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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2019	Mar. 06, 2020	Jun. 28, 2019
Document And Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Registrant Name	EVERSPIN TECHNOLOGIES INC
Entity Central Index Key	0001438423
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 87.3
Entity Common Stock, Shares Outstanding		18,627,421
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 14,487	$ 23,379
Accounts receivable, net	5,799	7,522
Inventory	7,863	9,097
Prepaid expenses and other current assets	539	688
Total current assets	28,688	40,686
Property and equipment, net	3,479	4,286
Right-of-use assets	3,132
Other assets	73	73
Total assets	35,372	45,045
Current liabilities:
Accounts payable	2,873	2,637
Accrued liabilities	2,727	5,001
Current portion of long-term debt	670	5,977
Operating lease liabilities	1,582
Other liabilities	42
Total current liabilities	7,894	13,615
Long-term debt, net of current portion	7,149	6,509
Operating lease liabilities, net of current portion	1,840
Total liabilities	16,883	20,124
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 December 31, 2019 and December 31, 2018
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 18,081,753 and 17,095,456 shares issued and outstanding as of December 31, 2019 and December 31, 2018	2	2
Additional paid-in capital	167,149	158,912
Accumulated deficit	(148,662)	(133,993)
Total stockholders’ equity	18,489	24,921
Total liabilities and stockholders’ equity	$ 35,372	$ 45,045

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
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	18,081,753	17,095,456
Common stock, shares outstanding	18,081,753	17,095,456

Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Total revenue	$ 37,503	$ 49,417
Cost of sales	19,172	24,083
Gross profit	18,331	25,334
Operating expenses:
Research and development	14,183	23,637
General and administrative	12,414	12,551
Sales and marketing	5,364	6,467
Restructuring	782
Total operating expenses	32,743	42,655
Loss from operations	(14,412)	(17,321)
Interest expense	(747)	(890)
Other income, net	490	457
Net loss and comprehensive loss	$ (14,669)	$ (17,754)
Net loss per common share, basic and diluted	$ (0.85)	$ (1.08)
Weighted-average shares used to compute net loss per common share, basic and diluted	17,317,042	16,372,638
Operating expenses includes stock-based compensation as follows:
Total stock-based compensation	$ 3,554	$ 2,668
Research and development
Operating expenses includes stock-based compensation as follows:
Total stock-based compensation	736	492
General and administrative
Operating expenses includes stock-based compensation as follows:
Total stock-based compensation	2,460	1,811
Sales and marketing
Operating expenses includes stock-based compensation as follows:
Total stock-based compensation	358	365
Product sales
Total revenue	34,595	39,514
Licensing, royalty and other revenue
Total revenue	$ 2,908	$ 9,903

Statements of Stockholders' Equity - USD ($) $ in Thousands	At-the-Market Sales Agreement Common Stock	At-the-Market Sales Agreement Additional Paid-In Capital	At-the-Market Sales Agreement	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2017				$ 1	$ 128,422	$ (117,539)	$ 10,884
Balance (in shares) at Dec. 31, 2017				12,817,201
Increase (Decrease) in Stockholders' Equity
Adjustment to opening balance for adoption of new accounting standard						1,300	1,300
Issuance of common stock, net of issuance costs				$ 1	24,523		24,524
Issuance of common stock (in shares)				3,772,447
Issuance of common stock under stock incentive plans					2,503		2,503
Issuance of common stock under stock incentive plans (in shares)				505,808
Issuance of warrant					43		43
Compensation expense related to vesting of common stock issued to GLOBALFOUNDRIES					753		753
Stock-based compensation expense					2,668		2,668
Net loss						(17,754)	(17,754)
Balance at Dec. 31, 2018				$ 2	158,912	(133,993)	24,921
Balance (in shares) at Dec. 31, 2018				17,095,456
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net of issuance costs		$ 4,734	$ 4,734
Issuance of common stock (in shares)	888,987
Issuance of common stock under stock incentive plans					282		282
Issuance of common stock under stock incentive plans (in shares)				97,310
Modification of warrant in conjunction with 2019 Credit Facility					(19)		(19)
Stock-based compensation expense					3,240		3,240
Net loss						(14,669)	(14,669)
Balance at Dec. 31, 2019				$ 2	$ 167,149	$ (148,662)	$ 18,489
Balance (in shares) at Dec. 31, 2019				18,081,753

Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statement of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net loss	$ (14,669)	$ (17,754)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,694	1,450
Loss on disposal of property and equipment	20	19
Stock-based compensation	3,554	2,668
Non-cash gain on warrant revaluation	(3)
Non-cash interest expense	290	375
Compensation expense related to vesting of common stock to GLOBALFOUNDRIES		753
Changes in operating assets and liabilities:
Accounts receivable	1,723	(3,816)
Inventory	1,234	694
Prepaid expenses and other current assets	149	(98)
Accounts payable	202	(178)
Accrued liabilities	(2,210)	1,253
Operating lease liabilities	(100)
Shipping term reversal		(39)
Net cash used in operating activities	(8,116)	(14,673)
Cash flows from investing activities
Purchases of property and equipment	(861)	(1,914)
Net cash used in investing activities	(861)	(1,914)
Cash flows from financing activities
Proceeds from the issuance of common stock, net of offering costs		24,524
Proceeds from debt		1,000
Payments on debt	(4,840)	(1,000)
Payments of debt issuance costs	(80)
Payments on finance lease obligation	(11)	(11)
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan	282	2,503
Proceeds from issuance of common stock in at-the-market offering, net of issuance costs	4,734
Net cash provided by financing activities	85	27,016
Net (decrease) increase in cash and cash equivalents	(8,892)	10,429
Cash and cash equivalents at beginning of period	23,379	12,950
Cash and cash equivalents at end of period	14,487	23,379
Supplementary cash flow information:
Interest paid	480	504
Cash paid for taxes	48	30
Operating cash flows paid for operating leases	1,693
Financing cash flows paid for finance leases	11
Non-cash investing and financing activities:
Right-of-use assets obtained in exchange for new operating leases	23
Increase of right-of-use asset and lease liability due to lease modification	895
Purchase of property and equipment in accounts payable and accrued liabilities	57	11
Modification of warrant	$ 36
Issuance of warrant with debt		$ 43

Organization and Operations	12 Months Ended
Organization and Operations	Dec. 31, 2019
Organization and Operations
Organization and Operations	1. Organization and Operations Everspin Technologies, Inc. (the Company) was incorporated in Delaware on May 16, 2008. The Company’s magnetoresistive random access memory (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, 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 December 31, 2019, coupled with its anticipated growth and sales levels will be sufficient to meet its anticipated cash requirements for at least the next 12 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

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of the financial statements in conformity with U.S. 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 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, product warranty reserves, income taxes, and stock-based compensation. The Company believes its estimates and assumptions are reasonable; however, actual results may differ from the Company’s estimates.

Segments

The Company’s chief operating decision maker is its Chief Executive Officer who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the entire Company. As a result, the Company has single operating and reportable segment.

Cash and Cash Equivalents

The Company considers all highly liquid, short-term investments with maturity dates of 90 days or less at the date of purchase to be cash equivalents. The Company’s cash equivalents consist solely of money market funds.

Accounts Receivable

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. The Company has no experience of uncollectible amounts, and therefore there was no allowance for doubtful accounts at December 31, 2019 and 2018. Allowances would be 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 would be charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

The Company 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. Returns are processed as credits on future purchases, as a result, 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 December 31, 2019 and 2018, the allowance for product returns and price concessions was $231,000 and $713,000, respectively.

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


	December 31,
	2019		2018
Trade accounts receivable	$	5,454	$	7,297
Unbilled accounts receivable		576		938
Allowance for product returns and price concessions		(231)		(713)
Accounts receivable, net	$	5,799	$	7,522

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				Accounts Receivable
	Year Ended December 31,				December 31,
Customers	2019		2018		2019		2018
Customer A	21	%	*		41	%	23	%
Customer B	12	%	*		*		*
Customer C	12	%	*		*		*
Customer D	10	%	13	%	*		*
Customer E	*		*		*		11	%
Customer F	*		*		11	%	*
Customer G	*		11	%	*		*
Customer H	*		10	%	*		*
Customer I	*		*		*		21	%
Customer J	*		*		*		11	%

*Less than 10%

Inventory

Inventory is valued at the lower of cost, using the first-in, first-out or specific identification method, or market. The carrying value of inventory is adjusted for excess and obsolete inventory based on inventory age, shipment history and the forecast of demand over a specific future period. At the point of loss recognition, a new lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in that new cost basis.

Fair Value of Financial Instruments

Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. The framework for measuring fair value provides a three-tier hierarchy prioritizing inputs to valuation techniques used in measuring fair value as follows:

Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;

Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and

Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.

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 December 31, 2019, 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 and a Level 3 liability. 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 Company’s Level 3 liability consists of a warrant issued in connection with the 2019 Credit Facility (Note 6). The change in the fair value of the warrant during the year ended December 31, 2019 was immaterial.

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


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	12,367	$	—	$	—	$	12,367
Total assets measured at fair value	$	12,367	$	—	$	—	$	12,367

Liabilities:
Warrant liability	$	—	$	—	$	33	$	33
Total liabilities measured at fair value	$	—	$	—	$	33	$	33


	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	23,478	$	—	$	—	$	23,478
Total assets measured at fair value	$	23,478	$	—	$	—	$	23,478

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation begins at the time the asset is placed in service. Maintenance and repairs are charged to operations as incurred. Depreciation is computed using the straight-line method over the following estimated useful lives of the assets:


	Useful Lives
Computer and network equipment		2 years
Manufacturing equipment		2 – 7 years
Furniture and fixtures		7 years
Software		3 years

Costs incurred to develop software for internal-use during the application development phase are capitalized and amortized over such software’s estimated useful life. Costs related to the design or maintenance of internal-use software are included in operating expenses as incurred. During 2019 and 2018, we capitalized $238,000 and $356,000, respectively of such costs to property and equipment. Leasehold improvements are amortized over the shorter of the lease term or useful life. Upon sale or retirement of assets, the cost and related accumulated depreciation are removed from the balance sheet and the resulting gain or loss is reflected in operations. Amortization expense of assets acquired through finance leases is included in the statements of operations and comprehensive loss.

