Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 05, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AIRG | |
Entity Registrant Name | AIRGAIN, INC. | |
Entity Central Index Key | 0001272842 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-37851 | |
Entity Tax Identification Number | 95-4523882 | |
Entity Address, Address Line One | 3611 Valley Centre Drive | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92130 | |
City Area Code | 760 | |
Local Phone Number | 579-0200 | |
Entity Common Stock, Shares Outstanding | 10,095,181 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 18,954 | $ 38,173 |
Trade accounts receivable, net | 10,351 | 4,782 |
Inventory | 6,546 | 1,016 |
Prepaid expenses and other current assets | 1,499 | 1,462 |
Total current assets | 37,350 | 45,433 |
Property and equipment, net | 2,698 | 2,377 |
Leased right-of-use assets | 2,840 | 0 |
Goodwill | 10,845 | 3,700 |
Intangible assets, net | 14,985 | 3,168 |
Other assets | 474 | 249 |
Total assets | 69,192 | 54,927 |
Current liabilities: | ||
Accounts payable | 5,891 | 2,975 |
Accrued compensation | 1,753 | 2,655 |
Accrued liabilities and other | 2,187 | 1,187 |
Short-term lease liabilities | 864 | 0 |
Deferred purchase price liabilities | 8,346 | 0 |
Current portion of deferred rent obligation under operating lease | 0 | 39 |
Total current liabilities | 19,041 | 6,856 |
Deferred tax liability | 103 | 58 |
Long-term lease liability | 2,274 | 0 |
Deferred rent obligation under operating lease | 0 | 271 |
Total liabilities | 21,418 | 7,185 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital, par value $0.0001, 200,000 shares authorized; 10,636 shares issued and 10,095 shares outstanding at September 30, 2021; and 10,318 shares issued and 9,784 shares outstanding at December 31, 2020 | 105,926 | 100,356 |
Treasury stock, at cost: 541 shares at September 30, 2021 and 534 shares at December 31, 2020. | (5,364) | (5,267) |
Accumulated deficit | (52,788) | (47,347) |
Total stockholders’ equity | 47,774 | 47,742 |
Total liabilities and stockholders’ equity | $ 69,192 | $ 54,927 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 10,636,000 | 10,318,000 |
Common stock, shares outstanding | 10,095,000 | 9,784,000 |
Treasury stock, shares at cost | 541,000 | 534,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 15,455 | $ 13,010 | $ 50,129 | $ 35,672 |
Cost of goods sold | 9,909 | 6,981 | 30,387 | 18,924 |
Gross profit | 5,546 | 6,029 | 19,742 | 16,748 |
Operating expenses: | ||||
Research and development | 2,698 | 2,231 | 8,130 | 6,873 |
Sales and marketing | 2,484 | 1,559 | 7,412 | 4,477 |
General and administrative | 3,307 | 2,439 | 10,201 | 7,506 |
Change in fair value of contingent consideration | 103 | 0 | 1,660 | 0 |
Total operating expenses | 8,592 | 6,229 | 27,403 | 18,856 |
Loss from operations | (3,046) | (200) | (7,661) | (2,108) |
Other expense (income): | ||||
Interest income, net | (6) | (23) | (21) | (194) |
Other expense (income) | (1) | 0 | 15 | 11 |
Total other income | (7) | (23) | (6) | (183) |
Loss before income taxes | (3,039) | (177) | (7,655) | (1,925) |
Provision (benefit) for income taxes | 30 | 84 | (2,214) | 274 |
Net loss | $ (3,069) | $ (261) | $ (5,441) | $ (2,199) |
Net loss per share: | ||||
Basic | $ (0.30) | $ (0.03) | $ (0.54) | $ (0.23) |
Diluted | $ (0.30) | $ (0.03) | $ (0.54) | $ (0.23) |
Weighted average shares used in calculating loss per share: | ||||
Basic | 10,082 | 9,710 | 9,993 | 9,694 |
Diluted | 10,082 | 9,710 | 9,993 | 9,694 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (3,069) | $ (261) | $ (5,441) | $ (2,199) |
Unrealized loss on available-for-sale securities, net of deferred taxes | 0 | (15) | 0 | (7) |
Comprehensive loss | $ (3,069) | $ (276) | $ (5,441) | $ (2,206) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance at Dec. 31, 2019 | $ 47,904 | $ 96,623 | $ (4,659) | $ 8 | $ (44,068) |
Stock-based compensation | 1,956 | ||||
Replacement awards issued in relation to acquisition | 0 | ||||
Issuance of shares for stock purchase plan | 1,018 | ||||
Repurchases of common stock | (608) | ||||
Unrealized loss on available-for-sale securities, net of deferred taxes | (7) | (7) | |||
Net loss | (2,199) | (2,199) | |||
Ending balance at Sep. 30, 2020 | 48,064 | 99,597 | (5,267) | 1 | (46,267) |
Beginning balance at Jun. 30, 2020 | 46,779 | 98,036 | (5,267) | 16 | (46,006) |
Stock-based compensation | 633 | ||||
Replacement awards issued in relation to acquisition | 0 | ||||
Issuance of shares for stock purchase plan | 928 | ||||
Repurchases of common stock | 0 | ||||
Unrealized loss on available-for-sale securities, net of deferred taxes | (15) | (15) | |||
Net loss | (261) | (261) | |||
Ending balance at Sep. 30, 2020 | 48,064 | 99,597 | (5,267) | 1 | (46,267) |
Beginning balance at Dec. 31, 2020 | 47,742 | 100,356 | (5,267) | 0 | (47,347) |
Stock-based compensation | 3,004 | ||||
Replacement awards issued in relation to acquisition | 40 | ||||
Issuance of shares for stock purchase plan | 2,526 | ||||
Repurchases of common stock | (97,000) | (97) | |||
Unrealized loss on available-for-sale securities, net of deferred taxes | 0 | 0 | |||
Net loss | (5,441) | (5,441) | |||
Ending balance at Sep. 30, 2021 | 47,774 | 105,926 | (5,364) | 0 | (52,788) |
Beginning balance at Jun. 30, 2021 | 49,586 | 104,572 | (5,267) | 0 | (49,719) |
Stock-based compensation | 1,068 | ||||
Replacement awards issued in relation to acquisition | 0 | ||||
Issuance of shares for stock purchase plan | 286 | ||||
Repurchases of common stock | (97,000) | (97) | |||
Unrealized loss on available-for-sale securities, net of deferred taxes | 0 | 0 | |||
Net loss | (3,069) | (3,069) | |||
Ending balance at Sep. 30, 2021 | $ 47,774 | $ 105,926 | $ (5,364) | $ 0 | $ (52,788) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (5,441) | $ (2,199) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 389 | 348 |
Loss on disposal of property and equipment | 0 | 11 |
Amortization of intangible assets | 2,248 | 475 |
Amortization of premium on investments, net | 0 | 49 |
Stock-based compensation | 3,004 | 1,956 |
Change in fair value of contingent consideration | 1,660 | 0 |
Deferred tax liability | (2,285) | (8) |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (4,442) | 3,474 |
Inventory | (3,859) | 116 |
Prepaid expenses and other current assets | (104) | 120 |
Other assets | (31) | 0 |
Accounts payable | 2,217 | (756) |
Accrued compensation | (1,041) | (433) |
Accrued liabilities and other | 568 | 564 |
Lease liabilities | (12) | 0 |
Net cash provided by (used in) operating activities | (6,921) | 3,477 |
Cash flows from investing activities: | ||
Cash paid for acquisition, net of cash acquired | (14,185) | 0 |
Purchases of available-for-sale securities | 0 | (753) |
Maturities of available-for-sale securities | 0 | 20,199 |
Purchases of property and equipment | (542) | (560) |
Net cash provided by (used in) investing activities | (14,727) | 18,886 |
Cash flows from financing activities: | ||
Repurchases of common stock | (97) | (608) |
Proceeds from issuance of common stock, net | 2,526 | 1,018 |
Net cash provided by financing activities | 2,429 | 410 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (19,219) | 22,773 |
Cash, cash equivalents, and restricted cash; beginning of period | 38,348 | 13,197 |
Cash, cash equivalents, and restricted cash; end of period | 19,129 | 35,970 |
Supplemental disclosure of cash flow information: | ||
Taxes paid | 89 | 137 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Right-of-use assets recorded upon adoption of ASC 842 | 3,199 | 0 |
Leased liabilities recorded upon adoption of ASC 842 | 3,519 | 0 |
Accrual of property and equipment | 21 | 0 |
Cash and cash equivalents | 18,954 | 35,795 |
Restricted cash included in other assets | 175 | 175 |
Total cash, cash equivalents, and restricted cash | $ 19,129 | $ 35,970 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Note 1. Description of Business and Basis of Presentation Description of Business Airgain, Inc. (the Company) was incorporated in the State of California on March 20, 1995; and reincorporated in the State of Delaware on August 17, 2016. The Company is a leading provider of advanced wireless connectivity solutions and technologies used to enable high performance wireless networking across a broad range of markets, including consumer, enterprise and automotive. The Company's technologies are deployed in carrier, fleet, enterprise, residential, private, government, and public safety wireless networks and systems, including set-top boxes, access points, routers, modems, gateways, media adapters, portables, digital televisions, sensors, fleet, and asset tracking devices. The Company provides its solutions to the residential wireless local area networking, also known as WLAN, market, supplying to leading carriers, original equipment manufacturers (OEMs), original design manufacturers (ODMs) and chipset manufacturers. The Company’s headquarters is in San Diego, California with office space and research, design and test facilities in the United States, United Kingdom, China, and Taiwan. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, from which the balance sheet information herein was derived. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and investments have been eliminated in consolidation. On January 7, 2021, the Company acquired all of the outstanding stock of NimbeLink Corp., a Delaware corporation (NimbeLink), for an upfront cash purchase price of approximately $ 15.0 million, subject to working capital and other customary adjustments of approximately $ 1.0 million as well as $ 0.7 million in deferred cash payments due to the seller fifteen months after the close of the transaction. In addition, NimbeLink’s former security holders may receive up to $ 8.0 million in additional consideration, subject to the acquired business's achievement of certain revenue targets in 2021. The transaction was recorded using the purchase method of accounting; accordingly, the results of NimbeLink are included in the Company’s condensed consolidated statements of operations and cash flows for the period subsequent to its acquisition. The unaudited condensed balance sheet as of December 31, 2020, included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. The unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, and the consolidated balance sheet data as of September 30, 2021, have been prepared on the same basis as the audited financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation of results of the Company’s operations and financial position for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the fiscal year ending December 31, 2021 , or for any future period. Segment Information The Company’s operations are located primarily in the United States and most of its assets are located in San Diego, California, Plymouth, Minnesota and Scottsdale, Arizona. The Company operates in one segment related to the sale of wireless connectivity solutions and technologies. The Company’s chief operating decision-maker is its chief executive officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a single operating segment. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the presentation of the current year financial statements including (i) the reclassification of accrued vacation, accrued payroll and other payroll accrual balances from accrued liabilities and other to accrued compensation resulting in changes to the comparative condensed consolidated statement of cash flows and (ii) the reclassification of disaggregated revenue disclosures by sales channel and geographic location resulting in changes to the comparative results disclosed in Note 17. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies During the three and nine months ended September 30, 2021, there have been no material changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, with the exception of the Company's adoption of Accounting Standards Codification (ASC) 842, Leases as discussed below. Restricted Cash As of September 30, 2021 , the Company had $ 0.2 million in cash on deposit to secure certain lease commitments. Restricted cash is recorded in other assets in the Company’s consolidated balance sheet. Trade Accounts Receivable Trade accounts receivable is adjusted for all known uncollectible accounts. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. Accounts are written off once all collection efforts have been exhausted. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful. The Company recorded an allowance for doubtful accounts of $ 20,000 as of September 30, 2021. No allowance for doubtful accounts was recorded as of December 31, 2020 . Inventory The majority of the Company’s products are manufactured by third parties that retain ownership of the inventory until title is transferred to the customer at the shipping point. In some situations, the Company retains ownership of inventory which is held in third party contact manufacturing facilities. In certain instances, shipping terms are delivery-at-place and the Company is responsible for arranging transportation and delivery of goods ready for unloading at the named place. In those instances, the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying balance sheet. The Company also manufactures certain of its products at its facility located in Scottsdale, Arizona. Inventory is stated at the lower of cost or net realizable value. For items manufactured by the Company, cost is determined using the weighted average cost method. For items manufactured by third parties, cost is determined using the first-in, first-out (FIFO) method. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. As of September 30, 2021, the Company’s inventories consisted of raw materials of $ 5.5 million, work in progress of $ 0.1 million and finished goods of $ 1.0 million. $ 2.2 million of the Company's inventory is located at contract manufacturers. As of December 31, 2020, inventories consisted of raw materials of $ 0.8 million and finished goods of $ 0.2 million. Provisions for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience and were $ 29,000 and $ 10,000 as of September 30, 2021 and December 31, 2020 , respectively. Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to the short maturity of these instruments. Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. The Company follows a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below: Level 1: Quoted prices in active markets for identical assets or liabilities Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable in active markets. Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acqof inventory isuisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, as well as the contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. In addition, uncertain tax positions and tax-related valuation allowances assumed, if any, in connection with a business combination are initially estimated as of the acquisition date. The Company re-evaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date with any adjustments to the preliminary estimates being recorded to goodwill if identified within the measurement period. Subsequent to the end of the measurement period or final determination of the estimated value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect the income tax provision (benefit) in the consolidated statements of operations and could have a material impact on the results of operations and financial position. Revenue Recognition Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers , and the related amendments, which are codified into ASC 606, Revenue from Contracts with Customers , using the modified retrospective method. The Company generates revenue mainly from the sale of wireless connectivity solutions and technologies. A portion of revenue is generated from service agreements and data subscription plans with certain customers. The revenue generated from service contracts and data subscription plans is insignificant. The Company recognizes revenue to depict the transfer of control of the promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. Control passes to the customers either when the products are shipped to or received by the customer, based on the terms of the specific agreement with the customer. Revenue from Nimbelink's data subscription plans is recognized over the period of the subscription. The Company records revenue based on a five-step model in accordance with ASC 606 whereby the company (i) identifies the contract(s) with the customer, (ii) identifies the performance obligations in the contract, (iii) determines the transaction price, (iv) allocates the transaction price to the performance obligation(s) in the contract and (v) recognizes the revenue when (as) the entity satisfies performance obligations. The Company only applies the five-step model when it is probable that the entity will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer. For product sales, each purchase order, along with existing customer agreements, when applicable, represents a contract from a customer and each product sold represents a distinct performance obligation. The contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s revenue is recognized on a “point-in-time” basis when control passes to the customer. The revenue from service contracts and data subscription plans is recognized “over time”. A portion of the Company’s sales is made through distributors under agreements which allow for pricing credits and/or rights of return under certain circumstances. A reserve for potential rights of return from distributors of $ 14,000 was recorded as of September 30, 2021 . No reserve for potential return rights of return from distributors was recorded as of December 31, 2020. The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract and type of customer and generally range from 30 to 120 days from delivery. The Company provides assurance-type warranties on all product sales ranging from one to two years. The Company accrues for the estimated warranty costs at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. The Company has recorded a warranty reserve of $ 15,000 as of September 30, 2021 and $ 10,000 as of December 31, 2020. Although customers may place orders for products that are delivered on multiple dates in different quarterly reporting periods; orders are typically scheduled within one year from the order date. The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period as allowed under ASC 606. The Company has also elected to record sales commissions when incurred, pursuant to the practical expedient under ASC 340, as the period over which the sales commission asset that would have been recognized is less than one year. Shipping and handling costs are immaterial and reported in operating expenses in the condensed consolidated statement of operations. There were no contract assets as of September 30, 2021 and December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company recorded $ 87,000 and $ 19,000 of contract liabilities, respectively. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on their balance sheets as lease liabilities, representing a liability to make lease payments, and corresponding right-of-use assets representing its right to use the underlying asset. The Company adopted the new accounting standard using the modified retrospective transition option as of the effective date on January 1, 2021. The adoption of this standard had a material impact on the Company's condensed consolidated balance sheets. The adoption did not have an impact on the Company's consolidated statements of operations. See Note 10 for disclosures related to the adoption of this standard. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU include removing exceptions to incremental intraperiod tax allocation of losses and gains from different financial statement components, exceptions to the method of recognizing income taxes on interim period losses, and exceptions to deferred tax liability recognition related to foreign subsidiary investments. In addition, the ASU requires that entities recognize franchise tax based on an incremental method and requires an entity to evaluate the accounting for step-ups in the tax basis of goodwill as inside or outside of a business combination. Based on the Company’s emerging growth company status the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Company has adopted this standard as of January 1, 2021. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In December 2019, the FASB issued ASU 2019-10, Effective Dates which updated the effective dates of adoption of ASU 2016-13 . ASU 2016-13 is effective, for Smaller Reporting Companies, for annual and interim periods in fiscal years beginning after December 15, 2022. Companies are required to adopt the standard using a modified retrospective adoption method. The Company continues to evaluate the impact of the standard on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326), Targeted Transition Relief , which provides entities that have certain instruments within the scope of ASC 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost , with an option to irrevocably elect the fair value option for eligible instruments. The effective date and transition methodology for this standard are the same as in ASU 2016-13. The Company continues to evaluate the impact of the standard on its consolidated financial statements. In April 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options . This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Note 3. Net Loss Per Share Basic net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding for the period. Diluted net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted loss per common share using the treasury stock method. The following table presents the computation of net loss per share (in thousands except per share data) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Numerator: Net loss $ ( 3,069 ) $ ( 261 ) $ ( 5,441 ) $ ( 2,199 ) Denominator: Basic weighted average common shares outstanding 10,082 9,710 9,993 9,694 Plus dilutive effect of potential common shares — — — — Diluted weighted average common shares outstanding 10,082 9,710 9,993 9,694 Net loss per share: Basic $ ( 0.30 ) $ ( 0.03 ) $ ( 0.54 ) $ ( 0.23 ) Diluted $ ( 0.30 ) $ ( 0.03 ) $ ( 0.54 ) $ ( 0.23 ) Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Stock options and restricted stock 1,147 1,451 1,252 1,622 Warrants outstanding — 3 — 51 Total common stock equivalent shares 1,147 1,454 1,252 1,673 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Note 4. Business Combinations On January 7, 2021, the Company entered into a Stock Purchase Agreement, by and among the Company, NimbeLink, the sellers set forth therein (the Sellers) and Scott Schwalbe in his capacity as seller representative (the Purchase Agreement). NimbeLink is an industrial Internet of Things (IoT) company focused on the design, development and delivery of edge-based cellular connectivity solutions for enterprise customers. The acquisition of NimbeLink supports the Company's transition toward becoming a more system-level company and will play an important role in the Company's overall growth strategy to broaden market diversification, especially within the industrial IoT space. Pursuant to the Purchase Agreement, at the closing on January 7, 2021, the Company acquired all of the outstanding stock of NimbeLink for an upfront cash purchase price of approximately $ 15.0 million, subject to working capital and other customary adjustments of $ 1.0 million and $ 0.7 million in deferred cash payments due to the Sellers fifteen months after the close of the transaction. In addition, NimbeLink’s former security holders may receive up to $ 8.0 million in contingent consideration, subject to the acquired business's achievement of certain revenue targets in 2021. The Company assumed unvested common stock options of continuing employees and service providers. Acquisition Consideration The following table summarizes the fair value of purchase consideration to acquire NimbeLink (in thousands) : Cash $ 15,991 Deferred payments (1) 728 Contingent consideration (2) 5,986 Replacement options (3) 40 Total purchase consideration $ 22,745 (1) The fair value of the holdback payment was determined by discounting to present value, payments totaling $ 0.7 million expected to be made to NimbeLink fifteen months after the close of the transaction. (2) The fair value of contingent consideration is based on applying the Monte Carlo simulation method to forecast achievement under various contingent consideration events which may result in up to $ 8 million in payments subject to the acquired business’s satisfying certain revenue targets in 2021. Key inputs in the valuation include forecasted revenue, revenue volatility and discount rate. Underlying forecast mathematics were based on Geometric Brownian Motion in a risk-neutral framework and discounted back to the applicable period in which the accumulative thresholds were achieved at discount rates commensurate with the risk and expected payout term of the contingent consideration. (3) Represents the pre-combination stock compensation expense for replacement options issued to NimbeLink employees. Preliminary Purchase Price Allocation The following is an allocation of purchase price as of the closing date based upon a preliminary estimate of the fair value of the assets acquired and liabilities assumed by the Company in the acquisition (in thousands) : Cash $ 1,806 Accounts receivable 1,127 Inventory 1,671 Prepaids and other current assets 141 Property and equipment 151 Right of use assets 402 Other assets 194 Identified intangible assets 14,065 Accounts payable ( 654 ) Accrued compensation ( 139 ) Accrued expenses and other current liabilities ( 432 ) Short-term lease liabilities ( 78 ) Long-term lease liabilities ( 324 ) Deferred tax liabilities ( 2,330 ) Identifiable net assets acquired 15,600 Goodwill 7,145 Total purchase price $ 22,745 The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands) : Category Estimated Fair value Finite-lived intangible assets Market-related intangibles 5 $ 1,700 Customer relationships 5 8,950 Developed technology 12 2,600 Covenants to non-compete 2 115 Indefinite-lived intangible assets In-process research and development N/A 700 Total identifiable intangible assets acquired $ 14,065 Assumptions in the Allocations of Purchase Price Management prepared the purchase price allocations and in doing so considered or relied in part upon reports of a third party valuation expert to calculate the fair value of certain acquired assets, which primarily included identifiable intangible assets and inventory, and the portions of the purchase consideration expected to be paid to NimbeLink securityholders in the future, as described above. Certain NimbeLink securityholders that are employees are not required to remain employed in order to receive the deferred payments and contingent consideration; accordingly, the fair value of the deferred payments and contingent consideration have been accounted for as a portion of the purchase consideration. 