Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Contract with Customer, Liability, Current, Change | ||
Entity Registrant Name | Microvision, Inc. | |
Trading Symbol | MVIS | |
Entity Listing, Security Trading Currency | USD | |
Entity Listing, Par Value Per Share | $ 0.001 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Central Index Key | 0000065770 | |
Entity File Number | 001-34170 | |
Entity Incorporation, State or Country Code | DE | |
Interactive Data Current | Yes | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 142,552,628 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,325 | $ 5,837 |
Accounts receivable, net of allowances of $0 and $0, respectively | 552 | 1,079 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 0 |
Inventory | 0 | 192 |
Other current assets | 413 | 729 |
Total current assets | 3,290 | 7,837 |
Property and equipment, net | 1,733 | 1,849 |
Operating lease right-of-use asset | 1,221 | 1,308 |
Restricted cash | 435 | 435 |
Intangible assets | 207 | 221 |
Other assets | 18 | 186 |
Total assets | 6,904 | 11,836 |
Current liabilities | ||
Accounts payable | 2,113 | 1,871 |
Accrued liabilities | 837 | 2,045 |
Deferred revenue | 15 | 21 |
Contract liabilities | 9,271 | 9,755 |
Other current liabilities | 42 | 83 |
Current portion of operating lease liability | 661 | 656 |
Current portion of finance lease obligations | 23 | 25 |
Total current liabilities | 12,962 | 14,456 |
Operating lease liability, net of current portion | 1,211 | 1,348 |
Finance lease obligations, net of current portion | 5 | 9 |
Total liabilities | 14,178 | 15,813 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity (deficit) | ||
Preferred stock, par value $0.001; 25,000 shares authorized; 0 and 0 shares issued and outstanding | 0 | 0 |
Common stock, par value $0.001; 150,000 shares authorized; 130,878 and 125,803 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 131 | 126 |
Additional paid-in capital | 570,128 | 568,496 |
Accumulated deficit | (577,533) | (572,599) |
Total shareholders' equity (deficit) | (7,274) | (3,977) |
Total liabilities and shareholders' equity (deficit) | 6,904 | 11,836 |
Reconciliation of cash, cash equivalents, and restricted cash balances | ||
Cash and cash equivalents | 2,325 | 5,837 |
Restricted cash | 435 | 435 |
Cash, cash equivalents, and restricted cash | $ 2,760 | $ 6,272 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Allowance for doubtful accounts receivable, current | $ 0 | $ 0 |
Stockholders equity | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000 | 25,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000 | 150,000 |
Common stock, shares issued | 130,878 | 125,803 |
Common stock, shares outstanding | 130,878 | 125,803 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 1,469 | $ 1,851 |
Operating expenses: | ||
Total cost of revenue | 1,399 | 1,243 |
Gross profit | 70 | 608 |
Research and development expense | 3,683 | 5,973 |
Sales, marketing, general and administrative expense | 1,771 | 2,699 |
Gain on disposal of fixed assets | (450) | 0 |
Total operating expenses | 5,004 | 8,672 |
Loss from operations | (4,934) | (8,064) |
Other expense, net | 0 | (4) |
Net loss | $ (4,934) | $ (8,068) |
Net loss per share - basic and diluted | $ (0.04) | $ (0.08) |
Weighted-average shares outstanding - basic and diluted | 127,214,000 | 101,971,000 |
Product revenue | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,247 | $ 199 |
Operating expenses: | ||
Cost of Goods and Services Sold | 1,395 | 288 |
License and royalty | ||
Revenue from Contract with Customer, Including Assessed Tax | 212 | 0 |
Contract | ||
Revenue from Contract with Customer, Including Assessed Tax | 10 | 1,652 |
Operating expenses: | ||
Cost of Goods and Services Sold | $ 4 | $ 955 |
Condensed Statements of Shareho
Condensed Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional paid-in capital | Accumulated deficit | Total |
Beginning balances at Dec. 31, 2018 | $ 100 | $ 550,133 | $ (546,116) | $ 4,117 |
Beginning balances, shares at Dec. 31, 2018 | 100,105 | |||
Share-based compensation expense | $ 0 | 351 | 0 | 351 |
Share-based compensation expense, shares | 0 | |||
Sales of common stock | $ 2 | 1,166 | 0 | 1,168 |
Sales of common stock, shares | 2,000 | |||
Net loss | $ 0 | 0 | (8,068) | (8,068) |
Ending balances at Mar. 31, 2019 | $ 102 | 551,650 | (554,184) | (2,432) |
Ending balances, shares at Mar. 31, 2019 | 102,105 | |||
Beginning balances at Dec. 31, 2019 | $ 126 | 568,496 | (572,599) | (3,977) |
Beginning balances, shares at Dec. 31, 2019 | 125,803 | |||
Share-based compensation expense | $ 0 | 156 | 0 | 156 |
Share-based compensation expense, shares | 0 | |||
Sales of common stock | $ 5 | 1,476 | 0 | 1,481 |
Sales of common stock, shares | 5,075 | |||
Net loss | $ 0 | 0 | (4,934) | (4,934) |
Ending balances at Mar. 31, 2020 | $ 131 | $ 570,128 | $ (577,533) | $ (7,274) |
Ending balances, shares at Mar. 31, 2020 | 130,878 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (4,934) | $ (8,068) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation and amortization | 246 | 552 |
Gain on disposal of fixed assets | (450) | 0 |
Share-based compensation expense | 189 | 351 |
Inventory write-downs | 168 | 0 |
Change in: | ||
Accounts receivable, net | 527 | 202 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | (212) |
Inventory | 24 | 47 |
Other current and non-current assets | 451 | 220 |
Accounts payable | 242 | (193) |
Accrued liabilities | (1,208) | (332) |
Deferred revenue | (6) | 0 |
Billings on uncompleted contracts in excess of related costs | 0 | 5 |
Other currrent liabilities | (525) | (59) |
Operating lease liabilities | (161) | (160) |
Net cash used in operating activities | (5,437) | (7,647) |
Cash flows from investing activities | ||
Proceeds on sale of property and equipment | 525 | 0 |
Purchases of property and equipment | (75) | (313) |
Net cash provided by (used in) investing activities | 450 | (313) |
Cash flows from financing activities | ||
Principal payments under finance leases | (6) | (4) |
Net proceeds from issuance of common stock | 1,481 | 1,177 |
Net cash provided by financing activities | 1,475 | 1,173 |
Change in cash and cash equivalents, and restricted cash | (3,512) | (6,787) |
Cash, cash equivalents and restricted cash at beginning of period | 6,272 | 14,201 |
Cash, cash equivalents and restricted cash at end of period | 2,760 | 7,414 |
Supplemental schedule of non-cash investing and financing activities | ||
Non-cash additions to property and equipment | $ 37 | $ 221 |
MANAGEMENT'S STATEMENT - Note 1
MANAGEMENT'S STATEMENT - Note 1 | 3 Months Ended |
Mar. 31, 2020 | |
Management Disclosure | |
