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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 01, 2018
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	mram
Entity Registrant Name	EVERSPIN TECHNOLOGIES INC
Entity Central Index Key	0001438423
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,904,112

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 32,725	$ 12,950
Accounts receivable, net	5,097	4,041
Inventory	9,621	9,837
Prepaid expenses and other current assets	1,225	590
Total current assets	48,668	27,418
Property and equipment, net	3,457	3,946
Other assets	209	73
Total assets	52,334	31,437
Current liabilities:
Accounts payable	2,883	2,920
Accrued liabilities	6,339	3,748
Deferred income on shipments to distributors		1,720
Current portion of long-term debt	5,993	3,987
Total current liabilities	15,215	12,375
Long-term debt, net of current portion	5,366	8,178
Total liabilities	20,581	20,553
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of June 30, 2018 and December 31, 2017
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 16,800,505 and 12,817,201 shares issued and outstanding as of June 30, 2018 and December 31, 2017	2	1
Additional paid-in capital	155,866	128,422
Accumulated deficit	(124,115)	(117,539)
Total stockholders' equity	31,753	10,884
Total liabilities and stockholders' equity	$ 52,334	$ 31,437

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Condensed Balance Sheets
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	16,800,505	12,817,201
Common stock, shares outstanding	16,800,505	12,817,201

Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Total revenue	$ 10,765	$ 8,925	$ 25,618	$ 16,805
Cost of sales	5,459	3,133	10,357	6,796
Gross profit	5,306	5,792	15,261	10,009
Operating expenses:
Research and development	6,773	6,427	13,253	12,816
General and administrative	3,329	2,793	6,548	5,638
Sales and marketing	1,713	1,361	3,079	2,219
Total operating expenses	11,815	10,581	22,880	20,673
Loss from operations	(6,509)	(4,789)	(7,619)	(10,664)
Interest expense	(222)	(176)	(433)	(406)
Other income, net	132	24	176	43
Loss on extinguishment of debt		(246)		(246)
Net loss and comprehensive loss	$ (6,599)	$ (5,187)	$ (7,876)	$ (11,273)
Net loss per common share, basic and diluted	$ (0.40)	$ (0.42)	$ (0.50)	$ (0.91)
Weighted-average shares used to compute net loss per common share, basic and diluted	16,635,261	12,413,524	15,717,248	12,357,066
Product sales
Total revenue	$ 9,449	$ 7,200	$ 18,814	$ 13,848
Licensing, royalty and other revenue
Total revenue	$ 1,316	$ 1,725	$ 6,804	$ 2,957

Condensed Statement of Cash Flows - USD ($) $ in Thousands	6 Months Ended
Condensed Statement of Cash Flows - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net loss	$ (7,876)	$ (11,273)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	729	510
Loss on disposal of property and equipment	19
Stock-based compensation	1,342	839
Non-cash loss on extinguishment of debt		185
Non-cash interest expense	200	119
Compensation expense related to vesting of common stock to GLOBALFOUNDRIES	462	716
Changes in operating assets and liabilities:
Accounts receivable	(1,391)	(524)
Inventory	170	(1,584)
Prepaid expenses and other current assets	(635)	48
Other assets	(136)	(11)
Accounts payable	51	(158)
Accrued liabilities	2,591	80
Deferred income on shipments to distributors	(39)	(237)
Net cash used in operating activities	(4,513)	(11,290)
Cash flows from investing activities
Purchases of property and equipment	(347)	(1,704)
Net cash used in investing activities	(347)	(1,704)
Cash flows from financing activities
Proceeds from issuance of common stock, net of offering costs	24,609
Proceeds from debt		12,000
Payments on debt	(1,000)	(8,356)
Payments of debt issuance costs		(49)
Payments on capital lease obligation	(6)	(7)
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan	1,032	855
Net cash provided by financing activities	24,635	4,443
Net increase (decrease) in cash and cash equivalents	19,775	(8,551)
Cash and cash equivalents at beginning of period	12,950	29,727
Cash and cash equivalents at end of period	32,725	21,176
Supplementary cash flow information:
Interest paid	233	288
Non-cash investing and financing activities:
Purchase of property and equipment in accounts payable	$ 27	$ 560

Organization and Nature of Business	6 Months Ended
Organization and Nature of Business	Jun. 30, 2018
Organization and Nature of Business
Organization and Nature of Business	1. Organization and Nature of Business Everspin Technologies, Inc. (the Company) was incorporated in Delaware on May 16, 2008. The Company’s magnetoresistive (MRAM) solutions offer the persistence of non-volatile memory with the speed and endurance of random access memory (RAM) and enable the protection of mission critical data particularly in the event of power interruption or failure. The Company’s MRAM solutions allow its customers in the industrial, automotive and transportation, and enterprise storage markets to design high performance, power efficient and reliable systems without the need for bulky batteries or capacitors. Ability to continue as a going concern The Company believes that its existing cash and cash equivalents as of June 30, 2018, coupled with its anticipated growth and sales levels will be sufficient to meet its anticipated cash requirements for at least the next twelve months from the financial statement issuance date. The Company’s future capital requirements will depend on many factors, including its growth rate, the timing and extent of its spending to support research and development activities, the timing and cost of establishing additional sales and marketing capabilities, and the introduction of new products. The Company may be required at some point in the future to seek additional equity or debt financing, to sustain operations beyond that point, and such additional financing may not be available on acceptable terms or at all. If the Company is unable to raise additional capital or generate sufficient cash from operations to adequately fund its operations, it will need to curtail planned activities to reduce costs. Doing so will likely harm its ability to execute on its business plan.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP have been condensed or omitted, and accordingly the balance sheet as of December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information required by GAAP for complete financial statements. These unaudited interim condensed financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair statement of the Company’s financial information. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any other interim period or for any other future year.

The accompanying condensed financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2017, included in the Company’s Annual Report on Form 10-K filed with the SEC.

Use of Estimates

The preparation of the condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition, fair value of assets and liabilities, inventory, income taxes, and stock-based compensation. Actual results could differ from those estimates and assumptions.

Accounts receivable, net

Accounts receivable are recorded at the invoiced amount and do not bear interest. The Company generally does not require collateral or other security in support of accounts receivable. Allowances are provided for individual accounts receivable when the Company becomes aware of a customer’s inability to meet its financial obligations, such as in the case of bankruptcy, deterioration in the customer’s operating results or change in financial position. If circumstances related to customers change, estimates of the recoverability of receivables would be further adjusted. The Company also considers a number of factors in evaluating the sufficiency of its allowance for doubtful accounts, including the length of time receivables are past due, significant one-time events, creditworthiness of customers and historical experience. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. At June 30, 2018 and December 31, 2017, there was no allowance for doubtful accounts.

The Company also establishes an allowance for product returns. The Company analyzes historical returns, current economic trends and changes in customer demand and acceptance of products when evaluating the adequacy of sales returns. As the returns are processed as credits on future purchases, the allowance is recorded against the balance of trade accounts receivable. In addition, the Company establishes an allowance for estimated price concessions related to its distributer agreements. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales. At June 30, 2018, the allowance for product returns and the allowance for price concessions were $238,000 and $362,000, respectively. At December 31, 2017, the allowance for product returns and the allowance for price concessions were $147,000 and $0, respectively.

Accounts receivable, net consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Trade accounts receivable	$	5,408	$	4,188
Unbilled accounts receivable		289		—
Allowance for accounts receivable		(600)		(147)
Accounts receivable, net	$	5,097	$	4,041

Concentration of Credit Risk

Financial instruments that potentially expose the Company to a concentration of credit risk consist principally of cash and cash equivalents that are held by a financial institution in the United States and accounts receivable. Amounts on deposit with a financial institution may at times exceed federally insured limits. The Company maintains its cash accounts with high credit quality financial institutions and, accordingly, minimal credit risk exists with respect to the financial institutions.

Significant customers are those which represent more than 10% of the Company’s total revenue or net accounts receivable balance at each respective balance sheet date. For the purposes of this disclosure, the Company defines “customer” as the entity that is purchasing the products or licenses directly from the Company, which includes the distributors of the Company’s products in addition to end customers that the Company sells to directly. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total accounts receivable, net are as follows:


	Revenue				Revenue				Accounts Receivable, net
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
Customers	2018		2017		2018		2017		2018		2017
Customer A	*		*		20	%	*		*		*
Customer B	14	%	17	%	14	%	14	%	*		*
Customer C	*		15	%	*		16	%	*		*
Customer D	19	%	*		13	%	*		17	%	11	%
Customer E	*		*		*		11	%	*		10	%
Customer F	*		*		*		*	%	*		15	%

*Less than 10%

Fair Value of Financial Instruments

The Company discloses and recognizes the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The carrying value of accounts receivable, accounts payable, and other accruals readily convertible into cash approximate fair value because of the short-term nature of the instruments. As of June 30, 2018, based on Level 2 inputs and the borrowing rates available to the Company for loans with similar terms and consideration of the Company’s credit risk, the carrying value of the Company’s variable interest rate debt, excluding unamortized debt issuance costs, approximates fair value. The Company’s financial instruments consist of Level 1 assets. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash equivalents.

