0001022652-22-000029 | 10-Q | XBRL Viewer

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Cover - shares	6 Months Ended
Cover - shares	Jun. 30, 2022	Aug. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	9710 Scranton Road, Suite 200
Entity Address, City or Town	San Diego,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
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		107,665,368
Entity Central Index Key	0001022652
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 21,090	$ 46,474
Restricted cash	3,270	3,338
Accounts receivable, net of allowance for doubtful accounts of $343 and $408, respectively	22,491	26,781
Inventories	46,977	37,402
Prepaid expenses and other	10,424	13,624
Total current assets	104,252	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
Goodwill	21,922	20,336
Right-of-use assets, net	6,985	7,839
Other assets	566	377
Total assets	191,276	215,843
Current liabilities:
Accounts payable	45,640	48,577
Accrued expenses and other current liabilities	24,298	26,253
Total current liabilities	69,938	74,830
Liabilities, Noncurrent [Abstract]
2025 Notes, net	157,708	157,866
Deferred tax liabilities, net	864	852
Other long-term liabilities	6,456	7,149
Total liabilities	234,966	240,697
Commitments and Contingencies
Stockholders’ deficit:
Preferred Stock, Value, Issued	0	0
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 capital	787,283	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

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 343	$ 408
Accumulated depreciation, Property, plant and equipment	24,124	26,692
Accumulated depreciation, Rental assets	6,476	5,392
Accumulated amortization, Intangible assets	$ 58,807	$ 48,404
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)	107,645,213	105,380,533
Common stock, shares outstanding (in shares)	107,645,213	105,380,533
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	25,000
Preferred stock, shares outstanding (in shares)	25,000	25,000
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		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net revenues:
Total net revenues	$ 61,856	$ 65,693	$ 123,240	$ 123,290
Cost of net revenues:
Total cost of net revenues	43,964	45,344	90,100	84,466
Gross profit	17,892	20,349	33,140	38,824
Operating costs and expenses:
Research and development	13,619	11,773	32,179	26,328
Sales and marketing	7,721	9,821	17,494	20,825
General and administrative	6,142	7,414	14,380	16,058
Amortization of purchased intangible assets	443	664	887	1,130
Total operating costs and expenses	27,925	30,869	64,940	65,538
Operating loss	(10,033)	(10,520)	(31,800)	(26,714)
Other (expense) income:
Loss on debt conversion and extinguishment, net	0	0	(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	0	0	0	(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)
Net loss per common share:
Basic (in dollars per share)	$ (0.12)	$ (0.14)	$ (0.37)	$ (0.31)
Diluted (in dollars per share)	$ (0.12)	$ (0.14)	$ (0.37)	$ (0.31)
Weighted-average shares used in computation of net loss per common share:
Basic (in shares)	107,511,660	102,935,213	106,585,684	102,157,146,000
Diluted (in shares)	107,511,660	102,935,213	106,585,684	102,157,146,000
IoT & Mobile Solutions
Net revenues:
Total net revenues	$ 54,990	$ 51,836	$ 109,495	$ 94,795
Cost of net revenues:
Total cost of net revenues	40,694	39,740	83,597	73,178
Enterprise SaaS Solutions
Net revenues:
Total net revenues	6,866	13,857	13,745	28,495
Cost of net revenues:
Total cost of net revenues	$ 3,270	$ 5,604	$ 6,503	$ 11,288

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (12,376)	$ (13,043)	$ (37,599)	$ (30,001)
Foreign currency translation adjustment	536	2,425	3,434	693
Total comprehensive loss	(11,840)	(10,618)	(34,165)	(29,308)
Comprehensive income attributable to noncontrolling interests	0	0	0	(214)
Comprehensive loss attributable to Inseego Corp.	$ (11,840)	$ (10,618)	$ (34,165)	$ (29,522)

