0001022652-21-000092 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2021	Nov. 01, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
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	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		105,126,385
Entity Central Index Key	0001022652
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 58,114	$ 40,015
Restricted cash	3,495	0
Accounts receivable, net of allowance for doubtful accounts of $402 and $1,384, respectively	23,065	29,940
Inventories	33,701	33,952
Prepaid expenses and other	11,666	10,201
Total current assets	130,041	114,108
Property, plant and equipment, net of accumulated depreciation of $25,902 and $21,715, respectively	8,705	13,699
Rental assets, net of accumulated depreciation of $17,443 and $15,754, respectively	4,487	6,109
Intangible assets, net of accumulated amortization of $44,085 and $63,020, respectively	47,710	51,487
Goodwill	21,196	32,511
Right-of-use assets, net	8,010	9,092
Other assets	380	388
Total assets	220,529	227,394
Current liabilities:
Accounts payable	44,451	52,339
Accrued expenses and other current liabilities	24,403	23,373
Total current liabilities	68,854	75,712
Long-term liabilities:
2025 Notes, net	157,879	165,147
Deferred tax liabilities, net	1,042	4,505
Other long-term liabilities	8,086	9,929
Total liabilities	235,861	255,293
Commitments and contingencies
Stockholders’ deficit:
Series E Preferred stock, par value $0.001; 39,500 shares designated, 25,000 and 35,000 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, 104,950,049 and 99,399,029 shares issued and outstanding, respectively	105	99
Additional paid-in capital	766,736	711,487
Accumulated other comprehensive loss	(7,242)	(6,972)
Accumulated deficit	(774,931)	(732,422)
Total stockholders’ deficit attributable to Inseego Corp.	(15,332)	(27,808)
Noncontrolling interests	0	(91)
Total stockholders’ deficit	(15,332)	(27,899)
Total liabilities and stockholders’ deficit	$ 220,529	$ 227,394

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Allowance for doubtful accounts	$ 402	$ 1,384
Accumulated depreciation, Property, plant and equipment	25,902	21,715
Accumulated depreciation, Rental assets	17,443	15,754
Accumulated amortization, Intangible assets	$ 44,085	$ 63,020
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)	104,950,049	99,399,029
Common stock, shares outstanding (in shares)	104,950,049	99,399,029
Series E preferred stock
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	39,500	39,500
Preferred stock issued (in shares)	25,000	35,000
Preferred stock, shares outstanding (in shares)	25,000	35,000
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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net revenues:
IoT & Mobile Solutions	$ 56,975	$ 77,342	$ 151,770	$ 189,071
Enterprise SaaS Solutions	9,242	12,898	37,737	38,698
Total net revenues	66,217	90,240	189,507	227,769
Cost of net revenues:
IoT & Mobile Solutions	43,595	60,135	116,777	148,414
Enterprise SaaS Solutions	3,679	4,935	14,965	14,958
Total cost of net revenues	47,274	65,070	131,742	163,372
Gross profit	18,943	25,170	57,765	64,397
Operating costs and expenses:
Research and development	12,626	10,684	38,954	29,448
Sales and marketing	9,172	8,446	29,997	25,849
General and administrative	6,599	8,699	22,657	23,257
Amortization of purchased intangible assets	519	779	1,649	2,358
Impairment of capitalized software	0	0	1,197	0
Total operating costs and expenses	28,916	28,608	94,454	80,912
Operating loss	(9,973)	(3,438)	(36,689)	(16,515)
Other income (expense):
Gain on sale of Ctrack South Africa	5,262	0	5,262	0
Loss on debt conversion and extinguishment, net	0	(1,180)	(432)	(76,354)
Interest expense, net	(1,655)	(1,657)	(5,178)	(8,197)
Other income (expense), net	(828)	1,053	291	2,818
Loss before income taxes	(7,194)	(5,222)	(36,746)	(98,248)
Income tax (benefit) provision	(4)	217	445	193
Net loss	(7,190)	(5,439)	(37,191)	(98,441)
Less: Net income attributable to noncontrolling interests	0	(3)	(214)	(29)
Net loss attributable to Inseego Corp.	(7,190)	(5,442)	(37,405)	(98,470)
Series E preferred stock dividends and deemed dividends from the preferred stock exchange	(1,843)	(829)	(3,596)	(2,056)
Net loss attributable to common stockholders	$ (9,033)	$ (6,271)	$ (41,001)	$ (100,526)
Net loss per common share:
Basic (in dollars per share)	$ (0.09)	$ (0.06)	$ (0.40)	$ (1.06)
Diluted (in dollars per share)	$ (0.09)	$ (0.06)	$ (0.40)	$ (1.06)
Weighted-average shares used in computation of net loss per common share:
Basic (in shares)	103,430,083	98,016,798	102,586,121	95,136,713
Diluted (in shares)	103,430,083	98,016,798	102,586,121	95,136,713

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,190)	$ (5,439)	$ (37,191)	$ (98,441)
Foreign currency translation adjustment	(2,571)	1,170	(1,878)	(10,734)
Release of cumulative foreign currency translation adjustments as a result of the sale of Ctrack South Africa	1,608	0	1,608	0
Total comprehensive loss	(8,153)	(4,269)	(37,461)	(109,175)
Comprehensive income attributable to noncontrolling interests	0	(3)	(214)	(29)
Comprehensive loss attributable to Inseego Corp.	$ (8,153)	$ (4,272)	$ (37,675)	$ (109,204)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

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+ Details

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Total	2022 Notes	2025 Notes	Series E preferred stock	Common shares	Preferred Stock	Preferred Stock Series E preferred stock	Common Stock	Common Stock 2022 Notes	Common Stock 2025 Notes	Common Stock Common shares	Additional Paid-in Capital	Additional Paid-in Capital 2022 Notes	Additional Paid-in Capital 2025 Notes	Additional Paid-in Capital Series E preferred stock	Additional Paid-in Capital Common shares	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Noncontrolling Interests
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		81,974
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(98,441)																	(98,470)	29
Foreign currency translation adjustment	(10,734)																(10,734)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	3,198							$ 2				3,196
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)								1,471
Taxes withheld on net settled vesting of restricted stock units	(326)											(326)
Issuance of common shares under settlement agreement	972											972
Issuance of common shares under settlement agreement (in shares)								90
Issuance of common shares in connection with conversion or exchange of notes		$ 66,088	$ 14,354						$ 14	$ 1			$ 66,074	$ 14,353
Issuance of common shares in connection with conversion or exchange of notes (shares)									13,739	1,177
Issuance of shares				$ 25,000											$ 25,000
Issuance of shares (shares)							25
Share-based compensation	8,188											8,188
Series E preferred stock dividends	0											2,056						(2,056)
Issuance of Series E preferred stock in lieu of interest				2,330											2,330
Issuance of Series E preferred stock in lieu of interest (shares)							2
Repurchase of Series E preferred stock				$ (2,354)											$ (2,354)
Repurchase of Series E preferred stock (shares)							(2)
Exercise of warrants	1,861											1,861
Exercise of warrants (shares)								338
Ending balance at Sep. 30, 2020	(27,222)					$ 0		$ 99				706,212					(14,613)	(718,829)	(91)
Ending Balance (shares) at Sep. 30, 2020						35		98,789
Beginning balance at Jun. 30, 2020	(41,928)					$ 0		$ 97				686,410					(15,783)	(712,558)	(94)
Beginning Balance (shares) at Jun. 30, 2020						35		97,018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(5,439)																	(5,442)	3
Foreign currency translation adjustment	1,170																1,170
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	1,486							$ 1				1,485
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)								504
Taxes withheld on net settled vesting of restricted stock units	(45)											(45)
Issuance of common shares under settlement agreement	972											972
Issuance of common shares under settlement agreement (in shares)								90
Issuance of common shares in connection with conversion or exchange of notes		1	$ 14,354							$ 1			1	$ 14,353
Issuance of common shares in connection with conversion or exchange of notes (shares)										1,177
Share-based compensation	2,207											2,207
Series E preferred stock dividends	0											829						(829)
Ending balance at Sep. 30, 2020	(27,222)					$ 0		$ 99				706,212					(14,613)	(718,829)	(91)
Ending Balance (shares) at Sep. 30, 2020						35		98,789
Beginning balance at Dec. 31, 2020	(27,899)					$ 0		$ 99				711,487					(6,972)	(732,422)	(91)
Beginning Balance (shares) at Dec. 31, 2020						35		99,399
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(37,191)																	(37,405)	214
Foreign currency translation adjustment	(1,878)																(1,878)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	3,537							$ 2				3,535
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)								2,081
Taxes withheld on net settled vesting of restricted stock units	(1,105)											(1,105)
Issuance of common shares in connection with conversion or exchange of notes		$ 5,382							$ 0				$ 5,382
Issuance of common shares in connection with conversion or exchange of notes (shares)									429
Issuance of shares					$ 29,370						$ 2					$ 29,368
Issuance of shares (shares)											1,516
Release of cumulative foreign currency translation adjustments as a result of sale of Ctrack South Africa	(140)											8					1,608	(1,748)	(8)
Share-based compensation	14,467											14,467
Series E preferred stock dividends	0											2,492						(2,492)
Series E preferred stock exchange	0							$ 2				1,102						(1,104)
Preferred stock exchange (shares)						(10)		1,525
Net noncontrolling interest deconsolidated	125																	240	(115)
Ending balance at Sep. 30, 2021	(15,332)					$ 0		$ 105				766,736					(7,242)	(774,931)	0
Ending Balance (shares) at Sep. 30, 2021						25		104,950
Beginning balance at Jun. 30, 2021	(8,906)					$ 0		$ 103				761,412					(6,279)	(764,150)	8
Beginning Balance (shares) at Jun. 30, 2021						35		103,109
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(7,190)																	(7,190)	0
Foreign currency translation adjustment	(2,571)																(2,571)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	693							$ 0				693
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)								316
Taxes withheld on net settled vesting of restricted stock units	(280)											(280)
Release of cumulative foreign currency translation adjustments as a result of sale of Ctrack South Africa	(140)											8					1,608	(1,748)	(8)
Share-based compensation	3,062											3,062
Series E preferred stock dividends	0											739						(739)
Series E preferred stock exchange	0							$ 2				1,102						(1,104)
Preferred stock exchange (shares)						(10)		1,525
Ending balance at Sep. 30, 2021	$ (15,332)					$ 0		$ 105				$ 766,736					$ (7,242)	$ (774,931)	$ 0
Ending Balance (shares) at Sep. 30, 2021						25		104,950