Impairment of Long-lived Assets

The Company evaluates its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate over its remaining life. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. There have been no impairments of the Company’s long-lived assets during any of the periods presented.

Leases

The Company leases office, lab, manufacturing space and equipment in various locations with initial lease terms of up to five years. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. The terms of these leases also include renewal options at the election of the Company to renew or extend the lease for a range of an additional two to five years. These optional periods have not been considered in the determination of the right-of-use-assets (ROU) or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

The Company determines if an arrangement is a lease at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The classification of the Company's leases as operating or finance leases along with the initial measurement and recognition of the associated ROU assets and lease liabilities is performed at the lease commencement date. The measurement of lease liabilities is based on the present value of future lease payments over the lease term. The Company’s uses its incremental borrowing rate, based on the information available at commencement date, to determine the present value of lease payments when its leases do not provide an implicit rate. The Company uses the implicit rate when readily determinable. The ROU asset is based on the measurement of the lease liability, includes any lease payments made prior to or on lease commencement and excludes lease incentives and initial direct costs incurred, as applicable. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term. Amortization expense for ROU assets associated with finance leases is recognized on a straight-line basis over the shorter of the useful life of the asset or the lease term and interest expense associated with finance leases is recognized on the balance of the lease liability using the effective interest method based on the estimated incremental borrowing rate.

The Company has lease agreements with lease and non-lease components. The Company has elected to not separate lease and non-lease components for any leases involving real estate and office equipment classes of assets and, as a result, accounts for the lease and non-lease components as a single lease component. The Company has elected to separate lease and non-lease components for any leases involving manufacturing facility classes of assets. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to leases with terms of 12 months or less (short-term leases) for all classes of assets. As of December 31, 2019, the Company did not have any short-term leases.

Operating leases are included in right-of-use assets, lease liabilities, and lease liabilities, net of current portion in the Company’s balance sheet. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in the Company’s balance sheet.

Debt Issuance Costs

The Company defers and amortizes issuance costs, underwriting fees, end of term payments, and related expenses incurred in connection with the issuance of debt instruments using the effective interest method over the terms of the respective instruments. Debt issuance costs are reflected as a direct reduction of the carrying amount of the related debt liability.

Revenue Recognition

The Company recognizes revenue when a customer obtains control of the promised products or services, in an amount that reflects the consideration 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.

Upon the transfer of control, generally at shipment, 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.

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). The Company will record an unbilled receivable (within accounts receivable, net) for the portion of sales-based royalties that have been earned, but not invoiced at the end of each reporting period.

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.

Product Warranty

The Company generally sells products with a limited warranty of product quality and a limited indemnification of customers against intellectual property infringement claims related to the Company’s products. The Company accrues for known warranty and indemnification issues if a loss is probable and can be reasonably estimated, and accrues for estimated losses incurred for unidentified issues based on historical experience. A warranty liability was not recorded at December 31, 2019 and 2018, as the estimated future warranty costs were not material based on the Company’s historical experience.

Research and Development

Research and development expenses are incurred in support of internal development programs or as part of the Company’s joint development agreement with GLOBALFOUNDRIES and joint collaboration agreement with Silterra Malaysia Sdn. Bhd. (see Note 10). Research and development expenses include personnel-related costs (including stock-based compensation), circuit design costs, purchases of materials and laboratory supplies, fabrication and packaging of experimental integrated circuit products, depreciation of research and development related capital equipment and overhead, and are expensed as incurred.

Stock-based Compensation

Stock-based compensation arrangements include stock option grants and restricted stock unit (RSU) awards under the Company’s equity incentive plans, as well as shares issued under the Company’s Employee Stock Purchase Plan (ESPP), through which employees may purchase the Company’s common stock at a discount to the market price.

The Company measures its stock option grants based on the estimated fair value of the options as of the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized over the requisite service period using the straight-line method. The Company has made an accounting policy election to account for forfeitures as they occur, rather than estimating expected forfeitures at the time of the grant.

Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits, as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. The Company does not have any unrecognized tax benefits.

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.

Recently Adopted Pronouncements

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016 02, Leases (Topic 842), which establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding ROU asset for leases with a lease-term of more than 12 months. This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2018. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 Leases and ASU No. 2018-11, Leases (Topic 842) Targeted Improvements. ASU 2018-10 clarifies how to apply certain aspects of ASU 2016-02. The Company adopted this standard on January 1, 2019, using the modified retrospective method. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

Topic 842 permits the application of certain practical expedients, of which the Company elected the “package of three” expedient, that eliminated the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases.

Upon adoption of Topic 842, on January 1, 2019, the Company recorded an operating lease ROU asset of $3.6 million, operating lease liabilities of $4.0 million, and derecognized the deferred rent liability of $390,000. The accounting for the Company’s finance leases remained substantially unchanged.

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 adopted this standard on January 1, 2019 and the impact of its adoption on the Company’s financial statements was not material.

Recently Issued Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740). Simplifying the Accounting for Income Taxes. The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The adoption of ASU 2019-12 is not expected to have a material effect on the Company’s consolidated financial statements and related disclosures

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. As the Company is a smaller reporting company, ASU 2016-13 is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2022, and requires a cumulative effect adjustment to the balance sheet as of the beginning of the first reporting period in which the guidance is effective. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements Financial Instruments-Credit Losses (Topic 326). The new ASU provides narrow-scope amendments to help apply ASU No. 2016-13. The Company is evaluating the impact of the adoption of ASU 2016-13 on its financial statements.

Revenue

12 Months Ended

Dec. 31, 2019

Revenue.

Revenue

3. Revenue

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


	Year Ended December 31,
	2019		2018
Distributor	$	24,724	$	35,126
Non-distributor		12,779		14,291
Total revenue	$	37,503	$	49,417

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


	Year Ended December 31,
	2019		2018
Point in time	$	35,665	$	45,102
Over time		1,838		4,315
Total revenue	$	37,503	$	49,417

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


	Year Ended December 31,
	2019		2018
Product sales	$	34,595	$	39,514
License fees		—		5,000
Royalties		1,070		588
Other revenue		1,838		4,315
Total revenue	$	37,503	$	49,417

The Company recognizes revenue in three 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):


	Year Ended December 31,
	2019		2018
North America	$	8,690	$	9,124
EMEA		8,720		11,175
APJ		20,093		29,118
Total revenue	$	37,503	$	49,417

Balance Sheet Components

12 Months Ended

Dec. 31, 2019

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Inventory

Inventory consisted of the following (in thousands):


	December 31,
	2019		2018
Raw materials	$	119	$	288
Work-in-process		6,329		6,759
Finished goods		1,415		2,050
Total inventory	$	7,863	$	9,097

Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2019		2018
Manufacturing equipment	$	12,228	$	11,723
Computer and network equipment		877		820
Furniture and fixtures		112		110
Software		925		680
Leasehold improvements		1,444		1,432
Total property and equipment, gross		15,586		14,765
Less: accumulated depreciation		(12,107)		(10,479)
Total property and equipment, net	$	3,479	$	4,286

Depreciation and amortization expense during the years ended December 31, 2019 and 2018 was $1.7 million and $1.5 million, respectively.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):


	December 31,
	2019		2018
Accrued payroll-related expenses	$	1,236	$	1,558
Accrued joint development agreement expenses		170		661
Accrued inventory		87		1,678
Restructuring expenses		782		—
Deferred rent		—		390
Other		452		714
Total accrued liabilities	$	2,727	$	5,001

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

5. Commitments and Contingencies

Leases

Operating leases consist primarily of office space expiring at various dates through 2022.

The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands):


As of December 31, 2019	Amount
2020	$	1,736
2021		1,763
2022		133
Thereafter		—
Total undiscounted lease payments		3,632
Less: Present value adjustment		(210)
Total operating lease liabilities		3,422
Less: Current portion of operating lease liabilities		(1,582)
Total operating lease liabilities, net of current portion	$	1,840

Other information related to the Company's operating lease liabilities was as follows:


As of December 31, 2019
Weighted-average remaining lease term (years)	2.06
Weighted-average discount rate	6.00	%

Lease costs for the Company’s operating leases were $1.6 million and $1.6 million for the years ended December 31, 2019 and 2018, respectively. Variable lease payments for operating leases were immaterial for the years ended December 31, 2019 and 2018. Lease costs for the Company’s finance lease were immaterial for the years ended December 31, 2019 and 2018.

Legal Proceedings

From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Management is currently not aware of any matters that it expects will have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Indemnifications

In the ordinary course of business, the Company enters into agreements that may include indemnification provisions. Pursuant to such agreements, the Company may indemnify, hold harmless and defend an indemnified party for losses suffered or incurred by the indemnified party. Some of the provisions will limit losses to those arising from third party actions. In some cases, the indemnification will continue after the termination of the agreement. The maximum potential amount of future payments the Company could be required to make under these provisions is not determinable. The Company has never incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. The Company has also entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers to the fullest extent permitted by Delaware corporate law. The Company currently has directors’ and officers’ insurance.