0.1 million and $ 1.7 million during the three and nine months ended September 30, 2021, respectively, to reflect the fair value of the contingent consideration based on the forecasted revenue targets as of September 30, 2021. Contingent consideration payable as of September 30, 2021 was $ 7.6 million. The contingent consideration balance was recorded to deferred purchase price liabilities in other current liabilities in the Company's condensed consolidated balance sheet. The change in the fair value of contingent consideration was recorded as a component of operating expenses in the condensed consolidated statement of operations for the three and nine months ended September 30, 2021. The goodwill recognized is attributable primarily to the acquired workforce, expected synergies, and other benefits that the Company believes will result from integrating the operations of the NimbeLink business with the operations of the Company. Certain liabilities included in the purchase price allocations are based on management’s best estimates of the amounts to be paid or settled and based on information available at the time the purchase price allocations were prepared. There have been no adjustments between the preliminary purchase price allocations reflected as of March 31, 2021 and the purchase price allocation reflected as of September 30, 2021. The fair value of the customer relationships was determined using the multi-period excess earnings method (MPEEM). MPEEM estimates the value of an intangible asset by quantifying the amount of residual (or excess) cash flows generated by the asset, and discounting those cash flows to the present. Future cash flows for contractual and non-contractual customers were estimated based on forecasted revenue and costs, taking into account the growth rates and contributory charges. The fair value of market-related intangible assets, developed technology, and in-process research and development (IPR&D) was determined using the Relief-from-Royalty method. The Relief-from-Royalty method is a specific application of the discounted-cash-flow method, which is a form of the income approach. It is based on the principle that ownership of the intangible asset relieves the owner of the need to pay a royalty to another party in exchange for rights to use the asset. Key assumptions to estimate the hypothetical royalty rate include observable royalty rates, which are royalty rates in negotiated licenses and market-based royalty rates which are royalty rates found in available market data for licenses involving similar assets. Developed technology will begin amortizing immediately and IPR&D will begin amortizing upon the completion of each project. During the nine months ended September 30, 2021 , all IPR&D projects were completed and transferred to developed technology, with a twelve-year estimated life. The fair value of non-compete intangible assets was estimated using the with-or-without method. The with-and-without method estimates the value of an intangible asset by quantifying the loss of economic profits under a hypothetical condition where only the subject intangible does not exist and needs to be re-created. Projected revenues, operating expenses and cash flows are calculated in each "with" and "without" scenario and the difference in the cash flow is discounted to present value. Inventory was valued at net realizable value. Raw materials were valued at book value and finished goods were valued assuming hypothetical revenues from finished goods adjusted for disposal costs, profit attributable to the seller and holding costs. An inventory step-up of $ 0.4 million is included in the purchase price allocation above. The Company assumed liabilities in the acquisition which primarily consist of accrued employee compensation and certain operating liabilities. The liabilities assumed in these acquisitions are included in the respective purchase price allocations above. $ 7.1 million. The Company does not expect to deduct any of the acquired goodwill for tax purposes. Supplemental proforma financial information The following unaudited pro forma financial information presents the combined results of operations for each of the periods presented as if the NimbeLink acquisition had occurred at the beginning of 2020 (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net revenue - pro forma combined $ 15,455 $ 15,323 $ 50,161 $ 45,244 Net loss - pro forma combined ( 3,069 ) ( 1,140 ) ( 5,442 ) ( 3,988 ) The following adjustments were included in the unaudited pro forma combined net revenues (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net revenue $ 15,455 $ 13,010 $ 50,129 $ 35,672 Add: Net revenue - acquired businesses — 2,313 32 9,572 Net revenues - pro-forma combined $ 15,455 $ 15,323 $ 50,161 $ 45,244 The following adjustments were included in the unaudited pro forma combined net income (loss) (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income (loss) $ ( 3,069 ) $ ( 261 ) $ ( 5,441 ) $ ( 2,199 ) Add: Results of operations of acquired business — ( 338 ) ( 310 ) 228 Less: pro forma adjustments Amortization of historical intangibles — 26 — 73 Amortization of acquired intangibles — ( 583 ) ( 38 ) ( 1,800 ) Inventory fair value adjustments — — 353 ( 353 ) Interest income — — ( 6 ) — Interest expense — 16 — 63 Net loss - pro forma combined $ ( 3,069 ) $ ( 1,140 ) $ ( 5,442 ) $ ( 3,988 ) The unaudited pro forma financial information has been adjusted to reflect the amortization expense for acquired intangibles, removal of historical intangible asset amortization and recognition of expense associated with the step-up of inventory. The pro forma data is presented for illustrative purposes only, and the historical results of NimbeLink are based on its books and records prior to the acquisition, and is not necessarily indicative of the consolidated results of operations of the combined business had the acquisition actually occurred at the beginning of fiscal year 2020. In addition, future results may vary significantly from the pro forma results reflected herein and should not be relied upon as an indication of the results of future operations of the combined business. The unaudited pro forma financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquired entity. Revenue generated from acquired NimbeLink products for the three and nine months ended September 30, 2021 was the main driver of the increase in revenue from the Enterprise market, as disclosed in Note 17. Net income of $ 0.5 million and $ 0.4 million for the three and nine months ended September 30, 2021, respectively, was included in the Company's condensed consolidated statements of operations related to NimbeLink. The Company does not consider the revenue and net loss related to the acquired entity to be indicative of results of the acquisition due to integration activities since the acquisition date. Also see Note 7, Goodwill and Intangible Assets for further information on goodwill and intangible assets related to the NimbeLink acquisition. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 5. Cash and Cash Equivalents The following tables show the Company’s cash and cash equivalents by significant investment category as of September 30, 2021 and December 31, 2020 (in thousands) : September 30, 2021 Amortized Estimated fair value Cash and cash Cash $ 7,145 $ 7,145 $ 7,145 Level 1: Money market funds 11,809 11,809 11,809 Total $ 18,954 $ 18,954 $ 18,954 December 31, 2020 Amortized Estimated fair value Cash and cash Cash $ 2,779 $ 2,779 $ 2,779 Level 1: Money market funds 35,394 35,394 35,394 Total $ 38,173 $ 38,173 $ 38,173 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 6. Property and Equipment Depreciation and amortization of property and equipment is calculated on the straight-line method based on the shorter of the estimated useful life or the term of the lease for tenant improvements and three to fifteen years for all other property and equipment. Property and equipment consist of the following (in thousands) : September 30, December 31, 2021 2020 Computers and software $ 607 $ 596 Furniture, fixtures, and equipment 400 400 Manufacturing and testing equipment 4,693 3,874 Construction in process — 120 Leasehold improvements 932 932 Property and equipment, gross 6,632 5,922 Less accumulated depreciation ( 3,934 ) ( 3,545 ) Property and equipment, net $ 2,698 $ 2,377 Depreciation expense was $ 0.1 million for both the three months ended September 30, 2021 and 2020, and $ 0.4 million and $ 0.3 million for the nine months ended September 30, 2021 and 2020 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 7. Goodwill and Intangible Assets The change in the carrying amount of goodwill was as follows (in thousands) : Goodwill as of December 31, 2020 $ 3,700 Goodwill from NimbeLink acquisition 7,145 Goodwill as of September 30, 2021 $ 10,845 The following is a summary of the Company’s acquired intangible assets (dollars in thousands) : September 30, 2021 December 31, 2020 Weighted Gross Accumulated Net Gross Accumulated Net Market related intangibles 5 $ 1,820 $ 370 $ 1,450 $ 120 $ 120 $ — Customer relationships 7 13,780 3,879 9,901 4,830 2,203 2,627 Developed technologies 11 4,380 819 3,561 1,080 539 541 Covenants to non-compete 2 115 42 73 — — — Total intangible assets, net $ 20,095 $ 5,110 $ 14,985 $ 6,030 $ 2,862 $ 3,168 The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table (in thousands) : Estimated future amortization 2021 (remaining three months) $ 756 2022 3,026 2023 2,969 2024 2,968 2025 2,958 Thereafter 2,308 Total $ 14,985 Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors. Amortization expense was $ 0.8 million and $ 0.2 million for the three months ended September 30, 2021 and 2020, respectively and $ 2.2 million and $ 0.5 million for the nine months ended September 30, 2021 and 2020 , respectively. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other | No t e 8. Accrued Liabilities and Other Accrued liabilities and other is comprised of the following (in thousands) : September 30, December 31, 2021 2020 Accrued expenses $ 883 $ 519 VAT payable 339 327 Accrued income taxes 143 182 Contract liabilities 87 19 Other current liabilities 735 140 Accrued liabilities and other $ 2,187 $ 1,187 |
Notes Payable and Line of Credi
Notes Payable and Line of Credit | 9 Months Ended |
Sep. 30, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Notes Payable and Line of Credit | No t e 9. Notes Payable and Line of Credit On January 7, 2021, as a result of the Nimbelink acquisition, the Company assumed a revolving line of credit (Line of Credit) with Choice Financial Group (Choice) whereby Choice had made available to the Company a secured credit facility of up to the lesser of (1) $ 1.5 million or (2) the sum of (a) 80 % of the aggregate amount of third party accounts receivable balances, excluding progress billings, foreign receivables, accounts subject to dispute or setoff and doubtful accounts (Eligible Accounts) aged less than 90 days, net of 10 % allowance, and (b) 25 % of raw materials and finished goods, except those held at named contract manufacturer, after a 10 % reserve for excess and obsolete inventory. Amounts borrowed under the Line of Credit bore interest at the prime rate plus 1 %, payable monthly . The facility was secured by a commercial guarantee and a lien over the property of NimbeLink including inventory, equipment, accounts receivable, investments, deposit accounts, other rights to payment and performance and general intangibles. No amounts were borrowed under this facility during the nine months ended September 30, 2021 and in April 2021, the Company closed the Line of Credit with Choice. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 10. Leases Operating leases The Company adopted ASC 842 on January 1, 2021, using the effective date transition method, which requires a cumulative-effect adjustment to the opening balance of retained earnings on the effective date. As a result of the adoption of ASC 842, the Company recognized right-of-use assets and lease liabilities of $ 3.2 million and $ 3.5 million, respectively, as of the January 1, 2021 effective date. There was no impact to opening retained earnings or to the condensed consolidated statement of operations from the adoption of ASC 842. The Company has made certain assumptions and judgements when applying ASC 842 including the adoption of the package of practical expedients available for transition. The practical expedients allowed the Company to not reassess (i) whether expired or existing contracts contained leases, (ii) lease classification for expired or existing leases and (iii) previously capitalized initial direct costs. The Company also elected not to recognize right-of-use assets and lease liabilities for short-term leases (leases with a term of twelve months or less). Operating lease arrangements primarily consist of office, warehouse and test house leases expiring at various years through 2025 . The facility leases have original lease terms of two to seven year s and contain options to extend the lease up to 5 years or terminate the lease. Options to extend are included in leased right-of-use assets and lease liabilities in the consolidated balance sheet when the Company is reasonably certain it will renew the underlying leases. Since the implicit rate of such leases is unknown and the Company is not reasonably certain to renew its leases, the Company has elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments. As of September 30, 2021, the weighted average discount rate for operating leases was 3.5 % and the weighted average remaining lease term for operating leases was 3.9 years, respectively. The Company has entered into various short-term operating leases primarily for test houses and office equipment, with an initial term of twelve months or less . These short-term leases are not recorded on the Company's consolidated balance sheet and the related lease expense for these short-term leases was $ 43,000 and $ 75,000 for the three and nine months ended September 30, 2021, respectively. Total operating lease cost was $ 0.3 million for both the three months ended September 30, 2021 and 2020, and $ 1.0 million and $ 0.8 million for the nine months ended September 30, 2021 and 2020, respectively. Through the acquisition of NimbeLink, the Company assumed a lease, which was recorded as a right-of-use asset and lease liability of $ 0.4 million as of acquisition date. No other right-of-use assets were obtained in exchange for lease liabilities during the nine months ended September 30, 2021. The table below presents aggregate future minimum payments due under leases, reconciled to lease liabilities included in the consolidated balance sheet as of September 30, 2021 (in thousands) : 2021 (remaining three months) $ 279 2022 866 2023 777 2024 773 2025 673 Total minimum payments 3,368 Less imputed interest ( 231 ) Less unrealized translation gain 1 Total lease liabilities 3,138 Less short-term lease liabilities ( 864 ) Long-term lease liability $ 2,274 The future minimum lease payments required under operating leases as of December 31, 2020, in accordance with ASC 840, Leases , were as follows (in thousands) : Year ending: 2021 $ 992 2022 721 2023 705 2024 689 2025 615 Total $ 3,722 |