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

9 Months Ended

Sep. 30, 2021

Sep. 30, 2020

Cash flows from operating activities:

Net income (loss)

$ (37,191)

$ (98,441)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization

19,131

15,948

Provision for bad debts, net of recoveries

346

240

Impairment of capitalized software

1,197

Provision for excess and obsolete inventory

587

430

Share-based compensation expense

14,467

8,188

Amortization of debt discount and debt issuance costs

1,117

3,632

Fair value adjustment on derivative instrument

(3,435)

(1,372)

Loss on debt conversion and extinguishment, net

432

76,354

Gain on sale of Ctrack South Africa

(5,262)

Deferred income taxes

175

110

Other

572

Changes in assets and liabilities, net of effects of divestiture:

Accounts receivable

2,834

(19,065)

Inventories

(7,889)

(2,078)

Prepaid expenses and other assets

1,429

(3,918)

Accounts payable

(7,206)

25,170

Accrued expenses, income taxes, and other

3,939

11,464

Net cash (used in) provided by operating activities

(14,757)

16,712

Cash flows from investing activities:

Acquisition of noncontrolling interest

(116)

Purchases of property, plant and equipment

(4,299)

(5,084)

Proceeds from the sale of property, plant and equipment

1,143

327

Proceeds from sale of Ctrack South Africa, net of sold cash

31,526

^[1]

Additions to capitalized software development costs and purchases of intangible assets

(20,589)

(20,216)

Net cash provided by (used in) investing activities

7,665

(24,973)

Cash flows from financing activities:

Gross proceeds from the issuance of 2025 Notes

100,000

Payment of issuance costs related to 2025 Notes

(3,600)

Cash paid to investors in private exchange transactions

(32,062)

Payoff of term loan and related extinguishment costs

(48,830)

Gross proceeds received from issuance of Series E preferred stock

25,000

Repurchase of Series E preferred stock

(2,354)

Proceeds from the exercise of warrants to purchase common stock

1,861

Net borrowing of bank and overdraft facilities

315

110

Principal payments under finance lease obligations

(3,138)

(2,243)

Proceeds from a public offering, net of issuance costs

29,370

Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units

2,432

2,872

Net cash provided by financing activities

28,979

40,754

Effect of exchange rates on cash

(293)

(2,573)

Net increase in cash, cash equivalents and restricted cash

21,594

29,920

Cash, cash equivalents and restricted cash, beginning of period

40,015

12,074

Cash, and cash equivalents, and restricted cash, end of period

61,609

41,994

Cash paid during the year for:

Interest

2,782

640

Income taxes

378

286

Supplemental disclosures of non-cash activities:

Transfer of inventories to rental assets

4,394

2,650

Capital expenditures financed through accounts payable or accrued liabilities

2,643

3,786

Right-of-use assets obtained in exchange for operating leases liabilities

148

7,704

Exchange of Series E Preferred Stock for common stock

11,982

Issuance of common stock in exchange for Series E Preferred Stock

13,086

Deemed dividend on exchange of Series E Preferred Stock for common stock

1,104

Issuance of common stock under Settlement Agreement

972

Preferred stock issued in extinguishment of term loan accrued interest

2,330

Debt discount and issuance costs extinguished in notes conversion

1,728

2022 Notes conversion to equity

59,907

Novatel Wireless Notes conversion to equity

250

2025 Notes issued to extinguish the 2022 Notes

80,375

2025 Notes conversion, including shares issued in satisfaction of interest make-whole payment

$ 5,383

$ 14,353

[1]	Amounts for the nine months ended September 30, 2021 are net of $5.0 million of cash sold as part of the sale of Ctrack South Africa (see Note 4. Business Divestiture).

Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions		9 Months Ended
	Jul. 30, 2021	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Cash sold as part of sale	$ 5.1	$ 5.0

Basis of Presentation	9 Months Ended
Basis of Presentation	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	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 September 30, 2021 and the results of the Company’s operations for the three and nine months ended September 30, 2021 and 2020 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, 2020. The year-end condensed consolidated balance sheet data as of December 31, 2020 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. 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, 2020. 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. Risks and Uncertainties In December 2019, COVID-19 was reported to have surfaced in Wuhan, China, resulting in shutdowns of manufacturing and commerce globally in the months that followed. Since then, the COVID-19 pandemic has spread worldwide, and has resulted in authorities implementing numerous measures to try to contain the disease or slow its spread, such as travel bans and restrictions, quarantines, shelter-in-place orders and shutdowns. The extent of the impact of the COVID-19 pandemic on the Company’s 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 the spread of the disease, all of which are uncertain and cannot be predicted. In addition, a global semiconductor supply shortage is having wide-ranging effects across the technology industry. This semiconductor shortage has not materially impacted the Company but may impact the Company’s customers, and may negatively impact the supply of materials needed for our testing and production timeline. Our suppliers, contract manufacturers, and our customers are all taking actions to reduce the impact of the semiconductor shortage; however, if the shortage persists, the impact on our business could be material. Liquidity As of September 30, 2021, the Company had available cash and cash equivalents totaling $58.1 million, excluding restricted cash of $3.5 million, and working capital of $61.2 million. 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. In the first quarter of 2020, $59.9 million of the Company’s 5.5% convertible senior notes due 2022 (the “2022 Notes” formerly referred to as the “Inseego Notes”) were exchanged for common stock in private exchange transactions. Additionally, in the second quarter of 2020, the Company restructured its outstanding debt by completing a $100.0 million registered public offering (the “Offering”) of 3.25% convertible senior notes due 2025 (the “2025 Notes”) and also entered into privately-negotiated exchange agreements (the “May Exchange Agreements”), pursuant to which an aggregate of $45.0 million in principal amount of the 2022 Notes were exchanged for an aggregate of $32 million in cash and $80.4 million in principal amount of the 2025 Notes (the “May Private Exchange Transactions”). The Company also used a portion of the proceeds from the Offering to repay in full its previous term loan. In the third quarter of 2020, the Company redeemed the remaining $2,000 principal amount of the 2022 Notes. During the quarter ended September 30, 2020, certain holders of the 2025 Notes converted approximately $13.5 million in principal amount of the 2025 Notes into 1,177,156 shares of the Company’s common stock in accordance with the terms of such notes. As of September 30, 2021, the Company’s outstanding debt primarily consisted of $161.9 million in principal amount of 2025 Notes. On January 25, 2021, the Company entered into an Equity Distribution Agreement with Canaccord Genuity LLC (the “Agent”), pursuant to which the Company may offer and sell, from time to time, through or to the Agent, up to $40.0 million of shares of its common stock (the “ATM Offering”). In January 2021, the Company sold 1,516,073 shares of common stock, at an average price of $20.11 per share, for net proceeds of $29.4 million, after deducting underwriter fees and discounts of $0.9 million, and other offering fees, pursuant to the ATM Offering. The Company has a history of operating and net losses and overall usage of cash from operating and investing activities. The Company’s management believes that its cash and cash equivalents, together with anticipated cash flows from operations, will be sufficient to meet its cash flow needs for the next twelve months from the filing date of this report. The Company’s ability to attain more profitable operations and continue to generate positive cash flow is dependent upon achieving a level and mix of revenues adequate to support its evolving cost structure. If events or circumstances occur such that the Company does not meet its operating plan as expected, or if the Company becomes obligated to pay unforeseen expenditures as a result of ongoing litigation, the Company may be required to raise 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. 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. 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. Additionally, the Company is uncertain of the full extent to which the COVID-19 pandemic will impact the Company’s business, operations and financial results. Divestiture of Ctrack South Africa On July 30, 2021, the Company completed the sale of its Ctrack business operations in Africa, Pakistan and the Middle East (together “Ctrack South Africa”). Initial cash proceeds of approximately $36.6 million were received. Net cash proceeds received were $31.5 million, net of cash sold of $5.1 million. Final cash proceeds were subject to certain post-closing working capital adjustments which totaled $2.6 million, out of which $2.2 million was received on October 29, 2021, and the remaining $0.4 million was offset with the Company’s existing accounts payable balance to an affiliate of Convergence Partners (“Convergence”), an investment management firm in South Africa. The Company recorded a receivable for such balance on September 30, 2021. The Company will continue to provide telematics solutions in the rest of the world, including in Europe and Australia. See Note 4. Business Divestiture for additional information about the divestiture of Ctrack South Africa. 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, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense. The inputs related to certain estimates include consideration of the economic impact of the COVID-19 pandemic. As the impact of the COVID-19 pandemic continues to develop, these estimates could carry a higher degree of variability and volatility, and may change materially in future periods. 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 (“IIoT”) markets, Inseego SubscribeTM, a hosted SaaS platform that helps organizations manage the selection, deployment and spend of wireless assets, and various Software as a Service (“SaaS”) products. 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 software 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 IIoT markets. Effective in the third quarter ended on September 30, 2020, IoT & Mobile Solutions also includes the Company’s Device Management System (“DMS”), rebranded as Inseego SubscribeTM, that helps organizations manage the selection, deployment and spend of their customer’s wireless assets, helping them save money on personnel and telecom expenses. Enterprise SaaS Solutions. The Enterprise SaaS Solutions portfolio consists 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.

