Banner

Form 10-Q

insg-20220630
false2022Q20001022652December 31P3YP3Y00010226522022-01-012022-06-3000010226522022-08-02xbrli:shares00010226522022-06-30iso4217:USD00010226522021-12-31iso4217:USDxbrli:shares0001022652us-gaap:SeriesEPreferredStockMember2022-06-300001022652us-gaap:SeriesEPreferredStockMember2021-12-310001022652insg:IoTAndMobileSolutionsMember2022-04-012022-06-300001022652insg:IoTAndMobileSolutionsMember2021-04-012021-06-300001022652insg:IoTAndMobileSolutionsMember2022-01-012022-06-300001022652insg:IoTAndMobileSolutionsMember2021-01-012021-06-300001022652insg:EnterpriseSaaSSolutionsMember2022-04-012022-06-300001022652insg:EnterpriseSaaSSolutionsMember2021-04-012021-06-300001022652insg:EnterpriseSaaSSolutionsMember2022-01-012022-06-300001022652insg:EnterpriseSaaSSolutionsMember2021-01-012021-06-3000010226522022-04-012022-06-3000010226522021-04-012021-06-3000010226522021-01-012021-06-300001022652us-gaap:PreferredStockMember2021-03-310001022652us-gaap:CommonStockMember2021-03-310001022652us-gaap:AdditionalPaidInCapitalMember2021-03-310001022652us-gaap:RetainedEarningsMember2021-03-310001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001022652us-gaap:NoncontrollingInterestMember2021-03-3100010226522021-03-310001022652us-gaap:RetainedEarningsMember2021-04-012021-06-300001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001022652us-gaap:CommonStockMember2021-04-012021-06-300001022652us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001022652us-gaap:CommonClassAMemberus-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001022652us-gaap:CommonClassAMember2021-04-012021-06-300001022652us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001022652us-gaap:PreferredStockMember2021-06-300001022652us-gaap:CommonStockMember2021-06-300001022652us-gaap:AdditionalPaidInCapitalMember2021-06-300001022652us-gaap:RetainedEarningsMember2021-06-300001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001022652us-gaap:NoncontrollingInterestMember2021-06-3000010226522021-06-300001022652us-gaap:PreferredStockMember2022-03-310001022652us-gaap:CommonStockMember2022-03-310001022652us-gaap:AdditionalPaidInCapitalMember2022-03-310001022652us-gaap:RetainedEarningsMember2022-03-310001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001022652us-gaap:NoncontrollingInterestMember2022-03-3100010226522022-03-310001022652us-gaap:RetainedEarningsMember2022-04-012022-06-300001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001022652us-gaap:CommonStockMember2022-04-012022-06-300001022652us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001022652us-gaap:PreferredStockMember2022-06-300001022652us-gaap:CommonStockMember2022-06-300001022652us-gaap:AdditionalPaidInCapitalMember2022-06-300001022652us-gaap:RetainedEarningsMember2022-06-300001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001022652us-gaap:NoncontrollingInterestMember2022-06-300001022652us-gaap:PreferredStockMember2020-12-310001022652us-gaap:CommonStockMember2020-12-310001022652us-gaap:AdditionalPaidInCapitalMember2020-12-310001022652us-gaap:RetainedEarningsMember2020-12-310001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001022652us-gaap:NoncontrollingInterestMember2020-12-3100010226522020-12-310001022652us-gaap:RetainedEarningsMember2021-01-012021-06-300001022652us-gaap:NoncontrollingInterestMember2021-01-012021-06-300001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001022652us-gaap:CommonStockMember2021-01-012021-06-300001022652us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001022652insg:ConvertibleSeniorNotesThreePointTwoFiveDue2025Memberus-gaap:CommonStockMember2021-01-012021-06-300001022652insg:ConvertibleSeniorNotesThreePointTwoFiveDue2025Memberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001022652insg:ConvertibleSeniorNotesThreePointTwoFiveDue2025Member2021-01-012021-06-300001022652us-gaap:CommonClassAMemberus-gaap:CommonStockMember2021-01-012021-06-300001022652us-gaap:CommonClassAMemberus-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001022652us-gaap:CommonClassAMember2021-01-012021-06-300001022652us-gaap:PreferredStockMember2021-12-310001022652us-gaap:CommonStockMember2021-12-310001022652us-gaap:AdditionalPaidInCapitalMember2021-12-310001022652us-gaap:RetainedEarningsMember2021-12-310001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001022652us-gaap:RetainedEarningsMember2022-01-012022-06-300001022652us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001022652insg:ConvertibleSeniorNotesFivePointFiveZeroDue2022Memberus-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001022652insg:ConvertibleSeniorNotesFivePointFiveZeroDue2022Member2022-01-012022-06-300001022652us-gaap:CommonStockMember2022-01-012022-06-300001022652us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001022652us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMember2022-08-050001022652insg:SOFRMemberus-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMember2022-08-052022-08-05xbrli:pure0001022652insg:SOFRMemberus-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-08-052022-08-050001022652us-gaap:SubsequentEventMemberinsg:GreaterThan15MillionMemberus-gaap