Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MOSY | ||
Entity Registrant Name | MOSYS, INC. | ||
Entity Central Index Key | 0000890394 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-32929 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0291941 | ||
Entity Address, Address Line One | 2309 Bering Drive | ||
Entity Address, City or Town | San Jose | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95131 | ||
City Area Code | 408 | ||
Local Phone Number | 418-7500 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 2,314,512 | ||
Entity Public Float | $ 7,534,001 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 6,053 | $ 7,104 |
Short-term investments | 300 | |
Accounts receivable | 1,175 | 1,622 |
Inventories | 968 | 1,148 |
Prepaid expenses and other | 472 | 923 |
Total current assets | 8,968 | 10,797 |
Property and equipment, net | 197 | 279 |
Goodwill | 420 | |
Right-of-use lease asset | 156 | |
Other | 78 | 260 |
Total assets | 9,399 | 11,756 |
Current liabilities | ||
Accounts payable | 218 | 236 |
Deferred revenue | 166 | 273 |
Short-term lease liability | 166 | |
Accrued expenses and other | 1,155 | 1,402 |
Total current liabilities | 1,705 | 1,911 |
Long-term liabilities | 17 | |
Convertible notes payable | 2,858 | 2,671 |
Total liabilities | 4,563 | 4,599 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value; 20,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value; 120,000 shares authorized; 2,179 shares and 2,148 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively | 2 | 2 |
Additional paid-in capital | 243,281 | 243,022 |
Accumulated deficit | (238,447) | (235,867) |
Total stockholders’ equity | 4,836 | 7,157 |
Total liabilities and stockholders’ equity | $ 9,399 | $ 11,756 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ / shares | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 2,179,000 | 2,148,000 |
Common stock, shares outstanding | 2,179,000 | 2,148,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenue | |||
Total net revenue | $ 10,086 | $ 16,600 | $ 8,842 |
Cost of net revenue | 3,931 | 6,346 | 4,694 |
Gross profit | 6,155 | 10,254 | 4,148 |
Operating expenses | |||
Research and development | 4,182 | 4,129 | 8,158 |
Selling, general and administrative | 4,016 | 4,095 | 4,702 |
Impairment of goodwill | 420 | 12,856 | |
Restructuring charges | 1,321 | ||
Total operating expenses | 8,618 | 21,080 | 14,181 |
Loss from operations | (2,463) | (10,826) | (10,033) |
Interest expense | (220) | (582) | (927) |
Other income, net | 103 | 12 | 59 |
Loss before income taxes | (2,580) | (11,396) | (10,901) |
Income tax provision (benefit) | 0 | 13 | (233) |
Net loss | $ (2,580) | $ (11,409) | $ (10,668) |
Net loss per share | |||
Basic and diluted | $ (1.19) | $ (14.82) | $ (29.07) |
Shares used in computing net loss per share | |||
Basic and diluted | 2,165 | 770 | 367 |
Product [Member] | |||
Net revenue | |||
Total net revenue | $ 9,377 | $ 15,053 | $ 7,833 |
Royalty and Other [Member] | |||
Net revenue | |||
Total net revenue | $ 709 | $ 1,547 | $ 1,009 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Balance at Dec. 31, 2016 | $ 15,328 | $ 229,348 | $ (214,020) | |
Balance, shares at Dec. 31, 2016 | 332 | |||
Issuance of common stock under stock plans, net | (20) | (20) | ||
Issuance of common stock under stock plans, net, shares | 6 | |||
Issuance of common stock, net of issuance costs | 1,987 | 1,987 | ||
Issuance of common stock, net of issuance costs, shares | 66 | |||
Stock-based compensation | 719 | 719 | ||
Net loss | (10,668) | (10,668) | ||
Balance at Dec. 31, 2017 | 7,346 | 232,034 | (224,688) | |
Balance, shares at Dec. 31, 2017 | 404 | |||
Cumulative effect of accounting change | 230 | 230 | ||
Issuance of common stock under stock plans, net | (46) | (46) | ||
Issuance of common stock under stock plans, net, shares | 14 | |||
Issuance of common stock and warrants, net of issuance costs | 10,362 | $ 2 | 10,360 | |
Issuance of common stock and warrants, net of issuance costs (in shares) | 1,730 | |||
Stock-based compensation | 674 | 674 | ||
Net loss | (11,409) | (11,409) | ||
Balance at Dec. 31, 2018 | $ 7,157 | $ 2 | 243,022 | (235,867) |
Balance, shares at Dec. 31, 2018 | 2,148 | 2,148 | ||
Issuance of common stock under stock plans, net | $ (4) | (4) | ||
Issuance of common stock under stock plans, net, shares | 31 | |||
Stock-based compensation | 263 | 263 | ||
Net loss | (2,580) | (2,580) | ||
Balance at Dec. 31, 2019 | $ 4,836 | $ 2 | $ 243,281 | $ (238,447) |
Balance, shares at Dec. 31, 2019 | 2,179 | 2,179 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Issuance of common stock and warrants, issuance costs | $ 709 | $ 265 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (2,580) | $ (11,409) | $ (10,668) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 185 | 598 | 747 |
Stock-based compensation | 263 | 674 | 719 |
Amortization of intangible assets | 111 | 112 | |
Impairment of goodwill | 420 | 12,856 | |
Amortization of debt issuance costs | 30 | 45 | |
Accrued interest | 220 | 551 | 898 |
Gain on disposal of assets | (12) | ||
Other | (13) | ||
Changes in assets and liabilities | |||
Accounts receivable | 447 | 289 | (1,122) |
Inventories | 180 | 618 | (315) |
Prepaid expenses and other assets | 416 | 440 | (1,016) |
Accounts payable | (18) | 66 | (402) |
Deferred revenue and other liabilities | (171) | (4,489) | 3,435 |
Net cash provided by (used in) operating activities | (651) | 335 | (7,579) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (103) | (50) | (300) |
Net proceeds from sale of assets | 12 | ||
Proceeds from maturities of marketable securities & short-term investments | 1,275 | 2,604 | |
Purchases of marketable securities & short-term investments | (1,568) | (1,602) | |
Net cash provided by (used in) investing activities | (396) | (50) | 714 |
Cash flows from financing activities: | |||
Proceeds from sale of common stock and warrants, net of issuance costs | 10,362 | 1,967 | |
Taxes paid to net share settle equity awards | (4) | (46) | |
Payments on convertible notes | (7,365) | ||
Net cash provided by (used in) financing activities | (4) | 2,951 | 1,967 |
Net increase (decrease) in cash and cash equivalents | (1,051) | 3,236 | (4,898) |
Cash and cash equivalents at beginning of year | 7,104 | 3,868 | 8,766 |
Cash and cash equivalents at end of year | 6,053 | 7,104 | 3,868 |
Supplemental disclosure: | |||
Issuance of convertible notes in settlement of accrued interest | 187 | 846 | 854 |
Cash paid for income taxes | $ 2 | $ 15 | $ 2 |
The Company and Summary of Sign
The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company and Summary of Significant Accounting Policies | Note 1: The Company and Summary of Significant Accounting Policies The Company MoSys, Inc. (the “Company”) was incorporated in California in September 1991 and reincorporated in September 2000 in Delaware. The Company’s strategy and primary business objective is to be an IP-rich fabless semiconductor company focused on the development and sale of integrated circuit (“IC”) products. Its Bandwidth Engine ICs combine the Company’s proprietary high-density embedded memory with its high-speed 10 gigabits per second and higher interface technology. The Company’s future success and ability to achieve and maintain profitability depends on its success in developing a market for its ICs. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year. Reverse Stock Split On August 28, 2019, the Company effected a 1-for-20 reverse stock split of its common stock. As a result of the reverse stock split, every 20 shares of the Company’s pre-reverse split outstanding common stock was combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. No fractional shares were issued in connection with the reverse stock split; stockholders who would otherwise hold a fractional share of common stock received cash in an amount equal to the product obtained by multiplying (i) the closing sale price of the Company’s common stock on the effective date of the reverse stock split, by (ii) the number of shares of the Company’s common stock held by the stockholder that would otherwise have been exchanged for the fractional share interest. All stock options and restricted stock units outstanding and common stock reserved for issuance under the Company’s equity incentive plans immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by 20 and, as applicable, multiplying the exercise price by 20, as a result of the reverse stock split. All share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis to reflect this 1-for-20 reverse stock split. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates. Cash Equivalents and Investments The Company has invested its excess cash in money market accounts, certificates of deposit, corporate debt, government-sponsored enterprise bonds and municipal bonds and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company’s available-for-sale short-term and long-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses and declines in the value judged to be other-than-temporary are included in the other income, net line item in the consolidated statements of operations. The cost of securities sold is based on the specific identification method. Fair Value Measurements The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1—Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2—Pricing is provided by third party sources of market information obtained through the Company’s investment advisors, rather than models. The Company does not adjust for, or apply, any additional assumptions or estimates to the pricing information it receives from advisors. The Company’s Level 2 securities include cash equivalents and available-for-sale securities, which consisted primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high-quality credit ratings. The Company’s investment advisors obtain pricing data from independent sources, such as Standard & Poor’s, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. Level 3—Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity. Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100% of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. There was no allowance for doubtful accounts receivable as of December 31, 2019 and 2018. Inventories The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. The Company records inventory reserves for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. Once a reserve is established, it is maintained until the product to which it relates is sold or otherwise disposed of. If actual market conditions are less favorable than those expected by management, additional adjustment to inventory valuation may be required. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow-moving inventory items. The Company recorded inventory write-downs during the years ended December 31, 2019, 2018 and 2017 of $0.1 million $0.1 million and $0.3 million, respectively. Property and Equipment Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in cost of sales and operating expenses in the consolidated statements of operations and comprehensive loss. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. Valuation of Long-lived Assets The Company evaluates the recoverability of long-lived assets with finite lives whenever events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Finite-lived intangible assets are being amortized on a straight-line basis over their estimated useful lives of three to seven years. An impairment charge is recognized as the difference between the net book value of such assets and the fair value of such assets at the date of measurement. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. Intangible Assets Intangible assets acquired in business combinations, referred to as purchased intangible assets, are accounted for based on the fair value of assets purchased and are amortized over the period in which economic benefit is estimated to be received. Goodwill The Company determines the amount of a potential goodwill impairment by comparing the fair value of the reporting unit with its carrying amount. To the extent the carrying value of a reporting unit exceeds its fair value, a goodwill impairment charge is recognized. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to determine the step one fair value, the price of its common stock is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit, which can lead to potential impairment in future periods. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform an impairment test. If the qualitative assessment warrants further analysis, the Company compares the fair value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using the market approach. If the fair value of the reporting unit exceeds the carrying value of net assets of the reporting unit, goodwill is not impaired. If the carrying value of the reporting unit’s goodwill exceeds its fair value, then the Company must record an impairment charge equal to the difference. The Company performed its annual test for goodwill impairment as of September 1, 2019, and, due to a decrease in the price per share of its common stock, the test results indicated the goodwill carrying value was greater than its implied fair value. Further, the Company concluded a triggering event had occurred due to the sustained decrease in the price per share of its common stock and related reduced market capitalization as of September 30, 2019 and performed an additional test for impairment of its goodwill asset resulting in further indication that the goodwill carrying value was still greater than its implied fair value. As a result of both of these tests, the Company recorded non-cash impairment charges totaling $0.4 million. As a result of these charges, the Company’s goodwill balance was reduced to zero as of September 30, 2019. During the year ended December 31, 2018, the Company recorded non-cash goodwill impairment charges of approximately $12.9 million, as its impairment test results indicated the goodwill carrying value was greater than its implied fair value. Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“ Revenue from Contracts with Customers Under this transition method, results for reporting periods beginning January 1, 2018 or later are presented under ASC 606, while prior period results continue to be reported in accordance with previous guidance. As described below, the analysis of contracts under ASC 606 supports the recognition of revenue at a point in time, resulting in revenue recognition timing that is materially consistent with the Company’s historical practice of recognizing product revenue when title and risk of loss pass to the customer. The Company generates revenue primarily from sales of IC products and licensing of its intellectual property. Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. IC products Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated, formula, list or fixed price. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically 60 days or less. The Company may record an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. Royalty and other The Company’s licensing contracts typically provide for royalties based on the licensee’s use of the Company’s memory technology in its currently shipping commercial products. With the adoption of ASC 606 in January 2018, the Company estimates its royalty revenue in the calendar quarter in which the licensee uses the licensed technology. Payments are received in the subsequent quarter. Contract liabilities – deferred revenue The Company’s contract liabilities consist of advance customer payments and deferred revenue. The Company classifies advance customer payments and deferred revenue as current or non-current based on the timing of when the Company expects to recognize revenue. As of December 31, 2019, contract liabilities were in a current position and included in deferred revenue. During the year ended December 31, 2019, the Company recognized revenue of $0.3 million that had been included in deferred revenue as of December 31, 2018. See Note 8 for disaggregation of revenue by geography The Company does not have significant financing components, as payments from customers are typically due within 60 days of invoicing, and the Company has elected the practical expedient to net value financing components that are less than one year. Shipping and handling costs are generally incurred by the customer, and, therefore, are not recorded as revenue. The following table summarizes the cumulative effect of the changes to the Company’s unaudited consolidated balance sheet as of January 1, 2018 due to the adoption of ASC 606 (in thousands): Balance as of December Adjustments due to ASC 606 Balance as of January 1, 2018 Assets Accounts receivable, net $ 1,681 $ 230 $ 1,911 Equity Accumulated deficit $ (224,688 ) $ 230 $ (224,458 ) The following tables summarize the current-period impacts of adopting ASC 606 on the Company’s unaudited consolidated balance sheet and statement of operations and comprehensive loss (in thousands): December 31, 2018 As Reported Effect of adoption Balances adoption of ASC 606 Assets Accounts receivable, net $ 1,622 $ (220 ) $ 1,402 Equity Accumulated deficit $ (235,867 ) $ (220 ) $ (236,087 ) For the Year Ended December 31, 2018 As Reported Effect of adoption Balances without adoption of ASC 606 Product sales $ 15,053 $ — $ 15,053 Royalty and other 1,547 10 1,557 Cost of net revenue 6,346 — 6,346 Operating expenses 21,080 — 21,080 Interest expense 582 — 582 Other income, net 12 — 12 Income tax provision 13 — 13 Net loss $ (11,409 ) $ 10 $ (11,399 ) Net loss per share: Basic and diluted $ (14.82 ) $ — $ (14.80 ) . Cost of Net Revenue Cost of net revenue consists primarily of direct and indirect costs of IC product sales and engineering personnel costs directly related to maintenance and support services specified in licensing agreements. Maintenance and support typically include engineering support to assist in the commencement of production of a licensee’s products. Advertising Costs Advertising costs are expensed as incurred. Advertising costs were not significant for the years ended December 31, 2019, 2018 and 2017. Research and Development Engineering costs are recorded as research and development expense in the period incurred. Stock-Based Compensation The Company recognizes stock-based compensation for awards on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company records stock-based compensation expense for stock options granted to non-employees, excluding non-employee directors, based upon the estimated then-current fair value of the equity instrument using the Black-Scholes pricing model. Assumptions used to value the equity instruments are consistent with equity instruments issued to employees. The Company charges the value of the equity instrument to earnings over the term of the service agreement and the unvested shares underlying the option are subject to periodic revaluation over the remaining vesting period. Per Share Amounts Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options, vesting of stock awards and purchases under the employee stock purchase plan, conversion of convertible debt and exercise of warrants. The following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): December 31, 2019 2018 2017 Options outstanding to purchase common stock 161 17 15 Unvested restricted common stock units 103 14 19 Convertible debt 254 234 54 Outstanding warrants 1,994 1,994 33 Total 2,512 2,259 121 Income Taxes The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2014 through 2018 tax years generally remain subject to examination by U.S. federal and state tax authorities, and the 2010 through 2018 tax years generally remain subject to examination by foreign tax authorities. As of December 31, 2019, the Company did not have any material unrecognized tax benefits nor expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest related to unrecognized tax benefits as income tax expense and penalties related to unrecognized tax benefits as other income and expense. During the years ended December 31, 2019, 2018 and 2017, the Company did not recognize any interest or penalties related to unrecognized tax benefits. Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the years ended December 31, 2019, 2018 and 2017, the Company’s comprehensive loss was the same as its net loss. Recently Adopted Accounting Pronouncements In 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases. The standard introduces a new lessee model that requires most leases to be recorded on the balance sheet and eliminates the required use of bright-line tests for determining lease classification. In July 2018, the FASB issued the following standards which clarified ASU No. 2016-02 and have the same effective date as the original standard: ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. ASU No. 2018-11 includes an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application of transition. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements, which clarifies ASU No. 2016-02 and is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company adopted ASU No. 2016-02, as amended, on January 1, 2019 using the optional transition method provided by the FASB in ASU No. 2018-11. As the Company did not restate comparative periods, the adoption had no impact on previously reported results. The Company elected to use the practical expedient that allowed it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases as well as the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component for all asset classes. The adoption of this standard had a material impact on the Company’s consolidated balance sheet due to the recognition of right of use assets and lease liabilities. Upon adoption, the Company recognized right-of-use assets and lease liabilities of approximately $0.4 million that reflected the present value of future lease payments. The adoption of this standard did not have a material impact on the Company’s consolidated results of operations or cash flows. See Note 9 for further information. In 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-based Payment Accounting. ASU No. 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU No. 2016-09 effective January 1, 2019, and has applied the effects of the adoption from that date. ASU No. 2016-09 permits entities to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost for stock-based compensation to: estimate the total number of awards for which the requisite service period will not be rendered (as previously required) or account for forfeitures as they occur. Upon the adoption of ASU No. 2016-09, the Company elected to change its accounting policy to account for forfeitures as they occur. Historically, estimated forfeitures were immaterial to the consolidated financial statements. The amendments in the standard that required use of a modified retrospective transition method did not materially impact the Company. Therefore, the Company did not recognize a cumulative-effect adjustment to accumulated deficit upon adoption. |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Balance Sheets And Statements Of Operations Components Disclosure [Abstract] | |
Consolidated Balance Sheets and Statements of Operations and Comprehensive Loss Components | Note 2: Consolidated Balance Sheet Detail December 31, 2019 2018 (in thousands) Inventories: Work-in-process $ 746 $ 548 Finished goods 222 600 $ 968 $ 1,148 Prepaid expenses and other: Prepaid IC material and production costs $ 174 $ 620 Prepaid insurance 122 128 Prepaid software 24 28 Refundable tax 61 86 Other 91 61 $ 472 $ 923 Property and equipment, net: Equipment, furniture and fixtures and leasehold improvements $ 4,239 $ 4,486 Acquired software 123 123 4,362 4,609 Less: Accumulated depreciation and amortization (4,165 ) (4,330 ) $ 197 $ 279 Accrued expenses and other: December 31, 2019 2018 (in thousands) Accrued wages and employee benefits $ 296 $ 327 Customer advance — 300 Professional fees, legal and consulting 229 178 IC development and wafer purchases 104 90 Warranty accrual 63 73 Interest payable 84 51 Corporate taxes 20 21 Other 359 362 $ 1,155 $ 1,402 As of December 31, 2018, the amount in long-term liabilities comprised of deferred rent. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 3: Fair Value of Financial Instruments The estimated fair values of financial instruments outstanding were (in thousands): December 31, 2019 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 6,053 $ — $ — $ 6,053 Short-term investments 300 — — 300 $ 6,353 $ — $ — $ 6,353 December 31, 2018 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 7,104 $ — $ — $ 7,104 The unrealized losses from available-for-sale securities as of December 31, 2019 and 2018 were not material. The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of December 31, 2019 and 2018 (in thousands): December 31, 2019 Fair Value Level 1 Level 2 Level 3 Money market funds $ 4,574 $ 4,574 $ — $ — Corporate notes and commercial paper $ 300 $ — $ 300 $ — December 31, 2018 Fair Value Level 1 Level 2 Level 3 Money market funds $ 632 $ 632 $ — $ — There were no transfers in or out of Level 1 and Level 2 securities during the years ended December 31, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4: Income Taxes The income tax provision (benefit) consisted of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current portion: Federal $ (182 ) $ — $ — State — 2 3 Foreign — 11 7 (182 ) 13 10 Deferred portion: Federal 182 — (243 ) $ — $ 13 $ (233 ) In December 2017, the Tax Cuts and Jobs Act (“the Act”) was signed into law making significant changes to the Internal Revenue Code of 1986, as amended (the “IRC”). Changes included, but are not limited to, reducing the U.S. federal corporate tax rate from 35.0% to 21.0% as of January 1, 2018 and repealing the alternative minimum tax (“AMT”) for tax years beginning in 2018 Income tax effects resulting from changes in tax laws are accounted for by the Company in accordance with the authoritative guidance, which requires that these tax effects be recognized in the period in which the law is enacted and the effects are recorded as a component of provision for income taxes from continuing operations. Under the Act, $0.2 million in federal AMT tax paid by the Company for 2011 is now refundable through 2022 subject to limitations by year, and was recorded as a deferred tax asset in 2017. As of December 31, 2019, $0.1 million of the federal AMT credit was refunded. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were (in thousands): Year Ended December 31, 2019 2018 Deferred tax assets: Federal and state loss carryforwards $ 1,697 $ 681 Reserves, accruals and other 156 230 Depreciation and amortization 1,629 1,901 Deferred stock-based compensation 2,613 2,571 Research and development credit carryforwards 6,707 6,537 Foreign tax and other credits 61 242 Total deferred tax assets 12,863 12,162 Deferred tax liabilities: Acquired intangible assets and other — — Less: Valuation allowance (12,802 ) (11,920 ) Net deferred tax assets $ 61 $ 242 The $0.9 million increase in the valuation allowance during 2019 was primarily the result of an increase to the net operating loss carryforwards for the current year. The valuation allowance decreased by $56.9 million during the year ended December 31, 2018. Utilization of the Company’s net operating losses (“NOLs”) and tax credit carryforwards is subject to a substantial annual limitation due to the ownership change limitations provided by the IRC and similar state provisions. Section 382 of the IRC (“Section 382”) imposes limitations on a corporation’s ability to utilize its NOL and tax credit carryforwards, if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership percentage of certain stockholders in the stock of the corporation by more than 50% over a three-year period. In the event of an ownership change, utilization of the NOLs would be subject to an annual limitation under Section 382 determined by multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term tax-exempt rate. While a formal study has not been performed, the Company believes that a Section 382 ownership change occurred as a result of the financing effected in October 2018 (see Note 6). The Company believes this Section 382 limitation will result in approximately 97% of the federal and state NOLs expiring before they can be utilized, and approximately 96% of the federal tax credit carryforwards expiring before they can be utilized. As of December 31, 2019, the Company had NOLs of approximately $200.2 million for federal income tax purposes and approximately $122.9 million for state income tax purposes. Only approximately $6.3 million of the federal NOLs and $5.4 million of the state NOLs are expected to be available before expiration due to the Section 382 limitation. These NOLs are available to reduce future taxable income and will expire at various times from 2025 through 2039, except federal NOLs from 2018 and 2019 which will never expire. The Company also had federal research and development tax credit carryforwards of approximately $8.9 million, which will begin expiring in 2020, and California research and development credits of approximately $8.3 million, which do not have an expiration date. A reconciliation of income taxes provided at the federal statutory rate (21% for 2019 and 2018, 35% for 2017) to the actual income tax provision is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Income tax benefit computed at