0001628280-20-007042 | 10-Q | XBRL Viewer

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2020	May 04, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-38358
Entity Registrant Name	INSEEGO CORP.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-3377646
Entity Address, Address Line One	12600 Deerfield Parkway, Suite 100
Entity Address, City or Town	Alpharetta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30004
City Area Code	858
Local Phone Number	812-3400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	INSG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		96,222,460
Amendment Flag	false
Entity Central Index Key	0001022652
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 30,541	$ 12,074
Accounts receivable, net of allowance for doubtful accounts of $1,578 and $2,133, respectively	27,788	19,656
Inventories, net	14,259	25,290
Prepaid expenses and other	7,252	7,117
Total current assets	79,840	64,137
Property, plant and equipment, net of accumulated depreciation of $15,795 and $16,017, respectively	11,543	10,756
Rental assets, net of accumulated depreciation of $11,925 and $12,791, respectively	4,772	5,385
Intangible assets, net of accumulated amortization of $39,991 and $33,223, respectively	43,049	44,392
Goodwill	27,276	33,659
Right-of-use assets, net	6,476	2,657
Other assets	385	387
Total assets	173,341	161,373
Current liabilities:
Accounts payable	27,550	26,482
Accrued expenses and other current liabilities	17,618	17,861
Term loan, net	46,911	0
DigiCore bank facilities	122	187
Total current liabilities	92,201	44,530
Long-term liabilities:
Convertible senior notes, net	44,230	101,334
Term loan, net	0	46,538
Deferred tax liabilities, net	2,976	3,949
Other long-term liabilities	6,131	2,380
Total liabilities	145,538	198,731
Commitments and Contingencies
Stockholders’ equity (deficit):
Series E Preferred stock, par value $0.001; 39,500 and 10,000 shares designated, respectively, 37,330 and 10,000 shares issued and outstanding, respectively, liquidation preference of $1,000 per share (plus any accrued but unpaid dividends)	0	0
Common stock, par value $0.001; 150,000,000 shares authorized, 96,179,991 and 81,974,051 shares issued and outstanding, respectively	96	82
Additional paid-in capital	682,047	584,862
Accumulated other comprehensive loss	(17,359)	(3,879)
Accumulated deficit	(636,893)	(618,303)
Total stockholders’ equity (deficit) attributable to Inseego Corp.	27,891	(37,238)
Noncontrolling interests	(88)	(120)
Total stockholders’ equity (deficit)	27,803	(37,358)
Total liabilities and stockholders’ equity (deficit)	$ 173,341	$ 161,373

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Allowance for doubtful accounts	$ 1,578	$ 2,133
Accumulated depreciation, Property, plant and equipment	15,795	16,017
Accumulated depreciation, Rental assets	11,925	12,791
Accumulated amortization, Intangible assets	$ 39,991	$ 33,223
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	96,179,991	81,974,051
Common stock, shares outstanding (in shares)	96,179,991	81,974,051
Series E Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	39,500	10,000
Preferred stock issued (in shares)	37,330	10,000
Preferred stock, shares outstanding (in shares)	37,330	10,000
Preferred stock, liquidation preference per share (in dollars per share)	$ 1,000	$ 1,000

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net revenues:
IoT & Mobile Solutions	$ 40,381	$ 32,781
Enterprise SaaS Solutions	16,459	15,775
Total net revenues	56,840	48,556
Cost of net revenues:
IoT & Mobile Solutions	32,864	27,600
Enterprise SaaS Solutions	6,749	6,196
Total cost of net revenues	39,613	33,796
Gross profit	17,227	14,760
Operating costs and expenses:
Research and development	8,224	3,485
Sales and marketing	8,755	6,391
General and administrative	7,162	6,474
Amortization of purchased intangible assets	826	871
Total operating costs and expenses	24,967	17,221
Operating loss	(7,740)	(2,461)
Other income (expense):
Inducement expense	(7,933)	0
Interest expense, net	(3,380)	(5,075)
Other income, net	978	313
Loss before income taxes	(18,075)	(7,223)
Income tax provision	91	248
Net loss	(18,166)	(7,471)
Less: Net income attributable to noncontrolling interests	(32)	(14)
Net loss attributable to Inseego Corp.	(18,198)	(7,485)
Series E preferred stock dividends	(392)	0
Net loss attributable to common shareholders	$ (18,590)	$ (7,485)
Net loss per common share:
Basic and diluted (in dollars per share)	$ (0.20)	$ (0.10)
Weighted-average shares used in computation of net loss per common share:
Basic and diluted (in shares)	90,874,347	74,366,879

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (18,166)	$ (7,471)
Foreign currency translation adjustment	(13,480)	(583)
Total comprehensive loss	$ (31,646)	$ (8,054)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Noncontrolling Interests	Series E Preferred Stock	Series E Preferred Stock Preferred Stock	Series E Preferred Stock Additional Paid-in Capital
Beginning balance at Dec. 31, 2018	$ (36,525)	$ 0	$ 74	$ 546,230	$ (4,877)	$ (577,817)	$ (135)
Beginning Balance (shares) at Dec. 31, 2018		0	73,980,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7,471)					(7,485)	14
Foreign currency translation adjustment	(583)				(583)
Exercise of stock options and vesting of restricted stock units	399		$ 1	398
Exercise of stock options and vesting of restricted stock units (shares)			497,000
Taxes withheld on net settled vesting of restricted stock units	(112)			(112)
Exercise of warrants	10,639		$ 4	10,635
Exercise of warrants (shares)			4,222,000
Share-based compensation	1,057			1,057
Ending balance at Mar. 31, 2019	(32,596)	$ 0	$ 79	558,208	(5,460)	(585,302)	(121)
Ending Balance (shares) at Mar. 31, 2019		0	78,699,000
Beginning balance at Dec. 31, 2019	(37,358)	$ 0	$ 82	584,862	(3,879)	(618,303)	(120)
Beginning Balance (shares) at Dec. 31, 2019		10,000	81,974,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(18,166)					(18,198)	32
Foreign currency translation adjustment	(13,480)				(13,480)
Exercise of stock options and vesting of restricted stock units	49		$ 0	49
Exercise of stock options and vesting of restricted stock units (shares)			129,000
Taxes withheld on net settled vesting of restricted stock units	(73)			(73)
Issuance of shares								$ 27,330		$ 27,330
Issuance of shares (shares)									27,000
Issuance of common shares in connection with the Notes Exchange	66,087		$ 14	66,073
Issuance of common shares in connection with the Notes Exchange (shares)			13,739,000
Exercise of warrants	$ 1,861		$ 0	1,861
Exercise of warrants (shares)	338,454		338,000
Share-based compensation	$ 1,553			1,553
Series E preferred stock dividends	0			392		(392)
Ending balance at Mar. 31, 2020	$ 27,803	$ 0	$ 96	$ 682,047	$ (17,359)	$ (636,893)	$ (88)
Ending Balance (shares) at Mar. 31, 2020		37,000	96,180,000

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (18,166)	$ (7,471)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	4,500	3,439
Provision for bad debts, net of recoveries	15	230
Provision for excess and obsolete inventory, net of recoveries	33	309
Share-based compensation expense	1,553	1,057
Amortization of debt discount and debt issuance costs	1,697	2,443
Fair value of inducement shares issued in Notes Exchange	7,933	0
Deferred income taxes	2	(18)
Other	(514)	120
Changes in assets and liabilities:
Accounts receivable	(8,590)	(3,290)
Inventories	8,876	(7,850)
Prepaid expenses and other assets	(983)	314
Accounts payable	1,921	3,509
Accrued expenses, income taxes, and other	2,051	2,175
Net cash provided by (used in) operating activities	328	(5,033)
Cash flows from investing activities:
Purchases of property, plant and equipment	(567)	(428)
Proceeds from the sale of property, plant and equipment	163	50
Additions to capitalized software development costs and purchases of intangible assets	(4,453)	(3,942)
Net cash used in investing activities	(4,857)	(4,320)
Cash flows from financing activities:
Gross proceeds received from issuance of Series E preferred stock	25,000	0
Proceeds from the exercise of warrants to purchase common stock	1,861	10,639
Net repayment of DigiCore bank and overdraft facilities	134	(35)
Principal payments under finance lease obligations	(657)	(268)
Taxes paid on vested restricted stock units, net of proceeds from stock option exercises	(24)	287
Net cash provided by financing activities	26,314	10,623
Effect of exchange rates on cash	(3,318)	(407)
Net increase in cash, cash equivalents and restricted cash	18,467	863
Cash, cash equivalents and restricted cash, beginning of period	12,074	31,076
Cash, cash equivalents and restricted cash, end of period	30,541	31,939
Cash paid (received) during the year for:
Interest	124	1,200
Income taxes	(352)
Income taxes		48
Supplemental disclosures of non-cash activities:
Transfer of inventories to rental assets	727	791
Capital expenditures financed through accounts payable	1,934	2,232
Right-of-use assets obtained in exchange for operating leases liabilities	4,217	3,554
Preferred Stock issued in extinguishment of term loan accrued interest	2,330	0
Debt discount and issuance costs extinguished in notes conversion	1,728	0
Inseego Notes conversion to equity	59,907	0
Novatel Wireless Notes conversion to equity	$ 250	$ 0