:RevolvingCreditFacilityMember2022-08-050001022652insg:SOFRMemberus-gaap:SubsequentEventMemberinsg:GreaterThan15MillionMemberus-gaap:RevolvingCreditFacilityMember2022-08-052022-08-050001022652insg:SOFRMemberus-gaap:SubsequentEventMemberinsg:GreaterThan15MillionMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-08-052022-08-050001022652insg:GreaterThan25MillionMemberus-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMember2022-08-050001022652insg:GreaterThan25MillionMemberinsg:SOFRMemberus-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMember2022-08-052022-08-050001022652insg:GreaterThan25MillionMemberinsg:SOFRMemberus-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-08-052022-08-050001022652us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberinsg:CtrackSouthAfricaMember2021-07-300001022652us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberinsg:CtrackSouthAfricaMember2021-07-302021-07-300001022652us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberinsg:CtrackSouthAfricaMember2021-10-292021-10-290001022652us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberinsg:CtrackSouthAfricaMember2021-10-290001022652insg:CanaccordGenuityLLCMember2021-01-2500010226522021-01-012021-01-3100010226522021-01-31insg:segment0001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-06-300001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2022-06-300001022652us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2022-06-300001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-12-310001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-12-310001022652us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-12-310001022652us-gaap:FairValueMeasurementsRecurringMember2022-06-300001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-06-300001022652us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001022652us-gaap:FairValueMeasurementsRecurringMember2021-12-310001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-12-310001022652us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-06-300001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-06-300001022652us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-06-300001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-12-310001022652us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-12-310001022652us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-12-310001022652us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMemberus-gaap:MeasurementInputPriceVolatilityMember2022-06-300001022652us-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMemberus-gaap:MeasurementInputPriceVolatilityMember2021-12-310001022652us-gaap:MeasurementInputSharePriceMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMember2022-06-300001022652us-gaap:MeasurementInputSharePriceMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMember2021-12-310001022652us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:DerivativeMember2022-06-300001022652us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputCreditSpreadMemberus-gaap:DerivativeMember2021-12-310001022652us-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMember2022-01-012022-06-300001022652us-gaap:MeasurementInputExpectedTermMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMember2022-01-012022-03-310001022652us-gaap:MeasurementInputExpectedDividendRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMember2022-06-300001022652us-gaap:MeasurementInputExpectedDividendRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:DerivativeMember2021-12-310001022652us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:DerivativeMember2022-06-300001022652us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:DerivativeMember2021-12-310001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2020-05-120001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2022-06-300001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2020-05-122020-05-120001022652insg:TwentyTwentyFiveConvertibleNotesMember2021-01-012021-06-300001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2022-01-012022-06-30insg:trading_day0001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2021-12-310001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2022-04-012022-06-300001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2021-04-012021-06-300001022652us-gaap:ConvertibleDebtMemberinsg:TwentyTwentyFiveConvertibleNotesMember2021-01-012021-06-300001022652insg:A2018OmnibusIncentiveCompensationPlanMember2022-06-300001022652us-gaap:CostOfSalesMember2022-04-012022-06-300001022652us-gaap:CostOfSalesMember2021-04-012021-06-300001022652us-gaap:CostOfSalesMember2022-01-012022-06-300001022652us-gaap:CostOfSalesMember2021-01-012021-06-300001022652us-gaap:ResearchAndDevelopmentExpenseMember2022-04-012022-06-300001022652us-gaap:ResearchAndDevelopmentExpenseMember2021-04-012021-06-300001022652us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-06-300001022652us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-06-300001022652us-gaap:SellingAndMarketingExpenseMember2022-04-012022-06-300001022652us-gaap:SellingAndMarketingExpenseMember2021-04-012021-06-