U.S. statutory rate $ (542 ) $ (2,393 ) $ (3,815 ) State income tax (net of federal benefit) — 2 3 Foreign income tax at rate different from U.S. statutory rate — 12 3 Research and development credits (170 ) (194 ) (480 ) Stock-based compensation — — (40 ) Amortization of intangible assets (60 ) (60 ) (100 ) Goodwill impairment 17 1,482 — Federal tax rate reduction — — (26,617 ) Valuation allowance changes affecting tax provision 752 1,158 30,811 Other 3 6 2 Income tax provision (benefit) $ — $ 13 $ (233 ) The domestic and foreign components of loss before income tax provision were (in thousands): Year Ended December 31, 2019 2018 2017 U.S. $ (2,580 ) $ (11,353 ) $ (11,063 ) Non-U.S. - (43 ) 162 $ (2,580 ) $ (11,396 ) $ (10,901 ) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 5: Stock-Based Compensation Equity Compensation Plans Common Stock Equity Plans In 2010, the Company adopted the 2010 Equity Incentive Plan and later amended it in 2014, 2017 and 2018 (the “Amended 2010 Plan”). The Amended 2010 Plan was terminated in August 2019. As of December 31, 2019, no new awards may be made under the Amended 2010 Plan, and equity awards for approximately 172,000 shares were outstanding with a weighted-average exercise price of $20.00 per share. The Amended 2010 Plan will remain in effect as to outstanding equity awards granted under the plan prior to the date of expiration. In August 2019, the Company’s stockholders approved the 2019 Stock Incentive Plan (the “2019 Plan”), and it replaced the Amended 2010 Plan. The 2019 Plan authorizes the board of directors or the compensation committee of the board of directors to grant a broad range of awards including stock options, stock appreciation rights, restricted stock, performance-based awards, and restricted stock units. Under the 2019 Plan, 182,500 shares have been reserved for issuance. The 2019 Plan provides for annual option grants or other awards to the Company’s non-employee directors to acquire up to 2,000 shares and for a one-time grant of an option or other award to a non-employee director to acquire up to 6,000 shares upon his or her initial appointment or election to the board of directors. Under the 2019 Plan, the term of all incentive stock options granted to a person who, at the time of grant, owns stock representing more than 10% of the voting power of all classes of the Company’s stock may not exceed five years. The exercise price of stock options granted under the 2019 Plan must be at least equal to the fair market value of the shares on the date of grant. Generally, awards under the 2019 Plan will vest over a three to four-year period, and options will have a term of 10 years from the date of grant. In addition, the 2019 Plan provides for automatic acceleration of vesting for options granted to non-employee directors upon a change of control of the Company. The Amended 2010 Plan and the 2019 Plan are referred to collectively as the “Plans.” The Company may also award shares to new employees outside the Plans, as material inducements to the acceptance of employment with the Company, as permitted under the Listing Rules of the Nasdaq Stock Market. These awards must be approved by the compensation committee of the board of directors, a majority of the independent directors or, below a specified share level, by an authorized executive officer. As of December 31, 2019 and 2018, no such awards were outstanding. Employee Stock Purchase Plan In June 2010, the Company’s stockholders approved the 2010 Employee Stock Purchase Plan (the “ESPP”) with a total of 200,000 shares of common stock initially reserved for issuance. On September 1, 2010, the Company commenced the first offering period under the ESPP. In May 2015, the Company’s stockholders approved an amendment increasing the number of shares reserved for issuance by 200,000 shares. The ESPP, which is intended to qualify under Section 423 of the IRC, is administered by the board of directors or the compensation committee of the board of directors. The ESPP provides that eligible employees may purchase up to $25,000 worth of the Company’s common stock annually over the course of two six-month offering periods. The purchase price to be paid by participants is 85% of the price per share of the Company’s common stock either at the beginning or the end of each six-month offering period, whichever is less. In February 2017, the Company’s board of directors canceled the ESPP purchase period that began September 1, 2016 and directed the Company to refund outstanding payroll contributions. As of December 31, 2019, there were approximately 7,500 shares authorized and unissued under the ESPP. Stock-Based Compensation Expense The unamortized compensation cost, as of December 31, 2019 was $0.2 million related to stock options and is expected to be recognized as expense over a weighted average period of approximately 2.2 years. The unamortized compensation cost, as of December 31, 2019 was $0.3 million related to restricted stock units and is expected to be recognized as expense over a weighted average period of approximately 2.1 years. For the year ended December 31, 2019, the fair value of options and awards vested was approximately $0.3 million. The Company is required to present the tax benefits resulting from tax deductions in excess of the compensation cost recognized from the exercise of stock options as financing cash flows in the consolidated statements of cash flows. For the years ended December 31, 2019, 2018 and 2017, there were no such tax benefits associated with the exercise of stock options. Valuation Assumptions and Expense Information for Stock-based Compensation The fair value of the Company’s share-based payment awards for the years ended December 31, 2018, 2017 and 2016 was estimated on the grant dates using the Black-Scholes valuation option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate 1.6% - 2.5% 2.2% 1.6% - 1.8% Volatility 128% - 138.5% 109.5% 70.2% - 101.5% Expected life (years) 3.0 - 5.0 4.0 4.0 Dividend yield 0 % 0 % 0 % The risk-free interest rate was derived from the Daily Treasury Yield Curve Rates as published by the U.S. Department of the Treasury as of the grant date for terms equal to the expected terms of the options. The expected volatility was based on the historical volatility of the Company’s stock price over the expected term of the options. The expected term of options granted was derived from historical data based on employee exercises and post-vesting employment termination behavior. A dividend yield of zero is applied because the Company has never paid dividends and has no intention to pay dividends in the near future. Prior to January 1, 2019, the stock-based compensation expense recorded is adjusted based on estimated forfeiture rates. An annualized forfeiture rate was used as a best estimate of future forfeitures based on the Company’s historical forfeiture experience. The stock-based compensation expense was adjusted in later periods if the actual forfeiture rate is different from the estimate. Upon the adoption of ASU No. 2016-09 on January 1, 2019, the Company elected to change its accounting policy to account for forfeitures as they occur. Historically, estimated forfeitures were immaterial to the consolidated financial statements Common Stock Options and Restricted Stock A summary of stock option and restricted stock unit (“RSU”) award activity under the Plans is presented below (in thousands, except exercise price): Options outstanding Weighted Shares Average Available Number of Exercise for Grant Shares Prices Balance as of January 1, 2017 7 26 $ 277.62 Additional shares authorized under the Plan 12 — — RSUs granted (21 ) — — RSUs cancelled and returned to the Plan 3 — — Options granted (8 ) 8 $ 15.15 Options cancelled and returned to the Plan 19 (19 ) $ 313.80 Balance as of December 31, 2017 12 15 $ 96.24 Additional shares authorized under the Plan 202 — — RSUs granted (13 ) — — RSUs cancelled and returned to the Plan 1 — — Options granted (2 ) 2 $ 25.60 Balance as of December 31, 2018 200 17 $ 83.84 Additional shares authorized under the Plan 183 — — RSUs granted (120 ) — — RSUs cancelled and returned to the Plan 1 — — Options granted (145 ) 145 $ 2.64 Options cancelled and returned to the Plan 1 (1 ) $ 144.00 Plan termination (32 ) — $ — Balance as of December 31, 2019 88 161 $ 10.85 A summary of RSU activity under the Plans is presented below (in thousands, except fair value): Weighted Average Number of Grant-Date Shares Fair Value Non-vested shares as of January 1, 2017 7 $ 162.55 Granted 21 $ 18.60 Vested (6 ) $ 115.24 Cancelled (3 ) $ 100.78 Non-vested shares as of December 31, 2017 19 $ 31.59 Granted 13 $ 17.26 Vested (17 ) $ 27.24 Cancelled (1 ) $ 24.14 Non-vested shares as of December 31, 2018 14 $ 24.31 Granted 120 $ 3.79 Vested (30 ) $ 12.89 Cancelled (1 ) $ 25.13 Non-vested shares as of December 31, 2019 103 $ 3.75 The total intrinsic value of the RSUs outstanding as of December 31, 2019 was The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2018 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Average Average Aggregate Number Life Exercise Number Exercise Intrinsic Range of Exercise Price Outstanding (in Years) Price Exercisable Price value $1.57 - $14.99 144 9.26 $ 2.64 21 $ 3.70 $ — $15.00 - $25.59 8 3.74 $ 15.00 5 $ 15.00 $ — $25.60 - $143.99 3 4.36 $ 41.88 2 $ 47.10 $ — $144.00 - $409.99 5 6.65 $ 144.00 5 $ 144.00 $ — $410.00 - $924.00 1 5.19 $ 430.64 1 $ 430.64 $ — $1.57 - $924.00 161 8.80 $ 10.85 34 $ 40.81 $ — Exercisable 34 7.78 $ 40.81 There were no stock options exercised during the years ended December 31, 2019, 2018, or 2017. The intrinsic value of outstanding options as of December 31, 2019 was zero. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 6: Stockholders’ Equity In July 2017, the Company sold to certain institutional investors an aggregate of 66,250 shares of common stock at a purchase price of $34.00 per share, for aggregate proceeds to the Company of $1,987,000, net of transaction expenses. In a concurrent private placement, the Company also sold to each of the purchasers a warrant to purchase one half of a share of the common stock for each share purchased for cash in the offering, pursuant to a common stock purchase warrant, by and between the Company and each Purchaser (each, a “Warrant,” and collectively, the “Warrants”) representing in the aggregate rights to purchase 33,125 shares of common stock at the exercise price. The Warrants became exercisable on January 6, 2018 at an exercise price of $47.00 per share and will expire on January 6, 2023. In October 2018, the Company completed a public offering of securities registered under an effective registration statement filed pursuant to the Securities Act of 1933, as amended. The gross proceeds from the offering were approximately $11.1 million of which $7.4 million was used to pay a portion of the principal amount of the Notes (see Note 11). In the offering, the Company sold 1,845,540 units, consisting of 403,250 common units, at a price to the public of $6.00 per unit, and 1,442,290 pre-funded units, at a price to the public of $6.00 per unit. Each common unit consisted of one share of common stock and a warrant to purchase one share of common stock (“common stock warrant”), and each pre-funded unit consisted of a pre-funded warrant to purchase one share of common stock for $0.02 per share and a common stock warrant. The common stock warrants were immediately exercisable at an exercise price of $6.00 per share (subject to adjustment) and expire on October 4, 2023. By their terms, the common stock warrants cannot be exercised at any time that the warrant holder would beneficially own, after such exercise, more than 9.99% of the outstanding shares of common stock. The common stock warrants are subject to adjustment, if, at any time while the common stock warrants are outstanding, the Company sells or grants any option to purchase, or sells or grants any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any common stock or common stock equivalents, at an effective price per share that is less than the exercise price then in effect, the applicable exercise price shall be reduced, but not below $2.40 per share (subject to adjustment for reverse and forward stock splits, recapitalizations and similar transactions). The exercise price adjustment provisions of the common stock warrants do not apply to certain ordinary course of business transactions, such as awards of equity securities to employees of the Company, and conversions or exercises of currently outstanding securities previously issued by the Company. As of December 31, 2019, 115,539 pre-funded warrants and 1,845,540 common stock warrants remained outstanding and exercisable. Stockholder Rights Plan In November 2010, the Company executed a rights agreement in connection with the declaration by the Company’s board of directors of a dividend of one preferred stock purchase right (a Right) to be paid on November 10, 2010 (the Record Date) for each share of the Company’s common stock issued and outstanding at the close of business on the Record Date. Each Right entitles the registered holder to purchase one one-thousandth of a share of Series AA Preferred Stock, $0.01 par value per share (a Preferred Share), of the Company at a price of $4.80 per one one-thousandth of a Preferred Share, subject to adjustment. The rights will not be exercisable until a third party acquires 15% of the Company’s common stock or commences or announces its intent to commence a tender offer for at least 15% of the common stock. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Savings Plan | Note 7: Retirement Savings Plan Effective January 1997, the Company adopted the MoSys 401(k) Plan (the Savings Plan), which qualifies as a thrift plan under Section 401(k) of the Internal Revenue Code. Full-time and part-time employees who are at least 21 years of age are eligible to participate in the Savings Plan at the time of hire. Participants may contribute up to 15% of their earnings to the Savings Plan. No matching contributions were made by the Company during the years ended December 31, 2019, 2018 and 2017. |
Business Segments, Concentratio