Debt

12 Months Ended

Dec. 31, 2019

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 provided for interest at a floating rate equal to the prime rate minus 0.75%. The term loan provided for a period of interest-only payments through April 30, 2018, followed by fixed principal and interest payments based on a 24-month amortization schedule. 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.

On July 6, 2018, the Company entered into the First Amendment to the 2017 Credit Facility (the First Amendment). The First Amendment extended the period of interest-only payments through December 31, 2018, followed by fixed principal and interest payments based on either a 24-month or a 36-month amortization schedule if the Company achieves certain milestones. The Company determined it would not meet the milestones, therefore the 2017 Credit Facility was based on a 24-month amortization schedule and would mature in December 2020. The 2017 Credit Facility provided for interest at a floating rate equal to the prime rate minus 0.75%. The terms of the First Amendment included the refund of $1.0 million in principal payments previously made by the Company. 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. The additional payment is was being accreted using the effective interest method.

In January 2019 and June 2019, the Company entered into the Second Amendment and the Third Amendment to the 2017 Credit Facility, respectively, which primarily modified the financial covenants under the 2017 Credit Facility.

The Company was permitted to make voluntary prepayments of the 2017 Credit Facility with a prepayment fee, calculated as of the effective date of the First Amendment, equal to (i) $240,000 during the first 12 months and (ii) $120,000 if prepaid in months 13-24. The Company was required to make mandatory prepayments of the outstanding loan upon the acceleration by lender following the occurrence of an event of default, along with a payment of the end of term fee, the prepayment fee and any other obligations that are due and payable at the time of prepayment. In the event of default, the interest rate in effect would increase by 5.0% per annum.

2019 Credit Facility

In August 2019, the Company executed an Amended and Restated Loan and Security Agreement (the 2019 Credit Facility), which amended and restated the 2017 Credit Facility, providing for a formula revolving line of credit (Line of Credit) and a term loan (2019 Term Loan) with Silicon Valley Bank to refinance in full the outstanding principal balance of $8.0 million under the 2017 Credit Facility. In August 2019, the Company paid the final payment of $0.8 million, which was due upon the refinancing of the 2017 Credit Facility.

The Line of Credit allows for a maximum draw of $5.0 million, subject to a formula borrowing base, has a two-year term and bears interest at a floating rate equal to the Wall Street Journal (WSJ) prime rate plus 1.5%, per annum, subject to a floor of 6.75%. As of December 31, 2019, the interest rate was 6.75%. The Line of Credit provides for a commitment fee of 1.6% of the maximum availability of the Line of Credit, which was paid in August 2019 upon closing, and was accounted for as a debt discount. The Line of Credit also provides for a termination fee equal to 1% of the maximum availability under the Line of Credit, which is due in case of a termination of the Line of Credit prior to the scheduled maturity date, and an unused facility fee equal to 0.125% per annum of the average unused portion of the Line of Credit, which is expensed as incurred. At execution, $2.0 million from the Line of Credit was used to refinance a portion of the outstanding balance of the 2017 Credit Facility, and $3.0 million remains available under the Line of Credit, subject to borrowing base availability. As of December 31, 2019, the effective interest rate under the Line of Credit was 10.57% and the outstanding balance was $2.0 million.

The 2019 Term Loan provides for a $6.0 million term loan, which was used to refinance the remaining balance of the 2017 Credit Facility. The 2019 Term Loan has a term of 42 months, and a 12-month interest only period followed by 30 months of equal principal payments, plus accrued interest. The 2019 Term Loan bears interest at a floating rate equal to the WSJ prime rate minus 0.75%, subject to a floor of 4.75%. As of December 31, 2019, the interest rate was 4.75%. A final payment of 7% of the original principal amount of the 2019 Term Loan must be made when the 2019 Term Loan is prepaid or repaid, whether at maturity or as a result of a prepayment or acceleration or otherwise. The additional payment, which is accounted for as a debt discount, is being accreted using the effective interest method. The 2019 Term Loan has a prepayment fee equal to 2% of the total commitment, which is due only if the 2019 Term Loan is prepaid prior to the scheduled maturity date for any reason. As of December 31, 2019, the effective interest rate under the 2019 Term Loan was 8.66%.

Collateral for the 2019 Credit Facility includes all of the Company’s assets except for intellectual property. The Company is required to comply with certain covenants under the 2019 Credit Facility, including requirements to maintain a minimum liquidity ratio, and restrictions on certain actions without the consent of the lender, such as limitations on its ability to engage in mergers or acquisitions, sell assets, 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 December 31, 2019. The 2019 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 December 31, 2019, management does not believe that it is probable that the clause will be triggered within the next 12 months, and therefore the term loan is classified as long-term.

The carrying value of the Company’s 2019 Credit Facility at December 31, 2019, was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Credit Facility	$	800	$	7,620	$	8,420
Unamortized debt discounts		(130)		(471)		(601)
Net carrying value	$	670	$	7,149	$	7,819

The carrying value of the Company’s 2017 Credit Facility at December 31, 2018, was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Credit Facility	$	6,000	$	6,840	$	12,840
Unamortized debt discounts		(33)		(341)		(374)
Net carrying value	$	5,967	$	6,499	$	12,466

The table below includes the principal repayments due under the 2019 Credit Facility as of December 31, 2019 (in thousands):




2020	$	800
2021		4,400
2022		2,400
2023		820
Total principal repayments	$	8,420

Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders’ Equity

Stockholders’ Equity

7. Stockholders’ Equity

Common Stock

Common stockholders are entitled to dividends if and when declared by the board of directors. As of December 31, 2019, no dividends on common stock had been declared by the board of directors.

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 $24.5 million, net of $1.9 million of underwriting discounts and commissions and other offering costs.

At-the-Market Sales Agreement

In August 2019, the Company entered into an Open Market Sale Agreement (the 2019 Sales Agreement) with Jefferies, LLC (Jefferies) for the offer and sale of shares of its common stock having an aggregate offering of up to $25.0 million from time to time through Jefferies, acting as the Company’s sales agent. The issuance and sale of these shares by the Company pursuant to the 2019 Sales Agreement are deemed an “at-the-market” offering under the Securities Act of 1933, as amended. Under the 2019 Sales Agreement, the Company agreed to pay Jefferies a commission of up to 3% of the gross proceeds of any sales made pursuant to the 2019 Sales Agreement. During the year ended December 31, 2019, the Company received net proceeds of $4.7 million after deducting commissions and expenses payable by the Company, from the sale of 888,987 shares of common stock pursuant to the 2019 Sales Agreement. As of December 31, 2019, the Company had an aggregate of $19.9 million available for future sales under the 2019 Sales Agreement.

Reserved Shares of Common Stock

The Company had reserved shares of common stock for future issuance as follows:


	December 31,
	2019	2018
Options issued and outstanding	1,931,903	1,475,299
Shares available for future option grants	638,227	764,145
RSUs subject to future vesting	211,962	93,560
Common stock warrants	27,836	27,836
Total	2,809,928	2,360,840

Warrants

In connection with a credit facility, Silicon Valley Bank held warrants to purchase 9,229 shares of the Company’s common stock at an exercise price of $26.00 per share. These warrants were cancelled when the Company entered into the Amended Credit Facility (see Note 6) and 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. The Company estimated the fair value of the warrant as $43,000 on the date of issuance using the Black-Scholes option pricing model. The warrant was recorded as a discount to the debt to be amortized into interest expense over the remaining term of the loan using the effective interest method.

In conjunction with entering into the 2019 Credit Facility, on August 5, 2019, the Company and SVB amended and restated the warrant issued to SVB in connection with the First Amendment, to add an option by SVB to put the warrant back to the Company for $50,000 upon expiration or a liquidity event, to be prorated if SVB exercises a portion of the warrant. The warrant expires on July 6, 2023. As of August 5, 2019, the warrant was classified as a liability and recorded at fair value within other liabilities in the Company’s balance sheet. Due to the put right, the warrant is subject to fair value remeasurement at each subsequent reporting date until the exercise or expiration of the warrant. The fair value of the warrant is estimated using a Black-Scholes valuation model. Any resulting change in the fair value of the warrant will be recorded as other income, net in the Company’s statement of operations and comprehensive loss. The fair value adjustment was not material in 2019.

In connection with the 2015 Credit Facility, Ares Venture Finance holds a warrant to purchase 18,461 shares of the Company’s common stock at an exercise price of $26.00 per share. The warrant can be exercised at any time and expires 10 years after the date of issuance.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2019

Stock-Based Compensation

Stock-Based Compensation

8. Stock-Based Compensation

2016 Employee Incentive Plan

The Company’s board of directors adopted the 2016 Equity Incentive Plan (the 2016 Plan) on April 25, 2016, which was subsequently approved on September 20, 2016 by the Company’s stockholders. The 2016 Plan became effective on October 7, 2016, the date the Company’s registration statement was declared effective by the SEC.

The Company’s 2016 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, and other forms of equity compensation to employees, directors and consultants. In addition, the Company’s 2016 Plan provides for the grant of performance cash awards to employees, directors and consultants.

The maximum number of shares of common stock that may be issued under the Company’s 2016 Plan is 500,000 subject to an automatic increase on January 1 of each year, beginning on January 1, 2017, and continuing through and including January 1, 2026, by 3% of the total number of shares of capital stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares determined by the Company’s board of directors.

2008 Employee Incentive Plan

The 2008 Equity Incentive Plan (the 2008 Plan) provided for the issuance of incentive stock options (ISO), nonqualified stock options, and other stock compensation awards. Under the terms of the 2008 Plan, the exercise price of an ISO shall be not less than 100% of the fair value of the stock at the date of grant, as determined by the board of directors, or in the case of certain ISOs, at 110% of the fair market value at the date of grant.