- 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' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	2025 Notes	2022 Notes	Common shares	Preferred Stock	Common Stock	Common Stock 2025 Notes	Common Stock Common shares	Additional Paid-in Capital	Additional Paid-in Capital 2025 Notes	Additional Paid-in Capital 2022 Notes	Additional Paid-in Capital Common shares	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Beginning balance (shares) at Dec. 31, 2020					35	99,399
Beginning balance at Dec. 31, 2020	$ (27,899)				$ 0	$ 99			$ 711,487				$ (732,422)	$ (6,972)	$ (91)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(30,001)												(30,215)		214
Foreign currency translation adjustment	693													693
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)						1,765
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	2,844					$ 2			2,842
Taxes withheld on net settled vesting of restricted stock units	(825)								(825)
Issuance of common shares in connection with conversion of notes (shares)							429
Issuance of common shares in connection with conversion of notes		$ 5,383					$ 1			$ 5,382
Issuance of shares (shares)								1,516
Issuance of shares				$ 29,369				$ 1				$ 29,368
Share-based compensation	11,405								11,405
Series E preferred stock dividends	0								1,753				(1,753)
Net noncontrolling interest acquired	125												240		(115)
Ending balance (shares) at Jun. 30, 2021					35	103,109
Ending balance at Jun. 30, 2021	(8,906)				$ 0	$ 103			761,412				(764,150)	(6,279)	8
Beginning balance (shares) at Mar. 31, 2021					35	102,773
Beginning balance at Mar. 31, 2021	(1,463)				$ 0	$ 103			757,352				(750,221)	(8,704)	7
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (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 (shares)						336
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	1,282								1,282
Taxes withheld on net settled vesting of restricted stock units	(356)								(356)
Issuance of shares				$ (59)								$ (59)
Share-based compensation	2,307								2,307
Series E preferred stock dividends	0								886				(886)
Net noncontrolling interest acquired	1														1
Ending balance (shares) at Jun. 30, 2021					35	103,109
Ending balance at Jun. 30, 2021	(8,906)				$ 0	$ 103			761,412				(764,150)	(6,279)	8
Beginning balance (shares) at Dec. 31, 2021					25	105,381
Beginning balance at Dec. 31, 2021	(24,854)				$ 0	$ 105			770,619				(787,047)	(8,531)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(37,599)												(37,599)
Foreign currency translation adjustment	3,434													3,434
Adjustment relating to extinguishment of 2022 Notes			$ 1,728								$ 1,728
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (shares)						2,269
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	151					$ 3			148
Taxes withheld on net settled vesting of restricted stock units (in shares)						(5)
Taxes withheld on net settled vesting of restricted stock units	(36)								(36)
Share-based compensation	13,486								13,486
Series E preferred stock dividends									1,338				(1,338)
Ending balance (shares) at Jun. 30, 2022					25	107,645
Ending balance at Jun. 30, 2022	(43,690)				$ 0	$ 108			787,283				(825,984)	(5,097)	0
Beginning balance (shares) at Mar. 31, 2022					25	107,389
Beginning balance at Mar. 31, 2022	(34,190)				$ 0	$ 107			784,267				(812,931)	(5,633)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (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 (shares)						256
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan	75					$ 1			74
Taxes withheld on net settled vesting of restricted stock units	(22)								(22)
Share-based compensation	2,287								2,287
Series E preferred stock dividends	0								677				(677)
Ending balance (shares) at Jun. 30, 2022					25	107,645
Ending balance at Jun. 30, 2022	$ (43,690)				$ 0	$ 108			$ 787,283				$ (825,984)	$ (5,097)	$ 0

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ (37,599)	$ (30,001)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	13,955	13,051
(Recoveries) provision for bad debts	(15)	266
Impairment of capitalized software	0	1,197
Provision for excess and obsolete inventory	896	496
Share-based compensation expense	13,486	11,405
Amortization of debt discount and debt issuance costs	2,022	746
Fair value adjustment on derivative instrument	(902)	(1,823)
Loss on debt conversion and extinguishment, net	450	432
Deferred income taxes	(96)	38
Finance Lease, Right-of-Use Asset, Amortization	1,070	883
Other	0	(330)
Changes in assets and liabilities, net of effects of divestiture:
Accounts receivable	5,239	6,483
Inventories	(10,148)	(834)
Prepaid expenses and other assets	3,100	1,158
Accounts payable	(6,207)	(16,015)
Accrued expenses, income taxes, and other	(1,740)	2,180
Increase (Decrease) in Operating Lease Liability	(1,109)	(1,362)
Net cash used in operating activities	(17,598)	(12,030)
Cash flows from investing activities:
Acquisition of noncontrolling interest	0	(116)
Purchases of property, plant and equipment	(1,059)	(2,455)
Proceeds from the sale of property, plant and equipment	0	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	0	29,369
Principal payments on financed assets	(1,231)	0
Proceeds from stock option exercises and employee stock purchase plan, net of taxes paid on vested restricted stock units	115	2,020
Net cash (used in) provided by financing activities	(1,317)	29,511
Effect of exchange rates on cash	744	321
Net (decrease) increase in cash, cash equivalents and restricted cash	(25,452)	368
Cash, cash equivalents and restricted cash, beginning of period	49,812	40,015
Cash, and cash equivalents, and restricted cash, end of period	24,360	40,383
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	$ 0	$ 5,383

Basis of Presentation

6 Months Ended

Jun. 30, 2022

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 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.

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

statements of cash flows (in thousands):


	June 30, 2022		December 31, 2021

Cash and cash equivalents	$	21,090	$	46,474
Restricted cash	3,270		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.

Financial Statement Details

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 components	7,999		4,290
Total inventories	$	46,977	$	37,402

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 manufacturers	1,671		2,626
Software licenses	1,777		1,261
Insurance	368		1,269
Deposits	1,006		1,023
Financed assets	655		323
Other	1,378		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 expenses	9,092		9,326
Warranty obligations	480		473
Professional fees	548		502
Bank overdrafts	231		370
Accrued interest	877		877


Contract liabilities	5,042		3,832
Operating lease liabilities	1,580		1,769
Accrued contract manufacturing liabilities	999		927
Liabilities related to financed assets	272		1,593
Value added tax payables	394		642
Other	3,021		3,699
Total accrued expenses and other current liabilities	$	24,298	$	26,253

Fair Value Measurement of Assets and Liabilities

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

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

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

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

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

Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions. The 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, 2022						December 31, 2021
	Total Fair Value		Level 3		Level 1		Total Fair Value		Level 3		Level 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	$	—

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


	June 30, 2022		December 31, 2021
Volatility	50	%	50	%
Stock price	$1.89 per share		$5.83 per share
Credit spread	22.00	%	15.93	%
Term	2.84 years		3.34 years
Dividend yield	—	%	—	%
Risk-free rate	2.98	%	1.02	%

The following table sets forth a summary of changes in the fair value of Level 3 liabilities for the six months ended June 30, 2022 (in thousands):


	Balance as of December 31, 2021		Additions		Conversions		Change in fair value		Balance as of June 30, 2022
Liabilities:
Interest make-whole payment	$	926	$	—	$	—	$	(902)	$	24

The Company evaluated the 2025 Notes under ASC 815, Derivatives and Hedging, and identified an embedded derivative that required bifurcation. The embedded derivative is an interest make-whole payment. The estimated fair values of the interest make-whole derivative liability at June 30, 2022 and December 31, 2021 were determined using significant assumptions which include an implied credit spread rate for notes with a similar term, the expected volatility and dividend yield of the Company’s common stock and the risk-free interest rate.