Business Segments, Concentration of Credit Risk and Significant Customers | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments, Concentration of Credit Risk and Significant Customers | Note 8: Business Segments, Concentration of Credit Risk and Significant Customers The Company operates in one business segment and uses one measurement of profitability for its business. Revenue attributed to the United States and to all foreign countries is based on the geographical location of the customer. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents, short-term and long-term investments and accounts receivable. Cash, cash equivalents and short-term and long-term investments are deposited with high credit-quality institutions. The Company recognized revenue from licensing of its technologies and shipment of ICs to customers in the following geographical locations (in thousands): Year Ended December 31, 2019 2018 2017 North America $ 7,585 $ 12,998 $ 6,531 Japan 1,734 2,956 1,520 Taiwan 345 399 613 Rest of world 422 247 178 Total net revenue $ 10,086 $ 16,600 $ 8,842 Customers who accounted for at least 10% of total net revenues were: Year Ended December 31, 2019 2018 2017 Customer A 30 % 32 % 46 % Customer B 17 % 18 % 17 % Customer C 14 % * * Customer D 13 % 18 % * Customer E * 15 % 11 % * Represents percentage less than 10%. Four customers accounted for 85% of net accounts receivable as of December 31, 2019. Three customer accounted for 63% of net accounts receivable as of December 31, 2018. All net long-lived assets (property and equipment) were held in the United States. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9: Commitments and Contingencies Leases and Purchase Commitments As discussed in Note 1, effective January 1, 2019, the Company adopted ASU No. 2016-02, as amended, using the alternative transition method, which allowed the Company to initially apply the new lease standard at the adoption date (the “effective date method”). The Company identified only one lease to be accounted for under ASU No. 2016-02, and this was the lease for its corporate facility in San Jose, California, which was entered into in October 2017 and expires in October 2020. The right-to-use asset and corresponding liability for the facility lease have been measured at the present value of the future minimum lease payments. The discount rate used to measure the lease asset and liability represents the interest rate on the Notes (8%). Lease expense is recognized on a straight line basis over the lease term. The Company has an option to extend the lease for an additional 20.5 month period, but, as the renewal is not reasonably certain, it has not included this renewal option in its accounting for the lease. Future minimum payments under our facility operating lease as of December 31, 2019 are listed in the table below (in thousands). Operating Year ended December 31, 2019 leases Total future lease payments 187 Less: imputed interest (21 ) Present value of lease liabilities $ 166 Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for lease $ 219 In October 2017, the Company entered into a lease termination agreement with M West Propco XII LLC (“MWest”) under which the Company and MWest agreed to terminate the Company’s lease for its former Santa Clara headquarters facility effective October 31, 2017. In connection with the lease termination, the Company incurred fees of approximately $250,000, which were recorded as restructuring charges in the statements of operations and comprehensive loss. Rent expense was approximately $212,000, $212,000 and $470,000 for the years ended December 31, 2019, 2018 and 2017, respectively. In addition to the minimum lease payments, the Company is responsible for property taxes, insurance and certain other operating costs. Indemnification In the ordinary course of business, the Company enters into contractual arrangements under which it may agree to indemnify the counterparties from any losses incurred relating to breach of representations and warranties, failure to perform certain covenants, or claims and losses arising from certain events as outlined within the particular contract, which may include, for example, losses arising from litigation or claims relating to past performance. Such indemnification clauses may not be subject to maximum loss clauses. The Company has also entered into indemnification agreements with its officers and directors. No material amounts were reflected in the Company’s consolidated financial statements for the years ended December 31, 2019, 2018 or 2017 related to these indemnifications. The Company has not estimated the maximum potential amount of indemnification liability under these agreements due to the limited history of prior claims and the unique facts and circumstances applicable to each particular agreement. To date, the Company has not made any payments related to these indemnification agreements. Legal Matters In October 2017, Trinity Technologies, Inc. (Trinity), the Company’s former sales representative in the San Francisco Bay Area, filed a lawsuit against the Company in the Superior Court of California alleging non-payment of commissions. In April 2018, the Company and Trinity executed a settlement agreement, and Trinity dismissed the lawsuit. Under the terms of the settlement agreement, the Company agreed to pay Trinity for commissions related to both 2017 and 2018. Pursuant to the settlement agreement, the Company paid approximately $450,000, and recognized approximately $250,000 of expense in the year ended December 31, 2018. |
Restructuring Charge
Restructuring Charge | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charge | Note 10: Restructuring In the second quarter of 2017, the Company effected a reduction in its workforce and associated operating expenses, net loss and cash burn. The Company reduced headcount by approximately 60% with the majority of the reductions occurring in its U.S. headquarters facility. As a result of the restructuring, the Company recorded approximately $1.0 million of charges for severance benefits and future obligations under computer-aided design software licenses. In the third quarter of 2017, the Company closed its Japanese branch and Iowa locations and further reduced headcount resulting in additional expenses of approximately $50,000. In the fourth quarter of 2017, the Company terminated its existing headquarters facility lease and incurred lease termination expenses of approximately $270,000. Expenses related to the restructure are included in the restructuring charges line in the consolidated statements of operations and comprehensive loss and the remaining liability is included in accrued expenses and other on the consolidated balance sheets consisting of (in thousands): Facility related Contractual obligations and other termination costs Total Balance as of January 1, 2018 $ 89 $ 389 $ 478 Cash payments (89 ) (389 ) (478 ) Balance as of December 31, 2018 $ — $ — $ — |
Convertible Notes
Convertible Notes | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Notes | Note 11: Convertible Notes In March 2016, the Company entered into a 10% Senior Secured Convertible Note Purchase Agreement (the “Purchase Agreement”) with the purchasers of $8,000,000 principal amount of 10% Senior Secured Convertible Notes due August 15, 2018 (the “Notes”), at par, in a private placement transaction effected pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended. Pursuant to amendments to the Notes and related documents in February and October 2018, the interest rate was reduced to 8%, the maturity date of the Notes was extended to August 15, 2023, and the optional conversion price was reduced from $170.00 of Note principal per share of common stock to $11.434 of Note principal per share of common stock. The conversion price is subject to adjustment upon certain events, such as stock splits, reverse stock splits, stock dividends and similar kinds of transactions, as set forth in the Purchase Agreement. Pursuant to a security agreement entered into by the Company, the Notes are secured by a security interest in all of the assets of the Company. Accrued interest is payable semi-annually in cash or in kind through the issuance of identical new Notes, or with a combination of the two, at the Company’s option. The Notes are noncallable and nonredeemable by the Company. The Notes are redeemable at the election of the holders if the Company experiences a fundamental change (as defined in the Notes), which generally would occur in the event (i) any person acquires beneficial ownership of shares of common stock of the Company entitling such person to exercise at least 40% of the total voting power of all of the shares of capital stock of the Company entitled to vote generally in elections of directors, (ii) an acquisition of the Company by another person through a merger or consolidation, or the sale, transfer or lease of all or substantially all of the Company’s assets, or (iii) the Company’s current directors cease to constitute a majority of the board of directors of the Company within a 12-month period, disregarding for this purpose any director who voluntarily resigns as a director or dies while serving as a director. Effective February 18, 2018, pursuant to one amendment to the Notes, the redemption price was reduced from 120% to 100% of the principal amount of the Note to be repurchased plus accrued and unpaid interest as of the redemption date. No Note holder shall be entitled to convert such holder’s Notes if effective upon the applicable conversion date (i) the holder would have beneficial ownership of more than 19.9% of the voting capital stock of the Company as determined in accordance with Rule 13d-3 under the Securities Exchange Act of 1934, as amended, (with exceptions specified in the Purchase Agreement), or (ii) if the shares are being acquired or held with a purpose or effect of changing or influencing control of the Company, or in connection with or as a participant in any transaction having that purpose or effect, as determined in the sole discretion of the board of directors of the Company. There is no required sinking fund for the Notes. The Notes have not been registered for resale, and the holder(s) do not have registration rights. The Notes restrict the ability of the Company to incur any indebtedness for borrowed money, unless such indebtedness by its terms is expressly subordinated to the Notes in right of payment and to the security interest of the Note holder(s) in respect to the priority and enforcement of any security interest in property of the Company securing such new debt; provided that the Note holder(s) security interest and cash payment rights under the Notes shall be subordinate to a maximum of $5,000,000 of indebtedness for a secured accounts receivable line of credit facility provided to the Company by a bank or institutional lender; and, provided further, that in no event may the amount of indebtedness to which the security interest of the Note holder(s) is subordinated exceed the outstanding balance of accounts receivable less than 90 days old for which the Company has not recorded an allowance for doubtful accounts pledged under such credit facility. The Notes define an event of default generally as any failure by the Company to pay an amount owed under the Notes when due (subject to cure periods), a default with respect to other indebtedness of the Company resulting in acceleration of such indebtedness, the commencement of bankruptcy or insolvency proceedings, or the cessation of business. If an event of default occurs under the Notes, the holder(s) of a majority-in-interest of the outstanding principal amount of the Notes may declare the outstanding principal amount thereof to be immediately due and payable and pursue all available remedies, including taking possession of the assets of the Company and selling them to pay the amount of debt then due, plus expenses, in accordance with applicable laws and procedures. The Company incurred debt issuance costs of approximately $0.1 million, which were recorded as a debt discount and were amortized to interest expense over the repayment period for the original loan term using the effective interest rate method. The interest expense related to the debt discount during the year ended December 31, 2019 was approximately zero and during the years ended December 31, 2018 and 2017 was approximately $30,000 and $45,000, respectively. In accordance with the October 2018 amendment to the Notes, the Company used $7.4 million of the proceeds from its public offering of securities effected in October 2018 to repay a portion of the Notes. Semi-annual interest payments have been made in each of February 2017, August 2017, February 2018, August 2018, February 2019 and August 2019, for approximately $420,000, $434,000, $463,000, $383,000, $78,000 and $109,000, respectively, in-kind with the issue of additional notes (Interest Notes) to the Purchasers. The Interest Notes have terms identical to the Notes. As of December 31, 2019, the Notes and Interest Notes could be converted into a maximum of 253,630 shares of common stock at $11.434 per share, excluding the effects of future payments of interest in-kind. The $2.9 million of outstanding Notes are payable in full in 2023. |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Note 12: Related Party Transaction A related party to one of the Company's executive officers performed construction work at the Company’s new corporate headquarters in the fourth quarter of 2017. The construction work was completed at a cost of approximately $195,000, which was paid in the fourth quarter of 2017. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Conversion of Interest Payable to Note In February 2020, the Company made payment in-kind of interest on the Notes and the Interest Notes for the period from August 16, 2018 to February 15, 2020 with the issue of an additional note to the Purchasers (“Interest Note 6”). Interest Note 6 has a principal amount of approximately $112,000 and has terms identical to the Notes and the Interest Notes. |
The Company and Summary of Si_2
The Company and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year. |
Reverse Stock Split | Reverse Stock Split On August 28, 2019, the Company effected a 1-for-20 reverse stock split of its common stock. As a result of the reverse stock split, every 20 shares of the Company’s pre-reverse split outstanding common stock was combined and reclassified into one share of common stock. Proportionate voting rights and other rights of common stock holders were not affected by the reverse stock split. No fractional shares were issued in connection with the reverse stock split; stockholders who would otherwise hold a fractional share of common stock received cash in an amount equal to the product obtained by multiplying (i) the closing sale price of the Company’s common stock on the effective date of the reverse stock split, by (ii) the number of shares of the Company’s common stock held by the stockholder that would otherwise have been exchanged for the fractional share interest. All stock options and restricted stock units outstanding and common stock reserved for issuance under the Company’s equity incentive plans immediately prior to the reverse stock split were adjusted by dividing the number of affected shares of common stock by 20 and, as applicable, multiplying the exercise price by 20, as a result of the reverse stock split. All share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis to reflect this 1-for-20 reverse stock split. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates. |