Basis of Presentation

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

The information contained herein has been prepared by Inseego Corp. (the “Company”) in accordance with the rules of the Securities and Exchange Commission (the “SEC”). The information at March 31, 2020 and the results of the Company’s operations for the three months ended March 31, 2020 and 2019 are unaudited. The condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring accruals, except otherwise disclosed herein, which are, in the opinion of management, necessary for a fair statement of the results of the interim periods presented. These unaudited condensed consolidated financial statements and notes hereto should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The year-end condensed consolidated balance sheet data as of December 31, 2019 was derived from the Company’s audited consolidated financial statements and may not include all disclosures required by accounting principles generally accepted in the United States. Certain prior period amounts were reclassified to conform to the current period presentation. These reclassifications did not affect total revenues, costs and expenses, net income (loss), assets, liabilities or stockholders’ deficit. Except as set forth below, the accounting policies used in preparing these unaudited condensed consolidated financial statements are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for any other interim period or for the year as a whole.

The global outbreak of COVID-19 was declared a pandemic by the World Health Organization and a national emergency by the U.S. Government in March 2020 and has negatively impacted the U.S. and global economy, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place,” and created significant disruption of the financial markets. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by the U.S. government, state and local government officials, and international governments to prevent disease spread, all of which are uncertain and cannot be predicted.

Liquidity

As of March 31, 2020, the Company had available cash and cash equivalents totaling $30.5 million and a working capital deficit of $12.4 million

In order to make continued investments in its growth plan, on March 6, 2020, the Company issued and sold 25,000 shares of Fixed-Rate Cumulative Perpetual Preferred Stock, Series E, par value $0.001 per share (the “Series E Preferred Stock”), for an aggregate purchase price of $25.0 million.

Under the terms of the indenture governing the Inseego Notes (as defined below), both the Company and the holders have rights with respect to conversion or redemption based on the value of the underlying stock. In the first quarter of 2020, $59.9 million of the Inseego Notes were exchanged for common stock.

Under the terms of the indenture governing the Inseego Notes, each holder of the notes has the right to require the Company to repurchase its notes for cash on June 15, 2020 (the “Optional Repurchase Date”). In March 2020, substantially all of the remaining Inseego Note holders waived this right.

Under the terms of the Credit Agreement (as defined below), interest is paid based on the three-month LIBOR plus 7.65 percent, payable in cash. In the first quarter of 2020, the Credit Agreement was amended such that any interest payment due will be made in shares of Series E Preferred Stock. In accordance with the amended Credit Agreement, the Company issued 2,330 shares of Series E Preferred Stock in satisfaction of accrued interest due under the Term Loan as of March 31, 2020.

The Credit Agreement has a maturity date of August 23, 2020. On March 10, 2020, the Company entered into a letter agreement (the “Letter Agreement”) with South Ocean Funding, LLC (“South Ocean”), the Lender holding all of the aggregate principal amount currently outstanding under the Credit Agreement, which provides: (i) that the Company and South Ocean will work together, in good faith, to reach an agreement to amend or refinance the Credit Agreement in order to extend the maturity of the Credit Agreement until a date after March 15, 2021; and (ii) should an agreement not be reached to amend or refinance the Credit Agreement prior to August 23, 2020, upon request of the Company, the maturity date of the Credit Agreement will be extended to no earlier than March 15, 2021.

Based on the above, the Company’s management does not believe that its current cash and cash equivalents, together with anticipated cash flows from operations, will be sufficient to meet its working capital needs, including any required repayment of the Credit Agreement, without additional sources of cash. These circumstances, unless mitigated, raise substantial doubt about

the Company’s ability to continue as a going concern. The Company’s plan to mitigate the substantial doubt as to its ability to continue as a going concern is through the restructuring of its existing debt or issuance of additional debt or equity securities.

The Company’s liquidity could be impaired if there is any interruption in its business operations, a material failure to satisfy its contractual commitments or a failure to generate revenue from new or existing products. Ultimately, the Company’s ability to attain profitability and to generate positive cash flow is dependent upon achieving a level of revenues adequate to support its evolving cost structure and increasing working capital needs. If events or circumstances occur such that the Company does not meet its operating plan as expected, the Company may be required to raise additional capital, reduce planned research and development activities, incur additional restructuring charges or reduce other operating expenses which could have an adverse impact on its ability to achieve its intended business objectives. There can be no assurance that any required or desired restructuring or financing will be available on terms favorable to the Company, or at all. In addition, in order to obtain additional borrowings, the Company must comply with certain requirements under the Credit Agreement and the Inseego Indenture (as defined below). If additional funds are raised by the issuance of equity securities or securities convertible into equity, Company stockholders could experience dilution of their ownership interests and securities issued may have rights senior to those of the holders of the Company’s common stock. If additional funds are raised by the issuance of debt securities, the Company may be subject to additional limitations on its operations.

Principles of Consolidation

The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly- and majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Segment Information

Management has determined that the Company has one reportable segment. The Chief Executive Officer, who is also the Chief Operating Decision Maker, does not manage any part of the Company separately, and the allocation of resources and assessment of performance is based solely on the Company’s consolidated operations and operating results.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ materially from these estimates. Significant estimates include revenue recognition, capitalized software costs, allowance for doubtful accounts receivable, provision for excess and obsolete inventory, valuation of intangible and long-lived assets, valuation of goodwill, royalty costs, accruals relating to litigation, income taxes, share-based compensation expense and the Company’s ability to continue as a going concern.

Revenue Recognition

Sources of Revenue

The Company generates revenue from a broad range of product sales including intelligent wireless hardware products for the worldwide mobile communications and industrial Internet of Things (“IoT”) markets. The Company’s products principally include intelligent mobile hotspots, wireless routers for IoT applications, USB modems, integrated telematics and mobile tracking hardware devices, which are supported by applications software and cloud services designed to enable customers to easily analyze data insights and configure and manage their hardware.

The Company classifies its revenues from the sale of its products and services into two distinct groupings, specifically IoT & Mobile Solutions and Enterprise SaaS Solutions. Both IoT & Mobile Solutions and Enterprise SaaS Solutions revenues include any hardware and software required for the respective solution.

IoT & Mobile Solutions. The IoT & Mobile Solutions portfolio is comprised of end-to-end edge to cloud solutions including 4G LTE mobile broadband gateways, routers, modems, hotspots, HD quality VoLTE based wireless home phones, cloud management software and an advanced portfolio of 5G products. The solutions are offered under the MiFi™ brand for consumer and enterprise markets, and under the Skyus brand for industrial IoT markets.

Enterprise SaaS Solutions. The Enterprise SaaS Solutions consist of various subscription offerings to gain access to the Company’s Ctrack telematics platforms, which provide fleet vehicle, aviation ground vehicle and asset tracking and performance information, and other telematics applications, and the Company’s Device Management System (“DMS”), a

hosted software-as-a-service (“SaaS”) platform that helps organizations manage the selection, deployment and spend of their customer’s wireless assets, helping them save money on personnel and telecom expenses.

Contracts with Customers

The Company routinely enters into a variety of agreements with customers, including quality agreements, pricing agreements and master supply agreements which outline the general commercial terms and conditions under which the Company does business with a specific customer, including shipping terms and pricing for the products and services that the Company offers. The Company also sells to some customers solely based on purchase orders. The Company has concluded, for the vast majority of its revenues, that its contracts with customers are either a purchase order or the combination of a purchase order with a master supply agreement.

The Company determines revenue recognition through the following five steps:


1)	identification of the contract, or contracts, with a customer;


2)	identification of the performance obligations in the contract;


3)	determination of the transaction price;


4)	allocation of the transaction price to the performance obligations in the contract; and


5)	recognition of revenue when, or as, performance obligations are satisfied.

