0001022652-23-000006 | 10-K | XBRL Viewer

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Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	Dec. 31, 2022	Feb. 22, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
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, $0.001 par value
Trading Symbol	INSG
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 152.9
Entity Central Index Key	0001022652
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		108,476,337
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for the 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A are incorporated by reference into Part III of this Form 10-K to the extent stated herein.
Entity Filer Category	Accelerated Filer

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Name	Marcum LLP
Auditor Location	Philadelphia, Pennsylvania
Auditor Firm ID	688

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 7,143	$ 46,474
Restricted cash	0	3,338
Accounts receivable, net of allowances of $541 and $408, respectively	25,259	26,781
Inventories	37,976	37,402
Prepaid expenses and other	7,978	13,624
Total current assets	78,356	127,619
Property, plant and equipment, net of accumulated depreciation of $26,049 and $26,692, respectively	5,390	8,102
Rental assets, net of accumulated depreciation of $5,484 and $5,392, respectively	4,816	4,575
Intangible assets, net of accumulated amortization of $31,629 and $48,404, respectively	41,383	46,995
Goodwill	21,922	20,336
Right-of-use assets	6,662	7,839
Other assets	488	377
Total assets	159,017	215,843
Current liabilities:
Accounts payable	29,018	48,577
Accrued expenses and other current liabilities	27,945	26,253
Total current liabilities	56,963	74,830
Long-term liabilities:
2025 Notes, net	158,427	157,866
Revolving credit facility, net	6,919	0
Deferred tax liabilities, net	323	852
Other long-term liabilities	6,503	7,149
Total liabilities	229,135	240,697
Commitments and Contingencies
Preferred stock, par value $0.001; 2,000,000 shares authorized:
Series E Preferred stock, par value $0.001; 39,500 shares designated, 25,000 shares issued and outstanding as of December 31, 2022 and 2021, liquidation preference of $1,000 per share (plus any accrued but unpaid dividends)	0	0
Common stock, par value $0.001; 150,000,000 shares authorized, 108,468,150 shares issued and outstanding as of December 31, 2022 and 105,380,533 shares issued and outstanding as of December 31, 2021	108	105
Additional paid-in capital	793,855	770,619
Accumulated other comprehensive loss	(6,329)	(8,531)
Accumulated deficit	(857,752)	(787,047)
Total stockholders’ deficit	(70,118)	(24,854)
Total liabilities and stockholders’ deficit	$ 159,017	$ 215,843

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Allowance on accounts receivable	$ 541	$ 408
Property, plant and equipment, accumulated depreciation	26,049	26,692
Rental assets - accumulated depreciation	5,484	5,392
Intangible assets - accumulated amortization	$ 31,629	$ 48,404
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	108,468,150	105,380,533
Common stock, shares outstanding	108,468,150	105,380,533
Series E preferred shares
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	39,500	39,500
Preferred stock, shares issued	25,000
Preferred stock, shares outstanding	25,000
Preferred stock, liquidation preference per share (in dollars per share)	$ 1,000	$ 1,000

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenues:
Total net revenues	$ 245,323	$ 262,399	$ 313,832
Cost of net revenues:
Total cost of net revenues	178,414	186,474	222,989
Gross profit	66,909	75,925	90,843
Operating costs and expenses:
Research and development	59,237	52,673	44,953
Sales and marketing	33,488	38,234	35,750
General and administrative	27,339	28,250	30,689
Amortization of purchased intangible assets	1,749	2,092	3,175
Impairment of capitalized software	3,014	1,197	1,410
Total operating costs and expenses	124,827	122,446	115,977
Operating loss	(57,918)	(46,521)	(25,134)
Other income (expense):
Gain on sale of Ctrack South Africa	0	5,262	0
Loss on debt conversion and extinguishment, net	(450)	(432)	(76,354)
Interest expense, net	(8,606)	(6,874)	(9,942)
Other (expense) income, net	(1,460)	845	992
Loss before income taxes	(68,434)	(47,720)	(110,438)
Income tax (benefit) provision	(465)	191	748
Net loss	(67,969)	(47,911)	(111,186)
Less: Net income attributable to noncontrolling interests	0	(214)	(29)
Net loss attributable to Inseego Corp.	(67,969)	(48,125)	(111,215)
Series E preferred stock dividends and deemed dividends from the preferred stock exchange	(2,736)	(4,243)	(2,904)
Net loss attributable to common stockholders	$ (70,705)	$ (52,368)	$ (114,119)
Net loss per common share:
Basic net income (loss) per share (in dollars per share)	$ (0.66)	$ (0.51)	$ (1.19)
Diluted net income (loss) per share (in dollars per share)	$ (0.66)	$ (0.51)	$ (1.19)
Weighted-average shares used in computation of net loss per common share:
Weighted-average common shares outstanding, basic (in shares)	107,269,331	103,246,308	96,111,547
Weighted-average common shares outstanding, diluted (in shares)	107,269,331	103,246,308	96,111,547
IoT & Mobile Solutions
Net revenues:
Total net revenues	$ 218,401	$ 217,984	$ 261,169
Cost of net revenues:
Total cost of net revenues	166,033	168,604	202,421
Enterprise SaaS Solutions
Net revenues:
Total net revenues	26,922	44,415	52,663
Cost of net revenues:
Total cost of net revenues	$ 12,381	$ 17,870	$ 20,568

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (67,969)	$ (47,911)	$ (111,186)
Foreign currency translation adjustment	2,202	(3,167)	(3,093)
Release of cumulative foreign currency translation adjustments as a result of the sale of Ctrack South Africa	0	1,608	0
Total comprehensive loss	(65,767)	(49,470)	(114,279)
Comprehensive income attributable to noncontrolling interests	0	(214)	(29)
Comprehensive loss attributable to Inseego Corp.	$ (65,767)	$ (49,684)	$ (114,308)

- 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.

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+ Details

Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands	Total	2025 Notes	Series E preferred shares	Series E preferred shares 2025 Notes	Series E Preferred Stock in Lieu of Interest	Preferred Stock	Preferred Stock Series E preferred shares	Preferred Stock Series E Preferred Stock in Lieu of Interest	Common Stock	Common Stock 2025 Notes	Additional Paid-in Capital	Additional Paid-in Capital 2025 Notes	Additional Paid-in Capital Series E preferred shares	Additional Paid-in Capital Series E preferred shares 2025 Notes	Additional Paid-in Capital Series E Preferred Stock in Lieu of Interest	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests
Beginning balance, shares (in shares) at Dec. 31, 2019						10			81,974
Beginning balance at Dec. 31, 2019	$ (37,358)					$ 0			$ 82		$ 584,862					$ (618,303)	$ (3,879)	$ (120)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(111,186)															(111,215)		29
Foreign currency translation adjustment	(3,093)																(3,093)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (in shares)									2,081
Exercise of stock options, vesting of restricted stock units (RSUs) and stock issued under employee stock purchase plan (ESPP)	5,422								$ 2		5,420
Taxes withheld on net settled vesting of RSUs	(354)										(354)
Issuance of shares (in shares)							25	2
Issuance of shares			$ 25,000		$ 2,330								$ 25,000		$ 2,330
Stock repurchased (in shares)						(2)
Repurchase of Series E preferred stock	(2,354)										(2,354)
Issuance of common shares in connection with conversion or exchange of notes (in shares)									13,739	1,177
Issuance of common shares in connection with conversion or exchange of notes	66,088			$ 14,354					$ 14	$ 1	66,074			$ 14,353
Exercise of warrants (in shares)									338
Exercise of warrants	1,861										1,861
Share-based compensation	10,419										10,419
Series E preferred stock dividends	0										2,904					(2,904)
Issuance of common shares under settlement (in shares)									90
Issuance of common shares under settlement agreement	(972)										(972)
Ending balance, shares (in shares) at Dec. 31, 2020						35			99,399
Ending balance at Dec. 31, 2020	(27,899)					$ 0			$ 99		711,487					(732,422)	(6,972)	(91)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(47,911)															(48,125)		214
Foreign currency translation adjustment	(3,167)																(3,167)
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (in shares)									2,512
Exercise of stock options, vesting of restricted stock units (RSUs) and stock issued under employee stock purchase plan (ESPP)	4,765								$ 2		4,763
Taxes withheld on net settled vesting of RSUs	(1,279)										(1,279)
Divestiture of Ctrack South Africa	(889)										8					(2,497)	1,608	(8)
Issuance of shares (in shares)									1,516
Issuance of shares	29,370								$ 2		29,368
Issuance of common shares in connection with conversion or exchange of notes (in shares)						10			1,525	429
Issuance of common shares in connection with conversion or exchange of notes	0	$ 5,382							$ 2		1,102	$ 5,382				(1,104)
Net noncontrolling interest acquired	125															240		(115)
Share-based compensation	16,649										16,649
Series E preferred stock dividends	0										3,139					(3,139)
Ending balance, shares (in shares) at Dec. 31, 2021						25			105,381
Ending balance at Dec. 31, 2021	(24,854)					$ 0			$ 105		770,619					(787,047)	(8,531)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(67,969)
Foreign currency translation adjustment	2,202																2,202
Adjustment relating to extinguishment of 2022 Notes	1,728
Exercise of stock options, vesting of restricted stock units and stock issued under employee stock purchase plan (in shares)									3,092
Exercise of stock options, vesting of restricted stock units (RSUs) and stock issued under employee stock purchase plan (ESPP)	$ 1,190								$ 3		1,187
Taxes withheld on net settled vesting of RSUs (in shares)	(5)
Taxes withheld on net settled vesting of RSUs	$ (290)										(290)
Share-based compensation	17,875										17,875
Series E preferred stock dividends	0										2,736					(2,736)
Ending balance, shares (in shares) at Dec. 31, 2022						25			108,468
Ending balance at Dec. 31, 2022	$ (70,118)					$ 0			$ 108		$ 793,855					$ (857,752)	$ (6,329)	$ 0

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

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Cash flows from operating activities:

Net loss

$ (67,969)

$ (47,911)

$ (111,186)

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

Depreciation and amortization

27,206

25,330

27,946

Fair value adjustment on derivative instrument

(926)

(3,826)

597

Provision for bad debts, net of recoveries

189

401

512

Impairment of capitalized software

3,014

1,197

1,410

Provision for excess and obsolete inventory

2,614

657

538

Share-based compensation expense

17,875

16,649

10,419

Amortization of debt discount and debt issuance costs

2,960

1,495

4,016

Loss on debt conversion and extinguishment, net

450

432

76,354

Gain on sale of Ctrack South Africa

(5,262)

Deferred income taxes

(570)

(53)

659

Right-of-use assets

1,268

1,144

1,432

Other

286

(765)

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

Accounts receivable

2,441

(1,148)

(10,797)

Inventories

(3,065)

(12,494)

(13,336)

Prepaid expenses and other assets

5,642

(1,988)

(3,070)

Accounts payable

(26,313)

(3,108)

27,087

Accrued expenses, income taxes, and other

3,450

4,448

8,785

Operating lease liabilities

(1,555)

(1,461)

(551)

Net cash (used in) provided by operating activities

(33,289)

(25,212)

20,050

Cash flows from investing activities:

Acquisition of noncontrolling interest

(116)

Purchases of property, plant and equipment

(1,481)

(4,928)

(5,736)

Proceeds from the sale of property, plant and equipment

1,338

392

Proceeds from sale of Ctrack South Africa, net of cash divested1

^[1]

33,689

Additions to capitalized software development costs and purchases of intangible assets

(11,838)

(23,905)

(29,369)

Net cash (used in) provided by investing activities

(13,319)

6,078

(34,713)

Cash flows from financing activities:

Gross proceeds received from issuance of Series E preferred stock

25,000

Gross proceeds from the issuance of 2025 Notes

100,000

Payment of issuance costs related to 2025 Notes

(3,645)

Cash paid to investors in private exchange transactions

(32,062)

Payoff of term loan and related extinguishment costs

(48,830)

Repurchase of Series E preferred stock

(2,354)

Proceeds from the exercise of warrants to purchase common stock

1,861

Net borrowing of bank and overdraft facilities

(569)

265

(199)

Principal payments on financed assets

(1,567)

Borrowings on asset-backed revolving credit facility

12,351

Repayment on asset-backed revolving credit facility

(4,500)

Payments of Financing Costs

1,126

Principal payments under finance lease obligations

(62)

(3,200)

(2,756)

Proceeds from a public offering, net of issuance costs

29,370

Proceeds from stock option exercises and ESPP, net of taxes paid on vested restricted stock units

900

3,486

5,066

Net cash provided by financing activities

5,427

29,921

42,081

Effect of exchange rates on cash

(1,488)

(990)

523

Net (decrease) increase in cash, cash equivalents and restricted cash

(42,669)

9,797

27,941

Cash, cash equivalents and restricted cash, beginning of period

49,812

40,015

12,074

Cash, cash equivalents and restricted cash, end of period

7,143

49,812

40,015

Supplemental disclosures of cash flow information:

Interest

5,535

5,387

3,215

Income taxes

168

523

142

Supplemental disclosures of non-cash activities:

Transfer of inventories to rental assets

442

5,142

4,036

Purchases of property, plant and equipment under finance leases

664

Operating right-of-use assets obtained in exchange for lease liabilities

705

658

7,931

421

Exchange of Series E Preferred Stock for common stock

11,982

Issuance of common stock in exchange for Series E Preferred Stock

13,086

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

1,104

Capital expenditures financed through accounts payable or accrued liabilities

2,276

748

5,710

Issuance of common stock under Settlement Agreement

972

Preferred stock issued in extinguishment of term loan accrued interest

2,330

Debt discount and issuance costs extinguished in notes conversion

1,728

2022 Notes conversion to equity

59,907

Novatel Wireless Notes conversion to equity

250

2025 Notes issued to extinguish 2022 Notes

80,375

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

$ 0

$ 5,382

$ 14,353

[1]	The amount for the year ended December 31, 2021 is net of cash divested of $5.0 million

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions		12 Months Ended
	Jul. 30, 2021	Dec. 31, 2022
Statement of Cash Flows [Abstract]
Cash deconsolidated as part of sale	$ 5.0	$ 5.0

Nature of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Nature of Business and Significant Accounting Policies

Inseego Corp. (the “Company”, “Inseego”, “We” or “Our”) is a leader in the design and development of fixed and mobile wireless solutions (advanced 4G and 5G NR), Industrial Internet of Things (“IIoT”) and cloud solutions for Fortune 500 enterprises, service providers, small and medium-sized businesses, governments, and consumers around the globe. Our product portfolio consists of fixed and mobile device-to-cloud solutions that provide compelling, intelligent, reliable and secure end-to-end IoT services with deep business intelligence. Inseego’s products and solutions, designed and developed in the U.S., power mission critical applications with a “zero unscheduled downtime” mandate, such as our 5G fixed wireless access (“FWA”) gateway solutions, 4G and 5G mobile broadband, IIoT applications such as software-defined wide area network failover management, asset tracking and fleet management services. Our solutions are powered by our key wireless innovations in mobile and FWA technologies, including a suite of products employing the 5G NR standards, and purpose-built SaaS cloud platforms.

Inseego is a Delaware corporation formed in 2016 and is the successor to Novatel Wireless, Inc., a Delaware corporation formed in 1996, resulting from an internal reorganization that was completed in November 2016. The Company’s principal executive office is located at 9710 Scranton Road, Suite 200, San Diego, CA 92121. The Company’s corporate offices are also located at 9710 Scranton Road, Suite 200, San Diego CA 92121 and its sales and engineering offices are located throughout the world. Inseego’s common stock trades on the NASDAQ Global Select Market under the trading symbol “INSG”.

Principles of Consolidation

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

Basis of presentation

The consolidated financial statements of Inseego Corp. present information in accordance with generally accepted accounting principles in the U.S. (“GAAP”), have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, present fairly the consolidated financial position, results of operations and cash flows of the Company and its wholly-owned subsidiaries for the periods presented.

Reclassifications

Certain amounts recorded in the prior period consolidated financial statements have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on previously reported operating results.

Segment Information

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 GAAP 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. Significant estimates include revenue recognition, capitalized software costs, allowance for credit losses, provision for excess and obsolete inventory, valuation of long-lived assets, valuation of goodwill and indefinite-lived intangible assets, valuation of derivatives, accruals relating to litigation, income taxes and share-based compensation expense.

Risks and Uncertainties

The COVID-19 pandemic continues to impact worldwide economic activity. A pandemic, including COVID-19 or other public health epidemic, poses the risk that we or our employees, manufacturers, suppliers and other partners may be prevented from conducting business activities for an indefinite period of time, including due to spread of the disease within these groups or due to shutdowns that may be requested or mandated by governmental authorities. The COVID-19 pandemic and mitigation measures have also had an adverse impact on global economic conditions which could have an adverse effect on our business and financial condition. The extent to which the COVID-19 pandemic, or any other outbreak of an epidemic disease, impacts

our results will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of the virus and the actions to contain its impact.

In addition, a global semiconductor supply shortage is causing wide-ranging impacts across the technology industry. While the shortage has not materially impacted the Company’s operations and financial results, it may negatively impact our customers and the supply of materials needed for our testing and production timeline. Our suppliers, contract manufacturers, and customers are all taking actions to reduce the impact of the semiconductor shortage; however, if the shortage persists, the impact on our operations and financial results could be material.

The inflationary pressures impacting the global supply chain could potentially increase our future cost of net revenues. The ongoing inflation challenges could adversely impact our future revenues, gross margins and financial results.

Sale of Ctrack South Africa

On July 30, 2021, the Company completed the sale of its Ctrack business operations in Africa, Pakistan and the Middle East (together “Ctrack South Africa”) and recognized a pre-tax gain of $5.3 million. Total cash proceeds received from the sale were $31.5 million, net of cash divested of $5.0 million. See Note 5. Business Divestiture, for more information.