Treasury Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Treasury Stock | Note 11. Treasury Stock In September 2019, the Company’s Board of Directors (the Board) approved a share repurchase program (the 2019 Program) pursuant to which the Company could purchase up to $ 7.0 million of shares of its common stock over the twelve month period following the establishment of the program. The repurchases under the 2019 Program were made from time to time in the open market or in privately negotiated transactions and were funded from the Company’s working capital. Repurchases are made in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, subject to market conditions, available liquidity, cash flow, applicable legal requirements and other factors. In September 2020, the Board approved an extension to the 2019 Program for an additional twelve-month period ending September 2021. The 2019 Program expired in September 2021. During the three and nine months ended September 30, 2021 , the Company repurchased 7,200 shares of its common stock for a total cost of $ 97,000 . Since inception of the 2019 Program through September 30, 2021, the Company repurchased a total of approximately 170,000 shares of the common stock for a total cost of $ 1.7 million . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12. Income Taxes The Company’s effective income tax rate was 28.9 % and ( 14.2 )% for the nine months ended September 30, 2021 and 2020, respectively. The variance from the U.S. federal statutory rate of 21 % for the nine months ended September 30, 2021, was primarily related to the release of the valuation allowance attributable to the acquisition of NimbeLink. Management assesses its deferred tax assets quarterly to determine whether all or any portion of the asset is more likely than not unrealizable under ASC Topic 740 Income Taxes . The Company is required to establish a valuation allowance for any portion of the asset that management concludes is more likely than not to be unrealizable. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company’s assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies, and projected future taxable income in making this assessment. As of December 31, 2020 , the Company had a valuation allowance against net deferred tax assets of $ 8.5 million, however, the exclusion of a deferred tax liability generated by goodwill (an indefinite lived intangible) may not be considered a future source of taxable income in evaluating the need for a valuation allowance. In connection with the acquisition of NimbeLink, the Company recorded deferred tax liabilities associated with acquired intangible assets. As a result, for the nine months ended September 30, 2021 , the Company determined that it is appropriate to release a portion of the Company's valuation allowance. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Class of Stock Disclosures [Abstract] | |
Stockholders' Equity | Note 13. Stockholders’ Equity In August 2016, the Company's Board adopted the 2016 Equity Inventive Plan (the 2016 Plan) for employees, directors and consultants. In February 2021, the Board adopted the 2021 Employment Inducement Incentive Award Plan (Inducement Plan), which provides for grants of equity-based awards, of which 300,000 shares were initially reserved under the Inducement Plan. In connection with the NimbeLink acquisition, the Company assumed the NimbeLink Corp 2016 Stock Incentive Plan and stock options to purchase 22,871 shares of common stock issuable thereunder. The following table presents common stock reserved for future issuance (1) (in thousands) : September 30, December 31, 2021 2020 Warrants issued and outstanding — 51 Stock option awards issued and outstanding 1,953 1,760 Authorized for grants under the 2016 Equity Incentive Plan (2) 372 357 Authorized for grants under the Inducement Plan (3) 116 — Authorized for grants under the 2016 Employee Stock Purchase Plan (4) 326 256 2,767 2,424 (1) The table above excludes 541,000 and 534,000 treasury shares as of September 30, 2021 and December 31, 2020 , respectively. (2) On January 1, 2021, the number of authorized shares in the 2016 Plan increased by 391,000 shares pursuant to the evergreen provisions of the 2016 Plan. (3) On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan; 187,700 shares were issued under the Inducement Plan during the nine months ended September 30, 2021 (4) On January 1, 2021, the number of authorized shares in the 2016 Employee Stock Purchase Plan increased by 98,000 shares pursuant to the evergreen provisions of the 2016 Employee Stock Purchase Plan. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Note 14. Stock Based Compensation Stock-based compensation expense Stock-based compensation is recorded in the consolidated statements of operations as follows (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Cost of goods sold $ 1 $ — $ 3 $ — Research and development 211 124 591 425 Sales and marketing 230 101 658 291 General and administrative 626 409 1,752 1,240 Total stock-based compensation expense $ 1,068 $ 634 $ 3,004 $ 1,956 Stock Options The following table summarizes the outstanding stock option activity during the period indicated (shares in thousands) : Weighted average Number of Exercise Remaining Balance at December 31, 2020 1,760 $ 10.07 7.6 Granted 516 22.43 Exercised ( 226 ) 11.11 Expired/Forfeited ( 97 ) 14.26 Balance at September 30, 2021 1,953 13.00 7.5 Vested and exercisable at September 30, 2021 1,079 9.47 6.5 Vested and expected to vest at September 30, 2021 1,953 13.00 7.5 The weighted average grant date fair value of options granted during the nine months ended September 30, 2021 and for the year ended December 31, 2020, was $ 10.66 and $ 4.30 , respectively. For stock options vested and expected to vest, the aggregate intrinsic value as of September 30, 2021, and December 31, 2020 , was $ 4.3 million and $ 13.6 million, respectively. At September 30, 2021 , there was $ 6.0 million of unrecognized compensation cost related to unvested stock options granted under the Company’s equity plans that is expected to be recognized over the next 2.6 years. Restricted Stock The following table summarizes the Company's restricted stock unit activity during the period indicated (shares in thousands) : Restricted Weighted Balance at December 31, 2020 202 $ 10.51 Grants 223 22.28 Vested and released ( 61 ) 10.43 Forfeited ( 61 ) 14.15 Balance at September 30, 2021 303 18.44 As of September 30, 2021 , there was $ 4.6 million of total unrecognized compensation cost related to unvested restricted stock units having a weighted average remaining contractual term of 3.0 years. Employee Stock Purchase Plan (ESPP) The Company maintains the 2016 Employee Stock Purchase Plan (ESPP) that provides employees an opportunity to purchase common stock through payroll deductions. The ESPP is implemented through consecutive 6 -month offering periods commencing on March 1 and September 1 of each year. The first offering period under the ESPP commenced on March 1, 2019. The purchase price is set at 85 % of the fair market value of the Company's common stock on either the first or last trading day of the offering period, whichever is lower. Annual contributions are limited to the lower of 20 % of an employee's eligible compensation or such other limits as apply under Section 423 of the Internal Revenue Code. The ESPP is intended to qualify as an employee stock purchase plan for purposes of Section 423 of the Internal Revenue Code. Based on the 15 % discount and the fair value of the option feature of the ESPP, it is considered compensatory. Compensation expense is calculated using the fair value of the employees’ purchase rights under the Black-Scholes model. The Company currently uses authorized and unissued shares to satisfy share award exercises. During the three months ended September 30, 2021, under the ESPP, the Company received $ 0.2 million from the issuance of approximately 17,000 shares. During the nine months ended September 30, 2021 , under the ESPP, the Company received $ 0.3 million from the issuance of approximately 27,000 shares. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 15. Commitments and Contingencies (a) Indemnification In some agreements to which the Company is a party, the Company has agreed to indemnify the other party for certain matters, including, but not limited to, product liability and intellectual property. To date, there have been no known events or circumstances that have resulted in any material costs related to these indemnification provisions and no liabilities have been recorded in the accompanying consolidated financial statements. (b) Supply Agreement In September 2020, the Company entered into a supply agreement with a vendor to purchase up to $ 2.0 million of inventory during the initial term of the agreement through December 31, 2022. As of September 30, 2021 , the purchase commitment had been met and $ 2.0 million had been paid under this supply agreement. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Note 16. Concentration of Credit Risk (a) Concentration of Sales and Accounts Receivable The following represents customers that accounted for 10 % or more of total revenue during the three and nine months ended September 30, 2021 and 2020. Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Customer A 20 % 32 % 23 % 33 % Customer B 8 % 15 % 15 % 10 % Customer C 13 % 5 % 13 % 6 % Customer D 14 % 0 % 8 % 0 % Customer E 2 % 10 % 4 % 7 % The following represents customers that accounted for 10 % or more of total trade accounts receivable at September 30, 2021 and December 31, 2020. September 30, December 31, 2021 2020 Customer A 21 % 23 % Customer B 18 % 0 % Customer C 11 % 17 % Customer D 9 % 13 % (b) Concentration of Purchases During the three and nine months ended September 30, 2021 , the Company’s products were primarily manufactured by three contract manufacturers with locations in China, one in Vietnam, one in Minnesota and by the Company’s Arizona facility. (c) Concentration of Property and Equipment The Company’s property and equipment, net by geographic region are as follows: September 30, December 31, 2021 2020 North America $ 2,233 $ 1,936 Asia Pacific (APAC) 262 249 Europe, Middle East and Africa (EMEA) 203 192 Property and equipment, net $ 2,698 $ 2,377 |
Disaggregated Revenue
Disaggregated Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue | Note 17. Disaggregated Revenue Disaggregated revenue are as follows (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 By Sales Channel: Distributors and resellers $ 8,076 $ 9,406 $ 31,101 $ 23,830 OEM/ODM/Contract manufacturer 2,014 3,244 7,193 10,998 Other 5,365 360 11,835 844 Total sales $ 15,455 $ 13,010 $ 50,129 $ 35,672 By Market Group: Consumer $ 4,599 $ 10,381 $ 23,800 $ 27,489 Enterprise 8,698 $ 794 19,231 2,575 Automotive 2,158 $ 1,835 7,098 5,608 Total sales $ 15,455 $ 13,010 $ 50,129 $ 35,672 By Geography: China (including Hong Kong and Taiwan) $ 5,916 $ 9,734 $ 25,025 $ 25,881 North America 8,927 2,434 23,061 7,193 Rest of the world 612 842 2,043 2,598 Total sales $ 15,455 $ 13,010 $ 50,129 $ 35,672 Enterprise revenue for three and nine months ended September 30, 2021, is primarily comprised of revenue generated from the sale of industrial Internet of Things products that were acquired through the NimbeLink acquisition. Revenue generated from the United States was $ 8.8 million and $ 2.4 million for the three months ended September 30, 2021 and 2020 , respectively, and $ 22.5 million and $ 6.9 million for the nine months ended September 30, 2021 and 2020 , respectively. |
Description of Business and B_2