Financial Statement Details

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Details

Inventories

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


	September 30, 20211		December 31, 2020
Finished goods	$	29,949	$	27,009
Raw materials and components	3,752		6,943
Total inventories	$	33,701	$	33,952

1Amounts exclude balances deconsolidated as part of the sale of Ctrack South Africa. See Note 4. Business Divestiture.

Accrued Expenses and Other Current Liabilities

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


	September 30, 20211		December 31, 2020
Royalties	$	1,389	$	2,410
Payroll and related expenses	10,567		6,006


Professional fees	553		921

Accrued interest	2,168		888
Deferred revenue	3,282		2,853

Operating lease liabilities	1,740		1,619


Accrued production costs	901		938
Liabilities related to financed assets	165		1,198
Other	3,638		6,540
Total accrued expenses and other current liabilities	$	24,403	$	23,373

Fair Value Measurement of Assets and Liabilities

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

Fair Value Measurement of Assets and LiabilitiesFair 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 fair market value for level 3 securities may be highly sensitive to the use of unobservable inputs and subjective assumptions. Generally, changes in significant unobservable inputs may result in significantly lower or higher fair value measurements.

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 nine months ended September 30, 2021.

The following tables summarize 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 September 30, 2021 and December 31, 2020 (in thousands):


	September 30, 2021						December 31, 2020
	Total Fair Value		Level 3		Level 1		Total Fair Value		Level 3		Level 1
Assets
Cash equivalents
Money market funds	$	126	$	—	$	126	$	126	$	—	$	126
Total assets	$	126	$	—	$	126	$	126	$	—	$	126
Liabilities
2025 Notes
Interest make-whole payment	$	1,317	$	1,317	$	—	$	4,898	$	4,898	$	—
Total liabilities	$	1,317	$	1,317	$	—	$	4,898	$	4,898	$	—

The fair value of the interest make-whole payment derivative liability was determined using a Monte Carlo model with the following key assumptions:


	September 30, 2021		December 31, 2020
Volatility	50	%	50	%
Stock price	$6.66 per share		$15.47 per share
Credit spread	18.53	%	19.25	%
Term	3.59 years		4.34 years
Dividend yield	—	%	—	%
Risk-free rate	0.66	%	0.30	%

The following table sets forth a summary of changes in the fair value of Level 3 liabilities for the nine months ended September 30, 2021 (in thousands):


	Balance as of December 31, 2020		Additions		Conversions		Change in fair value		Balance as of September 30, 2021
Liabilities:
Interest make-whole payment	$	4,898	$	—	$	(146)	$	(3,435)	$	1,317

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 the 2025 Notes.

On May 12, 2020, the Company issued $180.4 million in aggregate principal amount of 2025 Notes, and restructured its outstanding debt as described further in Note 5, Debt. The Company carries its 2025 Notes at amortized cost adjusted for changes in fair value of the embedded derivative. As of September 30, 2021, $161.9 million in principal amount of the 2025 Notes remain outstanding. It is not practicable to determine the fair value of the 2025 Notes due to the lack of information available to calculate the fair value of such notes.

The Company evaluated the 2025 Notes under ASC 815 and identified an embedded derivative that required bifurcation. The embedded derivative is an interest make-whole payment that was valued at $4.6 million on May 12, 2020.

Changes in the fair value of the interest make-whole payment totaling a gain of $1.6 million for the three months ended September 30, 2021 are included in the Company’s condensed consolidated statement of operations within other income, net. During the nine months ended September 30, 2021, certain holders of the 2025 Notes converted an aggregate of approximately $5.0 million in principal amount of the 2025 Notes into shares of the Company’s common stock in accordance with the terms of such notes and a portion of the embedded derivative was settled in shares of the Company’s common stock resulting in $0.1 million of the derivative liability being extinguished upon conversion. As of September 30, 2021, the embedded derivative had a fair value of $1.3 million and a $3.4 million gain on the change in fair value was recorded to other income, net, on the condensed consolidated statement of operations in the nine months ended September 30, 2021.

During the three and nine months ended September 30, 2021 and 2020, there were no transfers between the levels within the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Business Divestiture

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Business Divestiture

Sale of Ctrack South Africa Operations

On February 24, 2021, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with Convergence to sell its Ctrack South Africa business operations in an all-cash transaction for 528.9 million South African Rand (“ZAR”) (approximately $36.6 million United States Dollars). The Purchase Agreement provides for an adjustment to the purchase price based on a normalized level of net working capital.

On July 30, 2021, the Company completed the sale of Ctrack South Africa. Initial cash proceeds of $36.6 million were received. Net cash proceeds received were $31.5 million, net of cash sold of $5.1 million. Final cash proceeds were subject to certain post-closing working capital adjustments which totaled $2.6 million, out of which $2.2 million was received on October 29, 2021, and the remaining $0.4 million was offset with the Company’s existing accounts payable balance to Convergence. The Company recorded a receivable for such balance as of September 30, 2021.

The Purchase Agreement required the Company to place in escrow 52.9 million ZAR, (approximately $3.5 million United States Dollars), which will be released on July 30, 2022. The funds in escrow will allow for Convergence to submit claims that are deemed to be uninsured warranties as defined in the Purchase Agreement.

In evaluating the accounting treatment for this sale, the transaction was considered to be the deconsolidation of a subsidiary, as defined in ASC 810 Consolidation. The gain upon sale is $5.3 million. Such gain has been recognized as gain on sale of Ctrack South Africa in the condensed consolidated results of operations during the three and nine months ended September 30, 2021. The Company also recorded $2.2 million of transaction expenses, which were expensed as incurred and

included within other income (expense), net, in the condensed consolidated results of operations for the three and nine months ended September 30, 2021.

The assets and liabilities of Ctrack South Africa that were sold in the transaction as of July 30, 2021, are summarized below:


(in thousands)
Assets:
Cash and cash equivalents	$	5,040
Accounts receivable, net	3,505
Inventory	3,821
Prepaid expenses and other	370
Property, plant and equipment, net	4,545
Rental assets, net	2,448
Intangible assets, net	11,278
Goodwill	10,734
Total assets	$	41,741


Accounts payable	$	3,961
Accrued expenses and other liabilities	1,107
Deferred tax liabilities, net	3,647
Other long-term liabilities	746
Total liabilities	9,461
Net assets	$	32,280

As of September 30, 2021, net proceeds recognized are comprised of the following:


(in thousands)
Initial purchase consideration received, upon close	$	36,566
Working capital adjustments	2,584
Net proceeds recognized	$	39,150

Net gain on sale for the three and nine months ended September 30, 2021 is comprised of the following:


(in thousands)
Gross proceeds recognized	$	39,150
Less: Book value of net assets sold	32,280
Less: Release of cumulative foreign currency translation adjustments related to Ctrack South Africa	1,608
Net gain on sale	$	5,262

Debt

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Debt

Term Loan

On August 23, 2017, the Company and certain of its direct and indirect subsidiaries, as 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.

On March 31, 2020, the Company issued 2,330 shares of Series E Preferred Stock to South Ocean Funding L.L.C. (“South Ocean”), the Lender holding all of the aggregate principal amount then outstanding under the Credit Agreement in satisfaction of all then accrued interest under the Credit Agreement.

On May 12, 2020, the Company used a portion of the proceeds from the Offering to repay in full the Term Loan and terminate the Credit Agreement. The amounts paid included $47.5 million in outstanding principal, approximately $0.5 million in interest accrued thereon, and a prepayment fee of $1.4 million. The Company also used a portion of the proceeds of the Offering to repurchase the 2,330 shares of Series E Preferred Stock that had been issued to South Ocean for $2.4 million.

The Term Loan bore interest at a rate per annum equal to the three-month LIBOR, but in no event less than 1.00%, plus 7.625%.