Liquidity

As of December 31, 2022, the Company had available unrestricted cash and cash equivalents totaling $7.1 million, working capital of $21.4 million, and $6.1 million of availability under its secured asset-backed Credit Facility (as defined below in Note 6. Debt). See Note 6. Debt, for more information on this new Credit Facility.

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 on-hand, together with anticipated cash flows from operations, availability under its secured asset-backed Credit Facility, and anticipated savings from ongoing cost reduction efforts, will be sufficient to meet its cash flow needs for the next twelve months from the filing date of this report. To the extent that additional liquidity may be needed, the Company may issue up to $9.5 million in equivalent shares of the Company’s common stock available, pursuant to a shelf-registration statement filed with the SEC on May 7, 2020 and amended from time to time. 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 and capital expenditures, which could have an adverse impact on its ability to achieve its intended business objectives.

The Company’s liquidity could also be impaired by significant interruptions in its business operations, such as those described above under the heading Risks and Uncertainties, or, a material failure to satisfy its contractual commitments or a failure to generate revenues from new or existing products. In addition, 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.

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 credit risk. 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. Restricted cash held in escrow with a financial institution as of December 31, 2021, which was set up as collateral for potential future uninsured warranty claims related to the divestiture of Ctrack South Africa, was released during the third quarter of 2022, and we no longer have any restricted cash on our balance sheet as of December 31, 2022. See Note 5. Business Divestiture for additional information about the divestiture of Ctrack South Africa.


	December 31,
	2022		2021
Cash and cash equivalents	$	7,143	$	46,474
Restricted cash	—		3,338
Cash, cash equivalents and restricted cash, end of period	$	7,143	$	49,812

Revenue Recognition

The Company’s products and services primarily include intelligent mobile hotspots, wireless routers for IoT applications, USB modems, integrated telematics and mobile tracking hardware devices, which are supported by applications software and cloud services designed to enable customers to easily analyze data insights and configure and manage their hardware.

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

Net revenues by grouping for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
IoT & Mobile Solutions	$	218,401	$	217,984	$	261,169
Enterprise SaaS Solutions	26,922		44,415		52,663
Total	$	245,323	$	262,399	$	313,832

See geographic disaggregation information in Note 13. Geographic Information and Concentrations of Risk.

IoT & Mobile Solutions. The IoT & Mobile Solutions portfolio is comprised of end-to-end edge to cloud solutions including 4G LTE mobile broadband gateways, routers, modems, hotspots, HD quality VoLTE based wireless home phones, cloud management software and an advanced 5G portfolio of products (currently in various stages of development). The solutions are offered under the MiFiTM brand for consumer and business markets, and under the Skyus brand for industrial IoT markets. IoT & Mobile Solutions also includes Inseego SubscribeTM, a hosted SaaS platform that helps organizations manage the selection, deployment and spend of their customer’s wireless assets, helping them save money on personnel and telecom expenses.

Enterprise SaaS Solutions. The Enterprise SaaS Solutions portfolio consists of various subscription offerings within the Company’s Ctrack telematics platforms, which provide fleet vehicle, aviation ground vehicle and asset tracking and performance information, and other telematics applications.

Revenue Recognition Criteria

The Company follows Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (as amended, “ASC 606”), which provides guidance on recognizing revenue, including a five-step model to determine when revenue recognition is appropriate. The standard requires that an entity recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

The Company recognizes revenue upon transfer of control of products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company determines revenue recognition according to the following five steps: (i) identification of the contract, or contracts, with a customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations in the contract; and (v) recognition of revenue when, or as, performance obligations are satisfied.

Customer Contracts

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

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

Performance Obligations

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

The Company enters into contracts that may include various combinations of products and services which are generally capable of being distinct and accounted for as separate performance obligations.

Hardware. Hardware revenue from the sale of the Company’s IoT & Mobile Solutions devices is recognized when the Company transfers control to the customer, typically at the time when the product is delivered, shipped or installed, at which time, title passes to the customer and there are no further performance obligations with regards to the hardware device. The Company also considered the performance obligations in its customer master supply agreements and determined that, for the majority of its revenue, the Company generally satisfies performance obligations at a point in time upon delivery of the product to the customer.

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

Our telematics services include devices which collect and transmit information from vehicles or other assets. The Company’s customers have an option to purchase the monitoring device or lease it over the term of the contract. If the customer purchases the hardware device, the Company recognizes the revenue at a point in time as discussed above. Because the Company’s rental asset contracts qualify as operating leases under Accounting Standards Codification (“ASC”) 842, Leases, and the contracts also include services to operate and maintain the underlying asset, the Company has elected to combine the lease and non-lease components because the service is the predominant element in the eyes of the customer and the pattern of service delivery is the same for both elements. The Company recognizes revenue ratably over time throughout the term of the contract.

Maintenance and support services revenue. Periodically, the Company sells separately-priced warranty contracts that extend beyond the Company’s base warranty period. The separately priced service contracts range from 12 months to 36 months. The Company typically receives payment at the inception of the contract and recognizes revenue as earned on a straight-line basis over the term of the contract. The Company’s estimated allowances for product warranties can vary from actual results and the Company may have to record additional charges to cost of revenue.

Within cost of revenue, the Company records an estimate to reflect its standard warranty obligation to end users to provide for replacement of a defective product. The standard obligation period for most regions is 12 months. Factors that affect the warranty obligation include product failure rates, material usage, and service delivery costs incurred in correcting product failures.

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

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

and accounted for together with other performance obligations. The Company considered the performance obligations in its customer master supply agreements and determined that, for the majority of its revenue, the Company generally satisfies performance obligations at a point in time upon delivery of the product to the customer.

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

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

Contract Assets

The Company capitalizes sales commissions earned by its sales force as contract acquisition costs if such costs are significant and both incremental and recoverable. Any capitalized sales commissions are either deferred and amortized over a period of benefit exceeding one year or are expensed as incurred if the period of benefit is one year or less. There were no contract assets related to customer acquisition costs as of December 31, 2022 or 2021 since the Company’s customer contracts are predominantly hardware sales that are immediately recognized as revenue upon either shipment or delivery, and therefore the related contract acquisition costs are also immediately recognized. Sales commissions are included in sales and marketing expense as incurred. Sales commissions associated with SaaS offerings are not material.

Contract Liabilities

Timing of revenue recognition may differ from the timing of invoicing to customers. If customers are invoiced for subscription services in advance of the service period, then deferred revenue is recorded. Contract liabilities are also recorded when the Company collects payments in advance of performing the services. As of December 31, 2022 and 2021, the Company had $5.1 million and $3.8 million, respectively, of contract liabilities which represent our deferred revenue included within accrued expenses and other current liabilities, and $0.6 million and $0.1 million, respectively, of contract liabilities included within other long-term liabilities on the consolidated balance sheets.

Cost of Net Revenues

Cost of net revenues includes the costs associated with the manufacturing of our portfolio of hardware devices, as well as personnel costs for employees and contractors, depreciation, allocated overhead costs and other period adjustments related to costs of inventories sold or for sale or use in manufacturing.

Shipping and Handling Charges

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

Taxes Collected from Customers

Taxes collected on the value of transaction revenue are excluded from product and services revenues and cost of sales and are accrued in current liabilities until remitted to governmental authorities.

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are customer obligations generally due under normal trade terms for the industry. Credit terms are granted and periodically revised based on evaluations of the customer’s financial condition. The Company performs ongoing credit evaluations of its customers. The Company’s payment terms are generally net 30 days from invoice date and could go up to 90 days for large carrier customers.

The Company recognizes an allowance for credit losses at the time a receivable is recorded based on its estimate of expected credit losses and adjusts this estimate over the life of the receivable as needed. The Company evaluates the aggregation and risk characteristics of a receivable pool and develops loss rates that reflect historical collections, current forecasts of future economic conditions over the time horizon the Company is exposed to credit risk, and payment terms or conditions that may materially affect future forecasts.

As of December 31, 2022 and 2021, the Company reported $25.3 million and $26.8 million, respectively, of accounts receivable, net of allowances of $0.5 million and $0.4 million, respectively.

Inventories and Provision for Excess and Obsolete Inventory

Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Inbound shipping and handling costs are classified as a component of cost of net revenues in the consolidated statements of operations. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established and the inventory is not subsequently written up if market conditions improve. The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory.

Intangible Assets other than Goodwill

Intangible assets include purchased finite-lived and indefinite-lived intangible assets resulting from previous acquisitions, along with the costs of non-exclusive and perpetual worldwide software technology licenses and capitalized software development costs for both internal and external use. Finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. Indefinite-lived intangible assets, including in-process capitalized software development costs, are not amortized; however, they are tested for impairment annually, and between annual tests, if certain events occur indicating that the carrying amounts may be impaired.

Software Development Costs for External Use

Software development costs for external use are expensed as incurred until technological feasibility has been established, at which time those costs are capitalized as intangible assets until the software is available for general release to customers. Capitalized software development costs are amortized on a straight-line basis over the estimated economic life. The straight-line recognition method approximates the manner in which the expected benefit will be derived. At each balance sheet date, the unamortized capitalized software development cost for external use is compared to the net realizable value of that product by analyzing critical inputs such as expected future lifetime revenue. The amount by which unamortized software costs exceed the net realizable value, if any, is recognized as a charge to amortization expense in the period it is determined. Costs incurred to enhance existing software or after the software is available for general release to customers are expensed in the period they are incurred and included in research and development expense in the consolidated statements of operations.

Software Development Costs for Internal Use

Costs incurred in the preliminary stages of development are expensed as incurred and included in research and development expense in the consolidated statements of operations. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements of internal-use software when it is probable that the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Capitalized internal-use software costs are recorded as intangible assets and are amortized on a straight-line basis to general and administrative expense in the consolidated statement of operations over the estimated useful life of the software. The Company tests these assets for impairment whenever events or circumstances occur that could impact their recoverability. For the years ended December 31, 2022, 2021, and 2020, the

Company recorded impairment losses of $3.0 million, $1.2 million and $1.4 million, respectively, related to software development costs for internal use.

Valuation of Indefinite-Lived Intangible Assets

The Company performs an annual impairment review of indefinite-lived assets during the fourth quarter of each year, and more frequently if the Company believes indicators of impairment exist. To review for impairment, the Company first assesses qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of the asset is less than its carrying amount. The Company’s qualitative assessment is based on various macroeconomic, industry-specific, and company specific factors. These factors include: (i) industry or economic trends; (ii) current, historical, or projected financial performance, and; (iii) the Company’s market capitalization. After assessing the totality of events and circumstances, if the Company determines that it is not more likely than not that the fair value of the asset is less than its carrying amount, then no further assessment is performed. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, then the Company calculates the fair value of the asset and compares the fair value to the asset’s carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than it’s carrying value. For the years ended December 31, 2022, 2021 and 2020 the Company recorded zero impairment loss related to indefinite-lived intangible assets.

Goodwill

Goodwill represents the excess purchase price over estimated fair value of net assets of businesses acquired in a business combination. Goodwill is tested for impairment during the fourth quarter of each year, and more frequently if the Company believes indicators of impairment exist.

Valuation of Goodwill

Goodwill is tested for impairment at the reporting unit level by first assessing qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount. The Company’s qualitative assessment is based on various macroeconomic, industry-specific, and company specific factors. These factors include: (i) industry or economic trends; (ii) current, historical, or projected financial performance, and; (iii) the Company’s market capitalization. After assessing the totality of events and circumstances, if the Company determines that it is not more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount, no further assessment is performed. If the Company determines that it is more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount, the Company calculates the fair value of the reporting unit and compares the fair value to the reporting unit’s carrying amount. An impairment charge is recognized if the fair value of the business (reporting unit) is less than its carrying value. The Company has identified two reporting units for the purpose of goodwill impairment testing, Ctrack and Inseego North America (“INA”), and performed a qualitative test for goodwill impairment of the two reporting units during the fourth fiscal quarter. Based upon the results of qualitative testing, the Company believed that it was more-likely-than not that the fair value of these reporting units were greater than their respective carrying values. For the years ended December 31, 2022, 2021 and 2020, the Company recorded no impairment loss related to goodwill.

Long-Lived Assets

The Company periodically evaluates the carrying value of the unamortized balances of its long-lived assets, including property, plant and equipment and rental assets, to determine whether impairment of these assets has occurred or whether a revision to the related amortization periods should be made. If the carrying value of the long-lived asset group exceeds the estimated future undiscounted cash flows, an impairment loss is recorded based on the amount by which the asset group’s carrying amount exceeds its fair value. Fair value is determined based on an evaluation of the assets’ associated discounted future cash flows or appraised value. For the years ended December 31, 2022, 2021 and 2020, the Company had no impairment loss related to long-lived assets, except for the impairment of the capitalized software development costs for internal use, noted above.

Property, Plant and Equipment

Property, plant and equipment are initially stated at cost and depreciated using the straight-line method. Land is not depreciated. Buildings are depreciated over 50 years. Leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life, not to exceed 5 years. Product tooling is depreciated over 13 months. Computer equipment, purchased software, vehicles, production equipment, and furniture and fixtures, are depreciated over lives ranging from 2 to 7 years. Amortization of equipment under finance leases is included in depreciation expense.

Expenditures for repairs and maintenance are expensed as incurred. Expenditures for major renewals and betterment that extend the useful lives of existing property, plant and equipment are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, any resulting gain or loss is recognized in other income (expense), net, in the consolidated statements of operations.

Rental Assets

The cost of rental assets, which represents fleet management and vehicle tracking hardware installed in customers’ vehicles where such hardware is provided as part of a fixed term contract with the customer, is capitalized and disclosed separately in the consolidated balance sheets. The Company recognizes depreciation expense on rental assets within Enterprise SaaS cost of net revenues on a straight-line basis over the term of the contract, generally three to four years, commencing on installation of the rental asset.

Convertible Debt Instruments

The Company evaluates embedded features within convertible debt that will be settled in shares upon conversion under ASC 815, Derivatives and Hedging (“ASC 815”) to determine whether the embedded feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings.

If an embedded derivative is bifurcated from share-settled convertible debt, then the Company records the debt component at cost less a debt discount equal to the bifurcated derivative’s fair value. The Company amortizes the debt discount over the life of the debt instrument as additional non-cash interest expense utilizing the effective interest method. The convertible debt and the derivative liability are presented in total on the consolidated balance sheet. The derivative liability is remeasured at each reporting period with changes in fair value recorded in the consolidated statements of operations within other income (expense), net.

Derivative Financial Instruments

The Company evaluates stock warrants, debt instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for under the relevant sections of ASC 815. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative financial instrument and is marked-to-market at each balance sheet date and recorded as an asset or liability. In the event that the fair value is recorded as an asset or liability, the change in fair value is recorded in the consolidated statements of operations as other income or other expense. Upon conversion, exercise or expiration of a derivative financial instrument, the instrument is marked to fair value.

Research and Development

Research and development expense consists primarily of personnel costs for our engineers engaged in the design and development of our products, software and technologies, project material costs, services, depreciation and amortization. Such costs are charged to research and development expense as they are incurred, to the extent not capitalized as software development costs for external or internal use.

Lease Accounting

Lessee Arrangements

The Company determines if an arrangement contains a lease at inception. The Company primarily leases office space, automobiles and equipment. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. Certain real estate leases also include executory costs such as common area maintenance. The Company accounts for lease and non-lease components, including common area maintenance, as a single lease component as a practical expedient election. None of the Company’s operating lease agreements contain any material residual value guarantees or material restrictive covenants.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The lease term includes the base non-cancelable term, and any renewal options that are reasonably certain to be exercised at the commencement date. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease prepayments made and exclude lease incentives. Rental expense related to operating leases is recognized on a straight-line basis over the lease term. The

Company has elected the practical expedient to exclude any short-term lease, defined as a lease with an original term of 12 months or less, from the provisions of ASC 842, Leases.

Variable lease payments that do not depend on an index or rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred.

Lessor Arrangements

The Company serves as lessor for certain monitoring device leases and classifies such arrangements as operating leases. Accordingly, the Company carries rental devices at historical cost less accumulated depreciation and impairment, if any. The Company combines the lease and the non-lease components under these arrangements because the service is the predominant element from the customer’s perspective 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.

Foreign Currency Transactions

Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rate between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. Such increase or decrease is reported by the Company as a foreign currency transaction gain or loss within other income (expense), net, in the consolidated statements of operations. We recognize foreign currency transaction gains and losses primarily on intercompany transactions between certain subsidiaries in foreign countries . Based upon historical experience, the Company anticipates repayment of these transactions in the foreseeable future and recognizes realized and unrealized gains and losses on these transactions in the period in which they occur.

Foreign Currency Translation

Assets and liabilities of the Company’s international subsidiaries in which the local currency is the functional currency are translated into U.S. Dollars at period-end exchange rates. Income and expenses are translated into U.S. Dollars at the average exchange rates during the period. The resulting translation adjustments are included in the Company’s consolidated balance sheets as a component of accumulated other comprehensive loss.

Income Taxes

The Company recognizes federal, state and foreign current tax liabilities or assets based on its estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence. If the Company is unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the actual effective tax rates or time period within which the underlying temporary differences become taxable or deductible, the Company could be required to increase its valuation allowance against its deferred tax assets which could result in an increase in the Company’s effective tax rate and an adverse impact on operating results. The Company will continue to evaluate the necessity of the valuation allowance based on the remaining deferred tax assets.

The Company recognizes the impact of an uncertain income tax position on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Uncertain tax positions are recognized in the first subsequent financial reporting period in which that threshold is met or from changes in circumstances such as the expiration of applicable statutes of limitations. The Company’s policy is to include interest and penalties related to such positions as a component of income tax expense.

Litigation

The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. The Company records a loss when information indicates that a loss is both probable and reasonably estimable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated

liability related to the claim. As additional information becomes available, the Company revises its estimates, if necessary. The Company expenses litigation costs as incurred.