Description of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Airgain, Inc. (the Company) was incorporated in the State of California on March 20, 1995; and reincorporated in the State of Delaware on August 17, 2016. The Company is a leading provider of advanced wireless connectivity solutions and technologies used to enable high performance wireless networking across a broad range of markets, including consumer, enterprise and automotive. The Company's technologies are deployed in carrier, fleet, enterprise, residential, private, government, and public safety wireless networks and systems, including set-top boxes, access points, routers, modems, gateways, media adapters, portables, digital televisions, sensors, fleet, and asset tracking devices. The Company provides its solutions to the residential wireless local area networking, also known as WLAN, market, supplying to leading carriers, original equipment manufacturers (OEMs), original design manufacturers (ODMs) and chipset manufacturers. The Company’s headquarters is in San Diego, California with office space and research, design and test facilities in the United States, United Kingdom, China, and Taiwan. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, from which the balance sheet information herein was derived. The Condensed Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and investments have been eliminated in consolidation. On January 7, 2021, the Company acquired all of the outstanding stock of NimbeLink Corp., a Delaware corporation (NimbeLink), for an upfront cash purchase price of approximately $ 15.0 million, subject to working capital and other customary adjustments of approximately $ 1.0 million as well as $ 0.7 million in deferred cash payments due to the seller fifteen months after the close of the transaction. In addition, NimbeLink’s former security holders may receive up to $ 8.0 million in additional consideration, subject to the acquired business's achievement of certain revenue targets in 2021. The transaction was recorded using the purchase method of accounting; accordingly, the results of NimbeLink are included in the Company’s condensed consolidated statements of operations and cash flows for the period subsequent to its acquisition. The unaudited condensed balance sheet as of December 31, 2020, included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. The unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, and the consolidated balance sheet data as of September 30, 2021, have been prepared on the same basis as the audited financial statements. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal and recurring adjustments, necessary for a fair presentation of results of the Company’s operations and financial position for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the fiscal year ending December 31, 2021 , or for any future period. |
Segment Information | Segment Information The Company’s operations are located primarily in the United States and most of its assets are located in San Diego, California, Plymouth, Minnesota and Scottsdale, Arizona. The Company operates in one segment related to the sale of wireless connectivity solutions and technologies. The Company’s chief operating decision-maker is its chief executive officer, who reviews operating results on an aggregate basis and manages the Company’s operations as a single operating segment. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain amounts in the prior year financial statements have been reclassified to conform to the presentation of the current year financial statements including (i) the reclassification of accrued vacation, accrued payroll and other payroll accrual balances from accrued liabilities and other to accrued compensation resulting in changes to the comparative condensed consolidated statement of cash flows and (ii) the reclassification of disaggregated revenue disclosures by sales channel and geographic location resulting in changes to the comparative results disclosed in Note 17. |
Restricted Cash | Restricted Cash As of September 30, 2021 , the Company had $ 0.2 million in cash on deposit to secure certain lease commitments. Restricted cash is recorded in other assets in the Company’s consolidated balance sheet. |
Trade Accounts Receivable | Trade Accounts Receivable Trade accounts receivable is adjusted for all known uncollectible accounts. The policy for determining when receivables are past due or delinquent is based on the contractual terms agreed upon. Accounts are written off once all collection efforts have been exhausted. An allowance for doubtful accounts is established when, in the opinion of management, collection of the account is doubtful. The Company recorded an allowance for doubtful accounts of $ 20,000 as of September 30, 2021. No allowance for doubtful accounts was recorded as of December 31, 2020 . |
Inventory | Inventory The majority of the Company’s products are manufactured by third parties that retain ownership of the inventory until title is transferred to the customer at the shipping point. In some situations, the Company retains ownership of inventory which is held in third party contact manufacturing facilities. In certain instances, shipping terms are delivery-at-place and the Company is responsible for arranging transportation and delivery of goods ready for unloading at the named place. In those instances, the Company bears all risk involved in bringing the goods to the named place and records the related inventory in transit to the customer as inventory on the accompanying balance sheet. The Company also manufactures certain of its products at its facility located in Scottsdale, Arizona. Inventory is stated at the lower of cost or net realizable value. For items manufactured by the Company, cost is determined using the weighted average cost method. For items manufactured by third parties, cost is determined using the first-in, first-out (FIFO) method. Any adjustments to reduce the cost of inventories to their net realizable value are recognized in earnings in the current period. As of September 30, 2021, the Company’s inventories consisted of raw materials of $ 5.5 million, work in progress of $ 0.1 million and finished goods of $ 1.0 million. $ 2.2 million of the Company's inventory is located at contract manufacturers. As of December 31, 2020, inventories consisted of raw materials of $ 0.8 million and finished goods of $ 0.2 million. Provisions for excess and obsolete inventories are estimated based on product life cycles, quality issues, and historical experience and were $ 29,000 and $ 10,000 as of September 30, 2021 and December 31, 2020 , respectively. |
Fair Value Measurements | Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable, and accrued liabilities approximate their fair values due to the short maturity of these instruments. Fair value measurements are market-based measurements, not entity-specific measurements. Therefore, fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. The Company follows a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below: Level 1: Quoted prices in active markets for identical assets or liabilities Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable in active markets. |
Business Combinations | Business Combinations The Company applies the provisions of ASC 805, Business Combinations , in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acqof inventory isuisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, as well as the contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations. In addition, uncertain tax positions and tax-related valuation allowances assumed, if any, in connection with a business combination are initially estimated as of the acquisition date. The Company re-evaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date with any adjustments to the preliminary estimates being recorded to goodwill if identified within the measurement period. Subsequent to the end of the measurement period or final determination of the estimated value of the tax allowance or contingency, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect the income tax provision (benefit) in the consolidated statements of operations and could have a material impact on the results of operations and financial position. |
Revenue Recognition | Revenue Recognition Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers , and the related amendments, which are codified into ASC 606, Revenue from Contracts with Customers , using the modified retrospective method. The Company generates revenue mainly from the sale of wireless connectivity solutions and technologies. A portion of revenue is generated from service agreements and data subscription plans with certain customers. The revenue generated from service contracts and data subscription plans is insignificant. The Company recognizes revenue to depict the transfer of control of the promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled for those goods or services. Control passes to the customers either when the products are shipped to or received by the customer, based on the terms of the specific agreement with the customer. Revenue from Nimbelink's data subscription plans is recognized over the period of the subscription. The Company records revenue based on a five-step model in accordance with ASC 606 whereby the company (i) identifies the contract(s) with the customer, (ii) identifies the performance obligations in the contract, (iii) determines the transaction price, (iv) allocates the transaction price to the performance obligation(s) in the contract and (v) recognizes the revenue when (as) the entity satisfies performance obligations. The Company only applies the five-step model when it is probable that the entity will collect substantially all of the consideration it is entitled to in exchange for the goods or services it transfers to the customer. For product sales, each purchase order, along with existing customer agreements, when applicable, represents a contract from a customer and each product sold represents a distinct performance obligation. The contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of the Company’s revenue is recognized on a “point-in-time” basis when control passes to the customer. The revenue from service contracts and data subscription plans is recognized “over time”. A portion of the Company’s sales is made through distributors under agreements which allow for pricing credits and/or rights of return under certain circumstances. A reserve for potential rights of return from distributors of $ 14,000 was recorded as of September 30, 2021 . No reserve for potential return rights of return from distributors was recorded as of December 31, 2020. The Company’s contracts with customers do not typically include extended payment terms. Payment terms vary by contract and type of customer and generally range from 30 to 120 days from delivery. The Company provides assurance-type warranties on all product sales ranging from one to two years. The Company accrues for the estimated warranty costs at the time of sale based on historical warranty experience plus any known or expected changes in warranty exposure. The Company has recorded a warranty reserve of $ 15,000 as of September 30, 2021 and $ 10,000 as of December 31, 2020. Although customers may place orders for products that are delivered on multiple dates in different quarterly reporting periods; orders are typically scheduled within one year from the order date. The Company has opted to not disclose the portion of revenues allocated to partially unsatisfied performance obligations, which represent products to be shipped within 12 months under open customer purchase orders, at the end of the current reporting period as allowed under ASC 606. The Company has also elected to record sales commissions when incurred, pursuant to the practical expedient under ASC 340, as the period over which the sales commission asset that would have been recognized is less than one year. Shipping and handling costs are immaterial and reported in operating expenses in the condensed consolidated statement of operations. There were no contract assets as of September 30, 2021 and December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company recorded $ 87,000 and $ 19,000 of contract liabilities, respectively. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on their balance sheets as lease liabilities, representing a liability to make lease payments, and corresponding right-of-use assets representing its right to use the underlying asset. The Company adopted the new accounting standard using the modified retrospective transition option as of the effective date on January 1, 2021. The adoption of this standard had a material impact on the Company's condensed consolidated balance sheets. The adoption did not have an impact on the Company's consolidated statements of operations. See Note 10 for disclosures related to the adoption of this standard. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes , as part of its initiative to reduce complexity in accounting standards. The amendments in the ASU include removing exceptions to incremental intraperiod tax allocation of losses and gains from different financial statement components, exceptions to the method of recognizing income taxes on interim period losses, and exceptions to deferred tax liability recognition related to foreign subsidiary investments. In addition, the ASU requires that entities recognize franchise tax based on an incremental method and requires an entity to evaluate the accounting for step-ups in the tax basis of goodwill as inside or outside of a business combination. Based on the Company’s emerging growth company status the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Company has adopted this standard as of January 1, 2021. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In December 2019, the FASB issued ASU 2019-10, Effective Dates which updated the effective dates of adoption of ASU 2016-13 . ASU 2016-13 is effective, for Smaller Reporting Companies, for annual and interim periods in fiscal years beginning after December 15, 2022. Companies are required to adopt the standard using a modified retrospective adoption method. The Company continues to evaluate the impact of the standard on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326), Targeted Transition Relief , which provides entities that have certain instruments within the scope of ASC 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost , with an option to irrevocably elect the fair value option for eligible instruments. The effective date and transition methodology for this standard are the same as in ASU 2016-13. The Company continues to evaluate the impact of the standard on its consolidated financial statements. In April 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40), Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options . This guidance clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options due to a lack of explicit guidance in the FASB Codification. The ASU 2021-04 is effective for all entities for fiscal years beginning after December 15, 2021. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2021-04 on its consolidated financial statements. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Computation of Net Loss Per Share | The following table presents the computation of net loss per share (in thousands except per share data) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Numerator: Net loss $ ( 3,069 ) $ ( 261 ) $ ( 5,441 ) $ ( 2,199 ) Denominator: Basic weighted average common shares outstanding 10,082 9,710 9,993 9,694 Plus dilutive effect of potential common shares — — — — Diluted weighted average common shares outstanding 10,082 9,710 9,993 9,694 Net loss per share: Basic $ ( 0.30 ) $ ( 0.03 ) $ ( 0.54 ) $ ( 0.23 ) Diluted $ ( 0.30 ) $ ( 0.03 ) $ ( 0.54 ) $ ( 0.23 ) |