The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

The Company’s performance obligations are established when a customer submits a purchase order notification (in writing, electronically or verbally) for goods and services, and the Company accepts the order. The Company identifies performance obligations as the delivery of the requested product or service in appropriate quantities and to the location specified in the customer’s contract and/or purchase order. The Company generally recognizes revenue upon the satisfaction of these criteria when control of the product or service has been transferred to the customer at which time it has an unconditional right to receive payment. The Company’s prices are fixed and have no history of being affected by contingent events that could impact the transaction price. The Company does not offer price concessions and does not accept payment that is less than the price stated when it accepts the purchase order.

Revenue Recognition

Revenue is recognized upon transfer of control of products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that may include various combinations of products and services which are generally capable of being distinct and accounted for as separate performance obligations.

Hardware. Hardware revenue from the sale of the Company’s IoT & Mobile Solutions devices is recognized when the Company transfers control to the customer, typically at the time when the product is delivered, shipped or installed at which time the title passes to the customer, and there are no further performance obligations with regards to the hardware device.

SaaS and Other Services. SaaS subscription revenue is recognized over time on a ratable basis over the contract term beginning on the date that its service is made available to the customer. Subscription periods range from monthly to multi-year, with the majority of contracts being one to three years. Telematics includes a device which collects and transmits the information from the vehicle or other asset. The Company’s customers have an option to purchase the monitoring device or lease it over the term of the contract. If the customer purchases the hardware device, the Company recognizes the revenue at a point in time as discussed above in the hardware revenue recognition disclosure. Prior to adoption of the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), on January 1, 2019, if the customer chose to lease the monitoring device, the Company accounted for the monitoring device lease as an operating lease, recognized the revenue for the monitoring device lease over the term of the contract and recorded such revenue in accordance with the previous lease accounting guidance in ASC 840, Leases. Under the new standard, because the Company’s rental asset lease contracts qualify as operating leases under ASC 842 and the contracts also include services to operate the underlying asset, and to maintain the asset, the Company has elected the practical expedient to combine the lease and the non-lease components because the service is the predominant element in the eyes of the customer and the pattern of service delivery is the same for both elements. The Company recognizes revenue over time on a ratable basis over the term of the contract.

Maintenance and support services revenue. Periodically, the Company sells separately-priced warranty contracts that extend beyond the Company’s base warranty period. The separately priced service contracts range from 12 months to 36 months. The Company typically receives payment at the inception of the contract and recognizes revenue as earned on a straight-line basis over the term of the contract.

Professional services revenue. From time to time, the Company enters into special engineering design service agreements. Revenues from engineering design services are specifically designed to meet specifications of a particular product, and therefore do not create an asset with an alternative use. The Company recognizes revenue based on the achievement of certain applicable milestones and the amount of payment the Company believes it is entitled to at the time.

With respect to revenue related to third party product sales or other arrangements that involve the services of another party, for which the Company does not control the sale or service and acts as an agent to the transaction, the Company recognizes revenue on a net basis. The portion of the gross amount billed to customers that is remitted by the Company to another party is not reflected as revenue.

Multiple Performance Obligations

The Company’s contracts with customers may include commitments to transfer multiple products and services to a customer. When hardware, software and services are sold in various combinations, judgment is required to determine whether each performance obligation is considered distinct and accounted for separately, or not distinct and accounted for together with other performance obligations.

In instances where the software elements included within hardware for various products are considered to be functioning together with non-software elements to provide the tangible product’s essential functionality, these arrangements are accounted for as a single distinct performance obligation.

Judgment is required to determine the stand-alone selling price (“SSP”) for each distinct performance obligation. When available, the Company uses observable inputs to determine SSP. In instances where SSP is not directly observable, such as when the Company does not sell the product or service separately, it determines the SSP based on a cost-plus model as market and other observable inputs are seldom present based on the proprietary nature of the Company’s products.

Contract Liabilities

Timing of revenue recognition may differ from the timing of invoicing to customers. If customers are invoiced for subscription services in advance of the service period, deferred revenue liabilities, or contract liabilities, are recorded. Deferred revenue liabilities, or contract liabilities, are also recorded when the Company collects payments in advance of performing the services.

Contract Assets

The Company capitalizes sales commissions earned by its sales force when they are considered to be incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit. There were no significant amounts of assets recorded related to contract costs as of March 31, 2020.

Applying the practical expedient in paragraph ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in selling, general, and administrative expenses.

Significant Judgments in the Application of the Guidance in ASC 606

Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. The Company considered the performance obligations in its customer master supply agreements and determined that, for the majority of its revenue, the Company generally satisfies performance obligations at a point in time upon delivery of the product to the customer.

Revenues from the Company’s SaaS subscription services represent a single promise to provide continuous access to its software solutions and their processing capabilities in the form of a service through one of the Company’s data centers or a hosted data center. As each day of providing access to the software is substantially the same, and the customer simultaneously receives and consumes the benefits as access is provided, the Company has determined that its subscription services arrangements include a single performance obligation comprised of a series of distinct services. The Company’s SaaS subscriptions also include an unspecified volume of call center support and any remote system diagnostic and software upgrades as needed. These services are combined with the recurring monthly subscription service since they are highly interrelated and interdependent. Revenue from the Company’s subscription services is recognized over time on a ratable basis over the contract term beginning on the date that the service is made available to the customer.

Shipping and Handling Charges

Fees charged to customers for shipping and handling of products are included in product revenues, and costs for shipping and handling of products are included as a component of cost of sales.

New Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB, which are adopted by the Company as of the specified date. Unless otherwise discussed, management believes the impact of recently issued standards, some of which are not yet effective, will not have a material impact on the Company’s consolidated financial statements upon adoption.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify the accounting for income taxes. The amendment 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. The amendment also clarifies existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company early adopted the pronouncement effective for the fourth quarter 2019, the impact of which was not material to the 2019 consolidated financial statements.

In June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted. There was no impact from the adoption of this pronouncement to the Company’s condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less are accounted for similar to previous guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to previous guidance for sales-type leases, direct financing leases and operating leases. The Company adopted the standard on January 1, 2019, the date it became effective for public companies, using the modified retrospective approach whereby the cumulative effect of adoption was recognized on the adoption date and prior periods were not restated. There was no net cumulative effect adjustment to retained earnings as of January 1, 2019 as a result of this adoption. Upon adoption, the Company elected the package of practical expedients permitted within the standard, which among other things, allows for the carryforward of historical lease

classification. The Company also elected the practical expedient provided in a subsequent amendment to the standard that removed the requirement to separate lease and non-lease components, provided certain conditions were met. Refer to Note 10, Leases, for the impact of the adoption of this guidance on the Company’s condensed consolidated financial statements.

Financial Statement Details

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Details

Inventories, net

Inventories, net, consist of the following (in thousands):



	March 31, 2020		December 31, 2019
Finished goods	$	9,602	$	21,229
Raw materials and components	4,657		4,061
Total inventories, net	$	14,259	$	25,290

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):



	March 31, 2020		December 31, 2019
Royalties	$	1,646	$	1,415
Payroll and related expenses	3,572		2,716
Professional fees	280		483
Accrued interest	713		1,543
Deferred revenue	2,317		2,235
Operating lease liabilities	1,121		1,101
Acquisition-related liabilities	1,000		1,000
Other	6,969		7,368
Total accrued expenses and other current liabilities	$	17,618	$	17,861

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands):



	March 31, 2020		December 31, 2019		March 31, 2019		December 31, 2018
Cash and cash equivalents	$	30,541	$	12,074	$	31,878	$	31,015
Restricted cash	—		—		61		61
Total cash, cash equivalents and restricted cash	$	30,541	$	12,074	$	31,939	$	31,076

Fair Value Measurement of Assets and Liabilities

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model.

The Company classifies inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) and is defined as follows:


Level 1:	Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2:

Pricing inputs include benchmark yields, trade data, reported trades and broker dealer quotes, two-sided markets and industry and economic events, yield to maturity, Municipal Securities Rule Making Board reported trades and vendor trading platform data. Level 2 includes those financial instruments that are valued using various pricing services and broker pricing information including Electronic Communication Networks and broker feeds.


Level 3:	Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions.

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There have been no transfers of assets or liabilities between fair value measurement classifications during the three months ended March 31, 2020.