Cash Equivalents and Investments | Cash Equivalents and Investments The Company has invested its excess cash in money market accounts, certificates of deposit, corporate debt, government-sponsored enterprise bonds and municipal bonds and considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Investments with original maturities greater than three months and remaining maturities less than one year are classified as short-term investments. Investments with remaining maturities greater than one year are classified as long-term investments. Management generally determines the appropriate classification of securities at the time of purchase. All securities are classified as available-for-sale. The Company’s available-for-sale short-term and long-term investments are carried at fair value, with the unrealized holding gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses and declines in the value judged to be other-than-temporary are included in the other income, net line item in the consolidated statements of operations. The cost of securities sold is based on the specific identification method. |
Fair Value Measurements | Fair Value Measurements The Company measures the fair value of financial instruments using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1—Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2—Pricing is provided by third party sources of market information obtained through the Company’s investment advisors, rather than models. The Company does not adjust for, or apply, any additional assumptions or estimates to the pricing information it receives from advisors. The Company’s Level 2 securities include cash equivalents and available-for-sale securities, which consisted primarily of certificates of deposit, corporate debt, and government agency and municipal debt securities from issuers with high-quality credit ratings. The Company’s investment advisors obtain pricing data from independent sources, such as Standard & Poor’s, Bloomberg and Interactive Data Corporation, and rely on comparable pricing of other securities because the Level 2 securities are not actively traded and have fewer observable transactions. The Company considers this the most reliable information available for the valuation of the securities. Level 3—Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment are used to measure fair value. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The determination of fair value for Level 3 investments and other financial instruments involves the most management judgment and subjectivity. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company establishes an allowance for doubtful accounts to ensure that its trade receivables balances are not overstated due to uncollectibility. The Company performs ongoing customer credit evaluations within the context of the industry in which it operates and generally does not require collateral from its customers. A specific allowance of up to 100% of the invoice value is provided for any problematic customer balances. Delinquent account balances are written off after management has determined that the likelihood of collection is remote. The Company grants credit only to customers deemed creditworthy in the judgment of management. There was no allowance for doubtful accounts receivable as of December 31, 2019 and 2018. |
Inventories | Inventories The Company values its inventories at the lower of cost, which approximates actual cost on a first-in, first-out basis, or net realizable value. The Company records inventory reserves for estimated obsolescence or unmarketable inventories based upon assumptions about future demand and market conditions. Once a reserve is established, it is maintained until the product to which it relates is sold or otherwise disposed of. If actual market conditions are less favorable than those expected by management, additional adjustment to inventory valuation may be required. Charges for obsolete and slow-moving inventories are recorded based upon an analysis of specific identification of obsolete inventory items and quantification of slow-moving inventory items. The Company recorded inventory write-downs during the years ended December 31, 2019, 2018 and 2017 of $0.1 million $0.1 million and $0.3 million, respectively. |
Property and Equipment | Property and Equipment Property and equipment are originally recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation is recorded in cost of sales and operating expenses in the consolidated statements of operations and comprehensive loss. Leasehold improvements and assets acquired through capital leases are amortized over the shorter of their estimated useful life or the lease term, and amortization is recorded in operating expenses in the consolidated statements of operations. |
Valuation of Long-lived Assets | Valuation of Long-lived Assets The Company evaluates the recoverability of long-lived assets with finite lives whenever events or changes in circumstances occur that indicate that the carrying value of the asset or asset group may not be recoverable. Finite-lived intangible assets are being amortized on a straight-line basis over their estimated useful lives of three to seven years. An impairment charge is recognized as the difference between the net book value of such assets and the fair value of such assets at the date of measurement. The measurement of impairment requires management to estimate future cash flows and the fair value of long-lived assets. |
Intangible Assets | Intangible Assets Intangible assets acquired in business combinations, referred to as purchased intangible assets, are accounted for based on the fair value of assets purchased and are amortized over the period in which economic benefit is estimated to be received. |
Goodwill | Goodwill The Company determines the amount of a potential goodwill impairment by comparing the fair value of the reporting unit with its carrying amount. To the extent the carrying value of a reporting unit exceeds its fair value, a goodwill impairment charge is recognized. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to determine the step one fair value, the price of its common stock is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit, which can lead to potential impairment in future periods. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform an impairment test. If the qualitative assessment warrants further analysis, the Company compares the fair value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using the market approach. If the fair value of the reporting unit exceeds the carrying value of net assets of the reporting unit, goodwill is not impaired. If the carrying value of the reporting unit’s goodwill exceeds its fair value, then the Company must record an impairment charge equal to the difference. The Company performed its annual test for goodwill impairment as of September 1, 2019, and, due to a decrease in the price per share of its common stock, the test results indicated the goodwill carrying value was greater than its implied fair value. Further, the Company concluded a triggering event had occurred due to the sustained decrease in the price per share of its common stock and related reduced market capitalization as of September 30, 2019 and performed an additional test for impairment of its goodwill asset resulting in further indication that the goodwill carrying value was still greater than its implied fair value. As a result of both of these tests, the Company recorded non-cash impairment charges totaling $0.4 million. As a result of these charges, the Company’s goodwill balance was reduced to zero as of September 30, 2019. During the year ended December 31, 2018, the Company recorded non-cash goodwill impairment charges of approximately $12.9 million, as its impairment test results indicated the goodwill carrying value was greater than its implied fair value. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“ Revenue from Contracts with Customers Under this transition method, results for reporting periods beginning January 1, 2018 or later are presented under ASC 606, while prior period results continue to be reported in accordance with previous guidance. As described below, the analysis of contracts under ASC 606 supports the recognition of revenue at a point in time, resulting in revenue recognition timing that is materially consistent with the Company’s historical practice of recognizing product revenue when title and risk of loss pass to the customer. The Company generates revenue primarily from sales of IC products and licensing of its intellectual property. Revenues are recognized when control is transferred to customers in amounts that reflect the consideration the Company expects to be entitled to receive in exchange for those goods. Revenue recognition is evaluated through the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when or as a performance obligation is satisfied. IC products Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied. The majority of the Company's contracts have a single performance obligation to transfer products. Accordingly, the Company recognizes revenue when title and risk of loss have been transferred to the customer, generally at the time of shipment of products. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products and is generally based upon a negotiated, formula, list or fixed price. The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically 60 days or less. The Company may record an estimated allowance, at the time of shipment, for future returns and other charges against revenue consistent with the terms of sale. Royalty and other The Company’s licensing contracts typically provide for royalties based on the licensee’s use of the Company’s memory technology in its currently shipping commercial products. With the adoption of ASC 606 in January 2018, the Company estimates its royalty revenue in the calendar quarter in which the licensee uses the licensed technology. Payments are received in the subsequent quarter. Contract liabilities – deferred revenue The Company’s contract liabilities consist of advance customer payments and deferred revenue. The Company classifies advance customer payments and deferred revenue as current or non-current based on the timing of when the Company expects to recognize revenue. As of December 31, 2019, contract liabilities were in a current position and included in deferred revenue. During the year ended December 31, 2019, the Company recognized revenue of $0.3 million that had been included in deferred revenue as of December 31, 2018. See Note 8 for disaggregation of revenue by geography The Company does not have significant financing components, as payments from customers are typically due within 60 days of invoicing, and the Company has elected the practical expedient to net value financing components that are less than one year. Shipping and handling costs are generally incurred by the customer, and, therefore, are not recorded as revenue. The following table summarizes the cumulative effect of the changes to the Company’s unaudited consolidated balance sheet as of January 1, 2018 due to the adoption of ASC 606 (in thousands): Balance as of December Adjustments due to ASC 606 Balance as of January 1, 2018 Assets Accounts receivable, net $ 1,681 $ 230 $ 1,911 Equity Accumulated deficit $ (224,688 ) $ 230 $ (224,458 ) The following tables summarize the current-period impacts of adopting ASC 606 on the Company’s unaudited consolidated balance sheet and statement of operations and comprehensive loss (in thousands): December 31, 2018 As Reported Effect of adoption Balances adoption of ASC 606 Assets Accounts receivable, net $ 1,622 $ (220 ) $ 1,402 Equity Accumulated deficit $ (235,867 ) $ (220 ) $ (236,087 ) For the Year Ended December 31, 2018 As Reported Effect of adoption Balances without adoption of ASC 606 Product sales $ 15,053 $ — $ 15,053 Royalty and other 1,547 10 1,557 Cost of net revenue 6,346 — 6,346 Operating expenses 21,080 — 21,080 Interest expense 582 — 582 Other income, net 12 — 12 Income tax provision 13 — 13 Net loss $ (11,409 ) $ 10 $ (11,399 ) Net loss per share: Basic and diluted $ (14.82 ) $ — $ (14.80 ) . |
Cost of Net Revenue | Cost of Net Revenue Cost of net revenue consists primarily of direct and indirect costs of IC product sales and engineering personnel costs directly related to maintenance and support services specified in licensing agreements. Maintenance and support typically include engineering support to assist in the commencement of production of a licensee’s products. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising costs were not significant for the years ended December 31, 2019, 2018 and 2017. |
Research and Development | Research and Development Engineering costs are recorded as research and development expense in the period incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation for awards on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value. The Company records stock-based compensation expense for stock options granted to non-employees, excluding non-employee directors, based upon the estimated then-current fair value of the equity instrument using the Black-Scholes pricing model. Assumptions used to value the equity instruments are consistent with equity instruments issued to employees. The Company charges the value of the equity instrument to earnings over the term of the service agreement and the unvested shares underlying the option are subject to periodic revaluation over the remaining vesting period. |
Per Share Amounts | Per Share Amounts Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share gives effect to all potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of incremental shares of common stock issuable upon the exercise of stock options, vesting of stock awards and purchases under the employee stock purchase plan, conversion of convertible debt and exercise of warrants. The following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): December 31, 2019 2018 2017 Options outstanding to purchase common stock 161 17 15 Unvested restricted common stock units 103 14 19 Convertible debt 254 234 54 Outstanding warrants 1,994 1,994 33 Total 2,512 2,259 121 |