MANAGEMENT'S STATEMENT - Note 1 | 1. MANAGEMENTS STATEMENT The Condensed Balance Sheets as of March 31, 2020, the Condensed Statements of Operations and Condensed Statements of Shareholders' Equity (Deficit) for the three months ended March 31, 2020 and 2019, and Condensed Statements of Cash Flows for the three months ended March 31, 2020 and 2019, have been prepared by MicroVision, Inc. ("we" or "our") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at March 31, 2020 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (SEC). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. We have incurred significant losses since inception. In February 2020, we were informed by an original equipment manufacturer (OEM) that products using our interactive display module will not be launched in 2020 as we planned. Since we do not have orders from an OEM for 2020 delivery, we reduced our headcount by approximately 60% and focused our attention on licensing our module products and related technology to other companies. We are also exploring licensing of technology and designs and other strategic alternatives, including a potential sale or merger of the Company. We have funded our operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales and licensing activities. At March 31, 2020, we had $2.3 million in cash and cash equivalents. Based on our current operating plan that includes anticipated future proceeds from the sale of shares under our existing Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park") and the funds received in April 2020 pursuant to the loan under the Paycheck Protection Program of the 2020 CARES Act, we anticipate that we have sufficient cash and cash equivalents to fund our operations through the fourth quarter of 2020. We will require additional capital to fund our operating plan past that time. We plan to seek to obtain additional capital through the issuance of equity or debt securities, product sales and/or licensing activities. There can be no assurance that additional capital will be available to us or, if available, will be available on terms acceptable to us or on a timely basis. If adequate capital resources are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing investments in our production capacities, research and development projects, staff, operating costs, and capital expenditures. We are introducing new technology and products into an emerging market which creates significant uncertainty about our ability to accurately project revenue, costs and cash flows. Our capital requirements will depend on many factors, including, but not limited to, the commercial success of our laser beam scanning (LBS) modules, the rate at which original equipment manufacturers (OEMs) or original design manufacturers (ODMs) introduce products incorporating our PicoP® scanning technology and the market acceptance and competitive position of such products. If revenues are less than we anticipate, if the mix of revenues and the associated margins vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to fund our operations. In addition, our operating plan provides for the development of strategic relationships with suppliers of components and systems and equipment manufacturers that may require additional investments by us. These factors raise substantial doubt regarding our ability to continue as a going concern. Our unaudited financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments that might be necessary should we be unable to continue as a going concern. |
NET LOSS PER SHARE - Note 2
NET LOSS PER SHARE - Note 2 | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share - Note 2 | 2. NET LOSS PER SHARE Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the period. Net loss per share, assuming dilution, is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share, assuming dilution, is equal to basic net loss per share because the effect of dilutive securities outstanding during the period, including options and warrants computed using the treasury stock method, is anti-dilutive. The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Three Months Ended March 31, 2020 2019 Numerator: Net loss available for common shareholders - basic and diluted $ (4,934) $ (8,068) Denominator: Weighted-average common shares outstanding - basic and diluted 127,214 101,971 Net loss per share - basic and diluted $ (0.04) $ (0.08) For the three months ended March 31, 2020 and 2019, we excluded the following securities from net loss per share as the effect of including them would have been anti-dilutive: options outstanding and warrants exercisable into a total of 4,616,000 and 4,494,000 shares of common stock, respectively, and 1,185,000 and 1,149,000 nonvested restricted stock units, respectively. |
LONG-TERM CONTRACTS - Note 3
LONG-TERM CONTRACTS - Note 3 | 3 Months Ended |
Mar. 31, 2020 | |
Notes To Financial Statements Abstract | |
Long-term contracts - Note 3 | 3. LONG-TERM CONTRACTS In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million in 2017 and, as of December 31, 2019, had also received $15.0 million, net of early payment discounts, representing all payment due for development work. The original contract was for $14.0 million in fees for development work, but we and our customer agreed to add $1.1 million in additional work to total $15.1 million. After applying early payment discounts, we recognized revenue of $15.0 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. Beginning in the fourth quarter of 2019, the $10.0 million upfront payment was being recognized as revenue at the point in time that component sales were sold to the major technology customer. In March 2020, we entered into an agreement for our customer to take over production of the components we had been producing for them. The agreement provides that, beginning in March 2020, we will earn a royalty on each component shipped that is approximately equal to the gross profit we earned on each component we had previously produced. Under the new arrangement, the royalties earned will be applied against the remaining $9.3 million prepayment that we had previously received from the customer until the prepayment is exhausted. |
REVENUE RECOGNITION - Note 4