The following tables sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis (in thousands):


	June 30, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	32,856	$	—	$	—	$	32,856
Total assets measured at fair value	$	32,856	$	—	$	—	$	32,856


	December 31, 2017
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	13,369	$	—	$	—	$	13,369
Total assets measured at fair value	$	13,369	$	—	$	—	$	13,369

Revenue Recognition

The Company recognizes revenue when a customer obtains control of the promised products or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. Revenue is recognized net of allowances for returns and price concessions, and any taxes collected from customers, which are subsequently remitted to governmental authorities.

Nature of Products and Services

The Company’s revenue is derived from the sale of MRAM-based products in discrete unit form, licenses of and royalties on its MRAM and magnetic sensor technology, the sale of backend foundry services and design services to third parties. Sales of products in discrete unit form are recognized at a point in time, revenue related to licensing agreements is recognized when the Company has delivered control of the technology, revenue related to royalty agreements is recognized in the period in which sales generated from products sold using the Company’s technology occurs, sales of backend foundry services are recognized over time, and design services to third parties are recognized either at a point in time or over time, depending on the nature of the services.

Product Revenue

For products sold in their discrete form, the Company either sells its products directly to original equipment manufacturers (OEMs), original design manufacturers (ODMs) and contract manufacturers (CMs), or through a network of distributors, who in turn sell to those customers. For sales directly to OEMs, ODMs and CMs, revenue is recognized when the OEM, ODM or CM obtains control of the product, which occurs at a point in time, generally upon shipment to the customer.

The Company sells the majority of its products to its distributors at a uniform list price. However, distributors may resell the Company’s products to end customers at a very broad range of individually negotiated price points. Distributors are provided with price concessions subsequent to the delivery of product to them and such amounts are dependent on the end customer and product sales price. The price concessions are based on a variety of factors, including customer, product, quantity, geography and competitive differentiation. Price protection rights grant distributors the right to a credit in the event of declines in the price of the Company’s products. Under these circumstances, the Company remits back to the distributor a portion of their original purchase price after the resale transaction is completed in the form of a credit against the distributors’ outstanding accounts receivable balance. The credits are on a per unit basis and are not given to the distributor until the distributor provides information regarding the sale to their end customer. The Company estimates these credits and records such estimates in the same period the related revenue is recognized, resulting in a reduction of product revenue and the establishment of an allowance for price concessions due to distributors. The Company estimates credits to distributors based on the historical rate of credits provided to distributors relative to sales. Revenue on shipments to distributors is recorded when control of the products has been transferred to the distributor.

The Company estimates the amount of its product sales that may be returned by its customers and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The Company estimates its product return liability by analyzing its historical returns, current economic trends and changes in customer demand and acceptance of products. The Company has received insignificant returns to date and believes that returns of its products will continue to be minimal.

At the time of shipment to distributors, the Company records a trade receivable for the selling price as there is a legally enforceable obligation of the distributor to pay for the product delivered, an allowance is recorded for the estimated discount that will be provided to the distributor, and the net of these amounts is recorded as revenue on the statement of operations.

License Revenue

For licenses of technology, recognition of revenue is dependent upon whether the Company has delivered rights to the technology, and whether there are future performance obligations under the contract. In some instances, the license agreements call for future events or activities to occur in order for milestones amounts to become due from the customer. The terms of such agreements include payment to the Company of one or more of the following: non-refundable upfront fees; and royalties on net sales of licensed products. Historically, these license agreements have not included other future performance obligations for the Company once the license has been transferred to the customer.

The transaction price in each agreement is allocated to the identified performance obligations based on the standalone selling price (SSP) of each distinct performance obligation. Judgment is required to determine SSP. In instances where SSP is not directly observable, such as when a license or service is not sold separately, SSP is determined using information that may include market conditions and other observable inputs.

Revenue from non-refundable up-front payments is recognized when the license is transferred to the customer and the Company has no other performance obligations.

Royalties

Revenue from sales-based royalties from licenses of the Company’s technology are recognized at the later of when (1) the sale occurs or (2) the performance obligation to which some or all of the sales-based royalty has been allocated is satisfied (in whole or in part).

Other Revenue

For certain revenue streams, the Company recognizes revenue based on the pattern of transfer of the services. The Company uses the input method of measuring costs incurred to date compared to total estimated costs to be incurred under the contract as this method most faithfully depicts its performance. The Company will record an unbilled receivable (within accounts receivable, net) for the portion of the work that has been completed but not invoiced at the end of each reporting period.

Revenue from milestone payments must be estimated using either the expected value method or the most likely amount method. At the inception of each agreement that includes milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price by using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates the probability or achievement of each such milestone and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenues and earnings in the period of adjustment.

Net Loss per Common Share

Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, less shares subject to repurchase, without consideration of potentially dilutive securities. Diluted net loss per common share is the same as basic net loss per common share since the effect of potentially dilutive securities is anti-dilutive.

Prior Period Reclassifications

Certain amounts in the prior period have been reclassified to conform with current period presentation. There was no impact on total revenue or net loss for the prior period.

Recently Adopted Pronouncements

ASU No. 2014-09, Revenue from Contracts with Customers

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606). Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. The new standard permits adoption either by using (i) a full retrospective approach for all periods presented in the period of adoption or (ii) a modified retrospective approach with the cumulative effect of initially applying the new standard recognized at the date of initial application and providing certain additional disclosures. The new standard is effective for annual reporting periods beginning after December 15, 2017. The Company adopted this standard on January 1, 2018 using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of its accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

As a result of the adoption of the new standard, the Company changed its accounting policy for revenue recognition and the details of the significant changes and quantitative impact of the changes are disclosed below.

Distributor sales - Some of the Company's contracts with distributors provide the distributor with certain concessions and price protection credits. Under Topic 605, Revenue, these concessions and price protection credits were not fixed or determinable and, as a result, the associated revenue was deferred until delivery of the product to the end customer. At the time of shipment to distributors, the Company recorded a trade receivable for the selling price as there was a legally enforceable obligation of the distributor to pay for the product delivered, inventory was reduced by the carrying value of goods shipped, and the net of these amounts, the gross profit, was recorded as deferred income on shipments to distributors on the balance sheet. Under Topic 606, the Company recognizes revenue from sales to distributors upon delivery of the product to the distributor and estimates the amount of the concessions and price protection credits at the point of revenue recognition. Accordingly, the balance of the deferred income on shipments to distributors was eliminated as a cumulative effect adjustment of implementing Topic 606 as of January 1, 2018, net of the Company’s estimate of concessions and price protection credits for those contracts.

Performance obligations delivered over time –Topic 605 permitted straight-line recognition of revenue for performance obligations that were delivered over time. The new revenue standard requires an entity to recognize revenue based on the pattern of transfer of the services. Entities must use either an input method or an output method to measure progress toward complete satisfaction of a performance obligation. The Company determined that the input method of measuring costs incurred to date compared to total estimated costs to be incurred under the contract most faithfully depicts its performance. Under Topic 606, the Company will record an unbilled receivable (within accounts receivable, net) for the portion of the service that has been completed but not invoiced at the end of each reporting period.

Milestone payments – Topic 605 permitted recognition using the milestone method, whereby revenue was recognized upon the completion of substantive milestones once the customers acknowledge the milestones have been met and the collection of the amounts is reasonably assured. The milestone method no longer exists under the new revenue standard. Revenue from milestone payments must be estimated using either the expected value method or the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur, the associated milestone value is included in the transaction price. The adoption of Topic 606 did not have an impact on milestone revenue recorded to date as the performance obligations related to such milestones were completed as of the adoption date.

Sales-based royalties – Topic 605 permitted recognition of royalties when reported to the Company, which generally coincided with the receipt of payment. Under the new revenue standard, revenue generated from sales-based royalties from licenses of technology are recognized at the later of when (1) the sale occurs or (2) the performance obligation to which some or all of the sales-based royalty has been allocated is satisfied (in whole or in part).

The change in revenue recognition upon adoption of Topic 606 resulted in a decrease in the accumulated deficit balance of $1.3 million on January 1, 2018.

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed balance sheet line items (in thousands):


					Balances without
					the adoption of
June 30, 2018	As reported		Adjustments		Topic 606
Accounts receivable, net	$	5,097	$	(524)	$	4,573
Inventory		9,621		47		9,668
Total current assets		48,668		(477)		48,191
Total assets		52,334		(477)		51,857
Deferred income on shipments to distributors		—		2,151		2,151
Total current liabilities		15,215		2,151		17,366
Total liabilities		20,581		2,151		22,732
Accumulated deficit		(124,115)		(2,628)		(126,743)
Total liabilities and stockholders’ equity		52,334		(477)		51,857

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of operations line items (in thousands, except per share data):


					Balances without
					the adoption of
Three Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	9,449	$	(586)	$	8,863
Licensing, royalty, and other revenue		1,316		(126)		1,190
Total revenue		10,765		(712)		10,053
Cost of sales		5,459		107		5,566
Gross profit		5,306		(819)		4,487
Loss from operations		(6,509)		(819)		(7,328)
Net loss and comprehensive loss		(6,599)		(819)		(7,418)
Net loss per common share, basic and diluted		(0.40)		(0.05)		(0.45)


					Balances without
					the adoption of
Six Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	18,814	$	(1,418)	$	17,396
Licensing, royalty, and other revenue		6,804		(97)		6,707
Total revenue		25,618		(1,515)		24,103
Cost of sales		10,357		(187)		10,170
Gross profit		15,261		(1,328)		13,933
Loss from operations		(7,619)		(1,328)		(8,947)
Net loss and comprehensive loss		(7,876)		(1,328)		(9,204)
Net loss per common share, basic and diluted		(0.50)		(0.08)		(0.58)

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of cash flows line items (in thousands):


					Balances without
					the adoption of
Six Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Cash flows from operating activities
Net loss	$	(7,876)	$	(1,328)	$	(9,204)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable		(1,391)		859		(532)
Inventory		170		(1)		169
Deferred income on shipments to distributors		(39)		470		431

ASU No. 2017-09, Compensation-Stock Compensation

In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting, which is intended to amend the scope of modification accounting for share-based payment arrangements. The amendments in the update provide guidance on types of changes to the terms or conditions of share-based payment awards that would require the Company to apply modification accounting under ASC 718, Compensation-Stock Compensation. This ASU is effective for annual reporting periods beginning after December 15, 2017, and early adoption was permitted. The Company adopted this standard on January 1, 2018, and the impact of its adoption on the Company’s financial statements was not material.