Share-Based Compensation

The Company has granted stock options and restricted stock units (“RSUs”) to employees, non-employee consultants and non-employee members of our Board of Directors. The Company also has an employee stock purchase plan (“ESPP”) for eligible employees. The Company measures the compensation cost associated with all share-based payments based on grant date fair values. The fair value of each stock option and stock purchase right is estimated on the date of grant using an option pricing model that meets certain requirements. The Company generally uses the Black-Scholes option pricing model to estimate the fair value of its stock options and stock purchase rights. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends.

For grants of stock options, the Company uses a blend of historical and implied volatility for traded options on its stock in order to estimate the expected volatility assumption required in the Black-Scholes model. The Company’s use of a blended volatility estimate in computing the expected volatility assumption for stock options is based on its belief that while the implied volatility is representative of expected future volatility, the historical volatility over the expected term of the award is also an indicator of expected future volatility. Due to the short duration of stock purchase rights under the Company’s ESPP, the Company utilizes a blended volatility estimate that consists of implied volatility and historical volatility in order to estimate the expected volatility assumption of the Black-Scholes model.

The expected term of stock options granted is estimated using historical experience. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the Company’s stock options and stock purchase rights. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. The Company estimates forfeitures at the time of grant and revises these estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates its forfeiture rate assumption for all types of share-based compensation awards based on historical forfeiture rates related to each category of award.

Compensation cost associated with grants of restricted stock units are measured at fair value, which has historically been the closing price of the Company’s common stock on the date of grant.

The Company recognizes share-based compensation expense over the requisite service period of each individual award, which generally equals the vesting period, using the straight-line method for awards that contain only service conditions. For awards that contain performance conditions, the Company recognizes the share-based compensation expense on a straight-line basis for each vesting tranche.

The Company evaluates the assumptions used to value stock awards on a quarterly basis. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what it has recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense.

Net Loss Per Share Attributable to Inseego Corp.

Net loss attributable to common stockholders is computed by dividing the net loss by the weighted-average number of shares that were outstanding during the period. Diluted net loss attributable to common stockholders (“EPS”) reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the diluted EPS computation in loss periods as their effect would be anti-dilutive.

Fair Value of Financial Instruments

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

The Company classifies inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant

to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) and is defined as follows:

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

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

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

The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

Comprehensive Loss

Comprehensive loss consists of net earnings and foreign currency translation adjustments.

Recently Adopted Accounting Pronouncements

In August 2020, the Financial Accounting Standards Board (“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 guidance is effective for annual and interim periods beginning after December 15, 2021. The Company adopted the ASU in the first quarter of fiscal 2022 and there was no impact to the 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 ASU addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. The ASU is effective for annual and interim periods beginning after December 15, 2021. The Company adopted the ASU in the first quarter of fiscal 2022 and there was no impact to the consolidated financial statements.

Recent Accounting Pronouncements Not Yet Adopted

In September 2022, the FASB issued ASU No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50). The ASU requires disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. The ASU does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The ASU is effective for annual and interim periods beginning after December 15, 2022, except for the rollforward requirement, which is effective for annual periods beginning after December 15, 2023. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations.

Financial Statement Details

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Financial Statement Details

Inventories

Inventories consist of the following (in thousands):


	December 31,
	2022		2021
Finished goods	$	31,153	$	33,112
Raw materials and components	6,823		4,290
Total inventories	$	37,976	$	37,402

Prepaid expenses and other

Prepaid expenses and other consists of the following (in thousands):


	December 31,
	2022		2021
Rebate receivables	$	2,038	$	6,398
Receivables from contract manufacturers	3,561		2,626
Software licenses	772		1,261
Insurance	12		1,269
Deposits	829		1,023
Financed assets	—		323
Other	766		724
Total prepaid expenses and other	$	7,978	$	13,624

Property, plant and equipment

Property, plant and equipment consists of the following (in thousands):


	December 31,
	2022		2021


Test equipment	$	19,724	$	19,095
Computer equipment and purchased software	4,603		7,618
Product tooling	5,007		4,350
Furniture and fixtures	1,214		1,214
Vehicles	119		1,654
Leasehold improvements	772		863
Total property, plant and equipment, gross	31,439		34,794
Less—accumulated depreciation and amortization	(26,049)		(26,692)
Total property, plant and equipment, net	$	5,390	$	8,102

At December 31, 2022, the Company had property, plant and equipment under finance leases with an aggregate carrying value of $3.1 million, net of accumulated amortization of $2.1 million. At December 31, 2021, the Company had property, plant and equipment under finance leases with an aggregate carrying value of $3.1 million, net of accumulated amortization of $1.3 million.

Rental assets

Rental assets consist of the following (in thousands):


	December 31,
	2022		2021
Rental assets	$	10,300	$	9,967
Less—accumulated depreciation	(5,484)		(5,392)
Total rental assets	$	4,816	$	4,575

Depreciation and amortization

Depreciation and amortization expense related to property, plant and equipment, including rental assets and property, plant and equipment under finance leases, was $7.1 million, $9.8 million and $10.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Accrued expenses and other current liabilities

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


	December 31,
	2022		2021
Royalties	$	992	$	2,243
Payroll and related expenses	8,873		9,326
Warranty obligations	480		473

Professional fees	738		502
Bank overdrafts	—		370
Accrued interest	1,112		877
Deferred revenue	5,060		3,832
Customer advances	2,828		—
Operating lease liabilities	1,759		1,769
Accrued contract manufacturing liabilities	1,416		927
Liabilities related to financed assets	—		1,593
Value added tax payables	449		642
Other	4,238		3,699
Total accrued expenses and other current liabilities	$	27,945	$	26,253

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

A summary of the activity in goodwill is presented below (in thousands):


Balance at December 31, 2020	$	32,511
Effect of Ctrack South Africa divestiture	(10,734)
Effect of change in foreign currency exchange rates	(1,441)
Balance at December 31, 2021	20,336
Effect of change in foreign currency exchange rates	1,586
Balance at December 31, 2022	$	21,922

The Company’s intangible assets are comprised of the following (in thousands):


	December 31, 2022
	Weighted-Average Life (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived intangible assets:
Developed technologies	6.0	$	4,534	$	(4,016)	$	518
Trademarks and trade names	10.0	9,513		(7,105)		2,408
Customer relationships	10.0	8,500		(6,597)		1,903
Capitalized software development costs	2.8	40,767		(11,686)		29,081
Other	3.0	2,884		(2,225)		659
Total finite-lived intangible assets		$	66,198	$	(31,629)	34,569
Indefinite-lived intangible assets:
In-process capitalized software development costs						6,814
Total intangible assets						$	41,383


	December 31, 2021
	Weighted-Average Life (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived intangible assets:
Developed technologies	6.0	$	8,305	$	(7,100)	$	1,205
Trademarks and trade names	10.0	9,088		(5,920)		3,168
Customer relationships	10.0	11,995		(9,242)		2,753
Capitalized software development costs	3.1	54,581		(24,604)		29,977
Other	3.0	2,885		(1,538)		1,347
Total finite-lived intangible assets		$	86,854	$	(48,404)	38,450
Indefinite-lived intangible assets:
In-process capitalized software development costs						8,545
Total intangible assets						$	46,995

Amortization expense for the years ended December 31, 2022, 2021 and 2020 was approximately $20.1 million, $15.5 million, and $18.0 million, respectively, including approximately $17.9 million, $12.2 million and $12.9 million related to capitalized software development costs for the years ended December 31, 2022, 2021 and 2020, respectively.

For the years ended December 31, 2022, 2021, and 2020, the Company recorded $3.0 million, $1.2 million, and $1.4 million, respectively, of impairment losses on intangible assets related to internal use capitalized software.

The following table represents details of the amortization of finite-lived intangible assets that is estimated to be expensed in the future (in thousands):


2023	$	15,181
2024	9,235
2025	3,976
2026	2,178
2027	2,104
Thereafter	1,895
Total	$	34,569

Fair Value Measurement of Assets and Liabilities

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2022 and 2021 (in thousands):


	December 31, 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	$	—	$	—	$	—	$	926	$	926	$	—
Total liabilities	$	—	$	—	$	—	$	926	$	926	$	—

During the years ended December 31, 2022 and 2021, there were no transfers between the levels within the fair value hierarchy.

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


	December 31, 2022		December 31, 2021
Volatility	50	%	50	%
Stock price	$0.84 per share		$5.83 per share
Credit spread	56.52	%	15.93	%
Term	2.34 years		3.34 years
Dividend yield	—	%	—	%
Risk-free rate	4.35	%	1.02	%

The estimated fair value of the interest make-whole derivative liability at December 31, 2022 and December 31, 2021 was determined using 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.

During the year ended December 31, 2022, there were no conversions of the 3.25% convertible senior notes due 2025 (the “2025 Notes”) into shares of the Company’s common stock. During the year ended December 31, 2021, certain holders of the 2025 Notes converted an aggregate of approximately $5.0 million in principal amount of the 2025 Notes into shares of the Company’s common stock in accordance with the terms of such notes and a portion of the embedded derivative was settled in shares of the Company’s common stock resulting in $0.1 million of the derivative liability being extinguished upon conversion.

There was a $0.9 million reduction in the fair value of the interest make-whole liability for the year ended December 31, 2022. For the years ended December 31, 2021 and 2020, the Company recorded a $3.8 million gain and a $0.6 million loss, respectively, as a result of the changes in fair value of the interest make-whole liability.

Other Financial Instruments

The carrying values of the Company’s other financial assets and liabilities approximate their fair values because of their short-term nature, with the exception of the 2025 Notes. The 2025 Notes are carried at amortized cost, adjusted for changes in fair value of the embedded derivative.

Business Divestiture

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Business Divestiture

Sale of Ctrack South Africa Operations

On July 30, 2021, the Company completed the sale of Ctrack South Africa to an affiliate of Convergence Partners (“Convergence”), an investment management firm in South Africa. Net cash proceeds received were approximately $33.7 million, net of cash divested of $5.0 million. The Company placed in escrow approximately $3.3 million, which was released to the Company on July 30, 2022. The funds in escrow allowed for Convergence to submit claims that were deemed to be uninsured warranties as defined in the purchase agreement. Such funds in escrow were recorded as restricted cash on the Company’s consolidated balance sheet prior to their release.

The transaction was considered a deconsolidation of a subsidiary. Accordingly, upon the sale of Ctrack South Africa, the Company recognized a pre-tax gain of $5.3 million for the year ended December 31, 2021. Such gain was recognized as gain on the sale of Ctrack South Africa in the consolidated statement of operations during the year ended December 31, 2021 The Company also recorded $2.2 million of transaction costs within other income (expense), net, in the consolidated results of operations for the year ended December 31, 2021.

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


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


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

Total consideration recognized was comprised of the following:


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

(a) $2.2 million was received on October 29, 2021, and the remaining $0.4 million was offset with the Company’s existing accounts payable balance to Convergence.

Net gain on sale is comprised of the following:


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

Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

Convertible Notes

2025 Notes

In May 2020, the Company completed its registered public offering of $100.0 million aggregate principal amount of the 2025 Notes.

Also in May 2020, the Company entered into privately negotiated exchange agreements (the “Exchange Agreements”) with certain related party holders of the 5.5% convertible senior notes due 2022 (the “2022 Notes”). Pursuant to the Exchange Agreements, these noteholders agreed to exchange the 2022 Notes that they held (representing an aggregate of $45.0 million principal amount of 2022 Notes with an estimated fair value of approximately $112.4 million as of the date of exchange) for an aggregate of $32.0 million in cash and $80.4 million principal amount of 2025 Notes in private placement transactions that closed concurrently with the registered offering (the “Private Exchange Transaction”). In connection therewith, the Company recorded a $67.2 million loss on debt conversion and extinguishment in the consolidated statements of operations in the year ended December 31, 2020. The 2025 Notes issued in the Private Exchange Transaction are part of the same series as the 2025 Notes issued in the registered offering.

During the year ended December 31, 2021, certain holders of the 2025 Notes converted, pursuant to the original terms of the 2025 Notes, 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, shown as net in the consolidated statement of operations.

The 2025 Notes were 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.

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 the Company’s 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 through the last 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 consolidated balance sheets, with subsequent changes to fair value to be recorded at each reporting period on the consolidated statement of operations in other income, net.

As of December 31, 2022 and 2021, $161.9 million of principal of the 2025 Notes was outstanding. As of December 31, 2022 and 2021, $80.4 million principal amount of 2025 Notes was held by related parties and $0.9 million of accrued interest due to related parties was included within accrued expenses and other current liabilities on the 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):


	December 31,
	2022		2021
Principal	$	161,898	$	161,898
Add: fair value of embedded derivative	—		926
Less: unamortized debt discount	(1,933)		(2,761)
Less: unamortized issuance costs	(1,538)		(2,197)
Net carrying amount	$	158,427	$	157,866

The effective interest rate of the 2025 Notes was 4.17% and 4.15%, respectively, for the twelve months ended December 31, 2022 and 2021. The following table sets forth total interest expense recognized related to the 2025 Notes (in thousands):


		Year Ended December 31,
	2022			2021			2020

Contractual interest expense		$	5,262		$	5,271		$	3,434
Amortization of debt discount		828			829			552
Amortization of debt issuance costs		659			660			439
Total interest expense		$	6,749		$	6,760		$	4,425

The contractual interest expense on the 2025 Notes recorded within interest expense, net on the consolidated statements of operations attributable to related parties was $2.6 million in each of the years ended December 31, 2022 and 2021 and $1.7 million in the year ended December 31, 2020.

The Company’s consolidated statements of operations for the year ended December 31, 2020 included related party interest expense of $0.8 million related to the 2022 Notes.

The Company had interest expense relating to the following debt obligations that were fully settled in 2020 as follows:


	Year Ended December 31, 2020
	2022 Notes		Novatel Wireless Notes

Contractual interest expense	$	768	$	1,667
Amortization of debt discount	1,952		859
Amortization of debt issuance costs	111		103
Total interest expense	$	2,831	$	2,629

The effective interest rates on the 2022 Notes and the Novatel Wireless Notes in the year ended December 31, 2020 were 12.89% and 15.19%, respectively.

Asset-Backed Revolving Credit Facility

On August 5, 2022, 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”), a subsidiary of the Company, and Inseego North America LLC, an Oregon limited liability company, an indirect subsidiary of the Company, as borrowers (together with Inseego Wireless, the “Borrowers”), and the Company, as guarantor (together with the Borrowers, the “Loan Parties”) as amended on February 25, 2023. The Credit Agreement establishes a secured asset-backed revolving credit facility which is comprised of a maximum $50 million revolving credit facility (“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 monthly by a borrowing base comprised of a percentage of eligible accounts receivable and eligible inventory of the Borrowers. Outstanding amounts exceeding the borrowing base must be repaid immediately. 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 (“Base Rate”) loans or Secured Overnight Financing Rate (“SOFR”) loans. SOFR loans will bear interest at a rate per annum equal to Term SOFR (defined in the Credit Agreement as the Term SOFR Reference Rate for a term of one month on the day) plus the Applicable Margin (as defined in the Credit Agreement), with a Term SOFR floor of 1%. Base Rate loans will bear interest at a rate per annum equal to the Applicable Margin plus the greatest of (a) the per annum rate of interest which is identified as the “Prime Rate” and normally published in the Money Rates section of The Wall Street Journal, (b) the sum of the Federal Funds Rate (as defined in the Credit Agreement) plus 0.5% and (c) 3.50% per annum.

The Applicable Margin varies depending on the average outstanding amount for a preceding month. If the average outstanding amount for a preceding month is less than $15 million, the Applicable Margin will be 2.50% for Base Rate loans and 3.50% for SOFR loans. If the average outstanding amount for a preceding month is between $15 million and $25 million, the Applicable Margin will be 3.00% for Base Rate loans and 4.00% for SOFR loans. If the average outstanding amount for a

preceding month is greater than $25 million, the Applicable Margin will be 4.5% for Base Rate loans and 5.50% for SOFR loans. The Company pays monthly fees of 0.4% per annum on the unused portion of the Credit Facility.

The Credit Agreement contains a financial covenant whereby the Loan Parties shall not permit the consolidated Liquidity (as defined in the Amended Credit Agreement) to be less than $10 million at any time (the “Liquidity Covenant”). The Credit Agreement also contains certain customary covenants, which include, but are not limited to, restrictions on indebtedness, liens, fundamental changes, restricted payments, asset sales, and investments, and places limits on various other payments.

The Company determined that the term “Eligible Accounts”, as defined in the Credit Agreement would have excluded certain balances used in the determination of eligible collateral upon which the Company’s borrowing base is calculated and that exclusion would have resulted in a violation of the Liquidity Covenant as of December 31, 2022. Accordingly, to clarify this matter and others, the Loan Parties agreed to amend the Credit Agreement, (the “Amended Credit Agreement”) to modify and clarify the definitions of “Eligible Accounts”, “Permitted Indebtedness” and also “Eligible Inventory”. The Amendment was entered into on February 25, 2023 with an effective date of December 15, 2022. The Company was in compliance with the financial covenants in the Amended Credit Agreement as of December 31, 2022.

Upon execution of the Credit Agreement on August 5, 2022, the Company paid $1.1 million of debt issuance costs, which are being amortized to interest expense throughout the term of the agreement. Amortization expense of $0.2 million related to debt issuance cost was recognized for the year ended December 31, 2022. As of December 31, 2022, the Company had outstanding borrowings of $7.9 million, gross borrowing base of $15.7 million and availability of $7.8 million. The Company’s policy is to classify outstanding borrowings as long-term so long as such borrowings are not expected to exceed the borrowing base over the 12 months subsequent to the balance sheet date, in which case, any excess borrowings would be classified as short-term.