The term and vesting periods for options granted under the 2008 Plan were determined by the Company’s board of directors. Options granted generally vest over four years. Options must be exercised within a 10‑year period or sooner if so specified within the option agreement.

No further grants will be made under the Company’s 2008 Plan. However, any outstanding stock awards granted under the 2008 Plan will remain outstanding, subject to the terms of the Company’s 2008 Plan and the applicable stock award agreements, until such outstanding stock awards that are stock options are exercised or until they terminate or expire by their terms, or until such stock awards are fully settled, terminated or forfeited. At December 31, 2019, 386,554 options under the 2008 Plan remained outstanding.

Summary of Stock Option Activity

The following table summarizes the stock option and award activity for all grants under the 2008 Plan and 2016 Plan:


		Options Outstanding
			Weighted-		Weighted-
	Options and		Average		Average
	Awards		Exercise		Remaining	Aggregate
	Available for	Number of	Price Per		Contractual	Intrinsic
	Grant	Options	Share		Life (years)	Value
						(In thousands)
Balance—December 31, 2018	764,145	1,475,299	$	7.60	7.8	$	284
Authorized	512,864
RSUs granted	(183,402)
RSUs cancelled/forfeited	22,450
Options granted	(660,852)	660,852	$	6.58
Options exercised	—	(10,416)	$	4.69		$	24
Options cancelled/forfeited	183,022	(193,832)	$	8.57
Balance—December 31, 2019	638,227	1,931,903	$	7.17	6.5	$	188
Options exercisable—December 31, 2019		961,162	$	7.11	5.4	$	187

During the years ended December 31, 2019 and 2018, the Company granted options with a weighted-average grant date fair value of $4.06 and $4.45 per share, respectively.

The total fair value of options vested during the year was $2.3 million and $1.9 million, for the years ended December 31, 2019, and 2018, respectively.

2016 Employee Stock Purchase Plan

The Company’s board of directors adopted the 2016 Employee Stock Purchase Plan (the ESPP) on April 25, 2016, which was subsequently approved on September 20, 2016 by the Company’s stockholders. The Company had 396,000 shares available for issuance under the Company’s ESPP as of December 31, 2019. Employees purchased 44,344 shares for $232,000 during the year ended December 31, 2019 and 42,327 shares for $266,000 during the year ended December 31, 2018.

The following table summarizes the assumptions used in the Black-Scholes option-pricing model to determine fair value of the Company’s common shares issued under the ESPP:


	Year Ended December 31,
	2019		2018
Expected volatility	39.6 – 74.2	%	59.5 – 87.8	%
Risk-free interest rate	1.67 – 2.66	%	0.94 – 2.11	%
Expected term (in years)	0.5 – 1.0		0.5 – 1.0
Dividend yield	—	%	—	%

Modification of Stock-Based 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

In September 2017, the Company’s board of directors authorized the issuance of Restricted Stock Units (RSUs), under the 2016 Plan and adopted a form of Restricted Stock Unit Award Agreement, which is intended to serve as a standard form agreement for RSU grants issued to employees, executive officers, directors and consultants. The fair value of the RSUs is recognized as expense ratably over the vesting period, as determined by the board of directors on the date of grant.

The following table summarizes RSU activity for the year ended December 31, 2019:


	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2018	93,560	$	8.38
Granted	183,402		6.64
Vested	(42,550)		8.04
Cancelled/forfeited	(22,450)		8.02
Balance—December 31, 2019	211,962	$	6.97

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 December 31, 2019, there was $1.0 million of unrecognized stock-based compensation expense related to RSUs to be recognized over a weighted-average period of 2.4 years.

Stock-based Compensation Expense

As of December 31, 2019, there was $4.5 million of total unrecognized compensation expense related to unvested options which is expected to be recognized over a weighted-average period of 2.5 years. Compensation cost capitalized within inventory at December 31, 2019 and 2018 was not material.

The Company estimated the fair value of each option grant 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.


	Year Ended December 31,
	2019		2018
Expected volatility	65.1 – 74.4	%	51.9 – 56.6	%
Risk-free interest rate	1.46 – 2.52	%	2.64 – 2.94	%
Expected term (in years)	5.3 – 6.1		5.7 – 6.1
Dividend yield	—	%	—	%

Expected volatility. The Company determines the expected stock price volatility based on the historical volatility of its common stock and the historical volatilities of a peer group. Industry peers consist of several public companies in the technology industry similar in size, stage of life cycle and financial leverage. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient trading history of our common stock becomes available. If circumstances change such that the identified companies are no longer similar, the Company will revise its peer group to substitute more suitable companies in this calculation.

Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield with a maturity equal to the expected term of the option in effect at the time of grant.

Expected term. The expected term represents the period that the stock-based awards are expected to be outstanding. The Company used the simplified method to determine the expected term, which is calculated as the average of the time to vesting and the contractual life of the options.

Dividend yield. The Company has never paid dividends on its common stock and is prohibited from paying dividends on its common stock. Therefore, the Company used an expected dividend yield of zero.

401 (k) Plan	12 Months Ended
401 (k) Plan	Dec. 31, 2019
401 (k) Plan
401 (k) Plan	9. 401(k) Plan The Company has a defined contribution employee benefit plan pursuant to Section 401(k) of the Internal Revenue Code. The plan allows eligible employees to defer a portion of their annual compensation up to certain statutory limits. At the election of the Board of Directors, the Company may elect to match employee contributions but has not done so to date.

Significant Agreements	12 Months Ended
Significant Agreements	Dec. 31, 2019
Significant Agreements
Significant Agreements	10. Significant Agreements GLOBALFOUNDRIES, Inc. Joint Development Agreement Since October 17, 2014, the Company has participated in a joint development agreement with GLOBALFOUNDRIES Inc., a semiconductor foundry, for the joint development of STT-MRAM technology to produce of a family of discrete and embedded MRAM technologies. The term of the agreement is until the completion, termination, or expiration of the last statement of work entered into pursuant to the joint development agreement. The agreement was extended on December 31, 2019 to include a new phase of support for 12nm MRAM development. Under the current JDA extension terms, 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, 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 Company incurred project costs, recognized as research and development expense, of $1.8 million and $5.8 million during the years ended December 31, 2019 and 2018, respectively. The Company entered into a Statement of Work (SOW) and an Amendment to the SOW, under the JDA with GF effective August 2016 and June 2018 respectively. The Company is entitled to revenues under the SOW and its Amendment upon delivery and acceptance of product. The Company did not recognize any revenue from GF for the year ended December 31, 2019. The Company recognized revenue from GF of $1.0 million for the year ended December 31, 2018. 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 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 vested on a monthly basis through October 21, 2018. During the year ended 2018, the Company recognized non-cash compensation expense of $0.8 million, in research and development expense, related to the vesting of the shares of common stock. As of December 31, 2018, all shares issued to GF were fully vested. Silterra Malaysia Sdn. Bhd. Joint Collaboration Agreement In September 2018, the Company entered into a Joint Collaboration Agreement (JCA) with Silterra Malaysia Sdn. Bhd. (Silterra), and another third party. The JCA will create additional manufacturing capacity for the Company’s Toggle MRAM products. Initial production is expected to start in 2020. Under the JCA the Company will pay non-recurring engineering costs of $1.0 million. During the years ended December 31, 2019 and 2018, the Company paid $200,000 and $400,000 of JCA costs, respectively.

Restructuring	12 Months Ended
Restructuring	Dec. 31, 2019
Restructuring
Restructuring	11. Restructuring During the year ended December 31, 2019, the Company implemented a corporate restructuring to ensure long-term sustainability. As part of the restructuring, the Company will reduce its workforce by approximately 15 positions across all functions. The restructuring expense of $782,000 during the year ended December 31, 2019 represented all cash consideration of the restructuring, and primarily related to employee severance and benefit arrangements to be paid in 2020.

Geographic Information

12 Months Ended

Dec. 31, 2019

Geographic Information

Geographic Information

12. Geographic Information

Property and equipment, net by country was as follows (in thousands):


	December 31,
	2019		2018
United States	$	2,235	$	2,714
Singapore		789		912
Other		455		660
	$	3,479	$	4,286

Revenue from customers is designated based on the geographic region or country to which the product is delivered or licensee is located. Revenue by country was as follows (in thousands):


	Year Ended December 31,
	2019		2018
Hong Kong	$	10,144	$	2,453
Germany		6,423		6,724
Japan		5,660		10,254
United States		4,915		6,746
China		1,361		5,083
All other		9,000		18,157
Total revenue	$	37,503	$	49,417

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes

Income Taxes

13. Income Taxes

For the years ended December 31, 2019 and 2018, the Company recorded no provision or benefit for income taxes primarily due to losses incurred. The Company has incurred net operating losses for all the periods presented.