The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis in accordance with the authoritative guidance for fair value measurements as of March 31, 2020 (in thousands):



	Balance as of March 31, 2020		Level 1
Assets:
Cash equivalents
Money market funds	$	126	$	126
Total cash equivalents	$	126	$	126



	Balance as of December 31, 2019		Level 1
Assets:
Cash equivalents
Money market funds	$	126	$	126
Total cash equivalents	$	126	$	126

Other Financial Instruments

The Company’s financial assets and liabilities are carried at fair value or at amounts that, because of their short-term nature, approximate current fair value, with the exception of its $45.0 million in Convertible Notes (as defined below) (see Note 4, Debt). The Company carries its Convertible Notes at amortized cost. The debt and equity components of the Convertible Notes were measured using Level 3 inputs and are not measured on a recurring basis. It is not practicable to determine the fair value of the Convertible Notes due to the lack of information available to calculate the fair value of such notes. The carrying value of the liability component of the Convertible Notes was $44.2 million and $101.3 million as of March 31, 2020 and December 31, 2019, respectively.

Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

Term Loan

On August 23, 2017, the Company and certain of its direct and indirect subsidiaries (the “Guarantors”) entered into a credit agreement (the “Credit Agreement”) with Cantor Fitzgerald Securities, as administrative agent and collateral agent, and

certain funds managed by Highbridge Capital Management, LLC, as lenders (the “Lenders”). Pursuant to the Credit Agreement, the Lenders provided the Company with a term loan in the principal amount of $48.0 million (the “Term Loan”) with a maturity date of August 23, 2020 (the “Maturity Date”). Related parties currently hold 100% of the principal amount.

In conjunction with the closing of the Term Loan, the Company received proceeds of $46.9 million, $35.0 million of which was funded to the Company in cash on the closing date, net of an original issue discount and commitment fee, and the remaining $11.9 million of which was funded through the Company’s repurchase and cancellation of approximately $14.9 million of its outstanding Inseego Notes pursuant to the terms of a note purchase agreement, dated August 23, 2017, by and among the Company and the lenders. The Company paid issuance costs of approximately $0.5 million. Additionally, the Company issued shares of its common stock and accrued an exit fee, which, when combined with the original debt discount and commitment fee, resulted in a total debt discount of approximately $4.0 million.

The Term Loan is secured by a first priority lien on substantially all of the assets of the Company and the Guarantors, including equity interests in certain of the Company’s direct and indirect subsidiaries, in each case subject to certain customary exceptions and permitted liens. The Credit Agreement includes customary representations and warranties, a material adverse change clause, as well as customary reporting and financial covenants, including a restriction on the Company’s capital expenditures. The Company obtained a waiver of the capital expenditure restriction from the lender during the quarter ended March 31, 2020. As a result of the waiver, as of March 31, 2020, the Company was in compliance with all financial covenants under the Credit Agreement. On March 9, 2020, the Company and the lender entered into an amendment to the Credit Agreement, which among other things, amended certain financial covenants set forth therein and permits the use of the Company’s Series E Preferred Stock to make certain payments, including interest payments, due thereunder.

The Term Loan bears interest at a rate per annum equal to the three-month LIBOR, but in no event less than 1.00%, plus 7.625% (9.238% at March 31, 2020). Interest on the Term Loan is payable on the last business day of each calendar quarter and on the Maturity Date. Principal on the Term Loan is payable on the Maturity Date.

On March 10, 2020, the Company entered into a letter agreement (the “Letter Agreement”) with South Ocean, the lender holding all of the aggregate principal amount currently outstanding under the Credit Agreement, which provides: (i) that the Company and South Ocean will work together, in good faith, to reach an agreement to amend or refinance the Credit Agreement in order to extend the Maturity Date of the Credit Agreement until a date after March 15, 2021; and (ii) should an agreement not be reached to amend or refinance the Credit Agreement prior to August 23, 2020, upon request of the Company, the Maturity Date of the Credit Agreement will be extended to no earlier than March 15, 2021. Principal on the Term Loan is payable on the Maturity Date.

On March 31, 2020, Inseego Corp. issued 2,330 shares of Series E Preferred Stock to South Ocean, the lender holding all of the aggregate principal amount currently outstanding under the Credit Agreement in satisfaction of all accrued interest under the Credit Agreement. Accordingly, there was no interest payable on the Term Loan as of March 31, 2020.

The Term Loan consists of the following (in thousands):



	March 31, 2020			December 31, 2019
Principal	$	47,500		$	47,500
Less: unamortized debt discount and debt issuance costs	(589		)	(962		)
Net carrying amount	$	46,911		$	46,538

The effective interest rate on the Term Loan was 12.99% for the three months ended March 31, 2020. The following table sets forth total interest expense recognized related to the Term Loan (in thousands):



	Three Months Ended March 31,
	2020		2019
Contractual interest expense	$	1,151	$	1,180
Amortization of debt discount	333		333
Amortization of debt issuance costs	40		40
Total interest expense	$	1,524	$	1,553

Convertible Senior Notes

Novatel Wireless Notes

On June 10, 2015, Novatel Wireless, Inc., a wholly owned subsidiary of Inseego Corp. (“Novatel Wireless”), issued $120.0 million of 5.50% convertible senior notes due 2020 (the “Novatel Wireless Notes”), which were governed by the terms of an indenture, dated June 10, 2015, between Novatel Wireless, as issuer, Inseego and Wilmington Trust, National Association, as trustee, as amended by certain supplemental indentures (the “Novatel Indenture”). On January 9, 2017, in connection with the settlement of an exchange offer and consent solicitation with respect to the Novatel Wireless Notes (the “Note Exchange”), approximately $119.8 million aggregate principal amount of outstanding Novatel Wireless Notes that were validly tendered and accepted for exchange and subsequently canceled. In February 2020, the holders of the remaining $250,000 of the aggregate principal amount of Novatel Wireless Notes that remained outstanding following the Note Exchange, converted their Novatel Wireless Notes into 50,000 shares of Company common stock, at the conversion price of $5.00 per share, in accordance with the terms of the Novatel Indenture. Accordingly, no Novatel Wireless Notes were outstanding as of March 31, 2020.

Inseego Notes

On January 9, 2017, in connection with the Note Exchange, the Company issued approximately $119.8 million aggregate principal amount of 5.50% convertible senior notes due 2022 (the “Inseego Notes”, and together with the Novatel Wireless Notes, the “Convertible Notes”).

The Inseego Notes are governed by the terms of an indenture, dated January 9, 2017 (as amended by certain supplemental indentures,the “Inseego Indenture”), between the Company, as issuer, and Wilmington Trust, National Association, as trustee (the “Trustee”). The Inseego Notes are senior unsecured obligations of the Company and bear interest at a rate of 5.50% per year, payable semi-annually in arrears on June 15 and December 15 of each year. The Inseego Notes will mature on June 15, 2022, unless earlier converted, redeemed or repurchased.

The Inseego Notes will be convertible by the holders into cash, shares of the Company’s common stock, or a combination thereof, at the election of the Company, at any time on or after December 15, 2021 and prior to the close of business on the business day immediately preceding the maturity date.

Prior to the close of business on the business day immediately preceding December 15, 2021, holders may convert their Inseego Notes at their option only under the following circumstances:


(i)	during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter equals or exceeds 130% of the conversion price on such trading day;

(ii)

during the five consecutive business day period immediately after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of the Inseego Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price per share of the Company’s common stock and the conversion rate on each such trading day;


(iii)	upon the occurrence of certain corporate events specified in the Inseego Indenture; or


(iv)	if the Company has called the Inseego Notes for redemption.

Because the sale price condition (as defined in the Inseego Indenture), was satisfied during December 2019, the Inseego Notes were convertible during the first quarter of 2020. The sale price condition was not satisfied as of March 31, 2020. Accordingly, the Inseego Notes are not currently convertible.

The conversion rate for the Inseego Notes is 212.7660 shares of common stock per $1,000 principal amount of the Inseego Notes, which corresponds to a conversion price of $4.70 per share of the Company’s common stock. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of stock dividends and payment of cash dividends.