Summary of Potentially Dilutive Securities | Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Stock options and restricted stock 1,147 1,451 1,252 1,622 Warrants outstanding — 3 — 51 Total common stock equivalent shares 1,147 1,454 1,252 1,673 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Acquisition [Line Items] | |
Summary of identifiable intangible assets and related expected lives for finite-lived intangible assets | The following is a summary of identifiable intangible assets acquired and the related expected lives for the finite-lived intangible assets (in thousands) : Category Estimated Fair value Finite-lived intangible assets Market-related intangibles 5 $ 1,700 Customer relationships 5 8,950 Developed technology 12 2,600 Covenants to non-compete 2 115 Indefinite-lived intangible assets In-process research and development N/A 700 Total identifiable intangible assets acquired $ 14,065 |
NimbeLink | |
Business Acquisition [Line Items] | |
Summary of Fair Value of Purchase Consideration | The following table summarizes the fair value of purchase consideration to acquire NimbeLink (in thousands) : Cash $ 15,991 Deferred payments (1) 728 Contingent consideration (2) 5,986 Replacement options (3) 40 Total purchase consideration $ 22,745 (1) The fair value of the holdback payment was determined by discounting to present value, payments totaling $ 0.7 million expected to be made to NimbeLink fifteen months after the close of the transaction. (2) The fair value of contingent consideration is based on applying the Monte Carlo simulation method to forecast achievement under various contingent consideration events which may result in up to $ 8 million in payments subject to the acquired business’s satisfying certain revenue targets in 2021. Key inputs in the valuation include forecasted revenue, revenue volatility and discount rate. Underlying forecast mathematics were based on Geometric Brownian Motion in a risk-neutral framework and discounted back to the applicable period in which the accumulative thresholds were achieved at discount rates commensurate with the risk and expected payout term of the contingent consideration. (3) Represents the pre-combination stock compensation expense for replacement options issued to NimbeLink employees. |
Summary of Assets Acquired and Liabilities Assumed at Fair Value | The following is an allocation of purchase price as of the closing date based upon a preliminary estimate of the fair value of the assets acquired and liabilities assumed by the Company in the acquisition (in thousands) : Cash $ 1,806 Accounts receivable 1,127 Inventory 1,671 Prepaids and other current assets 141 Property and equipment 151 Right of use assets 402 Other assets 194 Identified intangible assets 14,065 Accounts payable ( 654 ) Accrued compensation ( 139 ) Accrued expenses and other current liabilities ( 432 ) Short-term lease liabilities ( 78 ) Long-term lease liabilities ( 324 ) Deferred tax liabilities ( 2,330 ) Identifiable net assets acquired 15,600 Goodwill 7,145 Total purchase price $ 22,745 |
Summary of Unaudited Pro forma Revenue and Income (loss) | The following unaudited pro forma financial information presents the combined results of operations for each of the periods presented as if the NimbeLink acquisition had occurred at the beginning of 2020 (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net revenue - pro forma combined $ 15,455 $ 15,323 $ 50,161 $ 45,244 Net loss - pro forma combined ( 3,069 ) ( 1,140 ) ( 5,442 ) ( 3,988 ) The following adjustments were included in the unaudited pro forma combined net revenues (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net revenue $ 15,455 $ 13,010 $ 50,129 $ 35,672 Add: Net revenue - acquired businesses — 2,313 32 9,572 Net revenues - pro-forma combined $ 15,455 $ 15,323 $ 50,161 $ 45,244 The following adjustments were included in the unaudited pro forma combined net income (loss) (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net income (loss) $ ( 3,069 ) $ ( 261 ) $ ( 5,441 ) $ ( 2,199 ) Add: Results of operations of acquired business — ( 338 ) ( 310 ) 228 Less: pro forma adjustments Amortization of historical intangibles — 26 — 73 Amortization of acquired intangibles — ( 583 ) ( 38 ) ( 1,800 ) Inventory fair value adjustments — — 353 ( 353 ) Interest income — — ( 6 ) — Interest expense — 16 — 63 Net loss - pro forma combined $ ( 3,069 ) $ ( 1,140 ) $ ( 5,442 ) $ ( 3,988 ) |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents by Significant Investment Category | The following tables show the Company’s cash and cash equivalents by significant investment category as of September 30, 2021 and December 31, 2020 (in thousands) : September 30, 2021 Amortized Estimated fair value Cash and cash Cash $ 7,145 $ 7,145 $ 7,145 Level 1: Money market funds 11,809 11,809 11,809 Total $ 18,954 $ 18,954 $ 18,954 December 31, 2020 Amortized Estimated fair value Cash and cash Cash $ 2,779 $ 2,779 $ 2,779 Level 1: Money market funds 35,394 35,394 35,394 Total $ 38,173 $ 38,173 $ 38,173 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands) : September 30, December 31, 2021 2020 Computers and software $ 607 $ 596 Furniture, fixtures, and equipment 400 400 Manufacturing and testing equipment 4,693 3,874 Construction in process — 120 Leasehold improvements 932 932 Property and equipment, gross 6,632 5,922 Less accumulated depreciation ( 3,934 ) ( 3,545 ) Property and equipment, net $ 2,698 $ 2,377 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in the Carrying Amount of Goodwill | The change in the carrying amount of goodwill was as follows (in thousands) : Goodwill as of December 31, 2020 $ 3,700 Goodwill from NimbeLink acquisition 7,145 Goodwill as of September 30, 2021 $ 10,845 |
Summary of Acquired Intangible Assets | The following is a summary of the Company’s acquired intangible assets (dollars in thousands) : September 30, 2021 December 31, 2020 Weighted Gross Accumulated Net Gross Accumulated Net Market related intangibles 5 $ 1,820 $ 370 $ 1,450 $ 120 $ 120 $ — Customer relationships 7 13,780 3,879 9,901 4,830 2,203 2,627 Developed technologies 11 4,380 819 3,561 1,080 539 541 Covenants to non-compete 2 115 42 73 — — — Total intangible assets, net $ 20,095 $ 5,110 $ 14,985 $ 6,030 $ 2,862 $ 3,168 |
Schedule of Estimated Annual Amortization of Intangible Assets | The estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table (in thousands) : Estimated future amortization 2021 (remaining three months) $ 756 2022 3,026 2023 2,969 2024 2,968 2025 2,958 Thereafter 2,308 Total $ 14,985 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Summary of Accrued Liabilities and Other | Accrued liabilities and other is comprised of the following (in thousands) : September 30, December 31, 2021 2020 Accrued expenses $ 883 $ 519 VAT payable 339 327 Accrued income taxes 143 182 Contract liabilities 87 19 Other current liabilities 735 140 Accrued liabilities and other $ 2,187 $ 1,187 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments Under Operating Leases | The table below presents aggregate future minimum payments due under leases, reconciled to lease liabilities included in the consolidated balance sheet as of September 30, 2021 (in thousands) : 2021 (remaining three months) $ 279 2022 866 2023 777 2024 773 2025 673 Total minimum payments 3,368 Less imputed interest ( 231 ) Less unrealized translation gain 1 Total lease liabilities 3,138 Less short-term lease liabilities ( 864 ) Long-term lease liability $ 2,274 The future minimum lease payments required under operating leases as of December 31, 2020, in accordance with ASC 840, Leases , were as follows (in thousands) : Year ending: 2021 $ 992 2022 721 2023 705 2024 689 2025 615 Total $ 3,722 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Class of Stock Disclosures [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | The following table presents common stock reserved for future issuance (1) (in thousands) : September 30, December 31, 2021 2020 Warrants issued and outstanding — 51 Stock option awards issued and outstanding 1,953 1,760 Authorized for grants under the 2016 Equity Incentive Plan (2) 372 357 Authorized for grants under the Inducement Plan (3) 116 — Authorized for grants under the 2016 Employee Stock Purchase Plan (4) 326 256 2,767 2,424 (1) The table above excludes 541,000 and 534,000 treasury shares as of September 30, 2021 and December 31, 2020 , respectively. (2) On January 1, 2021, the number of authorized shares in the 2016 Plan increased by 391,000 shares pursuant to the evergreen provisions of the 2016 Plan. (3) On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan; 187,700 shares were issued under the Inducement Plan during the nine months ended September 30, 2021 (4) On January 1, 2021, the number of authorized shares in the 2016 Employee Stock Purchase Plan increased by 98,000 shares pursuant to the evergreen provisions of the 2016 Employee Stock Purchase Plan. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule Of Stock Based Compensation Expenses | Stock-based compensation is recorded in the consolidated statements of operations as follows (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Cost of goods sold $ 1 $ — $ 3 $ — Research and development 211 124 591 425 Sales and marketing 230 101 658 291 General and administrative 626 409 1,752 1,240 Total stock-based compensation expense $ 1,068 $ 634 $ 3,004 $ 1,956 |
Summary of Outstanding Stock Option Activity | The following table summarizes the outstanding stock option activity during the period indicated (shares in thousands) : Weighted average Number of Exercise Remaining Balance at December 31, 2020 1,760 $ 10.07 7.6 Granted 516 22.43 Exercised ( 226 ) 11.11 Expired/Forfeited ( 97 ) 14.26 Balance at September 30, 2021 1,953 13.00 7.5 Vested and exercisable at September 30, 2021 1,079 9.47 6.5 Vested and expected to vest at September 30, 2021 1,953 13.00 7.5 |
Summary of Outstanding Restricted Stock Unit Activity | The following table summarizes the Company's restricted stock unit activity during the period indicated (shares in thousands) : Restricted Weighted Balance at December 31, 2020 202 $ 10.51 Grants 223 22.28 Vested and released ( 61 ) 10.43 Forfeited ( 61 ) 14.15 Balance at September 30, 2021 303 18.44 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Sales and Accounts Receivable | The following represents customers that accounted for 10 % or more of total revenue during the three and nine months ended September 30, 2021 and 2020. Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Customer A 20 % 32 % 23 % 33 % Customer B 8 % 15 % 15 % 10 % Customer C 13 % 5 % 13 % 6 % Customer D 14 % 0 % 8 % 0 % Customer E 2 % 10 % 4 % 7 % The following represents customers that accounted for 10 % or more of total trade accounts receivable at September 30, 2021 and December 31, 2020. September 30, December 31, 2021 2020 Customer A 21 % 23 % Customer B 18 % 0 % Customer C 11 % 17 % Customer D 9 % 13 % |
Summary Of Property and Equipment By Geographical Region | The Company’s property and equipment, net by geographic region are as follows: September 30, December 31, 2021 2020 North America $ 2,233 $ 1,936 Asia Pacific (APAC) 262 249 Europe, Middle East and Africa (EMEA) 203 192 Property and equipment, net $ 2,698 $ 2,377 |
Disaggregated Revenue (Tables)
Disaggregated Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregated Revenue | Disaggregated revenue are as follows (in thousands) : Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 By Sales Channel: Distributors and resellers $ 8,076 $ 9,406 $ 31,101 $ 23,830 OEM/ODM/Contract manufacturer 2,014 3,244 7,193 10,998 Other 5,365 360 11,835 844 Total sales $ 15,455 $ 13,010 $ 50,129 $ 35,672 By Market Group: Consumer $ 4,599 $ 10,381 $ 23,800 $ 27,489 Enterprise 8,698 $ 794 19,231 2,575 Automotive 2,158 $ 1,835 7,098 5,608 Total sales $ 15,455 $ 13,010 $ 50,129 $ 35,672 By Geography: China (including Hong Kong and Taiwan) $ 5,916 $ 9,734 $ 25,025 $ 25,881 North America 8,927 2,434 23,061 7,193 Rest of the world 612 842 2,043 2,598 Total sales $ 15,455 $ 13,010 $ 50,129 $ 35,672 Enterprise revenue for three and nine months ended September 30, 2021, is primarily comprised of revenue generated from the sale of industrial Internet of Things products that were acquired through the NimbeLink acquisition. Revenue generated from the United States was $ 8.8 million and $ 2.4 million for the three months ended September 30, 2021 and 2020 , respectively, and $ 22.5 million and $ 6.9 million for the nine months ended September 30, 2021 and 2020 , respectively. |