The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:


	Year Ended December 31,
	2019		2018
Tax at statutory federal rate	(21.0)	%	(21.0)	%
State taxes, net of federal benefit	(0.8)		(1.7)
Stock-based compensation	2.0		1.5
Nondeductible executive compensation	—		0.9
Change in valuation allowance	18.9		20.6
Other	0.9		(0.3)
Provision for income taxes	0.0	%	0.0	%

The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands):


	December 31,
	2019		2018
Deferred tax assets:
Net operating loss carryforwards	$	29,684	$	25,359
Inventory		874		1,442
Accruals		430		760
Depreciation and amortization		143		88
Limitation on business interest		186		96
Stock-based compensation		546		1,416
Right of use liability		776		—
Gross deferred tax assets		32,639		29,161
Valuation allowance		(31,840)		(29,073)
Deferred tax assets		799		88
Deferred tax liabilities:
Right of use asset		(710)		—
Other		(89)		(88)
Deferred tax liabilities		(799)		(88)
Net deferred tax assets	$	—	$	—

The Company is required to reduce its deferred tax assets by a valuation allowance if it is more likely than not that some or all of its deferred tax assets will not be realized. Management must use judgment in assessing the potential need for a valuation allowance, which requires an evaluation of both negative and positive evidence. The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which it can be objectively verified. In determining the need for and amount of the valuation allowance, if any, the Company assesses the likelihood that it will be able to recover its deferred tax assets using historical levels of income, estimates of future income and tax planning strategies. As a result of historical cumulative losses, the Company determined that, based on all available evidence, there was substantial uncertainty as to whether it will recover recorded net deferred taxes in future periods. Accordingly, the Company recorded a valuation allowance against all of its net deferred tax assets as of December 31, 2019 and 2018. The net valuation allowance increased by $2.8 million in 2019.

As of December 31, 2019, the Company had federal net operating loss carryforwards of approximately $131.8 million, of which $99.8 million will begin to expire in the year of 2028 through 2037 if not utilized, and $32.0 million will carryover indefinitely. In addition, the Company had state net operating loss carryforwards of approximately $50.2 million, of which $48.5 million will begin to expire in 2023 through 2039 if not utilized, and $1.7 million will carryover indefinitely.

The Tax Reform Act of 1986 (the Act) provides for a limitation on the annual use of net operating loss and research and development tax credit carryforwards following certain ownership changes (as defined by the Act and codified under IRC Section 382) that could limit the Company’s ability to utilize these carryforwards. Should the limitation apply, the related net operating loss deferred tax asset and the valuation allowance would be reduced by the same amount.

The Company files income tax returns in the U.S. federal and various state jurisdictions. The Company is subject to U.S. federal and state income tax examinations by authorities for all tax years beginning in 2008, due to the accumulated net operating losses that are carried forward.

The Company has not identified any unrecognized tax benefits as of December 31, 2019 and 2018. The Company does not expect the amount of unrecognized tax benefits to materially change in the next twelve months.

Net Loss Per Common Share

12 Months Ended

Dec. 31, 2019

Net Loss Per Common Share

Net Loss Per Common Share

14. 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):


	Year Ended December 31,
	2019		2018
Numerator:
Net loss	$	(14,669)	$	(17,754)
Denominator:
Weighted-average common shares outstanding		17,317,042		16,413,733
Less: weighted-average unvested common shares subjected to repurchase		—		(41,095)
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted		17,317,042		16,372,638
Net loss per common share, basic and diluted	$	(0.85)	$	(1.08)

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:


	Year Ended December 31,
	2019	2018
Options to purchase common stock	1,931,903	1,475,299
Restricted stock units	211,962	93,560
Common stock warrants	27,836	27,836
Total	2,171,701	1,596,695

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Use of Estimates

Segments

Cash and Cash Equivalents

Accounts Receivable

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


	December 31,
	2019		2018
Trade accounts receivable	$	5,454	$	7,297
Unbilled accounts receivable		576		938
Allowance for product returns and price concessions		(231)		(713)
Accounts receivable, net	$	5,799	$	7,522

Concentration of Credit Risk


	Revenue				Accounts Receivable
	Year Ended December 31,				December 31,
Customers	2019		2018		2019		2018
Customer A	21	%	*		41	%	23	%
Customer B	12	%	*		*		*
Customer C	12	%	*		*		*
Customer D	10	%	13	%	*		*
Customer E	*		*		*		11	%
Customer F	*		*		11	%	*
Customer G	*		11	%	*		*
Customer H	*		10	%	*		*
Customer I	*		*		*		21	%
Customer J	*		*		*		11	%

*Less than 10%

Inventory

Fair Value of Financial Instruments

Level 1— Observable inputs such as quoted prices for identical assets or liabilities in active markets;

Level 2— Inputs, other than quoted prices for identical assets or liabilities in active markets, which are observable either directly or indirectly; and

Level 3— Unobservable inputs in which there is little or no market data requiring the reporting entity to develop its own assumptions.

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


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	12,367	$	—	$	—	$	12,367
Total assets measured at fair value	$	12,367	$	—	$	—	$	12,367

Liabilities:
Warrant liability	$	—	$	—	$	33	$	33
Total liabilities measured at fair value	$	—	$	—	$	33	$	33


	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	23,478	$	—	$	—	$	23,478
Total assets measured at fair value	$	23,478	$	—	$	—	$	23,478

Property and Equipment


	Useful Lives
Computer and network equipment		2 years
Manufacturing equipment		2 – 7 years
Furniture and fixtures		7 years
Software		3 years

Impairment of Long-lived Assets

Leases

Debt Issuance Costs

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

Product Warranty

Research and Development

Stock-based Compensation

Income Taxes

Net Loss per Common Share

Recently Adopted Pronouncements and Recently Issued Pronouncements

Recently Adopted Pronouncements

Recently Issued Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Schedule of accounts receivable net

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


	December 31,
	2019		2018
Trade accounts receivable	$	5,454	$	7,297
Unbilled accounts receivable		576		938
Allowance for product returns and price concessions		(231)		(713)
Accounts receivable, net	$	5,799	$	7,522

Schedule of revenue and accounts receivable for each significant customer


	Revenue				Accounts Receivable
	Year Ended December 31,				December 31,
Customers	2019		2018		2019		2018
Customer A	21	%	*		41	%	23	%
Customer B	12	%	*		*		*
Customer C	12	%	*		*		*
Customer D	10	%	13	%	*		*
Customer E	*		*		*		11	%
Customer F	*		*		11	%	*
Customer G	*		11	%	*		*
Customer H	*		10	%	*		*
Customer I	*		*		*		21	%
Customer J	*		*		*		11	%

*Less than 10%

Schedule of fair value of financial assets and liabilities measured on recurring basis

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


	December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	12,367	$	—	$	—	$	12,367
Total assets measured at fair value	$	12,367	$	—	$	—	$	12,367

Liabilities:
Warrant liability	$	—	$	—	$	33	$	33
Total liabilities measured at fair value	$	—	$	—	$	33	$	33


	December 31, 2018
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	23,478	$	—	$	—	$	23,478
Total assets measured at fair value	$	23,478	$	—	$	—	$	23,478

Schedule of estimated useful lives of the assets


	Useful Lives
Computer and network equipment		2 years
Manufacturing equipment		2 – 7 years
Furniture and fixtures		7 years
Software		3 years

Revenue (Tables)

12 Months Ended

Dec. 31, 2019

Revenue.

Schedule of disaggregation of revenue

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


	Year Ended December 31,
	2019		2018
Distributor	$	24,724	$	35,126
Non-distributor		12,779		14,291
Total revenue	$	37,503	$	49,417

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


	Year Ended December 31,
	2019		2018
Point in time	$	35,665	$	45,102
Over time		1,838		4,315
Total revenue	$	37,503	$	49,417

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


	Year Ended December 31,
	2019		2018
Product sales	$	34,595	$	39,514
License fees		—		5,000
Royalties		1,070		588
Other revenue		1,838		4,315
Total revenue	$	37,503	$	49,417


	Year Ended December 31,
	2019		2018
North America	$	8,690	$	9,124
EMEA		8,720		11,175
APJ		20,093		29,118
Total revenue	$	37,503	$	49,417

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2019

Balance Sheet Components

Schedule of Inventory

Inventory consisted of the following (in thousands):


	December 31,
	2019		2018
Raw materials	$	119	$	288
Work-in-process		6,329		6,759
Finished goods		1,415		2,050
Total inventory	$	7,863	$	9,097

Schedule of property and equipment, net

Property and equipment, net consisted of the following (in thousands):


	December 31,
	2019		2018
Manufacturing equipment	$	12,228	$	11,723
Computer and network equipment		877		820
Furniture and fixtures		112		110
Software		925		680
Leasehold improvements		1,444		1,432
Total property and equipment, gross		15,586		14,765
Less: accumulated depreciation		(12,107)		(10,479)
Total property and equipment, net	$	3,479	$	4,286

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):


	December 31,
	2019		2018
Accrued payroll-related expenses	$	1,236	$	1,558
Accrued joint development agreement expenses		170		661
Accrued inventory		87		1,678
Restructuring expenses		782		—
Deferred rent		—		390
Other		452		714
Total accrued liabilities	$	2,727	$	5,001

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies

Schedule of operating lease payments

The undiscounted future non-cancellable lease payments under the Company’s operating leases were as follows (in thousands):


As of December 31, 2019	Amount
2020	$	1,736
2021		1,763
2022		133
Thereafter		—
Total undiscounted lease payments		3,632
Less: Present value adjustment		(210)
Total operating lease liabilities		3,422
Less: Current portion of operating lease liabilities		(1,582)
Total operating lease liabilities, net of current portion	$	1,840

Schedule of supplemental information


As of December 31, 2019
Weighted-average remaining lease term (years)	2.06
Weighted-average discount rate	6.00	%

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt

Summary of debt

The carrying value of the Company’s 2019 Credit Facility at December 31, 2019, was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Credit Facility	$	800	$	7,620	$	8,420
Unamortized debt discounts		(130)		(471)		(601)
Net carrying value	$	670	$	7,149	$	7,819

The carrying value of the Company’s 2017 Credit Facility at December 31, 2018, was as follows (in thousands):


	Current		Long-Term
	Portion		Debt		Total
Credit Facility	$	6,000	$	6,840	$	12,840
Unamortized debt discounts		(33)		(341)		(374)
Net carrying value	$	5,967	$	6,499	$	12,466