ASU No. 2016-15, Statement of Cash Flows

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 identifies how certain cash receipts and cash payments are presented and classified in the Statement of Cash Flows. The standard is effective for fiscal years and interim periods beginning after December 15, 2017. The standard should be applied retrospectively and early adoption was permitted, including adoption in an interim period. The Company adopted this standard on January 1, 2018, and the impact of its adoption on the Company’s financial statements was not material.

Recently Issued Pronouncements

In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. ASU 2018-07 is intended to reduce the cost and complexity and to improve financial reporting for nonemployee share-based payments. The ASU expands the scope of Topic 718, (which currently only includes share-based payments to employees) to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than a company’s adoption date of Topic 606. The Company is currently evaluating the impact that the adoption of ASU 2018-07 will have on its financial statements and related disclosures.

Revenue

6 Months Ended

Jun. 30, 2018

Revenue

Revenue

3. Revenue

Adoption of ASU No. 2014-09

On January 1, 2018, the Company adopted ASU No. 2014-09 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with Topic 605.

The Company sells the majority of its products to its distributors, but does recognize some revenue under licensing and royalty agreements. The following table presents the Company’s revenues disaggregated by sales channel, (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
Distributor	$	8,386	$	16,531
Non-distributor		2,379		9,087
Total revenue	$	10,765	$	25,618

All of the Company's performance obligations and associated revenue are generally transferred to customers at a point in time, with the exception of certain revenue streams which are performed over time commensurate with the delivery of service. The following table presents the Company’s revenues disaggregated by timing of recognition (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
Point in time	$	9,644	$	24,116
Over time		1,121		1,502
Total revenue	$	10,765	$	25,618

The following table presents the Company’s revenues disaggregated by type (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
Product sales	$	9,449	$	18,814
License fees		—		5,000
Royalties		195		302
Other revenue		1,121		1,502
Total revenue	$	10,765	$	25,618

The Company recognizes revenue in three primary geographic regions: North America; Europe, Middle East and Africa (EMEA); and Asia-Pacific and Japan (APJ). The following table presents the Company’s revenues disaggregated by the geographic region to which the product is delivered or licensee is located (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
North America	$	2,379	$	4,110
EMEA		2,096		5,147
APJ		6,290		16,361
Total revenue	$	10,765	$	25,618

Balance Sheet Components

6 Months Ended

Jun. 30, 2018

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Inventory

Inventory consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Raw materials	$	92	$	682
Work-in-process		3,766		4,517
Finished goods		5,763		4,638
Total inventory	$	9,621	$	9,837

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Accrued payroll-related expenses	$	1,267	$	1,331
Accrued joint development agreement expenses		3,446		749
Accrued inventory		690		897
Deferred rent		322		230
Accrued sales commissions payable to sales representatives		133		75
Other		481		466
Total accrued liabilities	$	6,339	$	3,748

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	5. Commitments and Contingencies Operating Leases During 2017, the Company entered into a lease for 27,974 square feet of office space for its corporate headquarters located in Chandler, Arizona. The lease expires in January 2022, however the Company has the option to renew the lease through August 2024. Rent expense is recognized on a straight-line basis over the term of the leases and, accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. In April 2018, the Company entered into a lease termination agreement that released the Company from any further obligations on its previous headquarters’ space in Chandler, Arizona. The remaining unamortized balance of deferred rent of $18,000 was written off and a lease termination fee of $43,000 was recognized as rent expense on the unaudited condensed statement of operations and comprehensive loss. The Company leases office and fabrication space for its design facility located in Austin, Texas. The lease expires in January 2022. The Company has another operating lease for its Arizona manufacturing facility, which includes office and fabrication space. This lease is cancellable upon 24 months’ notice by either of the parties. The lease expires in January 2020, however it can be further extended through January 2021 if an option to extend is initiated by the lessor.

Debt

6 Months Ended

Jun. 30, 2018

Debt

Debt

6. Debt

2017 Credit Facility

On May 4, 2017, the Company entered into a Loan and Security Agreement with Silicon Valley Bank (2017 Credit Facility) for a $12.0 million term loan. The term loan provides for interest at a floating rate equal to the prime rate minus 0.75%. As of June 30, 2018, the interest rate was 4.25%. The term loan provides for a period of interest-only payments through April 30, 2018, followed by fixed principal and interest payments based on either a 24-month amortization schedule or a 36-month amortization schedule if the Company meets certain sales milestones. As of December 31, 2017, the Company determined it would not meet the sales milestones and as such the term loan is based on a 24-month amortization schedule. Borrowings under the 2017 Credit Facility mature in May 2020. The Company is required to comply with certain covenants under the 2017 Credit Facility, including requirements to maintain a minimum liquidity ratio, meet certain revenue targets, and restrictions on certain actions without the consent of the lender, such as the disposal and acquisition of its business or property, changes in business, and mergers or acquisitions. An end of term fee of 6% of the amount borrowed must be made when the loan is prepaid or repaid, whether at maturity or as a result of a prepayment or acceleration or otherwise. The additional payment is being accreted using the effective interest method.

Security for the 2017 Credit Facility includes all of the Company’s assets except for intellectual property. The 2017 Credit Facility contains customary covenants restricting the Company’s activities, including limitations on its ability to sell assets, engage in mergers and acquisitions, enter into transactions involving related parties, incur indebtedness or grant liens or negative pledges on its assets, make loans or make other investments. Under these covenants, the Company is prohibited from paying cash dividends with respect to its capital stock. The Company was in compliance with all covenants at June 30, 2018. The 2017 Credit Facility contains a material adverse effect clause which provides that an event of default will occur if, among other triggers, an event occurs that could reasonably be expected to result in a material adverse effect on the Company’s business, operations or condition, or on the Company’s ability to perform its obligations under the term loan. As of June 30, 2018, management does not believe that it is probable that the clause will be triggered within the next twelve months, and therefore the term loan is classified as long-term.

The carrying value of the Company’s 2017 Credit Facility at June 30, 2018 was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Debt, including end of term fee	$	6,000	$	5,720	$	11,720
Less:
Discount attributable to end of term fee and debt issuance costs		(17)		(369)		(386)
Net carrying value of debt	$	5,983	$	5,351	$	11,334

The carrying value of the Company’s 2017 Credit Facility at December 31, 2017 was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Debt, including end of term fee	$	4,000	$	8,720	$	12,720
Less:
Discount attributable to end of term fee and debt issuance costs		(23)		(563)		(586)
Net carrying value of debt	$	3,977	$	8,157	$	12,134

Capital Lease Obligations

The Company leases certain equipment under a capital lease obligation expiring in October 2020. The balance of the capital lease obligation was $25,000 and $31,000 at June 30, 2018 and December 31, 2017, respectively.

Property and equipment under the capital lease amounted to $31,000 at June 30, 2018 and December 31, 2017. Accumulated depreciation and amortization on these assets was $7,000 and $2,000 at June 30, 2018 and December 31, 2017, respectively.

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2018
Stockholders’ Equity
Stockholders’ Equity	7. Stockholders’ Equity In February 2018, the Company completed a follow-on underwritten public offering of its common stock under its Registration Statement filed in November 2017 (File No. 333-221331), selling 3,772,447 shares of its common stock at an offering price of $7.00 per share for proceeds of $24.6 million, net of $1.8 million of underwriting discounts and commissions and other offering costs.

Stock-Based Compensation

6 Months Ended

Jun. 30, 2018

Stock-Based Compensation

Stock-Based Compensation

8. Stock-Based Compensation

The following table summarizes the stock option activity for the six months ended June 30, 2018:


		Options Outstanding
			Weighted-		Weighted-
			Average		Average
	Options		Exercise		Remaining	Aggregate
	Available for	Number of	Price Per		Contractual	Intrinsic
	Grant	Options	Share		Life (years)	Value
						(In thousands)
Balance—December 31, 2017	83,929	1,593,195	$	8.88	6.6	$	1,997
Prior period adjustment	(1,026)	13,784		4.54
Options authorized	1,084,516	—		—
RSUs granted	(60,450)	—		—
RSUs cancelled/forfeited	1,900	—		—
Options granted	(310,715)	310,715		8.79
Options exercised	—	(190,800)		4.69		$	815
Options cancelled/forfeited	28,834	(30,707)		7.97
Balance—June 30, 2018	826,988	1,696,187	$	7.28	7.2	$	3,204
Options exercisable—June 30, 2018		746,702	$	5.85	4.8	$	2,355

The total grant date fair value of options vested was $545,000 and $797,000 during the three months ended June 30, 2018 and 2017, respectively, and $922,000 and $904,000 during the six months ended June 30, 2018 and 2017, respectively.