Description of Business and B_3
Description of Business and Basis of Presentation - Additional Information (Details) | Jan. 07, 2021USD ($) | Sep. 30, 2021Segment |
Business Acquisition [Line Items] | ||
Number of operating segments | Segment | 1 | |
NimbeLink | ||
Business Acquisition [Line Items] | ||
Business combination, consideration transferred, upfront cash purchase price | $ 15,000,000 | |
Business combination, consideration transferred, working capital and other customary adjustments | 1,000,000 | |
Business combination, consideration transferred, deferred cash payments | 728,000 | |
NimbeLink | Maximum | ||
Business Acquisition [Line Items] | ||
Business combination, consideration transferred, additional considerations | $ 8,000,000 |
Significant Accounting Policies
Significant Accounting Policies - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2021USD ($)d | Dec. 31, 2020USD ($) | |
Significant Accounting Policies [Line Items] | ||
Restricted cash | $ 200,000 | |
Allowance for doubtful trade accounts receivable | 20,000 | $ 0 |
Inventory raw material | 5,500,000 | 800,000 |
Inventory work in progress | 100,000 | |
Inventory held at contract manufacturing facilities | 2,200,000 | |
Inventory finished good | 1,000,000 | 200,000 |
Provision for excess and obsolete inventories | 29,000 | 10,000 |
Reserve For Pricing Credits And Rights Of Return | 14,000 | 0 |
Contract asset | 0 | 0 |
Contract liability | 87,000 | 19,000 |
Warranty Reserves [Member] | ||
Significant Accounting Policies [Line Items] | ||
Estimated warranty costs | $ 15,000 | $ 10,000 |
Minimum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Revenue Recognition Payment Terms | d | 30 | |
Maximum [Member] | ||
Significant Accounting Policies [Line Items] | ||
Revenue Recognition Payment Terms | d | 120 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net loss | $ (3,069) | $ (261) | $ (5,441) | $ (2,199) |
Denominator: | ||||
Basic weighted average common shares outstanding | 10,082 | 9,710 | 9,993 | 9,694 |
Plus dilutive effect of potential common shares | 0 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding | 10,082 | 9,710 | 9,993 | 9,694 |
Net loss per share: | ||||
Basic | $ (0.30) | $ (0.03) | $ (0.54) | $ (0.23) |
Diluted | $ (0.30) | $ (0.03) | $ (0.54) | $ (0.23) |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Potentially Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 1,147 | 1,454 | 1,252 | 1,673 |
Stock Options and Restricted Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 1,147 | 1,451 | 1,252 | 1,622 |
Warrants Outstanding | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Potentially dilutive securities not included in the calculation of diluted net loss per share | 0 | 3 | 0 | 51 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) | Jan. 07, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 10,845,000 | $ 10,845,000 | $ 3,700,000 | |||
Sales | 15,455,000 | $ 13,010,000 | 50,129,000 | $ 35,672,000 | ||
Net income (loss) | (3,069,000) | (261,000) | (5,441,000) | (2,199,000) | ||
Change in fair value of contingent consideration | 103,000 | $ 0 | 1,660,000 | $ 0 | ||
NimbeLink | ||||||
Business Acquisition [Line Items] | ||||||
Upfront cash purchase price | $ 15,991,000 | |||||
Cash purchase price prior to customary adjustments | 15,000,000 | |||||
Other Customary Adjustments | 1,000,000 | |||||
Deferred payments | 728,000 | |||||
Purchase price allocation, inventory step-up | 400,000 | |||||
Goodwill | 7,145,000 | |||||
Net income (loss) | 500,000 | 400,000 | ||||
Change in fair value of contingent consideration | 100,000 | 1,700,000 | ||||
Business Combination, Contingent Consideration | $ 7,600,000 | $ 7,600,000 | ||||
IPR&D projects estimated life | 12 years | |||||
NimbeLink | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, consideration transferred, contingent considerations | $ 8,000,000 |
Business Combinations - Summary
Business Combinations - Summary of Fair Value of Purchase Consideration (Details) - NimbeLink $ in Thousands | Jan. 07, 2021USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 15,991 |
Deferred payments | 728 |
Contingent consideration | 5,986 |
Replacement options | 40 |
Total purchase consideration | $ 22,745 |
Business Combination - Summary
Business Combination - Summary of Fair Value of Purchase Consideration (Parenthetical) (Details) - NimbeLink $ in Thousands | Jan. 07, 2021USD ($) |
Business Acquisition [Line Items] | |
Deferred payments | $ 728 |
Contingent consideration | 5,986 |
Maximum | |
Business Acquisition [Line Items] | |
Contingent consideration | $ 8,000 |
Business Combinations - Summa_2
Business Combinations - Summary of Assets Acquired and Liabilities Assumed at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jan. 07, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 10,845 | $ 3,700 | |
NimbeLink [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 1,806 | ||
Accounts receivable | 1,127 | ||
Inventory | 1,671 | ||
Prepaid and other current assets | 141 | ||
Property and equipment | 151 | ||
Right of use assets | 402 | ||
Other assets | 194 | ||
Identified intangible assets | 14,065 | ||
Accounts payable | (654) | ||
Accrued compensation | (139) | ||
Accrued expenses and other current liabilities | (432) | ||
Short-term lease liabilities | (78) | ||
Long-term lease liabilities | (324) | ||
Deferred tax liabilities | (2,330) | ||
Identifiable net assets acquired | 15,600 | ||
Goodwill | 7,145 | ||
Total purchase price | $ 22,745 |
Business Combinations - Summa_3
Business Combinations - Summary of Identifiable Intangible Assets and Related Expected Lives for Finite-lived Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived intangible assets, fair value | $ 14,065 |
Market related intangibles | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated life in years | 5 years |
Finite-lived intangible assets, fair value | $ 1,700 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated life in years | 5 years |
Finite-lived intangible assets, fair value | $ 8,950 |
Developed technologies | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated life in years | 12 years |
Finite-lived intangible assets, fair value | $ 2,600 |
Covenants to non-compete | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets, Estimated life in years | 2 years |
Finite-lived intangible assets, fair value | $ 115 |
In-process research and development | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived intangible assets, fair value | $ 700 |
Business Combinations - Summa_4
Business Combinations - Summary of Unaudited Pro Forma Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Net revenue - pro forma combined | $ 15,455 | $ 15,323 | $ 50,161 | $ 45,244 |
Net loss - pro forma combined | (3,069) | (1,140) | (5,442) | (3,988) |
NimbeLink [Member] | ||||
Business Acquisition [Line Items] | ||||
Net revenue - pro forma combined | 15,455 | 15,323 | 50,161 | 45,244 |
Net loss - pro forma combined | $ (3,069) | $ (1,140) | $ (5,442) | $ (3,988) |
Business Combinations - Summa_5
Business Combinations - Summary of Adjustments in Unaudited Pro Forma Combined Net Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Net revenue | $ 15,455 | $ 13,010 | $ 50,129 | $ 35,672 |
Net revenue - pro forma combined | 15,455 | 15,323 | 50,161 | 45,244 |
NimbeLink | ||||
Business Acquisition [Line Items] | ||||
Add: Net revenue - acquired businesses | 0 | 2,313 | 32 | 9,572 |
Net revenue - pro forma combined | $ 15,455 | $ 15,323 | $ 50,161 | $ 45,244 |
Business Combinations - Summa_6
Business Combinations - Summary of Adjustments in Unaudited Pro Forma Combined Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Net loss | $ (3,069) | $ (261) | $ (5,441) | $ (2,199) |
Add: Results of operations of acquired business | 0 | (338) | (310) | 228 |
Less: pro forma adjustments | ||||
Amortization of historical intangibles | 0 | 26 | 0 | 73 |
Amortization of acquired intangibles | 0 | (583) | (38) | (1,800) |
Inventory fair value adjustments | 0 | 0 | 353 | (353) |
Interest income | 0 | 0 | (6) | 0 |
Interest expense | 0 | 16 | 0 | 63 |
Net loss - pro forma combined | $ (3,069) | $ (1,140) | $ (5,442) | $ (3,988) |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents by Significant Investment Category (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Cash And Cash Equivalents And Short Term Investments [Line Items] | |||
Cash | $ 7,145 | $ 2,779 | |
Cash and cash equivalents and Short term investments, Amortized cost | 18,954 | 38,173 | |
Cash and cash equivalents and Short term investments, Estimated fair value | 18,954 | 38,173 | |
Cash and cash equivalents | 18,954 | 38,173 | $ 35,795 |
Money Market Funds | Level 1 | |||
Cash And Cash Equivalents And Short Term Investments [Line Items] | |||
Cash equivalents | $ 11,809 | $ 35,394 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | $ 100 | $ 100 | $ 389 | $ 348 |
Other Property and Equipment | Minimum | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 3 years | |||
Other Property and Equipment | Maximum | ||||
Property Plant And Equipment [Line Items] | ||||
Property and equipment, estimated useful life | 15 years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 6,632 | $ 5,922 |
Less accumulated depreciation | (3,934) | (3,545) |
Property and equipment, net | 2,698 | 2,377 |
Computers and Software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 607 | 596 |
Furniture, Fixtures, and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 400 | 400 |
Manufacturing and Testing Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 4,693 | 3,874 |
Construction in Process | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 0 | 120 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 932 | $ 932 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Change in the Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 3,700 |
Goodwill from NimbeLink acquisition | 7,145 |
Goodwill, Ending Balance | $ 10,845 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 20,095 | $ 6,030 |
Accumulated amortization | 5,110 | 2,862 |
Total | $ 14,985 | 3,168 |
Market related intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 5 years | |
Gross carrying amount | $ 1,820 | 120 |
Accumulated amortization | 370 | 120 |
Total | $ 1,450 | 0 |
Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 7 years | |
Gross carrying amount | $ 13,780 | 4,830 |
Accumulated amortization | 3,879 | 2,203 |
Total | $ 9,901 | 2,627 |
Developed technologies | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 11 years | |
Gross carrying amount | $ 4,380 | 1,080 |
Accumulated amortization | 819 | 539 |
Total | $ 3,561 | 541 |
Covenants to non-compete | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 2 years | |
Gross carrying amount | $ 115 | 0 |
Accumulated amortization | 42 | 0 |
Total | $ 73 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Annual Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 (remaining three months) | $ 756 | |
2022 | 3,026 | |
2023 | 2,969 | |
2024 | 2,968 | |
2025 | 2,958 | |
Thereafter | 2,308 | |
Total | $ 14,985 | $ 3,168 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 800 | $ 200 | $ 2,248 | $ 475 |
Accrued Liabilities and Other -
Accrued Liabilities and Other - Summary of Accrued Liabilities and Other (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued expenses | $ 883 | $ 519 |
VAT payable | 339 | 327 |
Accrued income taxes | 143 | 182 |
Contract liabilities | 87 | 19 |
Other current liabilities | 735 | 140 |
Accrued liabilities and other | $ 2,187 | $ 1,187 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Leased right-of-use assets | $ 2,840,000 | $ 2,840,000 | $ 0 | ||
Operating lease liability | $ 3,138,000 | $ 3,138,000 | |||
Lessee operating lease description | The practical expedients allowed the Company to not reassess (i) whether expired or existing contracts contained leases, (ii) lease classification for expired or existing leases and (iii) previously capitalized initial direct costs. | ||||
Operating lease option to extend | 5 years | ||||
Operating lease weighted average discount rate percent | 3.50% | 3.50% | |||
Operating lease weighted average remaining lease term | 3 years 10 months 24 days | 3 years 10 months 24 days | |||
Right-of-use asset obtained in exchange for operating lease liability | $ 0 | ||||
Operating lease cost | $ 300,000 | $ 300,000 | 1,000,000 | $ 800,000 | |
Short-term leases expense | $ 43,000 | $ 75,000 | |||
Short-term lessee operating lease term of contract | twelve months or less | ||||
Maximum [Member] | |||||
Operating lease term of contract | 7 years | 7 years | |||
Minimum [Member] | |||||
Operating lease term of contract | 2 years | 2 years | |||
NimbeLink [Member] | |||||
Leased right-of-use assets | $ 400,000 | $ 400,000 | |||
Operating lease liability | 400,000 | $ 400,000 | |||
Office Warehouse And Test House Member | |||||
Lease Expiration Date | Dec. 31, 2025 | ||||
ASC 842 [Member] | |||||
Leased right-of-use assets | 3,200,000 | $ 3,200,000 | |||
Operating lease liability | $ 3,500,000 | $ 3,500,000 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments on Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remaining three months) | $ 279 | |
2022 | 866 | |
2023 | 777 | |
2024 | 773 | |
2025 | 673 | |
2021 | $ 992 | |
2022 | 721 | |
2023 | 705 | |
2024 | 689 | |
2025 | 615 | |
Total minimum payments | 3,368 | 3,722 |
Less imputed interest | (231) | |
Less unrealized translation gain | 1 | |
Total lease liabilities | 3,138 | |
Less short-term lease liabilities | (864) | 0 |
Long-term lease liability | $ 2,274 | $ 0 |
Notes Payable and Line of Cre_2
Notes Payable and Line of Credit - Additional Information (Details) - Choice Financial Group (Choice) - USD ($) $ in Thousands | Jan. 07, 2021 | Jan. 07, 2021 | Sep. 30, 2021 |