Changes in the fair value of the interest make-whole payment totaling a gain of $0.9 million for the six months ended June 30, 2022 are included in the Company’s condensed consolidated statement of operations within other income (expense), net. As of June 30, 2022, the embedded derivative had a fair value of $0.02 million.

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 4. Debt. The Company carries its 2025 Notes at amortized cost adjusted for changes in fair value of the embedded derivative. As of June 30, 2022, $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.

- 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

Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Asset-backed Revolving Line of Credit

On August 5, 2022, the Company entered into the Credit Agreement with Siena Lending Group LLC. The Credit Agreement establishes a secured asset-backed revolving credit facility which is comprised of a $50 million revolving 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 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 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 plus 3.50% per annum, 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 Rate 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 Rate plus 5.50%, with a Term SOFR floor of 1.00%. The Credit Agreement is also subject to closing costs and financial covenants.

2025 Notes

On May 12, 2020, the Company completed its registered public offering of $100.0 million aggregate principal amount of 2025 Notes and issued $80.4 million principal amount of 2025 Notes in the privately negotiated exchange agreements that closed concurrently with the registered offering in May 2020.

During the six months ended June 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 June 30, 2022, $161.9 million in principal amount of the 2025 Notes were outstanding, $80.4 million of which were held by related parties, and $0.4 million of accrued interest due to related parties was included within accrued expenses and other current liabilities on the condensed consolidated balance sheets. As of December 31, 2021, $161.9 million in principal amount of the 2025 Notes were outstanding, $80.4 million of which were held by related parties, and $0.4 million of accrued interest due to related parties was included within accrued expenses and other current liabilities on the condensed consolidated balance sheets. Assuming no repurchases or conversions of the 2025 Notes prior to May 1, 2025, the entire principal balance of $161.9 million of the 2025 Notes is due on May 1, 2025.

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


	June 30, 2022		December 31, 2021
Principal	$	161,898	$	161,898
Add: fair value of embedded derivative	24		926
Less: unamortized debt discount	(2,346)		(2,761)
Less: unamortized issuance costs	(1,868)		(2,197)
Net carrying amount	$	157,708	$	157,866

The effective interest rate on the liability component of the 2025 Notes was 4.18% and 4.17% for the three months ended June 30, 2022 and 2021, respectively, and 4.20% and 4.16% for the six months ended June 30, 2022 and 2021, respectively. The following table sets forth total interest expense recognized related to the 2025 Notes (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,

	2022		2021		2022		2021
Contractual interest expense	$	1,315	$	1,315	$	2,631	$	2,584
Amortization of debt discount	207		207		414		415
Amortization of debt issuance costs	165		165		330		330
Total interest expense	$	1,687	$	1,687	$	3,375	$	3,329

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI https://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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+ Details

Share-based Compensation

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

During the six months ended June 30, 2022, the Company granted awards under the 2018 Omnibus Incentive Compensation Plan, previously named the Amended and Restated 2009 Omnibus Incentive Compensation Plan (the “2018 Plan”), and the 2015 Incentive Compensation Plan (the “2015 Plan”). The Compensation Committee of the Board of Directors administers the plans. Under the 2018 Plan, a maximum of 8,897,084 shares of common stock may be issued upon the exercise of stock options, in the form of restricted stock, or in settlement of restricted stock units (“RSUs”) or other awards, including awards with alternative vesting schedules such as performance-based criteria.

For the three and six months ended June 30, 2022 and 2021 the following table presents total share-based compensation expense in each functional line item on the unaudited condensed consolidated statements of operations (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021			2022		2021
Cost of revenues	$	259	$	234		$	1,674	$	1,812
Research and development	428		534			4,498		3,762
Sales and marketing	554		559			2,597		2,547
General and administrative	1,046		980			4,717		3,284

Total	$	2,287	$	2,307		$	13,486	$	11,405

During the quarter ended March 31, 2022, the Board of Directors of the Company approved and the Company granted restricted stock units to eligible employees under the 2018 Plan that were immediately vested, as fiscal 2021 annual bonus payments. The total charges recorded during the quarter ended March 31, 2022 were $8.8 million. Such bonus payments in fiscal 2021 were paid and recorded in the quarter ended March 31, 2021 and total charges related to such bonus payments were $7.0 million.

Stock Options

The Compensation Committee of the Board of Directors determines eligibility, vesting schedules and exercise prices for stock options granted. The Company generally uses the Black-Scholes option pricing model to estimate the fair value of its stock options. For performance stock awards subject to market-based vesting conditions, fair values are determined using the Monte-Carlo simulation model. Stock options generally have a term of ten years and vest over a three- to four-year period.

The following table summarizes the Company’s stock option activity for the six months ended June 30, 2022:






Outstanding — December 31, 2021			8,085,793
Granted			1,422,500
Exercised			(212,791)
Canceled			(657,005)
Outstanding — June 30, 2022			8,638,497

Exercisable — June 30, 2022			5,229,193

At June 30, 2022, total unrecognized compensation expense related to stock options was $10.1 million, which is expected to be recognized over a weighted-average period of 2.92 years.