The effective interest rate was 15.19% for the nine months ended September 30, 2020. The following table sets forth total interest expense recognized related to the Term Loan (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Contractual interest expense	$	—	$	—	$	—	$	1,667
Amortization of debt discount	—		—		—		859
Amortization of debt issuance costs	—		—		—		103
Total interest expense	$	—	$	—	$	—	$	2,629

Convertible Notes

2025 Notes

On May 12, 2020, the Company completed its registered public Offering of $100.0 million aggregate principal amount of 2025 Notes.

On May 12, 2020, the Company also entered into the May Exchange Agreements with certain holders of the 2022 Notes. Pursuant to the May Exchange Agreements, these noteholders agreed to exchange the 2022 Notes that they held (representing an aggregate of $45.0 million principal amount of 2022 Notes with an estimated fair value of approximately $112.4 million as of the date of exchange) for an aggregate of $32.0 million in cash and $80.4 million principal amount of 2025 Notes in the May Private Exchange Transactions that closed concurrently with the registered Offering. In connection therewith, the Company recorded a loss of $67.2 million on debt conversion and extinguishment, net in the condensed consolidated statement of operations. The 2025 Notes issued in the May Private Exchange Transactions are part of the same series as the 2025 Notes issued in the registered Offering.

During the nine months ended September 30, 2021, certain holders of the 2025 Notes converted an aggregate of approximately $5.0 million in principal amount of the 2025 Notes into 428,669 shares of the Company’s common stock, including 32,221 shares of common stock issued in satisfaction of the interest make-whole payment. In connection therewith, the Company recorded a loss of $0.4 million on debt conversion, net in the condensed consolidated statement of operations.

The 2025 Notes are issued under an indenture, dated May 12, 2020 (the “Base Indenture”), between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”), as supplemented by the first supplemental indenture, dated May 12, 2020 (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company and the Trustee.

The 2025 Notes will mature on May 1, 2025, unless earlier repurchased, redeemed or converted. The 2025 Notes are senior unsecured obligations of the Company and bear interest at an annual rate of 3.25%, payable semi-annually in arrears on May 1 and November 1 of each year, beginning on November 1, 2020.

Holders of the 2025 Notes may convert the 2025 Notes into shares of the Company’s common stock (together with cash in lieu of any fractional share), at their option, at any time until the close of business on the scheduled trading day immediately before the maturity date. Upon conversion of the 2025 Notes, the Company will deliver for each $1,000 principal amount of

2025 Notes converted a number of shares of common stock (together with cash in lieu of any fractional share), equal to the conversion rate.

The initial conversion rate for the 2025 Notes is 79.2896 shares of common stock per $1,000 principal amount of 2025 Notes, which represents an initial conversion price of approximately $12.61 per share, and is subject to adjustment upon the occurrence of certain events, including, but not limited to, certain stock dividends, splits and combinations, the issuance of certain rights, options or warrants to holders of the common stock, certain distributions of assets, debt securities, capital stock or other property to holders of the common stock, cash dividends on the common stock and certain Company tender or exchange offers.

If a fundamental change (as defined in the Indenture) occurs at any time prior to the maturity date, then the noteholders may require the Company to repurchase their 2025 Notes at a cash repurchase price equal to the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. If a make-whole fundamental change (as defined in the Indenture) occurs, then the Company will in certain circumstances increase the conversion rate for a specified period of time.

The 2025 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after May 6, 2023 and on or before the scheduled trading day before the maturity date, at a cash redemption price equal to the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, as long as the last reported sale price per share of the common stock exceeds 130% of the conversion price on (i) 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 before the date the Company sends the related redemption notice; and (ii) the trading day immediately before the date the Company sends such notice.

The Indenture contains 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 the 2025 Notes representing at least 25% in aggregate principal amount of the outstanding 2025 Notes, by notice to the Company and the Trustee, may declare 100% of the principal of, and all accrued and unpaid interest on, all of the then outstanding 2025 Notes to be due and payable immediately. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of, and all accrued and unpaid interest on, all of the then outstanding 2025 Notes will automatically become immediately due and payable. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture will, for the first 360 days after such event of default, consist exclusively of the right to receive additional interest on the 2025 Notes.

Interest make-whole payment

The 2025 Notes also include an interest make-whole payment feature whereby if the last reported sale price of the Company’s common stock for each of the five trading days immediately preceding a conversion date is greater than or equal to $10.51, the Company will, in addition to the other consideration payable or deliverable in connection with such conversion, make an interest make-whole payment to the converting holder equal to the sum of the present values of the scheduled payments of interest that would have been made on the 2025 Notes to be converted had such notes remained outstanding from the conversion date through the earlier of (i) the date that is three years after the conversion date and (ii) the maturity date. The present values will be computed using a discount rate equal to 1%. The Company will satisfy its obligation to pay the interest make-whole payment, at its election, in cash or shares of common stock (together with cash in lieu of fractional shares). The Company has determined that this feature is an embedded derivative and has recognized the fair value of this derivative as a liability in the condensed consolidated balance sheets, with subsequent changes to fair value to be recorded at each reporting period on the condensed consolidated statement of operations in other income, net.

As of September 30, 2021, $161.9 million in principal amount of the 2025 Notes were outstanding, $80.4 million of which were held by related parties.

The 2025 Notes consist of the following (in thousands):


	September 30, 2021		December 31, 2020
Liability component
Principal	$	161,898	$	166,898
Add: fair value of embedded derivative	1,317		4,898
Less: unamortized debt discount	(2,972)		(3,703)
Less: unamortized issuance costs	(2,364)		(2,946)
Net carrying amount	$	157,879	$	165,147

The effective interest rate on the liability component of the 2025 Notes was 4.15% for the nine months ended September 30, 2021. The following table sets forth total interest expense recognized related to the 2025 Notes (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,

	2021		2020		2021		2020
Contractual interest expense	$	1,315	$	1,278	$	3,899	$	2,078
Amortization of debt discount	207		217		622		341
Amortization of debt issuance costs	165		172		495		268
Total interest expense	$	1,687	$	1,667	$	5,016	$	2,687

2022 Notes

On January 9, 2017, in connection with the settlement of an exchange offer and consent solicitation with respect to the 5.50% convertible senior notes due 2020 (the “Novatel Wireless Notes”), the Company issued approximately $119.8 million aggregate principal amount of 2022 Notes.

During the three months ended March 31, 2020, the Company entered into privately-negotiated exchange agreements (“the March Exchange Agreements”) with certain investors holding the 2022 Notes. Pursuant to the March Exchange Agreements, the investors exchanged $59.9 million in aggregate principal amount of outstanding 2022 Notes for 13,688,876 shares of common stock. The investors that participated in the March Exchange Agreements agreed to waive any accrued but unpaid interest on the exchanged 2022 Notes. Included in the 13,688,876 shares of common stock issued in the exchange transactions that took place during the three months ended March 31, 2020 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 March Exchange Agreements and were in excess of the consideration issuable under the original conversion terms of the exchanged 2022 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.

Pursuant to the May Private Exchange Transactions described above, on May 12, 2020, the holders of an aggregate of $45.0 million principal amount of 2022 Notes exchanged their 2022 Notes for a combination of 2025 Notes and cash. As a result of the May Private Exchange Transactions, $2,000 in principal amount of the 2022 Notes remained outstanding as of May 12, 2020. On July 22, 2020, pursuant to a redemption notice issued on May 15, 2020, the Company redeemed the remaining $2,000 principal amount of the 2022 Notes.

The effective interest rate on the liability component of the 2022 Notes was 12.89% for the nine months ended September 30, 2020. The following table sets forth total interest expense recognized related to the 2022 Notes (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Contractual interest expense	$	—	$	—	$	—	$	768
Amortization of debt discount	—		—		—		1,952
Amortization of debt issuance costs	—		—		—		111
Total interest expense	$	—	$	—	$	—	$	2,831

Share-based Compensation

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine Months Ended September 30,
	2021		2020			2021		2020
Cost of revenues	$	416	$	308		$	2,228	$	1,296
Research and development	604		491			4,366		2,292
Sales and marketing	614		531			3,161		1,810
General and administrative	1,428		877			4,712		2,790

Total1	$	3,062	$	2,207		$	14,467	$	8,188

1During the quarter ended March 31, 2021, the Board of Directors of the Company approved and the Company granted restricted stock units to eligible employees under the 2018 Omnibus Incentive Compensation Plan, previously named the Amended and Restated 2009 Omnibus Incentive Compensation Plan (the “2018 Plan”) that were immediately vested, as fiscal 2020 annual bonus payments. The total charges recorded during the quarter ended March 31, 2021 were $7.0 million. Such bonus payments in fiscal 2020 were paid in the quarter ended June 30, 2020, and total charges related to such bonus payments recorded during the quarter ended June 30, 2020 were $2.7 million. During the quarter ended September 30, 2021, the Board of Directors of the Company approved, and the Company granted restricted stock units under the 2018 Plan to certain employees that contributed to the completion of the divestiture of Ctrack South Africa. Such grants were immediately vested, and the total charges were $0.6 million.

Stock Options

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






Outstanding — December 31, 2020			8,479,979
Granted			1,355,000
Exercised			(1,082,618)
Canceled			(583,556)
Outstanding — September 30, 2021			8,168,805

Exercisable — September 30, 2021			4,775,992

At September 30, 2021, total unrecognized compensation expense related to stock options was $12.6 million, which is expected to be recognized over a weighted-average period of 2.62 years.