- 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
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

The Company’s loss before income taxes for the years ended December 31, 2022, 2021 and 2020 is comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	(63,939)	$	(40,897)	$	(109,837)
Foreign	(4,495)		(6,823)		(601)
Loss before income taxes	$	(68,434)	$	(47,720)	$	(110,438)

The (benefit) provision for income taxes for the years ended December 31, 2022, 2021 and 2020 is comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	—	$	—	$	—
State	50		30		(4)
Foreign	55		214		93
Total current	105		244		89
Deferred:
Federal	15		12		12
State	—		—		—
Foreign	(585)		(65)		647
Total deferred	(570)		(53)		659
(Benefit) Provision for income taxes	$	(465)	$	191	$	748

The Company’s net deferred tax liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Accrued expenses	$	715	$	1,016
Provision for excess and obsolete inventory	759		466
Capitalized research and experimental expenditures	8,986		—
Convertible debt	9,782		9,804
Interest expense limitation	12,722		11,113
Net operating loss and tax credit carryforwards	112,297		110,463
Share-based compensation	3,375		2,562
Right-of-use-asset	2,294		1,765
Unrecognized tax benefits	1,942		1,567
Deferred tax assets	152,872		138,756
Valuation allowances	(145,431)		(132,132)
Deferred tax assets, net of valuation allowances	7,441		6,624
Deferred tax liabilities:
Operating lease liability	(2,518)		(1,830)
Acquired intangible assets	(599)		(666)

Depreciation and amortization	(4,288)		(4,376)
Unrealized foreign currency gains	(359)		(604)
Deferred tax liabilities	(7,764)		(7,476)
Deferred tax liabilities, net	$	(323)	$	(852)

The Company recognizes federal, state and foreign current tax liabilities or assets based on its estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carryforwards. The Company records a valuation allowance to reduce any deferred tax assets by the amount of any tax benefits that, based on available evidence and judgment, are not expected to be realized.

The Company assesses whether a valuation allowance should be recorded against its deferred tax assets based on the consideration of all available evidence, using a “more likely than not” realization standard. The four sources of taxable income that must be considered in determining whether deferred tax assets will be realized are: (1) future reversals of existing taxable

temporary differences (i.e., offset of gross deferred tax assets against gross deferred tax liabilities); (2) taxable income in prior carryback years, if carryback is permitted under the applicable tax law; (3) tax planning strategies; and (4) future taxable income exclusive of reversing temporary differences and carryforwards.

During the years ended December 31, 2022 and 2021, the Company recognized valuation allowances of $13.6 million, and $6.0 million, respectively, related to its deferred tax assets created in those respective years for entities with historical losses and full valuation allowances. In 2021, certain valuation allowances in the amount of $10.0 million were released related to entities included in the divestiture of Ctrack South Africa. The Company also recognized $3.0 million of additional valuation allowance in 2021 related to true-up of prior year deferred taxes, partially offset by foreign currency loss of $0.2 million. Based on the Company’s current position on valuation allowance, no net income tax benefits resulted in the Company’s consolidated statements of operations from the operating losses created during those years.

Beginning January 1, 2022, we are required to capitalize certain research and development expenditures in accordance with Section 174 of the Internal Revenue Code, as amended by the Tax Cuts and Jobs Act of 2017, instead of expensing such expenditures, as previously allowed. Amortization of such capitalized expenditures are allowed over a 5-year period if incurred domestically or a 15-year period if incurred outside the United States.

The (benefit) provision for income taxes reconciles to the amount computed by applying the statutory federal income tax rate of 21% in 2022, 2021 and 2020 to loss before income taxes as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
Federal tax benefit, at statutory rate	$	(14,371)	$	(10,021)	$	(23,192)
State benefit, net of federal benefit	(370)		(148)		(1,285)
Foreign tax rate difference	(259)		(358)		(140)


Valuation allowance against future tax benefits	13,564		6,029		26,410
Gain on sale of foreign subsidiaries	—		3,008		—
Sub-part F income	—		791		—
Loss on conversion of debt	—		—		2,015




Research and development credits	(2,222)		(1,415)		(2,355)
Share-based compensation	1,010		(879)		(1,134)




Non-deductible officers compensation	108		1,449		—
True-up of prior year provisions	2,123		1,681		—
Other	(48)		54		429
(Benefit) Provision for income taxes	$	(465)	$	191	$	748

At December 31, 2022, the Company had U.S. federal net operating loss carryforwards (“NOLs”) related to tax years 2020 and prior of approximately $417.2 million. Approximately $110.0 million of these NOLs have no expiration date. The remainder began to expire in 2023, unless previously utilized. Some of these NOLs may be limited by either past or future changes in control events. The Company has California NOLs at December 31, 2022 of approximately $62.0 million, which begin to expire in 2028, unless previously utilized, and foreign NOLs for its active foreign subsidiaries of approximately $22.7 million, which generally have no expiration date. At December 31, 2022, the Company had federal research and development tax credit carryforwards of approximately $15.9 million, which begin to expire in 2026, unless previously utilized, and California research and development tax credit carryforwards of approximately $17.4 million, which have no expiration date.

Pursuant to Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event a cumulative change in ownership of more than 50% occurs within a rolling three-year period. An analysis was performed for the period through December 31, 2022 and did not identify any events of cumulative change in ownership during the review period. The Company will continue monitoring any future changes in stock ownership.

It is the Company’s intention to reinvest undistributed earnings of its foreign subsidiaries and thereby indefinitely postpone their remittance. Accordingly, no provision has been made for foreign withholding taxes on U.S. income taxes which may become payable if undistributed earnings of the foreign subsidiary were paid as dividends to the Company.

On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which includes modifications to the limitation on business interest expense and net operating loss provisions, and provides a payment delay of employer payroll taxes during 2020 after the date of enactment. Payments of approximately $1.4 million of employer payroll taxes otherwise due in 2020, were delayed with 50% due and paid by December 31, 2021 and the remaining 50% in February 2023. The CARES Act did not have a material impact on the Company’s consolidated financial statements.

The Company follows the accounting guidance related to financial statement recognition, measurement and disclosure of uncertain tax positions. The Company recognizes the impact of an uncertain income tax position on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. No income tax benefit was recognized during the years ended December 31, 2022, 2021 and 2020. At December 31, 2022, 2021 and 2020, the Company did not have interest expense related to uncertain tax positions or a liability for unrecognized tax benefits. The Company does not expect changes to its uncertain tax position in the next twelve months.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):





Balance at December 31, 2020	$	39,631
Increases related to current and prior year tax positions	1,998

Balance at December 31, 2021	41,629
Increases related to current and prior year tax positions	1,286

Balance at December 31, 2022	$	42,915

There are no tax benefits that, if recognized, would affect the effective tax rate that are included in the balances of unrecognized tax benefits at December 31, 2022.

The Company and its subsidiaries file U.S., state and foreign income tax returns in jurisdictions with various statutes of limitations. The Company’s tax returns are subject to examination by federal, state and foreign taxing authorities. The Company’s federal and state tax returns are subject to examination for the years beginning in 2019 and 2018, respectively. Net operating loss carryforwards arising prior to these years are also open to examination, if and when utilized. The Company believes appropriate provisions for all outstanding issues have been made for all jurisdictions and all open years. However, because audit outcomes and the timing of audit settlements are subject to significant uncertainty, the Company’s current estimate of the total amounts of unrecognized tax benefits could increase or decrease for all open years.

On August 16, 2022, Congress passed, and the President signed into law, the Inflation Reduction Act of 2022 (the “IRA”), which includes certain business tax provisions. The IRA provides for excise taxes on corporate stock buy-backs and a minimum tax on corporate financial statement income in excess of $1.0 billion. These new provisions become effective January 1, 2023. The Company does not expect the IRA to have a material impact on the Company’s effective tax rate or income tax expense for the year ending December 31, 2023.

- 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
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+ Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Stockholders' Equity

Preferred Stock and Common Stock

Preferred Stock

The Company has a total of 2,000,000 shares of preferred stock authorized for issuance at a par value of $0.001 per share, 150,000 of which have been designated Series D Preferred Stock and 39,500 of which have been designated Series E Preferred Stock.

Each share of Series E Preferred Stock entitles the holder thereof to receive, when and if declared by the Company out of assets legally available therefor, cumulative cash dividends at an annual rate of 9.00% payable quarterly in arrears on January 1 April 1, July 1 and October 1 of each year, beginning on October 1, 2019. If dividends are not declared and paid in any quarter, or if such dividends are declared but holders of the Series E Preferred Stock elect not to receive them in cash, the quarterly dividend will be deemed to accrue and will be added to the Series E Base Amount (as defined below). The Series E Preferred Stock has no voting rights unless otherwise required by law. The Series E Preferred Stock is perpetual and has no maturity date. However, the Company may, at its option, redeem shares of the Series E Preferred Stock, in whole or in part, on or after July 1, 2022, at a price equal to 110% of the Series E Base Amount plus (without duplication) any accrued and unpaid dividends. The “Series E Base Amount” means $1,000 per share, plus any accrued but unpaid dividends, whether or not declared by the Company’s board of directors, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series E Preferred Stock. In the event of a liquidation, dissolution or winding

up of the Company, the holders of the Series E Preferred Stock will be entitled to receive, after satisfaction of liabilities to creditors and subject to the rights of holders of any senior securities, but before any distribution of assets is made to holders of common stock or any other junior securities, the Series E Base Amount plus (without duplication) any accrued and unpaid dividends.

Exchange Transactions

On March 6, 2020, the Company entered into a Securities Purchase Agreement with an accredited investor pursuant to which, among other things, the Company issued and sold to the investor, in a private placement transaction, an aggregate of 25,000 shares of the Company’s Series E Preferred Stock, for a purchase price of $1,000 per share of Series E Preferred Stock, resulting in gross proceeds to the Company of $25.0 million.

On September 3, 2021, the Company entered into separate privately-negotiated exchange agreements (the “September Exchange Agreements”) with Golden Harbor Ltd. and North Sound Trading, L.P. (the “Participating Stockholders”), holders of the Company’s outstanding Series E Preferred Stock. Pursuant to each respective September Exchange Agreement, each of the Participating Stockholders agreed to exchange Series E Preferred Stock that they held (representing an aggregate of 10,000 shares of Series E Preferred Stock) for an aggregate of 1,525,207 shares of common stock, of the Company (the “Series E Exchange Transactions”). The Company did not receive any cash proceeds from the Participating Stockholders in connection with the Series E Exchange Transactions.

The Company used the Guidance in ASC 470 Debt, regarding the modification of debt instruments and determined that the Series E Exchange Transactions were an extinguishment. If a modification or exchange represents an extinguishment for accounting purposes, it is accounted for as a redemption of the existing equity instrument and the issuance of a new instrument.

ASC 260-10-S99-2, “SEC Staff Announcement: The Effect on the Calculation of Earnings Per Share for a Period That Includes the Redemption or Induced Conversion of Preferred Stock,” provides guidance on the accounting for extinguishments (redemptions) of equity-classified preferred stock. Under that guidance, an SEC registrant compares (1) the fair value of the consideration transferred to the holders of the preferred stock and (2) the carrying amount of the preferred stock immediately before the modification or exchange (net of issuance costs). The difference is treated as a return to (or from) the holder of the preferred stock in a manner similar to dividends paid on preferred stock. Any excess of fair value of the consideration transferred to the holders of the preferred stock over the carrying amount of the preferred stock in the issuer’s balance sheet is treated as a dividend to those holders and charged against retained earnings.

The Company determined that the Series E Exchange Transactions resulted in an extinguishment of preferred stock and an issuance of common stock. The difference between the carrying amount of the preferred stock plus accrued dividends, and the fair value of the common stock exchanged for such preferred stock, totaled $1.1 million. This difference was treated as a deemed dividend, and was included within the Series E Preferred Stock dividends and deemed dividends from the preferred stock exchange, in the consolidated results of operations for the year ended December 31, 2021.

During the years ended December 31, 2022, 2021 and 2020, dividends declared, but not paid, related to the Series E Preferred Stock resulted in $9.1 million, $6.4 million and $3.3 million of dividends accrued, approximating $365.60, $256.16 and $130.60 per preferred share, as of December 31, 2022, 2021, and 2020, respectively.

Common Stock

On August 6, 2018, the Company completed a private placement of 12,062,000 shares of its common stock and warrants (the “2018 Warrants”) to purchase an additional 4,221,700 shares of its common stock, subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions, to certain accredited investors for gross proceeds of $19.7 million in cash. Each warrant had an initial exercise price of $2.52 per share, subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions.

On March 28, 2019, the 2018 Warrants were exercised at an exercise price of $2.52 per share, for aggregate cash proceeds to the Company of approximately $10.6 million. In connection with the exercise of the 2018 Warrants, on March 28, 2019, the Company issued additional warrants to purchase 2,500,000 shares of common stock (the “2019 Warrants”) to the accredited investors. Each 2019 Warrant had an initial exercise price of $7.00 per share, subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions, were exercisable at any time on or after September 28, 2019. The 2019 Warrants were not exercised and expired on June 30, 2022.

The Company assessed the terms of the warrants under ASC 815. Pursuant to this guidance, the Company determined that the warrants did not require liability accounting and classified the warrants as equity.

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.

Common Shares Reserved for Future Issuance

The Company had reserved shares of common stock for possible future issuance as of December 31, 2022 and 2021 as follows:


	December 31,
	2022	2021
Common stock warrants outstanding	—	2,500,000
Stock options outstanding	8,132,959	8,085,793
Restricted stock units outstanding	1,178,370	1,247,723
Shares available for issuance pursuant to Convertible Notes	14,090,448	14,340,786

Shares available for future grants of awards under the 2018 Omnibus Incentive Compensation Plan	8,848,748	3,311,023
Shares available under the 2000 Employee Stock Purchase Plan	895,141	170,811
Total shares of common stock reserved for issuance	33,145,666	29,656,136

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI https://asc.fasb.org/topic&trid=2208762

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-Name Accounting Standards Codification
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+ Details

Share-based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

During the year ended December 31, 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, shares of common stock may be issued upon the exercise of stock options, in the form of restricted stock, or in settlement of RSUs or other awards, including awards with alternative vesting schedules such as performance-based criteria. The 2018 Plan authorizes 32,753,085 shares, of which 8,848,748 remain available for future grants.

During the year ended December 31, 2022, the Board of Directors of the Company approved and the Company granted RSUs to eligible employees under the 2018 Omnibus Incentive Compensation Plan, previously named the Amended and Restated 2009 Omnibus Incentive Compensation Plan (the “2018 Plan”) that were immediately vested, as fiscal 2021 annual bonus payments. The total charges recorded for the year ended December 31, 2022 were $8.8 million. Total charges related to bonus payments recorded for the year ended December 31, 2021 were $7.0 million. Total charges related to bonus payments recorded for the year ended December 31, 2020 were $2.7 million. During the year ended December 31, 2021, the Board of Directors of the Company approved, and the Company granted additional RSUs under the 2018 Plan to certain employees who contributed to the completion of the divestiture of Ctrack South Africa. Such grants were immediately vested, and the total charges were $0.6 million.

For the years ended December 31, 2022, 2021 and 2020 the following table presents total share-based compensation expense in each functional line item on the consolidated statements of operations (in thousands):


	Year Ended December 31,
	2022		2021		2020
Cost of revenues	$	2,110	$	2,469	$	1,583
Research and development	5,369		4,813		2,823
Sales and marketing	3,528		3,704		2,346
General and administrative	6,868		5,663		3,667

Total	$	17,875	$	16,649	$	10,419

Stock Options

The Compensation Committee of the Board of Directors determines eligibility, vesting schedules and exercise prices for stock options granted. Stock options generally have a term of ten years and vest over a three- to four-year period.

The following table presents the weighted-average assumptions used in the Black-Scholes valuation model by the Company in calculating the fair value of each stock option granted:


	Year Ended December 31,
	2022		2021
Expected dividend yield	—	%	—	%
Risk-free interest rate	0.4	%	0.9	%
Volatility	16	%	73	%
Expected term (in years)	1.1		5.4

The weighted-average fair value of stock option awards granted during the years ended December 31, 2022 and 2021 was $2.91 and $5.41, respectively.

The following table summarizes the Company’s stock option activity for the years ended December 31, 2022, 2021 and 2020 (dollars in thousands, except per share data):


	Stock Options Outstanding	Weighted-Average Exercise Price Per Option		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding — December 31, 2019	9,044,304	$	2.91
Granted	1,526,000	9.41
Exercised	(1,357,620)	3.06
Canceled	(732,705)	3.60
Outstanding — December 31, 2020	8,479,979	$	3.99
Granted	1,929,500	8.86
Exercised	(1,315,552)	2.62
Canceled	(1,008,134)	8.60
Outstanding — December 31, 2021	8,085,793	$	4.81
Granted	1,505,000	4.63
Exercised	(370,688)	1.37
Canceled	(1,087,146)	7.97
Outstanding — December 31, 2022	8,132,959	$	4.65	5.25	$	—
Vested and Expected to Vest — December 31, 2022	7,573,152	$	4.49	5.01	$	1
Exercisable — December 31, 2022	5,550,858	$	3.87	3.69	$	1

The total intrinsic value of stock options exercised to purchase common stock during the years ended December 31, 2022, 2021 and 2020 was approximately $3.7 million, $4.3 million and $11.7 million, respectively.

As of December 31, 2022, total unrecognized share-based compensation expense related to non-vested stock options was $7.1 million, which is expected to be recognized over a weighted-average period of approximately 2.69 years. The Company recognized approximately $5.9 million, $6.3 million and $5.8 million of share-based compensation expense related to the vesting of stock option awards during the years ended December 31, 2022, 2021 and 2020, respectively.

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.