REVENUE RECOGNITION - Note 4 | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION - Note 4 | 4. REVENUE RECOGNITION The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. We evaluate contracts based on the 5-step model as stated in Topic 606 as follows: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue when (or as) performance obligations are satisfied. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct, as defined in the revenue standard. The transaction price is the amount of consideration an entity expects to be entitled to from a customer in exchange for providing the goods or services. A number of factors should be considered to determine the transaction price, including whether there is variable consideration, a significant financing component, noncash consideration, or amounts payable to the customer. The determination of variable consideration will require a significant amount of judgment. In estimating the transaction price we will use either the expected value method or the most likely amount method. The transaction price is allocated to the separate performance obligations in the contract based on relative standalone selling prices. Determining the relative standalone selling price can be challenging when goods or services are not sold on a standalone basis. The revenue standard sets out several methods that can be used to estimate a standalone selling price when one is not directly observable. Allocating discounts and variable consideration must also be considered. Allocating the transaction price can require significant judgement on our part. Revenue is recognized when (or as) the customer obtains control of the good or service/performance obligations are satisfied. Topic 606 provides guidance to help determine if a performance obligation is satisfied at a point in time or over time. Where a performance obligation is satisfied over time, the related revenue is also recognized over time. Disaggregation of revenue The following table provides information about disaggregated revenue by timing of revenue recognition (in thousands): Three Months Ended March 31, 2020 Product Royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 1,247 $ 212 $ 4 $ 1,463 Product and services transferred over time - - 6 6 Total $ 1,247 $ 212 $ 10 $ 1,469 Three Months Ended March 31, 2019 Product Royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 199 $ - $ 16 $ 215 Product and services transferred over time - - 1,636 1,636 Total $ 199 $ - $ 1,652 $ 1,851 Contract balances The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): March 31, December 31, 2020 2019 Accounts receivable, net $ 552 $ 1,079 Accrued liabilities 200 432 Deferred revenue 15 21 Contract liabilities 9,271 9,755 Under Topic 606, our rights to consideration are presented separately depending on whether those rights are conditional or unconditional. We present our unconditional rights to consideration as "accounts receivable" in our Balance Sheet. Contract liabilities in the table below are presented as contract liabilities, deferred revenue, and a portion of accrued liabilities on the balance sheet. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): March 31, December 31, 2020 2019 $ Change % Change Contract assets $ - $ - $ - - Contract liabilities (9,486) (10,208) 722 (7.1) Net contract assets (liabilities) $ (9,486) $ (10,208) $ 722 (7.1) During the three months ended March 31, 2020, we applied $485,000 against the contract liability with our April 2017 customer. During 2019, we reached an agreement with the distributor in our Ragentek contract on the final transaction price of the units shipped to them. As part of the agreement, we agreed to return $432,000 of the original transaction price to our distributor and the amount was included in accrued liabilities at December 31, 2019. During the three months ended March 31, 2020, payments totaling $232,000 were made to the distributor. Contract acquisition costs We are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. We currently do not pay any commissions upon the signing of a contract; therefore, no commission cost has been incurred as of March 31, 2020. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The $10.0 million upfront payment received from a major technology company was being recognized as revenue as component sales were transferred to the customer. Under the new arrangement reached in March 2020, the royalties we expect to earn will be applied against the remaining prepayment. We expect to apply an additional $1.4 million in 2020, and this amount is included in revenue below. Because there is uncertainty about the timing of the application of the remainder of the contract liability, it has been excluded from future estimated revenue in the table below. The $9.3 million contract liability is classified as a current liability on our balance sheet. It is likely that recognition of revenue may extend beyond the next twelve months. The following table provides information about the estimated timing of revenue recognition (in thousands): Remainder of 2020 2021 License and royalty revenue $ 1,375 $ - Contract revenue 15 - |
CONCENTRATION OF CREDIT RISK AN
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS - Note 5 | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS - Note 5 | 5. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS Concentration of credit risk Financial instruments that potentially subject us to a concentration of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of March 31, 2020, our cash and cash equivalents are comprised of operating checking accounts and short-term highly rated money market savings accounts. Concentration of major customers and suppliers For the three months ended March 31, 2020, one customer accounted for $1.5 million in revenue, representing 100% of our total revenue. For the three months ended March 31, 2019, one customer accounted for $1.6 million in revenue, representing 88% of our total revenue and a second customer accounted for $199,000 in revenue, representing 11% of our total revenue. One customer accounted for $552,000, or 100% of our net accounts receivable balance at March 31, 2020. A significant concentration of our components and the products we have sold are currently manufactured and obtained from single or limited-source suppliers. The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in the supply chain of components from these suppliers could subject us to risks and uncertainties including, but not limited to, increased cost of sales, possible loss of revenues, or significant delays in product deliveries, any of which could adversely affect our financial condition and operating results. |
INVENTORY - Note 6
INVENTORY - Note 6 | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure | |
Inventory - Note 6 | 6. INVENTORY Inventory consists of the following: March 31, December 31, ( in thousands 2020 2019 Raw materials $ - $ - Finished goods - 192 $ - $ 192 Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. As of December 31, 2019, $168,000 of materials that were not expected to be consumed during the next twelve months were classified as "other assets" on the balance sheet. During the three months ended March 31, 2020, we recorded inventory write-downs of $168,000. |