The weighted-average grant date fair value of employee options granted during the three months ended June 30, 2018 and 2017 was $4.14 and $5.25 per share, respectively, and during the six months ended June 30, 2018 and 2017 was $4.56 and $4.67 per share, respectively.

2016 Employee Stock Purchase Plan

In January 2018, there was an increase of 128,172 shares reserved for issuance under the Company’s Employee Stock Purchase Plan (ESPP). The Company had 291,659 shares available for future issuance under the Company’s ESPP as of June 30, 2018. Employees purchased 20,057 shares for $137,000 during the three and six months ended June 30, 2018. Employees purchased 17,924 shares for $122,000 during the three and six months ended June 30, 2017.

Modification of Stock Awards

In February 2018, the Company modified the terms of 400,000 vested and unvested stock option awards granted to the Chief Executive Officer, by reducing their exercise price from $16.25 per share to $7.64 per share. There was no change to any of the other terms of the option awards. The modification resulted in an incremental value of $600,000 being allocated to the options, of which $63,000 was recognized to expense immediately based on options that were vested at the time of the modification. The remaining incremental value of $537,000 attributable to unvested options will be recognized over the remaining vesting term through September 2021.

Restricted Stock Units

The following table summarizes Restricted Stock Units (RSUs) activity for the six months ended June 30, 2018:


	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2017	30,680	$	10.55
Granted	60,450		8.66
Cancelled/forfeited	(1,900)		8.39
Balance—June 30, 2018	89,230	$	9.32

The fair value of RSUs is determined on the date of grant based on the market price of the Company’s common stock on that date. As of June 30, 2018, there was $625,000 of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.9 years.

Stock-based Compensation Expense

The Company recognized stock-based compensation expense from awards granted to employees and non-employees under its equity incentive plans and from its ESPP as follows, excluding amounts related to GLOBALFOUNDRIES, Inc. (GF) (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Research and development	$	138	$	73	$	246	$	245
General and administrative		466		213		899		439
Sales and marketing		113		122		197		155
Total	$	717	$	408	$	1,342	$	839

As of June 30, 2018, there was $5.9 million of total unrecognized compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 2.9 years.

Employee Stock-based Compensation

Stock-based compensation expense for employees was $688,000 and $319,000 for the three months ended June 30, 2018 and 2017, respectively, and $1.3 million and $740,000 for the six months ended June 30, 2018 and 2017, respectively.

The Company estimated the fair value of each option using the Black-Scholes option-pricing model. The fair value of employee stock options is being amortized on a straight-line basis over the requisite service period of the awards. The fair value of employee stock options was estimated using the assumptions below. Each of these inputs is subjective and its determination generally requires significant judgment.


	Option Plan				ESPP
	Six Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Expected volatility	51.9-53.1	%	47.2-59.3	%	59.5- 87.8	%	49.5	%
Risk-free interest rate	2.6-2.9	%	2.0-2.1	%	0.9-2.1	%	0.5	%
Expected term (in years)	5.7-6.1		5.8-6.1		0.5-1.0		0.5
Dividend yield	—	%	—	%	—	%	—	%

Non-employee Stock-based Compensation

Stock-based compensation expense related to stock options granted to non-employees is recognized as the stock options vest. No stock options were granted to non-employees during the three months June 30, 2018. During the six months ended June 30, 2018, the Company granted stock options to non-employees to purchase 7,200 shares of common stock. No stock options were granted to non-employees during the three and six months June 30, 2017. As of June 30, 2018, options to purchase 45,072 shares of common stock were outstanding with a weighted-average exercise price of $9.15 per share. Stock-based compensation expense for non-employees was $29,000 and $89,000 for the three months ended June 30, 2018 and 2017, respectively, and $44,000 and $99,000 for the six months ended June 30, 2018 and 2017, respectively.

Joint Development Agreement	6 Months Ended
Joint Development Agreement	Jun. 30, 2018
Joint Development Agreement
Joint Development Agreement	9. Joint Development Agreement On October 17, 2014, the Company entered into a Joint Development Agreement (JDA) with GLOBALFOUNDRIES (GF), for the joint development of the Company’s Spin Transfer Torque MRAM (STT-MRAM) technology. The term of the agreement is the later of four years from the effective date or until the completion, termination or expiration of the last statement of work entered into pursuant to the JDA. The JDA also states that the specific terms and conditions for the production and supply of the developed STT-MRAM technology would be pursuant to a separate manufacturing agreement entered into between the parties. Under the JDA, each party licenses its relevant intellectual property to the other party. For certain jointly developed works, the parties have agreed to follow an invention allocation procedure to determine ownership. In addition, GF possesses the exclusive right to manufacture the Company’s discrete and embedded STT-MRAM devices developed pursuant to the agreement until the earlier of three years after the qualification of the MRAM device for a particular technology node or four years after the completion of the relevant statement of work under which the device was developed. For the same exclusivity period associated with the relevant device, GF agreed not to license intellectual property developed in connection with the JDA to named competitors of the Company. Generally, unless otherwise specified in the agreement or a statement of work, the Company and GF share project costs, which do not include personnel or production qualification costs, equally under the JDA. If GF manufactures, sells or transfers to customers wafers containing production quantified STT-MRAM devices that utilize certain design information, GF will be required to pay the Company a royalty. The term of the agreement is four years and is extended until the completion of any development work, if later. The Company incurred project costs, recognized as research and development expense, of $2.3 million and $1.4 million for the three months ended June 30, 2018 and 2017 respectively, and $4.4 million and $3.2 million for the six months ended June 30, 2018 and 2017 respectively. The Company entered into Statement of Work 4B (SOW 4B) and an Amendment to SOW 4B, under the JDA with GF effective August 2016 and June 2018, respectively. The Company was eligible to receive milestone payments from SOW 4B and its Amendment for an aggregate of $1.6 million and $1.0 million, respectively. The Amendment was accounted for as a separate contract rather than a modification of SOW 4B, as the Company had completed its performance obligations under SOW 4B as of December 31, 2017. The Company recognized revenue from GF of $500,000 and $650,000 in the three months ended June 30, 2018 and 2017, respectively, and $500,000 and $1.2 million in the six months ended June 30, 2018 and 2017, respectively. On October 21, 2014, GF participated, along with other investors, in the Company’s Series B redeemable convertible preferred stock financing and purchased 192,307 shares at $26.00 per share. Contemporaneously, the Company sold 461,538 shares of its common stock to GF at a discounted price of $0.00026 per share. The common shares vest upon the achievement of a goal as set forth in the Statement of Work #1 (the SOW) under the JDA. The unvested common shares are subject to repurchase by the Company, if the JDA is terminated for any reason, for a one-year period after such termination, at a price that is the lower of the original price paid by GF or the fair value of the Company’s common stock as of the date of repurchase. The Company has determined that the issuance of these shares of common stock to GF represents compensation for services to be provided under the JDA. Accordingly, the shares are accounted for similar to a stock award granted to a non-employee of the Company and are remeasured to their fair value as they vest. A total of 211,538 shares of common stock became vested on August 21, 2016, the designated Initial Measurement Date. The remaining shares vest on a monthly basis thereafter. Subsequent to the Initial Measurement Date through June 30, 2018, an additional 211,538 shares of common stock became vested. As of June 30, 2018, there were 38,462 shares unvested that were subject to repurchase. The Company recognized non-cash compensation expense of $225,000 and $461,000 during the three months ended June 30, 2018 and 2017, respectively, and $462,000 and $716,000 during the six months ended June 30, 2018 and 2017, respectively, in research and development expense related to the vesting of the shares of common stock. The Company recognizes compensation expense based on the estimated fair value of the common stock at each reporting period, which was $8.92 and $7.50 per share as of June 30, 2018 and December 31, 2017, respectively.