A summary of restricted stock unit activity under all plans for the years ended December 31, 2022, 2021 and 2020 is presented below:


	Number of Shares	Weighted-Average Grant-Date Fair Value
Non-vested — December 31, 2019	400,315	$	3.95
Granted	570,368	10.52
Vested	(548,160)	7.28
Forfeited	(5,418)	4.06
Non-vested — December 31, 2020	417,105	8.68
Granted	1,931,263	8.53
Vested	(1,019,686)	10.20
Forfeited	(80,959)	10.75
Non-vested — December 31, 2021	1,247,723	7.65
Granted	2,544,053	4.51
Vested	(2,278,818)	4.53
Forfeited	(334,588)	3.45
Non-vested — December 31, 2022	1,178,370	7.33

During the years ended December 31, 2022, 2021 and 2020, the total fair value of shares vested was $9.5 million, $10.4 million and $5.1 million, respectively.

As of December 31, 2022, there was $4.0 million of unrecognized share-based compensation expense related to non-vested RSUs, which is expected to be recognized over a weighted-average period of 2.40 years. The Company recognized approximately $11.7 million, $9.6 million and $4.1 million of share-based compensation expense related to the vesting of RSUs during the years ended December 31, 2022, 2021 and 2020 respectively.

2000 Employee Stock Purchase Plan

The ESPP permits eligible employees of the Company to purchase newly issued shares of common stock, at a price equal to 85% of the lower of the fair market value on (i) the first day of the offering period or (ii) the last day of each six-month purchase period, through payroll deductions of up to 10% of their annual cash compensation. Under the ESPP, a maximum of 5,324,000 shares of common stock may be purchased by eligible employees.

During the years ended December 31, 2022 and 2021, the Company issued 525,670 shares and 220,390 shares, respectively, under the ESPP. The Company recognized approximately $0.3 million, $0.7 million and $0.6 million of share-based compensation expense related to the ESPP during the years ended December 31, 2022, 2021 and 2020, respectively.

Earnings per Share

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Earnings per Share

Earnings per ShareBasic 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 convertible notes calculated using the if-converted and treasury stock method and warrants, stock options and RSUs calculated using the treasury stock method) are excluded from the diluted EPS computation in loss periods and when the applicable exercise price is greater than the market price on the period end date as their effect would be anti-dilutive.

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


	Year Ended December 31,
	2022		2021		2020
Net loss attributable to common stockholders	$	(70,705)	$	(52,368)	$	(114,119)
Weighted-average common shares outstanding	107,269,331		103,246,308		96,111,547
Basic and diluted net loss per share	$	(0.66)	$	(0.51)	$	(1.19)

The following is a summary of outstanding potential shares of common stock that have been excluded from the computation of diluted net loss per share attributable to common stockholders because their inclusion would have been anti-dilutive:


	Year Ended December 31,
(in thousands)	2022	2021	2020
Convertible notes	14,090	14,341	14,784
Warrants	—	2,500	2,500
Non-qualified stock options	8,133	8,086	8,480
Restricted stock units	1,178	1,248	417
Employee Stock Purchase Plan	426	144	25
Total	23,827	26,319	26,206

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 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 purchases of goods or services in the upcoming three to four quarters following the balance sheet date. Such commitments are noncancellable (“noncancellable purchase obligations). As of December 31, 2022, future payments under these noncancellable purchase obligations were approximately $77.6 million. Legal The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. The Company is regularly required to directly or indirectly participate in other U.S. patent infringement actions pursuant to its contractual indemnification obligations to certain customers. Based on an evaluation of these matters the Company currently believes that liabilities arising from, or sums paid in settlement of these existing matters, if any, would not have a material adverse effect on its consolidated results of operations or financial condition. 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 upon third-party patents or other intellectual property rights. The Company’s maximum exposure under these indemnification provisions cannot be estimated but the Company does not believe that there are any matters individually or collectively that would have a material adverse effect on its consolidated results of operations or financial condition.

Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

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


	Balance Sheet Classification	December 31, 2022			December 31, 2021
Operating right-of-use assets	Right-of-use assets	$	6,662		$	7,839

Current operating lease liabilities	Accrued expenses and other current liabilities	$	1,759		$	1,769
Non-current operating lease liabilities	Other long-term liabilities	5,903			7,112
Total operating lease liabilities		$	7,662		$	8,881

Weighted-average remaining lease term (in years)		4.1			5.0
Weighted-average discount rate		9.0		%	9.1		%

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


	Year Ended December 31, 2022
	2022		2021		2020

Operating lease costs included in operating costs and expenses	$	2,453	$	2,800	$	2,200

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


	Year Ended December 31, 2022
	2022		2021		2020

Operating cash flows related to operating leases	$	2,464	$	2,600	$	1,900
Operating right-of-use assets obtained in exchange for lease liabilities	$	705	$	658	$	7,931

The future minimum payments under operating leases were as follows at December 31, 2022 (in thousands):



2023	$	2,459
2024	2,203
2025	1,763
2026	1,698
2027	1,125

Total minimum operating lease payments	9,248
Less: amounts representing interest	(1,586)
Present value of net minimum operating lease payments	7,662
Less: current portion	(1,759)
Long-term portion of operating lease obligations	$	5,903

Leases

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


	Balance Sheet Classification	December 31, 2022			December 31, 2021
Operating right-of-use assets	Right-of-use assets	$	6,662		$	7,839

Current operating lease liabilities	Accrued expenses and other current liabilities	$	1,759		$	1,769
Non-current operating lease liabilities	Other long-term liabilities	5,903			7,112
Total operating lease liabilities		$	7,662		$	8,881

Weighted-average remaining lease term (in years)		4.1			5.0
Weighted-average discount rate		9.0		%	9.1		%

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


	Year Ended December 31, 2022
	2022		2021		2020

Operating lease costs included in operating costs and expenses	$	2,453	$	2,800	$	2,200

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


	Year Ended December 31, 2022
	2022		2021		2020

Operating cash flows related to operating leases	$	2,464	$	2,600	$	1,900
Operating right-of-use assets obtained in exchange for lease liabilities	$	705	$	658	$	7,931

The future minimum payments under operating leases were as follows at December 31, 2022 (in thousands):



2023	$	2,459
2024	2,203
2025	1,763
2026	1,698
2027	1,125

Total minimum operating lease payments	9,248
Less: amounts representing interest	(1,586)
Present value of net minimum operating lease payments	7,662
Less: current portion	(1,759)
Long-term portion of operating lease obligations	$	5,903

Geographic Information and Concentrations of Risk

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Geographic Information and Concentrations of Risk

Geographic Information

The following table details the geographic concentration of the Company’s assets (in thousands):


	December 31,
	2022		2021
United States and Canada	$	122,074	$	176,094
Europe	32,903		35,630



Other	4,040		4,119
	$	159,017	$	215,843

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


	Year Ended December 31,
	2022		2021		2020
United States and Canada	$	201,799	$	215,520	$	260,009
Europe	27,562		23,123		21,720
Australia	11,250		4,202		3,333
South Africa	—		17,346		28,208
Other	4,712		2,208		562
Total	$	245,323	$	262,399	$	313,832

Concentrations of Risk

For the year ended December 31, 2022, two customers accounted for 35.1% and 32.2% of net revenues, respectively. For the year ended December 31, 2021, the same two customers accounted for 43.9% and 26.4% of net revenues, respectively. For the year ended December 31, 2020, only one of these two customers accounted for 54.5% of net revenues.

At December 31, 2022, two customers accounted for 37.4% and 21.9% of total accounts receivable, net, respectively. At December 31, 2021, two customers accounted for 61.7% and 12.6% of total accounts receivable, net, respectively.

- Definition

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

+ References

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+ Details

Retirement Savings Plan	12 Months Ended
Retirement Savings Plan	Dec. 31, 2022
Retirement Benefits [Abstract]
Retirement Savings Plan	Retirement Savings PlanThe Company has a defined contribution 401(k) retirement savings plan (the “Plan”). Substantially all of the Company’s U.S. employees are eligible to participate in the Plan after meeting certain minimum age and service requirements. The Company matches 50% of the first 6% of an employee’s designated deferral of their eligible compensation. Employees may make discretionary contributions to the Plan subject to Internal Revenue Service limitations. Employer matching contributions under the Plan were $0.9 million, $0.9 million and $0.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. Employer matching contributions vest immediately.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Nature of Business and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Principles of Consolidation	The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Basis of presentation The consolidated financial statements of Inseego Corp. present information in accordance with generally accepted accounting principles in the U.S. (“GAAP”), have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, present fairly the consolidated financial position, results of operations and cash flows of the Company and its wholly-owned subsidiaries for the periods presented. Reclassifications Certain amounts recorded in the prior period consolidated financial statements have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on previously reported operating results.
Segment Information	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 GAAP 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. Significant estimates include revenue recognition, capitalized software costs, allowance for credit losses, provision for excess and obsolete inventory, valuation of long-lived assets, valuation of goodwill and indefinite-lived intangible assets, 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 CashCash 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 credit risk. 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.
Revenue Recognition	Revenue RecognitionThe Company’s products and services primarily include intelligent mobile hotspots, wireless routers for IoT applications, USB modems, integrated telematics and mobile tracking hardware devices, which are supported by applications software and cloud services designed to enable customers to easily analyze data insights and configure and manage their hardware.
Allowance for Credit Losses	Allowance for Credit Losses Accounts receivable are customer obligations generally due under normal trade terms for the industry. Credit terms are granted and periodically revised based on evaluations of the customer’s financial condition. The Company performs ongoing credit evaluations of its customers. The Company’s payment terms are generally net 30 days from invoice date and could go up to 90 days for large carrier customers. The Company recognizes an allowance for credit losses at the time a receivable is recorded based on its estimate of expected credit losses and adjusts this estimate over the life of the receivable as needed. The Company evaluates the aggregation and risk characteristics of a receivable pool and develops loss rates that reflect historical collections, current forecasts of future economic conditions over the time horizon the Company is exposed to credit risk, and payment terms or conditions that may materially affect future forecasts. As of December 31, 2022 and 2021, the Company reported $25.3 million and $26.8 million, respectively, of accounts receivable, net of allowances of $0.5 million and $0.4 million, respectively.
Inventories and Provision for Excess and Obsolete Inventory	Inventories and Provision for Excess and Obsolete InventoryInventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Inbound shipping and handling costs are classified as a component of cost of net revenues in the consolidated statements of operations. The Company reviews the components of its inventory and its inventory purchase commitments on a regular basis for excess and obsolete inventory based on estimated future usage and sales. Write-downs in inventory value or losses on inventory purchase commitments depend on various items, including factors related to customer demand, economic and competitive conditions, technological advances or new product introductions by the Company or its customers that vary from its current expectations. Whenever inventory is written down, a new cost basis is established and the inventory is not subsequently written up if market conditions improve. The Company believes that, when made, the estimates used in calculating the inventory provision are reasonable and properly reflect the risk of excess and obsolete inventory.
Intangible Assets	Intangible Assets other than Goodwill Intangible assets include purchased finite-lived and indefinite-lived intangible assets resulting from previous acquisitions, along with the costs of non-exclusive and perpetual worldwide software technology licenses and capitalized software development costs for both internal and external use. Finite-lived intangible assets are amortized on a straight-line basis over the estimated useful lives of the assets. Indefinite-lived intangible assets, including in-process capitalized software development costs, are not amortized; however, they are tested for impairment annually, and between annual tests, if certain events occur indicating that the carrying amounts may be impaired. Software Development Costs for External Use Software development costs for external use are expensed as incurred until technological feasibility has been established, at which time those costs are capitalized as intangible assets until the software is available for general release to customers. Capitalized software development costs are amortized on a straight-line basis over the estimated economic life. The straight-line recognition method approximates the manner in which the expected benefit will be derived. At each balance sheet date, the unamortized capitalized software development cost for external use is compared to the net realizable value of that product by analyzing critical inputs such as expected future lifetime revenue. The amount by which unamortized software costs exceed the net realizable value, if any, is recognized as a charge to amortization expense in the period it is determined. Costs incurred to enhance existing software or after the software is available for general release to customers are expensed in the period they are incurred and included in research and development expense in the consolidated statements of operations. Software Development Costs for Internal Use Costs incurred in the preliminary stages of development are expensed as incurred and included in research and development expense in the consolidated statements of operations. Once an application has reached the development stage, internal and external costs, if direct and incremental, are capitalized. Capitalization ceases upon completion of all substantial testing performed to ensure the product is ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements of internal-use software when it is probable that the expenditures will result in additional functionality. Maintenance and training costs are expensed as incurred. Capitalized internal-use software costs are recorded as intangible assets and are amortized on a straight-line basis to general and administrative expense in the consolidated statement of operations over the estimated useful life of the software. The Company tests these assets for impairment whenever events or circumstances occur that could impact their recoverability. For the years ended December 31, 2022, 2021, and 2020, the Company recorded impairment losses of $3.0 million, $1.2 million and $1.4 million, respectively, related to software development costs for internal use. Valuation of Indefinite-Lived Intangible Assets The Company performs an annual impairment review of indefinite-lived assets during the fourth quarter of each year, and more frequently if the Company believes indicators of impairment exist. To review for impairment, the Company first assesses qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of the asset is less than its carrying amount. The Company’s qualitative assessment is based on various macroeconomic, industry-specific, and company specific factors. These factors include: (i) industry or economic trends; (ii) current, historical, or projected financial performance, and; (iii) the Company’s market capitalization. After assessing the totality of events and circumstances, if the Company determines that it is not more likely than not that the fair value of the asset is less than its carrying amount, then no further assessment is performed. If the Company determines that it is more likely than not that the fair value of the asset is less than its carrying amount, then the Company calculates the fair value of the asset and compares the fair value to the asset’s carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than it’s carrying value. For the years ended December 31, 2022, 2021 and 2020 the Company recorded zero impairment loss related to indefinite-lived intangible assets. Goodwill Goodwill represents the excess purchase price over estimated fair value of net assets of businesses acquired in a business combination. Goodwill is tested for impairment during the fourth quarter of each year, and more frequently if the Company believes indicators of impairment exist. Valuation of Goodwill Goodwill is tested for impairment at the reporting unit level by first assessing qualitative factors to determine whether events or circumstances lead to a determination that it is more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount. The Company’s qualitative assessment is based on various macroeconomic, industry-specific, and company specific factors. These factors include: (i) industry or economic trends; (ii) current, historical, or projected financial performance, and; (iii) the Company’s market capitalization. After assessing the totality of events and circumstances, if the Company determines that it is not more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount, no further assessment is performed. If the Company determines that it is more likely than not that the fair value of the Company’s reporting unit is less than its carrying amount, the Company calculates the fair value of the reporting unit and compares the fair value to the reporting unit’s carrying amount. An impairment charge is recognized if the fair value of the business (reporting unit) is less than its carrying value. The Company has identified two reporting units for the purpose of goodwill impairment testing, Ctrack and Inseego North America (“INA”), and performed a qualitative test for goodwill impairment of the two reporting units during the fourth fiscal quarter. Based upon the results of qualitative testing, the Company believed that it was more-likely-than not that the fair value of these reporting units were greater than their respective carrying values. For the years ended December 31, 2022, 2021 and 2020, the Company recorded no impairment loss related to goodwill.
Long-Lived Assets	Long-Lived Assets The Company periodically evaluates the carrying value of the unamortized balances of its long-lived assets, including property, plant and equipment and rental assets, to determine whether impairment of these assets has occurred or whether a revision to the related amortization periods should be made. If the carrying value of the long-lived asset group exceeds the estimated future undiscounted cash flows, an impairment loss is recorded based on the amount by which the asset group’s carrying amount exceeds its fair value. Fair value is determined based on an evaluation of the assets’ associated discounted future cash flows or appraised value. For the years ended December 31, 2022, 2021 and 2020, the Company had no impairment loss related to long-lived assets, except for the impairment of the capitalized software development costs for internal use, noted above. Property, Plant and Equipment Property, plant and equipment are initially stated at cost and depreciated using the straight-line method. Land is not depreciated. Buildings are depreciated over 50 years. Leasehold improvements are depreciated over the shorter of the related remaining lease period or useful life, not to exceed 5 years. Product tooling is depreciated over 13 months. Computer equipment, purchased software, vehicles, production equipment, and furniture and fixtures, are depreciated over lives ranging from 2 to 7 years. Amortization of equipment under finance leases is included in depreciation expense. Expenditures for repairs and maintenance are expensed as incurred. Expenditures for major renewals and betterment that extend the useful lives of existing property, plant and equipment are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, any resulting gain or loss is recognized in other income (expense), net, in the consolidated statements of operations. Rental Assets The cost of rental assets, which represents fleet management and vehicle tracking hardware installed in customers’ vehicles where such hardware is provided as part of a fixed term contract with the customer, is capitalized and disclosed separately in the consolidated balance sheets. The Company recognizes depreciation expense on rental assets within Enterprise SaaS cost of net revenues on a straight-line basis over the term of the contract, generally three to four years, commencing on installation of the rental asset.
Convertible Debt Instruments	Convertible Debt Instruments The Company evaluates embedded features within convertible debt that will be settled in shares upon conversion under ASC 815, Derivatives and Hedging (“ASC 815”) to determine whether the embedded feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in earnings. If an embedded derivative is bifurcated from share-settled convertible debt, then the Company records the debt component at cost less a debt discount equal to the bifurcated derivative’s fair value. The Company amortizes the debt discount over the life of the debt instrument as additional non-cash interest expense utilizing the effective interest method. The convertible debt and the derivative liability are presented in total on the consolidated balance sheet. The derivative liability is remeasured at each reporting period with changes in fair value recorded in the consolidated statements of operations within other income (expense), net.
Derivative Financial Instruments	Derivative Financial Instruments The Company evaluates stock warrants, debt instruments and other contracts to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for under the relevant sections of ASC 815. The result of this accounting treatment could be that the fair value of a financial instrument is classified as a derivative financial instrument and is marked-to-market at each balance sheet date and recorded as an asset or liability. In the event that the fair value is recorded as an asset or liability, the change in fair value is recorded in the consolidated statements of operations as other income or other expense. Upon conversion, exercise or expiration of a derivative financial instrument, the instrument is marked to fair value.
Research and development	Research and Development Research and development expense consists primarily of personnel costs for our engineers engaged in the design and development of our products, software and technologies, project material costs, services, depreciation and amortization. Such costs are charged to research and development expense as they are incurred, to the extent not capitalized as software development costs for external or internal use.
Lease Accounting	Lease Accounting Lessee Arrangements The Company determines if an arrangement contains a lease at inception. The Company primarily leases office space, automobiles and equipment. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. Certain real estate leases also include executory costs such as common area maintenance. The Company accounts for lease and non-lease components, including common area maintenance, as a single lease component as a practical expedient election. None of the Company’s operating lease agreements contain any material residual value guarantees or material restrictive covenants. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The lease term includes the base non-cancelable term, and any renewal options that are reasonably certain to be exercised at the commencement date. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease prepayments made and exclude lease incentives. Rental expense related to operating leases is recognized on a straight-line basis over the lease term. The Company has elected the practical expedient to exclude any short-term lease, defined as a lease with an original term of 12 months or less, from the provisions of ASC 842, Leases. Variable lease payments that do not depend on an index or rate are excluded from the measurement of ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Lessor Arrangements The Company serves as lessor for certain monitoring device leases and classifies such arrangements as operating leases. Accordingly, the Company carries rental devices at historical cost less accumulated depreciation and impairment, if any. The Company combines the lease and the non-lease components under these arrangements because the service is the predominant element from the customer’s perspective 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.
Foreign Currency Transactions and Translation	Foreign Currency Transactions Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rate between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. Such increase or decrease is reported by the Company as a foreign currency transaction gain or loss within other income (expense), net, in the consolidated statements of operations. We recognize foreign currency transaction gains and losses primarily on intercompany transactions between certain subsidiaries in foreign countries . Based upon historical experience, the Company anticipates repayment of these transactions in the foreseeable future and recognizes realized and unrealized gains and losses on these transactions in the period in which they occur. Foreign Currency Translation Assets and liabilities of the Company’s international subsidiaries in which the local currency is the functional currency are translated into U.S. Dollars at period-end exchange rates. Income and expenses are translated into U.S. Dollars at the average exchange rates during the period. The resulting translation adjustments are included in the Company’s consolidated balance sheets as a component of accumulated other comprehensive loss.
Income Taxes	Income Taxes The Company recognizes federal, state and foreign current tax liabilities or assets based on its estimate of taxes payable to or refundable by tax authorities in the current fiscal year. The Company also recognizes federal, state and foreign deferred tax liabilities or assets based on the Company’s estimate of future tax effects attributable to temporary differences and carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. The Company evaluates deferred income taxes on a quarterly basis to determine if valuation allowances are required by considering available evidence. If the Company is unable to generate sufficient future taxable income in certain tax jurisdictions, or if there is a material change in the actual effective tax rates or time period within which the underlying temporary differences become taxable or deductible, the Company could be required to increase its valuation allowance against its deferred tax assets which could result in an increase in the Company’s effective tax rate and an adverse impact on operating results. The Company will continue to evaluate the necessity of the valuation allowance based on the remaining deferred tax assets. The Company recognizes the impact of an uncertain income tax position on an income tax return at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Uncertain tax positions are recognized in the first subsequent financial reporting period in which that threshold is met or from changes in circumstances such as the expiration of applicable statutes of limitations. The Company’s policy is to include interest and penalties related to such positions as a component of income tax expense.
Litigation	Litigation The Company is, from time to time, party to various legal proceedings arising in the ordinary course of business. The Company records a loss when information indicates that a loss is both probable and reasonably estimable. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company revises its estimates, if necessary. The Company expenses litigation costs as incurred.
Share-Based Compensation	Share-Based Compensation The Company has granted stock options and restricted stock units (“RSUs”) to employees, non-employee consultants and non-employee members of our Board of Directors. The Company also has an employee stock purchase plan (“ESPP”) for eligible employees. The Company measures the compensation cost associated with all share-based payments based on grant date fair values. The fair value of each stock option and stock purchase right is estimated on the date of grant using an option pricing model that meets certain requirements. The Company generally uses the Black-Scholes option pricing model to estimate the fair value of its stock options and stock purchase rights. The determination of the fair value of share-based payment awards utilizing the Black-Scholes model is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected term, risk-free interest rate and expected dividends. For grants of stock options, the Company uses a blend of historical and implied volatility for traded options on its stock in order to estimate the expected volatility assumption required in the Black-Scholes model. The Company’s use of a blended volatility estimate in computing the expected volatility assumption for stock options is based on its belief that while the implied volatility is representative of expected future volatility, the historical volatility over the expected term of the award is also an indicator of expected future volatility. Due to the short duration of stock purchase rights under the Company’s ESPP, the Company utilizes a blended volatility estimate that consists of implied volatility and historical volatility in order to estimate the expected volatility assumption of the Black-Scholes model. The expected term of stock options granted is estimated using historical experience. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the Company’s stock options and stock purchase rights. The dividend yield assumption is based on the Company’s history and expectation of no dividend payouts. The Company estimates forfeitures at the time of grant and revises these estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company estimates its forfeiture rate assumption for all types of share-based compensation awards based on historical forfeiture rates related to each category of award. Compensation cost associated with grants of restricted stock units are measured at fair value, which has historically been the closing price of the Company’s common stock on the date of grant. The Company recognizes share-based compensation expense over the requisite service period of each individual award, which generally equals the vesting period, using the straight-line method for awards that contain only service conditions. For awards that contain performance conditions, the Company recognizes the share-based compensation expense on a straight-line basis for each vesting tranche. The Company evaluates the assumptions used to value stock awards on a quarterly basis. If factors change and the Company employs different assumptions, share-based compensation expense may differ significantly from what it has recorded in the past. If there are any modifications or cancellations of the underlying unvested securities, the Company may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense.
Net Loss Per Share Attributable to Inseego Corp.	Net Loss Per Share Attributable to Inseego Corp.Net loss attributable to common stockholders is computed by dividing the net loss by the weighted-average number of shares that were outstanding during the period. Diluted net loss attributable to common stockholders (“EPS”) reflects the potential dilution that could occur if securities or other contracts to acquire common stock were exercised or converted into common stock. Potentially dilutive securities are excluded from the diluted EPS computation in loss periods as their effect would be anti-dilutive.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). A fair value measurement reflects the assumptions market participants would use in pricing an asset or liability based on the best available information. These assumptions include the risk inherent in a particular valuation technique (such as a pricing model) and the risks inherent in the inputs to the model. The Company classifies inputs to measure fair value using a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) and is defined as follows: Level 1: Pricing inputs are based on quoted market prices for identical assets or liabilities in active markets (e.g., NYSE or NASDAQ). Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Pricing inputs include benchmark yields, trade data, reported trades and broker dealer quotes, two-sided markets and industry and economic events, yield to maturity, Municipal Securities Rule Making Board reported trades and vendor trading platform data. Level 2 includes those financial instruments that are valued using various pricing services and broker pricing information including Electronic Communication Networks and broker feeds. Level 3: Pricing inputs include significant inputs that are generally less observable from objective sources, including the Company’s own assumptions. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.
Comprehensive Loss	Comprehensive Loss Comprehensive loss consists of net earnings and foreign currency translation adjustments.
Recently Adopted Accounting Pronouncements and Pronouncements Not Yet Adopted	Recently Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“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 guidance is effective for annual and interim periods beginning after December 15, 2021. The Company adopted the ASU in the first quarter of fiscal 2022 and there was no impact to the 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 ASU addresses issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options. The ASU is effective for annual and interim periods beginning after December 15, 2021. The Company adopted the ASU in the first quarter of fiscal 2022 and there was no impact to the consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued ASU No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50). The ASU requires disclosure of the key terms of outstanding supplier finance programs and a rollforward of the related obligations. The ASU does not affect the recognition, measurement or financial statement presentation of supplier finance program obligations. The ASU is effective for annual and interim periods beginning after December 15, 2022, except for the rollforward requirement, which is effective for annual periods beginning after December 15, 2023. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial position or results of operations.