SHARE-BASED COMPENSATION - Note
SHARE-BASED COMPENSATION - Note 7 | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs | |
Share-Based Compensation - Note 7 | 7. SHARE-BASED COMPENSATION We issue share-based compensation to employees in the form of stock options, restricted stock units (RSUs), and performance stock units (PSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is determined by the closing price of our common stock on the grant date. The PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense. The following table summarizes the amount of share-based compensation expense by line item on the statements of operations: Share-based compensation expense Three Months Ended March 31, ( in thousands 2020 2019 Cost of product revenue $ - $ 1 Research and development expense 39 123 Sales, marketing, general and administrative expense 150 227 $ 189 $ 351 Options activity and positions The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2020: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (years) Value Outstanding as of March 31, 2020 4,616,000 $ 1.71 6.4 $ - Exercisable as of March 31, 2020 2,497,000 $ 2.39 4.3 $ - As of March 31, 2020, our unrecognized share-based employee compensation related to stock options was $791,000 which we plan to amortize over the next 1.8 years, our unrecognized share-based compensation related to RSUs was $240,000 which we plan to amortize over the next 1.3 years, and our unrecognized share-based compensation related to the PSUs was $12,000, which we plan to amortize over the next 1.5 years. |
LEASES - Note 8
LEASES - Note 8 | 3 Months Ended |
Mar. 31, 2020 | |
Notes To Financial Statements Abstract | |
LEASES - Note 8 | 8. LEASES In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. We adopted this guidance using the cumulative-effect adjustment method on January 1, 2019, meaning we did not restate prior periods. Current year financial information is presented under the guidance in Topic 842, while prior year information will continue to be presented under Topic 840. Adoption of the standard resulted in the recognition of an operating ROU asset of approximately $1.6 million, a lease liability of approximately $2.5 million, and a reduction in other short-term and long-term liabilities of $873,000. Adoption of the standard did not have a material impact on our Statement of Operations or Statement of Cash flows. Accounting for our capital leases remains substantially unchanged. We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to three years. Our office space lease contains an option to extend the lease for one period of five years. This extension period is not included in our ROU asset or lease liability amounts. Our office lease agreement includes both lease and non-lease components, which are accounted for separately. Our finance leases contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless we are reasonably certain to exercise the purchase option. The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2020 2019 Operating lease expense $ 116 $ 116 Finance lease expense: Amortization of leased assets 6 4 Interest on lease liabilities - 1 Total finance lease expense 6 5 Total lease expense $ 122 $ 121 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 161 $ 160 Operating cash flows from finance leases - 1 Financing cash flows from finance leases 6 4 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ - $ 1,638 Finance leases - - Supplemental balance sheet information related to leases was as follows: March 31, December 31, (in thousands) 2020 2019 Operating leases Operating lease right-of-use assets $ 1,221 $ 1,308 Current portion of operating lease liability 661 656 Operating lease liability, net of current portion 1,211 1,348 Total operating lease liabilities $ 1,872 $ 2,004 Finance leases Property and equipment, at cost $ 66 $ 66 Accumulated depreciation (29) (25) Property and equipment, net $ 37 $ 41 Current portion of finance lease obligations $ 23 $ 25 Finance lease obligations, net of current portion 5 9 Total finance lease liabilities $ 28 $ 34 Weighted Average Remaining Lease Term Operating leases 3 years 3 years Finance leases 1 years 1 year Weighted Average Discount Rate Operating leases 6.0% 6.0% Finance leases 13.8% 13.8% As of March 31, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2020 $ 496 $ 21 2021 676 9 2022 696 - 2023 175 - Thereafter - - Total minimum lease payments 2,043 30 Less: amount representing interest (171) (2) Present value of capital lease liabilities $ 1,872 $ 28 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Note 9 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure Footnote | |
Commitments and Contingencies - Note 9 | 9. COMMITMENTS AND CONTINGENCIES Litigation In March 2019, we filed a Notice of Arbitration in Hong Kong against Ragentek as a result of its failure to perform its obligations under a purchase order with us. The relief sought is $4.0 million dollars plus interest and arbitration costs. At this time we cannot predict the likelihood of a favorable outcome. We are subject to various claims and pending or threatened lawsuits in the normal course of business. We are not currently party to any legal proceedings that management believes are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows. |
COMMON STOCK AND WARRANTS - Not
COMMON STOCK AND WARRANTS - Note 10 | 3 Months Ended |
Mar. 31, 2020 | |
Common Stock And Warrants - Note 10 | |
COMMON STOCK AND WARRANTS - Note 10 | 10. COMMON STOCK AND WARRANTS In December 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $16.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of 1.5 million shares of common stock for $1.0 million at a purchase price of $0.6531 per share. Subject to various limitations and conditions set forth in the agreement, we may sell up to an additional $15.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning December 2019. In consideration for entering into the agreement, we issued 375,000 shares of our common stock, having a value of $277,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $90,000 in issuance costs. As of March 31, 2020, we have issued 7.0 million shares and raised a total of $2.4 million under this agreement. In January 2019, we raised $1.2 million before issuance costs of approximately $26,000 through a registered direct offering of 2.0 million shares of our common stock to a private investor. |
SUBSEQUENT EVENTS - Note 11
SUBSEQUENT EVENTS - Note 11 | 3 Months Ended |
Mar. 31, 2020 | |
Included in accompanying consolidated balance sheets under the following captions: | |