Restricted Stock Units

Pursuant to the 2018 Plan and the 2015 Plan, the Company may issue RSUs that, upon satisfaction of vesting conditions, allow recipients to receive common stock. Issuances of such awards reduce common stock available under the 2018 Plan and 2015 Plan for stock incentive awards. The Company measures compensation cost associated with grants of RSUs at fair value, which is generally the closing price of the Company’s stock on the date of grant. RSUs generally vest over a three- to four-year period.

The following table summarizes the Company’s RSU activity for the six months ended June 30, 2022:






Non-vested — December 31, 2021			1,247,723
Granted			2,203,100
Vested			(1,911,264)
Forfeited			(130,633)
Non-vested — June 30, 2022			1,408,926

At June 30, 2022, total unrecognized compensation expense related to RSUs was $5.2 million, which is expected to be recognized over a weighted-average period of 3.15 years.

Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share Basic earnings per share (“EPS”) excludes dilution and is computed by dividing net loss attributable to common stockholders 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 2025 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.

The calculation of basic and diluted earnings per share was as follows (in thousands, except share and per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net loss attributable to common stockholders	$	(13,053)	$	(13,929)	$	(38,937)	$	(31,968)
Weighted-average common shares outstanding	107,511,660		102,935,213		106,585,684		102,157,146
Basic and diluted net loss per share	$	(0.12)	$	(0.14)	$	(0.37)	$	(0.31)

The following is a summary of outstanding anti-dilutive potential common stock that was excluded from diluted net loss per share attributable to stockholders in the following periods:


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2022	2021	2022	2021
2025 Notes	14,341	14,341	14,341	14,341
Warrants	2,500	2,500	2,500	2,500
Non-qualified stock options	8,693	8,571	8,521	8,571
Restricted stock units	1,443	420	1,433	420
Employee stock purchase plan	355	20	355	20
Total	27,332	25,852	27,150	25,852

Private Placements and Public Offering	6 Months Ended
Private Placements and Public Offering	Jun. 30, 2022
Equity [Abstract]
Private Placements and Public Offering	Private Placements and Public Offering Common Stock On March 28, 2019, the Company issued warrants to purchase 2,500,000 shares of common stock (the “2019 Warrants”) to certain 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, and became exercisable on September 28, 2019. The Company assessed the terms of the warrants under ASC 815. Pursuant to this guidance, the Company had determined that the warrants do not require liability accounting and has classified the warrants as equity. As of June 30, 2022, the warrants expired unexercised. 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.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Geographic Information and Concentrations of Risk

6 Months Ended

Jun. 30, 2022

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 June 30,			Six Months Ended June 30,
		2022		2021		2022			2021
United States and Canada		$	52,826	$	51,473	$	105,468		$	94,209
Europe		7,602		2,035		13,222			5,534
South Africa		—		7,790		—			14,898
Other		1,428		4,395		4,550			8,649
Total		$	61,856	$	65,693	$	123,240	123240000	$	123,290

Concentrations of Credit Risk

For the three months ended June 30, 2022, two customers accounted for 31.4% and 40.9% of net revenues, respectively. For the three months ended June 30, 2021, two customers accounted for 46.7% and 21.3%, respectively, of net revenues.

For the six months ended June 30, 2022, two customers accounted for 34.3% and 40.4% of net revenues, respectively. For the six months ended June 30, 2021, two customers accounted for 46.4% and 18.7%, respectively, of net revenues.

As of June 30, 2022, two customers accounted for 25.4% and 30.9% of accounts receivable, net, respectively. As of December 31, 2021, two customers accounted for 61.7% and 12.6% 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.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Noncancellable Purchase Obligations The Company typically enters into commitments with its contract manufacturers that require future purchase of goods or services in the three to four quarters following the balance sheet date. Such commitments are noncancellable (“noncancellable purchase obligations”). As of June 30, 2022, future payments under these noncancellable purchase obligations were approximately $145.1 million. As of December 31, 2021, future payments under these noncancellable purchase obligations were approximately $165.8 million. Legal The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business and may be required to indirectly participate in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. 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

6 Months Ended

Jun. 30, 2022

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.

The components of the right-of-use assets and lease liabilities were as follows (in thousands):


	Balance Sheet Classification	June 30, 2022			December 31, 2021
Right-of-use assets, net	Right-of-use assets, net	$	6,985		$	7,839

Current operating lease liabilities	Accrued expenses and other current liabilities	$	1,580		$	1,769
Non-current operating lease liabilities	Other long-term liabilities	6,231			7,112
Total operating lease liabilities		$	7,811		$	8,881

Weighted-average remaining lease term (in years)		4.7			5.0
Weighted-average discount rate		9.1		%	9.1		%

The components of lease cost were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs included in operating costs and expenses:
Operating leases	$	590	$	290	$	1,200	$	800

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2022	2021		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows related to operating leases	617	$	744	$	1,239	$	1,279

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	79	$	108	$	158	$	148

The future minimum payments under operating leases were as follows as of June 30, 2022 (in thousands):


2022 (remainder)	$	1,205
2023	2,018
2024	1,896
2025	1,685
2026	1,686
2027	1,125
Thereafter	—
Total minimum operating lease payments	$	9,615
Less: amounts representing interest	(1,804)
Present value of net minimum operating lease payments	7,811
Less: current portion	(1,580)
Long-term portion of operating lease obligations	$	6,231

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 components of the right-of-use assets and lease liabilities were as follows (in thousands):


	Balance Sheet Classification	June 30, 2022			December 31, 2021
Right-of-use assets, net	Right-of-use assets, net	$	6,985		$	7,839