Income Taxes | Income Taxes The Company determines deferred tax assets and liabilities based upon the differences between the financial statement and tax bases of the Company’s assets and liabilities using tax rates in effect for the year in which the Company expects the differences to affect taxable income. A valuation allowance is established for any deferred tax assets for which it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company files U.S. federal and state and foreign income tax returns in jurisdictions with varying statutes of limitations. The 2014 through 2018 tax years generally remain subject to examination by U.S. federal and state tax authorities, and the 2010 through 2018 tax years generally remain subject to examination by foreign tax authorities. As of December 31, 2019, the Company did not have any material unrecognized tax benefits nor expect its unrecognized tax benefits to change significantly over the next 12 months. The Company recognizes interest related to unrecognized tax benefits as income tax expense and penalties related to unrecognized tax benefits as other income and expense. During the years ended December 31, 2019, 2018 and 2017, the Company did not recognize any interest or penalties related to unrecognized tax benefits. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss represents the changes in equity of an enterprise, other than those resulting from stockholder transactions. Accordingly, comprehensive loss may include certain changes in equity that are excluded from net loss. For the years ended December 31, 2019, 2018 and 2017, the Company’s comprehensive loss was the same as its net loss. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases. The standard introduces a new lessee model that requires most leases to be recorded on the balance sheet and eliminates the required use of bright-line tests for determining lease classification. In July 2018, the FASB issued the following standards which clarified ASU No. 2016-02 and have the same effective date as the original standard: ASU No. 2018-10, Codification Improvements to Topic 842, Leases and ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. ASU No. 2018-11 includes an option to not restate comparative periods in transition and elect to use the effective date of ASU No. 2016-02 as the date of initial application of transition. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements, which clarifies ASU No. 2016-02 and is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company adopted ASU No. 2016-02, as amended, on January 1, 2019 using the optional transition method provided by the FASB in ASU No. 2018-11. As the Company did not restate comparative periods, the adoption had no impact on previously reported results. The Company elected to use the practical expedient that allowed it to not reassess: (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases as well as the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component for all asset classes. The adoption of this standard had a material impact on the Company’s consolidated balance sheet due to the recognition of right of use assets and lease liabilities. Upon adoption, the Company recognized right-of-use assets and lease liabilities of approximately $0.4 million that reflected the present value of future lease payments. The adoption of this standard did not have a material impact on the Company’s consolidated results of operations or cash flows. See Note 9 for further information. In 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718), Improvements to Employee Share-based Payment Accounting. ASU No. 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU No. 2016-09 effective January 1, 2019, and has applied the effects of the adoption from that date. ASU No. 2016-09 permits entities to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost for stock-based compensation to: estimate the total number of awards for which the requisite service period will not be rendered (as previously required) or account for forfeitures as they occur. Upon the adoption of ASU No. 2016-09, the Company elected to change its accounting policy to account for forfeitures as they occur. Historically, estimated forfeitures were immaterial to the consolidated financial statements. The amendments in the standard that required use of a modified retrospective transition method did not materially impact the Company. Therefore, the Company did not recognize a cumulative-effect adjustment to accumulated deficit upon adoption. |
The Company and Summary of Si_3
The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The following table sets forth securities outstanding which were excluded from the computation of diluted net loss per share as their inclusion would be anti-dilutive (in thousands): December 31, 2019 2018 2017 Options outstanding to purchase common stock 161 17 15 Unvested restricted common stock units 103 14 19 Convertible debt 254 234 54 Outstanding warrants 1,994 1,994 33 Total 2,512 2,259 121 |
ASU 2014-09 | |
Summary of Impact of Adoption of Accounting Standards | The following table summarizes the cumulative effect of the changes to the Company’s unaudited consolidated balance sheet as of January 1, 2018 due to the adoption of ASC 606 (in thousands): Balance as of December Adjustments due to ASC 606 Balance as of January 1, 2018 Assets Accounts receivable, net $ 1,681 $ 230 $ 1,911 Equity Accumulated deficit $ (224,688 ) $ 230 $ (224,458 ) The following tables summarize the current-period impacts of adopting ASC 606 on the Company’s unaudited consolidated balance sheet and statement of operations and comprehensive loss (in thousands): December 31, 2018 As Reported Effect of adoption Balances adoption of ASC 606 Assets Accounts receivable, net $ 1,622 $ (220 ) $ 1,402 Equity Accumulated deficit $ (235,867 ) $ (220 ) $ (236,087 ) For the Year Ended December 31, 2018 As Reported Effect of adoption Balances without adoption of ASC 606 Product sales $ 15,053 $ — $ 15,053 Royalty and other 1,547 10 1,557 Cost of net revenue 6,346 — 6,346 Operating expenses 21,080 — 21,080 Interest expense 582 — 582 Other income, net 12 — 12 Income tax provision 13 — 13 Net loss $ (11,409 ) $ 10 $ (11,399 ) Net loss per share: Basic and diluted $ (14.82 ) $ — $ (14.80 ) |
Consolidated Balance Sheet De_2
Consolidated Balance Sheet Detail (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Consolidated Balance Sheets And Statements Of Operations Components Disclosure [Abstract] | |
Schedule of Inventories/Prepaid/PP&E | December 31, 2019 2018 (in thousands) Inventories: Work-in-process $ 746 $ 548 Finished goods 222 600 $ 968 $ 1,148 Prepaid expenses and other: Prepaid IC material and production costs $ 174 $ 620 Prepaid insurance 122 128 Prepaid software 24 28 Refundable tax 61 86 Other 91 61 $ 472 $ 923 Property and equipment, net: Equipment, furniture and fixtures and leasehold improvements $ 4,239 $ 4,486 Acquired software 123 123 4,362 4,609 Less: Accumulated depreciation and amortization (4,165 ) (4,330 ) $ 197 $ 279 |
Schedule of accrued expenses and other | December 31, 2019 2018 (in thousands) Accrued wages and employee benefits $ 296 $ 327 Customer advance — 300 Professional fees, legal and consulting 229 178 IC development and wafer purchases 104 90 Warranty accrual 63 73 Interest payable 84 51 Corporate taxes 20 21 Other 359 362 $ 1,155 $ 1,402 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values of Financial Instruments Outstanding | The estimated fair values of financial instruments outstanding were (in thousands): December 31, 2019 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 6,053 $ — $ — $ 6,053 Short-term investments 300 — — 300 $ 6,353 $ — $ — $ 6,353 December 31, 2018 Unrealized Unrealized Fair Cost Gains Losses Value Cash and cash equivalents $ 7,104 $ — $ — $ 7,104 |
Schedule of Fair Value Hierarchy for Financial Assets (Cash Equivalents and Investments) | The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) as of December 31, 2019 and 2018 (in thousands): December 31, 2019 Fair Value Level 1 Level 2 Level 3 Money market funds $ 4,574 $ 4,574 $ — $ — Corporate notes and commercial paper $ 300 $ — $ 300 $ — December 31, 2018 Fair Value Level 1 Level 2 Level 3 Money market funds $ 632 $ 632 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Provision (Benefit) | The income tax provision (benefit) consisted of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current portion: Federal $ (182 ) $ — $ — State — 2 3 Foreign — 11 7 (182 ) 13 10 Deferred portion: Federal 182 — (243 ) $ — $ 13 $ (233 ) |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were (in thousands): Year Ended December 31, 2019 2018 Deferred tax assets: Federal and state loss carryforwards $ 1,697 $ 681 Reserves, accruals and other 156 230 Depreciation and amortization 1,629 1,901 Deferred stock-based compensation 2,613 2,571 Research and development credit carryforwards 6,707 6,537 Foreign tax and other credits 61 242 Total deferred tax assets 12,863 12,162 Deferred tax liabilities: Acquired intangible assets and other — — Less: Valuation allowance (12,802 ) (11,920 ) Net deferred tax assets $ 61 $ 242 |
Reconciliation of Income taxes Provided at Federal Statutory Rate to Actual Income Tax Provision (Benefit) | A reconciliation of income taxes provided at the federal statutory rate (21% for 2019 and 2018, 35% for 2017) to the actual income tax provision is as follows (in thousands): Year Ended December 31, 2019 2018 2017 Income tax benefit computed at U.S. statutory rate $ (542 ) $ (2,393 ) $ (3,815 ) State income tax (net of federal benefit) — 2 3 Foreign income tax at rate different from U.S. statutory rate — 12 3 Research and development credits (170 ) (194 ) (480 ) Stock-based compensation — — (40 ) Amortization of intangible assets (60 ) (60 ) (100 ) Goodwill impairment 17 1,482 — Federal tax rate reduction — — (26,617 ) Valuation allowance changes affecting tax provision 752 1,158 30,811 Other 3 6 2 Income tax provision (benefit) $ — $ 13 $ (233 ) |
Schedule of Domestic and Foreign Components of Loss Before Income Tax Provision | The domestic and foreign components of loss before income tax provision were (in thousands): Year Ended December 31, 2019 2018 2017 U.S. $ (2,580 ) $ (11,353 ) $ (11,063 ) Non-U.S. - (43 ) 162 $ (2,580 ) $ (11,396 ) $ (10,901 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of assumptions used in estimation of fair value of the share-based payment awards on the grant date | Year Ended December 31, 2019 2018 2017 Risk-free interest rate 1.6% - 2.5% 2.2% 1.6% - 1.8% Volatility 128% - 138.5% 109.5% 70.2% - 101.5% Expected life (years) 3.0 - 5.0 4.0 4.0 Dividend yield 0 % 0 % 0 % |
Summary of option and RSU activity under Amended and Restated 2000 Stock Option and Equity Incentive Plan and Amended and Restated 2010 Equity Incentive Plan | A summary of stock option and restricted stock unit (“RSU”) award activity under the Plans is presented below (in thousands, except exercise price): Options outstanding Weighted Shares Average Available Number of Exercise for Grant Shares Prices Balance as of January 1, 2017 7 26 $ 277.62 Additional shares authorized under the Plan 12 — — RSUs granted (21 ) — — RSUs cancelled and returned to the Plan 3 — — Options granted (8 ) 8 $ 15.15 Options cancelled and returned to the Plan 19 (19 ) $ 313.80 Balance as of December 31, 2017 12 15 $ 96.24 Additional shares authorized under the Plan 202 — — RSUs granted (13 ) — — RSUs cancelled and returned to the Plan 1 — — Options granted (2 ) 2 $ 25.60 Balance as of December 31, 2018 200 17 $ 83.84 Additional shares authorized under the Plan 183 — — RSUs granted (120 ) — — RSUs cancelled and returned to the Plan 1 — — Options granted (145 ) 145 $ 2.64 Options cancelled and returned to the Plan 1 (1 ) $ 144.00 Plan termination (32 ) — $ — Balance as of December 31, 2019 88 161 $ 10.85 |
Summary of RSU activity under the Plans | A summary of RSU activity under the Plans is presented below (in thousands, except fair value): Weighted Average Number of Grant-Date Shares Fair Value Non-vested shares as of January 1, 2017 7 $ 162.55 Granted 21 $ 18.60 Vested (6 ) $ 115.24 Cancelled (3 ) $ 100.78 Non-vested shares as of December 31, 2017 19 $ 31.59 Granted 13 $ 17.26 Vested (17 ) $ 27.24 Cancelled (1 ) $ 24.14 Non-vested shares as of December 31, 2018 14 $ 24.31 Granted 120 $ 3.79 Vested (30 ) $ 12.89 Cancelled (1 ) $ 25.13 Non-vested shares as of December 31, 2019 103 $ 3.75 |
Summary of significant ranges of outstanding and exercisable options | The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2018 (in thousands, except contractual life and exercise price): Options Outstanding Options Exercisable Weighted Average Remaining Weighted Weighted Contractual Average Average Aggregate Number Life Exercise Number Exercise Intrinsic Range of Exercise Price Outstanding (in Years) Price Exercisable Price value $1.57 - $14.99 144 9.26 $ 2.64 21 $ 3.70 $ — $15.00 - $25.59 8 3.74 $ 15.00 5 $ 15.00 $ — $25.60 - $143.99 3 4.36 $ 41.88 2 $ 47.10 $ — $144.00 - $409.99 5 6.65 $ 144.00 5 $ 144.00 $ — $410.00 - $924.00 1 5.19 $ 430.64 1 $ 430.64 $ — $1.57 - $924.00 161 8.80 $ 10.85 34 $ 40.81 $ — Exercisable 34 7.78 $ 40.81 |
Business Segments, Concentrat_2
Business Segments, Concentration of Credit Risk and Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenue from shipment of product and licensing of its technologies to customers by geographical location | The Company recognized revenue from licensing of its technologies and shipment of ICs to customers in the following geographical locations (in thousands): Year Ended December 31, 2019 2018 2017 North America $ 7,585 $ 12,998 $ 6,531 Japan 1,734 2,956 1,520 Taiwan 345 399 613 Rest of world 422 247 178 Total net revenue $ 10,086 $ 16,600 $ 8,842 |
Schedule of customers who accounted for at least 10% of total net revenue | Customers who accounted for at least 10% of total net revenues were: Year Ended December 31, 2019 2018 2017 Customer A 30 % 32 % 46 % Customer B 17 % 18 % 17 % Customer C 14 % * * Customer D 13 % 18 % * Customer E * 15 % 11 % * Represents percentage less than 10%. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments under Facility Operating Lease | Future minimum payments under our facility operating lease as of December 31, 2019 are listed in the table below (in thousands). Operating Year ended December 31, 2019 leases Total future lease payments 187 Less: imputed interest (21 ) Present value of lease liabilities $ 166 |
Schedule of Supplemental Cash Flow Information Related to Operating lease | Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for lease $ 219 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of restructuring charges | Expenses related to the restructure are included in the restructuring charges line in the consolidated statements of operations and comprehensive loss and the remaining liability is included in accrued expenses and other on the consolidated balance sheets consisting of (in thousands): Facility related Contractual obligations and other termination costs Total Balance as of January 1, 2018 $ 89 $ 389 $ 478 Cash payments (89 ) (389 ) (478 ) Balance as of December 31, 2018 $ — $ — $ — |