The Company may redeem all or a portion of the Inseego Notes at its option if the last reported sale price per share of the Company’s common stock equals or exceeds 140% of the conversion price for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately prior to the date on which the Company provides written notice of redemption, at a redemption price equal to 100% of the principal amount of the Inseego Notes to be redeemed, plus any accrued and unpaid interest on such Inseego Notes, subject to the right of holders as of

the close of business on an interest record date to receive the related interest. In addition, if the Company calls the Inseego Notes for redemption, a “make-whole fundamental change” (as defined in the Inseego Indenture) will be deemed to occur. As a result, the Company will, in certain circumstances, increase the conversion rate for holders who convert their Inseego Notes in connection with such redemption.

The Inseego Notes are subject to repurchase by the Company at the election of each holder on June 15, 2020 (the “Optional Repurchase Date”) at a repurchase price in cash equal to 100% of the principal amount of the Inseego Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the Optional Repurchase Date, subject to the right of holders of the Inseego Notes on a record date to receive interest through the corresponding interest payment date. On March 6, 2020, the holders of substantially all of the outstanding indebtedness under the notes agreed to waive their optional right to require the Company to repurchase the notes on the Optional Repurchase Date.

On March 3, 2020 the Company and the Trustee entered into a First Supplemental Indenture which eliminated certain covenants in the Inseego Indenture prohibiting the incurrence of certain indebtedness and certain restricted payments.

The Inseego Indenture also provides for customary events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the Trustee, by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Inseego Notes, by notice to the Company and the Trustee, may declare the principal and accrued and unpaid interest on the outstanding Inseego Notes to be immediately due and payable. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal and accrued and unpaid interest of the Inseego Notes will automatically become immediately due and payable. Notwithstanding the foregoing, the Inseego Indenture provides that, to the extent the Company elects and for up to 60 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants consists exclusively of the right to receive special interest on the Inseego Notes at a rate equal to 0.50% per annum on the principal amount of the outstanding Inseego Notes.

Because the exchange of the Novatel Wireless Notes for the Inseego Notes described above was treated as a debt modification in accordance with applicable FASB guidance (it was between a parent and a subsidiary company and for substantially identical notes), the Company did not recognize a gain or loss with respect to the issuance of the Inseego Notes. In accordance with authoritative guidance, the Company recognized $3.6 million as an additional component of debt discount and additional paid-in capital attributed to the increase in the fair value of the embedded conversion feature of the Inseego Notes before and after modification. The Company will amortize the debt discount on the Inseego Notes as a component of interest expense using the effective interest method through June 2020.

During the three months ended March 31, 2020, the Company entered into privately-negotiated exchange agreements with certain investors holding the Inseego Notes. Pursuant to the exchange agreements, the investors exchanged $59.9 million in aggregate principal amount of outstanding Inseego Notes for 13,688,876 shares of the Company’s common stock, par value $0.001 per share. The investors agreed to waive any accrued but unpaid interest on the exchanged Inseego Notes.

Included in the 13,688,876 shares of common stock issued in the exchange transactions described above were 942,706 shares valued at $7.9 million on the date of issuance at fair value, which were issued pursuant to the terms of the privately-negotiated exchange agreements and were in excess of the consideration issuable under the original conversion terms of the exchanged Inseego Notes. ASC 470 - “Debt” requires the recognition through earnings of an inducement charge equal to the fair value of the consideration delivered in excess of the consideration issuable under the original conversion terms. This resulted in a non-cash charge of $7.9 million for the three months ended March 31, 2020, which was recorded as inducement expense in the condensed consolidated statement of operations.

At March 31, 2020, substantially all of the Inseego Notes were held by related parties

The Convertible Notes consist of the following (in thousands):



	March 31, 2020			December 31, 2019
Liability component:
Principal	$	44,968		$	105,125
Less: unamortized debt discount and debt issuance costs	(738		)	(3,791		)
Net carrying amount	$	44,230		$	101,334

The effective interest rate on the liability component of the Convertible Notes was 10.76% for the three months ended March 31, 2020. The following table sets forth total interest expense recognized related to the Convertible Notes (in thousands):



	Three Months Ended March 31,
	2020		2019
Contractual interest expense	$	618	$	1,446
Amortization of debt discount	1,252		1,956
Amortization of debt issuance costs	72		114
Total interest expense	$	1,942	$	3,516

Share-based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-based Compensation

The Company included the following amounts for share-based compensation awards in the unaudited condensed consolidated statements of operations (in thousands):



	Three Months Ended March 31,
	2020		2019
Cost of revenues	$	228	$	123
Research and development	292		175
Sales and marketing	463		214
General and administrative	570		545
Total	$	1,553	$	1,057

Stock Options

The following table summarizes the Company’s stock option activity:



Outstanding — December 31, 2019	9,044,304
Granted	939,750
Exercised	(30,079	)
Canceled	(176,687	)
Outstanding — March 31, 2020	9,777,288
Exercisable — March 31, 2020	3,984,801

At March 31, 2020, total unrecognized compensation expense related to stock options was $11.7 million, which is expected to be recognized over a weighted-average period of 2.87 years.

Restricted Stock Units

The following table summarizes the Company’s restricted stock unit (“RSU”) activity:



Non-vested — December 31, 2019	400,315
Granted	46,156
Vested	(151,467	)
Non-vested — March 31, 2020	295,004

At March 31, 2020, total unrecognized compensation expense related to RSUs was $0.7 million, which is expected to be recognized over a weighted-average period of 1.33 years.

Earnings Per Share	3 Months Ended
Earnings Per Share	Mar. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net income (loss) attributable to Inseego Corp. by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Potentially dilutive securities (consisting primarily of the Convertible Notes calculated using the if- converted and treasury stock method and warrants, stock options and RSUs calculated using the treasury stock method) are excluded from the diluted EPS computation in loss periods and when the applicable exercise price is greater than the market price on the period end date as their effect would be anti-dilutive. For the three months ended March 31, 2020, the computation of diluted EPS excluded 22,028,548 shares related to the Convertible Notes, warrants, stock options and RSUs as their effect would have been anti-dilutive. For the three months ended March 31, 2019, the computation of diluted EPS excluded 35,706,077 shares primarily related to the Convertible Notes, warrants, stock options and RSUs as their effect would have been anti-dilutive.

Private Placements	3 Months Ended
Private Placements	Mar. 31, 2020
Equity [Abstract]
Private Placements	Private Placements Common Stock On August 6, 2018, the Company completed a private placement of 12,062,000 shares of common stock, par value $0.001 per share, and warrants to purchase an additional 4,221,700 shares of common stock (the “2018 Warrants”), subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions, to certain accredited investors. On March 28, 2019, the 2018 Warrants were exercised at an exercise price of $2.52 per share, for aggregate cash proceeds to the Company of approximately $10.6 million. In connection with the exercise of the 2018 Warrants, on March 28, 2019, the Company issued additional warrants to purchase 2,500,000 shares of common stock (the “2019 Warrants”) to the accredited investors. Each 2019 Warrant has an initial exercise price of $7.00 per share, subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions, will be exercisable at any time on or after September 28, 2019, and will expire on June 30, 2022. The 2019 Warrants may be exercisable on a cashless exercise basis if, and only if, the shares of common stock underlying such warrants cannot be immediately resold pursuant to an effective registration statement or Rule 144 of the Securities Act of 1933, as amended, without volume or manner of sale restrictions. During the first quarter of 2020, the Company received $1.9 million in net cash proceeds from the exercise of 338,454 of the Company’s common stock purchase warrants issued in 2015. The Company assessed the terms of the warrants under ASC 815, Derivatives and Hedges. Pursuant to this guidance, the Company has determined that the warrants do not require liability accounting and has classified the warrants as equity. Preferred Stock On August 9, 2019, the Company completed a private placement of 10,000 shares of Series E Preferred Stock for an aggregate purchase price of $10.0 million in accordance with the terms and provisions of a Securities Purchase Agreement, dated August 9, 2019, by and among the Company and certain accredited investors. Each share of Series E Preferred Stock entitles the holder thereof to receive, when, as and if declared by the Company out of assets legally available therefor, cumulative cash dividends at an annual rate of 9.00% payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, beginning on October 1, 2019. If dividends are not declared and paid in any quarter, or if such dividends are declared but holders of the Series E Preferred Stock elect not to receive them in cash, the quarterly dividend will be deemed to accrue and will be added to the Series E Base Amount. The Series E Preferred Stock has no voting rights unless otherwise required by law. The Series E Preferred Stock is perpetual and has no maturity date. However, the Company may, at its option, redeem shares of the Series E Preferred Stock, in whole or in part, on or after July 1, 2022, at a price equal to 110% of the Series E Base Amount plus (without duplication) any accrued and unpaid dividends. The “Series E Base Amount” means $1,000 per share, plus any accrued but unpaid dividends, whether or not declared by the Company’s board of directors, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series E Preferred Stock. In the event of a liquidation, dissolution or winding up of the Company, the holders of the Series E Preferred Stock will be entitled to receive, after satisfaction of liabilities to creditors and subject to the rights of holders of any senior securities, but before any distribution of assets is made to holders of common stock or any other junior securities, the Series E Base Amount plus (without duplication) any accrued and unpaid dividends. On March 6, 2020, the Company issued and sold an additional 25,000 shares of Series E Preferred Stock for an aggregate purchase price of $25.0 million. The terms of the Series E Preferred Stock are consistent with the terms described above. On March 31, 2020, Inseego Corp. issued 2,330 shares of Series E Preferred Stock to South Ocean, the lender holding all of the aggregate principal amount currently outstanding under the Credit Agreement, in satisfaction of certain deferred interest obligations pursuant to the terms and conditions of the Credit Agreement.