Net Loss Per Common Share

6 Months Ended

Jun. 30, 2018

Net Loss Per Common Share

Net Loss Per Common Share

10. Net Loss Per Common Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share amounts):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net loss	$	(6,599)	$	(5,187)	$	(7,876)	$	(11,273)
Denominator:
Weighted-average common shares outstanding		16,689,677		12,583,325		15,786,043		12,541,245
Less: weighted-average unvested common shares subjected to repurchase		(54,416)		(169,801)		(68,795)		(184,179)
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted		16,635,261		12,413,524		15,717,248		12,357,066
Net loss per common share, basic and diluted	$	(0.40)	$	(0.42)	$	(0.50)	$	(0.91)

The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per common share for the periods presented, because their inclusion would be anti-dilutive:


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2018	2017	2018	2017
Options to purchase common stock	1,696,187	1,268,665	1,696,187	1,268,665
Restricted stock units	89,230	—	89,230	—
Common stock subject to repurchase	38,462	153,846	38,462	153,846
Common stock warrants	27,690	27,690	27,690	27,690
Total	1,851,569	1,450,201	1,851,569	1,450,201

License Agreements	6 Months Ended
License Agreements	Jun. 30, 2018
License Agreements
License Agreements	11. License Agreements In March 2018, the Company entered into a global cross-license agreement with a customer pursuant to which the Company granted a worldwide, non-exclusive, non-transferable, irrevocable, royalty-bearing license under the Company’s patents to use, sell, import and export the Company’s products. Under the cross-license agreement, the Company received a non-refundable license fee and is entitled to quarterly royalty payments based upon low single digits of the average selling price of products covered under the license agreement. The license was transferred to the customer and the Company recognized the non-refundable license fee during the six months ended June 30, 2018. The cross-license agreement will remain in effect until the licensed patents have expired, been abandoned, or ruled invalid.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2018
Subsequent Events
Subsequent Events	12. Subsequent Events In July 2018, the Company entered into the First Amendment to its 2017 Credit Facility (the “Amended Credit Facility”). The Amended Credit Facility extends the period of interest-only payments through December 31, 2018, followed by fixed principal and interest payments based on a 24-month amortization schedule. If the Company achieves certain milestones, the loan will be based on a 36-month amortization schedule. The terms of the Amended Credit Facility include the return by Silicon Valley Bank of principal payments previously made by the Company. The Company is required to comply with certain covenants under the Amended Credit Facility, including requirements to maintain a minimum liquidity ratio, meet certain revenue targets, and restrictions on certain actions without the consent of the lender, such as the disposal and acquisition of its business or property, changes in business, and mergers or acquisitions. An end of term fee of 7% of the amount borrowed must be made when the loan is prepaid or repaid, whether at maturity or as a result of a prepayment or acceleration or otherwise. In conjunction with the Amended Credit Facility, outstanding warrants held by SVB to purchase 9,229 shares of the Company’s common stock were cancelled. The Company subsequently issued a warrant to SVB for the purchase of 9,375 shares of the Company’s common stock at an exercise price of $8.91 per share. The warrant can be exercised at any time and expires five years after the date of issuance. In August 2018, the Company amended its lease agreement for its Arizona manufacturing facility to extend the lease term through January 2021. The aggregate rent expense be recognized over the remaining term of the lease is $2.4 million.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies

Basis of Presentation

Use of Estimates

Accounts receivable, net

Accounts receivable, net consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Trade accounts receivable	$	5,408	$	4,188
Unbilled accounts receivable		289		—
Allowance for accounts receivable		(600)		(147)
Accounts receivable, net	$	5,097	$	4,041

Concentration of Credit Risk


	Revenue				Revenue				Accounts Receivable, net
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
Customers	2018		2017		2018		2017		2018		2017
Customer A	*		*		20	%	*		*		*
Customer B	14	%	17	%	14	%	14	%	*		*
Customer C	*		15	%	*		16	%	*		*
Customer D	19	%	*		13	%	*		17	%	11	%
Customer E	*		*		*		11	%	*		10	%
Customer F	*		*		*		*	%	*		15	%

*Less than 10%

Fair Value of Financial Instruments

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

The following tables sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis (in thousands):


	June 30, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	32,856	$	—	$	—	$	32,856
Total assets measured at fair value	$	32,856	$	—	$	—	$	32,856


	December 31, 2017
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	13,369	$	—	$	—	$	13,369
Total assets measured at fair value	$	13,369	$	—	$	—	$	13,369

Revenue Recognition

Nature of Products and Services

Product Revenue

License Revenue

Revenue from non-refundable up-front payments is recognized when the license is transferred to the customer and the Company has no other performance obligations.

Royalties

Other Revenue

Net Loss per Common Share

Prior Period Reclassifications

Certain amounts in the prior period have been reclassified to conform with current period presentation. There was no impact on total revenue or net loss for the prior period.

Recently Adopted Pronouncements and Recently Issued Pronouncements

Recently Adopted Pronouncements

ASU No. 2014-09, Revenue from Contracts with Customers

The change in revenue recognition upon adoption of Topic 606 resulted in a decrease in the accumulated deficit balance of $1.3 million on January 1, 2018.

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed balance sheet line items (in thousands):


					Balances without
					the adoption of
June 30, 2018	As reported		Adjustments		Topic 606
Accounts receivable, net	$	5,097	$	(524)	$	4,573
Inventory		9,621		47		9,668
Total current assets		48,668		(477)		48,191
Total assets		52,334		(477)		51,857
Deferred income on shipments to distributors		—		2,151		2,151
Total current liabilities		15,215		2,151		17,366
Total liabilities		20,581		2,151		22,732
Accumulated deficit		(124,115)		(2,628)		(126,743)
Total liabilities and stockholders’ equity		52,334		(477)		51,857

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of operations line items (in thousands, except per share data):


					Balances without
					the adoption of
Three Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	9,449	$	(586)	$	8,863
Licensing, royalty, and other revenue		1,316		(126)		1,190
Total revenue		10,765		(712)		10,053
Cost of sales		5,459		107		5,566
Gross profit		5,306		(819)		4,487
Loss from operations		(6,509)		(819)		(7,328)
Net loss and comprehensive loss		(6,599)		(819)		(7,418)
Net loss per common share, basic and diluted		(0.40)		(0.05)		(0.45)


					Balances without
					the adoption of
Six Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	18,814	$	(1,418)	$	17,396
Licensing, royalty, and other revenue		6,804		(97)		6,707
Total revenue		25,618		(1,515)		24,103
Cost of sales		10,357		(187)		10,170
Gross profit		15,261		(1,328)		13,933
Loss from operations		(7,619)		(1,328)		(8,947)
Net loss and comprehensive loss		(7,876)		(1,328)		(9,204)
Net loss per common share, basic and diluted		(0.50)		(0.08)		(0.58)

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of cash flows line items (in thousands):


					Balances without
					the adoption of
Six Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Cash flows from operating activities
Net loss	$	(7,876)	$	(1,328)	$	(9,204)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable		(1,391)		859		(532)
Inventory		170		(1)		169
Deferred income on shipments to distributors		(39)		470		431

ASU No. 2017-09, Compensation-Stock Compensation

ASU No. 2016-15, Statement of Cash Flows

Recently Issued Pronouncements

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Significant Accounting Policies

Schedule of accounts receivable net

Accounts receivable, net consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Trade accounts receivable	$	5,408	$	4,188
Unbilled accounts receivable		289		—
Allowance for accounts receivable		(600)		(147)
Accounts receivable, net	$	5,097	$	4,041

Schedule of Revenue and Accounts Receivable for Each Significant Customer


	Revenue				Revenue				Accounts Receivable, net
	Three Months Ended				Six Months Ended				As of		As of
	June 30,				June 30,				June 30,		December 31,
Customers	2018		2017		2018		2017		2018		2017
Customer A	*		*		20	%	*		*		*
Customer B	14	%	17	%	14	%	14	%	*		*
Customer C	*		15	%	*		16	%	*		*
Customer D	19	%	*		13	%	*		17	%	11	%
Customer E	*		*		*		11	%	*		10	%
Customer F	*		*		*		*	%	*		15	%

*Less than 10%

Schedule of Fair Value of Financial Assets Measured on Recurring Basis

The following tables sets forth the fair value of the Company’s financial assets measured at fair value on a recurring basis (in thousands):


	June 30, 2018
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	32,856	$	—	$	—	$	32,856
Total assets measured at fair value	$	32,856	$	—	$	—	$	32,856


	December 31, 2017
	Level 1		Level 2		Level 3			Total
Assets:
Money market funds	$	13,369	$	—	$	—	$	13,369
Total assets measured at fair value	$	13,369	$	—	$	—	$	13,369

Schedule of impact of adopting Topic 606

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed balance sheet line items (in thousands):


					Balances without
					the adoption of
June 30, 2018	As reported		Adjustments		Topic 606
Accounts receivable, net	$	5,097	$	(524)	$	4,573
Inventory		9,621		47		9,668
Total current assets		48,668		(477)		48,191
Total assets		52,334		(477)		51,857
Deferred income on shipments to distributors		—		2,151		2,151
Total current liabilities		15,215		2,151		17,366
Total liabilities		20,581		2,151		22,732
Accumulated deficit		(124,115)		(2,628)		(126,743)
Total liabilities and stockholders’ equity		52,334		(477)		51,857

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of operations line items (in thousands, except per share data):


					Balances without
					the adoption of
Three Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	9,449	$	(586)	$	8,863
Licensing, royalty, and other revenue		1,316		(126)		1,190
Total revenue		10,765		(712)		10,053
Cost of sales		5,459		107		5,566
Gross profit		5,306		(819)		4,487
Loss from operations		(6,509)		(819)		(7,328)
Net loss and comprehensive loss		(6,599)		(819)		(7,418)
Net loss per common share, basic and diluted		(0.40)		(0.05)		(0.45)


					Balances without
					the adoption of
Six Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Product sales	$	18,814	$	(1,418)	$	17,396
Licensing, royalty, and other revenue		6,804		(97)		6,707
Total revenue		25,618		(1,515)		24,103
Cost of sales		10,357		(187)		10,170
Gross profit		15,261		(1,328)		13,933
Loss from operations		(7,619)		(1,328)		(8,947)
Net loss and comprehensive loss		(7,876)		(1,328)		(9,204)
Net loss per common share, basic and diluted		(0.50)		(0.08)		(0.58)