Restricted Stock Units

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






Non-vested — December 31, 2020			417,105
Granted			1,052,412
Vested			(930,981)
Forfeited			(51,590)
Non-vested — September 30, 2021			486,946

At September 30, 2021, total unrecognized compensation expense related to RSUs was $2.5 million, which is expected to be recognized over a weighted-average period of 2.45 years.

Earnings Per Share	9 Months Ended
Earnings Per Share	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per ShareBasic earnings per share (“EPS”) excludes dilution and is computed by dividing net 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 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 and nine months ended September 30, 2021, the computation of diluted EPS excluded 25,496,537 shares related to the convertible notes, stock options and RSUs as their effect would have been anti-dilutive.

Private Placements and Public Offering	9 Months Ended
Private Placements and Public Offering	Sep. 30, 2021
Equity [Abstract]
Private Placements and Public Offering	Private Placements and Public Offering 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, became exercisable on September 28, 2019, and will expire on June 30, 2022. 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. Pursuant to this guidance, the Company has determined that the warrants do not require liability accounting and has classified the warrants as equity. On January 25, 2021, the Company entered into an Equity Distribution Agreement with the Agent, pursuant to which the Company may offer and sell, from time to time, through or to the Agent, up to $40.0 million of shares of its common stock. In January 2021, the Company sold 1,516,073 shares of common stock, at an average price of $20.11 per share, for net proceeds of $29.4 million, after deducting underwriter fees and discounts, and other offering fees, pursuant to the ATM Offering. Preferred Stock 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. On March 31, 2020, the Company issued 2,330 shares of Series E Preferred Stock to South Ocean, in satisfaction of certain deferred interest obligations pursuant to the terms and conditions of the Credit Agreement. On May 12, 2020, the Company used a portion of the proceeds from the Offering to repurchase the 2,330 shares of Series E Preferred Stock, which had been issued to satisfy accrued interest under the Credit Agreement, for $2.4 million. On September 3, 2021, the Company entered into separate privately-negotiated exchange agreements (the “September Exchange Agreements”) with Golden Harbor Ltd. and North Sound Trading, L.P. (the “Participating Stockholders”), holders of the Company’s outstanding Series E Preferred Stock. Pursuant to each respective September Exchange Agreement, each of the Participating Stockholders agreed to exchange Series E Preferred Stock that they held (representing an aggregate of 10,000 shares of Series E Preferred Stock) for an aggregate of 1,525,207 shares of common stock, of the Company (the “Series E Exchange Transactions”). The Company did not receive any cash proceeds from the Participating Stockholders in connection with the Series E Exchange Transactions. The Company used the Guidance in ASC 470 Debt, regarding the modification of debt instruments and determined that the Series E Exchange Transactions were an extinguishment. If a modification or exchange represents an extinguishment for accounting purposes, it is accounted for as a redemption of the existing equity instrument and the issuance of a new instrument. ASC 260-10-S99-2 (“SEC Staff Announcement: The Effect on the Calculation of Earnings Per Share for a Period That Includes the Redemption or Induced Conversion of Preferred Stock”) provides guidance on the accounting for extinguishments (redemptions) of equity-classified preferred stock. Under that guidance, an SEC registrant compares (1) the fair value of the consideration transferred to the holders of the preferred stock and (2) the carrying amount of the preferred stock immediately before the modification or exchange (net of issuance costs). The difference is treated as a return to (or from) the holder of the preferred stock in a manner similar to dividends paid on preferred stock. Any excess of fair value of the consideration transferred to the holders of the preferred stock over the carrying amount of the preferred stock in the issuer’s balance sheet is treated as a dividend to those holders and charged against retained earnings. The Company determined that the Series E Exchange Transactions resulted in an extinguishment of preferred stock and an issuance of common stock. The difference between the carrying amount of the preferred stock plus accrued dividends, and the fair value of the common stock exchanged for such preferred stock, totaled $1.1 million. The difference was treated as a deemed dividend, and was included within the Series E preferred stock dividends and deemed dividends from the preferred stock exchange, in the condensed consolidated results of operations for the three and nine months ended September 30, 2021.

Geographic Information and Concentrations of Risk

9 Months Ended

Sep. 30, 2021

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 September 30,			Nine Months Ended September 30,
		2021		2020		2021		2020
United States and Canada		$	56,614	$	77,208	$	150,822	$	188,638
South Africa1		2,435		6,836		17,333		20,930
Other		7,168		6,196		21,352		18,201
Total		$	66,217	$	90,240	$	189,507	$	227,769

1Refer to Note 4. Business Divestiture for the Company’s divestiture of Ctrack South Africa

Concentrations of Risk

For the three months ended September 30, 2021, two customers accounted for 40.4% and 32.5% of net revenues, respectively. For the three months ended September 30, 2020, one customer accounted for 58.4% of net revenues.

For the nine months ended September 30, 2021, two customers accounted for 44.3% and 23.5% of net revenues, respectively. For the nine months ended September 30, 2020, one customer accounted for 56.4% of net revenues.

As of September 30, 2021 two customers accounted for 40.1% and 20.8% of accounts receivable, net, respectively. As of December 31, 2020, two customers accounted for 33.3% and 17.2% of accounts receivable, net, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2021
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 several 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 condensed consolidated results of operations or financial condition. On May 11, 2017, the Company initiated a lawsuit against the former stockholders of R.E.R. Enterprises, Inc. (“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. On July 24, 2020, the Company issued 89,928 shares of common stock to the former stockholders of RER in satisfaction of all remaining liabilities under the Settlement Agreement. 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 condensed consolidated results of operations or financial condition.

Leases

9 Months Ended

Sep. 30, 2021

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 the new guidance, ASC 842 Leases, (“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 the legacy guidance, 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 September 30, 2021, the Company had right-of-use assets of $8.0 million and lease liabilities related to its operating leases of $9.0 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 September 30, 2021, the Company’s weighted-average remaining lease term and weighted-average discount rate related to its operating leases were 5.3 years and 9.1%, respectively.

During the nine months ended September 30, 2021 and 2020, the cash paid for amounts included in the measurement of lease liabilities related to the Company’s operating leases was approximately $1.9 million and $0.5 million, respectively, which is included as an operating cash outflow within the consolidated statements of cash flows. During the nine months ended September 30, 2021 and 2020, the operating lease costs related to the Company’s operating leases were approximately $1.0 million and $0.7 million, respectively, which is included in operating costs and expenses in the condensed consolidated statements of operations.

The future minimum payments under operating leases were as follows as of September 30, 2021 (in thousands):


2021 (remainder)	$	658
2022	2,379
2023	1,971
2024	1,823
2025	1,667
Thereafter	2,813
Total minimum operating lease payments	11,311
Less: amounts representing interest	(2,319)
Present value of net minimum operating lease payments	8,992
Less: current portion	(1,740)
Long-term portion of operating lease obligations	$	7,252

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

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 accounts 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 as of September 30, 2021 (in thousands):


2021 (remainder)	$	658
2022	2,379
2023	1,971
2024	1,823
2025	1,667
Thereafter	2,813
Total minimum operating lease payments	11,311
Less: amounts representing interest	(2,319)
Present value of net minimum operating lease payments	8,992
Less: current portion	(1,740)
Long-term portion of operating lease obligations	$	7,252

Lessor

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s income tax (benefit) provision of $(4,000) and $0.2 million for the three months ended September 30, 2021 and 2020, respectively, and $0.4 million and $0.2 million for the nine months ended September 30, 2021 and 2020, respectively, consisted primarily of foreign income taxes at certain of the Company’s international entities and minimum state taxes for its U.S.-based entities. The Company’s income tax expense is different than the expected expense based on statutory rates primarily due to full valuation allowances at all of its U.S.-based entities and many of its foreign subsidiaries. On March 11, 2021, Congress passed, and the President signed into law, the American Rescue Plan Act, 2021 (the “ARP”), which includes certain business tax provisions. The Company does not expect the ARP to have a material impact on the Company’s effective tax rate or income tax expense for the year ending December 31, 2021.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2021
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 September 30, 2021 and the results of the Company’s operations for the three and nine months ended September 30, 2021 and 2020 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, 2020. The year-end condensed consolidated balance sheet data as of December 31, 2020 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. 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, 2020. 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.
Principles of Consolidation	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	Segment InformationManagement 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	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, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense. The inputs related to certain estimates include consideration of the economic impact of the COVID-19 pandemic. As the impact of the COVID-19 pandemic continues to develop, these estimates could carry a higher degree of variability and volatility, and may change materially in future periods.
Sources of Revenue	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 (“IIoT”) markets, Inseego SubscribeTM, a hosted SaaS platform that helps organizations manage the selection, deployment and spend of wireless assets, and various Software as a Service (“SaaS”) products. 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 software 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 IIoT markets. Effective in the third quarter ended on September 30, 2020, IoT & Mobile Solutions also includes the Company’s Device Management System (“DMS”), rebranded as Inseego SubscribeTM, that helps organizations manage the selection, deployment and spend of their customer’s wireless assets, helping them save money on personnel and telecom expenses. Enterprise SaaS Solutions. The Enterprise SaaS Solutions portfolio consists 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.
Fair Value Measurement	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 fair market value for level 3 securities may be highly sensitive to the use of unobservable inputs and subjective assumptions. Generally, changes in significant unobservable inputs may result in significantly lower or higher fair value measurements. 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.