Geographic Information and Concentrations of Risk

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Geographic Information and Concentrations of Risk

Geographic Information

The following table details the Company’s net revenues by geographic region based on shipping destination (in thousands):



	Three Months Ended March 31,
	2020		2019
United States and Canada	$	42,350	$	33,494
South Africa	8,238		8,369
Other	6,252		6,693
Total	$	56,840	$	48,556

Concentrations of Risk

For the three months ended March 31, 2020 and 2019, one customer accounted for 53.4% and 53.3% of net revenues, respectively.

As of March 31, 2020, one customer accounted for 42.0% of accounts receivable, net. As of December 31, 2019, two customers accounted for 25.0% and 11.2% of accounts receivable, net, respectively.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. For example, the Company is currently named as a defendant or co-defendant in some patent infringement lawsuits in the U.S. and may be required to indirectly participate in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. Based on an evaluation of these matters and discussions with the Company’s intellectual property litigation counsel, the Company currently believes that liabilities arising from or sums paid in settlement of these existing matters, if any, would not have a material adverse effect on its consolidated results of operations or financial condition. On May 11, 2017, the Company initiated a lawsuit against the former stockholders of RER in the Court of Chancery of the State of Delaware seeking recovery of damages for civil conspiracy, fraud in the inducement, unjust enrichment and breach of fiduciary duty. On January 16, 2018, the former stockholders of RER filed an answer and counterclaim in the matter seeking recovery of certain deferred and earn-out payments allegedly owed to them by the Company in connection with the Company’s acquisition of RER. On July 26, 2018, the Company and the former stockholders of RER entered into a mutual general release and settlement agreement (the “Settlement Agreement”) pursuant to which the parties agreed to release all claims against each other and the Company agreed to (i) pay the former stockholders of RER $1.0 million in cash by August 17, 2018, (ii) immediately instruct its transfer agent to permit the transfer or sale of 973,333 shares of the Company’s common stock that the Company had issued to the former stockholders of RER in March 2017, (iii) immediately issue 500,000 shares of the Company’s common stock to the former stockholders of RER, (iv) within 12 months following the execution of the Settlement Agreement, deliver to the former stockholders of RER an additional $1.0 million in cash, common stock, or a combination thereof, at the Company’s option, (v) within 24 months following the execution of the Settlement Agreement deliver to the former stockholders of RER an additional $1.0 million in cash, common stock, or a combination thereof, at the Company’s option, and (vi) file one or more registration statements with respect to the resale of the shares of the Company’s common stock issued to the former stockholders of RER pursuant to the Settlement Agreement. The Company’s remaining liability under the Settlement Agreement at March 31, 2020 consists of approximately $1.0 million in current liabilities. Indemnification In the normal course of business, the Company periodically enters into agreements that require the Company to indemnify and defend its customers for, among other things, claims alleging that the Company’s products infringe third-party patents or other intellectual property rights. The Company’s maximum exposure under these indemnification provisions cannot be estimated but the Company does not believe that there are any matters individually or collectively that would have a material adverse effect on its consolidated results of operations or financial condition.

Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Lessee

The Company is a lessee in lease agreements for office space, automobiles and certain equipment. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The majority of the Company’s leases are comprised of fixed lease payments, with a small percentage of its real estate leases including lease payments subject to a rate or index which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under ASC 842, the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts based on a rate or index (fixed in substance) as stipulated in the lease contract.

None of the Company’s lease agreements contain any material residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements in existence at the date of adoption that were classified as operating leases under ASC 840 have been classified as operating leases under ASC 842. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.

Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives. As of March 31, 2020, the Company had right-of-use assets of $6.5 million and lease liabilities related to its operating leases of $6.7 million. Right-of-use assets are included in right-of-use assets, net, on the condensed consolidated balance sheet and lease liabilities related to the Company’s operating leases are included in accrued expenses and other liabilities and other long-term liabilities on the condensed consolidated balance sheet. As of March 31, 2020, the Company’s weighted-average remaining lease term and weighted-average discount rate related to its operating leases were 5.7 years and 9.1%, respectively.

During the three months ended March 31, 2020 and 2019, the cash paid for amounts included in the measurement of lease liabilities related to the Company’s operating leases was approximately $0.3 million and $0.5 million, respectively, which is included as an operating cash outflow within the consolidated statements of cash flows. During the three months ended March 31, 2020 and 2019, the operating lease costs related to the Company’s operating leases were approximately $0.3 million and $0.5 million, respectively, which is included in operating costs and expenses in the condensed consolidated statements of operations. During the three months ended March 31, 2020, the Company entered into a lease agreement for its new corporate offices for which a right-of-use asset was recorded in exchange for a new lease liability.

The future minimum payments under operating leases were as follows at March 31, 2020 (in thousands):



2020 (remainder)	$	1,073
2021	1,718
2022	1,463
2023	1,145
2024	1,015
Thereafter	2,425
Total minimum operating lease payments	8,839
Less: amounts representing interest	(2,115		)
Present value of net minimum operating lease payments	6,724
Less: current portion	(1,121		)
Long-term portion of operating lease obligations	$	5,603

The current and long term portion of operating lease obligations are classified within accrued expenses and other current liabilities and other long-term liabilities, respectively, on the condensed consolidated balance sheets.

Lessor

Prior to January 1, 2019, and as previously disclosed in the Company’s Form 10-K for the year ended December 31, 2018, the Company derived revenue from customers who lease the Company’s monitoring devices. The Company recorded such revenue in accordance with the previous lease accounting guidance ASC 840, Leases, and determined that the leases qualify as operating leases.

Monitoring device leases in which the Company serves as lessor are classified as operating leases. Accordingly, rental devices are carried at historical cost less accumulated depreciation and impairment, if any, and are included in rental assets, net, on the condensed consolidated balance sheets.

Since the lease components meet the criteria for an operating lease under ASC 842, the Company has elected the practical expedient to combine the lease and the non-lease components because the service is the predominant element in the eyes of the customer and the pattern of service delivery is the same for both elements. The Company will account for the combined component as a single performance obligation under ASC 606, Revenue from Contracts with Customers.

Leases

Lessee

The future minimum payments under operating leases were as follows at March 31, 2020 (in thousands):



2020 (remainder)	$	1,073
2021	1,718
2022	1,463
2023	1,145
2024	1,015
Thereafter	2,425
Total minimum operating lease payments	8,839
Less: amounts representing interest	(2,115		)
Present value of net minimum operating lease payments	6,724
Less: current portion	(1,121		)
Long-term portion of operating lease obligations	$	5,603

Lessor

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On March 27, 2020, the President signed into law the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which, along with earlier issued IRS guidance, provides for the deferral of certain taxes. The Company will continue to assess the impact of the CARES Act, as well as any ongoing government guidance related to the coronavirus disease 2019 (“COVID-19”) that may be issued. The Company’s income tax provision of $0.1 million and $0.2 million for the three months ended March 31, 2020 and 2019, respectively, primarily consists of foreign income taxes at certain of the Company’s international entities and minimum state taxes for its U.S.-based entities. The Company has income tax expense rather than an expected benefit based on statutory rates primarily due to full valuation allowances at most of its entities.

Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

Segment Information

Use of Estimates

Revenue Recognition

Sources of Revenue

Contracts with Customers

The Company determines revenue recognition through the following five steps:


1)	identification of the contract, or contracts, with a customer;


2)	identification of the performance obligations in the contract;


3)	determination of the transaction price;


4)	allocation of the transaction price to the performance obligations in the contract; and


5)	recognition of revenue when, or as, performance obligations are satisfied.