300001022652us-gaap:SellingAndMarketingExpenseMember2022-01-012022-06-300001022652us-gaap:SellingAndMarketingExpenseMember2021-01-012021-06-300001022652us-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300001022652us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-06-300001022652us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300001022652us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-06-3000010226522022-01-012022-03-3100010226522021-01-012021-03-310001022652us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001022652us-gaap:EmployeeStockOptionMembersrt:MinimumMember2022-01-012022-06-300001022652us-gaap:EmployeeStockOptionMembersrt:MaximumMember2022-01-012022-06-300001022652us-gaap:EmployeeStockOptionMember2022-06-300001022652srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001022652srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001022652us-gaap:RestrictedStockUnitsRSUMember2021-12-310001022652us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001022652us-gaap:RestrictedStockUnitsRSUMember2022-06-300001022652us-gaap:ConvertibleDebtSecuritiesMember2022-04-012022-06-300001022652us-gaap:ConvertibleDebtSecuritiesMember2021-04-012021-06-300001022652us-gaap:ConvertibleDebtSecuritiesMember2022-01-012022-06-300001022652us-gaap:ConvertibleDebtSecuritiesMember2021-01-012021-06-300001022652us-gaap:WarrantMember2022-04-012022-06-300001022652us-gaap:WarrantMember2021-04-012021-06-300001022652us-gaap:WarrantMember2022-01-012022-06-300001022652us-gaap:WarrantMember2021-01-012021-06-300001022652us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001022652us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001022652us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001022652us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001022652us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001022652us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001022652us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001022652us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001022652insg:EmployeeStockPurchasePlanSecuritiesMember2022-04-012022-06-300001022652insg:EmployeeStockPurchasePlanSecuritiesMember2021-04-012021-06-300001022652insg:EmployeeStockPurchasePlanSecuritiesMember2022-01-012022-06-300001022652insg:EmployeeStockPurchasePlanSecuritiesMember2021-01-012021-06-300001022652insg:TwoThousandNineteenWarrantsMember2019-03-280001022652insg:UnitedStatesAndCanadaMember2022-04-012022-06-300001022652insg:UnitedStatesAndCanadaMember2021-04-012021-06-300001022652insg:UnitedStatesAndCanadaMember2022-01-012022-06-300001022652insg:UnitedStatesAndCanadaMember2021-01-012021-06-300001022652srt:EuropeMember2022-04-012022-06-300001022652srt:EuropeMember2021-04-012021-06-300001022652srt:EuropeMember2022-01-012022-06-300001022652srt:EuropeMember2021-01-012021-06-300001022652country:ZA2022-04-012022-06-300001022652country:ZA2021-04-012021-06-300001022652country:ZA2022-01-012022-06-300001022652country:ZA2021-01-012021-06-300001022652insg:OtherGeographicRegionsMember2022-04-012022-06-300001022652insg:OtherGeographicRegionsMember2021-04-012021-06-300001022652insg:OtherGeographicRegionsMember2022-01-012022-06-300001022652insg:OtherGeographicRegionsMember2021-01-012021-06-300001022652us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberinsg:CustomerOneMember2022-04-012022-06-300001022652us-gaap:SalesRevenueNetMemberinsg:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001022652us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberinsg:CustomerOneMember2021-04-012021-06-300001022652us-gaap:SalesRevenueNetMemberinsg:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMember2021-04-012021-06-300001022652us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberinsg:CustomerOneMember2022-01-012022-06-300001022652us-gaap:SalesRevenueNetMemberinsg:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001022652us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberinsg:CustomerOneMember2021-01-012021-06-300001022652us-gaap:SalesRevenueNetMemberinsg:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-06-300001022652us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMemberinsg:CustomerOneMember2022-01-012022-06-300001022652insg:CustomerTwoMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-06-300001022652us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMemberinsg:CustomerOneMember2022-01-012022-03-310001022652insg:CustomerTwoMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                          to                     .  
Commission File Number: 001-38358
INSEEGO CORP.
(Exact name of registrant as specified in its charter)
Delaware 81-3377646
(State or Other Jurisdiction
of Incorporation or Organization)
 (I.R.S. Employer
Identification No.)
9710 Scranton Road, Suite 200 
San Diego,California92121
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including area code: (858812-3400
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareINSGNasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No 
The number of shares of the registrant’s common stock outstanding as of August 2, 2022 was 107,665,368.