- Definition

Disclosure of accounting policy for segment reporting.

+ References + Details

Financial Statement Details (Tables)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Inventories

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


	September 30, 20211		December 31, 2020
Finished goods	$	29,949	$	27,009
Raw materials and components	3,752		6,943
Total inventories	$	33,701	$	33,952

1Amounts exclude balances deconsolidated as part of the sale of Ctrack South Africa. See Note 4. Business Divestiture.

Summary of Accrued Expenses and Other Current Liabilities

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


	September 30, 20211		December 31, 2020
Royalties	$	1,389	$	2,410
Payroll and related expenses	10,567		6,006


Professional fees	553		921

Accrued interest	2,168		888
Deferred revenue	3,282		2,853

Operating lease liabilities	1,740		1,619


Accrued production costs	901		938
Liabilities related to financed assets	165		1,198
Other	3,638		6,540
Total accrued expenses and other current liabilities	$	24,403	$	23,373

1Amounts exclude balances deconsolidated as part of the sale of Ctrack South Africa. See Note 4. Business Divestiture.

Fair Value Measurement of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Measured at Fair Value on Recurring Basis


	September 30, 2021						December 31, 2020
	Total Fair Value		Level 3		Level 1		Total Fair Value		Level 3		Level 1
Assets
Cash equivalents
Money market funds	$	126	$	—	$	126	$	126	$	—	$	126
Total assets	$	126	$	—	$	126	$	126	$	—	$	126
Liabilities
2025 Notes
Interest make-whole payment	$	1,317	$	1,317	$	—	$	4,898	$	4,898	$	—
Total liabilities	$	1,317	$	1,317	$	—	$	4,898	$	4,898	$	—

Schedule of Fair Value Valuation Model and Assumptions

The fair value of the interest make-whole payment derivative liability was determined using a Monte Carlo model with the following key assumptions:


	September 30, 2021		December 31, 2020
Volatility	50	%	50	%
Stock price	$6.66 per share		$15.47 per share
Credit spread	18.53	%	19.25	%
Term	3.59 years		4.34 years
Dividend yield	—	%	—	%
Risk-free rate	0.66	%	0.30	%

Summary of Changes in Fair Value of Level 3 Liabilities

The following table sets forth a summary of changes in the fair value of Level 3 liabilities for the nine months ended September 30, 2021 (in thousands):


	Balance as of December 31, 2020		Additions		Conversions		Change in fair value		Balance as of September 30, 2021
Liabilities:
Interest make-whole payment	$	4,898	$	—	$	(146)	$	(3,435)	$	1,317

Business Divestiture (Tables)

9 Months Ended

Sep. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Assets and Liabilities Sold

The assets and liabilities of Ctrack South Africa that were sold in the transaction as of July 30, 2021, are summarized below:


(in thousands)
Assets:
Cash and cash equivalents	$	5,040
Accounts receivable, net	3,505
Inventory	3,821
Prepaid expenses and other	370
Property, plant and equipment, net	4,545
Rental assets, net	2,448
Intangible assets, net	11,278
Goodwill	10,734
Total assets	$	41,741


Accounts payable	$	3,961
Accrued expenses and other liabilities	1,107
Deferred tax liabilities, net	3,647
Other long-term liabilities	746
Total liabilities	9,461
Net assets	$	32,280

As of September 30, 2021, net proceeds recognized are comprised of the following:


(in thousands)
Initial purchase consideration received, upon close	$	36,566
Working capital adjustments	2,584
Net proceeds recognized	$	39,150

Net gain on sale for the three and nine months ended September 30, 2021 is comprised of the following:


(in thousands)
Gross proceeds recognized	$	39,150
Less: Book value of net assets sold	32,280
Less: Release of cumulative foreign currency translation adjustments related to Ctrack South Africa	1,608
Net gain on sale	$	5,262

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of Net Carrying Amount of Debt

The 2025 Notes consist of the following (in thousands):


	September 30, 2021		December 31, 2020
Liability component
Principal	$	161,898	$	166,898
Add: fair value of embedded derivative	1,317		4,898
Less: unamortized debt discount	(2,972)		(3,703)
Less: unamortized issuance costs	(2,364)		(2,946)
Net carrying amount	$	157,879	$	165,147

Schedule of Interest Expense

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Contractual interest expense	$	—	$	—	$	—	$	1,667
Amortization of debt discount	—		—		—		859
Amortization of debt issuance costs	—		—		—		103
Total interest expense	$	—	$	—	$	—	$	2,629

The following table sets forth total interest expense recognized related to the 2025 Notes (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,

	2021		2020		2021		2020
Contractual interest expense	$	1,315	$	1,278	$	3,899	$	2,078
Amortization of debt discount	207		217		622		341
Amortization of debt issuance costs	165		172		495		268
Total interest expense	$	1,687	$	1,667	$	5,016	$	2,687

The following table sets forth total interest expense recognized related to the 2022 Notes (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Contractual interest expense	$	—	$	—	$	—	$	768
Amortization of debt discount	—		—		—		1,952
Amortization of debt issuance costs	—		—		—		111
Total interest expense	$	—	$	—	$	—	$	2,831

Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,				Nine Months Ended September 30,
	2021		2020			2021		2020
Cost of revenues	$	416	$	308		$	2,228	$	1,296
Research and development	604		491			4,366		2,292
Sales and marketing	614		531			3,161		1,810
General and administrative	1,428		877			4,712		2,790

Total1	$	3,062	$	2,207		$	14,467	$	8,188

Summary of Stock Option Activity

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






Outstanding — December 31, 2020			8,479,979
Granted			1,355,000
Exercised			(1,082,618)
Canceled			(583,556)
Outstanding — September 30, 2021			8,168,805

Exercisable — September 30, 2021			4,775,992

Summary of Restricted Stock Unit Activity

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






Non-vested — December 31, 2020			417,105
Granted			1,052,412
Vested			(930,981)
Forfeited			(51,590)
Non-vested — September 30, 2021			486,946

Geographic Information and Concentrations of Risk (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30,			Nine Months Ended September 30,
		2021		2020		2021		2020
United States and Canada		$	56,614	$	77,208	$	150,822	$	188,638
South Africa1		2,435		6,836		17,333		20,930
Other		7,168		6,196		21,352		18,201
Total		$	66,217	$	90,240	$	189,507	$	227,769

1Refer to Note 4. Business Divestiture for the Company’s divestiture of Ctrack South Africa

Leases (Tables)

9 Months Ended

Sep. 30, 2021

Leases [Abstract]

Schedule of Future Minimum Payments Under Operating Leases

The future minimum payments under operating leases were as follows as of September 30, 2021 (in thousands):


2021 (remainder)	$	658
2022	2,379
2023	1,971
2024	1,823
2025	1,667
Thereafter	2,813
Total minimum operating lease payments	11,311
Less: amounts representing interest	(2,319)
Present value of net minimum operating lease payments	8,992
Less: current portion	(1,740)
Long-term portion of operating lease obligations	$	7,252

Basis of Presentation (Details)
$ / shares in Units, $ in Thousands

1 Months Ended

3 Months Ended

9 Months Ended

Oct. 29, 2021

USD ($)

Jul. 30, 2021

USD ($)

Jul. 22, 2020

USD ($)

May 12, 2020

USD ($)

Mar. 06, 2020

USD ($)

$ / shares

Jan. 31, 2021

USD ($)

$ / shares

Sep. 30, 2020

USD ($)

Jun. 30, 2020

USD ($)

Mar. 31, 2020

USD ($)

Sep. 30, 2021

USD ($)

segment

$ / shares

Sep. 30, 2020

USD ($)

Jan. 25, 2021

USD ($)

Dec. 31, 2020

USD ($)

$ / shares

Class of Stock [Line Items]

Cash and cash equivalents

$ 58,114

$ 40,015

Restricted cash

3,495

$ 0

Working capital

$ 61,200

Preferred stock, par value (in dollars per share) | $ / shares

$ 0.001

Preferred stock issued during the period

$ 0

$ 25,000

2022 Notes conversion to equity

59,907

Gross proceeds from the issuance of 2025 Notes

100,000

Cash paid in exchange transaction

$ 32,000

32,062

Conversion number of shares | shares

1,177,156

Number of shares issued (in shares) | shares

1,516,073

Purchase price (in dollars per share) | $ / shares

$ 20.11

Proceeds from sale of stock

$ 29,400

Offering costs

$ 900

Initial cash proceeds

$ 36,566

Net cash proceeds

31,500

31,526

^[1]

$ 0

Cash sold as part of sale

5,100

$ 5,000

Number of reportable segments | segment

Disposed of by sale | Ctrack South Africa

Class of Stock [Line Items]

Initial cash proceeds

36,600

Post-closing working capital adjustments

$ 2,584

$ 400

Disposed of by sale | Ctrack South Africa | Subsequent event

Class of Stock [Line Items]

Post-closing working capital adjustments received

$ 2,200

Canaccord Genuity LLC

Class of Stock [Line Items]

Equity Distribution Agreement, maximum aggregate amount authorized for offer or sale

$ 40,000

2025 Notes

Class of Stock [Line Items]

Debt conversion amount

5,000

Value of converted amount

$ 13,500

$ 5,000

Conversion number of shares | shares

428,669

Convertible Debt | 2022 Notes

Class of Stock [Line Items]

2022 Notes conversion to equity

$ 59,900

Stated interest rate (percent)

5.5

Debt conversion amount

$ 2

45,000

$ 2

$ 45,000

$ 59,900

Carrying amount of debt

45,000

$ 2

Conversion number of shares | shares

13,688,876

Convertible Debt | 2025 Notes

Class of Stock [Line Items]

Stated interest rate (percent)

3.25

Gross proceeds from the issuance of 2025 Notes

$ 100,000

Carrying amount of debt

180,400

$ 161,898

$ 166,898

Debt issued in exchange transaction

$ 80,400

Series E preferred stock

Class of Stock [Line Items]

Issuance of shares (shares) | shares

25,000

Preferred stock, par value (in dollars per share) | $ / shares

$ 0.001

Preferred stock issued during the period

$ 25,000

[1]	Amounts for the nine months ended September 30, 2021 are net of $5.0 million of cash sold as part of the sale of Ctrack South Africa (see Note 4. Business Divestiture).