NimbeLink | Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility allowable amount | $ 1,500 | $ 1,500 | |
Line of credit facility, percentage of aggregate eligible accounts | 80.00% | ||
Line of credit facility, percentage of net allowance | 10.00% | ||
Line of credit facility, percentage of raw materials and finished goods | 25.00% | ||
Line of credit facility, percentage of reserve for excess and obsolete inventory | 10.00% | ||
Line of Credit | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility covenant terms | The facility was secured by a commercial guarantee and a lien over the property of NimbeLink including inventory, equipment, accounts receivable, investments, deposit accounts, other rights to payment and performance and general intangibles. No amounts were borrowed under this facility during the nine months ended September 30, 2021 and in April 2021, the Company closed the Line of Credit with Choice. | ||
Line of credit facility current borrowing capacity | $ 0 | ||
Prime Rate | Line of Credit | |||
Line Of Credit Facility [Line Items] | |||
Basis spread on variable interest rate | 1.00% | ||
Line of credit facility frequency of payments | monthly | ||
Line of credit facility interest rate description | prime rate plus 1%, payable monthly |
Treasury Stock - Additional Inf
Treasury Stock - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 25 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchase, shares | 7,200 | 7,200 | 170,000 | ||
Stock repurchase, cost | $ 97,000,000 | $ 97,000,000 | |||
Common stock repurchase, value | $ 1,700,000 | $ 1,700,000 | $ 1,700,000 | ||
Common Stock | Share Repurchase Program September 9, 2019 | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Period of stock repurchase program | 12 months | ||||
Additional period of stock repurchase program | 12 months | ||||
Common Stock | Share Repurchase Program September 9, 2019 | Maximum | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock approved for repurchase, value | $ 7,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 28.90% | (14.20%) | |
U.S. federal statutory tax rate | 21.00% | ||
Net deferred tax assets | $ 8.5 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - shares | Sep. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Common stock, reserved for future issuance | [1] | 2,767,000 | 2,424,000 | |
2021 Inducement Plan | ||||
Class Of Stock [Line Items] | ||||
Shares available for grant | 300,000 | |||
Common stock, reserved for future issuance | [1],[2] | 116,000 | 0 | |
2016 Equity Incentive Plan | ||||
Class Of Stock [Line Items] | ||||
Common stock, reserved for future issuance | [1],[3] | 372,000 | 357,000 | |
2016 Equity Incentive Plan | NimbeLink | ||||
Class Of Stock [Line Items] | ||||
Common stock, reserved for future issuance | 22,871 | |||
[1] | The table above excludes 541,000 and 534,000 treasury shares as of September 30, 2021 and December 31, 2020 , respectively. | |||
[2] | On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan; 187,700 shares were issued under the Inducement Plan during the nine months ended September 30, 2021 | |||
[3] | On January 1, 2021, the number of authorized shares in the 2016 Plan increased by 391,000 shares pursuant to the evergreen provisions of the 2016 Plan. |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1] | 2,767,000 | 2,424,000 |
Warrants Issued and Outstanding | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1] | 0 | 51,000 |
Stock Option Awards Issued and Outstanding | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1] | 1,953,000 | 1,760,000 |
Authorized for Grants under the 2016 Equity Incentive Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1],[2] | 372,000 | 357,000 |
Authorized for grants under the 2016 Employee Stock Purchase Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1],[3] | 326,000 | 256,000 |
Authorized for Grants under the Inducement Plan | |||
Class Of Stock [Line Items] | |||
Common stock, reserved for future issuance | [1],[4] | 116,000 | 0 |
[1] | The table above excludes 541,000 and 534,000 treasury shares as of September 30, 2021 and December 31, 2020 , respectively. | ||
[2] | On January 1, 2021, the number of authorized shares in the 2016 Plan increased by 391,000 shares pursuant to the evergreen provisions of the 2016 Plan. | ||
[3] | On January 1, 2021, the number of authorized shares in the 2016 Employee Stock Purchase Plan increased by 98,000 shares pursuant to the evergreen provisions of the 2016 Employee Stock Purchase Plan. | ||
[4] | On February 5, 2021, 300,000 shares were authorized pursuant to the terms of the Inducement Plan; 187,700 shares were issued under the Inducement Plan during the nine months ended September 30, 2021 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Common Stock Reserved for Future Issuance (Parenthetical) (Details) - shares | Jan. 01, 2021 | Sep. 30, 2021 | Feb. 05, 2021 | Dec. 31, 2020 |
Class Of Stock [Line Items] | ||||
Treasury stock, shares at cost | 541,000 | 534,000 | ||
2016 Equity Incentive Plan | ||||
Class Of Stock [Line Items] | ||||
Number of authorized shares increased | 391,000 | |||
2016 Employee Stock Purchase Plan | ||||
Class Of Stock [Line Items] | ||||
Number of authorized shares increased | 98,000 | |||
2021 Inducement Plan | ||||
Class Of Stock [Line Items] | ||||
Number of authorized shares | 300,000 | |||
Number of shares issued | 187,700 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule Of Stock Based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based payment arrangement, expense | $ 1,068 | $ 634 | $ 3,004 | $ 1,956 |
Cost of goods sold | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based payment arrangement, expense | 1 | 0 | 3 | 0 |
Research and Development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based payment arrangement, expense | 211 | 124 | 591 | 425 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based payment arrangement, expense | 230 | 101 | 658 | 291 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based payment arrangement, expense | $ 626 | $ 409 | $ 1,752 | $ 1,240 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Outstanding Stock Option Activity (Details) - $ / shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Number of stock options, Beginning balance | 1,760 | |
Number of stock options, Granted | 516 | |
Number of stock options, Exercised | (226) | |
Number of stock options, Expired/Forfeited | (97) | |
Number of stock options, Ending balance | 1,953 | 1,760 |
Number of stock options, Vested and exercisable | 1,079 | |
Number of stock options, Vested and expected to vest | 1,953 | |
Weighted average exercise price, Beginning balance | $ 10.07 | |
Weighted average exercise price, Granted | 22.43 | |
Weighted average exercise price, Exercised | 11.11 | |
Weighted average exercise price, Expired/Forfeited | 14.26 | |
Weighted average exercise price, Ending balance | 13 | $ 10.07 |
Weighted average exercise price, Vested and exercisable | 9.47 | |
Weighted average exercise price, Vested and expected to vest | $ 13 | |
Weighted average remaining contractual term (in years) | 7 years 6 months | 7 years 7 months 6 days |
Weighted average remaining contractual term (in years), Vested and exercisable | 6 years 6 months | |
Weighted average remaining contractual term (in years), Vested and expected to vest | 7 years 6 months |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average grant-date fair value of options granted | $ 10.66 | $ 4.30 | |||
Stock options vested and expected to vest aggregate intrinsic value | $ 4,300 | $ 4,300 | $ 13,600 | ||
Share-based payment arrangement, expense | $ 1,068 | $ 634 | $ 3,004 | $ 1,956 | |
Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Offering period of employee stock purchase plan | 6 months | ||||
Limited percentage of annual contribution | 20.00% | 20.00% | |||
Percentage of discount and fair value of option | 15.00% | ||||
Proceeds from stock issued during period | $ 200 | $ 300 | |||
Number of stock issued during period | 17,000 | 27,000 | |||
Employee Stock Purchase Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Purchase price percentage of market value of common stock | 85.00% | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Total unrecognized compensation cost of unvested stock options | $ 6,000 | $ 6,000 | |||
Total unrecognized compensation cost, period for recognition | 2 years 7 months 6 days | ||||
Restricted Stock Unit (RSU) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Weighted average remaining contractual term | 3 years | ||||
Total unrecognized compensation cost | $ 4,600 | $ 4,600 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Outstanding Restricted Stock Unit Activity (Details) - Restricted Stock Unit (RSU) shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted stock units, Beginning balance | shares | 202 |
Restricted stock units, Grants | shares | 223 |
Restricted stock units, Vested and released | shares | (61) |
Restricted stock units, Forfeited | shares | 61 |
Restricted stock units, Ending balance | shares | 303 |
Weighted average grant date fair value, Beginning balance | $ / shares | $ 10.51 |
Weighted average grant date fair value, Grants | $ / shares | 22.28 |
Weighted average grant date fair value, Vested and released | $ / shares | 10.43 |
Weighted average grant date fair value, Forfeited | $ / shares | 14.15 |
Weighted average grant date fair value, Ending balance | $ / shares | $ 18.44 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Supply Agreement - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2021 | |
Commitment And Contingencies [Line Items] | ||
Payments for inventory | $ 2 | |
Maximum | ||
Commitment And Contingencies [Line Items] | ||
Purchase of inventory | $ 2 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Details) - Vendor | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
China | |||||
Concentration Risk [Line Items] | |||||
Number of vendors | 3 | 3 | |||
Vietnam | |||||
Concentration Risk [Line Items] | |||||
Number of vendors | 1 | 1 | |||
Minnesota | |||||
Concentration Risk [Line Items] | |||||
Number of vendors | 1 | 1 | |||
Customer Concentration Risk | Major Customers | Net Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 10.00% | |
Customer Concentration Risk | Major Customers | Trade Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% |
Concentration of Credit Risk _2
Concentration of Credit Risk - Schedule of Concentration of Sales and Accounts Receivable (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Net Revenue | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20.00% | 32.00% | 23.00% | 33.00% | |
Net Revenue | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 8.00% | 15.00% | 15.00% | 10.00% | |
Net Revenue | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13.00% | 5.00% | 13.00% | 6.00% | |
Net Revenue | Customer D | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 14.00% | 0.00% | 8.00% | 0.00% | |
Net Revenue | Customer E | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 2.00% | 10.00% | 4.00% | 7.00% | |
Trade Accounts Receivable | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 21.00% | 23.00% | |||
Trade Accounts Receivable | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 18.00% | 0.00% | |||
Trade Accounts Receivable | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.00% | 17.00% | |||
Trade Accounts Receivable | Customer D | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 9.00% | 13.00% |
Concentration of Credit Risk _3
Concentration of Credit Risk - Schedule of Concentration of Fixed Assets by Geographical Regions (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 2,698 | $ 2,377 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 2,233 | 1,936 |
Asia Pacific (APAC) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | 262 | 249 |
Europe, Middle East and Africa (EMEA) | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net | $ 203 | $ 192 |
Disaggregated Revenue - Summary
Disaggregated Revenue - Summary of Disaggregated Revenue By Sales Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | $ 15,455 | $ 13,010 | $ 50,129 | $ 35,672 |
Distributors and resellers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | 8,076 | 9,406 | 31,101 | 23,830 |
OEM/ODM/Contract Manufacturer | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | 2,014 | 3,244 | 7,193 | 10,998 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | $ 5,365 | $ 360 | $ 11,835 | $ 844 |
Disaggregated Revenue - Summa_2
Disaggregated Revenue - Summary of Disaggregated Revenue By Market Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 15,455 | $ 13,010 | $ 50,129 | $ 35,672 |
Consumer | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 4,599 | 10,381 | 23,800 | 27,489 |
Enterprise | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 8,698 | 794 | 19,231 | 2,575 |
Automotive | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 2,158 | $ 1,835 | $ 7,098 | $ 5,608 |
Disaggregated Revenue - Summa_3
Disaggregated Revenue - Summary of Disaggregated Revenue By Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | $ 15,455 | $ 13,010 | $ 50,129 | $ 35,672 |
China including Hong Kong and Taiwan | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | 5,916 | 9,734 | 25,025 | 25,881 |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | 8,927 | 2,434 | 23,061 | 7,193 |
Rest of the world | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | $ 612 | $ 842 | $ 2,043 | $ 2,598 |
Disaggregated Revenues - Additi
Disaggregated Revenues - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | $ 15,455 | $ 13,010 | $ 50,129 | $ 35,672 |
United States | NimbeLink | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregated revenues | $ 8,800 | $ 2,400 | $ 22,500 | $ 6,900 |