TABLE OF CONTENTS
 
 Page
Item 1.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

PART I—FINANCIAL INFORMATION
Item 1.     Financial Statements.




















INSEEGO CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and share data)
 June 30,
2022
December 31,
2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$21,090 $46,474 
Restricted cash3,270 3,338 
Accounts receivable, net of allowance for doubtful accounts of $343 and $408, respectively
22,491 26,781 
Inventories46,977 37,402 
Prepaid expenses and other10,424 13,624 
Total current assets104,252 127,619 
Property, plant and equipment, net of accumulated depreciation of $24,124 and $26,692, respectively
6,930 8,102 
Rental assets, net of accumulated depreciation of $6,476 and $5,392, respectively
4,613 4,575 
Intangible assets, net of accumulated amortization of $58,807 and $48,404, respectively
46,008 46,995 
Goodwill21,922 20,336 
Right-of-use assets, net6,985 7,839 
Other assets566 377 
Total assets$191,276 $215,843 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable$45,640 $48,577 
Accrued expenses and other current liabilities24,298 26,253 
Total current liabilities69,938 74,830 
Long-term liabilities:
2025 Notes, net157,708 157,866 
Deferred tax liabilities, net864 852 
Other long-term liabilities6,456 7,149 
Total liabilities234,966 240,697 
Commitments and contingencies
Stockholders’ deficit:
Preferred stock, par value $0.001; 2,000,000 shares authorized:
Series E Preferred stock, par value $0.001; 39,500 shares designated, 25,000 shares issued and outstanding, liquidation preference of $1,000 per share (plus any accrued but unpaid dividends)
  
Common stock, par value $0.001; 150,000,000 shares authorized, 107,645,213 and 105,380,533 shares issued and outstanding, respectively
108 105 
Additional paid-in capital787,283 770,619 
Accumulated other comprehensive loss(5,097)(8,531)
Accumulated deficit(825,984)(787,047)
Total stockholders’ deficit(43,690)(24,854)
Total liabilities and stockholders’ deficit$191,276 $215,843 
See accompanying notes to unaudited condensed consolidated financial statements.
3



INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Net revenues:
IoT & Mobile Solutions$54,990 $51,836 $109,495 $94,795 
Enterprise SaaS Solutions6,866 13,857 13,745 28,495 
Total net revenues61,856 65,693 123,240 123,290 
Cost of net revenues:
IoT & Mobile Solutions40,694 39,740 83,597 73,178 
Enterprise SaaS Solutions3,270 5,604 6,503 11,288 
Total cost of net revenues43,964 45,344 90,100 84,466 
Gross profit17,892 20,349 33,140 38,824 
Operating costs and expenses:
Research and development13,619 11,773 32,179 26,328 
Sales and marketing7,721 9,821 17,494 20,825 
General and administrative6,142 7,414 14,380 16,058 
Amortization of purchased intangible assets443 664 887 1,130 
Impairment of capitalized software 1,197  1,197 
Total operating costs and expenses27,925 30,869 64,940 65,538 
Operating loss(10,033)(10,520)(31,800)(26,714)
Loss on debt conversion and extinguishment, net  (450)(432)
Interest expense, net(1,664)(1,678)(4,587)(3,523)
Other (expense) income, net(982)(617)(1,387)1,117 
Loss before income taxes(12,679)(12,815)(38,224)(29,552)
Income tax (benefit) provision(303)228 (625)449 
Net loss(12,376)(13,043)(37,599)(30,001)
Less: Net income attributable to noncontrolling interests    (214)
Net loss attributable to Inseego Corp. (12,376)(13,043)(37,599)(30,215)
Series E preferred stock dividends(677)(886)(1,338)(1,753)
Net loss attributable to common stockholders $(13,053)$(13,929)$(38,937)$(31,968)
Per share data:
Net loss per common share:
Basic and diluted$(0.12)$(0.14)$(0.37)$(0.31)
Weighted-average shares used in computation of net loss per common share:
Basic and diluted107,511,660 102,935,213 106,585,684 102,157,146 

See accompanying notes to unaudited condensed consolidated financial statements.
4


INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands)
(Unaudited)
 
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Net loss$(12,376)$(13,043)$(37,599)$(30,001)
Foreign currency translation adjustment536 2,425 3,434 693 
Total comprehensive loss$(11,840)$(10,618)$(34,165)$(29,308)
  Comprehensive income attributable to noncontrolling interests   (214)
Comprehensive loss attributable to Inseego Corp.$(11,840)$(10,618)$(34,165)$(29,522)
See accompanying notes to unaudited condensed consolidated financial statements.