Revenue Recognition

Multiple Performance Obligations

Contract Liabilities

Contract Assets

Significant Judgments in the Application of the Guidance in ASC 606

New Accounting Pronouncements

Fair Value Measurement


Level 1:	Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2:


Level 3:	Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions.

Financial Statement Details (Tables)

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Inventories

Inventories, net, consist of the following (in thousands):



	March 31, 2020		December 31, 2019
Finished goods	$	9,602	$	21,229
Raw materials and components	4,657		4,061
Total inventories, net	$	14,259	$	25,290

Summary of Accrued Expenses

Accrued expenses and other current liabilities consist of the following (in thousands):



	March 31, 2020		December 31, 2019
Royalties	$	1,646	$	1,415
Payroll and related expenses	3,572		2,716
Professional fees	280		483
Accrued interest	713		1,543
Deferred revenue	2,317		2,235
Operating lease liabilities	1,121		1,101
Acquisition-related liabilities	1,000		1,000
Other	6,969		7,368
Total accrued expenses and other current liabilities	$	17,618	$	17,861

Restrictions on Cash and Cash Equivalents



	March 31, 2020		December 31, 2019		March 31, 2019		December 31, 2018
Cash and cash equivalents	$	30,541	$	12,074	$	31,878	$	31,015
Restricted cash	—		—		61		61
Total cash, cash equivalents and restricted cash	$	30,541	$	12,074	$	31,939	$	31,076

Schedule of Cash and Cash Equivalents



	March 31, 2020		December 31, 2019		March 31, 2019		December 31, 2018
Cash and cash equivalents	$	30,541	$	12,074	$	31,878	$	31,015
Restricted cash	—		—		61		61
Total cash, cash equivalents and restricted cash	$	30,541	$	12,074	$	31,939	$	31,076

Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Measured at Fair Value on a Recurring Basis



	Balance as of March 31, 2020		Level 1
Assets:
Cash equivalents
Money market funds	$	126	$	126
Total cash equivalents	$	126	$	126



	Balance as of December 31, 2019		Level 1
Assets:
Cash equivalents
Money market funds	$	126	$	126
Total cash equivalents	$	126	$	126

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Term Loan

The Term Loan consists of the following (in thousands):



	March 31, 2020			December 31, 2019
Principal	$	47,500		$	47,500
Less: unamortized debt discount and debt issuance costs	(589		)	(962		)
Net carrying amount	$	46,911		$	46,538

Interest Expense Summary

The following table sets forth total interest expense recognized related to the Term Loan (in thousands):



	Three Months Ended March 31,
	2020		2019
Contractual interest expense	$	1,151	$	1,180
Amortization of debt discount	333		333
Amortization of debt issuance costs	40		40
Total interest expense	$	1,524	$	1,553

The following table sets forth total interest expense recognized related to the Convertible Notes (in thousands):



	Three Months Ended March 31,
	2020		2019
Contractual interest expense	$	618	$	1,446
Amortization of debt discount	1,252		1,956
Amortization of debt issuance costs	72		114
Total interest expense	$	1,942	$	3,516

Convertible Debt

The Convertible Notes consist of the following (in thousands):



	March 31, 2020			December 31, 2019
Liability component:
Principal	$	44,968		$	105,125
Less: unamortized debt discount and debt issuance costs	(738		)	(3,791		)
Net carrying amount	$	44,230		$	101,334

Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Share-based Compensation

The Company included the following amounts for share-based compensation awards in the unaudited condensed consolidated statements of operations (in thousands):



	Three Months Ended March 31,
	2020		2019
Cost of revenues	$	228	$	123
Research and development	292		175
Sales and marketing	463		214
General and administrative	570		545
Total	$	1,553	$	1,057

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity:



Outstanding — December 31, 2019	9,044,304
Granted	939,750
Exercised	(30,079	)
Canceled	(176,687	)
Outstanding — March 31, 2020	9,777,288
Exercisable — March 31, 2020	3,984,801

Summary of Restricted Stock Unit Activity

The following table summarizes the Company’s restricted stock unit (“RSU”) activity:



Non-vested — December 31, 2019	400,315
Granted	46,156
Vested	(151,467	)
Non-vested — March 31, 2020	295,004

Geographic Information and Concentrations of Risk (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Schedule of Geographic Concentration of Net Revenues

The following table details the Company’s net revenues by geographic region based on shipping destination (in thousands):



	Three Months Ended March 31,
	2020		2019
United States and Canada	$	42,350	$	33,494
South Africa	8,238		8,369
Other	6,252		6,693
Total	$	56,840	$	48,556

Leases (Tables)

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of Future Minimum Payments Under Operating Leases

The future minimum payments under operating leases were as follows at March 31, 2020 (in thousands):



2020 (remainder)	$	1,073
2021	1,718
2022	1,463
2023	1,145
2024	1,015
Thereafter	2,425
Total minimum operating lease payments	8,839
Less: amounts representing interest	(2,115		)
Present value of net minimum operating lease payments	6,724
Less: current portion	(1,121		)
Long-term portion of operating lease obligations	$	5,603

Basis of Presentation - Narrative (Details) $ / shares in Units, $ in Thousands				3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 06, 2020 USD ($) $ / shares shares	Aug. 09, 2019 USD ($) shares	Mar. 31, 2020 USD ($) Segments $ / shares	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($)
Class of Stock [Line Items]
Cash and cash equivalents	$ 30,541			$ 30,541	$ 31,878	$ 12,074	$ 31,015
Working capital	$ (12,400)			$ (12,400)
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001			$ 0.001		$ 0.001
Preferred stock issued during the period				$ 25,000	$ 0
Number of reportable segments \| Segments				1
Series E Preferred Stock
Class of Stock [Line Items]
Issuance of shares (shares) \| shares		25,000	10,000
Preferred stock, par value (in dollars per share) \| $ / shares	$ 0.001	$ 0.001		$ 0.001		$ 0.001
Preferred stock issued during the period		$ 25,000	$ 10,000
Convertible Debt \| Inseego Notes
Class of Stock [Line Items]
Converted amount				$ 59,900
South Ocean Funding LLC \| Series E Preferred Stock
Class of Stock [Line Items]
Issuance of shares (shares) \| shares	2,330
LIBOR \| Credit Agreement
Class of Stock [Line Items]
Applicable margin on interest rate				7.65%

Financial Statement Details - Inventories, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 9,602	$ 21,229
Raw materials and components	4,657	4,061
Total inventories, net	$ 14,259	$ 25,290

Financial Statement Details - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Royalties	$ 1,646	$ 1,415
Payroll and related expenses	3,572	2,716
Professional fees	280	483
Accrued interest	713	1,543
Deferred revenue	2,317	2,235
Operating lease liabilities	1,121	1,101
Acquisition-related liabilities	1,000	1,000
Other	6,969	7,368
Total accrued expenses and other current liabilities	$ 17,618	$ 17,861

Financial Statement Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 30,541	$ 12,074	$ 31,878	$ 31,015
Restricted cash	0	0	61	61
Total cash, cash equivalents and restricted cash	$ 30,541	$ 12,074	$ 31,939	$ 31,076

Fair Value Measurement of Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of convertible notes	$ 44,230	$ 101,334
Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Principal	44,968	105,125
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of cash equivalents	126	126
Fair Value, Measurements, Recurring \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of cash equivalents	126	126
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of cash equivalents	126	126
Fair Value, Measurements, Recurring \| Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of cash equivalents	$ 126	$ 126

Debt - Term Loan (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 06, 2020	Aug. 09, 2019	Aug. 23, 2017	Dec. 31, 2019	Jan. 09, 2017
Debt Instrument [Line Items]
Accrued interest	$ 713				$ 1,543
Secured Debt \| Term Loan
Debt Instrument [Line Items]
Principal				$ 48,000
Proceeds from term loans				46,900
Proceeds from issuance of debt, portion funded in cash				35,000
Debt issuance costs				500
Debt discount on term loan				$ 4,000
Stated interest rate of debt issued	9.238%
Effective interest rate	12.99%
Secured Debt \| Term Loan \| LIBOR
Debt Instrument [Line Items]
Applicable margin on interest rate				7.625%
Secured Debt \| Term Loan \| LIBOR \| Minimum
Debt Instrument [Line Items]
Stated interest rate of debt issued				1.00%
Convertible Debt
Debt Instrument [Line Items]
Effective interest rate	10.76%
Convertible Debt \| Inseego Notes
Debt Instrument [Line Items]
Proceeds from issuance of debt, portion funded in repurchase and cancellation of debt				$ 11,900
Extinguishment of debt, amount				$ 14,900
Stated interest rate of debt issued						5.50%
Series E Preferred Stock
Debt Instrument [Line Items]
Issuance of shares (shares)		25,000	10,000
South Ocean Funding LLC \| Series E Preferred Stock
Debt Instrument [Line Items]
Issuance of shares (shares)	2,330