The Company and Summary of Si_4
The Company and Summary of Significant Accounting Policies - Additional Information (Details) | Aug. 28, 2019 | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)Gigabit / s | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Speed per second of high-speed interface technology of Bandwidth Engine ICs (in giga per second) | Gigabit / s | 10 | ||||||
Reverse stock split | 20 | ||||||
Maximum specific allowance as percentage of invoice value for problematic customer balances | 100.00% | ||||||
Allowance for doubtful accounts receivable | $ 0 | $ 0 | $ 0 | ||||
Inventory reserves | 100,000 | 100,000 | $ 300,000 | ||||
Impairment of goodwill | $ 400,000 | 12,900,000 | 420,000 | 12,856,000 | |||
Goodwill balance | $ 0 | 420,000 | 420,000 | ||||
Accumulated deficit | (235,867,000) | $ (238,447,000) | (235,867,000) | (224,688,000) | |||
Payment terms | The Company sells its products both directly to customers and through distributors generally under agreements with payment terms typically 60 days or less | ||||||
Deferred revenue, revenue recognized | $ 300,000 | ||||||
Period payments due from customers | 60 days | ||||||
Revenue, practical expedient, financing component | true | ||||||
Right-of-use lease asset | $ 156,000 | $ 400,000 | |||||
Lease liabilities | $ 166,000 | $ 400,000 | |||||
Adjustments Due to ASC 606 | ASU 2014-09 | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Accumulated deficit | $ (220,000) | $ (220,000) | $ 230,000 | ||||
Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property and equipment | 3 years | ||||||
Estimated useful lives of long-lived assets | 3 years | ||||||
Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of property and equipment | 5 years | ||||||
Estimated useful lives of long-lived assets | 7 years |
The Company and Summary of Si_5
The Company and Summary of Significant Accounting Policies - Summary of Impact of Adoption of Accounting Standards on Consolidated Balance Sheet (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable, net | $ 1,175,000 | $ 1,622,000 | $ 1,681,000 |
Stockholders’ equity | |||
Accumulated deficit | $ (238,447,000) | (235,867,000) | (224,688,000) |
Adjustments Due to ASC 606 | ASC 606 | |||
Assets | |||
Accounts receivable, net | (220,000) | 230,000 | |
Stockholders’ equity | |||
Accumulated deficit | (220,000) | 230,000 | |
Balances without Adoption of ASC 606 | ASC 606 | |||
Assets | |||
Accounts receivable, net | 1,402,000 | 1,911,000 | |
Stockholders’ equity | |||
Accumulated deficit | $ (236,087,000) | $ (224,458,000) |
The Company and Summary of Si_6
The Company and Summary of Significant Accounting Policies - Summary of Impact of Adoption of Accounting Standards on Consolidated Statements Of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total net revenue | $ 10,086 | $ 16,600 | $ 8,842 |
Cost of net revenue | 3,931 | 6,346 | 4,694 |
Operating expenses | 8,618 | 21,080 | 14,181 |
Interest expense | 220 | 582 | 927 |
Other income, net | 103 | 12 | 59 |
Income tax provision | 0 | 13 | (233) |
Net loss | $ (2,580) | $ (11,409) | $ (10,668) |
Net loss per share: | |||
Basic and diluted | $ (1.19) | $ (14.82) | $ (29.07) |
Balances without Adoption of ASC 606 | ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Net loss | $ 10 | ||
Adjustments Due to ASC 606 | ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cost of net revenue | 6,346 | ||
Operating expenses | 21,080 | ||
Interest expense | 582 | ||
Other income, net | 12 | ||
Income tax provision | 13 | ||
Net loss | $ (11,399) | ||
Net loss per share: | |||
Basic and diluted | $ (14.80) | ||
Product [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total net revenue | $ 9,377 | $ 15,053 | $ 7,833 |
Product [Member] | Adjustments Due to ASC 606 | ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total net revenue | 15,053 | ||
Royalty and Other [Member] | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total net revenue | $ 709 | 1,547 | $ 1,009 |
Royalty and Other [Member] | Balances without Adoption of ASC 606 | ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total net revenue | 10 | ||
Royalty and Other [Member] | Adjustments Due to ASC 606 | ASC 606 | |||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |||
Total net revenue | $ 1,557 |
The Company and Summary of Si_7
The Company and Summary of Significant Accounting Policies - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,512 | 2,259 | 121 |
Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 161 | 17 | 15 |
RSU's | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 103 | 14 | 19 |
Convertible Debt | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 254 | 234 | 54 |
Outstanding Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,994 | 1,994 | 33 |
Consolidated Balance Sheet De_3
Consolidated Balance Sheet Detail - Schedule of Inventories/Prepaid/PP&E (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories: | ||
Work-in-process | $ 746 | $ 548 |
Finished goods | 222 | 600 |
Total | 968 | 1,148 |
Prepaid expenses and other: | ||
Prepaid IC material and production costs | 174 | 620 |
Prepaid insurance | 122 | 128 |
Prepaid software | 24 | 28 |
Refundable tax | 61 | 86 |
Other | 91 | 61 |
Total | 472 | 923 |
Property and equipment, net: | ||
Property and equipment, gross | 4,362 | 4,609 |
Less: Accumulated depreciation and amortization | (4,165) | (4,330) |
Property and equipment, net | 197 | 279 |
Equipment, furniture and fixtures and leasehold improvements | ||
Property and equipment, net: | ||
Property and equipment, gross | 4,239 | 4,486 |
Acquired software | ||
Property and equipment, net: | ||
Property and equipment, gross | $ 123 | $ 123 |
Consolidated Balance Sheet De_4
Consolidated Balance Sheet Detail - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and other: | ||
Accrued wages and employee benefits | $ 296 | $ 327 |
Customer advance | 300 | |
Professional fees, legal and consulting | 229 | 178 |
IC development and wafer purchases | 104 | 90 |
Warranty accrual | 63 | 73 |
Interest payable | 84 | 51 |
Corporate taxes | 20 | 21 |
Other | 359 | 362 |
Total | $ 1,155 | $ 1,402 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Estimated Fair Values of Financial Instruments Outstanding (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost | $ 6,353 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | 6,353 | |
Cash and Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 6,053 | $ 7,104 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 6,053 | $ 7,104 |
Short-term investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost | 300 | |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Fair Value | $ 300 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value Hierarchy for Financial Assets (Cash Equivalents and Investments) (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 4,574 | $ 632 |
Money market funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 4,574 | $ 632 |
Corporate notes and commercial paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 300 | |
Corporate notes and commercial paper | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 300 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Transfer of assets between Level 1 to Level 2 | $ 0 | $ 0 |
Transfer of assets between Level 2 to Level 1 | 0 | 0 |
Transfer of liabilities between Level 1 to Level 2 | 0 | 0 |
Transfer of liabilities between Level 2 to Level 1 | $ 0 | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current portion: | |||
Federal | $ (182) | ||
State | $ 2 | $ 3 | |
Foreign | 11 | 7 | |
Income tax provision, Current | (182) | 13 | 10 |
Deferred portion: | |||
Federal | 182 | (243) | |
Income tax provision | $ 0 | $ 13 | $ (233) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | |
Federal AMT tax | $ 0.2 | ||
Federal AMT credit refunded | 0.1 | ||
Increase (decrease) in valuation allowance during the year | $ 0.9 | $ (56.9) | |
Percentage of limitation on federal and state net operating loss carryforwards | 97.00% | ||
Percentage of limitation on federal tax credit carryforwards | 96.00% | ||
Federal | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, amount | $ 200.2 | ||
Net operating loss carryforwards available before expiration | 6.3 | ||
Federal | Research and development | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards with expiration | 8.9 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, amount | 122.9 | ||
Net operating loss carryforwards available before expiration | 5.4 | ||
State | Research and development | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards without expiration | $ 8.3 | ||
Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, expiration year | 2025 | ||
Latest Tax Year | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards, expiration year | 2039 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Federal and state loss carryforwards | $ 1,697 | $ 681 |
Reserves, accruals and other | 156 | 230 |
Depreciation and amortization | 1,629 | 1,901 |
Deferred stock-based compensation | 2,613 | 2,571 |
Research and development credit carryforwards | 6,707 | 6,537 |
Foreign tax and other credits | 61 | 242 |
Total deferred tax assets | 12,863 | 12,162 |
Deferred tax liabilities: | ||
Less: Valuation allowance | (12,802) | (11,920) |
Net deferred tax assets | $ 61 | $ 242 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income taxes Provided at Federal Statutory Rate to Actual Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit computed at U.S. statutory rate | $ (542) | $ (2,393) | $ (3,815) |
State income tax (net of federal benefit) | 2 | 3 | |
Foreign income tax at rate different from U.S. statutory rate | 12 | 3 | |
Research and development credits | (170) | (194) | (480) |
Stock-based compensation | (40) | ||
Amortization of intangible assets | (60) | (60) | (100) |
Goodwill impairment | 17 | 1,482 | |
Federal tax rate reduction | (26,617) | ||
Valuation allowance changes affecting tax provision | 752 | 1,158 | 30,811 |
Other | 3 | 6 | 2 |
Income tax provision | $ 0 | $ 13 | $ (233) |
Income Taxes - Schedule of Dome
Income Taxes - Schedule of Domestic and Foreign Components of Loss Before Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (2,580) | $ (11,353) | $ (11,063) |
Non-U.S. | (43) | 162 | |
Loss before income taxes | $ (2,580) | $ (11,396) | $ (10,901) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
May 31, 2015shares | Jun. 30, 2010USD ($)Periodshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
New Employees | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Outstanding awards | 0 | 0 | ||||
Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unamortized compensation cost, net of expected forfeitures | $ | $ 200,000 | |||||
Weighted average expected period over which the expense is to be recognized | 2 years 2 months 12 days | |||||
Fair value of vested options and awards | $ | $ 300,000 | |||||
Tax benefits associated with exercise of stock options | $ | $ 0 | $ 0 | $ 0 | |||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |||
Stock options exercised | 0 | 0 | 0 | |||
Employee Stock Purchase Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares reserved for issuance | 200,000 | |||||
Increase in number of shares reserved for issuance | 200,000 | |||||
Number of offering periods | Period | 2 | |||||
Offering period | 6 months | |||||
Purchase price to be paid by participants as a percentage of price per share either at the beginning or the end of each six-month offering period, whichever is less | 85.00% | |||||
Shares authorized and unissued | 7,500 | |||||
Employee Stock Purchase Plan | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum amount of shares that eligible employee may purchase annually (in dollars) | $ | $ 25,000 | |||||
RSU's | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unamortized compensation cost, net of expected forfeitures | $ | $ 300,000 | |||||
Weighted average expected period over which the expense is to be recognized | 2 years 1 month 6 days | |||||
Equity Incentive Plan 2010 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options granted (in shares) | 0 | |||||
Outstanding awards | 172,000 | |||||
Weighted-average exercise price | $ / shares | $ 20 | |||||
Shares authorized and unissued | 88,000 | 200,000 | 12,000 | 7,000 | ||
Equity Incentive Plan 2010 | Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Increase in number of shares reserved for issuance | 183,000 | 202,000 | 12,000 | |||
Equity Incentive Plan 2010 | RSU's | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Weighted-average exercise price | $ / shares | $ 3.75 | $ 24.31 | $ 31.59 | $ 162.55 | ||
Total intrinsic value of the restricted stock units outstanding | $ | $ 200,000 | |||||
Stock Incentive Plan 2019 | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares reserved for issuance | 182,500 | |||||
Stock Incentive Plan 2019 | Options | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum annual option grants or other awards to the entity's non-employee directors (in shares) | 2,000 | |||||
Maximum one-time grant of an option or other awards to the entity's non employee directors (in shares) | $ | $ 6,000 | |||||
Minimum percentage of voting rights required for applicability of a specific expiration term | 10.00% | |||||
Maximum expiration term of options granted | 5 years | |||||
Term of plan | 10 years | |||||
Stock Incentive Plan 2019 | Options | Minimum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period of replacement options | 3 years | |||||
Stock Incentive Plan 2019 | Options | Maximum | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Vesting period of replacement options | 4 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions Used in Estimation of Fair Value of the Share-based Payment Awards on the Grant Date (Detail) - Options | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Risk-free interest rate | 2.20% | ||
Risk-free interest rate, minimum | 1.60% | 1.60% | |
Risk-free interest rate, maximum | 2.50% | 1.80% | |
Volatility | 109.50% | ||
Volatility, minimum | 128.00% | 70.20% | |
Volatility, maximum | 138.50% | 101.50% | |
Expected life (years) | 4 years | 4 years | |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (years) | 3 years | ||
Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (years) | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option and RSU Activity (Detail) - Equity Incentive Plan 2010 - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares Available for Grant | |||