Nature of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

Restricted cash held in escrow with a financial institution as of December 31, 2021, which was set up as collateral for potential future uninsured warranty claims related to the divestiture of Ctrack South Africa, was released during the third quarter of 2022, and we no longer have any restricted cash on our balance sheet as of December 31, 2022. See Note 5. Business Divestiture for additional information about the divestiture of Ctrack South Africa.


	December 31,
	2022		2021
Cash and cash equivalents	$	7,143	$	46,474
Restricted cash	—		3,338
Cash, cash equivalents and restricted cash, end of period	$	7,143	$	49,812

Schedule of Net Revenues by Product Grouping

Net revenues by grouping for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):


	Year Ended December 31,
	2022		2021		2020
IoT & Mobile Solutions	$	218,401	$	217,984	$	261,169
Enterprise SaaS Solutions	26,922		44,415		52,663
Total	$	245,323	$	262,399	$	313,832

Financial Statement Details (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Inventories

Inventories consist of the following (in thousands):


	December 31,
	2022		2021
Finished goods	$	31,153	$	33,112
Raw materials and components	6,823		4,290
Total inventories	$	37,976	$	37,402

Summary of Prepaid Expenses and Other

Prepaid expenses and other consists of the following (in thousands):


	December 31,
	2022		2021
Rebate receivables	$	2,038	$	6,398
Receivables from contract manufacturers	3,561		2,626
Software licenses	772		1,261
Insurance	12		1,269
Deposits	829		1,023
Financed assets	—		323
Other	766		724
Total prepaid expenses and other	$	7,978	$	13,624

Summary of Property, Plant and Equipment and Rental Assets

Property, plant and equipment consists of the following (in thousands):


	December 31,
	2022		2021


Test equipment	$	19,724	$	19,095
Computer equipment and purchased software	4,603		7,618
Product tooling	5,007		4,350
Furniture and fixtures	1,214		1,214
Vehicles	119		1,654
Leasehold improvements	772		863
Total property, plant and equipment, gross	31,439		34,794
Less—accumulated depreciation and amortization	(26,049)		(26,692)
Total property, plant and equipment, net	$	5,390	$	8,102

Rental assets consist of the following (in thousands):


	December 31,
	2022		2021
Rental assets	$	10,300	$	9,967
Less—accumulated depreciation	(5,484)		(5,392)
Total rental assets	$	4,816	$	4,575

Summary of Accrued Expenses and Other Current Liabilities

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


	December 31,
	2022		2021
Royalties	$	992	$	2,243
Payroll and related expenses	8,873		9,326
Warranty obligations	480		473

Professional fees	738		502
Bank overdrafts	—		370
Accrued interest	1,112		877
Deferred revenue	5,060		3,832
Customer advances	2,828		—
Operating lease liabilities	1,759		1,769
Accrued contract manufacturing liabilities	1,416		927
Liabilities related to financed assets	—		1,593
Value added tax payables	449		642
Other	4,238		3,699
Total accrued expenses and other current liabilities	$	27,945	$	26,253

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

A summary of the activity in goodwill is presented below (in thousands):


Balance at December 31, 2020	$	32,511
Effect of Ctrack South Africa divestiture	(10,734)
Effect of change in foreign currency exchange rates	(1,441)
Balance at December 31, 2021	20,336
Effect of change in foreign currency exchange rates	1,586
Balance at December 31, 2022	$	21,922

Schedule of Intangible Assets

The Company’s intangible assets are comprised of the following (in thousands):


	December 31, 2022
	Weighted-Average Life (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived intangible assets:
Developed technologies	6.0	$	4,534	$	(4,016)	$	518
Trademarks and trade names	10.0	9,513		(7,105)		2,408
Customer relationships	10.0	8,500		(6,597)		1,903
Capitalized software development costs	2.8	40,767		(11,686)		29,081
Other	3.0	2,884		(2,225)		659
Total finite-lived intangible assets		$	66,198	$	(31,629)	34,569
Indefinite-lived intangible assets:
In-process capitalized software development costs						6,814
Total intangible assets						$	41,383


	December 31, 2021
	Weighted-Average Life (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived intangible assets:
Developed technologies	6.0	$	8,305	$	(7,100)	$	1,205
Trademarks and trade names	10.0	9,088		(5,920)		3,168
Customer relationships	10.0	11,995		(9,242)		2,753
Capitalized software development costs	3.1	54,581		(24,604)		29,977
Other	3.0	2,885		(1,538)		1,347
Total finite-lived intangible assets		$	86,854	$	(48,404)	38,450
Indefinite-lived intangible assets:
In-process capitalized software development costs						8,545
Total intangible assets						$	46,995

Schedule of Amortization Expense of Finite-Lived Intangible Assets Expected to be Recognized

The following table represents details of the amortization of finite-lived intangible assets that is estimated to be expensed in the future (in thousands):


2023	$	15,181
2024	9,235
2025	3,976
2026	2,178
2027	2,104
Thereafter	1,895
Total	$	34,569

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

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+ Details

Fair Value Measurement of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis as of December 31, 2022 and 2021 (in thousands):


	December 31, 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	$	—	$	—	$	—	$	926	$	926	$	—
Total liabilities	$	—	$	—	$	—	$	926	$	926	$	—

During the years ended December 31, 2022 and 2021, there were no transfers between the levels within the fair value hierarchy.

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:


	December 31, 2022		December 31, 2021
Volatility	50	%	50	%
Stock price	$0.84 per share		$5.83 per share
Credit spread	56.52	%	15.93	%
Term	2.34 years		3.34 years
Dividend yield	—	%	—	%
Risk-free rate	4.35	%	1.02	%

- Definition

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

+ References + Details

Business Divestiture (Tables)

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Assets and Liabilities Sold

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


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


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

Total consideration recognized was comprised of the following:


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

(a) $2.2 million was received on October 29, 2021, and the remaining $0.4 million was offset with the Company’s existing accounts payable balance to Convergence.

Net gain on sale is comprised of the following:


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

- Definition

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

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+ Details

Debt (Tables)

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Schedule of Net Carrying Amount of Debt

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


	December 31,
	2022		2021
Principal	$	161,898	$	161,898
Add: fair value of embedded derivative	—		926
Less: unamortized debt discount	(1,933)		(2,761)
Less: unamortized issuance costs	(1,538)		(2,197)
Net carrying amount	$	158,427	$	157,866


	December 31,
	2022
Gross amount outstanding (in thousands)	$	7,851
Less: unamortized debt issuance cost	(932)
Revolving credit facility, net	$	6,919

Schedule of Interest Expense

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


		Year Ended December 31,
	2022			2021			2020

Contractual interest expense		$	5,262		$	5,271		$	3,434
Amortization of debt discount		828			829			552
Amortization of debt issuance costs		659			660			439
Total interest expense		$	6,749		$	6,760		$	4,425

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


	December 31,
	2022
Contractual interest expense	$	211
Amortization of debt issuance costs	194
Total interest expense	$	405

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Summary of Loss before Income Taxes

The Company’s loss before income taxes for the years ended December 31, 2022, 2021 and 2020 is comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Domestic	$	(63,939)	$	(40,897)	$	(109,837)
Foreign	(4,495)		(6,823)		(601)
Loss before income taxes	$	(68,434)	$	(47,720)	$	(110,438)

Summary of Provision for Income Taxes

The (benefit) provision for income taxes for the years ended December 31, 2022, 2021 and 2020 is comprised of the following (in thousands):


	Year Ended December 31,
	2022		2021		2020
Current:
Federal	$	—	$	—	$	—
State	50		30		(4)
Foreign	55		214		93
Total current	105		244		89
Deferred:
Federal	15		12		12
State	—		—		—
Foreign	(585)		(65)		647
Total deferred	(570)		(53)		659
(Benefit) Provision for income taxes	$	(465)	$	191	$	748

Summary of Net Deferred Tax Assets

The Company’s net deferred tax liabilities consist of the following (in thousands):


	December 31,
	2022		2021
Deferred tax assets:
Accrued expenses	$	715	$	1,016
Provision for excess and obsolete inventory	759		466
Capitalized research and experimental expenditures	8,986		—
Convertible debt	9,782		9,804
Interest expense limitation	12,722		11,113
Net operating loss and tax credit carryforwards	112,297		110,463
Share-based compensation	3,375		2,562
Right-of-use-asset	2,294		1,765
Unrecognized tax benefits	1,942		1,567
Deferred tax assets	152,872		138,756
Valuation allowances	(145,431)		(132,132)
Deferred tax assets, net of valuation allowances	7,441		6,624
Deferred tax liabilities:
Operating lease liability	(2,518)		(1,830)
Acquired intangible assets	(599)		(666)

Depreciation and amortization	(4,288)		(4,376)
Unrealized foreign currency gains	(359)		(604)
Deferred tax liabilities	(7,764)		(7,476)
Deferred tax liabilities, net	$	(323)	$	(852)

Summary of Provision for Income Taxes Reconciles to Amount Computed by Applying Statutory Federal Income Tax Rate


	Year Ended December 31,
	2022		2021		2020
Federal tax benefit, at statutory rate	$	(14,371)	$	(10,021)	$	(23,192)
State benefit, net of federal benefit	(370)		(148)		(1,285)
Foreign tax rate difference	(259)		(358)		(140)


Valuation allowance against future tax benefits	13,564		6,029		26,410
Gain on sale of foreign subsidiaries	—		3,008		—
Sub-part F income	—		791		—
Loss on conversion of debt	—		—		2,015




Research and development credits	(2,222)		(1,415)		(2,355)
Share-based compensation	1,010		(879)		(1,134)




Non-deductible officers compensation	108		1,449		—
True-up of prior year provisions	2,123		1,681		—
Other	(48)		54		429
(Benefit) Provision for income taxes	$	(465)	$	191	$	748

Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):





Balance at December 31, 2020	$	39,631
Increases related to current and prior year tax positions	1,998