Financial Statement Details - Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 29,949	$ 27,009
Raw materials and components	3,752	6,943
Total inventories	$ 33,701	$ 33,952

Financial Statement Details - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Royalties	$ 1,389	$ 2,410
Payroll and related expenses	10,567	6,006
Professional fees	553	921
Accrued interest	2,168	888
Deferred revenue	3,282	2,853
Operating lease liabilities	1,740	1,619
Accrued production costs	901	938
Liabilities related to financed assets	165	1,198
Other	3,638	6,540
Total accrued expenses and other current liabilities	$ 24,403	$ 23,373

Fair Value Measurement of Assets and Liabilities - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	May 12, 2020
Liabilities
Interest make-whole payment	$ 1,300		$ 4,600
Recurring
Assets
Total assets	126	$ 126
Liabilities
Total liabilities	1,317	4,898
Recurring \| Interest make-whole provision
Liabilities
Interest make-whole payment	1,317	4,898
Recurring \| Money market funds
Assets
Money market funds	126	126
Recurring \| Level 1
Assets
Total assets	126	126
Liabilities
Total liabilities	0	0
Recurring \| Level 1 \| Interest make-whole provision
Liabilities
Interest make-whole payment	0	0
Recurring \| Level 1 \| Money market funds
Assets
Money market funds	126	126
Recurring \| Level 3
Assets
Total assets	0	0
Liabilities
Total liabilities	1,317	4,898
Recurring \| Level 3 \| Interest make-whole provision
Liabilities
Interest make-whole payment	1,317	4,898
Recurring \| Level 3 \| Money market funds
Assets
Money market funds	$ 0	$ 0

Fair Value Measurement of Assets and Liabilities - Binomial Lattice Model and Assumptions (Details) - Level 3 - Interest make-whole payment	Jun. 30, 2020	May 12, 2020	Sep. 30, 2021 $ / shares	Dec. 31, 2020 $ / shares
Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input		0.50	0.50
Stock price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Stock price			$ 6.66	$ 15.47
Credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input		0.1925	0.1853
Term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term	3 years 7 months 2 days	4 years 4 months 2 days
Dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input		0	0
Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input		0.0030	0.0066

Fair Value Measurement of Assets and Liabilities - Activity in Level 3 Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Level 3 Liabilities
Beginning balance	$ 4,898
Additions	0
Conversions	(146)
Change in fair value	(3,435)
Ending balance	$ 1,317

Fair Value Measurement of Assets and Liabilities - Other Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Dec. 31, 2020	May 12, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest make-whole payment	$ 1,300		$ 1,300		$ 4,600
Gain on change in fair value of embedded derivative	1,600		3,400
Derivative liability extinguished upon debt conversion			100
2025 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value of converted amount		$ 13,500	5,000
2025 Notes \| Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount of debt	161,898		161,898	$ 166,898	$ 180,400
Interest make-whole payment	$ 1,317		$ 1,317	$ 4,898

Business Divestiture - Narrative (Details)
$ in Thousands, R in Millions

3 Months Ended

9 Months Ended

Oct. 29, 2021

USD ($)

Jul. 30, 2021

USD ($)

Sep. 30, 2021

USD ($)

Sep. 30, 2021

USD ($)

Sep. 30, 2020

USD ($)

Feb. 24, 2021

USD ($)

Feb. 24, 2021

ZAR (R)

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Initial cash proceeds

$ 36,566

Net cash proceeds

31,500

$ 31,526

^[1]

$ 0

Cash sold as part of sale

5,100

5,000

Ctrack South Africa | Disposed of by sale

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Initial cash proceeds

36,600

Post-closing working capital adjustments

$ 2,584

$ 400

400

Net gain on sale

5,262

Disposal Transaction Expenses

$ 2,200

Ctrack South Africa | Disposed of by sale | Subsequent event

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Post-closing working capital adjustments received

$ 2,200

Convergence Partners | Ctrack South Africa

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Purchase Agreement, transaction price per agreement

$ 36,600

R 528.9

Definitive Agreement, Ten Percent Of Transaction Price Per Agreement Placed In Escrow, Amount

$ 3,500

[1]	Amounts for the nine months ended September 30, 2021 are net of $5.0 million of cash sold as part of the sale of Ctrack South Africa (see Note 4. Business Divestiture).

Business Divestiture - Assets and Liabilities Sold (Details) - Disposed of by sale - Ctrack South Africa $ in Thousands	Jul. 30, 2021 USD ($)
Assets:
Cash and cash equivalents	$ 5,040
Accounts receivable, net	3,505
Inventory	3,821
Prepaid expenses and other	370
Property, plant and equipment, net	4,545
Rental assets, net	2,448
Intangible assets, net	11,278
Goodwill	10,734
Total assets	41,741
Liabilities:
Accounts payable	3,961
Accrued expenses and other liabilities	1,107
Deferred tax liabilities, net	3,647
Other long-term liabilities	746
Total liabilities	9,461
Net assets	$ 32,280

Business Divestiture - Net Proceeds (Details) $ in Thousands	Jul. 30, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Initial purchase consideration received, upon close	$ 36,566
Net proceeds recognized	39,150
Disposed of by sale \| Ctrack South Africa
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Initial purchase consideration received, upon close	36,600
Working capital adjustments	$ 2,584

Business Divestiture - Net Gain on Sale (Details) - Disposed of by sale - Ctrack South Africa - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross proceeds recognized	$ 39,150	$ 39,150
Less: Book value of net assets sold	32,280	32,280
Less: Release of cumulative foreign currency translation adjustments related to Ctrack South Africa	1,608	1,608
Net gain on sale	$ 5,262	$ 5,262

Debt - Term Loan (Details) - USD ($) $ in Thousands					9 Months Ended
Debt - Term Loan (Details) - USD ($) $ in Thousands	May 12, 2020	Mar. 31, 2020	Mar. 06, 2020	Aug. 23, 2017	Sep. 30, 2021	Sep. 30, 2020	Jan. 09, 2017
Debt Instrument [Line Items]
Payments repurchase of preferred stock					$ 0	$ 2,354
Series E preferred stock
Debt Instrument [Line Items]
Issuance of shares (shares)			25,000
Stock repurchased (in shares)	2,330
Payments repurchase of preferred stock	$ 2,400
South Ocean Funding LLC \| Series E preferred stock
Debt Instrument [Line Items]
Issuance of shares (shares)		2,330
Secured Debt \| Term Loan
Debt Instrument [Line Items]
Debt aggregate face amount				$ 48,000
Repayment of outstanding principal	47,500
Repayment of accrued interest	500
Prepayment fee	$ 1,400
Interest rate base minimum (percent)				1.00%
Effective interest rate						15.19%
Secured Debt \| Term Loan \| LIBOR
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)				7.625%
Convertible Debt \| 2022 Notes
Debt Instrument [Line Items]
Debt aggregate face amount							$ 119,800
Effective interest rate						12.89%
Convertible Debt \| 2025 Notes
Debt Instrument [Line Items]
Effective interest rate					4.15%

Debt - Components (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	May 12, 2020
Debt Instrument [Line Items]
Interest make-whole payment	$ 1,300		$ 4,600
2025 Notes \| Convertible Debt
Debt Instrument [Line Items]
Principal amount	161,898	$ 166,898	$ 180,400
Interest make-whole payment	1,317	4,898
Unamortized debt discount	(2,972)	(3,703)
Unamortized issuance costs	(2,364)	(2,946)
Net carrying amount	$ 157,879	$ 165,147

Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Term Loan \| Secured Debt
Debt Instrument [Line Items]
Contractual interest expense	$ 0	$ 0	$ 0	$ 1,667
Amortization of debt discount	0	0	0	859
Amortization of debt issuance costs	0	0	0	103
Total interest expense	0	0	0	2,629
2025 Notes \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	1,315	1,278	3,899	2,078
Amortization of debt discount	207	217	622	341
Amortization of debt issuance costs	165	172	495	268
Total interest expense	1,687	1,667	5,016	2,687
2022 Notes \| Convertible Debt
Debt Instrument [Line Items]
Contractual interest expense	0	0	0	768
Amortization of debt discount	0	0	0	1,952
Amortization of debt issuance costs	0	0	0	111
Total interest expense	$ 0	$ 0	$ 0	$ 2,831