Current operating lease liabilities	Accrued expenses and other current liabilities	$	1,580		$	1,769
Non-current operating lease liabilities	Other long-term liabilities	6,231			7,112
Total operating lease liabilities		$	7,811		$	8,881

Weighted-average remaining lease term (in years)		4.7			5.0
Weighted-average discount rate		9.1		%	9.1		%

The components of lease cost were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs included in operating costs and expenses:
Operating leases	$	590	$	290	$	1,200	$	800

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2022	2021		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows related to operating leases	617	$	744	$	1,239	$	1,279

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	79	$	108	$	158	$	148

The future minimum payments under operating leases were as follows as of June 30, 2022 (in thousands):


2022 (remainder)	$	1,205
2023	2,018
2024	1,896
2025	1,685
2026	1,686
2027	1,125
Thereafter	—
Total minimum operating lease payments	$	9,615
Less: amounts representing interest	(1,804)
Present value of net minimum operating lease payments	7,811
Less: current portion	(1,580)
Long-term portion of operating lease obligations	$	6,231

Lessor

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s income tax (benefit) provision was $(0.3) million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively. The Company’s income tax (benefit) provision was $(0.6) million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively. The income tax (benefit) provision 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 several of its foreign subsidiaries. The tax benefit in 2022 and the tax expense in 2021 were largely driven by foreign currency losses, and gains, respectively, at the Company’s 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, 2022. On October 28, 2021, the House Rules Committee, under the Biden Administration released new proposed tax legislation under the “Build Back Better Act” (“BBBA”) which contains potential reversals and revisions of key provisions of the 2017 Tax Cuts and Jobs Act. The BBBA, which was passed by the U.S. House of Representatives in November 2021, is proposed legislation that has not yet been enacted into law. Additionally, in late March 2022, the Biden administration proposed a 28% corporate income tax rate. The Company does not believe this will have a material impact on its effective tax rate, though it continues to monitor the Biden Administration’s proposals.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2022
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 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.
Principles of Consolidation	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	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	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, 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.
Recently Adopted Accounting Pronouncements and Pronouncements Not Yet Adopted	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.
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.

Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

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 statements of cash flows (in thousands):


	June 30, 2022		December 31, 2021

Cash and cash equivalents	$	21,090	$	46,474
Restricted cash	3,270		3,338
Cash, cash equivalents and restricted cash, end of period	$	24,360	$	49,812

Financial Statement Details (Tables)

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Inventories

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


	June 30, 2022		December 31, 2021
Finished goods	$	38,978	$	33,112
Raw materials and components	7,999		4,290
Total inventories	$	46,977	$	37,402

Summary of Prepaid Expenses and Other

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 expenses	9,092		9,326
Warranty obligations	480		473
Professional fees	548		502
Bank overdrafts	231		370
Accrued interest	877		877


Contract liabilities	5,042		3,832
Operating lease liabilities	1,580		1,769
Accrued contract manufacturing liabilities	999		927
Liabilities related to financed assets	272		1,593
Value added tax payables	394		642
Other	3,021		3,699
Total accrued expenses and other current liabilities	$	24,298	$	26,253

Schedule of Other Current Assets

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 manufacturers	1,671		2,626
Software licenses	1,777		1,261
Insurance	368		1,269
Deposits	1,006		1,023
Financed assets	655		323
Other	1,378		724
	$	10,424	$	13,624

Fair Value Measurement of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Measured at Fair Value on Recurring Basis


	June 30, 2022						December 31, 2021
	Total Fair Value		Level 3		Level 1		Total Fair Value		Level 3		Level 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	$	—

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:


	June 30, 2022		December 31, 2021
Volatility	50	%	50	%
Stock price	$1.89 per share		$5.83 per share
Credit spread	22.00	%	15.93	%
Term	2.84 years		3.34 years
Dividend yield	—	%	—	%
Risk-free rate	2.98	%	1.02	%

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 six months ended June 30, 2022 (in thousands):


	Balance as of December 31, 2021		Additions		Conversions		Change in fair value		Balance as of June 30, 2022
Liabilities:
Interest make-whole payment	$	926	$	—	$	—	$	(902)	$	24

Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Net Carrying Amount of Debt

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


	June 30, 2022		December 31, 2021
Principal	$	161,898	$	161,898
Add: fair value of embedded derivative	24		926
Less: unamortized debt discount	(2,346)		(2,761)
Less: unamortized issuance costs	(1,868)		(2,197)
Net carrying amount	$	157,708	$	157,866

Schedule of Interest Expense

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


	Three Months Ended June 30,				Six Months Ended June 30,

	2022		2021		2022		2021
Contractual interest expense	$	1,315	$	1,315	$	2,631	$	2,584
Amortization of debt discount	207		207		414		415
Amortization of debt issuance costs	165		165		330		330
Total interest expense	$	1,687	$	1,687	$	3,375	$	3,329

Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021			2022		2021
Cost of revenues	$	259	$	234		$	1,674	$	1,812
Research and development	428		534			4,498		3,762
Sales and marketing	554		559			2,597		2,547
General and administrative	1,046		980			4,717		3,284

Total	$	2,287	$	2,307		$	13,486	$	11,405

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the six months ended June 30, 2022:






Outstanding — December 31, 2021			8,085,793
Granted			1,422,500
Exercised			(212,791)
Canceled			(657,005)
Outstanding — June 30, 2022			8,638,497

Exercisable — June 30, 2022			5,229,193

Summary of Restricted Stock Unit Activity

The following table summarizes the Company’s RSU activity for the six months ended June 30, 2022:






Non-vested — December 31, 2021			1,247,723
Granted			2,203,100
Vested			(1,911,264)
Forfeited			(130,633)
Non-vested — June 30, 2022			1,408,926

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Schedule of Calculation of Basic and Diluted Earnings per Share

The calculation of basic and diluted earnings per share was as follows (in thousands, except share and per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net loss attributable to common stockholders	$	(13,053)	$	(13,929)	$	(38,937)	$	(31,968)
Weighted-average common shares outstanding	107,511,660		102,935,213		106,585,684		102,157,146
Basic and diluted net loss per share	$	(0.12)	$	(0.14)	$	(0.37)	$	(0.31)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following is a summary of outstanding anti-dilutive potential common stock that was excluded from diluted net loss per share attributable to stockholders in the following periods:


	Three Months Ended June 30,		Six Months Ended June 30,
(in thousands)	2022	2021	2022	2021
2025 Notes	14,341	14,341	14,341	14,341
Warrants	2,500	2,500	2,500	2,500
Non-qualified stock options	8,693	8,571	8,521	8,571
Restricted stock units	1,443	420	1,433	420
Employee stock purchase plan	355	20	355	20
Total	27,332	25,852	27,150	25,852

Geographic Information and Concentrations of Risk (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30,			Six Months Ended June 30,
		2022		2021		2022			2021
United States and Canada		$	52,826	$	51,473	$	105,468		$	94,209
Europe		7,602		2,035		13,222			5,534
South Africa		—		7,790		—			14,898
Other		1,428		4,395		4,550			8,649
Total		$	61,856	$	65,693	$	123,240	123240000	$	123,290

Leases (Tables)

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Schedule of Components of Right-of-Use Assets and Lease Liabilities

The components of the right-of-use assets and lease liabilities were as follows (in thousands):


	Balance Sheet Classification	June 30, 2022			December 31, 2021
Right-of-use assets, net	Right-of-use assets, net	$	6,985		$	7,839

Current operating lease liabilities	Accrued expenses and other current liabilities	$	1,580		$	1,769
Non-current operating lease liabilities	Other long-term liabilities	6,231			7,112
Total operating lease liabilities		$	7,811		$	8,881

Weighted-average remaining lease term (in years)		4.7			5.0
Weighted-average discount rate		9.1		%	9.1		%

Schedule of Lease Costs

The components of lease cost were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease costs included in operating costs and expenses:
Operating leases	$	590	$	290	$	1,200	$	800

Schedule of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to leases was as follows (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2022	2021		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows related to operating leases	617	$	744	$	1,239	$	1,279

Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	79	$	108	$	158	$	148

Schedule of Future Minimum Payments Under Operating Leases

The future minimum payments under operating leases were as follows as of June 30, 2022 (in thousands):


2022 (remainder)	$	1,205
2023	2,018
2024	1,896
2025	1,685
2026	1,686
2027	1,125
Thereafter	—
Total minimum operating lease payments	$	9,615
Less: amounts representing interest	(1,804)
Present value of net minimum operating lease payments	7,811
Less: current portion	(1,580)
Long-term portion of operating lease obligations	$	6,231

Basis of Presentation - Narrative (Details)				1 Months Ended	6 Months Ended
Basis of Presentation - Narrative (Details)	Aug. 05, 2022 USD ($)	Oct. 29, 2021 USD ($)	Jul. 30, 2021 USD ($)	Jan. 31, 2021 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) segment	Dec. 31, 2021 USD ($)	Jan. 25, 2021 USD ($)
Class of Stock [Line Items]
Cash and cash equivalents					$ 21,090,000	$ 46,474,000
Restricted cash					$ 3,270,000	$ 3,338,000
Number of shares issued (in shares) \| shares				1,516,073
Purchase price (in dollars per share) \| $ / shares				$ 20.11
Proceeds from sale of stock				$ 29,400,000
Offering costs				$ 900,000
Number of reportable segments \| segment					1
Revolving Credit Facility \| Subsequent event
Class of Stock [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000,000
Line of Credit Minimum Draw	4,500,000
Revolving Credit Facility \| Subsequent event \| Greater Than 15 Million
Class of Stock [Line Items]
Outstanding Maximum for SOFR Condition	15,000,000
Revolving Credit Facility \| Subsequent event \| Greater Than 25 Million
Class of Stock [Line Items]
Outstanding Maximum for SOFR Condition	$ 25,000,000
Revolving Credit Facility \| Subsequent event \| SOFR
Class of Stock [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.50%
Revolving Credit Facility \| Subsequent event \| SOFR \| Greater Than 15 Million
Class of Stock [Line Items]
Debt Instrument, Basis Spread on Variable Rate	4.00%
Revolving Credit Facility \| Subsequent event \| SOFR \| Greater Than 25 Million
Class of Stock [Line Items]
Debt Instrument, Basis Spread on Variable Rate	5.50%
Revolving Credit Facility \| Subsequent event \| SOFR \| Minimum
Class of Stock [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility \| Subsequent event \| SOFR \| Minimum \| Greater Than 15 Million
Class of Stock [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility \| Subsequent event \| SOFR \| Minimum \| Greater Than 25 Million
Class of Stock [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Ctrack South Africa \| Disposed of by sale
Class of Stock [Line Items]
Initial cash proceeds			$ 36,600,000
Net cash proceeds			31,500,000
Net cash divested			5,000,000
Post-closing working capital adjustments			$ 2,600,000
Post-closing working capital adjustments received		$ 2,200,000
Receivable related to working capital adjustments		$ 400,000
Canaccord Genuity LLC
Class of Stock [Line Items]
Equity Distribution Agreement, maximum aggregate amount authorized for offer or sale							$ 40,000,000