Balance at December 31, 2021	41,629
Increases related to current and prior year tax positions	1,286

Balance at December 31, 2022	$	42,915

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2022

Equity [Abstract]

Summary of Common Shares Reserved for Future Issuance

The Company had reserved shares of common stock for possible future issuance as of December 31, 2022 and 2021 as follows:


	December 31,
	2022	2021
Common stock warrants outstanding	—	2,500,000
Stock options outstanding	8,132,959	8,085,793
Restricted stock units outstanding	1,178,370	1,247,723
Shares available for issuance pursuant to Convertible Notes	14,090,448	14,340,786

Shares available for future grants of awards under the 2018 Omnibus Incentive Compensation Plan	8,848,748	3,311,023
Shares available under the 2000 Employee Stock Purchase Plan	895,141	170,811
Total shares of common stock reserved for issuance	33,145,666	29,656,136

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Share-Based Compensation Expense


	Year Ended December 31,
	2022		2021		2020
Cost of revenues	$	2,110	$	2,469	$	1,583
Research and development	5,369		4,813		2,823
Sales and marketing	3,528		3,704		2,346
General and administrative	6,868		5,663		3,667

Total	$	17,875	$	16,649	$	10,419

Share-based Compensation Stock Option Fair Value Assumptions

The following table presents the weighted-average assumptions used in the Black-Scholes valuation model by the Company in calculating the fair value of each stock option granted:


	Year Ended December 31,
	2022		2021
Expected dividend yield	—	%	—	%
Risk-free interest rate	0.4	%	0.9	%
Volatility	16	%	73	%
Expected term (in years)	1.1		5.4

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the years ended December 31, 2022, 2021 and 2020 (dollars in thousands, except per share data):


	Stock Options Outstanding	Weighted-Average Exercise Price Per Option		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding — December 31, 2019	9,044,304	$	2.91
Granted	1,526,000	9.41
Exercised	(1,357,620)	3.06
Canceled	(732,705)	3.60
Outstanding — December 31, 2020	8,479,979	$	3.99
Granted	1,929,500	8.86
Exercised	(1,315,552)	2.62
Canceled	(1,008,134)	8.60
Outstanding — December 31, 2021	8,085,793	$	4.81
Granted	1,505,000	4.63
Exercised	(370,688)	1.37
Canceled	(1,087,146)	7.97
Outstanding — December 31, 2022	8,132,959	$	4.65	5.25	$	—
Vested and Expected to Vest — December 31, 2022	7,573,152	$	4.49	5.01	$	1
Exercisable — December 31, 2022	5,550,858	$	3.87	3.69	$	1

Summary of Restricted Stock Unit Activity

A summary of restricted stock unit activity under all plans for the years ended December 31, 2022, 2021 and 2020 is presented below:


	Number of Shares	Weighted-Average Grant-Date Fair Value
Non-vested — December 31, 2019	400,315	$	3.95
Granted	570,368	10.52
Vested	(548,160)	7.28
Forfeited	(5,418)	4.06
Non-vested — December 31, 2020	417,105	8.68
Granted	1,931,263	8.53
Vested	(1,019,686)	10.20
Forfeited	(80,959)	10.75
Non-vested — December 31, 2021	1,247,723	7.65
Granted	2,544,053	4.51
Vested	(2,278,818)	4.53
Forfeited	(334,588)	3.45
Non-vested — December 31, 2022	1,178,370	7.33

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 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):


	Year Ended December 31,
	2022		2021		2020
Net loss attributable to common stockholders	$	(70,705)	$	(52,368)	$	(114,119)
Weighted-average common shares outstanding	107,269,331		103,246,308		96,111,547
Basic and diluted net loss per share	$	(0.66)	$	(0.51)	$	(1.19)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share


	Year Ended December 31,
(in thousands)	2022	2021	2020
Convertible notes	14,090	14,341	14,784
Warrants	—	2,500	2,500
Non-qualified stock options	8,133	8,086	8,480
Restricted stock units	1,178	1,248	417
Employee Stock Purchase Plan	426	144	25
Total	23,827	26,319	26,206

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Supplemental Lease Information

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


	Balance Sheet Classification	December 31, 2022			December 31, 2021
Operating right-of-use assets	Right-of-use assets	$	6,662		$	7,839

Current operating lease liabilities	Accrued expenses and other current liabilities	$	1,759		$	1,769
Non-current operating lease liabilities	Other long-term liabilities	5,903			7,112
Total operating lease liabilities		$	7,662		$	8,881

Weighted-average remaining lease term (in years)		4.1			5.0
Weighted-average discount rate		9.0		%	9.1		%

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


	Year Ended December 31, 2022
	2022		2021		2020

Operating lease costs included in operating costs and expenses	$	2,453	$	2,800	$	2,200

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


	Year Ended December 31, 2022
	2022		2021		2020

Operating cash flows related to operating leases	$	2,464	$	2,600	$	1,900
Operating right-of-use assets obtained in exchange for lease liabilities	$	705	$	658	$	7,931

Schedule of Future Minimum Payments Under Operating Leases

The future minimum payments under operating leases were as follows at December 31, 2022 (in thousands):



2023	$	2,459
2024	2,203
2025	1,763
2026	1,698
2027	1,125

Total minimum operating lease payments	9,248
Less: amounts representing interest	(1,586)
Present value of net minimum operating lease payments	7,662
Less: current portion	(1,759)
Long-term portion of operating lease obligations	$	5,903

Geographic Information and Concentrations of Risk (Tables)

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Schedule of Geographic Concentration of Assets

The following table details the geographic concentration of the Company’s assets (in thousands):


	December 31,
	2022		2021
United States and Canada	$	122,074	$	176,094
Europe	32,903		35,630



Other	4,040		4,119
	$	159,017	$	215,843

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):


	Year Ended December 31,
	2022		2021		2020
United States and Canada	$	201,799	$	215,520	$	260,009
Europe	27,562		23,123		21,720
Australia	11,250		4,202		3,333
South Africa	—		17,346		28,208
Other	4,712		2,208		562
Total	$	245,323	$	262,399	$	313,832

Nature of Business and Significant Accounting Policies - Narrative (Details)		12 Months Ended
	Jul. 30, 2021 USD ($)	Dec. 31, 2022 USD ($) segment	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Nature Of Business And Significant Accounting Policies [Line Items]
Number of reportable segments \| segment		1
Pre-tax gain	$ 5,300,000
Total consideration recognized	31,500,000
Cash deconsolidated as part of sale	$ 5,000,000	$ 5,000,000
Cash, cash equivalents and restricted cash		7,143,000	$ 49,812,000	$ 40,015,000	$ 12,074,000
Working capital		21,400,000
Remaining capacity		6,100,000
Shares available for issuance amount		9,500,000
Contract liabilities			3,832,000
Accounts receivable, net		25,259,000	26,781,000
Allowance on accounts receivable		541,000	408,000
Impairment of capitalized software		3,014,000	1,197,000	1,410,000
Impairment of indefinite-lived intangible assets		0	0	0
Impairment of long-lived assets		0	0	$ 0
Accounts Payable and Accrued Liabilities
Nature Of Business And Significant Accounting Policies [Line Items]
Contract liabilities		5,100,000	3,800,000
Other Noncurrent Liabilities
Nature Of Business And Significant Accounting Policies [Line Items]
Contract liabilities		$ 600,000	$ 100,000
Minimum
Nature Of Business And Significant Accounting Policies [Line Items]
General warranty period		12 months
Maximum
Nature Of Business And Significant Accounting Policies [Line Items]
General warranty period		36 months
Buildings
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		50 years
Leasehold improvements \| Maximum
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		5 years
Product tooling
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		13 months
Computer equipment, purchased software, vehicles, production equipment, and furniture and fixtures \| Minimum
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		2 years
Computer equipment, purchased software, vehicles, production equipment, and furniture and fixtures \| Maximum
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		7 years
Rental assets \| Minimum
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		3 years
Rental assets \| Maximum
Nature Of Business And Significant Accounting Policies [Line Items]
Property, plant and equipment useful lives		4 years

Nature of Business and Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 7,143	$ 46,474
Restricted cash	0	3,338
Cash, cash equivalents and restricted cash, end of period	$ 7,143	$ 49,812	$ 40,015	$ 12,074

Nature of Business and Significant Accounting Policies - Net Revenues by Product Grouping (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 245,323	$ 262,399	$ 313,832
IoT & Mobile Solutions
Disaggregation of Revenue [Line Items]
Total revenue	218,401	217,984	261,169
Enterprise SaaS Solutions
Disaggregation of Revenue [Line Items]
Total revenue	$ 26,922	$ 44,415	$ 52,663

- 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

Financial Statement Details - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finished goods	$ 31,153	$ 33,112
Raw materials and components	6,823	4,290
Total inventory	$ 37,976	$ 37,402

Financial Statement Details - Prepaid Expenses and Other (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Rebate receivables	$ 2,038	$ 6,398
Receivables from contract manufacturers	3,561	2,626
Software licenses	772	1,261
Insurance	12	1,269
Deposits	829	1,023
Financed assets	0	323
Other	766	724
Total prepaid expenses and other	$ 7,978	$ 13,624

Financial Statement Details - Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 31,439	$ 34,794
Less—accumulated depreciation and amortization	(26,049)	(26,692)
Property, plant and equipment, net	5,390	8,102
Test equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	19,724	19,095
Computer equipment and purchased software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	4,603	7,618
Product tooling
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,007	4,350
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,214	1,214
Vehicles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	119	1,654
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 772	$ 863

Financial Statement Details - Rental Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Rental assets	$ 10,300	$ 9,967
Less—accumulated depreciation	(5,484)	(5,392)
Total rental assets	$ 4,816	$ 4,575

Financial Statement Details - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Depreciation and amortization expense	$ 7.1	$ 9.8	$ 10.0
Property, plant and equipment under finance leases, net	3.1	3.1
Property, plant and equipment under finance leases, accumulated amortization	$ 2.1	$ 1.3
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant and equipment, net of accumulated depreciation of $26,049 and $26,692, respectively	Property, plant and equipment, net of accumulated depreciation of $26,049 and $26,692, respectively

Financial Statement Details - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Royalties	$ 992	$ 2,243
Payroll and related expenses	8,873	9,326
Warranty obligations	480	473
Professional fees	738	502
Bank overdrafts	0	370
Accrued interest	1,112	877
Deferred revenue		3,832
Customer advances	2,828	0
Operating lease liabilities	1,759	1,769
Accrued contract manufacturing liabilities	1,416	927
Liabilities related to financed assets	0	1,593
Value added tax payables	449	642
Other	4,238	3,699
Accrued expenses and other current liabilities, total	$ 27,945	$ 26,253
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities, total	Accrued expenses and other current liabilities, total

Goodwill and Other Intangible Assets - Goodwill Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Balance at beginning of period	$ 32,511
Effect of Ctrack South Africa divestiture		$ (10,734)
Effect of change in foreign currency exchange rates	1,586	(1,441)
Balance at end of period	$ 20,336	$ 32,511

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 66,198	$ 86,854
Accumulated Amortization	(31,629)	(48,404)
Net Carrying Value	34,569	38,450
Indefinite-lived intangible assets	6,814	8,545
Total intangible assets, net	$ 41,383	$ 46,995
Developed technologies
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Life (in years)	6 years	6 years
Gross Carrying Value	$ 4,534	$ 8,305
Accumulated Amortization	(4,016)	(7,100)
Net Carrying Value	$ 518	$ 1,205
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Life (in years)	10 years	10 years
Gross Carrying Value	$ 9,513	$ 9,088
Accumulated Amortization	(7,105)	(5,920)
Net Carrying Value	$ 2,408	$ 3,168
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Life (in years)	10 years	10 years
Gross Carrying Value	$ 8,500	$ 11,995
Accumulated Amortization	(6,597)	(9,242)
Net Carrying Value	$ 1,903	$ 2,753
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Life (in years)	2 years 9 months 18 days	3 years 1 month 6 days
Gross Carrying Value	$ 40,767	$ 54,581
Accumulated Amortization	(11,686)	(24,604)
Net Carrying Value	$ 29,081	$ 29,977
Other
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Life (in years)	3 years	3 years
Gross Carrying Value	$ 2,884	$ 2,885
Accumulated Amortization	(2,225)	(1,538)
Net Carrying Value	$ 659	$ 1,347

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 20.1	$ 15.5	$ 18.0
Impairment loss on intangible assets	3.0	1.2	1.4
Capitalized software development costs
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 17.9	$ 12.2	$ 12.9

Goodwill and Other Intangible Assets - Expected Amortization Expense of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Estimated future amortization expense
2022	$ 15,181
2023	9,235
2024	3,976
2025	2,178
2026	2,104
Thereafter	1,895
Net Carrying Value	$ 34,569	$ 38,450

Fair Value Measurement of Assets and Liabilities - Financial Instruments Measured at Fair Value (Details) - Recurring - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Assets
Total assets	$ 0	$ 126
Liabilities
Total liabilities	0	926
Interest make-whole provision
Liabilities
Fair value of embedded derivative	0	926
Money market funds
Assets
Fair value of cash equivalents	0	126
Level 1
Assets
Total assets	0	126
Liabilities
Total liabilities	0	0
Level 1 \| Interest make-whole provision
Liabilities
Fair value of embedded derivative	0	0
Level 1 \| Money market funds
Assets
Fair value of cash equivalents	0	126
Level 3
Assets
Total assets	0	0
Liabilities
Total liabilities	0	926
Level 3 \| Interest make-whole provision
Liabilities
Fair value of embedded derivative	0	926
Level 3 \| Money market funds
Assets
Fair value of cash equivalents	$ 0	$ 0

Fair Value Measurement of Assets and Liabilities - Binomial Lattice Model and Assumptions (Details) - Level 3 - Interest make-whole payment	12 Months Ended
	Dec. 31, 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	$ 0.84	$ 5.83
Credit spread
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.5652	0.1593
Term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Term	2 years 4 months 2 days	3 years 4 months 2 days
Dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0	0
Risk-free rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.0435	0.0102

Fair Value Measurement of Assets and Liabilities - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability extinguished upon debt conversion	$ 0.1
Gain on change in fair value of embedded derivative		$ 3.8
Loss on change in fair value of embedded derivative	0.9		$ 0.6
2025 Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Value of converted amount	$ 5.0

Business Divestiture - Narrative (Details) - USD ($)
$ in Thousands

12 Months Ended

Jul. 30, 2021

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

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

Total consideration recognized

$ 31,500

Cash deconsolidated as part of sale

5,000

$ 5,000

Gain on sale of Ctrack South Africa

$ 5,262

$ 0

Proceeds from sale of Ctrack South Africa, net of cash divested1

^[1]

$ 0

33,689

$ 0

Ctrack South Africa | Disposed of by sale

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

Total consideration recognized

39,150

Cash deconsolidated as part of sale

5,000

Purchase consideration placed in escrow fund

3,300

Gain on sale of Ctrack South Africa

5,300

Transaction expenses

$ 2,200

Proceeds from sale of Ctrack South Africa, net of cash divested1

$ 33,700

[1]	The amount for the year ended December 31, 2021 is net of cash divested of $5.0 million

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

Business Divestiture - Net Proceeds (Details) - USD ($) $ in Thousands	Oct. 29, 2021	Jul. 30, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Initial purchase consideration received, upon close		$ 36,566
Total consideration recognized		31,500
Working Capital Received	$ 2,200
Working Capital Offset	$ 400
Disposed of by sale \| Ctrack South Africa
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Working capital adjustments (a)		2,584
Total consideration recognized		$ 39,150

Business Divestiture - Net Gain on Sale (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration]	Gain on sale of Ctrack South Africa
Disposed of by sale \| Ctrack South Africa
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gross proceeds recognized	$ 39,150
Less: Book value of net assets sold	32,280
Less: Release of cumulative foreign currency translation adjustments related to Ctrack South Africa	1,608
Gain recognized during the period	$ 5,262