Debt - Convertible Notes (Details)			3 Months Ended				9 Months Ended
Debt - Convertible Notes (Details)	Jul. 22, 2020 USD ($)	May 12, 2020 USD ($)	Sep. 30, 2021 USD ($) $ / shares	Sep. 30, 2020 USD ($) shares	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($) shares	Sep. 30, 2021 USD ($) trading_day $ / shares shares	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)	Jan. 09, 2017 USD ($)
Debt Instrument [Line Items]
Proceeds from completed registered offering							$ 0	$ 100,000,000
Cash paid in exchange transaction		$ 32,000,000			$ 32,000,000		0	32,062,000
Loss on debt conversion and extinguishment			$ 0	$ 1,180,000			432,000	76,354,000
Conversion (shares) \| shares				1,177,156
2025 Notes
Debt Instrument [Line Items]
Loss on debt conversion and extinguishment							400,000
Debt conversion amount							$ 5,000,000
Conversion (shares) \| shares							428,669
Shares in satisfaction of make-whole payment (shares) \| shares							32,221
Value of converted amount				$ 13,500,000			$ 5,000,000
2022 Notes
Debt Instrument [Line Items]
Loss on debt conversion and extinguishment		67,200,000
Convertible Debt \| 2025 Notes
Debt Instrument [Line Items]
Proceeds from completed registered offering					100,000,000
Principal amount		180,400,000	$ 161,898,000				$ 161,898,000		$ 166,898,000
Debt issued in exchange transaction		80,400,000			80,400,000
Stated interest rate of debt issued			3.25%				3.25%
Principal amount per note			$ 1,000				$ 1,000
Conversion ratio							79.2896
Conversion price ($ per share) \| $ / shares			$ 12.61				$ 12.61
Threshold percentage of stock price trigger							130.00%
Threshold of trading days \| trading_day							20
Threshold of consecutive trading days \| trading_day							30
Aggregate percentage of holders to declare notes due and payable in default event							25.00%
Percentage of principal and accrued interest that may be called in default event							100.00%
Percentage of principal and accrued interest that may be called in event of bankruptcy, insolvency or reorganization							100.00%
Stock price trigger (in dollars per share) \| $ / shares							$ 10.51
Interest make-whole payment discount rate			1.00%				1.00%
Notes held by related parties			$ 80,400,000				$ 80,400,000
Effective interest rate			4.15%				4.15%
Interest expense			$ 1,687,000	1,667,000			$ 5,016,000	$ 2,687,000
Convertible Debt \| 2022 Notes
Debt Instrument [Line Items]
Principal amount		45,000,000							$ 2,000
Estimated fair value of convertible debt		112,400,000
Debt conversion amount	$ 2,000	$ 45,000,000		$ 2,000	$ 45,000,000	$ 59,900,000
Conversion (shares) \| shares						13,688,876
Effective interest rate				12.89%				12.89%
Debt aggregate face amount										$ 119,800,000
Interest expense			$ 0	$ 0			$ 0	$ 2,831,000
Convertible Debt \| Privately negotiated exchange agreements
Debt Instrument [Line Items]
Loss on debt conversion and extinguishment						$ 7,900,000
Conversion (shares) \| shares						942,706
Value of converted amount						$ 7,900,000
Convertible Debt \| Novatel Wireless Notes
Debt Instrument [Line Items]
Stated interest rate of debt issued										5.50%

Share-based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 3,062		$ 2,207		$ 14,467	$ 8,188
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	416		308		2,228	1,296
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	604		491		4,366	2,292
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	614		531		3,161	1,810
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	1,428		$ 877		4,712	$ 2,790
Stock Options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized expense	12,600				$ 12,600
Recognition period					2 years 7 months 13 days
RSUs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense		$ 7,000		$ 2,700
Unrecognized expense	2,500				$ 2,500
Recognition period					2 years 5 months 12 days
RSUs in divestiture
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 600

Share-based Compensation - Activity (Details)	9 Months Ended
Share-based Compensation - Activity (Details)	Sep. 30, 2021 shares
Stock Options
Outstanding — beginning balance	8,479,979
Granted	1,355,000
Exercised	(1,082,618)
Canceled	(583,556)
Outstanding — ending balance	8,168,805
Exercisable — ending balance	4,775,992
RSUs
Restricted Stock Units
Non-vested — beginning balance	417,105
Granted	1,052,412
Vested	(930,981)
Forfeited	(51,590)
Non-vested — ending balance	486,946

Earnings Per Share (Details) - shares	3 Months Ended	9 Months Ended
Earnings Per Share (Details) - shares	Sep. 30, 2021	Sep. 30, 2021
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	25,496,537	25,496,537

Private Placements and Public Offering (Details) - USD ($) $ / shares in Units, $ in Thousands							1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 03, 2021	May 12, 2020	Mar. 31, 2020	Mar. 06, 2020	Mar. 28, 2019	Aug. 06, 2018	Jan. 31, 2021	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Jan. 25, 2021	Dec. 31, 2020
Class of Stock [Line Items]
Number of shares issued (in shares)							1,516,073
Common stock, par value (in dollars per share)									$ 0.001			$ 0.001
Proceeds from the exercise of warrants								$ 1,900	$ 0	$ 1,861
Exercise of warrants (shares)								338,454
Proceeds from sale of stock							$ 29,400
Purchase price (in dollars per share)							$ 20.11
Preferred stock issued during the period									0	25,000
Payments repurchase of preferred stock									0	2,354
Deemed dividend on exchange of Series E Preferred Stock for common stock									$ 1,104	$ 0
2018 Warrants
Class of Stock [Line Items]
Number of shares issued (in shares)						12,062,000
Common stock, par value (in dollars per share)						$ 0.001
Number of additional shares from warrants (in shares)						4,221,700
Initial exercise price of warrants (in dollars per share)					$ 2.52
Proceeds from the exercise of warrants					$ 10,600
2019 Warrants
Class of Stock [Line Items]
Number of additional shares from warrants (in shares)					2,500,000
Initial exercise price of warrants (in dollars per share)					$ 7.00
Canaccord Genuity LLC
Class of Stock [Line Items]
Equity Distribution Agreement, maximum aggregate amount authorized for offer or sale											$ 40,000
Series E preferred stock
Class of Stock [Line Items]
Issuance of shares (shares)				25,000
Preferred stock issued during the period				$ 25,000
Stock repurchased (in shares)		2,330
Payments repurchase of preferred stock		$ 2,400
Shares of preferred stock exchanged	10,000
Series E preferred stock \| South Ocean Funding LLC
Class of Stock [Line Items]
Issuance of shares (shares)			2,330
Common shares
Class of Stock [Line Items]
Common stock issued in exchange for preferred stock	1,525,207

Geographic Information and Concentrations of Risk - Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 66,217	$ 90,240	$ 189,507	$ 227,769
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	56,614	77,208	150,822	188,638
South Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	2,435	6,836	17,333	20,930
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 7,168	$ 6,196	$ 21,352	$ 18,201

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=75031198&loc=d3e14064-108612

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(1))
-URI http://asc.fasb.org/extlink&oid=120395209&loc=SL114868664-224227

+ Details

Geographic Information and Concentrations of Risk - Narrative (Details)	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net Revenues \| Customer concentration risk \| Customer One
Segment Reporting Information [Line Items]
Concentration percentage	40.40%		58.40%	44.30%	56.40%
Net Revenues \| Customer concentration risk \| Customer Two
Segment Reporting Information [Line Items]
Concentration percentage	32.50%			23.50%
Accounts Receivable \| Credit concentration risk \| Customer One
Segment Reporting Information [Line Items]
Concentration percentage		33.30%		40.10%
Accounts Receivable \| Credit concentration risk \| Customer Two
Segment Reporting Information [Line Items]
Concentration percentage		17.20%		20.80%

Commitments and Contingencies (Details) - USD ($) $ in Millions			1 Months Ended
	Jul. 24, 2020	Jul. 26, 2018	Mar. 31, 2017
RER
Loss Contingencies [Line Items]
Stock issued for acquisition (shares)			973,333
Former stockholders of RER
Loss Contingencies [Line Items]
Amount awarded to other party in settlement		$ 1.0
Issuance of common shares in litigation settlement (in shares)	89,928	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

Leases - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Leases [Abstract]
Right-of-use assets, net	$ 8,010		$ 9,092
Operating lease liabilities	$ 8,992
Weighted-average remaining lease term	5 years 3 months 18 days
Weighted-average discount rate	9.10%
Operating lease payments	$ 1,900	$ 500
Operating lease costs	$ 1,000	$ 700

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021 (remainder)	$ 658
2022	2,379
2023	1,971
2024	1,823
2025	1,667
Thereafter	2,813
Total minimum operating lease payments	11,311
Less: amounts representing interest	(2,319)
Present value of net minimum operating lease payments	8,992
Less: current portion	(1,740)	$ (1,619)
Long-term portion of operating lease obligations	$ 7,252

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income tax (benefit) provision	$ (4)	$ 217	$ 445	$ 193

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details