Debt - Components (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Convertible Debt
Debt Instrument [Line Items]
Principal	$ 44,968	$ 105,125
Less: unamortized debt discount and debt issuance costs	(738)	(3,791)
Net carrying amount	44,230	101,334
Term Loan \| Secured Debt
Debt Instrument [Line Items]
Principal	47,500	47,500
Less: unamortized debt discount and debt issuance costs	(589)	(962)
Net carrying amount	$ 46,911	$ 46,538

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	$ 618	$ 1,446
Amortization of debt discount	1,252	114
Amortization of debt issuance costs	72	1,956
Total interest expense	1,942	3,516
Term Loan \| Secured Debt
Debt Instrument [Line Items]
Contractual interest expense	1,151	1,180
Amortization of debt discount	333	333
Amortization of debt issuance costs	40	40
Total interest expense	$ 1,524	$ 1,553

Debt - Convertible Senior Notes (Details)			1 Months Ended	3 Months Ended
Debt - Convertible Senior Notes (Details)	Aug. 23, 2017 USD ($)	Jan. 09, 2017 USD ($) trading_day $ / shares shares	Feb. 29, 2020 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 31, 2019 USD ($)	Dec. 31, 2019 $ / shares	Aug. 06, 2018 $ / shares	Jun. 10, 2015 USD ($)
Debt Instrument [Line Items]
Conversion (shares) \| shares			50,000
Common stock, par value (in dollars per share) \| $ / shares				$ 0.001		$ 0.001	$ 0.001
Conversion price ($ per share) \| $ / shares			$ 5.00
Fair value of inducement shares issued in Notes Exchange				$ 7,933,000	$ 0
Convertible Debt
Debt Instrument [Line Items]
Effective interest rate				10.76%
Convertible Debt \| Novatel Wireless Notes
Debt Instrument [Line Items]
Principal								$ 120,000,000.0
Debt conversion amount		$ 119,800,000	$ 250,000
Stated interest rate of debt issued								5.50%
Converted amount		$ 119,800,000
Convertible Debt \| Inseego Notes
Debt Instrument [Line Items]
Extinguishment of debt, amount	$ 14,900,000
Stated interest rate of debt issued		5.50%
Conversion (shares) \| shares		212.7660		13,688,876
Common stock, par value (in dollars per share) \| $ / shares				$ 0.001
Converted amount				$ 59,900,000
Conversion price ($ per share) \| $ / shares		$ 4.70
Redemption price as a percentage of principal amount		100.00%
Minimum principal needed to call debt		25.00%
Redemption of principal		100.00%
Company elected remedy in default		60 days
Interest rate during remedy for default		0.50%
Increase in fair value of equity component		$ 3,600,000
Proceeds from issuance of debt, portion funded in repurchase and cancellation of debt	$ 11,900,000
Convertible Debt \| Inseego Notes \| Stock price exceeds 130% of conversion price
Debt Instrument [Line Items]
Threshold of trading days \| trading_day		20
Threshold of consecutive trading days		30
Threshold percentage of stock price trigger		130.00%
Convertible Debt \| Inseego Notes \| Debt trading price below product of stock price and conversion rate
Debt Instrument [Line Items]
Threshold of consecutive trading days		5
Threshold percentage of stock price trigger		98.00%
Number of consecutive business days		5
Convertible Debt \| Inseego Notes \| Stock price exceeds 140% of conversion price
Debt Instrument [Line Items]
Threshold of trading days \| trading_day		20
Threshold of consecutive trading days		30
Threshold percentage of stock price trigger		140.00%
Redemption price as a percentage of principal amount		100.00%
Convertible Debt \| Inseego Notes, additional conversions
Debt Instrument [Line Items]
Conversion (shares) \| shares				942,706
Converted amount				$ 7,900,000
Fair value of inducement shares issued in Notes Exchange				$ 7,900,000

Share-based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,553	$ 1,057
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	228	123
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	292	175
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	463	214
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	570	$ 545
Stock Options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized expense	$ 11,700
Recognition period	2 years 10 months 13 days
RSUs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized expense	$ 700
Recognition period	1 year 3 months 29 days

Share-based Compensation - Activity (Details)	3 Months Ended
Share-based Compensation - Activity (Details)	Mar. 31, 2020 shares
Stock Options
Outstanding — beginning balance	9,044,304
Granted	939,750
Exercised	(30,079)
Canceled	(176,687)
Outstanding — ending balance	9,777,288
Exercisable — ending balance	3,984,801
RSUs
Restricted Stock Units
Non-vested — beginning balance	400,315
Granted	46,156
Vested	(151,467)
Non-vested — ending balance	295,004

Earnings Per Share - Narrative (Details) - shares	3 Months Ended
Earnings Per Share - Narrative (Details) - shares	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	22,028,548	35,706,077

Private Placements (Details) - USD ($) $ / shares in Units, $ in Thousands						3 Months Ended
	Mar. 31, 2020	Mar. 06, 2020	Aug. 09, 2019	Mar. 28, 2019	Aug. 06, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Class of Stock [Line Items]
Number of shares issued (in shares)					12,062,000
Common stock, par value (in dollars per share)	$ 0.001				$ 0.001	$ 0.001		$ 0.001
Number of additional shares from warrants (in shares)				2,500,000	4,221,700
Initial exercise price of warrants (in dollars per share)				$ 7.00	$ 2.52
Proceeds from the exercise of warrants				$ 10,600		$ 1,861	$ 10,639
Exercise of warrants (shares)						338,454
Preferred stock issued during the period						$ 25,000	$ 0
Series E Preferred Stock
Class of Stock [Line Items]
Issuance of shares (shares)		25,000	10,000
Preferred stock issued during the period		$ 25,000	$ 10,000
Dividend rate			9.00%
Redemption price, percent			110.00%
Base amount (in dollars per share)	$ 1,000		$ 1,000			$ 1,000		$ 1,000
Series E Preferred Stock \| South Ocean Funding LLC
Class of Stock [Line Items]
Issuance of shares (shares)	2,330

Geographic Information and Concentrations of Risk - Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 56,840	$ 48,556
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	42,350	33,494
South Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	8,238	8,369
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 6,252	$ 6,693

Geographic Information and Concentrations of Risk - Narrative (Details) - Customer Concentration	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Net Revenues \| Customer One
Segment Reporting Information [Line Items]
Concentration percentage	53.40%	53.30%
Accounts Receivable \| Customer One
Segment Reporting Information [Line Items]
Concentration percentage	42.00%	25.00%
Accounts Receivable \| Customer Two
Segment Reporting Information [Line Items]
Concentration percentage		11.20%

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Jul. 26, 2018	Mar. 15, 2017	Mar. 31, 2020
Loss Contingencies [Line Items]
Amount awarded to other party in settlement	$ 1.0
Issuance of common shares in litigation settlement (in shares)	500,000
Additional amount to be awarded to other party in settlement, within 12 months	$ 1.0
Additional amount to be awarded to other party in settlement, within 24 months	$ 1.0
Acquisition-related liabilities, current			$ 1.0
Former Stockholders
Loss Contingencies [Line Items]
Stock issued for acquisition (shares)		973,333

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Leases [Abstract]
Right-of-use assets, net	$ 6,476		$ 2,657
Operating lease liabilities	$ 6,724
Weighted-average remaining lease term	5 years 8 months 12 days
Weighted-average discount rate	9.10%
Operating lease payments	$ 300	$ 500
Operating lease costs	$ 300	$ 500

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
2020 (remainder)	$ 1,073
2021	1,718
2022	1,463
2023	1,145
2024	1,015
Thereafter	2,425
Total minimum operating lease payments	8,839
Less: amounts representing interest	(2,115)
Present value of net minimum operating lease payments	6,724
Less: current portion	(1,121)	$ (1,101)
Long-term portion of operating lease obligations	$ 5,603

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax provision	$ 91	$ 248