Debt - Narrative (Details)			12 Months Ended
Debt - Narrative (Details)	Aug. 05, 2022 USD ($)	May 12, 2020 USD ($)	Dec. 31, 2022 USD ($) trading_day $ / shares shares	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Proceeds from completed registered offering			$ 0	$ 0	$ 100,000,000
Cash paid in exchange transaction			0	0	32,062,000
Loss on debt conversion and extinguishment			450,000	432,000	76,354,000
Remaining capacity			6,100,000
Interest expense attributable to related parties					800,000
Amortization of debt issuance costs			$ 200,000
Line of Credit Facility, Interest Rate During Period			17.71%
Affiliated Entity
Debt Instrument [Line Items]
Contractual interest expense				2,600,000	1,700,000
Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount			$ 7,851,000
Contractual interest expense			211,000
Maximum borrowing capacity	$ 50,000,000		15,700,000
Minimum draw	$ 4,500,000
Applicable margin on interest rate (percent)	3.50%
Debt covenant threshold	$ 10,000,000
Debt issuance costs	$ (1,100,000)
Outstanding borrowings under the credit facility			7,900,000
Remaining capacity			7,800,000
Amortization of debt issuance costs			194,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.40%
Revolving Credit Facility \| Less Than 15 Million
Debt Instrument [Line Items]
Debt covenant threshold	$ 15,000,000
Revolving Credit Facility \| Between 15 Million and 25 Million \| Minimum
Debt Instrument [Line Items]
Debt covenant threshold	15,000,000
Revolving Credit Facility \| Between 15 Million and 25 Million \| Maximum
Debt Instrument [Line Items]
Debt covenant threshold	25,000,000
Revolving Credit Facility \| Greater Than 25 Million
Debt Instrument [Line Items]
Debt covenant threshold	$ 25,000,000
Revolving Credit Facility \| SOFR
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	1.00%
Revolving Credit Facility \| SOFR \| Less Than 15 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	3.50%
Revolving Credit Facility \| SOFR \| Between 15 Million and 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	4.00%
Revolving Credit Facility \| SOFR \| Greater Than 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	5.50%
Revolving Credit Facility \| Federal Base Rate
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	0.50%
Revolving Credit Facility \| Base Rate \| Less Than 15 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	2.50%
Revolving Credit Facility \| Base Rate \| Between 15 Million and 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	3.00%
Revolving Credit Facility \| Base Rate \| Greater Than 25 Million
Debt Instrument [Line Items]
Applicable margin on interest rate (percent)	4.50%
2022 Notes
Debt Instrument [Line Items]
Contractual interest expense				768,000
Amortization of debt issuance costs				111,000
Novatel Wireless Notes
Debt Instrument [Line Items]
Contractual interest expense					1,667,000
Amortization of debt issuance costs					103,000
Convertible debt
Debt Instrument [Line Items]
Cash paid in exchange transaction		$ 32,000,000
Convertible debt \| 2025 Notes
Debt Instrument [Line Items]
Proceeds from completed registered offering		100,000,000
Principal amount			161,898,000	$ 161,898,000
Debt issued in exchange transaction		80,400,000
Loss on debt conversion and extinguishment			400,000
Debt conversion amount			$ 5,000,000
Conversion (shares) \| shares			428,669
Shares in satisfaction of make-whole payment (shares) \| shares			32,221
Stated interest rate of debt issued			3.25%
Conversion ratio			0.0792896
Conversion price ($ per share) \| $ / shares			$ 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%
Notes held by related parties			$ 80,400,000
Accrued interest due to related parties			$ 900,000
Effective interest rate			4.17%	4.15%
Contractual interest expense			$ 5,262,000	$ 5,271,000	3,434,000
Amortization of debt issuance costs			$ 659,000	$ 660,000	$ 439,000
Convertible debt \| 2022 Notes
Debt Instrument [Line Items]
Principal amount		45,000,000
Estimated fair value of convertible debt		112,400,000
Loss on debt conversion and extinguishment		$ 67,200,000
Convertible debt \| 2022 Notes
Debt Instrument [Line Items]
Effective interest rate					12.89%
Convertible debt \| Novatel Wireless Notes
Debt Instrument [Line Items]
Effective interest rate					15.19%

Debt - Components (Details) - 2025 Notes - Convertible debt - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal amount	$ 161,898	$ 161,898
Fair value of embedded derivative	0	926
Unamortized debt discount	(1,933)	(2,761)
Unamortized issuance costs	(1,538)	(2,197)
Net carrying amount	$ 158,427	$ 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) - USD ($) $ in Thousands	12 Months Ended
Debt - Interest Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 200
Revolving Credit Facility
Debt Instrument [Line Items]
Contractual interest expense	211
Amortization of debt issuance costs	194
Total interest expense	405
2025 Notes \| Convertible debt
Debt Instrument [Line Items]
Contractual interest expense	5,262	$ 5,271	$ 3,434
Amortization of debt discount	828	829	552
Amortization of debt issuance costs	659	660	439
Total interest expense	$ 6,749	6,760	4,425
2022 Notes
Debt Instrument [Line Items]
Contractual interest expense		768
Amortization of debt discount		1,952
Amortization of debt issuance costs		111
Total interest expense		$ 2,831
Novatel Wireless Notes
Debt Instrument [Line Items]
Contractual interest expense			1,667
Amortization of debt discount			859
Amortization of debt issuance costs			103
Total interest expense			$ 2,629

Debt - Credit Facility (Details) $ in Thousands	12 Months Ended
Debt - Credit Facility (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Commitment Fee Percentage	8.50%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Carrying amount of debt	$ 7,851
Unamortized Debt Issuance Expense	(932)
Long-term Debt	$ 6,919

- Definition

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

+ References + Details

Income Taxes - Loss before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Domestic	$ (63,939)	$ (40,897)	$ (109,837)
Foreign	(4,495)	(6,823)	(601)
Loss before income taxes	$ (68,434)	$ (47,720)	$ (110,438)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current:
Federal	$ 0	$ 0	$ 0
State	50	30	(4)
Foreign	55	214	93
Total current	105	244	89
Deferred:
Federal	15	12	12
State	0	0	0
Foreign	(585)	(65)	647
Total deferred	(570)	(53)	659
(Benefit) Provision for income taxes	$ (465)	$ 191	$ 748

Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Accrued expenses	$ 715	$ 1,016
Provision for excess and obsolete inventory	759	466
Capitalized research and experimental expenditures	8,986	0
Convertible debt	9,782	9,804
Interest expense limitation	12,722	11,113
Net operating loss and tax credit carryforwards	112,297	110,463
Share-based compensation	3,375	2,562
Right-of-use-asset	2,294	1,765
Unrecognized tax benefits	1,942	1,567
Deferred tax assets	152,872	138,756
Valuation allowances	(145,431)	(132,132)
Deferred Tax Assets, Net of Valuation Allowance	7,441	6,624
Deferred tax liabilities:
Operating lease liability	(2,518)	(1,830)
Acquired intangible assets	(599)	(666)
Depreciation and amortization	(4,288)	(4,376)
Unrealized foreign currency gains	(359)	(604)
Deferred tax liabilities	(7,764)	(7,476)
Deferred tax liabilities, net	$ (323)	$ (852)

Income Taxes - Provision for Income Taxes Reconciliation to Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Federal tax benefit, at statutory rate	$ (14,371)	$ (10,021)	$ (23,192)
State benefit, net of federal benefit	(370)	(148)	(1,285)
Foreign tax rate difference	(259)	(358)	(140)
Valuation allowance against future tax benefits	13,564	6,029	26,410
Gain on sale of foreign subsidiaries	0	3,008	0
Sub-part F income	0	791	0
Loss on conversion of debt	0	0	2,015
Research and development credits	(2,222)	(1,415)	(2,355)
Share-based compensation	1,010	(879)	(1,134)
Non-deductible officers compensation	108	1,449	0
True-up of prior year provisions	2,123	1,681	0
Other	(48)	54	429
(Benefit) Provision for income taxes	$ (465)	$ 191	$ 748

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Valuation allowance activity	$ 13,600,000	$ 6,000,000
Employer payroll taxes deferred, CARES Act	1,400,000
Income tax benefit recognized related to uncertain tax positions	0	0
Interest expense related to uncertain tax positions	0	0
Liability related to unrecognized tax benefits	0	$ 0
Ctrack South Africa divestiture
Operating Loss Carryforwards [Line Items]
Valuation allowance activity	(10,000,000)
True-up of prior year deferred taxes
Operating Loss Carryforwards [Line Items]
Valuation allowance activity	3,000,000
Foreign currency
Operating Loss Carryforwards [Line Items]
Valuation allowance activity	(200,000)
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	417,200,000
Operating loss carryforwards, not subject to expiration	110,000,000
Research and development tax credit carryforwards	15,900,000
California Franchise Tax Board
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	62,000,000
Research and development tax credit carryforwards	17,400,000
Foreign Tax Authority
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 22,700,000

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Unrecognized Tax Benefits
Beginning Balance	$ 41,629	$ 39,631
Increases related to current and prior year tax positions	1,286	1,998
Ending Balance	$ 42,915	$ 41,629

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands						1 Months Ended	12 Months Ended
	Sep. 03, 2021	Mar. 06, 2020	Aug. 09, 2019	Mar. 28, 2019	Aug. 06, 2018	Jan. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jan. 25, 2021
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						$ 29,400
Proceeds from the exercise of warrants							$ 0	$ 0	$ 1,861
Stock issuance costs								$ 900
Preferred stock, shares authorized							2,000,000	2,000,000
Preferred stock, par value (in dollars per share)							$ 0.001	$ 0.001
Deemed dividend on exchange of Series E Preferred Stock for common stock							$ 0	$ 1,104	0
Gross proceeds received from issuance of Series E preferred stock							$ 0	$ 0	25,000
Series E preferred shares
Class of Stock [Line Items]
Number of shares issued (in shares)		25,000
Purchase price (in dollars per share)		$ 1,000
Preferred stock, shares authorized							39,500	39,500
Preferred stock, par value (in dollars per share)							$ 0.001	$ 0.001
Shares of preferred stock exchanged	10,000
Gross proceeds received from issuance of Series E preferred stock		$ 25,000
Dividends accrued							$ 9,100	$ 6,400	$ 3,300
Dividend rate			9.00%
Redemption price			110.00%
Liquidation preference per share (in dollars per share)			$ 1,000				$ 1,000	$ 1,000
Preferred Stock, Per Share Amounts of Preferred Dividends in Arrears							$ 365.60	$ 256.16	$ 130.60
Common stock
Class of Stock [Line Items]
Common stock issued in exchange for preferred stock	1,525,207
Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized							150,000
Canaccord Genuity LLC
Class of Stock [Line Items]
Equity Distribution Agreement, maximum aggregate amount authorized for offer or sale										$ 40,000
2018 Warrants
Class of Stock [Line Items]
Number of shares issued (in shares)					12,062,000
Number of additional shares from warrants (in shares)					4,221,700
Proceeds from sale of stock					$ 19,700
Exercise price per share (in dollars per share)				$ 2.52	$ 2.52
Proceeds from the exercise of warrants				$ 10,600
2019 Warrants
Class of Stock [Line Items]
Number of additional shares from warrants (in shares)				2,500,000
Exercise price per share (in dollars per share)				$ 7.00

Stockholders' Equity - Common Shares Reserved for Future Issuance (Details) - shares	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	33,145,666	29,656,136
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	8,132,959	8,085,793
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	1,178,370	1,247,723
Convertible Notes
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	14,090,448	14,340,786
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance or purchase (in shares)	895,141	170,811
Common stock warrants outstanding
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares of common stock reserved for issuance (in shares)	0	2,500,000
2018 Omnibus Incentive Compensation Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance or purchase (in shares)	8,848,748	3,311,023

Share-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under the ESPP	525,670	220,390
Share-based compensation expense	$ 17,875	$ 16,649	$ 10,419
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation expense related to non-vested stock options	$ 7,100
Expiration period of stock options granted	10 years
Weighted-average fair value of stock option awards granted (per share)	$ 2.91	$ 5.41
Intrinsic value of stock options exercised during period	$ 3,700	$ 4,300	11,700
Expected recognition period	2 years 8 months 8 days
Share-based compensation expense	$ 5,900	6,300	5,800
Stock options \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Stock options \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected recognition period	2 years 4 months 24 days
Total vest date fair value of RSUs vested	$ 9,500	10,400	5,100
Share-based compensation expense	$ 11,700	9,600	4,100
Restricted Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Purchase period duration	6 months
Percentage of lower limit value of common stock	85.00%
Maximum limit of payroll deductions (percent)	10.00%
Number of shares authorized under the plan	5,324,000
Share-based compensation expense	$ 300	700	600
2018 Omnibus Incentive Compensation Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under the plan	32,753,085
2018 Omnibus Incentive Compensation Plan \| Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 8,800	$ 7,000	$ 2,700
2018 Omnibus Incentive Compensation Plan \| Restricted Stock Units In Divestiture
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 600

Share-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 17,875	$ 16,649	$ 10,419
Stock options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	5,900	6,300	5,800
Restricted Stock Units
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	11,700	9,600	4,100
Unrecognized share-based compensation expense related to non-vested RSUs	$ 4,000
Employee Stock Purchase Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares authorized under the plan	5,324,000
Share-based compensation expense	$ 300	700	600
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	2,110	2,469	1,583
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	5,369	4,813	2,823
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	3,528	3,704	2,346
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 6,868	$ 5,663	$ 3,667

Share-based Compensation - Weighted-Average Fair Value Assumptions (Details) - Stock options	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	0.40%	0.90%
Volatility	16.00%	73.00%
Expected term (in years)	1 year 1 month 6 days	5 years 4 months 24 days

Share-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stock Options Outstanding
Outstanding — beginning of period	8,085,793	8,479,979	9,044,304
Granted	1,505,000	1,929,500	1,526,000
Exercised	(370,688)	(1,315,552)	(1,357,620)
Canceled	(1,087,146)	(1,008,134)	(732,705)
Outstanding — end of period	8,132,959	8,085,793	8,479,979
Vested and Expected to Vest — December 31, 2022	7,573,152
Exercisable — December 31, 2022	5,550,858
Weighted-Average Exercise Price Per Option
Outstanding — beginning of period	$ 4.81	$ 3.99	$ 2.91
Granted	4.63	8.86	9.41
Exercised	1.37	2.62	3.06
Canceled	7.97	8.60	3.60
Outstanding — end of period	4.65	$ 4.81	$ 3.99
Vested and Expected to Vest — December 31, 2022	4.49
Exercisable — December 31, 2022	$ 3.87
Weighted-Average Remaining Contractual Term (Years), Options Outstanding	5 years 3 months
Weighted-Average Remaining Contractual Term (Years), Options Vested and Expected to Vest	5 years 3 days
Weighted-Average Remaining Contractual Term (Years), Options Exercisable	3 years 8 months 8 days
Aggregate Intrinsic Value, Options Outstanding	$ 0
Aggregate Intrinsic Value, Options Vested and Expected to Vest	1
Aggregate Intrinsic Value, Options Exercisable	$ 1

Share-based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Restricted Stock Units
Non-vested — beginning of period	1,247,723	417,105	400,315
Granted	2,544,053	1,931,263	570,368
Vested	(2,278,818)	(1,019,686)	(548,160)
Forfeited	(334,588)	(80,959)	(5,418)
Non-vested — end of period	1,178,370	1,247,723	417,105
Weighted-Average Grant-Date Fair Value
Non-vested — beginning of period	$ 7.65	$ 8.68	$ 3.95
Granted	4.51	8.53	10.52
Vested	4.53	10.20	7.28
Forfeited	3.45	10.75	4.06
Non-vested — end of period	$ 7.33	$ 7.65	$ 8.68

Earnings per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net loss attributable to common stockholders	$ (70,705)	$ (52,368)	$ (114,119)
Weighted-average common shares outstanding, basic (in shares)	107,269,331	103,246,308	96,111,547
Weighted-average common shares outstanding, diluted (in shares)	107,269,331	103,246,308	96,111,547
Basic net income (loss) per share (in dollars per share)	$ (0.66)	$ (0.51)	$ (1.19)
Diluted net income (loss) per share (in dollars per share)	$ (0.66)	$ (0.51)	$ (1.19)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
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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	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Anti-dilutive shares excluded from EPS calculation	23,827	26,319	26,206

Earnings per Share - Antidilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from EPS calculation	23,827	26,319	26,206
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from EPS calculation	14,090	14,341	14,784
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from EPS calculation	0	2,500	2,500
Non-qualified stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from EPS calculation	8,133	8,086	8,480
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from EPS calculation	1,178	1,248	417
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from EPS calculation	426	144	25

Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Noncancellable purchase obligations	$ 77.6

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Right-of-use assets	$ 6,662	$ 7,839
Current operating lease liabilities	1,759	1,769
Non-current operating lease liabilities	$ 5,903	$ 7,112
Operating lease liabilities, noncurrent, balance sheet line item	Other long-term liabilities	Other long-term liabilities
Present value of net minimum operating lease payments	$ 7,662	$ 8,881
Weighted-average remaining lease term	4 years 1 month 6 days	5 years
Weighted-average discount rate	9.00%	9.10%
Operating lease costs included in operating costs and expenses	$ 2,453	$ 2,800	$ 2,200
Operating cash flows related to operating leases	2,464	2,600	1,900
Operating right-of-use assets obtained in exchange for lease liabilities	$ 705	$ 658	$ 7,931

Leases - Future Minimum Payments Under Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2022	$ 2,459
2023	2,203
2024	1,763
2025	1,698
2026	1,125
Total minimum operating lease payments	9,248
Less: amounts representing interest	(1,586)
Present value of net minimum operating lease payments	7,662	$ 8,881
Less: current portion	(1,759)	(1,769)
Long-term portion of operating lease obligations	$ 5,903	$ 7,112
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities

Geographic Information and Concentrations of Risk - Geographic Concentration of Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Geographic concentration of assets
Assets	$ 159,017	$ 215,843
United States and Canada
Geographic concentration of assets
Assets	122,074	176,094
Europe
Geographic concentration of assets
Assets	32,903	35,630
Other
Geographic concentration of assets
Assets	$ 4,040	$ 4,119

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Geographic Information and Concentrations of Risk - Geographic Concentration of Net Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net revenue by geographic region
Total net revenues	$ 245,323	$ 262,399	$ 313,832
United States and Canada
Net revenue by geographic region
Total net revenues	201,799	215,520	260,009
Europe
Net revenue by geographic region
Total net revenues	27,562	23,123	21,720
Australia
Net revenue by geographic region
Total net revenues	11,250	4,202	3,333
South Africa
Net revenue by geographic region
Total net revenues	0	17,346	28,208
Other
Net revenue by geographic region
Total net revenues	$ 4,712	$ 2,208	$ 562

- Definition

+ References

+ Details

Geographic Information and Concentrations of Risk - Narrative (Details) - Customer Concentration	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Net Revenues \| Customer One
Segment Reporting Information [Line Items]
Concentration percentage	35.10%	43.90%	54.50%
Net Revenues \| Customer Two
Segment Reporting Information [Line Items]
Concentration percentage	32.20%	26.40%
Accounts Receivable \| Customer One
Segment Reporting Information [Line Items]
Concentration percentage	37.40%	61.70%
Accounts Receivable \| Customer Two
Segment Reporting Information [Line Items]
Concentration percentage	21.90%	12.60%

Retirement Savings Plan (Details) - USD ($) $ in Millions	12 Months Ended
Retirement Savings Plan (Details) - USD ($) $ in Millions	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Percentage of employees contribution matched by employer	50.00%
Percentage of employees gross pay eligible for employer match	6.00%
Employer matching contributions	$ 0.9	$ 0.9	$ 0.7