5



 
INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In thousands)
(Unaudited)

Preferred StockCommon StockAdditional
Paid-in Capital
Accumulated DeficitAccumulated
Other
Comprehensive Income (Loss)
Noncontrolling InterestsTotal
Stockholders’ Equity (Deficit)
SharesAmountSharesAmount
Balance, March 31, 202135 $ 102,773 $103 $757,352 $(750,221)(8,704)$7 $(1,463)
Net loss— — — — — (13,043)— — (13,043)
Foreign currency translation adjustment— — — — — — 2,425 — 2,425 
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 336 — 1,282 — — — 1,282 
Taxes withheld on net settled vesting of restricted stock units— — — — (356)— — — (356)
Issuance of common shares in connection with a public offering, net of issuance costs— — — — (59)— — — (59)
Share-based compensation— — — — 2,307 — — — 2,307 
Net noncontrolling interest acquired— — — — — — — 1 1 
Series E preferred stock dividends— — — — 886 (886)— —  
Balance, June 30, 202135 $ 103,109 $103 $761,412 $(764,150)$(6,279)$8 $(8,906)
Balance, March 31, 202225 $ 107,389 $107 $784,267 $(812,931)$(5,633)$ $(34,190)
Net loss— — — — — $(12,376)— — (12,376)
Foreign currency translation adjustment— — — — — $— 536 — 536 
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 256 1 74 $— — — 75 
Taxes withheld on net settled vesting of restricted stock units— — — — (22)$— — — (22)
Share-based compensation
— — — — 2,287 $— — — 2,287 
Series E preferred stock dividends— — — — 677 (677)— —  
Balance, June 30, 202225 $ 107,645 $108 $787,283 $(825,984)$(5,097)$ $(43,690)
















6


INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(In thousands)
(Unaudited)


Preferred StockCommon StockAdditional
Paid-in Capital
Accumulated DeficitAccumulated
Other
Comprehensive Income (Loss)
Noncontrolling InterestsTotal
Stockholders’ Deficit
SharesAmountSharesAmount
Balance, December 31, 202035 $ 99,399 $99 $711,487 $(732,422)$(6,972)$(91)$(27,899)
Net loss— — — — — (30,215)— 214 (30,001)
Foreign currency translation adjustment— — — — — — 693 — 693 
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 1,765 2 2,842 — — — 2,844 
Taxes withheld on net settled vesting of restricted stock units— — — — (825)— — — (825)
Issuance of common shares in connection with the conversion of 2025 Notes— — 429 1 5,382 — — — 5,383 
Issuance of common shares in connection with a public offering, net of issuance costs— — 1,516 1 29,368 — — — 29,369 
Share-based compensation
— — — — 11,405 — — — 11,405 
Series E preferred stock dividends— — — — 1,753 (1,753)— —  
Net noncontrolling interest acquired— — — — — 240 — (115)125 
Balance, June 30, 202135  103,109 $103 $761,412 $(764,150)$(6,279)$8 $(8,906)
Balance, December 31, 202125 $ 105,381 $105 $770,619 $(787,047)$(8,531)$— $(24,854)
Net loss— — — — — (37,599)— — (37,599)
Foreign currency translation adjustment— — — — — — 3,434 — 3,434 
Adjustment relating to extinguishment of 2022 Notes1,728 — — — 1,728 
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan— — 2,269 3 148 — — — 151 
Taxes withheld on net settled vesting of restricted stock units— — (5)— (36)— — — (36)
Share-based compensation
— — — — 13,486 — — — 13,486 
Series E preferred stock dividends— — — — 1,338 (1,338)— — — 
Balance, June 30, 202225 $ 107,645 $108 $787,283 $(825,984)$(5,097)$ $(43,690)
7