Summary of principal repayments of credit facility

The table below includes the principal repayments due under the 2019 Credit Facility as of December 31, 2019 (in thousands):




2020	$	800
2021		4,400
2022		2,400
2023		820
Total principal repayments	$	8,420

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Stockholders’ Equity

Summary of common stock reserved for future issuance


	December 31,
	2019	2018
Options issued and outstanding	1,931,903	1,475,299
Shares available for future option grants	638,227	764,145
RSUs subject to future vesting	211,962	93,560
Common stock warrants	27,836	27,836
Total	2,809,928	2,360,840

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Summary of stock option activity


		Options Outstanding
			Weighted-		Weighted-
	Options and		Average		Average
	Awards		Exercise		Remaining	Aggregate
	Available for	Number of	Price Per		Contractual	Intrinsic
	Grant	Options	Share		Life (years)	Value
						(In thousands)
Balance—December 31, 2018	764,145	1,475,299	$	7.60	7.8	$	284
Authorized	512,864
RSUs granted	(183,402)
RSUs cancelled/forfeited	22,450
Options granted	(660,852)	660,852	$	6.58
Options exercised	—	(10,416)	$	4.69		$	24
Options cancelled/forfeited	183,022	(193,832)	$	8.57
Balance—December 31, 2019	638,227	1,931,903	$	7.17	6.5	$	188
Options exercisable—December 31, 2019		961,162	$	7.11	5.4	$	187

Schedule of restricted stock unit activity


	RSUs Outstanding
		Weighted-
		Average
	Number of	Grant Date
	Restricted Stock	Fair Value Per
	Units	Share
Balance—December 31, 2018	93,560	$	8.38
Granted	183,402		6.64
Vested	(42,550)		8.04
Cancelled/forfeited	(22,450)		8.02
Balance—December 31, 2019	211,962	$	6.97

2016 Employee Stock Purchase Plan

Schedule of fair value assumptions


	Year Ended December 31,
	2019		2018
Expected volatility	39.6 – 74.2	%	59.5 – 87.8	%
Risk-free interest rate	1.67 – 2.66	%	0.94 – 2.11	%
Expected term (in years)	0.5 – 1.0		0.5 – 1.0
Dividend yield	—	%	—	%

Employees

Schedule of fair value assumptions


	Year Ended December 31,
	2019		2018
Expected volatility	65.1 – 74.4	%	51.9 – 56.6	%
Risk-free interest rate	1.46 – 2.52	%	2.64 – 2.94	%
Expected term (in years)	5.3 – 6.1		5.7 – 6.1
Dividend yield	—	%	—	%

Geographic Information (Tables)

12 Months Ended

Dec. 31, 2019

Geographic Information

Schedule of property and equipment by country

Property and equipment, net by country was as follows (in thousands):


	December 31,
	2019		2018
United States	$	2,235	$	2,714
Singapore		789		912
Other		455		660
	$	3,479	$	4,286

Schedule of revenue by country

Revenue by country was as follows (in thousands):


	Year Ended December 31,
	2019		2018
Hong Kong	$	10,144	$	2,453
Germany		6,423		6,724
Japan		5,660		10,254
United States		4,915		6,746
China		1,361		5,083
All other		9,000		18,157
Total revenue	$	37,503	$	49,417

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of reconciliation of statutory federal income tax rate


	Year Ended December 31,
	2019		2018
Tax at statutory federal rate	(21.0)	%	(21.0)	%
State taxes, net of federal benefit	(0.8)		(1.7)
Stock-based compensation	2.0		1.5
Nondeductible executive compensation	—		0.9
Change in valuation allowance	18.9		20.6
Other	0.9		(0.3)
Provision for income taxes	0.0	%	0.0	%

Schedule of tax effects of temporary differences and carryforwards

The tax effects of temporary differences and carryforwards that give rise to significant portions of the deferred tax assets are as follows (in thousands):


	December 31,
	2019		2018
Deferred tax assets:
Net operating loss carryforwards	$	29,684	$	25,359
Inventory		874		1,442
Accruals		430		760
Depreciation and amortization		143		88
Limitation on business interest		186		96
Stock-based compensation		546		1,416
Right of use liability		776		—
Gross deferred tax assets		32,639		29,161
Valuation allowance		(31,840)		(29,073)
Deferred tax assets		799		88
Deferred tax liabilities:
Right of use asset		(710)		—
Other		(89)		(88)
Deferred tax liabilities		(799)		(88)
Net deferred tax assets	$	—	$	—

Net Loss Per Common Share (Tables)

12 Months Ended

Dec. 31, 2019

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):


	Year Ended December 31,
	2019		2018
Numerator:
Net loss	$	(14,669)	$	(17,754)
Denominator:
Weighted-average common shares outstanding		17,317,042		16,413,733
Less: weighted-average unvested common shares subjected to repurchase		—		(41,095)
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted		17,317,042		16,372,638
Net loss per common share, basic and diluted	$	(0.85)	$	(1.08)

Schedule of potentially dilutive securities excluded from diluted net loss per common share


	Year Ended December 31,
	2019	2018
Options to purchase common stock	1,931,903	1,475,299
Restricted stock units	211,962	93,560
Common stock warrants	27,836	27,836
Total	2,171,701	1,596,695

Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accounts receivable
Allowance for doubtful accounts	$ 0	$ 0
Trade accounts receivable	5,454	7,297
Unbilled accounts receivable	576	938
Allowance for product returns and price concessions	(231)	(713)
Accounts receivable, net	$ 5,799	$ 7,522

Summary of Significant Accounting Policies - Schedule of Revenue and Accounts Receivable for Each Significant Customer (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue \| Customer A
Concentration risk
Concentration risk percentage	21.00%
Revenue \| Customer A \| Maximum
Concentration risk
Concentration risk percentage		10.00%
Revenue \| Customer B
Concentration risk
Concentration risk percentage	12.00%
Revenue \| Customer B \| Maximum
Concentration risk
Concentration risk percentage		10.00%
Revenue \| Customer C
Concentration risk
Concentration risk percentage	12.00%
Revenue \| Customer C \| Maximum
Concentration risk
Concentration risk percentage		10.00%
Revenue \| Customer D
Concentration risk
Concentration risk percentage	10.00%	13.00%
Revenue \| Customer E \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Revenue \| Customer F \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Revenue \| Customer G
Concentration risk
Concentration risk percentage		11.00%
Revenue \| Customer G \| Maximum
Concentration risk
Concentration risk percentage	10.00%
Revenue \| Customer H
Concentration risk
Concentration risk percentage		10.00%
Revenue \| Customer H \| Maximum
Concentration risk
Concentration risk percentage	10.00%
Revenue \| Customer I \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Revenue \| Customer J \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Accounts Receivable \| Customer A
Concentration risk
Concentration risk percentage	41.00%	23.00%
Accounts Receivable \| Customer B \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Accounts Receivable \| Customer C \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Accounts Receivable \| Customer D \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Accounts Receivable \| Customer E
Concentration risk
Concentration risk percentage		11.00%
Accounts Receivable \| Customer E \| Maximum
Concentration risk
Concentration risk percentage	10.00%
Accounts Receivable \| Customer F
Concentration risk
Concentration risk percentage	11.00%
Accounts Receivable \| Customer F \| Maximum
Concentration risk
Concentration risk percentage		10.00%
Accounts Receivable \| Customer G \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Accounts Receivable \| Customer H \| Maximum
Concentration risk
Concentration risk percentage	10.00%	10.00%
Accounts Receivable \| Customer I
Concentration risk
Concentration risk percentage		21.00%
Accounts Receivable \| Customer I \| Maximum
Concentration risk
Concentration risk percentage	10.00%
Accounts Receivable \| Customer J
Concentration risk
Concentration risk percentage		11.00%
Accounts Receivable \| Customer J \| Maximum
Concentration risk
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	Dec. 31, 2019	Dec. 31, 2018
Fair Value
Total assets measured at fair value	$ 12,367	$ 23,478
Warrant liability	33
Total liabilities measured at fair value	33
Level 1
Fair Value
Total assets measured at fair value	12,367	23,478
Level 3
Fair Value
Warrant liability	33
Total liabilities measured at fair value	33
Money market funds
Fair Value
Money market funds	12,367	23,478
Money market funds \| Level 1
Fair Value
Money market funds	$ 12,367	$ 23,478

Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment, Net
Capitalized software	$ 238	$ 356
Impairment of Long-lived Assets
Impairment of long-lived assets	$ 0	$ 0
Computer and network equipment
Property and Equipment, Net
Useful Lives	2 years
Manufacturing equipment \| Minimum
Property and Equipment, Net
Useful Lives	2 years
Manufacturing equipment \| Maximum
Property and Equipment, Net
Useful Lives	7 years
Furniture and fixtures
Property and Equipment, Net
Useful Lives	7 years
Software
Property and Equipment, Net
Useful Lives	3 years

Summary of Significant Accounting Policies - Leases (Details)	12 Months Ended
	Dec. 31, 2019
Leases
Operating lease - existence of option to extend	true
Finance lease - existence of option to extend	true
Minimum
Leases
Operating lease renewal term (in years)	2 years
Finance lease renewal term (in years)	2 years
Maximum
Leases
Operating term of lease (in years)	5 years
Operating lease renewal term (in years)	5 years
Finance term of lease (in years)	5 years
Finance lease renewal term (in years)	5 years