SUBSEQUENT EVENTS - Note 11 | 11. SUBSEQUENT EVENTS In April 2020, we received funds in the amount of $1,570,881 pursuant to a loan under the Paycheck Protection Program of the 2020 CARES Act ("PPP") administered by the Small Business Association. The loan has an interest rate of 0.98% and a term of 24 months. No payments are due for the first 6 months, although interest accrues, and monthly payments are due over the next 18 months to retire the loan plus accrued interest. Funds from the loan may only be used for certain purposes, including payroll, benefits, rent and utilities, and a portion of the loan used to pay certain costs may be forgivable, all as provided by the terms of the PPP. The loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. We may prepay the loan at any time prior to maturity with no prepayment penalties. Subsequent to March 31, 2020 and through May 6, 2020, we have issued 11.5 million shares and raised a total of $6.2 million under the Common Stock Purchase Agreement with Lincoln Park. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Notes To Financial Statements Abstract | |
Management's Statement | The Condensed Balance Sheets as of March 31, 2020, the Condensed Statements of Operations and Condensed Statements of Shareholders' Equity (Deficit) for the three months ended March 31, 2020 and 2019, and Condensed Statements of Cash Flows for the three months ended March 31, 2020 and 2019, have been prepared by MicroVision, Inc. ("we" or "our") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at March 31, 2020 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (SEC). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. We have incurred significant losses since inception. In February 2020, we were informed by an original equipment manufacturer (OEM) that products using our interactive display module will not be launched in 2020 as we planned. Since we do not have orders from an OEM for 2020 delivery, we reduced our headcount by approximately 60% and focused our attention on licensing our module products and related technology to other companies. We are also exploring licensing of technology and designs and other strategic alternatives, including a potential sale or merger of the Company. We have funded our operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales and licensing activities. At March 31, 2020, we had $2.3 million in cash and cash equivalents. Based on our current operating plan that includes anticipated future proceeds from the sale of shares under our existing Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park") and the funds received in April 2020 pursuant to the loan under the Paycheck Protection Program of the 2020 CARES Act, we anticipate that we have sufficient cash and cash equivalents to fund our operations through the fourth quarter of 2020. We will require additional capital to fund our operating plan past that time. We plan to seek to obtain additional capital through the issuance of equity or debt securities, product sales and/or licensing activities. There can be no assurance that additional capital will be available to us or, if available, will be available on terms acceptable to us or on a timely basis. If adequate capital resources are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing investments in our production capacities, research and development projects, staff, operating costs, and capital expenditures. We are introducing new technology and products into an emerging market which creates significant uncertainty about our ability to accurately project revenue, costs and cash flows. Our capital requirements will depend on many factors, including, but not limited to, the commercial success of our laser beam scanning (LBS) modules, the rate at which original equipment manufacturers (OEMs) or original design manufacturers (ODMs) introduce products incorporating our PicoP® scanning technology and the market acceptance and competitive position of such products. If revenues are less than we anticipate, if the mix of revenues and the associated margins vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to fund our operations. In addition, our operating plan provides for the development of strategic relationships with suppliers of components and systems and equipment manufacturers that may require additional investments by us. These factors raise substantial doubt regarding our ability to continue as a going concern. Our unaudited financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments that might be necessary should we be unable to continue as a going concern. |
Net Loss Per Share | Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the period. Net loss per share, assuming dilution, is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share, assuming dilution, is equal to basic net loss per share because the effect of dilutive securities outstanding during the period, including options and warrants computed using the treasury stock method, is anti-dilutive. |
Revenue recognition | The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. We evaluate contracts based on the 5-step model as stated in Topic 606 as follows: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue when (or as) performance obligations are satisfied. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct, as defined in the revenue standard. The transaction price is the amount of consideration an entity expects to be entitled to from a customer in exchange for providing the goods or services. A number of factors should be considered to determine the transaction price, including whether there is variable consideration, a significant financing component, noncash consideration, or amounts payable to the customer. The determination of variable consideration will require a significant amount of judgment. In estimating the transaction price we will use either the expected value method or the most likely amount method. The transaction price is allocated to the separate performance obligations in the contract based on relative standalone selling prices. Determining the relative standalone selling price can be challenging when goods or services are not sold on a standalone basis. The revenue standard sets out several methods that can be used to estimate a standalone selling price when one is not directly observable. Allocating discounts and variable consideration must also be considered. Allocating the transaction price can require significant judgement on our part. Revenue is recognized when (or as) the customer obtains control of the good or service/performance obligations are satisfied. Topic 606 provides guidance to help determine if a performance obligation is satisfied at a point in time or over time. Where a performance obligation is satisfied over time, the related revenue is also recognized over time. |