The following table summarizes the impact of adopting Topic 606 on select unaudited condensed statement of cash flows line items (in thousands):


					Balances without
					the adoption of
Six Months Ended June 30, 2018	As reported		Adjustments		Topic 606
Cash flows from operating activities
Net loss	$	(7,876)	$	(1,328)	$	(9,204)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable		(1,391)		859		(532)
Inventory		170		(1)		169
Deferred income on shipments to distributors		(39)		470		431

Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Revenue

Schedule of disaggregation of revenue

The following table presents the Company’s revenues disaggregated by sales channel, (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
Distributor	$	8,386	$	16,531
Non-distributor		2,379		9,087
Total revenue	$	10,765	$	25,618


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
Point in time	$	9,644	$	24,116
Over time		1,121		1,502
Total revenue	$	10,765	$	25,618

The following table presents the Company’s revenues disaggregated by type (in thousands):


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
Product sales	$	9,449	$	18,814
License fees		—		5,000
Royalties		195		302
Other revenue		1,121		1,502
Total revenue	$	10,765	$	25,618


	Three Months Ended		Six Months Ended
	June 30, 2018		June 30, 2018
North America	$	2,379	$	4,110
EMEA		2,096		5,147
APJ		6,290		16,361
Total revenue	$	10,765	$	25,618

Balance Sheet Components (Tables)

6 Months Ended

Jun. 30, 2018

Balance Sheet Components

Schedule of Inventory

Inventory consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Raw materials	$	92	$	682
Work-in-process		3,766		4,517
Finished goods		5,763		4,638
Total inventory	$	9,621	$	9,837

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	June 30,		December 31,
	2018		2017
Accrued payroll-related expenses	$	1,267	$	1,331
Accrued joint development agreement expenses		3,446		749
Accrued inventory		690		897
Deferred rent		322		230
Accrued sales commissions payable to sales representatives		133		75
Other		481		466
Total accrued liabilities	$	6,339	$	3,748

Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt

Summary of Debt

The carrying value of the Company’s 2017 Credit Facility at June 30, 2018 was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Debt, including end of term fee	$	6,000	$	5,720	$	11,720
Less:
Discount attributable to end of term fee and debt issuance costs		(17)		(369)		(386)
Net carrying value of debt	$	5,983	$	5,351	$	11,334

The carrying value of the Company’s 2017 Credit Facility at December 31, 2017 was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Debt, including end of term fee	$	4,000	$	8,720	$	12,720
Less:
Discount attributable to end of term fee and debt issuance costs		(23)		(563)		(586)
Net carrying value of debt	$	3,977	$	8,157	$	12,134

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Stock-Based Compensation

Summary of Stock Option Activity


		Options Outstanding
			Weighted-		Weighted-
			Average		Average
	Options		Exercise		Remaining	Aggregate
	Available for	Number of	Price Per		Contractual	Intrinsic
	Grant	Options	Share		Life (years)	Value
						(In thousands)
Balance—December 31, 2017	83,929	1,593,195	$	8.88	6.6	$	1,997
Prior period adjustment	(1,026)	13,784		4.54
Options authorized	1,084,516	—		—
RSUs granted	(60,450)	—		—
RSUs cancelled/forfeited	1,900	—		—
Options granted	(310,715)	310,715		8.79
Options exercised	—	(190,800)		4.69		$	815
Options cancelled/forfeited	28,834	(30,707)		7.97
Balance—June 30, 2018	826,988	1,696,187	$	7.28	7.2	$	3,204
Options exercisable—June 30, 2018		746,702	$	5.85	4.8	$	2,355

Schedule of Restricted Stock Unit Activity


	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2017	30,680	$	10.55
Granted	60,450		8.66
Cancelled/forfeited	(1,900)		8.39
Balance—June 30, 2018	89,230	$	9.32

Summary of Stock-Based Compensation Expense


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Research and development	$	138	$	73	$	246	$	245
General and administrative		466		213		899		439
Sales and marketing		113		122		197		155
Total	$	717	$	408	$	1,342	$	839

Schedule of Fair Value Assumptions


	Option Plan				ESPP
	Six Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Expected volatility	51.9-53.1	%	47.2-59.3	%	59.5- 87.8	%	49.5	%
Risk-free interest rate	2.6-2.9	%	2.0-2.1	%	0.9-2.1	%	0.5	%
Expected term (in years)	5.7-6.1		5.8-6.1		0.5-1.0		0.5
Dividend yield	—	%	—	%	—	%	—	%

Net Loss Per Common Share (Tables)

6 Months Ended

Jun. 30, 2018

Net Loss Per Common Share

Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share amounts):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Numerator:
Net loss	$	(6,599)	$	(5,187)	$	(7,876)	$	(11,273)
Denominator:
Weighted-average common shares outstanding		16,689,677		12,583,325		15,786,043		12,541,245
Less: weighted-average unvested common shares subjected to repurchase		(54,416)		(169,801)		(68,795)		(184,179)
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted		16,635,261		12,413,524		15,717,248		12,357,066
Net loss per common share, basic and diluted	$	(0.40)	$	(0.42)	$	(0.50)	$	(0.91)

Schedule of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Common Share


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2018	2017	2018	2017
Options to purchase common stock	1,696,187	1,268,665	1,696,187	1,268,665
Restricted stock units	89,230	—	89,230	—
Common stock subject to repurchase	38,462	153,846	38,462	153,846
Common stock warrants	27,690	27,690	27,690	27,690
Total	1,851,569	1,450,201	1,851,569	1,450,201

Summary of Significant Accounting Policies - Revenue Recognition - Accounts receivable, net (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, net
Trade accounts receivable	$ 5,408,000	$ 4,188,000
Unbilled accounts receivable	289,000
Allowance for accounts receivable	600,000	147,000
Accounts receivable, net	5,097,000	4,041,000
Non-distributor
Accounts receivable, net
Allowance for accounts receivable	238,000	147,000
Distributor
Accounts receivable, net
Allowance for accounts receivable	$ 362,000	$ 0

Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable for Each Significant Customer (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Allowance for Trade Receivables
Accounts Receivable
Accounts receivable allowance	$ 0		$ 0		$ 0
Revenue \| Customer Concentration Risk \| Customer A
Accounts Receivable
Concentration risk percentage			20.00%
Revenue \| Customer Concentration Risk \| Customer A \| Maximum
Accounts Receivable
Concentration risk percentage	10.00%	10.00%		10.00%
Revenue \| Customer Concentration Risk \| Customer B
Accounts Receivable
Concentration risk percentage	14.00%	17.00%	14.00%	14.00%
Revenue \| Customer Concentration Risk \| Customer C
Accounts Receivable
Concentration risk percentage		15.00%		16.00%
Revenue \| Customer Concentration Risk \| Customer C \| Maximum
Accounts Receivable
Concentration risk percentage	10.00%		10.00%
Revenue \| Customer Concentration Risk \| Customer D
Accounts Receivable
Concentration risk percentage	19.00%		13.00%
Revenue \| Customer Concentration Risk \| Customer D \| Maximum
Accounts Receivable
Concentration risk percentage		10.00%		10.00%
Revenue \| Customer Concentration Risk \| Customer E
Accounts Receivable
Concentration risk percentage				11.00%
Revenue \| Customer Concentration Risk \| Customer E \| Maximum
Accounts Receivable
Concentration risk percentage	10.00%	10.00%	10.00%
Revenue \| Customer Concentration Risk \| Customer F \| Maximum
Accounts Receivable
Concentration risk percentage	10.00%	10.00%	10.00%	10.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer A \| Maximum
Accounts Receivable
Concentration risk percentage			10.00%		10.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer B \| Maximum
Accounts Receivable
Concentration risk percentage			10.00%		10.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer C \| Maximum
Accounts Receivable
Concentration risk percentage			10.00%		10.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer D
Accounts Receivable
Concentration risk percentage			17.00%		11.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer E
Accounts Receivable
Concentration risk percentage					10.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer E \| Maximum
Accounts Receivable
Concentration risk percentage			10.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer F
Accounts Receivable
Concentration risk percentage					15.00%
Accounts Receivable, net \| Customer Concentration Risk \| Customer F \| Maximum
Accounts Receivable
Concentration risk percentage			10.00%

Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value
Total assets measured at fair value	$ 32,856	$ 13,369
Level 1
Fair Value
Total assets measured at fair value	32,856	13,369
Money Market Funds
Fair Value
Money market funds	32,856	13,369
Money Market Funds \| Level 1
Fair Value
Money market funds	$ 32,856	$ 13,369