Summary of Significant Accounting Policies - Recently issued pronouncements (Details) - USD ($) $ in Thousands	Jan. 01, 2019	Dec. 31, 2019
Recently Issued Pronouncement
Practical expedient - package	true
Right-of-use assets		$ 3,132
Operating leases liabilities		$ 3,422
ASU 2016-02
Recently Issued Pronouncement
Right-of-use assets	$ 3,600
Operating leases liabilities	4,000
Derecognized deferred rent liability	$ 390

Revenue - Disaggregated by Sales Channel (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue
Revenue	$ 37,503	$ 49,417
Distributor
Disaggregation of Revenue
Revenue	24,724	35,126
Non-distributor
Disaggregation of Revenue
Revenue	$ 12,779	$ 14,291

Revenue - Disaggregated by Timing of Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue
Revenue	$ 37,503	$ 49,417
Point in time
Disaggregation of Revenue
Revenue	35,665	45,102
Over time
Disaggregation of Revenue
Revenue	$ 1,838	$ 4,315

Revenue - Disaggregated by Type (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue
Revenue	$ 37,503	$ 49,417
Product sales
Disaggregation of Revenue
Revenue	34,595	39,514
License fees
Disaggregation of Revenue
Revenue		5,000
Royalties
Disaggregation of Revenue
Revenue	1,070	588
Other revenue
Disaggregation of Revenue
Revenue	$ 1,838	$ 4,315

Revenue - Disaggregated by Geographic Region (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) region	Dec. 31, 2018 USD ($)
Disaggregation of Revenue
Number of primary geographic regions \| region	3
Revenue	$ 37,503	$ 49,417
North America
Disaggregation of Revenue
Revenue	8,690	9,124
EMEA
Disaggregation of Revenue
Revenue	8,720	11,175
APJ
Disaggregation of Revenue
Revenue	$ 20,093	$ 29,118

Balance Sheet Components - Schedule of Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory
Raw materials	$ 119	$ 288
Work-in-process	6,329	6,759
Finished goods	1,415	2,050
Total inventory	$ 7,863	$ 9,097

Balance Sheet Components - Property and Equipment Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Property and Equipment, Net
Total property and equipment, gross	$ 15,586	$ 14,765
Less: accumulated depreciation	(12,107)	(10,479)
Total property and equipment, net	3,479	4,286
Depreciation and amortization expense	1,700	1,500
Manufacturing equipment
Property and Equipment, Net
Total property and equipment, gross	12,228	11,723
Computer and network equipment
Property and Equipment, Net
Total property and equipment, gross	877	820
Furniture and fixtures
Property and Equipment, Net
Total property and equipment, gross	112	110
Software
Property and Equipment, Net
Total property and equipment, gross	925	680
Leasehold improvements
Property and Equipment, Net
Total property and equipment, gross	$ 1,444	$ 1,432

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Accrued liabilities
Accrued payroll-related expenses	$ 1,236	$ 1,558
Accrued joint development agreement expenses	170	661
Accrued inventory	87	1,678
Restructuring expenses	782
Deferred rent		390
Other	452	714
Total accrued liabilities	$ 2,727	$ 5,001

Commitments and Contingencies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Lease information
2020	$ 1,736
2021	1,763
2022	133
Total undiscounted lease payments	3,632
Less: Present value adjustment	(210)
Total operating lease liabilities	3,422
Less: Current portion of operating lease liabilities	(1,582)
Total operating lease liabilities, net of current portion	$ 1,840
Other lease information
Operating lease weighted-average remaining lease term (years)	2 years 22 days
Operating lease weighted-average discount rate	6.00%
Operating lease costs	$ 1,600	$ 1,600

Debt - Credit Facility (Details)			1 Months Ended	12 Months Ended
Debt - Credit Facility (Details)	Jul. 06, 2018 USD ($) payment	May 04, 2017 USD ($) payment	Aug. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
2017 Credit Facility
Debt
Loan agreement amount		$ 12,000,000
Reimbursement of principal payments	$ 1,000,000
End-of-term fee (as a percent)	7.00%	6.00%
Increase in rate in the event of default (as a percentage)				5.00%
Repayment of credit facility			$ 800,000
Principal amount			8,000,000
2017 Credit Facility \| Prepayment period - first 12 months
Debt
Prepayment fee				$ 240,000
2017 Credit Facility \| Prepayment period - months 13-24
Debt
Prepayment fee				$ 120,000
2017 Credit Facility \| Minimum
Debt
Number of interest and principal payments \| payment	24	24
2017 Credit Facility \| Maximum
Debt
Number of interest and principal payments \| payment	36
2017 Credit Facility \| Prime Rate
Debt
Interest rate, negative basis spread percentage	0.75%	0.75%
Effective interest rate				4.75%
2019 Credit Facility - Revolving Line Of Credit
Debt
Loan agreement amount			$ 5,000,000
Agreement term			2 years
Interest rate, basis spread percentage			1.50%
Effective interest rate				10.57%
Commitment fee (as a percentage)			1.60%
Termination fee (as a percentage)			1.00%
Unused facility fee (as a percentage)			0.125%
Debt amount			$ 2,000,000
Remaining availability			$ 3,000,000
Outstanding balance				$ 2,000,000
2019 Credit Facility - Revolving Line Of Credit \| Prime Rate \| Minimum
Debt
Interest rate, basis spread percentage			6.75%
Effective interest rate				6.75%
2019 Credit Facility - Term Loan
Debt
End-of-term fee (as a percent)			7.00%
Agreement term			42 months
Effective interest rate				8.66%
Prepayment fee (as a percentage)			2.00%
Debt amount			$ 6,000,000
Number of months of interest only payment			12 months
Number of months of equal principal payments plus accrued interest			30 months
2019 Credit Facility - Term Loan \| Prime Rate
Debt
Interest rate, negative basis spread percentage			0.75%
Effective interest rate			4.75%

Debt - Carrying Value (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt
Net carrying value of debt, Current Portion	$ 670	$ 5,977
Net carrying value of debt, Long-term debt	7,149	6,509
2019 Credit Facility
Debt
Debt, Current Portion	800	6,000
Less: Debt issuance costs, Current Portion	(130)	(33)
Net carrying value of debt, Current Portion	670	5,967
Debt, including end of term fee, Long-term debt	7,620	6,840
Less: Unamortized debt discounts, Long-term debt	(471)	(341)
Net carrying value of debt, Long-term debt	7,149	6,499
Total principal amount	8,420	12,840
Less: Discount attributable to warrants, end of term fee and debt issuance costs, Total	(601)	(374)
Net carrying value of debt, Total	$ 7,819	$ 12,466

Debt - Summary of Principal Repayments of 2019 Credit Facility (Details) - 2019 Credit Facility - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt
2020	$ 800
2021	4,400
2022	2,400
2023	820
Total principal amount	$ 8,420	$ 12,840

Stockholders' Equity - (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2019	Feb. 28, 2018	Dec. 31, 2019	Dec. 31, 2018
Common stock reserved
Dividends on common stock			$ 0.00
Reserved shares of common stock for future issuance			2,809,928	2,360,840
Net proceeds				$ 24,524
Number of shares sold		3,772,447
Sale of common stock
Offering price		$ 7.00
Proceeds from stock offering, net of offering costs		$ 24,500
Offering costs		$ 1,900
Common stock warrants
Common stock reserved
Reserved shares of common stock for future issuance			27,836	27,836
Options issued and outstanding
Common stock reserved
Reserved shares of common stock for future issuance			1,931,903	1,475,299
Shares available for future option grants
Common stock reserved
Reserved shares of common stock for future issuance			638,227	764,145
RSUs subject to future vesting
Common stock reserved
Reserved shares of common stock for future issuance			211,962	93,560
At-the-Market Sales Agreement
Common stock reserved
Maximum amount of shares for offering	$ 25,000
Maximum commission percentage	3.00%
Net proceeds	$ 4,700
Number of shares sold	888,987
Shares available for future issuance	$ 19,900

Stockholders’ Equity - Warrants (Details) - USD ($)			1 Months Ended
Stockholders’ Equity - Warrants (Details) - USD ($)	Aug. 05, 2019	Jul. 06, 2018	Jun. 30, 2015	Dec. 31, 2010
2019 Credit Facility
Warrants
Amount bank could receive if takes the option to put the warrants upon expiration or a liquidity event	$ 50,000
Warrants to Purchase Series A Redeemable Convertible Preferred Stock \| SVB Credit Facility
Warrants
Number of shares the warrant can be converted to				9,229
Warrant exercise price				$ 26.00
Warrants to Purchase Series B Redeemable Convertible Preferred Stock \| 2015 Credit Facility
Warrants
Number of shares the warrant can be converted to			18,461
Warrant exercise price			$ 26.00
Warrant exercise expiration period			10 years
Warrants to Purchase Series B Redeemable Convertible Preferred Stock \| SVB Credit Facility
Warrants
Number of shares the warrant can be converted to		9,375
Warrant exercise price		$ 8.91
Fair Value Of Warrants		$ 43,000
Warrant exercise expiration period		5 years