Basis of Presentation - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 21,090	$ 46,474
Restricted cash	3,270	3,338
Cash, cash equivalents and restricted cash, end of period	$ 24,360	$ 49,812	$ 40,383	$ 40,015

Financial Statement Details - Inventories, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 38,978	$ 33,112
Raw materials and components	7,999	4,290
Total inventories	$ 46,977	$ 37,402

Financial Statement Details - Prepaid Expenses and Other (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Rebate receivables	$ 3,569	$ 6,398
Receivables from contract manufacturers	1,671	2,626
Software licenses	1,777	1,261
Insurance	368	1,269
Deposits	1,006	1,023
Financed assets	655	323
Other	1,378	724
Total prepaid expenses and other	$ 10,424	$ 13,624

Financial Statement Details - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Royalties	$ 1,762	$ 2,243
Payroll and related expenses	9,092	9,326
Warranty obligations	480	473
Professional fees	548	502
Bank overdrafts	231	370
Accrued interest	877	877
Contract liabilities	5,042	3,832
Operating lease liabilities	1,580	1,769
Accrued contract manufacturing liabilities	999	927
Liabilities related to financed assets	272	1,593
Value added tax payables	394	642
Other	3,021	3,699
Total accrued expenses and other current liabilities	$ 24,298	$ 26,253

Fair Value Measurement of Assets and Liabilities - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Liabilities
Interest make-whole payment	$ 20
Recurring
Assets
Total assets	0	$ 126
Liabilities
Total liabilities	24	926
Recurring \| Interest make-whole provision
Liabilities
Interest make-whole payment	24	926
Recurring \| Money market funds
Assets
Money market funds	0	126
Recurring \| Level 1
Assets
Total assets	0	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	0	126
Recurring \| Level 3
Assets
Total assets	0	0
Liabilities
Total liabilities	24	926
Recurring \| Level 3 \| Interest make-whole provision
Liabilities
Interest make-whole payment	24	926
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	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2022 $ / shares	Dec. 31, 2021 $ / 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		$ 1.89	$ 5.83
Credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input		0.2200	0.1593
Term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term	3 years 4 months 2 days	2 years 10 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		0.0298	0.0102

Fair Value Measurement of Assets and Liabilities - Activity in Level 3 Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Level 3 Liabilities
Beginning balance	$ 926
Additions	0
Conversions	0
Change in fair value	(902)
Ending balance	$ 24

Fair Value Measurement of Assets and Liabilities - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	May 12, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain on change in fair value of embedded derivative	$ 900
Interest make-whole payment	20
2025 Notes \| Convertible Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest make-whole payment	24	$ 926
Carrying amount of debt	$ 161,898	$ 161,898	$ 180,400

Debt - Narrative (Details)			3 Months Ended		6 Months Ended
Debt - Narrative (Details)	Aug. 05, 2022 USD ($)	May 12, 2020 USD ($)	Jun. 30, 2022 USD ($) $ / shares	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) trading_day $ / shares	Jun. 30, 2021 USD ($) shares	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Loss on debt conversion and extinguishment			$ 0	$ 0	$ 450,000	$ 432,000
Revolving Credit Facility \| Subsequent event
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000,000
Line of Credit Minimum Draw	4,500,000
Revolving Credit Facility \| Subsequent event \| Greater Than 15 Million
Debt Instrument [Line Items]
Outstanding Maximum for SOFR Condition	15,000,000
Revolving Credit Facility \| Subsequent event \| Greater Than 25 Million
Debt Instrument [Line Items]
Outstanding Maximum for SOFR Condition	$ 25,000,000
Revolving Credit Facility \| Subsequent event \| SOFR
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	3.50%
Revolving Credit Facility \| Subsequent event \| SOFR \| Greater Than 15 Million
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	4.00%
Revolving Credit Facility \| Subsequent event \| SOFR \| Greater Than 25 Million
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	5.50%
Revolving Credit Facility \| Subsequent event \| SOFR \| Minimum
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility \| Subsequent event \| SOFR \| Minimum \| Greater Than 15 Million
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Revolving Credit Facility \| Subsequent event \| SOFR \| Minimum \| Greater Than 25 Million
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
2025 Notes
Debt Instrument [Line Items]
Debt conversion amount						$ 5,000,000
Conversion (shares) \| shares						428,669
Shares in satisfaction of make-whole payment (shares) \| shares						32,221
Loss on debt conversion and extinguishment						$ 400,000
Convertible Debt \| 2025 Notes
Debt Instrument [Line Items]
Proceeds from completed registered offering		$ 100,000,000
Debt issued in exchange transaction		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%
Principal amount		$ 180,400,000	$ 161,898,000		$ 161,898,000		$ 161,898,000
Notes held by related parties			80,400,000		80,400,000		80,400,000
Accrued interest due to related parties			$ 400,000		$ 400,000		$ 400,000
Debt Instrument, Interest Rate During Period			4.18%	4.17%	4.20%	4.16%

Debt - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021	May 12, 2020
Debt Instrument [Line Items]
Interest make-whole payment	$ 20
2025 Notes \| Convertible Debt
Debt Instrument [Line Items]
Principal amount	161,898	$ 161,898	$ 180,400
Interest make-whole payment	24	926
Unamortized debt discount	(2,346)	(2,761)
Unamortized issuance costs	(1,868)	(2,197)
Net carrying amount	$ 157,708	$ 157,866