Inventory | Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. Management periodically assesses the need to account for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. As of December 31, 2019, $168,000 of materials that were not expected to be consumed during the next twelve months were classified as "other assets" on the balance sheet. During the three months ended March 31, 2020, we recorded inventory write-downs of $168,000. |
Share-based Compensation | We issue share-based compensation to employees in the form of stock options, restricted stock units (RSUs), and performance stock units (PSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is determined by the closing price of our common stock on the grant date. The PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense. |
Leases | In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. We adopted this guidance using the cumulative-effect adjustment method on January 1, 2019, meaning we did not restate prior periods. Current year financial information is presented under the guidance in Topic 842, while prior year information will continue to be presented under Topic 840. Adoption of the standard resulted in the recognition of an operating ROU asset of approximately $1.6 million, a lease liability of approximately $2.5 million, and a reduction in other short-term and long-term liabilities of $873,000. Adoption of the standard did not have a material impact on our Statement of Operations or Statement of Cash flows. Accounting for our capital leases remains substantially unchanged. We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to three years. Our office space lease contains an option to extend the lease for one period of five years. This extension period is not included in our ROU asset or lease liability amounts. Our office lease agreement includes both lease and non-lease components, which are accounted for separately. Our finance leases contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless we are reasonably certain to exercise the purchase option. |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Contract with Customer, Asset, Net, Current, Percent Change | |
Net Loss Per Share (Tables) | The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Three Months Ended March 31, 2020 2019 Numerator: Net loss available for common shareholders - basic and diluted $ (4,934) $ (8,068) Denominator: Weighted-average common shares outstanding - basic and diluted 127,214 101,971 Net loss per share - basic and diluted $ (0.04) $ (0.08) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue Recognition | |
Schedule of disaggregation of revenues | The following table provides information about disaggregated revenue by timing of revenue recognition (in thousands): Three Months Ended March 31, 2020 Product Royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 1,247 $ 212 $ 4 $ 1,463 Product and services transferred over time - - 6 6 Total $ 1,247 $ 212 $ 10 $ 1,469 Three Months Ended March 31, 2019 Product Royalty Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 199 $ - $ 16 $ 215 Product and services transferred over time - - 1,636 1,636 Total $ 199 $ - $ 1,652 $ 1,851 |
Costs in excess of billings and billings in excess of costs | The following table provides information about receivables and contract liabilities from contracts with customers (in thousands): March 31, December 31, 2020 2019 Accounts receivable, net $ 552 $ 1,079 Accrued liabilities 200 432 Deferred revenue 15 21 Contract liabilities 9,271 9,755 |
Schedule of contract assets and liabilities | Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): March 31, December 31, 2020 2019 $ Change % Change Contract assets $ - $ - $ - - Contract liabilities (9,486) (10,208) 722 (7.1) Net contract assets (liabilities) $ (9,486) $ (10,208) $ 722 (7.1) |
Transaction price allocated to the remaining performance obligations, expected timing | The following table provides information about the estimated timing of revenue recognition (in thousands): Remainder of 2020 2021 License and royalty revenue $ 1,375 $ - Contract revenue 15 - |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-term Contracts Costs Incurred On Contracts Details | |
Inventory (Tables) | Inventory consists of the following: March 31, December 31, ( in thousands 2020 2019 Raw materials $ - $ - Finished goods - 192 $ - $ 192 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Canceled/expired | |
Stock-based employee compensation expense | The following table summarizes the amount of share-based compensation expense by line item on the statements of operations: Share-based compensation expense Three Months Ended March 31, ( in thousands 2020 2019 Cost of product revenue $ - $ 1 Research and development expense 39 123 Sales, marketing, general and administrative expense 150 227 $ 189 $ 351 |
Options activity and positions | The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of March 31, 2020: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (years) Value Outstanding as of March 31, 2020 4,616,000 $ 1.71 6.4 $ - Exercisable as of March 31, 2020 2,497,000 $ 2.39 4.3 $ - |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: Three Months Ended March 31, (in thousands) 2020 2019 Operating lease expense $ 116 $ 116 Finance lease expense: Amortization of leased assets 6 4 Interest on lease liabilities - 1 Total finance lease expense 6 5 Total lease expense $ 122 $ 121 |
Cash flow supplemental disclosures for leases | Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, (in thousands) 2020 2019 Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 161 $ 160 Operating cash flows from finance leases - 1 Financing cash flows from finance leases 6 4 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ - $ 1,638 Finance leases - - |
Schedule of future minimum lease payments | As of March 31, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2020 $ 496 $ 21 2021 676 9 2022 696 - 2023 175 - Thereafter - - Total minimum lease payments 2,043 30 Less: amount representing interest (171) (2) Present value of capital lease liabilities $ 1,872 $ 28 |
Lease guarantee future commitments | As of March 31, 2019, maturities of lease liabilities were as follows: Operating Finance Years Ended December 31, leases leases 2019 $ 481 $ 21 2020 656 27 2021 676 9 2022 696 - 2023 175 - Thereafter - - Total minimum lease payments 2,684 57 Less: amount representing interest (296) (7) Present value of capital lease liabilities $ 2,388 $ 50 |
Supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases was as follows: March 31, December 31, (in thousands) 2020 2019 Operating leases Operating lease right-of-use assets $ 1,221 $ 1,308 Current portion of operating lease liability 661 656 Operating lease liability, net of current portion 1,211 1,348 Total operating lease liabilities $ 1,872 $ 2,004 Finance leases Property and equipment, at cost $ 66 $ 66 Accumulated depreciation (29) (25) Property and equipment, net $ 37 $ 41 Current portion of finance lease obligations $ 23 $ 25 Finance lease obligations, net of current portion 5 9 Total finance lease liabilities $ 28 $ 34 Weighted Average Remaining Lease Term Operating leases 3 years 3 years Finance leases 1 years 1 year Weighted Average Discount Rate Operating leases 6.0% 6.0% Finance leases 13.8% 13.8% |
Net Loss Per Share (Details)
Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net loss available for common shareholders | $ (4,934) | $ (8,068) |
Dilutive incremental share effect from: | ||
Weighted-average common shares outstanding | 127,214,000 | 101,971,000 |
Net loss per share - basic and diluted | $ (0.04) | $ (0.08) |
(Net Loss Per Share Convertible
(Net Loss Per Share Convertible Securities and Options Excluded (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Options and Warrants Exercisable | ||
Anti-dilutive shares | 4,616,000 | 4,494,000 |
Nonvested Restricted Stock Units | ||
Anti-dilutive shares | 1,185,000 | 1,149,000 |
Long-Term Contracts (Narrative)
Long-Term Contracts (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Deferred revenue, classified within other currrent liabilities | $ 9,486 | $ 10,208 |
LBS Display System | ||
Deferred Revenue, Description | In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million in 2017 and, as of December 31, 2019, had also received $15.0 million, net of early payment discounts, representing all payment due for development work. The original contract was for $14.0 million in fees for development work, but we and our customer agreed to add $1.1 million in additional work to total $15.1 million. After applying early payment discounts, we recognized revenue of $15.0 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. Beginning in the fourth quarter of 2019, the $10.0 million upfront payment was being recognized as revenue at the point in time that component sales were sold to the major technology customer. In March 2020, we entered into an agreement for our customer to take over production of the components we had been producing for them. The agreement provides that, beginning in March 2020, we will earn a royalty on each component shipped that is approximately equal to the gross profit we earned on each component we had previously produced. Under the new arrangement, the royalties earned will be applied against the remaining $9.3 million prepayment that we had previously received from the customer until the prepayment is exhausted. |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregated revenue | $ 1,469 | $ 1,851 |
Product revenue | ||
Disaggregated revenue | 1,247 | 199 |
License and royalty revenue | ||
Disaggregated revenue | 212 | 0 |
Contract Revenue | ||
Disaggregated revenue | 10 | 1,652 |
Transferred at Point in Time | ||
Disaggregated revenue | 1,463 | 215 |
Transferred at Point in Time | Product revenue | ||
Disaggregated revenue | 1,247 | 199 |
Transferred at Point in Time | Royalty revenue | ||
Disaggregated revenue | 212 | 0 |
Transferred at Point in Time | Contract Revenue | ||
Disaggregated revenue | 4 | 16 |
Transferred over Time | ||
Disaggregated revenue | 6 | 1,636 |
Transferred over Time | Product revenue | ||
Disaggregated revenue | 0 | 0 |
Transferred over Time | Royalty revenue | ||
Disaggregated revenue | 0 | 0 |
Transferred over Time | Contract Revenue | ||
Disaggregated revenue | $ 6 | $ 1,636 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances with Contract Customers (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, net | $ 552 | $ 1,079 |
Deferred revenue | 15 | 21 |
Contract liabilities | 9,271 | 9,755 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 0 | 0 |
Other current assets | 413 | 729 |
Other current liabilities | 42 | 83 |
Contracts with Customers | ||
Accounts receivable, net | 552 | 1,079 |
Accrued liabilities | 200 | 432 |
Deferred revenue | 15 | 21 |
Contract liabilities | $ 9,271 | $ 9,755 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Contractors [Abstract] | ||
Contract assets | $ 0 | $ 0 |
Change in Contract Asset | $ 0 | |
Percent Change in Contract Asset | 0.00% | |
Contract liabilities | $ (9,486) | (10,208) |
Change in Contract Liability | $ 722 | |
Percent Change in Contract Liability | (7.10%) | |
Net contract assets (liabilities) | $ (9,486) | $ (10,208) |
Change in Net Contract Assets (Liabilities) | $ 722 | |
Percent Change in Net Contract Assets (Liabilities) | (7.10%) |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Thousands | Mar. 31, 2020USD ($) |
License and royalty revenue | Remainder 2020 | |
Revenue, Remaining Performance Obligation | $ 1,375 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2020 |
License and royalty revenue | 2021 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2021 |
Contract Revenue | Remainder 2020 | |
Revenue, Remaining Performance Obligation | $ 15 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2020 |
Contract Revenue | 2021 | |
Revenue, Remaining Performance Obligation | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year | 2021 |
Concentration of Sales to Major
Concentration of Sales to Major Customers) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Total revenue | $ 1,469 | $ 1,851 |
Customer Revenue Concentration | ||
Total revenue | $ 1,500 | $ 1,600 |
Concentration Risk, Percentage | 100.00% | 88.00% |
Second Commercial Customer | ||
Total revenue | $ 200 | |
Concentration Risk, Percentage | 11.00% | |
Accounts Receivable Concentration | ||
Accounts receivable | $ 552,000 | |
Concentration Risk, Percentage | 100.00% |
Inventory Components (Details)
Inventory Components (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Components Details Abstract | ||
Raw materials | $ 0 | $ 0 |
Finished goods | 0 | 192,000 |
Inventory, net | $ 0 | $ 192,000 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Inventory Narrative | ||
Material classified as other assets | $ 168,000 | |
Inventory write-downs | $ 168,000 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based employee compensation expense | $ 189 | $ 351 |
Cost of product revenue | ||
Share-based employee compensation expense | 0 | 1 |
Research and development expense | ||