Stock-Based Compensation - Summary of Options and Awards Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock-based compensation
Options and Awards Available for Grant, Outstanding, Beginning balance	764,145
Options and Awards Available for Grant, Options authorized	512,864
Options and Awards Available for Grant, Options granted	(660,852)
Options and Awards Available for Grant, Options cancelled/forfeited	183,022
Options and Awards Available for Grant, Outstanding, Ending balance	638,227	764,145
Number of Options, Outstanding, Beginning balance	1,475,299
Number of Options, Options granted	660,852
Number of Options, Options exercised	(10,416)
Number of Options, Options cancelled/forfeited	(193,832)
Number of Options, Outstanding, Ending balance	1,931,903	1,475,299
Number of Options, exercisable	961,162
Weighted - Average Exercise Price Per Share, Options outstanding, Beginning balance	$ 7.60
Weighted - Average Exercise Price Per Share, Options granted	6.58
Weighted - Average Exercise Price Per Share, Options exercised	4.69
Weighted - Average Exercise Price Per Share, Options cancelled/forfeited	8.57
Weighted - Average Exercise Price Per Share, Options outstanding, Ending balance	7.17	$ 7.60
Weighted - Average Exercise Price Per Share, Options exercisable	$ 7.11
Weighted - Average Remaining Contractual Life, Options outstanding	6 years 6 months	7 years 9 months 18 days
Weighted - Average Remaining Contractual Life, Options exercisable	5 years 4 months 24 days
Aggregate Intrinsic Value, Options outstanding	$ 188	$ 284
Aggregate Intrinsic Value, Options exercised	24
Aggregate Intrinsic Value, Options exercisable	$ 187
Restricted stock units
Stock-based compensation
Options and Awards Available for Grant, RSUs granted	(183,402)
Options Available for Grant, RSUs cancelled/forfeited	22,450

Stock-Based Compensation - Additional Information (Details) - USD ($)		1 Months Ended	12 Months Ended
	Oct. 07, 2016	Feb. 28, 2018	Dec. 31, 2019	Dec. 31, 2018	Jan. 31, 2018
Share-based Compensation
Total grant date fair value of options vested			$ 2,300,000	$ 1,900,000
Weighted-average grant date fair value of options granted			$ 4.06	$ 4.45
Shares available for future issuance (in shares)			638,227	764,145
Value of share issued			$ 282,000	$ 2,503,000
Number of vested and unvested stock option award modified		400,000
Weighted-average exercise price (per share)			$ 7.17	$ 7.60
Number of stock options granted (in shares)			660,852
Options remained outstanding			1,931,903	1,475,299
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
Weighted-average exercise price (per share)		$ 7.64			$ 16.25
Incremental modification value		$ 600,000
2016 Employee Incentive Plan
Share-based Compensation
Maximum number of common stock shares may be issued under the plan	500,000
Annual increases in the number of shares available for issuance, percentage of outstanding capital stock	3.00%
2008 Equity Incentive Plan
Share-based Compensation
Vesting period			4 years
Exercise period			10 years
Number of stock options granted (in shares)			0
Options remained outstanding			386,554
2008 Equity Incentive Plan \| Incentive Stock Options \| Minimum
Share-based Compensation
Percentage of exercise price of fair market value of stock at the date of grant			100.00%
2008 Equity Incentive Plan \| Incentive Stock Options \| Maximum
Share-based Compensation
Percentage of exercise price of fair market value of stock at the date of grant			110.00%
2016 Employee Stock Purchase Plan
Share-based Compensation
Shares available for future issuance (in shares)			396,000
Value of share issued			$ 232,000	$ 266,000
Number of shares issued (in shares)			44,344	42,327

Stock-Based Compensation - Restricted Stock Units (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Weighted Average Exercise Price Per Share
Unrecognized stock-based compensation expense \| $	$ 4.0
Unrecognized compensation expense, weighted-average period expected to be recognized	2 years 6 months
Restricted stock units
Number of Restricted Stock Units
Balance, beginning of period \| shares	93,560
Granted \| shares	183,402
Vested \| shares	(42,550)
Cancelled/forfeited \| shares	(22,450)
Balance, end of period \| shares	211,962
Weighted Average Exercise Price Per Share
Balance, beginning of period (price per share) \| $ / shares	$ 8.38
Granted (price per share) \| $ / shares	6.64
Vested (price per share) \| $ / shares	8.04
Cancelled/forfeited (price per share) \| $ / shares	8.02
Balance, end of period (price per share) \| $ / shares	$ 6.97
2016 Employee Incentive Plan \| Restricted stock units
Weighted Average Exercise Price Per Share
Unrecognized stock-based compensation expense \| $	$ 1.0
Unrecognized compensation expense, weighted-average period expected to be recognized	2 years 4 months 24 days

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Stock-Based Compensation
Unrecognized stock-based compensation expense	$ 4.0
Unrecognized compensation expense, weighted-average period expected to be recognized	2 years 6 months

Stock-Based Compensation - Schedule of Fair Value of Employee Stock Options (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Employees \| Options to purchase common stock
Share-based Compensation
Expected volatility, Minimum	65.10%	51.90%
Expected volatility, Maximum	74.40%	56.60%
Risk-free interest rate, Minimum	1.46%	2.64%
Risk-free interest rate, Maximum	2.52%	2.94%
Dividend yield	0.00%	0.00%
Employees \| Minimum \| Options to purchase common stock
Share-based Compensation
Expected term (in years)	5 years 3 months 18 days	5 years 8 months 12 days
Employees \| 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	39.60%	59.50%
Expected volatility, Maximum	74.20%	87.80%
Risk-free interest rate, Minimum	1.67%	0.94%
Risk-free interest rate, Maximum	2.66%	2.11%
2016 Employee Stock Purchase Plan \| Minimum
Share-based Compensation
Expected term (in years)	6 months	6 months
2016 Employee Stock Purchase Plan \| Maximum
Share-based Compensation
Expected term (in years)	1 year	1 year

Significant Agreements (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended		12 Months Ended
	Aug. 21, 2016	Oct. 21, 2014	Oct. 17, 2014	Sep. 30, 2018	Feb. 28, 2018	Dec. 31, 2019	Dec. 31, 2018
Joint development agreement
Research and development expense						$ 14,183	$ 23,637
Number of shares sold					3,772,447
Non-cash compensation expense (income)							$ 753
Common Stock
Joint development agreement
Number of shares sold							3,772,447
Joint Development Agreement \| Global Foundries, Inc.
Joint development agreement
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						1,800	$ 5,800
Milestone revenue							1,000
Joint Development Agreement \| Global Foundries, Inc. \| 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
Joint Development Agreement \| Global Foundries, Inc. \| Research and development
Joint development agreement
Non-cash compensation expense (income)							800
Joint Development Agreement \| Global Foundries, Inc. \| Series B Redeemable Convertible Preferred Stock
Joint development agreement
Number of shares sold		192,307
Shares sold, price per share		$ 26.00
Collaborative Agreement \| Silterra
Joint development agreement
Non-recurring engineering cost obligation				$ 1,000
JCA costs						$ 200	$ 400

Restructuring (Details)	12 Months Ended
Restructuring (Details)	Dec. 31, 2019 USD ($) position
Restructuring
Number of positions \| position	15
Restructuring expenses \| $	$ 782,000

Geographic Information (Details) - USD ($) $ in Thousands	12 Months Ended
Geographic Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Geographic Information
Property and equipment, net	$ 3,479	$ 4,286
Revenue	37,503	49,417
Hong Kong
Geographic Information
Revenue	10,144	2,453
Germany
Geographic Information
Revenue	6,423	6,724
Japan
Geographic Information
Revenue	5,660	10,254
United States
Geographic Information
Property and equipment, net	2,235	2,714
Revenue	4,915	6,746
China
Geographic Information
Revenue	1,361	5,083
All other
Geographic Information
Property and equipment, net	455	660
Revenue	9,000	18,157
Singapore
Geographic Information
Property and equipment, net	$ 789	$ 912

Income Taxes - Reconciliation Effective Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Provision for income taxes	$ 0	$ 0
Reconciliation of statutory federal income tax
Tax at statutory federal rate	(21.00%)	(21.00%)
State taxes, net of federal benefit	(0.80%)	(1.70%)
Stock-based compensation	2.00%	1.50%
Nondeductible executive compensation		0.90%
Change in valuation allowance	18.90%	20.60%
Other	0.90%	(0.30%)
Provision for income taxes	0.00%	0.00%

Income Taxes - Deferred tax assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$ 29,684	$ 25,359
Inventory	874	1,442
Accruals	430	760
Depreciation and amortization	143	88
Limitation on business interest	186	96
Stock-based compensation	546	1,416
Right of use liability	776
Gross deferred tax assets	32,639	29,161
Valuation allowance	(31,840)	(29,073)
Deferred tax assets	799	88
Deferred tax liabilities:
Right of use asset	(710)
Other	(89)	(88)
Deferred tax liabilities	(799)	$ (88)
Increase in valuation allowance	$ 2,800
Tax at statutory federal rate	21.00%	21.00%

Income Taxes - Net operating loss carryforwards and Tax Act (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Net operating loss carryforwards
Tax at statutory federal rate	21.00%	21.00%
Federal
Net operating loss carryforwards
Net operating loss carryforwards	$ 131.8
Net operating loss carryforwards, which will expire if not utilized	99.8
Net operating loss carryforwards, which will carryover indefinitely	32.0
State
Net operating loss carryforwards
Net operating loss carryforwards	50.2
Net operating loss carryforwards, which will expire if not utilized	48.5
Net operating loss carryforwards, which will carryover indefinitely	$ 1.7

Net Loss Per Common Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net loss	$ (14,669)	$ (17,754)
Denominator:
Weighted-average common shares outstanding	17,317,042	16,413,733
Less: weighted-average unvested common shares subjected to repurchase		(41,095)
Weighted-average common shares outstanding used to calculate net loss per common share, basic and diluted	17,317,042	16,372,638
Net loss per common share, basic and diluted	$ (0.85)	$ (1.08)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Net Loss Per Common Share - Schedule of Potentially Dilutive Securities Excluded from Diluted Net Loss Per Common Share (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	2,171,701	1,596,695
Options to purchase common stock
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	1,931,903	1,475,299
Restricted stock units
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	211,962	93,560
Common stock warrants
Antidilutive Securities
Potentially dilutive securities excluded from diluted net loss per common share	27,836	27,836