INSEEGO CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
 20222021
Cash flows from operating activities:
Net loss$(37,599)$(30,001)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization13,955 13,051 
(Recoveries) provision for bad debts(15)266 
Impairment of capitalized software 1,197 
Provision for excess and obsolete inventory896 496 
Share-based compensation expense13,486 11,405 
Amortization of debt discount and debt issuance costs2,022 746 
Fair value adjustment on derivative instrument(902)(1,823)
Loss on debt conversion and extinguishment, net450 432 
Deferred income taxes(96)38 
Right-of-use assets1,070 883 
Other (330)
Changes in assets and liabilities, net of effects of divestiture:
Accounts receivable5,239 6,483 
Inventories(10,148)(834)
Prepaid expenses and other assets3,100 1,158 
Accounts payable(6,207)(16,015)
Accrued expenses, income taxes, and other(1,740)2,180 
Operating lease liabilities(1,109)(1,362)
Net cash used in operating activities(17,598)(12,030)
Cash flows from investing activities:
Acquisition of noncontrolling interest (116)
Purchases of property, plant and equipment(1,059)(2,455)
Proceeds from the sale of property, plant and equipment 506 
Additions to capitalized software development costs(6,222)(15,369)
Net cash used in investing activities(7,281)(17,434)
Cash flows from financing activities:
Net borrowing of bank and overdraft facilities(139)295 
Principal payments under finance lease obligations(62)(2,173)
Proceeds from a public offering, net of issuance costs 29,369 
Principal payments on financed assets(1,231) 
Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units115 2,020 
Net cash (used in) provided by financing activities(1,317)29,511 
Effect of exchange rates on cash744 321 
Net (decrease) increase in cash, cash equivalents and restricted cash(25,452)368 
Cash, cash equivalents and restricted cash, beginning of period49,812 40,015 
Cash, cash equivalents and restricted cash, end of period$24,360 $40,383 
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Interest$2,631 $2,782 
Income taxes$26 $252 
Supplemental disclosures of non-cash activities:
Transfer of inventories to rental assets$134 $3,403 
Capital expenditures financed through accounts payable or accrued liabilities$3,228 $3,641 
Right-of-use assets obtained in exchange for operating leases liabilities$158 $148 
2025 Notes conversion, including shares issued in satisfaction of interest make-whole payment
$ $5,383 

See accompanying notes to unaudited condensed consolidated financial statements.
8

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

1. 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 June 30, 2022 and the results of the Company’s operations for the three and six months ended June 30, 2022 and 2021 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, 2021. The year-end condensed consolidated balance sheet data as of December 31, 2021 was derived from the Company’s audited consolidated financial statements and may not include all disclosures required by accounting principles generally accepted in the United States. Certain prior period amounts were reclassified to conform to the current period presentation. These reclassifications did not affect total revenues, costs and expenses, net loss, assets, liabilities or stockholders’ deficit. Except as set forth below, the accounting policies used in preparing these unaudited condensed consolidated financial statements are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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, the novel coronavirus (“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 June 30, 2022, the Company had available cash and cash equivalents totaling $21.1 million, excluding restricted cash of $3.3 million.
On August 5, 2022, Inseego Corp. (“Inseego” or the “Company”) entered into a Loan and Security Agreement (the “Credit Agreement”), by and among Siena Lending Group LLC, as lender (“Lender”), Inseego Wireless, Inc., a Delaware corporation (“Inseego Wireless”), and Inseego North America LLC, an Oregon limited liability company, as borrowers (“Inseego North America” and, together with Inseego Wireless, the “Borrowers”), and the Company, as guarantor (together with the Borrowers, the “Loan Parties”). The Credit Agreement establishes a secured asset-backed revolving credit facility which is comprised of a $50 million revolving credit facility (the “Credit Facility”), with a minimum draw of $4.5 million upon execution of the Credit Agreement. The Credit Facility matures on December 31, 2024. Availability under the Credit Facility is determined by a Borrowing Base (as defined in the Credit Agreement) comprised of a percentage of eligible accounts receivable and eligible inventory of the Borrowers. The Borrowers’ obligations under the Credit Agreement are guaranteed by the Company. The Loan Parties’ obligations under the Credit Agreement are secured by a continuing security interest in all property of each Loan Party, subject to certain Excluded Collateral (as defined in the Credit Agreement).

Borrowings under the Credit Facility may take the form of base rate loans or Secured Overnight Financing Rate (“SOFR”) loans. SOFR loans will bear interest at a rate per annum equal to Term SOFR (as defined in the Credit Agreement) plus an adjustment based on the outstanding amount for a preceding month. If the outstanding amount for a preceding month is less than $15 million, the interest rate on the Credit Agreement is Term SOFR (as defined in the Credit Agreement) plus 3.50%, with a Term SOFR floor of 1.00%. If the outstanding amount for a preceding month is greater than $15 million, the interest rate is calculated by Term SOFR plus 4.00%, with a Term SOFR floor of 1.00%. If the outstanding amount for a preceding month is greater than $25 million, the interest rate is calculated by Term SOFR plus 5.50%, with a Term SOFR floor of 1.00%. The Credit Agreement is also subject to closing costs and financial covenants.
9

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

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 divested of $5.0 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.
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.
Principles of Consolidation
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-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. Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that the COVID-19 pandemic could have on our significant accounting estimates. Significant estimates include revenue recognition, capitalized software costs, allowance for credit losses, 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.

Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include highly liquid investments with original maturities of three months or less. The Company’s cash and cash equivalents are generally held with large financial institutions worldwide to reduce the amount of exposure to any credit risk. Restricted cash consists of Company funds in escrow with a financial institution as collateral for potential future uninsured warranty claims related to the divestiture of Ctrack South Africa. Cash, cash equivalents and restricted cash are recorded at market value, which approximates cost. Gains and losses associated with the Company’s foreign currency denominated demand deposits are recorded as a component of other income, net, in the consolidated statements of operations. The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within the consolidated balance sheets to “Cash, cash equivalents, and restricted cash, end of period” as reported within the consolidated
10

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

statements of cash flows (in thousands):
 June 30,
2022
December 31,
2021
Cash and cash equivalents$21,090 $46,474 
Restricted cash3,270 3,338 
Cash, cash equivalents and restricted cash, end of period
$24,360 $49,812 
Recently Adopted Accounting Pronouncements

In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40)-Accounting For Convertible Instruments and Contracts in an Entity's Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted net income per share calculation in certain areas. The new guidance is effective for annual and interim periods beginning after December 15, 2021. The Company adopted this standard in the first quarter of fiscal 2022 and it did not have an impact to the condensed consolidated financial statements.

In May 2021, the FASB issued ASU 2021-04, Earnings Per Share (Topic 260), Debt-Modifications and Extinguishments (Subtopic 470-50), Compensation-Stock Compensation (Topic 718), and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). The new ASU addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. This amendment is effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company adopted this standard in the first quarter of fiscal 2022 and it did not have an impact to the condensed consolidated financial statements.
Recent Accounting Pronouncements Not Yet Adopted
Other than the above mentioned recently adopted accounting pronouncements, there have been no recent accounting pronouncements, changes in accounting pronouncements or recent accounting pronouncements not yet adopted during the six months ended June 30, 2022 that are of significance or potential significance to the Company’s financial position, results of operations and cash flows.

2. Financial Statement Details
Inventories
Inventories, net, consist of the following (in thousands):
 June 30,
2022
December 31,
2021
Finished goods$38,978 $33,112 
Raw materials and components7,999 4,290 
Total inventories$46,977 $37,402 

11

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

Prepaid expenses and other
Prepaid expenses and other consists of the following (in thousands):
 June 30,
2022
December 31,
2021
Rebate receivables$3,569 $6,398 
Receivables from contract manufacturers1,671 2,626 
Software licenses1,777 1,261 
Insurance368 1,269 
Deposits1,006 1,023 
Financed assets655 323 
Other1,378 724 
$10,424 $13,624 
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities consist of the following (in thousands):
 June 30,
2022
December 31,
2021
Royalties$1,762 $2,243 
Payroll and related expenses9,092 9,326 
Warranty obligations480 473 
Professional fees548 502 
Bank overdrafts231 370 
Accrued interest877 877 
Contract liabilities5,042 3,832 
Operating lease liabilities1,580 1,769 
Accrued contract manufacturing liabilities999 927 
Liabilities related to financed assets272 1,593 
Value added tax payables394 642 
Other3,021 3,699 
Total accrued expenses and other current liabilities$24,298 $26,253 

3. Fair Value Measurement of Assets and Liabilities
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model.
The Company classifies inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) and is defined as follows:
Level 1:    Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis.
12

INSEEGO CORP.
Notes to Condensed Consolidated Financial Statements (Unaudited)

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 six months ended June 30, 2022 or 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 June 30, 2022 and December 31, 2021 (in thousands):
June 30, 2022December 31, 2021
Total Fair ValueLevel 3Level 1Total Fair ValueLevel 3Level 1
Assets
Cash equivalents
Money market funds$ $ $ $126 $ $126 
Total assets$ $ $ $126 $ $126 
Liabilities
2025 Notes
     Interest make-whole payment$24 $24 $ $926 $926 $ 
        Total liabilities$24 $24 $ $926 $926 $