Share-based employee compensation expense | 39 | 123 |
Sales, marketing, general and administrative expense | ||
Share-based employee compensation expense | $ 150 | $ 227 |
Shared-Based Compensation (Opti
Shared-Based Compensation (Options Activity and Position) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Income Taxes Narrative Details | |
Outstanding shares | shares | 4,616,000 |
Weighted-average exercise price of options outstanding | $ / shares | $ 1.71 |
Weighted-average remaining contractual term (in years) of options outstanding | 6 years 144 days |
Aggregate intrinsic value of options outstanding | $ | $ 0 |
Exercisable shares | shares | 2,497,000 |
Weighted-average exercise price of options exercisable | $ / shares | $ 2.39 |
Weighted-average remaining contractual term (in years) of options exercisable | 4 years 108 days |
Aggregate intrinsic value of options exercisable | $ | $ 0 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Employee Stock Options | |
Unrecognized compensation cost related to share-based compensation | $ 791,000 |
Weighted-average service period, years | 1 year 288 days |
Restricted Stock Rights | |
Unrecognized compensation cost related to share-based compensation | $ 240,000 |
Weighted-average service period, years | 1 year 108 days |
PSU | |
Unrecognized compensation cost related to share-based compensation | $ 12,000 |
Weighted-average service period, years | 1 year 180 days |
Components of Lease Expense (De
Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 116 | $ 116 |
Finance lease expense: | ||
Amortization of leased assets | 6 | 4 |
Interest on lease liabilities | 0 | 1 |
Total finance lease cost | 6 | 5 |
Total lease expense | $ 122 | $ 121 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 161 | $ 160 |
Operating cash flows from finance leases | 0 | 1 |
Financing cash flows from finance leases | 6 | 4 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 0 | 1,638 |
Finance leases | $ 0 | $ 0 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
Operating lease right-of-use assets | $ 1,221 | $ 1,308 |
Total operating lease liabilities | 1,872 | 2,004 |
Finance Leases | ||
Property and equipment, net | 1,733 | 1,849 |
Total finance lease liabilities | $ 28 | $ 34 |
Weighted Average Remaining Lease Term | ||
Operating leases | 3 years | 3 years |
Finance leases | 1 year | 1 year |
Weighted Average Discount Rate | ||
Operating leases | 6.00% | 6.00% |
Finance leases | 13.80% | 13.80% |
Finance Lease | ||
Finance Leases | ||
Property and equipment, at cost | $ 66 | |
Accumulated depreciation | (29) | |
Property and equipment, net | 37 | |
Finance Lease | ||
Finance Leases | ||
Property and equipment, at cost | $ 66 | |
Accumulated depreciation | (25) | |
Property and equipment, net | 41 | |
Other Current Liabilities | ||
Operating Leases | ||
Total operating lease liabilities | 661 | 656 |
Finance Leases | ||
Total finance lease liabilities | 23 | 25 |
Other Noncurrent Liabilities | ||
Operating Leases | ||
Total operating lease liabilities | 1,211 | 1,348 |
Finance Leases | ||
Total finance lease liabilities | 5 | 9 |
Operating Lease Liabilities | ||
Operating Leases | ||
Total operating lease liabilities | $ 1,872 | $ 2,004 |
Maturities of Lease Liabilities
Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Years Ended December 31, | ||
Operating leases, 2020 | $ 496 | |
Operating leases, 2021 | 676 | |
Operating leases 2022 | 696 | |
Operating leases, 2023 | 175 | |
Operating leases, thereafter | 0 | |
Operating leases, total mimimum lease payments | 2,043 | |
Operating leases, less amount representing interest | (171) | |
Operating leases present value | 1,872 | $ 2,004 |
Finance leases, 2020 | 21 | |
Finance leases, 2021 | 9 | |
Finance leases, 2022 | 0 | |
Finance leases, 2023 | 0 | |
Finance leases, thereafter | 0 | |
Finance leases, total minimum lease payments | 30 | |
Finance leases, less amount representing interest | (2) | |
Finance leases present value | $ 28 | $ 34 |
Common Stock Issuance (Narrativ
Common Stock Issuance (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash received from stock sale, before issuance costs | $ 1,481,000 | $ 1,168,000 |
December 2019 Agreement | ||
Number of shares of common stock issued | 7,000,000 | |
Cash received from stock sale, before issuance costs | $ 2,400,000 | |
Stock issuance costs | $ 90,000 | |
Terms and provisions | In December 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $16.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of 1.5 million shares of common stock for $1.0 million at a purchase price of $0.6531 per share. Subject to various limitations and conditions set forth in the agreement, we may sell up to an additional $15.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning December 2019. In consideration for entering into the agreement, we issued 375,000 shares of our common stock, having a value of $277,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $90,000 in issuance costs. As of March 31, 2020, we have issued 7.0 million shares and raised a total of $2.4 million under this agreement. | |
Registered January 2019 | ||
Number of shares of common stock issued | 2,000,000 | |
Cash received from stock sale, before issuance costs | $ 1,200,000 | |
Stock issuance costs | $ 26,000 | |
Terms and provisions | In January 2019, we raised $1.2 million before issuance costs of approximately $26,000 through a registered direct offering of 2.0 million shares of our common stock to a private investor. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | 1 Months Ended | |
May 06, 2020 | Apr. 30, 2019 | |
$6.24 - $10.24 | ||
Subsequent Event, Date | Apr. 1, 2020 | Apr. 1, 2020 |
Subsequent Event, Description | Subsequent to March 31, 2020 and through May 6, 2020, we have issued 11.5 million shares and raised a total of $6.2 million under the Common Stock Purchase Agreement with Lincoln Park. | In April 2020, we received funds in the amount of $1,570,881 pursuant to a loan under the Paycheck Protection Program of the 2020 CARES Act ("PPP") administered by the Small Business Association. The loan has an interest rate of 0.98% and a term of 24 months. No payments are due for the first 6 months, although interest accrues, and monthly payments are due over the next 18 months to retire the loan plus accrued interest. Funds from the loan may only be used for certain purposes, including payroll, benefits, rent and utilities, and a portion of the loan used to pay certain costs may be forgivable, all as provided by the terms of the PPP. The loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. We may prepay the loan at any time prior to maturity with no prepayment penalties. |