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Debt - Interest Expense (Details) - 2025 Notes - Convertible Debt - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Debt Instrument [Line Items]
Contractual interest expense	$ 1,315	$ 1,315	$ 2,631	$ 2,584
Amortization of debt discount	207	207	414	415
Amortization of debt issuance costs	165	165	330	330
Total interest expense	$ 1,687	$ 1,687	$ 3,375	$ 3,329

Share-based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,287	$ 2,307	$ 13,486	$ 11,405
Cost of net revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	259	234	1,674	1,812
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	428	534	4,498	3,762
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	554	559	2,597	2,547
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 1,046	$ 980	$ 4,717	$ 3,284

Share-based Compensation - Activity (Details)	6 Months Ended
Share-based Compensation - Activity (Details)	Jun. 30, 2022 shares
Stock Options
Outstanding — beginning balance	8,085,793
Granted	1,422,500
Exercised	(212,791)
Canceled	(657,005)
Outstanding — ending balance	8,638,497
Exercisable — ending balance	5,229,193
RSUs
Restricted Stock Units
Non-vested — beginning balance	1,247,723
Granted	2,203,100
Vested	(1,911,264)
Forfeited	(130,633)
Non-vested — ending balance	1,408,926

Share-based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Bonus expense	$ 8.8	$ 7.0
2018 Omnibus Incentive Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under the plan			8,897,084
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
General term (in years)			10 years
Unrecognized expense			$ 10.1
Recognition period			2 years 11 months 1 day
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized expense			$ 5.2
Recognition period			3 years 1 month 24 days
RSUs \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
RSUs \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years

Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net loss attributable to common stockholders	$ (13,053)	$ (13,929)	$ (38,937)	$ (31,968)
Weighted-average common shares outstanding, basic (in shares)	107,511,660	102,935,213	106,585,684	102,157,146,000
Weighted-average common shares outstanding, diluted (in shares)	107,511,660	102,935,213	106,585,684	102,157,146,000
Basic net income (loss) per share (in dollars per share)	$ (0.12)	$ (0.14)	$ (0.37)	$ (0.31)
Diluted net income (loss) per share (in dollars per share)	$ (0.12)	$ (0.14)	$ (0.37)	$ (0.31)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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Earnings per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Anti-dilutive shares (in shares)	27,332	25,852	27,150	25,852

Earnings per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	27,332	25,852	27,150	25,852
2025 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	14,341	14,341	14,341	14,341
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	2,500	2,500	2,500	2,500
Non-qualified stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	8,693	8,571	8,521	8,571
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	1,443	420	1,433	420
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares (in shares)	355	20	355	20

Private Placements and Public Offering (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Jan. 31, 2021	Jan. 25, 2021	Mar. 28, 2019
Class of Stock [Line Items]
Number of shares issued (in shares)	1,516,073
Purchase price (in dollars per share)	$ 20.11
Proceeds from sale of stock	$ 29.4
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		$ 40.0

Geographic Information and Concentrations of Risk - Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 61,856	$ 65,693	$ 123,240	$ 123,290
United States and Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	52,826	51,473	105,468	94,209
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	7,602	2,035	13,222	5,534
South Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	0	7,790	0	14,898
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 1,428	$ 4,395	$ 4,550	$ 8,649

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Geographic Information and Concentrations of Risk - Narrative (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net Revenues \| Customer concentration risk \| Customer one
Segment Reporting Information [Line Items]
Concentration percentage	31.40%		46.70%	34.30%	46.40%
Net Revenues \| Customer concentration risk \| Customer two
Segment Reporting Information [Line Items]
Concentration percentage	40.90%		21.30%	40.40%	18.70%
Accounts Receivable \| Credit concentration risk \| Customer one
Segment Reporting Information [Line Items]
Concentration percentage		61.70%		25.40%
Accounts Receivable \| Credit concentration risk \| Customer two
Segment Reporting Information [Line Items]
Concentration percentage		12.60%		30.90%

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Noncancellable purchase obligations	$ 145.1	$ 165.8

Leases - Components (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Right-of-use assets, net	$ 6,985	$ 7,839
Current operating lease liabilities	1,580	1,769
Non-current operating lease liabilities	6,231	7,112
Total operating lease liabilities	$ 7,811	$ 8,881
Weighted-average remaining lease term (in years)	4 years 8 months 12 days	5 years
Weighted-average discount rate	9.10%	9.10%

Leases - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Leases - Lease Costs (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating lease costs	$ 590	$ 290	$ 1,200	$ 800

Leases - Supplemental Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Leases [Abstract]
Operating cash flows related to operating leases	$ 617	$ 744	$ 1,239	$ 1,279
Right-of-use assets obtained in exchange for operating leases liabilities	$ 79	$ 108	$ 158	$ 148

Leases - Maturity of Operating Lease Liability (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Leases [Abstract]
2022 (remainder)	$ 1,205
2023	2,018
2024	1,896
2025	1,685
2026	1,686
2027	1,125
Thereafter	0
Total minimum operating lease payments	9,615
Less: amounts representing interest	(1,804)
Present value of net minimum operating lease payments	7,811	$ 8,881
Less: current portion	(1,580)	(1,769)
Long-term portion of operating lease obligations	$ 6,231	$ 7,112

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax (benefit) provision	$ (303)	$ 228	$ (625)	$ 449

- Definition

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

+ References + Details

Label	Element	Value
Capitalized Computer Software, Impairments	us-gaap_CapitalizedComputerSoftwareImpairments1	$ 0
Capitalized Computer Software, Impairments	us-gaap_CapitalizedComputerSoftwareImpairments1	$ 1,197,000