 190,283 |
Americas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 96,418 | 57,129 | 38,021 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 176,409 | 168,249 | 133,152 |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Total revenue | $ 34,712 | $ 32,422 | $ 19,110 |
Net Loss Per Share - Reconcilia
Net Loss Per Share - Reconciliation of the Numerator and Denominator used in Computing Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net Income (Loss) | $ (43,366) | $ (24,301) | $ (51,260) |
Denominator: | |||
Weighted-average shares outstanding - basic | 26,752 | 25,539 | 24,176 |
Weighted-average shares outstanding - diluted | 26,752 | 25,539 | 24,176 |
Net loss per share - basic | $ (1.62) | $ (0.95) | $ (2.12) |
Net loss per share - diluted | $ (1.62) | $ (0.95) | $ (2.12) |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Diluted Net Loss Per Share Effect in Antidilutive (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1,466 | 1,712 | 2,288 |
RSUs, MSUs, and PSUs | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1,252 | 1,494 | 1,517 |
Employee Stock Purchase Plan Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 51 | 26 | 42 |
2019 Notes | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 285 | ||
2021 Notes | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 2,589 | 2,589 | 2,589 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Jun. 23, 2023 | Oct. 01, 2022 | Sep. 21, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units | ||||||
Related Party Transaction [Line Items] | ||||||
Other than option granted | 441,000 | |||||
Cathal Phelan | Restricted Stock Units | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options, vesting percentage | 25% | |||||
Other than option granted | 8,000 | |||||
Cathal Phelan | Advisory and Consulting Services | ||||||
Related Party Transaction [Line Items] | ||||||
Consulting fee expense recognized and paid | $ 0 | $ 500,000 | $ 500,000 | |||
Stock options granted | 60,000 | |||||
Cathal Phelan | Advisory and Consulting Services | 1/24th of Shares Shall Vest on October 21, 2020 | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options, vesting percentage | 4.17% | |||||
Cathal Phelan | Advisory and Consulting Services | 1/24th of Shares Shall Vest Subject on Each Month Thereafter, Subject to His Continued Consulting Services | ||||||
Related Party Transaction [Line Items] | ||||||
Stock options, vesting percentage | 4.17% | |||||
Related Party | Endpoint ICs | Patents | ||||||
Related Party Transaction [Line Items] | ||||||
Patent acquired | $ 300,000 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
401(k) Plan | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Employer matching contribution amount | $ 1.8 | $ 1.4 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |
Feb. 02, 2021 Position | Dec. 31, 2023 USD ($) | Dec. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related activities, description | On February 2, 2021, we restructured our go-to-market organization to strategically align our global sales, product, partner development and marketing teams. As part of the restructuring, we eliminated approximately seven full-time positions within our go-to-market organization, representing roughly 2% of our workforce. We incurred restructuring charges of $1.7 million for employee termination benefits and other associated costs for legal expenses for the year ended December 31, 2021. Restructuring charges were immaterial for the year ended December 31, 2022 and there were no restructuring charges for the year ended December 31, 2023. | ||
Number of positions eliminated | Position | 7 | ||
Number of positions eliminated, percent | 2% | ||
Restructuring charges | $ | $ 0 | $ 1,700,000 | |
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Restructuring Charges |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |
Feb. 07, 2024 | Feb. 02, 2021 | |
Subsequent Event [Line Items] | ||
Number of positions eliminated, percent | 2% | |
Subsequent Events | ||
Subsequent Event [Line Items] | ||
Number of positions eliminated, percent | 10% | |
Subsequent Events | Minimum | ||
Subsequent Event [Line Items] | ||
Severance benefits | $ 1.7 | |
Subsequent Events | Maximum | ||
Subsequent Event [Line Items] | ||
Severance benefits | $ 2 |