Balance at the beginning of the year (in shares) | 200,000 | 12,000 | 7,000 |
Options granted (in shares) | (145,000) | (2,000) | (8,000) |
Options cancelled and returned to Plan (in shares) | 1,000 | 19,000 | |
Plan termination (in shares) | (32,000) | ||
Balance at the end of the period (in shares) | 88,000 | 200,000 | 12,000 |
Number of Shares | |||
Balance at the beginning of the year (in shares) | 17,000 | 15,000 | 26,000 |
Options granted (in shares) | 145,000 | 2,000 | 8,000 |
Options cancelled and returned to Plan (in shares) | (1,000) | (19,000) | |
Balance at the end of the period (in shares) | 161,000 | 17,000 | 15,000 |
Weighted Average Exercise Prices | |||
Weighted-average exercise price (in dollars per share) | $ 83.84 | $ 96.24 | $ 277.62 |
Options granted (in dollars per share) | 2.64 | 25.60 | 15.15 |
Options cancelled and returned to Plan (in dollars per share) | 144 | 313.80 | |
Weighted-average exercise price (in dollars per share) | $ 10.85 | $ 83.84 | $ 96.24 |
Options | |||
Shares Available for Grant | |||
Additional shares authorized under the Plan | 183,000 | 202,000 | 12,000 |
RSU's | |||
Shares Available for Grant | |||
RSUs granted (in shares) | (120,000) | (13,000) | (21,000) |
RSUs cancelled and returned to Plan (in shares) | 1,000 | 1,000 | 3,000 |
Number of Shares | |||
RSUs cancelled and returned to Plan (in shares) | 1,000 | 1,000 | 3,000 |
Weighted Average Exercise Prices | |||
RSUs granted (in dollars per share) | $ 3.79 | $ 17.26 | $ 18.60 |
RSUs cancelled and returned to Plan (in dollars per shares) | $ 25.13 | $ 24.14 | $ 100.78 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of RSU Activity Under Plans (Detail) - Equity Incentive Plan 2010 - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Grant-Date Fair Value | |||
Weighted average grant date fair value | $ 20 | ||
RSU's | |||
Number of Shares | |||
Non-vested shares at the beginning of the year | 14,000 | 19,000 | 7,000 |
Granted (in shares) | 120,000 | 13,000 | 21,000 |
Vested (in shares) | (30,000) | (17,000) | (6,000) |
Cancelled (in shares) | (1,000) | (1,000) | (3,000) |
Non-vested shares at the end of the period | 103,000 | 14,000 | 19,000 |
Weighted Average Grant-Date Fair Value | |||
Weighted average grant date fair value | $ 24.31 | $ 31.59 | $ 162.55 |
Granted (in dollars per share) | 3.79 | 17.26 | 18.60 |
Vested (in dollars per share) | 12.89 | 27.24 | 115.24 |
Cancelled (in dollars per shares) | 25.13 | 24.14 | 100.78 |
Weighted average grant date fair value | $ 3.75 | $ 24.31 | $ 31.59 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Significant Ranges of Outstanding and Exercisable Options (Detail) - Options shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercisable, Number Outstanding | shares | 34 |
Exercisable, Weighted Average Remaining Contractual Life | 7 years 9 months 10 days |
Exercisable, Weighted Average Exercise Price | $ 40.81 |
$1.57 - $14.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range limit (in dollars per share) | 1.57 |
Upper range limit (in dollars per share) | $ 14.99 |
Number Outstanding (in shares) | shares | 144 |
Weighted Average Remaining Contractual Life | 9 years 3 months 3 days |
Weighted Average Exercise Price (in dollars per share) | $ 2.64 |
Number Exercisable (in shares) | shares | shares | 21 |
Weighted Average Exercise Price (in dollars per share) | $ 3.70 |
$15.00 - $25.59 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range limit (in dollars per share) | 15 |
Upper range limit (in dollars per share) | $ 25.59 |
Number Outstanding (in shares) | shares | 8 |
Weighted Average Remaining Contractual Life | 3 years 8 months 26 days |
Weighted Average Exercise Price (in dollars per share) | $ 15 |
Number Exercisable (in shares) | shares | shares | 5 |
Weighted Average Exercise Price (in dollars per share) | $ 15 |
$25.60 - $143.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range limit (in dollars per share) | 25.60 |
Upper range limit (in dollars per share) | $ 143.99 |
Number Outstanding (in shares) | shares | 3 |
Weighted Average Remaining Contractual Life | 4 years 4 months 9 days |
Weighted Average Exercise Price (in dollars per share) | $ 41.88 |
Number Exercisable (in shares) | shares | shares | 2 |
Weighted Average Exercise Price (in dollars per share) | $ 47.10 |
$144.00 - $409.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range limit (in dollars per share) | 144 |
Upper range limit (in dollars per share) | $ 409.99 |
Number Outstanding (in shares) | shares | 5 |
Weighted Average Remaining Contractual Life | 6 years 7 months 24 days |
Weighted Average Exercise Price (in dollars per share) | $ 144 |
Number Exercisable (in shares) | shares | shares | 5 |
Weighted Average Exercise Price (in dollars per share) | $ 144 |
$410.00 - $924.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range limit (in dollars per share) | 410 |
Upper range limit (in dollars per share) | $ 924 |
Number Outstanding (in shares) | shares | 1 |
Weighted Average Remaining Contractual Life | 5 years 2 months 8 days |
Weighted Average Exercise Price (in dollars per share) | $ 430.64 |
Number Exercisable (in shares) | shares | shares | 1 |
Weighted Average Exercise Price (in dollars per share) | $ 430.64 |
$1.57 - $924.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Lower range limit (in dollars per share) | 1.57 |
Upper range limit (in dollars per share) | $ 924 |
Number Outstanding (in shares) | shares | 161 |
Weighted Average Remaining Contractual Life | 8 years 9 months 18 days |
Weighted Average Exercise Price (in dollars per share) | $ 10.85 |
Number Exercisable (in shares) | shares | shares | 34 |
Weighted Average Exercise Price (in dollars per share) | $ 40.81 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2018USD ($)$ / sharesshares | Jul. 31, 2017USD ($)$ / sharesshares | Nov. 30, 2010Item$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | |
Stockholders Equity [Line Items] | |||||
Shares of common stock issued | 66,250 | ||||
Net proceeds from issuance of common stock | $ | $ 1,987,000 | ||||
Sale of Stock, Price Per Share | $ / shares | $ 34 | ||||
Warrants available to purchase | 33,125 | ||||
Exercise price of warrants | $ / shares | $ 6 | $ 47 | $ 4.80 | ||
Warrants expiration date | Jan. 6, 2023 | ||||
Gross proceeds from units offering | $ | $ 11,100 | ||||
Payment on principle amount of note | $ | $ 7,365 | ||||
Units offered during the period | 1,845,540 | ||||
Common stock warrants expiration date | Oct. 4, 2023 | ||||
Number of shares of common stock included in each common unit | 1 | ||||
Number of warrant to purchase share of common included in each common unit | 1 | ||||
Number of common stock warrant included in each pre-funded unit | 1 | ||||
Number of warrant to purchase share of common stock included in each pre-funded unit | 1 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.02 | $ 0.001 | $ 0.001 | ||
Number of preferred share purchase rights declared as dividend for each outstanding share of common stock | Item | 1 | ||||
Number of shares of Series AA Preferred Stock that a registered holder of right is entitled to purchase | 0.001 | ||||
Percentage of the company's common stock acquired by a third party upon which the rights become exercisable | 15.00% | ||||
Minimum percentage of the company's common stock that must receive a tender offer from a third party upon which the rights become exercisable | 15.00% | ||||
Common Stock Warrants | |||||
Stockholders Equity [Line Items] | |||||
Beneficial ownership maximum percentage of outstanding common stock | 9.99% | ||||
Exercise price per share minimum | $ / shares | $ 2.40 | ||||
Warrants outstanding | 1,845,540 | ||||
Warrants exercisable | 1,845,540 | ||||
Senior Secured Convertible Notes due August 15 2018 | |||||
Stockholders Equity [Line Items] | |||||
Payment on principle amount of note | $ | $ 7,400 | ||||
Common Units | |||||
Stockholders Equity [Line Items] | |||||
Units offered during the period | 403,250 | ||||
Units offered during the period, price per unit | $ / shares | $ 6 | ||||
Pre-funded Units | |||||
Stockholders Equity [Line Items] | |||||
Units offered during the period | 1,442,290 | ||||
Units offered during the period, price per unit | $ / shares | $ 6 | ||||
Warrants outstanding | 115,539 | ||||
Warrants exercisable | 115,539 |
Retirement Savings Plan - Addit
Retirement Savings Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Minimum age for eligibility to participate in the Savings Plan | 21 years | ||
Maximum contribution by the participants (as a percent) | 15.00% | ||
Matching contribution by the Company | $ 0 | $ 0 | $ 0 |
Business Segments, Concentrat_3
Business Segments, Concentration of Credit Risk and Significant Customers - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2019SegmentCustomer | Dec. 31, 2018Customer | |
Business Segments | ||
Number of business segments | Segment | 1 | |
Number of measurements of profitability | 1 | |
Accounts receivable | Major customers | Credit concentration | ||
Business Segments | ||
Percentage of concentration risk | 85.00% | 63.00% |
Number of customers | Customer | 4 | 3 |
Business Segments, Concentrat_4
Business Segments, Concentration of Credit Risk and Significant Customers - Schedule of Revenue from Shipment of Product and Licensing of its Technologies to Customers by Geographical Location (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Segments | |||
Total net revenue | $ 10,086 | $ 16,600 | $ 8,842 |
North America [Member] | |||
Business Segments | |||
Total net revenue | 7,585 | 12,998 | 6,531 |
Japan [Member] | |||
Business Segments | |||
Total net revenue | 1,734 | 2,956 | 1,520 |
Taiwan [Member] | |||
Business Segments | |||
Total net revenue | 345 | 399 | 613 |
Rest of world [Member] | |||
Business Segments | |||
Total net revenue | $ 422 | $ 247 | $ 178 |
Business Segments, Concentrat_5
Business Segments, Concentration of Credit Risk and Significant Customers - Schedule of Customers Who Accounted for at Least 10% of Total Net Revenue (Detail) - Net Revenues - Customer Concentration | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Customer A | |||
Significant Customers | |||
Percentage of concentration risk | 30.00% | 32.00% | 46.00% |
Customer B | |||
Significant Customers | |||
Percentage of concentration risk | 17.00% | 18.00% | 17.00% |
Customer C | |||
Significant Customers | |||
Percentage of concentration risk | 14.00% | ||
Customer D | |||
Significant Customers | |||
Percentage of concentration risk | 13.00% | 18.00% | |
Customer E | |||
Significant Customers | |||
Percentage of concentration risk | 15.00% | 11.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | Oct. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies | |||||
Operating lease beginning period | 2017-10 | ||||
Operating lease expiration period | 2020-10 | ||||
Lessee, operating lease, discount rate | 8.00% | ||||
Option to extend additional lease term | 20 months 15 days | ||||
Operating lease, option to extend | option to extend the lease for an additional 20.5 month period | ||||
Termination fee | $ 270,000 | ||||
Rent expenses | $ 212,000 | $ 212,000 | $ 470,000 | ||
Commission paid | 450,000 | ||||
Commissions expense | $ 250,000 | ||||
M West Propco - Old Lessor | |||||
Commitments and Contingencies | |||||
Termination fee | $ 250,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments under Facility Operating Lease (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Total future lease payments | $ 187 | |
Less: imputed interest | (21) | |
Present value of lease liabilities | $ 166 | $ 400 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Supplemental Cash Flow Information Related to Operating lease (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for lease | $ 219 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | ||||
Reduction in workforce, as a percent | 60.00% | |||
Restructuring expense | $ 50,000 | $ 1,000,000 | ||
Termination fee | $ 270,000 |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Restructuring charges | |
Balance at the beginning of the period | $ 478 |
Cash payments | (478) |
Facility Related | |
Restructuring charges | |
Balance at the beginning of the period | 89 |
Cash payments | (89) |
Contractual obligations and other termination costs | |
Restructuring charges | |
Balance at the beginning of the period | 389 |
Cash payments | $ (389) |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - USD ($) | Feb. 18, 2018 | Feb. 17, 2018 | Aug. 31, 2019 | Feb. 28, 2019 | Oct. 31, 2018 | Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 | Mar. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||||||||
Interest expense | $ 220,000 | $ 582,000 | $ 927,000 | ||||||||||
Payment on principle amount of note | 7,365,000 | ||||||||||||
Senior Secured Convertible Notes due August 15 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 8.00% | 10.00% | |||||||||||
Principal amount | $ 8,000,000 | ||||||||||||
Redemption purchase price | 100.00% | 120.00% | |||||||||||
Minimum ownership percentage triggering event for redemption of notes | 40.00% | ||||||||||||
Maximum amount of indebtedness subordinated by security interest and cash payment rights under debt instruments | $ 5,000,000 | ||||||||||||
Payment on principle amount of note | $ 7,400,000 | ||||||||||||
Senior Secured Convertible Notes due August 15 2018 | Contractual obligations and other termination costs | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 100,000 | ||||||||||||
Interest expense | 0 | $ 30,000 | $ 45,000 | ||||||||||
Senior Secured Convertible Notes due August 15 2018 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Percentage of beneficial ownership if effective upon conversion date of debt instrument | 19.90% | ||||||||||||
Senior Secured Convertible Notes due August 15 2018 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Period for outstanding balance of accounts receivable has not recorded an allowance for doubtful accounts | 90 days | ||||||||||||
Senior Secured Convertible Notes due August 15, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Conversion price | $ 11.434 | $ 170 | |||||||||||
Outstanding Notes payable | $ 2,900,000 | ||||||||||||
Interest Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Conversion price | $ 11.434 | ||||||||||||
Number of shares issuable if notes converted to shares of common stock | 253,630 | ||||||||||||
Semi-annual interest payments | $ 109,000 | $ 78,000 | $ 383,000 | $ 463,000 | $ 434,000 | $ 420,000 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Related Party Transactions [Abstract] | |
Payments to related party for construction work | $ 195,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) | Feb. 29, 2020USD ($) |
Subsequent Event | Interest Note 6 | |
Subsequent Event | |
Principal amount | $ 112,000 |