Summary of Significant Accounting Policies - Revenue Recognition - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Accumulated deficit	$ (124,115)	$ (117,539)
Current assets:
Accounts receivable, net	5,097	4,041
Inventory	9,621	9,837
Total current assets	48,668	27,418
Total assets	52,334	31,437
Current liabilities:
Deferred income on shipments to distributors		1,720
Total current liabilities	15,215	12,375
Total liabilities	20,581	20,553
Stockholders' equity:
Accumulated deficit	(124,115)	(117,539)
Total liabilities and stockholders' equity	52,334	31,437
ASU 2014-09 \| Balances without the adoption of Topic 606
Summary of Significant Accounting Policies
Accumulated deficit	(126,743)
Current assets:
Accounts receivable, net	4,573
Inventory	9,668
Total current assets	48,191
Total assets	51,857
Current liabilities:
Deferred income on shipments to distributors	2,151
Total current liabilities	17,366
Total liabilities	22,732
Stockholders' equity:
Accumulated deficit	(126,743)
Total liabilities and stockholders' equity	51,857
ASU 2014-09 \| Adjustments
Summary of Significant Accounting Policies
Accumulated deficit	(2,628)	1,300
Current assets:
Accounts receivable, net	(524)
Inventory	47
Total current assets	(477)
Total assets	(477)
Current liabilities:
Deferred income on shipments to distributors	2,151
Total current liabilities	2,151
Total liabilities	2,151
Stockholders' equity:
Accumulated deficit	(2,628)	$ 1,300
Total liabilities and stockholders' equity	$ (477)

Summary of Significant Accounting Policies - Revenue Recognition - Condensed Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Summary of Significant Accounting Policies
Total revenue	$ 10,765		$ 25,618
Total cost of sales	5,459		10,357
Gross profit	5,306	$ 5,792	15,261	$ 10,009
Loss from operations	(6,509)	(4,789)	(7,619)	(10,664)
Net loss and comprehensive loss	$ (6,599)	$ (5,187)	$ (7,876)	$ (11,273)
Net loss per common share, basic and diluted	$ (0.40)	$ (0.42)	$ (0.50)	$ (0.91)
Product sales
Summary of Significant Accounting Policies
Total revenue	$ 9,449		$ 18,814
Licensing, royalty and other revenue
Summary of Significant Accounting Policies
Total revenue	1,316		6,804
ASU 2014-09 \| Balances without the adoption of Topic 606
Summary of Significant Accounting Policies
Total revenue	10,053		24,103
Total cost of sales	5,566		10,170
Gross profit	4,487		13,933
Loss from operations	(7,328)		(8,947)
Net loss and comprehensive loss	$ (7,418)		$ (9,204)
Net loss per common share, basic and diluted	$ (0.45)		$ (0.58)
ASU 2014-09 \| Adjustments
Summary of Significant Accounting Policies
Total revenue	$ (712)		$ (1,515)
Total cost of sales	107		(187)
Gross profit	(819)		(1,328)
Loss from operations	(819)		(1,328)
Net loss and comprehensive loss	$ (819)		$ (1,328)
Net loss per common share, basic and diluted	$ (0.05)		$ (0.08)
ASU 2014-09 \| Product sales \| Balances without the adoption of Topic 606
Summary of Significant Accounting Policies
Total revenue	$ 8,863		$ 17,396
ASU 2014-09 \| Product sales \| Adjustments
Summary of Significant Accounting Policies
Total revenue	(586)		(1,418)
ASU 2014-09 \| Licensing, royalty and other revenue \| Balances without the adoption of Topic 606
Summary of Significant Accounting Policies
Total revenue	1,190		6,707
ASU 2014-09 \| Licensing, royalty and other revenue \| Adjustments
Summary of Significant Accounting Policies
Total revenue	$ (126)		$ (97)

Summary of Significant Accounting Policies - Revenue Recognition - Condensed Statement of Cash flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Cash flows from operating activities
Net loss	$ (7,876)	$ (11,273)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable	(1,391)	(524)
Inventory	170	(1,584)
Deferred income on shipments to distributors	(39)	$ (237)
Deferred income on shipments to distributors			$ 1,720
ASU 2014-09 \| Balances without the adoption of Topic 606
Cash flows from operating activities
Net loss	(9,204)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable	(532)
Inventory	169
Deferred income on shipments to distributors	431
Deferred income on shipments to distributors	2,151
ASU 2014-09 \| Adjustments
Cash flows from operating activities
Net loss	(1,328)
Adjustments to reconcile net loss to net cash used in operating activities:
Accounts receivable	859
Inventory	(1)
Deferred income on shipments to distributors	470
Deferred income on shipments to distributors	$ 2,151

Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue
Revenue	$ 10,765	$ 25,618
Non-distributor
Disaggregation of Revenue
Revenue	2,379	9,087
Distributor
Disaggregation of Revenue
Revenue	$ 8,386	$ 16,531

Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue
Revenue	$ 10,765	$ 25,618
Point in time
Disaggregation of Revenue
Revenue	9,644	24,116
Over time
Disaggregation of Revenue
Revenue	$ 1,121	$ 1,502

Revenue - Disaggregated by Type (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Disaggregation of Revenue
Revenue	$ 10,765	$ 25,618
Product sales
Disaggregation of Revenue
Revenue	9,449	18,814
License fee
Disaggregation of Revenue
Revenue		5,000
Royalties
Disaggregation of Revenue
Revenue	195	302
Other revenue
Disaggregation of Revenue
Revenue	$ 1,121	$ 1,502

Revenue - Disaggregated by Geographic Region (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($) region	Jun. 30, 2018 USD ($) region
Disaggregation of Revenue
Number of primary geographic regions \| region	3	3
Revenue	$ 10,765	$ 25,618
North America
Disaggregation of Revenue
Revenue	2,379	4,110
EMEA
Disaggregation of Revenue
Revenue	2,096	5,147
APAC
Disaggregation of Revenue
Revenue	$ 6,290	$ 16,361

Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory
Raw materials	$ 92	$ 682
Work-in-process	3,766	4,517
Finished goods	5,763	4,638
Total inventory	$ 9,621	$ 9,837

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued liabilities
Accrued payroll-related expenses	$ 1,267	$ 1,331
Accrued joint development agreement expenses	3,446	749
Accrued inventory	690	897
Deferred rent	322	230
Accrued sales commissions payable to sales representatives	133	75
Other	481	466
Total accrued liabilities	$ 6,339	$ 3,748

Commitments and Commitments (Details)	1 Months Ended	6 Months Ended	12 Months Ended
Commitments and Commitments (Details)	Apr. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($) ft²
Commitments and Contingencies
Deferred rent		$ 322,000	$ 230,000
Previous Headquarters
Commitments and Contingencies
Area of operating lease (in sq feet) \| ft²			27,974
Write off of unamortized deferred rent	$ 18,000
Lease termination fee	$ 43,000
Arizona manufacturing facility
Commitments and Contingencies
Period to cancel lease upon notice		24 months

Debt - 2017 Facility - Additional Information (Details) - 2017 Credit Facility $ in Millions	May 04, 2017 USD ($) payment	Jun. 30, 2018	Dec. 31, 2017 payment
Debt
Loan agreement amount \| $	$ 12.0
Number of interest and principal payments			24
End-of-term fee (as a percent)	6.00%
Minimum
Debt
Number of interest and principal payments	24
Maximum
Debt
Number of interest and principal payments	36
Prime Rate
Debt
Interest rate, negative basis spread percentage	0.75%
Interest rate		4.25%

Debt - Carrying Value (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt
Net carrying value of debt, Current Portion	$ 5,993	$ 3,987
Net carrying value of debt, Long-term debt	5,366	8,178
2017 Credit Facility
Debt
Debt, including end of term fee, Current Portion	6,000	4,000
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Current Portion	(17)	(23)
Net carrying value of debt, Current Portion	5,983	3,977
Debt, including end of term fee, Long-term debt	5,720	8,720
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Long-term debt	(369)	(563)
Net carrying value of debt, Long-term debt	5,351	8,157
Debt, including end of term fee, Total	11,720	12,720
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Total	(386)	(586)
Net carrying value of debt, Total	$ 11,334	$ 12,134

Debt - Capital Lease Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt
Capital lease obligations future minimum lease payments	$ 25,000	$ 31,000
Property and equipment under capital leases	31,000	31,000
Capital lease obligations accumulated depreciation and amortization	$ 7,000	$ 2,000

Stockholders' Equity - (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Feb. 28, 2018 USD ($) $ / shares shares
Sale of common stock
Number of shares sold \| shares	3,772,447
Offering price \| $ / shares	$ 7.00
Proceeds from stock offering, net of offering costs	$ 24.6
Offering costs	$ 1.8

Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares
Stock-based compensation
Options Available for Grant, Outstanding, Beginning balance	83,929
Options Available for Grant, Options authorized	1,084,516
Options Available for Grant, RSUs granted	(60,450)
Options Available for Grant, RSUs cancelled/forfeited	1,900
Options Available for Grant, Options granted	(310,715)
Options Available for Grant, Options cancelled/forfeited	28,834.00
Options Available for Grant, Outstanding, Ending balance	826,988	83,929
Number of Options, Outstanding, Beginning balance	1,593,195
Number of Options, Options granted	310,715
Number of Options, Options exercised	(190,800)
Number of Options, Options cancelled/forfeited	(30,707)
Number of Options, Outstanding, Ending balance	1,696,187	1,593,195
Number of Options, exercisable	746,702
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance \| $ / shares	$ 8.88
Weighted - Average Exercise Price Per Share, Options granted \| $ / shares	8.79
Weighted - Average Exercise Price Per Share, Options exercised \| $ / shares	4.69
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited \| $ / shares	7.97
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance \| $ / shares	7.28	$ 8.88
Weighted - Average Exercise Price Per Share, Options exercisable \| $ / shares	$ 5.85
Weighted - Average Remaining Contractual Life, Options outstanding	7 years 2 months 12 days	6 years 7 months 6 days
Weighted - Average Remaining Contractual Life, Options exercisable	4 years 9 months 18 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 3,204	$ 1,997
Aggregate Intrinsic Value, Options exercised \| $	815
Aggregate Intrinsic Value, Options exercisable \| $	$ 2,355
Prior period adjustment
Stock-based compensation
Options Available for Grant, Outstanding, Beginning balance	(1,026)
Options Available for Grant, Outstanding, Ending balance		(1,026)
Number of Options, Outstanding, Beginning balance	13,784
Number of Options, Outstanding, Ending balance		13,784
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance \| $ / shares	$ 4.54
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance \| $ / shares		$ 4.54

Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2018	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Share-based Compensation
Shares available for future issuance (in shares)			826,988		826,988		83,929
Number of stock options granted (in shares)					310,715
Options remained outstanding			1,696,187		1,696,187		1,593,195
Total grant date fair value of options vested			$ 545,000	$ 797,000	$ 922,000	$ 904,000
Unrecognized compensation expense, weighted-average period expected to be recognized					2 years 10 months 24 days
Weighted-average exercise price (per share)	$ 7.64	$ 16.25	$ 7.28		$ 7.28		$ 8.88
Stock-based compensation expense			$ 717,000	$ 408,000	$ 1,342,000	$ 839,000
Immediate vesting
Share-based Compensation
Incremental modification value	$ 63,000
Remaining vesting
Share-based Compensation
Incremental modification value	$ 537,000
Chief Executive Officer
Share-based Compensation
Number of vested and unvested stock option award modified	400,000
Incremental modification value	$ 600,000
Employees
Share-based Compensation
Weighted-average grant date fair value of options granted			$ 4.14	$ 5.25	$ 4.56	$ 4.67
Stock-based compensation expense			$ 688,000,000	$ 319,000,000	$ 1,300,000	$ 740,000
Non-Employee
Share-based Compensation
Number of stock options granted (in shares)			0	0	7,200	0
Options remained outstanding			45,072		45,072
Weighted-average exercise price (per share)			$ 9.15		$ 9.15
Stock-based compensation expense			$ 29,000	$ 89,000	$ 44,000	$ 99,000
2016 Employee Stock Purchase Plan
Share-based Compensation
Increase in number of shares available for grant		128,172
Shares available for future issuance (in shares)			291,659		291,659
Number of shares issued (in shares)			20,057	17,924	20,057	17,924
Value of share issued			$ 137,000		$ 137,000	$ 122,000

Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Weighted Average Exercise Price Per Share
Unrecognized stock-based compensation expense \| $	$ 5,900
Unrecognized compensation expense, weighted-average period expected to be recognized	2 years 10 months 24 days
RSU
Number of Restricted Stock Units
Balance, beginning of period \| shares	30,680
Granted \| shares	60,450
Cancelled/forfeited \| shares	(1,900)
Balance, end of period \| shares	89,230
Weighted Average Exercise Price Per Share
Balance, beginning of period (price per share) \| $ / shares	$ 10.55
Granted (price per share) \| $ / shares	8.66
Cancelled/forfeited \| $ / shares	8.39
Balance, end of period (price per share) \| $ / shares	$ 9.32
2016 Employee Incentive Plan \| RSU
Weighted Average Exercise Price Per Share
Unrecognized stock-based compensation expense \| $	$ 625,000
Unrecognized compensation expense, weighted-average period expected to be recognized	2 years 10 months 24 days

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share-based compensation expense
Stock-based compensation expense	$ 717	$ 408	$ 1,342	$ 839
Unrecognized stock-based compensation expense	5,900		$ 5,900
Unrecognized compensation expense, weighted-average period expected to be recognized			2 years 10 months 24 days
Research and Development
Share-based compensation expense
Stock-based compensation expense	138	73	$ 246	245
General and Administrative
Share-based compensation expense
Stock-based compensation expense	466	213	899	439
Sales and Marketing
Share-based compensation expense
Stock-based compensation expense	$ 113	$ 122	$ 197	$ 155

Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Options to Purchase Common Stock
Share-based Compensation
Expected volatility, Minimum	51.90%	47.20%
Expected volatility, Maximum	53.10%	59.30%
Risk-free interest rate, Minimum	2.60%	2.00%
Risk-free interest rate, Maximum	2.90%	2.10%
Minimum \| Options to Purchase Common Stock
Share-based Compensation
Expected term (in years)	5 years 8 months 12 days	5 years 9 months 18 days
Maximum \| Options to Purchase Common Stock
Share-based Compensation
Expected term (in years)	6 years 1 month 6 days	6 years 1 month 6 days
2016 Employee Stock Purchase Plan
Share-based Compensation
Expected volatility, Minimum	59.50%
Expected volatility, Maximum	87.80%
Expected volatility		49.50%
Risk-free interest rate, Minimum	0.90%
Risk-free interest rate, Maximum	2.10%
Risk-free interest rate		0.50%
Expected term (in years)		6 months
2016 Employee Stock Purchase Plan \| Minimum
Share-based Compensation
Expected term (in years)	6 months
2016 Employee Stock Purchase Plan \| Maximum
Share-based Compensation
Expected term (in years)	1 year

Joint Development Agreement (Details) - USD ($)				1 Months Ended			3 Months Ended		6 Months Ended		10 Months Ended
Joint Development Agreement (Details) - USD ($)	Aug. 21, 2016	Oct. 21, 2014	Oct. 17, 2014	Jun. 30, 2018	Feb. 28, 2018	Aug. 31, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2017	Dec. 31, 2017
Joint development agreement
Research and development expense							$ 6,773,000	$ 6,427,000	$ 13,253,000	$ 12,816,000
Number of shares sold					3,772,447
Non-cash compensation expense (income)									462,000	716,000
Joint Development Agreement \| Global Foundries
Joint development agreement
Agreement Term			4 years
Period to Repurchase Shares		1 year
Period of possession of exclusive right to manufacture after qualification of device			3 years
Period of possession of exclusive right to manufacture after completion of device development work			4 years
Research and development expense							2,300,000	1,400,000	4,400,000	3,200,000
Milestone payment due per the agreement				$ 1,000,000		$ 1,600,000
Milestone revenue							$ 500,000	650,000	$ 500,000	1,200,000
Joint Development Agreement \| Global Foundries \| Common Stock
Joint development agreement
Number of shares sold		461,538
Shares sold, price per share		$ 0.00026
Number of shares of common stock, vested	211,538										211,538
Number of shares of common stock, unvested				38,462			38,462		38,462
Estimated fair value of common stock per share				$ 8.92			$ 8.92		$ 8.92			$ 7.50
Joint Development Agreement \| Global Foundries \| Research and Development
Joint development agreement
Non-cash compensation expense (income)							$ 225,000	$ 461,000	$ 462,000	$ 716,000
Joint Development Agreement \| Global Foundries \| Series B Redeemable Convertible Preferred Stock
Joint development agreement
Number of shares sold		192,307
Shares sold, price per share		$ 26.00

Net Loss Per Common Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net loss	$ (6,599)	$ (5,187)	$ (7,876)	$ (11,273)
Denominator:
Weighted-average common shares outstanding	16,689,677	12,583,325	15,786,043	12,541,245
Less: weighted-average unvested common shares subjected to repurchase	(54,416)	(169,801)	(68,795)	(184,179)
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted	16,635,261	12,413,524	15,717,248	12,357,066
Net loss per common share, basic and diluted	$ (0.40)	$ (0.42)	$ (0.50)	$ (0.91)

Net Loss Per Common Share - Schedule of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Common Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	1,851,569	1,450,201	1,851,569	1,450,201
Options to Purchase Common Stock
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	1,696,187	1,268,665	1,696,187	1,268,665
RSU
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	89,230		89,230
Common Stock Subject to Repurchase
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	38,462	153,846	38,462	153,846
Common Stock Warrants
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	27,690	27,690	27,690	27,690

Subsequent Events - (Details) $ / shares in Units, $ in Millions	1 Months Ended
	Jul. 31, 2018 payment $ / shares shares	Aug. 08, 2018 USD ($)	Dec. 31, 2017 payment	May 04, 2017 payment
Subsequent Events \| Arizona manufacturing facility
Subsequent events
Total minimum lease payments \| $		$ 2.4
2017 Credit Facility
Subsequent events
Number of interest and principal payments			24
End-of-term fee (as a percent)				6.00%
2017 Credit Facility \| Minimum
Subsequent events
Number of interest and principal payments				24
2017 Credit Facility \| Maximum
Subsequent events
Number of interest and principal payments				36
2017 Credit Facility \| Subsequent Events
Subsequent events
End-of-term fee (as a percent)	7.00%
Number of shares the warrant can be converted to \| shares	9,375
Warrant exercise price \| $ / shares	$ 8.91
Warrant exercise expiration period	5 years
2017 Credit Facility \| Subsequent Events \| Minimum
Subsequent events
Number of interest and principal payments	24
2017 Credit Facility \| Subsequent Events \| Maximum
Subsequent events
Number of interest and principal payments	36
SVB Credit Facility \| Subsequent Events
Subsequent events
Number of shares the warrant can be converted to that was cancelled \| shares	9,229